Teck Resources recently released its unaudited results for the second quarter of 2024, highlighting a record performance and the company’s transition to a focus on energy transition metals. The company achieved $1.7 billion in adjusted EBITDA for the quarter, bolstered by record copper production and favourable market conditions, with copper prices reaching new highs.
In early July, Teck finalized the sale of its steelmaking coal business, which generated $7.3 billion in cash proceeds.
“We now move forward as a pure-play energy transition metals company with leading copper growth. With cash proceeds of $7.3 billion we will reduce debt, retain cash to fund our near-term copper growth and return significant cash to our shareholders,” said president and CEO Jonathan Price.
For the second quarter, Teck reported a profit from continuing operations before taxes of $658 million. Adjusted profit attributable to shareholders was $413 million, or $0.80 per share, while the profit from continuing operations attributable to shareholders was $363 million, or $0.70 per share. Total cash returns to shareholders, including a $500 million share buyback announced earlier in the year, amounted to $3.5 billion. The company’s liquidity stood at $14.3 billion, with $8.7 billion in cash, and cash flows from operations reached $1.3 billion. The company returned $346 million to shareholders in the second quarter, including $64 million in dividends.
Copper production hit a record 110,400 tonnes, with Quebrada Blanca (QB) contributing 51,300 tonnes. QB’s ramp up is ongoing, with the first molybdenum production occurring during the quarter. Red Dog mine also performed strongly, with zinc and lead production increasing by 4% and 23%, respectively.
The company is advancing its copper growth projects, with progress in feasibility studies and permitting. Key projects like Highland Valley copper mine life extension in British Columbia and San Nicolás joint venture with Agnico Eagle Mines in Mexico have seen milestones in their permitting processes. Work on the Zafranal project in Peru continues. Teck anticipates operating at full production rates by the end of 2024.
Teck was recognized as one of Canada’s Best 50 Corporate Citizens as chosen by Corporate Knights in 2024 for the 18th consecutive year.
For more information, visit www.Teck.com.
