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Profits plunge for Teck Resources

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Teck Resources says it earned a profit of $63 million, down from $80 million in the same quarter last year.

The mining company says the profit amounted to 11 cents per diluted share in the second quarter , down from 14 cents per diluted share a year ago.

“Our operations have turned in a solid performance for the quarter,” states Don Lindsay, President and CEO. “All of our operations have remained cash flow positive after sustaining capital investment and our balance sheet remains strong with over $6.5 billion of liquidity. This has been achieved notwithstanding a material drop in the U.S. dollar spot coal price since the beginning of 2015.”

It’s report says all the critical milestones are being achieved at the Fort Hills oilsands project, but it was only two weeks ago when it announced the Frontier mine would be delayed to 2026.

Teck is warning it may make deeper production cuts unless the supply-demand balance improves.

(Canadian Press, Crystal Laderas)