Canada’s largest mining company, Teck Resources, reported weaker-than-expected first-quarter results on Wednesday due to lower product prices, weak copper and zinc sales and higher costs. The company is also a known acquisition target for Swiss raw materials giant Glencore (LSE:GLEN).
Teck (NYSE:TECK) reported adjusted earnings per share of C$1.81 for the three months ended March 31. This compares with the average estimate of C$1.82 by analysts at Refinitiv IBES.
The Canadian mining company has repeatedly rejected Glencore’s takeover approach and has pursued its own restructuring plan to spin off its metallurgical coal business and focus on copper and zinc.
Some Tech shareholders have already voted for the company’s proposal to split its coal and metals businesses. The results are due to be announced at the Annual General Meeting later today, and Teck can still drop the vote if it deems it not in its favour.
Glencore said there would be no deal if shareholders voted in favor of Teck’s spin-off. Canada’s largest pension fund, CPPI, voted against the spin-off over the weekend, then voted in favor, according to the pension website.
Quarterly gross profit for Teck’s copper division declined 42.1% due to lower sales volume and average real copper price.
Copper prices fell about 10 per cent during the first quarter as they were weighed down by a slower-than-expected rebound in top consumer China and signs of a global slowdown.
Teck said revenue fell 18 per cent to C$3.785 billion.