Teck Resources, a Canadian miner, exceeded third-quarter profit projections on Thursday, boosted by higher copper production volumes at its Chile mine and robust red metal prices.
Copper prices remained high in the quarter, buoyed by confidence about Chinese demand following a slew of stimulus measures from Beijing. The long-term demand outlook for the red metal remains positive because to its vital role in the energy transition.
According to Teck, copper prices increased by roughly 11.7% over the previous year, averaging around $4.21 per pound.
The Quebrada Blanca (QB) mine in Chile reported record production for the quarter, as activities ramped up. This enabled Teck increase copper output by almost 60% to 115,000 metric tonnes.
However, the business reduced its full-year copper production target for the second year in a row, blaming labour concerns and mining delays at the Highland Valley Copper mine in Canada.
Additionally, it lowered the top end of its QB annual copper production forecast for 2024. Instead of 435,000 to 500,000 tonnes, Teck now anticipates 420,000 to 455,000 tonnes of copper production over the course of the year.
This year, Teck restructured its business by selling Swiss miner Glencore Plc a 77% stake in the coal-making steelmaking company. In July, the transaction—one of the biggest in the sector—was finalised.
Teck’s transformation into a pure-play energy transition metals corporation included the transaction.
“We have returned more than $1.3 billion to shareholders so far this year, while also reducing debt and ramping-up copper production,” CEO Jonathan Price said in a statement.
According to data provided by LSEG, the company recorded an adjusted profit of C$0.60 ($0.4340) per share for the quarter that ended on September 30, which was lower than the average projection of C$0.37 per share by analysts.
