(New throughout. Adds comments from conference call,partnership for Quebrada Blanca Phase 2, potential future oilsands spin-out) By Susan Taylor TORONTO, July 26 (Reuters) - Teck Resources Ltd boosted its production forecasts for copper, zinc andoil on Thursday as the diversified miner reported market-beatingprofits on the back of higher prices for a range of commodities. Flush with C$2.9 billion ($2.22 billion) in cash and C$7billion in liquidity, Teck is in "great shape" to fund growth,said Chief Executive Don Lindsay, including big Chileandevelopments like the $4.8 billion Quebrada Blanca Phase 2project and $3.5 billion NuevaUnion project. Shares in the base metal miner popped 4.5 percent higher onThursday, in sharp contrast to broad declines for gold minersthat reported lower production and higher costs. With Quebrada Blanca Phase 2 permits expected in August,Teck said it will launch a formal process seeking a developmentpartner, which could contribute some $2 billion for a 30 percentto 40 percent stake. It expects to close a deal in the fourthquarter. Teck also aims to complete a feasibility study onNuevaUnion, a joint venture with Goldcorp to developneighboring mines, by the third quarter of 2019. With its new Galore Creek project partner, Newmont Mining , Teck plans to update a pre-feasibilty study in three tofour years. Newmont agreed to pay $275 million to NovaGoldResources on Thursday for its 50-percent stake in thecopper-gold project.
Asked on a conference call whether oil remains a corebusiness, Linsday said that if the value of its stake in theFort Hill oil sands is inadequately reflected in its stock in2020 or 2021, when operations are well established, he wouldconsider a spin-out, sale or partnership.
Separately, family-controlled Teck appointed as its newchairman Dominic Barton, an outsider and global managing partnerof consulting firm McKinsey & Co. Current chair Norman Keevil, who joined Teck in 1962 as vicepresident of exploration, held the position of CEO from 1981 to2001, when he became chairman. He retires from that role Oct. 1. Teck, the world's second-biggest exporter of steelmakingcoal, stuck to its annual production forecast of 26 million to27 million tonnes, but said production is now expected near thelower end of the range. Third-quarter coal sales are seen rising to 6.8 milliontonnes from 6.6 million tonnes in the second quarter, whichlagged its 6.7 million tonne forecast due to two rail strikes.The average realized price rose 9.6 percent to $183 a tonne,Teck said.
Adjusted profit of C$1.12 per share beat analystexpectations of C$1.07. ($1 = 1.3038 Canadian dollars)($1 = 1.3073 Canadian dollars) (Reporting by Susan Taylor and Shubham Kalia; Editing byBernadette Baum and Phil Berlowitz)
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