en
Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)
Summary
Teck Resources saw a rise in profits for the third quarter on the back of higher copper prices and lower smelter processing charges, but issues at its Quebrada Blanca facility in Chile forced it to lower its copper production guidance.
Higher Zinc, Copper Profits Propel Teck Resources' Earnings
Teck Resources Limited (Vancouver, British Columbia) reported copper segment profits of US$355 million and zinc profits of US$305 million, some 46% and 30% higher compared to the same period last year, respectively. The results were the outcome of higher copper prices and lower smelter processing charges during the quarter, as well as better profitability from Trail Operations complex in British Columbia and higher zinc sales from the Red Dog mine in Alaska, which surpassed guidance. Subscribers to Industrial Info Resources Global Market Intelligence (GMI) Metals & Minerals Plant Database can learn more about the Trail Operations complex and the Red Dog mine.
Copper Output Drops
Copper output stood at 104,000 tons in the third quarter, 10% lower year-on-year. Issues with Quebrada Blanca's tailing management facility (TMF) in Chile forced Teck to reduce its copper production guidance to 170,000-190,000 tons for this year, about 18% lower from projections, and 200,000-235,000 tons for 2026, about 26% below the prior range.
The company expects to overcome the TMF concerns by 2027, with current guidance set at 240,000 - 275,000 tons.
For 2025, Teck expects to produce between 415,000 - 465,000 tons of copper, a correction of 11% from the initial expectations, across its Quebrada Blanca, Highland Valley Copper Mine in British Columbia, Antamina Copper-Zinc Mine in Peru, and Andacollo Copper-Gold Mine in Chile mines. Peak output under current projections will be in 2027, with volumes between 505,000 - 580,000 tons.
Zinc guidance is unchanged at 525,000--575,000 tons between Red Dog and Antamina. Output is expected to decline through 2028 to 275,000--325,000 tons based on current forecasts.
Merger of Equals
Meanwhile, Teck remains positive about a merger of equals with Anglo American plc (London, England), which is expected to create a top-five copper producer. Notably, the merger is projected to deliver annual pre-tax synergies of roughly US$800 million.
The companies plan to combine operations at the Collahuasi Copper Mine in Chile and Quebrada Blanca in Chile for greater efficiency and lower costs, aiming for additional earnings before interest, taxes, depreciation and amortization (EBITDA) of US$1.4 billion per year from 2030-2049.
"The merger of equals between Teck and Anglo American announced this quarter is a unique opportunity to create a global leader in critical minerals," said Teck President and Chief Executive Officer Jonathan Price in a press release. "The combination will unlock significant value for shareholders through integration of Quebrada Blanca and Collahuasi and meaningful corporate synergies, offering a compelling high-quality, copper-focused investment opportunity."
By the Numbers
Summary
Teck Resources saw a rise in profits for the third quarter on the back of higher copper prices and lower smelter processing charges, but issues at its Quebrada Blanca facility in Chile forced it to lower its copper production guidance.
Higher Zinc, Copper Profits Propel Teck Resources' Earnings
Teck Resources Limited (Vancouver, British Columbia) reported copper segment profits of US$355 million and zinc profits of US$305 million, some 46% and 30% higher compared to the same period last year, respectively. The results were the outcome of higher copper prices and lower smelter processing charges during the quarter, as well as better profitability from Trail Operations complex in British Columbia and higher zinc sales from the Red Dog mine in Alaska, which surpassed guidance. Subscribers to Industrial Info Resources Global Market Intelligence (GMI) Metals & Minerals Plant Database can learn more about the Trail Operations complex and the Red Dog mine.
Copper Output Drops
Copper output stood at 104,000 tons in the third quarter, 10% lower year-on-year. Issues with Quebrada Blanca's tailing management facility (TMF) in Chile forced Teck to reduce its copper production guidance to 170,000-190,000 tons for this year, about 18% lower from projections, and 200,000-235,000 tons for 2026, about 26% below the prior range.
The company expects to overcome the TMF concerns by 2027, with current guidance set at 240,000 - 275,000 tons.
For 2025, Teck expects to produce between 415,000 - 465,000 tons of copper, a correction of 11% from the initial expectations, across its Quebrada Blanca, Highland Valley Copper Mine in British Columbia, Antamina Copper-Zinc Mine in Peru, and Andacollo Copper-Gold Mine in Chile mines. Peak output under current projections will be in 2027, with volumes between 505,000 - 580,000 tons.
Zinc guidance is unchanged at 525,000--575,000 tons between Red Dog and Antamina. Output is expected to decline through 2028 to 275,000--325,000 tons based on current forecasts.
Merger of Equals
Meanwhile, Teck remains positive about a merger of equals with Anglo American plc (London, England), which is expected to create a top-five copper producer. Notably, the merger is projected to deliver annual pre-tax synergies of roughly US$800 million.
The companies plan to combine operations at the Collahuasi Copper Mine in Chile and Quebrada Blanca in Chile for greater efficiency and lower costs, aiming for additional earnings before interest, taxes, depreciation and amortization (EBITDA) of US$1.4 billion per year from 2030-2049.
"The merger of equals between Teck and Anglo American announced this quarter is a unique opportunity to create a global leader in critical minerals," said Teck President and Chief Executive Officer Jonathan Price in a press release. "The combination will unlock significant value for shareholders through integration of Quebrada Blanca and Collahuasi and meaningful corporate synergies, offering a compelling high-quality, copper-focused investment opportunity."
By the Numbers
- US$355 million: Third-quarter copper profits
- US$305 million: Zinc profits
- 415,000 - 465,000 tons of copper: Copper production guidance for 2025
- 525,000--575,000 tons tons: Zinc production guidance for 2025
- Lower copper production guidance due to mining operational issues
- Higher copper prices
- Zinc output expected to decline through 2028
