Diversified mining company Teck Resources on Thursday reported adjusted profit of C$459-million, or C$0.81 a share, in the June quarter, compared with C$653-million, or C$1.14 a share, in the same quarter of last year.

The second-quarter performance fell just short of forecasts by 16 analysts, who had estimated average adjusted earnings of C$0.82 a share for the three months under review.

Profit attributable to shareholders in the second quarter was C$231-million, or C$0.41 a share, compared with C$634-million, or C$1.10 a share, in the same period a year ago. The Vancouver-based company reported an after-tax charge of C$166-million on its debt redemption and a $109-million tax impairment charge relating to its decision not to proceed with the MacKenzie Redcap extension at the Cardinal River steelmaking coal operation.

Revenue increased from C$3.02-billion in the June 2018 quarter, to C$3.14-billion, with steelmaking coal accounting for about half of that, at a stable C$1.59-billion.

Teck produced 6.4-million tonnes of steelmaking coal in the June quarter, which was 127 000 t higher than the same period a year ago, as a result of quarterly production records at the British Columbia-based Line Creek and Greenhills operations, as well as improved processing throughput at some operations.

However, logistical issues have constrained steelmaking coal production in the quarter, resulting in mine site stockpiles reaching maximum capacity at times and causing plants to idle. As a result, the mining major lowered its guidance for 20019 to between 25.5-million and 26-million tonnes, from a previous guidance of 26-million to 26.5-million tonnes.

Prices in the copper and zinc business units were under pressure in the quarter under review, owing to the macroeconomic outlook and escalating global trade disputes. Teck’s copper business realised an average price of $2.75/lb in the quarter, compared with $3.14/lb a year earlier, while the zinc business realised average prices of $1.23/lb, compared with $1.42/lb, resulting in lower revenue in both units.

The copper production guidance for 2019 remains unchanged at 290 000 t to 310 000 t, while molybdenum output will be higher than the previously forecast 8-million pounds at 9.5-million pounds.

Teck also maintained its zinc guidance at a range of 620 000 t to 650 000 t, although the strong performance from Red Dog, in Alaska, would result in higher lead production of between 90 000 t and 95 000 t, compared with the previous guidance of 85 000 t to 90 000 t.

“We achieved a number of important milestones in the second quarter that have put Teck in a strong position moving forward,” president and CEO Don Lindsay commented in a statement.

He highlighted that the British Columbia government had endorsed saturated rock fills to treat water at its steelmaking coal operations, that it had updated a capital allocation framework to reflect its focus on returning additional cash to shareholders, and that the company was accelerating its innovation-driven efficiency programme Race21, which aimed to generate C$150-million in annualised earnings, before interest, taxes, depreciation and amoritsation improvements by the end of 2019.

“These measures are part of Teck’s straightforward strategy of running our operations safely, efficiently and sustainably to generate cash, successfully executing our QB2 project [in Chile] and returning excess capital to shareholders,” added Lindsay.