(Adds analyst comment and forecast revision, stock price
details, additional details on Teck)
TORONTO, June 15 Teck Resources Ltd
shares fell nearly 4 percent on Thursday after the diversified
Canadian miner clipped its forecast of the average realized
price for its steelmaking coal in the second quarter, citing
Vancouver-based Teck said it now expects an average realized
price of $160 to $165 per tonne, lagging the $190 benchmark
price and trailing the $213 price realized in the first quarter.
"The discount to benchmark is expected to widen to 13
percent to 16 percent, compared to the previous guidance of 5
percent, as there were very few prime hard-coking coal spot
sales during the four-week period from mid-April, following the
Queensland cyclone" in Australia, RBC Capital Markets analyst
Stephen Walker said in a note to clients.
Teck, the largest North American producer of steelmaking -
or coking - coal, expects sales volumes of 6.8 million to 7
million tonnes in the second quarter, compared with a previous
forecast of 6.8 million tonnes.
Walker cut his estimate for Teck's second-quarter operating
free cash flow, before debt repayment, to $596 million from $800
Shares of Teck, which also mines copper, gold and silver,
dropped 3.75 percent after a trading halt was lifted, closing at
C$21.58 on the Toronto Stock Exchange.
(Reporting by Susan Taylor in Toronto and John Benny in
Bengaluru; editing by Arun Koyyur and Jonathan Oatis)