Goldcorp Inc. and Teck Resources Limited Combine El Morro and Relincho Projects in Chile
Aug 27 15
Goldcorp Inc. and Teck Resources Limited announced an agreement to combine their respective El Morro and Relincho projects, located approximately 40 kilometres apart in the Huasco Province in the Atacama region of Chile, into a single project. Teck and Goldcorp will contribute their respective project interests into a 50/50 joint venture. The combined project will have the interim name of Project Corridor. Reduced environmental footprint: Project Corridor will reduce infrastructure requirements, including utilizing a single desalination plant, a single port, a single transmission line, a single concentrator and a common tailings facility. As a result, the environmental footprint of Project Corridor will be significantly less than the combined footprint of the standalone projects. The use of a common tailings facility located at the Relincho site responds to concerns expressed by local communities regarding the location of the previously proposed El Morro tailings facility within the agriculturally important Huasco River watershed. Lower cost, improved capital efficiency: Common infrastructure will significantly reduce project capital costs and ongoing operating costs. Further, the PEA contemplates a phased development approach that will allow future expansions to be funded from project cash flows, thus significantly reducing the initial funding requirement. As a result, the initial capital cost to bring Project Corridor into production is targeted to be $3.5 billion, with further capital required to construct future phases being funded largely from project cash flows. The feasibility studies of the standalone El Morro project and standalone Relincho project had previously estimated development costs at $3.9 billion in 2011 dollars and $4.5 billion in 2013 dollars, respectively. The integrated project allows for the optimization of both resources, resulting in a longer mine life of at least 32 years, based on existing proven and probable reserves, with the scope for further extensions given the significant exploration potential across the combined property. Initial stage development contemplates a single line mill and concentrator facility with an initial capacity in the range of 90,000 tonnes per day to 110,000 tonnes per day to produce an average of approximately 190,000 tonnes of copper and 315,000 ounces of gold per year over the first full 10 years. Enhanced community benefits: Project Corridor is expected to provide significant economic benefits to the local region. An estimated 4,000 jobs will be created during the construction phase and 1,400 jobs during operation. The increased mine life will provide longer-term employment opportunities and community investment. Community engagement: Project Corridor will undertake extensive engagement with communities, Indigenous Peoples and other stakeholders to help guide the project's development. In the months ahead, project staff will be meeting with the community and Indigenous Peoples to explain the Project Corridor concept and work collaboratively to define the project's engagement model. This process will be facilitated by two independent organizations with expertise in community engagement and experience in enhancing social performance and socially sustainable outcomes for resource projects. In combination with community consultation, a Pre-Feasibility Study is expected to commence in early 2016 and be completed in 12 - 18 months. Assuming a positive Pre-Feasibility Study, a Feasibility Study would be initiated thereafter. Goldcorp's El Morro project contained proven and probable reserves of 8.9 million ounces of gold and 6.5 billion pounds of copper as at December 31, 2014. Teck's Relincho project contained proven and probable reserves of 10.1 billion pounds of copper and 464 million pounds of molybdenum as at December 31, 2014. Based on the December 31, 2014 mineral reserve figures reported by Goldcorp in respect of El Morro and Teck in respect of Relincho, the proven and probable reserves of Project Corridor would contain approximately 16.6 billion pounds of copper, 8.9 million ounces of gold, and 464 million pounds of molybdenum. Further work on Project Corridor, including updating reserves estimates at December 31, 2015, may lead to revised mineral reserve estimates that could be higher or lower than the combined figure presented.
Teck Resources Ltd Mulls Further Output Cuts in Weak Market
Jul 27 15
Teck Resources Ltd. has announced possible further production cuts in its metallurgical coal operations in the fourth quarter if market conditions do not improve. The company started rotations of three-week shutdowns at its six Canadian metallurgical coal operations in the third quarter due to a persistently weak pricing environment for metallurgical coal.
Teck Resources Limited Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2015; Reports Production Results for the Second Quarter and Six Months Ended June 30, 2015; Provides Production and Financial Guidance for the Third Quarter, Fourth Quarter and Full Year 2015
Jul 23 15
Teck Resources Limited announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2015. For the quarter, the company reported profit attributable to shareholders of CAD 63 million or 11 cents per basic and diluted share down from CAD 80 million of 14 cents per basic and diluted share in the same quarter last year. Excluding one-time items, the company earned an adjusted profit of CAD 79 million or 14 cents per share for the quarter, up from CAD 72 million or 13 cents per share a year ago. Revenue totaled nearly CAD 2 billion, down slightly from just over CAD 2 billion in the same quarter last year. The company said prices for many of the major commodities it produces fell in the quarter, putting pressure on its margins and profits, offset in part by the weaker Canadian dollar. Profit from operations was CAD 238 million against CAD 212 million a year ago. Profit before tax was CAD 158 million against CAD 151 million a year ago. Cash flows from operating activities were CAD 332 million against CAD 436 million a year ago. Purchase of property, plant and equipment was CAD 329 million against CAD 335 million a year ago. EBITDA was CAD 596 million against CAD 558 million a year ago.
For the six months, the company reported profits attributable to shareholders of CAD 131 million or CAD 0.23 per basic and diluted share against CAD 149 million or CAD 0.26 per basic and diluted share a year ago. Revenue was CAD 4,023 million against CAD 4,093 million a year ago. Profit from operations was CAD 474 million against CAD 464 million a year ago. Profit before tax was CAD 293 million against CAD 321 million a year ago. Cash flows from operating activities were CAD 704 million against CAD 981 million a year ago. Purchase of property, plant and equipment was CAD 700 million against CAD 735 million a year ago. Net debt as at June 30, 2015 was CAD 7,745 million against CAD 6,412 million a year ago.
For the quarter, the company produced 93,000 tonnes of copper and 6.6 million tonnes of coal during the quarter. In the similar quarter in 2014, production was 87,000 tonnes of copper and 6.4 million tonnes of coal. Copper production at company's 22.5%-owned Antamina mine in Peru grew 7.2% to 86,200 tonnes in the quarter, while zinc output was up 19% to 56,400 tonnes. Molybdenum output rose 117% to 1.3Mlb (590t). The production of refined zinc was 75,000 tonnes against 72,000 tonnes a year ago. The production of zinc in concentrate was 141,000 tonnes against 293,000 tonnes a year ago.
For the six months, the company reported copper production of 174,000 tonnes against 172,000 tonnes a year ago. The production of refined zinc was 150,000 tonnes against 134,000 tonnes a year ago. The production of zinc in concentrate was 315,000 tonnes against 293,000 tonnes a year ago.
For the full year 2015, the company’s copper production is now expected to be between 340,000 tonnes and 350,000 tonnes. The company expects overall, gross profit before depreciation and amortization was 2% higher at CAD 143 million.
The company expects sales of 170,000 tonnes of contained zinc in third quarter of 2015 and 200,000 tonnes in fourth quarter of 2015.