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Feb 12 (Reuters) - Canadian miner Teck Resources Ltd’s quarterly profit missed analysts’ estimates as the company struggles with weak coal and copper prices.
Net profit attributable to shareholders nearly halved to C$129 million ($102.7 million), or 23 Canadian cents per share, in the fourth quarter ended Dec. 31.
Adjusted profit was 20 Canadian cents per share, below analysts’ average estimate of 22 Canadian cents, according to Thomson Reuters I/B/E/S.
Operating costs rose about 1 percent to C$888 million.
The company, which derives more than a third of its revenue from coal sales, also mines zinc.
Teck, whose mining operations use a significant amount of diesel fuel, said every $1 per barrel drop in the price of crude oil reduces its operating costs by about C$5 million.
However, the plunge in oil prices since June will also likely hurt the company.
Teck is investing C$2.9 billion for a 20-percent stake in the massive Suncor-controlled Fort Hills oil sands mine.
The much-delayed C$13.5 billion project has a break-even price of $90 or more per barrel of oil, Citigroup said in a recent report, well above the current price of $56.
Revenue at Vancouver-based Teck, the world’s second-largest exporter of seaborne steel-making coal, fell 5 percent to C$2.26 billion, but was slightly above the average analyst estimate of C$2.23 billion.
Teck’s shares have lost 28 percent of their value since June, depressed by the slump in metal prices and the 50 percent slide in oil prices. The stock closed at C$17.61 on the Toronto Stock Exchange on Wednesday. ($1 = 1.26 Canadian dollars) (Reporting by Susan Taylor and Swetha Gopinath; Editing by Sriraj Kalluvila)