- 2024 saw a major shift for Teck Resources (TSX:TECK), repositioning itself as a pure-play energy transition metals business focused on copper and zinc
- 2024 annual copper production reached 446,000 tonnes, a 50 per cent increase from the previous year, primarily due to the ramp-up of its Quebrada Blanca project
- Teck expects total copper production in 2025 to increase to between 490,000 and 565,000 tonnes
- Teck Resources stock (TSX:TECK) last traded at C$63.50
2024 saw a major shift for Teck Resources (TSX:TECK.A), repositioning itself as a pure-play energy transition metals business focused on copper and zinc.
Via a media release, the team explained that 2024 marked a pivotal shift for the company as the sale of 23 per cent of its steelmaking coal business, EVR, was completed to Nippon Steel Corp. and POSCO for $1.3 billion, and the remaining 77 per cent to Glencore for $7.3 billion. The proceeds from these transactions were allocated according to its Capital Allocation Framework, including $3.5 billion in cash returns to shareholders, a debt reduction program of up to $2.75 billion, and approximately $1.0 billion for final taxes and transaction costs. The remaining funds were retained for value-accretive copper projects.
In 2024, Teck executed $1.25 billion of its $3.25 billion share buyback program and reduced its debt by $1.6 billion through a bond tender offer and other repayments. The team’s focus on copper growth strategy paved the way to increase copper production to approximately 800,000 tonnes per year by the end of the decade. Teck plans to invest between $3.2 to $3.9 billion in four near-term copper projects: Quebrada Blanca (QB) optimization and debottlenecking, Highland Valley Copper Mine Life Extension, Zafranal Project, and San Nicolás Project.
2024 production results
2024 annual copper production reached 446,000 tonnes, a 50 per cent increase from the previous year, primarily due to the ramp-up of QB. Teck achieved record quarterly copper production of 122,100 tonnes in Q4, with QB contributing 60,700 tonnes. Copper sales volumes from QB were higher than production volumes in Q4 as inventory levels decreased.
Annual zinc in concentrate production was 615,900 tonnes, a 4 per cent decrease from the prior year, mainly due to a higher proportion of copper-only ore at Antamina. However, Red Dog’s annual production increased by 3 per cent, producing 555,600 tonnes. Refined zinc production was 256,000 tonnes, 4 per cent lower than the previous year, due to a localized fire at the Trail electrolytic zinc plant in September 2024.
Guidance for 2025
Teck expects total copper production in 2025 to increase to between 490,000 and 565,000 tonnes. QB’s annual production is expected to be between 230,000 to 270,000 tonnes, with Highland Valley Copper production increasing significantly due to higher grade ore from the Lornex pit.
Total zinc in concentrate production in 2025 is expected to be between 525,000 and 575,000 tonnes, with Red Dog producing between 430,000 and 470,000 tonnes. Refined zinc production at Trail operations is expected to be between 190,000 and 230,000 tonnes.
2025 capital expenditures are expected to decrease following the completion of the QB2 project, with sustaining capital and capitalized stripping expenditures between $1.0–$1.2 billion. Growth capital expenditure for copper will focus on near-term projects like HVC MLE, Zafranal, and San Nicolás.
The company intends to report its Q4 2024 financial results on February 20, 2025.
About Teck Resources
Teck is a Canadian resource company with a portfolio of copper and zinc operations across North and South America, in addition to a copper growth pipeline.
Teck Resources stock (TSX:TECK.A) last traded at C$63.50 and is up nearly 23 per cent since this time last year.
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(Top photo of Teck employees at its Quebrada Blanca operation in Chile: Teck Resources)
