Teck Resources TECK-B-T +0.56%increase beat Wall Street estimates for second-quarter profit on Thursday, helped by higher copper prices and increased production.
Shares of the company rose nearly 6 per cent in premarket trading.
Benchmark three-month copper prices climbed 41.5 per cent in the quarter from a year earlier, powered by concerns over tight supplies and strong demand in China.
Expectations of U.S. tariffs on copper imports also supported prices of the metal.
Global copper demand is expected to jump 50 per cent by 2040 as utilities rush to build facilities to cater to surging power consumption by data centers, the energy transition and higher defense spending.
Teck Resources, which is in the process of merging with Anglo American NGLOY +0.85%increase, said realized copper prices averaged US$6.05 per pound in the second quarter, up from US$4.32 per pound a year earlier. Production rose nearly 24.6 per cent to 135,900 tons.
Production at the Quebrada Blanca mine in Chile increased to 55,800 tons, from 52,700 tons a year earlier.
The miner reported adjusted earnings of $1.93 per share for the quarter ended June 30, above analysts’ average estimate of $1.25, according to data compiled by LSEG.
Separately, the Canadian government this month announced a potential equity investment of up to $400-million to support an expansion of Teck’s Trail Operations facility in British Columbia.
U.S.-based peer Freeport-McMoRan is due to report results later on Thursday.
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