Canadian miner Teck Resources Ltd on Wednesday raised its forecast for sales volumes of its steelmaking coal in the next quarter, and also said it expects to reach an average cost of about $158 to $163 a tonne.
Vancouver-based Teck said it now expects to sell between 7.2 million and 7.5 million tonnes of steelmaking coal in the third quarter because of strong demand, up from a prior prediction of 7 million tonnes.
The third-quarter cost index for premium quality steelmaking coal sold under contract is $170 a tonne, Teck said. The company, the world’s second-biggest shipper of steelmaking or coking coal, typically receives approximately 94 percent of the benchmark cost.
Since April 1, the business has changed to an index pricing mechanism for superior coal by a negotiated quarterly benchmark cost.
Teck’s third-quarter sales volume and cost prediction were both higher than anticipated, RBC analyst Stephen Walker said in a note to clients.
Teck’s shares ended up 0.5 percent at $29.62 on the Toronto Stock Exchange.