The company said last week that as a result of the earthquake and tsunami in Japan earlier this year some of its customers had deferred shipments because of a reduction in steel production demand, meaning second-quarter sales would now be on the lower side of its previously-announced outlook range of 5.5 to 6 million tonnes.
Teck added that its unit mining cost of product sold is projected to be between $C71 and $76 per tonne for the year, primarily due to one-time costs from labor disputes earlier in the year as well as higher-than-expected costs including diesel and external contractors.
For the second quarter, however, unit mining cost of product sold is expected to be higher than this range, from $80 to $84 per tonne. Costs will then begin to fall into the third and fourth quarters as volumes rise.
Average selling price for the second quarter, the producer said, should be about $US270 per tonne, versus a previous guidance of $280 to $290. Teck cited sales mix changes as well as the deferred Japanese shipments for the adjustment.