Teck Resources Ltd. April 26 reported that severe snowstorms impacted first quarter zinc production and revenues from its Red Dog Mine in Northwest Alaska.

During the first three months of this year, Red Dog produced 126,200 metric tons (278 million pounds) of zinc, which is 4% lower than the 131,600 metric tons (290.1 million lb) produced during the same period of 2022.

First quarter lead production at Red Dog was 23,100 metric tons (50.9 million lb), roughly 7% higher than the 21,500 metric tons (47.4 million lb) produced during the first three months of 2022.

The Red Dog mill processed 992,000 metric tons of ore averaging 15.4% zinc and 4.3% lead, compared to 1.03 million metric tons of ore averaging 15.2% zinc and 3.8% lead during the same period last year.

Teck says the lower mill throughput is due to severe snowstorms that resulted in capacity constraints in the concentrate storage facility.

The lower zinc output, along with weaker zinc prices and higher costs, impacted Red Dog's first quarter revenues.

Teck realized an average price of US$1.43/lb during the fourth quarter, a 15% drop from the US$1.65/lb average for the first quarter of 2022.

At the same time, Red Dog's operating costs, before inventory changes, were US$104 million during the first quarter, or US$18 million higher than a year ago. Teck expected the higher costs that reflect the inflationary pressures of annual supplies and consumables delivered to the Northwest Alaska zinc operation during the summer 2022 shipping season.

The increased costs, coupled with the lower zinc output and prices, resulted in Red Dog generating C$264 million (US$194 million) in revenues for Teck during the second quarter. This is nearly half the C$524 million (US$384 million) of revenue generated during the same period in 2021.

Likewise, Teck's profit from the Red Dog Mine was C$106 million (US$78 million) during the first quarter of this year, which is less than half the C$236 million (US$173 million) during the first three months of 2021.

Teck says that production at Red Dog had returned to normal by the end of the quarter, and the company's 2023 production guidance of 550,000 to 580,000 metric tons of zinc for the Northwest Alaska operation remains unchanged.

CORRECTION OCT. 24, 2023 - This article has been updated to correctly report the year-over-year percentage drop in zinc production for the first quarter of 2023.

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