Vancouver-headquartered Teck Resources has reported a significant year-on-year improvement in profitability for the first quarter of 2025, driven by stronger copper and zinc prices and increased sales volumes.

The diversified miner posted adjusted earnings before interest, taxes, depreciation and amortisation of C$927-million for the March quarter – more than double the C$409-million reported a year earlier. Revenue for the quarter rose to C$2.29-billion, up from C$1.62-billion in the same period last year.

“Our profitability improved significantly in the first quarter compared to a year ago as a result of higher commodity prices and copper sales volumes, and we continue to return significant cash to shareholders,” said president and CEO Jonathan Price. 

“We remain committed to our strategy of balancing value-accretive growth with returns to shareholders, and our strong balance sheet and commercial strategy provide us with resilience and the ability to continue to create value amidst market uncertainty.”

Teck reported a profit of C$370-million from continuing operations attributable to shareholders, reversing a loss of C$125-million in the prior-year period. Adjusted profit from continuing operations attributable to shareholders came to C$303-million, or $0.60 a share.

The company ended the quarter in a net cash position of C$764-million, with total liquidity of C$10-billion, including C$5.8-billion in cash.

OPERATIONAL HIGHLIGHTS
Copper production rose 7% year-on-year to 106 100 t, with the copper business generating gross profit before depreciation and amortisation of $704-million – up 90% year-on-year. Sales volumes increased 11% to 106 200 t, contributing to a gross profit of $343-million.

The zinc business also performed strongly, with gross profit before depreciation and amortisation rising 79% to $225-million. Sales volumes from Red Dog came in at 90 800 t, ahead of guidance, and gross profit was $193-million.

At the Quebrada Blanca Phase 2 (QB2) project in Chile, Teck reached a milestone by meeting the completion testing requirements under its $2.5-billion project finance facility. This achievement confirms the asset’s design, construction, and operational performance, and has resulted in the release of sponsor guarantees.

QB produced 42 300 t of copper in the quarter, with output affected by an 18-day maintenance shutdown in January, a national power outage in February, and adverse weather conditions. These factors also slowed development of the tailings management facility prompting planned maintenance shutdown extensions into the second and third quarters.

Despite these setbacks, average daily plant throughput improved compared with the previous quarter, reflecting greater operational stability. The average copper grade also increased in the quarter, in line with expectations. However, higher levels of transition ore resulted in lower recoveries.

Teck continues to expect copper production from QB in the range of 230 000 t to 270 000 t for the year, although output is now expected at the lower end of that range owing to the shutdowns. 

Molybdenum production guidance remains at 3 000 t to 4 500 t, and net cash unit costs are unchanged at $1.80/lb to $2.15/lb, albeit likely at the higher end of the range.