OREANDA-NEWS. July 25, 2012. Teck Resources Limited (TSX: TCK.A and TCK.B, NYSE: TCK) reported second quarter adjusted profit of USD 312 million, or USD 0.53 per share, compared with USD 663 million or USD 1.12 per share in 2011.

"We are pleased with our operating results for the second quarter, with record quarterly copper production, a significant increase in coal sales compared with the last quarter and settlement of labour agreements at our Trail and Cardinal River operations. Notwithstanding these increases, commodity prices were lower due in part to uncertainty over global economic conditions, resulting in lower profits compared with the second quarter of last year. However, our balance sheet remains strong with USD 3.6 billion of cash, which positions us to continue advancing our longer term growth plans,” said Don Lindsay, President and CEO.

Highlights and Significant Items
Gross profit before depreciation and amortization was USD 1.0 billion in the second quarter compared with USD 1.4 billion the second quarter of 2011.
Cash flow from operations, before working capital changes, was USD 725 million in the second quarter compared with USD 1.2 billion a year ago.
Profit attributable to shareholders was USD 268 million and EBITDA was USD 790 million in the second quarter.

To date we have reached agreements with our coal customers to sell 5.0 million tonnes of coal in the third quarter of 2012 and we expect to conclude additional sales over the course of the quarter. While prices for our premium coal have been agreed at USUSD 225 per tonne, the average price for all products is approximately USUSD 198 per tonne.

Our cash balance was USD 3.6 billion at June 30, 2012, after capital expenditures, investments and debt payments totaling USD 891 million in the second quarter.

New five-year labour agreements were ratified at our Trail Operations in the second quarter and at our Cardinal River Operations in early July.

We achieved record quarterly copper production of 90,000 tonnes in the second quarter, which reflects our share of significantly higher production from Antamina’s major mill expansion.

Subsequent to quarter end, the Social and Environmental Impact Assessment for the Quebrada Blanca Phase 2 project was voluntarily withdrawn in response to comments from Chilean regulators and requests for additional information. We are working with the regulators to define the time frame for resubmission of the application.

We declared a USD 0.40 per share dividend on our Class A common shares and Class B subordinate voting shares, which was paid on July 3, 2012.

Cautionary Statement on Forward-Looking Information

This news release contains certain forward-looking information and forward-looking statements as defined in applicable securities laws. All statements other than statements of historical fact are forward-looking statements. These forward-looking statements, principally under the heading “Outlook,” but also elsewhere in this document, include estimates, forecasts, and statements as to management’s expectations with respect to, among other things, our financial capacity necessary to fund growth projects, anticipated production at our business units and individual operations, profit and cash flow, sales volume and selling prices for our products (including settlement of coal contracts with customers), plans and expectations for our development projects, forecast operating costs, expected progress, costs and outcomes of our various projects and investments, including but not limited to those described in the discussions of our operations, the sensitivity of our earnings to changes in commodity prices and exchange rates, the impact of potential production disruptions, the impact of currency exchange rates, future trends for the company, progress in development of mineral properties, increased coal and copper production as a result of our expansion plans, timing of completion and results of our mill modernization program at Highland Valley Copper, our goals regarding the collective bargaining agreement at Antamina, expansion study at Carmen de Andacollo and expected ramp up of the pre-crushing plant, the statements under the heading “Copper Development Projects”, including the expected resubmittal of the environment impact assessment for Quebrada Blanca Phase 2, the timing of permit approval, production and anticipated production levels from the Quintette coal mine, the statements under the heading “Energy” including the development of our Fort Hills, Frontier and Lease 421 Area oil sands projects, timing of final SIRs on our Frontier project and our responses thereto, capital expenditures and mine production costs, unit cost of product for coal, unit transportation costs, demand and market outlook for commodities, future commodity prices and treatment and refining charges, timing of completion of studies on our projects and the impact of measures to manage selenium discharges and costs and impacts related thereto, the timing of the construction of the new slag fuming furnace at our Trail operations. These forward-looking statements involve numerous assumptions, risks and uncertainties and actual results may vary materially.

These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general business and economic conditions, interest rates, the supply and demand for, deliveries of, and the level and volatility of prices of, zinc, copper and coal and other primary metals and minerals as well as oil, and related products, the timing of the receipt of regulatory and governmental approvals for our development projects and other operations, our costs of production and production and productivity levels, as well as those of our competitors, power prices, continuing availability of water and power resources for our operations, market competition, the accuracy of our reserve estimates (including with respect to size, grade and recoverability) and the geological, operational and price assumptions on which these are based, conditions in financial markets, the future financial performance of the company, our ability to attract and retain skilled staff, our ability to procure equipment and operating supplies, positive results from the studies on our expansion projects, our coal and other product inventories, our ability to secure adequate transportation for our products, our ability to obtain permits for our operations and expansions, our ongoing relations with our employees and business partners and joint venturers. With respect to the Quebrada Blanca Phase 2, assumptions are based on receiving comments from all interested parties and our ability to address the comments in a satisfactory manner. The foregoing list of assumptions is not exhaustive. Events or circumstances could cause actual results to vary materially.

Factors that may cause actual results to vary materially include, but are not limited to, changes in commodity and power prices, changes in interest and currency exchange rates, acts of foreign governments and the outcome of legal proceedings, inaccurate geological and metallurgical assumptions (including with respect to the size, grade and recoverability of mineral reserves and resources), unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action, adverse weather conditions and unanticipated events related to health, safety and environmental matters), union labour disputes, political risk, social unrest, failure of customers or counterparties to perform their contractual obligations, changes in our credit ratings, unanticipated increases in costs to construct our development projects, difficulty in obtaining permits, inability to address concerns regarding permits of environmental impact assessments, and changes or further deterioration in general economic conditions.

Statements concerning future production costs or volumes, and the sensitivity of the company’s earnings to changes in commodity prices and exchange rates are based on numerous assumptions of management regarding operating matters and on assumptions that demand for products develops as anticipated, that customers and other counterparties perform their contractual obligations, that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts and supplies, labour disturbances, interruption in transportation or utilities, adverse weather conditions, and that there are no material unanticipated variations in the cost of energy or supplies.

We assume no obligation to update forward-looking statements except as required under securities laws. Further information concerning risks and uncertainties associated with these forward-looking statements and our business can be found in our Annual Information Form for the year ended December 31, 2011, filed on SEDAR and on EDGAR under cover of Form 40-F.