Teck Resources (TECK) reported strong third-quarter earnings, driven by record copper prices and increased production. Adjusted EBITDA doubled to C$2.3 billion, while cash flow from operations rose to C$1.6 billion. CFO Crystal Prystai attributed the gains to higher copper and zinc prices, stronger by-product revenue, and lower smelter processing charges. Copper averaged a record US$6.40 per pound, contributing over C$1 billion to adjusted EBITDA.
Despite severe weather disruptions, Teck produced 116,000 tonnes of copper, an 11% increase from a year earlier. Operations at Quebrada Blanca and Highland Valley Copper faced torrential rain, flooding, and wildfires, but production remained on track. CEO Jonathan Price noted that Carmen de Andacollo returned to full operations by the end of September, while Quebrada Blanca maintained its full-year production outlook of 200,000 to 235,000 tonnes.
Teck lowered its full-year net cash unit-cost guidance for copper and zinc, citing operating discipline and stronger by-product pricing. Copper net cash unit costs are now expected to be between US$1.80 and US$2.00 per pound, down from prior guidance of US$1.85 to US$2.20 per pound. Zinc production at Red Dog declined 13% due to lower grades, while Trail Operations recorded C$169 million in gross profit, up from C$54 million a year earlier.
The company's balance sheet strengthened, ending September with C$1.9 billion in net cash and C$10.9 billion in liquidity. Teck reiterated that its merger with Anglo American is progressing as planned, with completion expected within 12 to 18 months of the September 2025 announcement. Construction of Highland Valley Copper’s mine-life extension is over 25% complete, and a strike at the site began on October 24, though Teck does not expect significant delays.