Teck Resources Limited ("Teck", TSX: TCK.A and TCK.B, NYSE: TCK) provided an update today to its coal guidance for the second quarter.
As a result of the February earthquake and tsunami in Japan, some of Teck's coal customers have deferred shipments due to reduced steel production requirements and Teck now expects coal sales in the second quarter at the low end of its previously announced guidance range of 5.5 to 6.0 million tonnes.
Teck also now expects the unit mining cost of product sold to be in the range of $71 to $76 per tonne for the year primarily as a result of one-time costs related to labour settlements and higher than expected costs for items such as external mining contractors and diesel. Unit mining cost of product sold is expected to be higher than this range in the second quarter at approximately $80 to $84 per tonne and then trend downwards in the third and fourth quarters as coal volumes increase.
Teck expects average selling prices for the second quarter of 2011 to be approximately US$270 per tonne compared to its existing guidance of US$280 to US$290 per tonne. This is due to changes in the sales mix related to the deferred shipments to Japan.