Teck Resources Ltd (TSX:TECK.B) has downwardly revised its annual copper production guidance, sending its shares more than 5% lower on Thursday.
The company now expects copper production in the range of 420,000 to 455,000 tons, compared to its earlier forecast of 435,000 to 500,000 tons.
The revised guidance was attributed to a delay in mining in the Lornex pit at the Highland Valley project in British Columbia, as well as a reduction to the upper end of its production guidance range for Quebrada Blanca (QB) in Chile.
At QB, Teck now expects 200,000 to 210,000 tons of copper production, down from its July forecast of as much as 235,000 tons.
This drew attention away from the miner’s better-than-expected third quarter performance.
Earnings per share (EPS) of $0.60 was ahead of estimates of $0.38, while revenue of $2.86 billion beat the consensus $2.75 billion.
Teck attributed its strong performance to record copper production at QB as it ramps up its operations, strong base metals pricing, and zinc sales volumes from its Red Dog mine in Alaska.
Quarterly copper production was 114,500 tons, of which 52,500 tons were from QB.
Copper prices averaged US$4.18 per pound, closing the quarter at US$4.43 per pound, and contributed $103 million in positive pricing adjustments.
“The third quarter marked a new era for Teck as we successfully transformed into a pure-play energy transition metals company with leading copper growth," Teck CEO Jonathan Price said in a statement.
"We closed the sale of our remaining interest in the steelmaking coal business and have returned over $1.3 billion to shareholders so far this year, while also reducing debt and ramping-up copper production."
Teck’s shares traded down 5.1% at $47 in the early afternoon Thursday,