Teck Resources TECK-B-T -0.38%decrease beat third-quarter profit estimates on Wednesday, lifted by higher copper and zinc prices, even as production at its Quebrada Blanca copper mine in Chile remained constrained by tailings work.
U.S.-listed shares of Teck TECK-N -0.26%decrease rose 2 per cent in pre-market trading.
The results come as Teck advances a merger with Anglo American NGLOY -0.13%decrease, announced in September, to form Anglo Teck, a top-five global copper producer headquartered in Canada.
The deal aims to unlock synergies between Teck’s Quebrada Blanca mine and Anglo’s nearby Collahuasi project in Chile and deliver roughly US$800-million in annual savings.
Teck, Anglo dismiss investor concerns over shareholder structure
The Canadian miner reported adjusted earnings of 76 cents per share for the quarter ended Sept. 30, above analysts’ average estimate of 49 cents, according to LSEG data.
Teck said third-quarter profit rose on stronger base metals prices, higher sales from the Red Dog zinc mine in Alaska, lower smelter processing charges and improved performance at its Trail Operations in British Columbia.
Quarterly realized copper prices rose nearly 6 per cent to US$4.45 per pound while zinc prices increased 3.2 per cent to US$1.29 per pound, from last year.
However, copper production dropped 9.1 per cent to 104,100 tonnes in the third quarter, as output at the Quebrada Blanca mine fell 24.6 per cent to 39,600 tonnes, constrained by ongoing work to raise the tailings dam crest.
The company said the development of the tailings management facility at the site remains the main constraint on production, though improvements in sand drainage and dam construction are underway.
Teck maintained its 2025 copper output outlook for the Quebrada Blanca mine at 170,000–190,000 tonnes at net cash costs of US$2.65–$3.00 per pound.
Leave a Reply
You must be logged in to post a comment.