Teck Trail Profits Surge on Higher Metal Prices

Teck Resources reported a surge in profits at its Trail Operations in the second quarter of 2026, driven by higher metal prices and changes to the smelter's feed strategy. The company generated $202 million in gross profit during the period, with the Trail complex accounting for over 60% of the $329 million in gross profit from Teck's zinc business.

The improvement was attributed to Teck's efforts to increase profitability and cash generation at Trail by optimizing materials processed at the complex. This included prioritizing the processing of residues when market conditions were favorable, as well as higher prices for byproducts such as silver and germanium.

Despite lower production due to planned maintenance, which resulted in a 1,100-tonne decrease in refined zinc production and a 2,700-tonne drop in lead production, the operation still managed to generate $203 million in gross profit before depreciation and amortization. This was up from $42 million during the same quarter last year.

Teck's overall second-quarter earnings were boosted by higher commodity prices, particularly for copper, which averaged US$6.05 per pound on the London Metal Exchange, a 40% increase from US$4.32 per pound one year earlier. The company produced 135,900 tonnes of copper during the quarter, up from 109,100 tonnes in the same period last year.

The strong results come as Teck works with the federal government and Canada Growth Fund Inc. on a potential investment of up to $850 million at Trail Operations. The company is also proceeding with its merger with Anglo American, which is expected to generate approximately US$800 million in annual pre-tax savings.