Canadian miner Teck Resources Ltd said on Tuesday Chief Executive Officer Don Lindsay will step down after 17 years in the role, and also posted forecast-beating quarterly profit on upbeat prices for steelmaking coal.

Lindsay, who will step down by end-September, will be replaced by Jonathan Price as CEO while Harry Conger has been appointed president and chief operating officer.

The Vancouver British Columbia-based company also posted profit attributable to shareholders of C$1.68 billion ($1.31 billion) in the second quarter, a more than six-fold jump from year-ago levels.

Steel production and demand for steelmaking coal was strong through most of the second quarter before market conditions began to weaken last month, with steelmaking coal prices exiting the quarter at $300 per tonne, Teck said.

Steel and steelmaking coal are required for multiple purposes – from clean energy projects such as wind or solar power to transportation alternatives like rapid transit, buses and hybrid vehicles.

Average price steelmaking coal in the reported quarter jumped 215% to $453 per tonne from year-ago levels, the miner said.

Still, the company added that global steelmaking coal prices are affected by reduced downstream steel demand as weakening auto production and global inflationary pressures weigh on market sentiment.

Miners have been battling higher operating costs related to labor, energy and supply, with global miners BHP Group and Rio Tinto flagging that labor crunch and inflationary pressures would continue into 2023.

Inflationary woes have increased Teck’s operating costs by 14% year-on-year, of which about half relates to an increase in diesel costs.

Teck cut its annual steelmaking coal production outlook to between 23.5 million and 24 million tonnes, below previous forecast of 24.5 million to 25.5 million tonnes, citing workforce challenges experienced in the first half of the year.

On an adjusted basis, the miner reported a profit of C$3.25 per share, compared with an estimate of C$3.20 per share, according to Refinitiv data.

(Reporting by Akriti Sharma and Arunima Kumar in Bengaluru; Editing by Sherry Jacob-Phillips)

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

A welcome email is on its way. If you don't see it, please check your junk folder.

The next issue of Financial Post Top Stories will soon be in your inbox.

We encountered an issue signing you up. Please try again

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

365 Bloor Street East, Toronto, Ontario, M4W 3L4

© 2022 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.

This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Service and Privacy Policy.