Petrosaurus Rex vs. Reality: Teck Mine Defeated by Low Price of Oil – The Energy Mix
Last Friday, Teck’s latest financial performance report rocked its shareholders, Bay Street, BNN Bloomberg commentators, the British Columbia region where it operates, and possibly Jason Kenney’s relentless promotion of all things tar sands/oil sands.
The company share price plunged to $10.92, down from $26 one year ago. Year over year profit dropped 76%. The main driver was a steep drop in world market prices for steel-making (metallurgical) coal and copper, and scant prospects for price recovery on its core mining business.
But Teck also took a $910-million write-down in the value of its share in the recently-opened Fort Hills tar sands/oil sands project in Alberta, because of lower than forecast oil prices and bitumen revenues. It owns a minority interest. Only days earlier, the main partner and operator, Suncor, announced a $2.8-billion write-down on the same project for the same reason.