TORONTO (miningweekly.com) – Vancouver-based Teck Resources posted a C$411-million net profit for the fourth quarter of 2009, compared with a C$607-million loss a year earlier, after higher base-metal prices offset weaker coal prices and the effects of a stronger Canadian dollar.

Excluding some items, adjusted net earnings were C$312-million in the quarter compared with C$130-million in 2008.

"With the improvement in the global economy in 2009, commodity prices improved significantly and this resulted in substantial positive pricing adjustments on our base metal revenues in 2009," the company said.

For the full year, Teck reported net income of C$1,8-billion, compared with C$659-million in 2008.

Fourth-quarter revenue rose to C$2,2-billion, while yearly revenue rose to C$7,7-billion. Both were records for the Canadian firm.

“Our record revenues this year reflected strong performance across the company, including record production of copper at Quebrada Blanca and zinc at both Red Dog and Antamina,” said CEO Don Lindsay.

The company's cash balance is $1,3-billion, which means its net-debt to net-debt-plus-equity ratio should be around 26% compared with 52% after acquiring Fording Canadian Coal in 2008, Lindsay said.

He has been working to improve the ratio in the hopes that credit agencies will allocate the company an investment-grade rating.

Teck was downgraded after it borrowed $9,8-billion to buy Fording, just before debt markets froze up late in 2008.

Over the last year, the group has sold a number of noncore assets, completed a successful bond issue and sold a 17% stake in itself to the government-owned China Investment Corp to raise funds for debt repayment.

After the company closes its latest asset sale, the disposal of one-third of its interest in the Waneta dam, it will have reduced total debt to just C$6,7-billion, from C$13,4-billion after the Fording acquisition.

The Fording term loan will be just $1,14-billion, with payments of $440-million due this year, about $420-million in 2011 and $280-million in 2012, Teck said.

Net earnings in the fourth quarter included positive after-tax pricing adjustments of C$58-million and an after-tax gain of C$134-million from the sale of the company's interest in the Morelos gold project in Mexico, partly offset by asset impairment charges of C$68-million on an after-tax basis related to its oil sands projects.

The loss in 2008 included asset impairment charges of C$844 million and negative pricing adjustments of C$270-million on an after-tax basis.