Canada’s largest diversified miner, Teck Resources, on Tuesday posted an 84% drop in first-quarter profit, as the coronavirus pandemic hit prices hard for the commodities that the miner produces.

The TSX- and NYSE-listed company reported adjusted profit of C$94-million, or C$0.17 a share, for the first quarter of the year, compared with $587-million, or C$1.03 a share, a year ago.

Teck was hard hit by prices for steelmaking coal, copper, zinc and oil falling sharply in the first three months of the year. On average, its average realised steelmaking coal price declined to C$176/t, compared with C$248/t a year ago.

LME copper and zinc prices decreased by 9% and 21% from a year ago, averaging $2.56/lb and $0.97/lb, respectively. Copper and zinc prices started declining sharply in mid-March and closed the quarter at $2.18/lb and $0.85/lb, respectively.

Western Canadian Select prices also decreased significantly in the quarter and its average realised blended bitumen price was $29/lb in the first quarter, compared with $42/lb in the same period last year.

Teck posted a first-quarter loss attributable to shareholders of C$312-million, compared with profit of C$630-million in the same period last year, reflecting not only the negative price impacts, but also an after-tax asset impairment of C$474-million relating to its interest in Fort Hills.

Adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) plunged to C$608-million, compared with $1.4-billion a year ago.

“The pandemic has had a significant negative impact on the global economy and commodity markets and the outlook is uncertain. However, almost all of our sites are currently operating, with some at reduced production, and our steelmaking coal operations had a strong finish to the quarter, exceeding our sales guidance with site costs well below expectations,” said president and CEO Don Lindsay.

The steelmaking coal operations reported sales of 5.7-million tonnes, exceeding the previously issued 2020 first quarter guidance range of 4.8-million to 5.2-million tonnes and adjusted site cash cost of sales of C$63/t, which was also significantly lower than previously issued guidance.

The company cautioned that its second-quarter sales could decrease significantly from the first quarter, as Covid-19 would continue to impact global economic activity and steelmaking coal demand and supply.

“We are starting to receive notifications from customers that they may delay purchases in response to reduced demand for their steel products as their own customers are reducing or suspending production of their products.”

Teck, however, this month completed the major expansion of its Elkview operations plant, increasing capacity to nine-million tonnes a year. This would replace higher cost production from Cardinal River with lower cost production from Elkview, maintaining its overall steelmaking production capacity.

Taking into account the cost savings and higher average price for Elkview products and assuming a $150/t coal price and current exchange rates, shifting two-million tonnes of production to Elkview translates to an increase of about C$160-million in annualised Ebitda.

The group previously suspended its guidance for 2020, citing the ongoing uncertainty surrounding Covid-19.