Teck profits surge on copper rally but Chile fuel costs cloud outlook

Published: 2026-04-28 11:30:20 ET TECK

Published on 04/28/2026 at 11:30 am EDT

Teck Resources delivered stronger-than-expected quarterly earnings as higher copper prices and increased output lifted performance, even as rising fuel and freight costs in Chile threaten to erode margins in the coming months, mining.com reported.

The Canadian miner reported adjusted earnings of CAD1.75 per share, well above market forecasts, supported by a sharp rise in realised copper prices to $5.83 per pound. Total copper production reached 140,000 tonnes in the period, up from 106,100 tonnes a year earlier, driven largely by improved operations at its flagship Quebrada Blanca mine.

Output at Quebrada Blanca climbed 31.2% to 55,500 tonnes, maintaining momentum despite earlier maintenance stoppages. The site remains central to Teck’s long-term growth strategy, including a planned integration with Anglo American’s nearby Collahuasi operation, which could significantly expand production capacity from 2030.

However, the company cautioned that cost pressures are building. Its Chilean operations, heavily reliant on imported diesel, are facing increased expenses linked to global supply disruptions and shipping constraints. Freight rates are expected to remain elevated through the second quarter, with additional knock-on effects on input costs such as explosives.

While Teck does not anticipate immediate fuel shortages, it warned that potential export restrictions from key suppliers could tighten markets further. The situation reflects broader supply chain fragility, particularly as geopolitical tensions continue to affect global energy flows.

Despite these challenges, Teck maintained its production guidance, targeting up to 530,000 tonnes of copper in 2026. Longer term, the miner is positioned to benefit from a projected surge in copper demand, driven by expanding data infrastructure, electrification and defence-related consumption.

Zinc output declined year-on-year, highlighting mixed performance across its portfolio. Nonetheless, strong copper fundamentals continue to underpin the company’s outlook, even as cost inflation presents a growing operational risk.