Teck Resources : Q1 2025 Financial Report (2025 Teck Q1 Financial Report)

Published: 2025-04-24 01:20:11 ET TECK

Teck Resources Limited

TSX: TECK.A, TECK.B

NYSE: TECK

teck.com

News Release

For Immediate Release

Date: April 23, 2025

25-10-TR

Teck Reports Unaudited First Quarter Results for 2025

Strong quarterly EBITDA and resilient balance sheet

Vancouver, B.C. - Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (Teck) today announced its unaudited first quarter results for 2025.

"Our profitability improved significantly in the first quarter compared to a year ago as a result of higher commodity prices and copper sales volumes, and we continue to return significant cash to shareholders," said Jonathan Price, President and CEO. "We remain committed to our strategy of balancing value- accretive growth with returns to shareholders, and our strong balance sheet and commercial strategy provide us with resilience and the ability to continue to create value amidst market uncertainty."

Highlights

Note:

1. This is a non-GAAP financial measure or ratio. See "Use of Non-GAAPFinancial Measures and Ratios" for further information.

All dollar amounts expressed in this news release are in Canadian dollars unless otherwise noted.

Reference:

Emma Chapman, Vice President, Investor Relations

+44

207.509.6576

Dale Steeves, Director, External Communications

236.987.7405

Additional corporate information is available at www.teck.com

Financial Summary Q1 2025

Financial Metrics

(CAD$ in millions, except per share data) Revenue

Gross profit

Gross profit before depreciation and amortization1 Profit (loss) from continuing operations before taxes Adjusted EBITDA1

Profit (loss) from continuing operations attributable to shareholders

Adjusted profit (loss) from continuing operations attributable to shareholders1

Basic earnings (loss) per share from continuing operations Diluted earnings (loss) per share from continuing operations

Adjusted basic earnings (loss) per share from continuing operations1

Adjusted diluted earnings (loss) per share from continuing operations1

Q1 2025

Q1 2024

2,290

1,619

536

169

929

497

450

(235)

927

409

370

(125)

303

(6)

0.74

(0.24)

0.73

(0.24)

0.60

(0.01)

0.60

(0.01)

Note:

1. This is a non-GAAP financial measure or ratio. See "Use of Non-GAAP Financial Measures and Ratios" for further information.

Key Updates

QB Ramp-Up

Value-Driven Growth

Safety and Sustainability Leadership

Guidance

2025 Guidance - Summary

Production Guidance

Copper (000's tonnes)

Zinc (000's tonnes)

Refined zinc (000's tonnes)

Sales Guidance - Q2 2025

Red Dog zinc in concentrate sales (000's tonnes)

Unit Cost Guidance

Copper net cash unit costs (US$/lb.)1

Zinc net cash unit costs (US$/lb.)1

Current

490 - 565

525 - 575

190 - 230

25 - 35

Note:

1. This is a non-GAAP financial measure or ratio. See "Use of Non-GAAP Financial Measures and Ratios" for further information.

Management's Discussion and Analysis

This management's discussion and analysis (MD&A) is dated as at April 23, 2025 and should be read in conjunction with the unaudited condensed interim consolidated financial statements of Teck Resources Limited (Teck) and the notes thereto for the three months ended March 31, 2025 and with the audited consolidated financial statements of Teck and the notes thereto for the year ended December 31, 2024. In this news release, unless the context otherwise dictates, a reference to "the company" or "us," "we" or "our" refers to Teck and its subsidiaries. Additional information, including our Annual Information Form and Management's Discussion and Analysis for the year ended December 31, 2024, is available on SEDAR+ at www.sedarplus.ca.

This document contains forward-looking statements and forward-looking information. Please refer to the cautionary language under the heading "CAUTIONARY STATEMENT ON FORWARD- LOOKING STATEMENTS" below.

Overview

Average Prices and Exchange Rates

Three months ended

Change

March 31,

2025

2024

Copper (LME cash - US$/pound)

4.24

3.83

11 %

Zinc (LME cash - US$/pound)

1.29

1.11

16 %

Average exchange rate (CAD$ per US$1.00)

1.44

1.35

7 %

Note:

1. This is a non-GAAP financial measure or ratio. See "Use of Non-GAAP Financial Measures and Ratios" for further information.

Profit (Loss) from Continuing Operations Attributable to Shareholders and Adjusted Profit (Loss) from Continuing Operations Attributable to Shareholders

In the first quarter, our profit from continuing operations attributable to shareholders was $370 million, or $0.74 per share, compared to a loss of $125 million, or $0.24 per share, in the same period last year. The increase compared with a year ago is primarily due to higher copper and zinc prices, and increased copper and zinc in concentrate sales volumes. In addition, our profit in the first quarter also benefited from increased revenues from the various by-products we produce including molybdenum, silver and germanium, and from a weaker Canadian dollar as compared to a year ago.

Adjusted profit from continuing operations attributable to shareholders1 in the first quarter, taking into account the items identified in the table below, was $303 million, or $0.60 per share, compared with a $6 million loss, or $0.01 per share, in the first quarter of 2024. The most significant after-tax adjustment to profit in the first quarter of 2025, reflected in the table below, is $50 million relating to changes to the carrying value of the financial liability for the preferential dividend stream to Corporación Nacional del Cobre de Chile (Codelco).

Three months ended

March 31,

(CAD$ in millions)

2025

2024

Profit (loss) from continuing operations attributable to shareholders

370

(125)

Add (deduct) on an after-tax basis:

QB variable consideration to IMSA and Codelco

(50)

Environmental costs

(11)

Share-based compensation

Commodity derivatives

(20)

Foreign exchange losses

Tax items

(28)

Other

Adjusted profit (loss) from continuing operations attributable to

shareholders1

303

(6)

Basic earnings (loss) per share from continuing operations

0.74

(0.24)

Diluted earnings (loss) per share from continuing operations

0.73

(0.24)

Adjusted basic earnings (loss) per share from continuing operations1

0.60

(0.01)

Adjusted diluted earnings (loss) per share from continuing operations1

0.60

(0.01)

Note:

1. This is a non-GAAP financial measure or ratio. See "Use of Non-GAAP Financial Measures and Ratios" for further information.

In addition to the items identified in the table above, our results include gains and losses due to changes in market prices in respect of pricing adjustments. Pricing adjustments resulted in $56 million of after-tax gains attributable to shareholders ($106 million, before tax) in the first quarter, or $0.11 per share.

FINANCIAL OVERVIEW

Three months ended

March 31,

(CAD$ in millions, except per share data)

2025

2024

Revenue and profit

Revenue

2,290

1,619

Gross profit

536

169

Gross profit before depreciation and amortization1

929

497

Profit (loss) from continuing operations before taxes

450

(235)

Adjusted EBITDA1

927

409

Profit (loss) from continuing operations attributable to shareholders

370

(125)

Profit attributable to shareholders

370

343

Cash flow

Cash flow from operations

(515)

Expenditures on property, plant and equipment

332

625

Capitalized production stripping costs

104

Balance Sheet

Cash and cash equivalents

6,214

1,295

Total assets

45,893

58,325

Debt and lease liabilities, including current portion

5,450

7,806

Per share amounts

Basic earnings (loss) per share from continuing operations

0.74

(0.24)

Diluted earnings (loss) per share from continuing operations

0.73

(0.24)

Basic earnings per share

0.74

0.66

Diluted earnings per share

0.73

0.65

Dividends declared per share

0.125

PRODUCTION, SALES AND PRICES

Production (000's tonnes)

Copper2

106

Zinc in concentrate

137

160

Zinc - refined

Sales (000's tonnes)

Copper2

106

Zinc in concentrate

108

Zinc - refined

Average prices and exchange rates

Copper (LME cash - US$/pound)

4.24

3.83

Zinc (LME cash - US$/pound)

1.29

1.11

Average exchange rate (CAD$ per US$1.00)

1.44

1.35

Notes:

SEGMENTED RESULTS

Our revenue, gross profit, and gross profit before depreciation and amortization1 by reportable segments are summarized in the table below.

Three months ended

March 31,

(CAD$ in millions)

2025

2024

Revenue

Copper

1,510

1,078

Zinc

780

541

Total

2,290

1,619

Gross profit

Copper

343

106

Zinc

193

Total

536

169

Gross profit before depreciation and amortization1

Copper

704

371

Zinc

225

126

Total

929

497

Gross profit margins before depreciation and amortization1

Copper

47 %

34 %

Zinc

29 %

23 %

Note:

1. This is a non-GAAP financial measure or ratio. See "Use of Non-GAAP Financial Measures and Ratios" for further information.

COPPER SEGMENT

Three months ended

March 31,

(CAD$ in millions)

2025

2024

Copper price (realized - US$/pound)

4.27

3.86

Production (000's tonnes)1

106

Sales (000's tonnes)1

106

Gross profit

343

106

Gross profit before depreciation and amortization2

704

371

Property, plant and equipment expenditures

277

588

Notes:

Performance

Gross profit from our copper segment increased to $343 million in the first quarter compared with $106 million a year ago (see table below) primarily due to higher copper prices and sales volumes, and higher by-product and co-product revenues from molybdenum and zinc. These items were partly offset by increased depreciation of QB assets as depreciation of additional QB assets began in the second quarter of 2024, and higher depreciation of capitalized stripping at Highland Valley Copper.

Copper production was 106,100 tonnes in the first quarter, an increase of 7% from the same period last year, driven by increased grades and mill throughput at Carmen de Andacollo and Highland Valley Copper. QB produced 42,300 tonnes of copper in the first quarter compared with 43,300 tonnes in the first quarter last year and 60,700 tonnes in the fourth quarter of 2024. A number of factors impacted asset utilization at QB in the quarter, as outlined below.

The table below summarizes the change in gross profit in our copper segment for the quarter.

Gross Profit (CAD$ in millions)

Three months ended

March 31,

As reported in the first quarter of 2024

106

Increase (decrease):

Copper price realized

150

Sales volumes

Unit operating costs

Inventory write-down (2025 - $7 million : 2024 - $41 million)

Labour settlement

(11)

Co-product and by-product contribution

Foreign exchange (CAD$/US$)

Depreciation

(96)

Net increase

237

As reported in current quarter

343

Property, plant and equipment expenditures in the first quarter totalled $277 million, including $185 million for sustaining capital. Sustaining capital expenditures included $138 million at QB primarily associated with ongoing construction of the Tailings Management Facility, as noted below, as well as ongoing construction of the truck shop.

Capitalized production stripping costs were $47 million in the first quarter compared with $82 million a year ago.

Markets

In the first quarter, LME copper prices rose 2% over the previous quarter to average US$4.24 per pound and were up 11% over the same period last year. Despite growing economic fears, global demand for copper remained robust, supported by government and corporate spending on renewable energy and infrastructure construction. Copper prices along with most commodity prices, came under pressure in early April on concerns over the impact of import tariffs on the US economy and its global trading partners. We expect Chinese consumers to continue to step-up purchases opportunistically at prices below US$4.00 per pound.

The tightness in the copper concentrate market continued to increase during the first quarter. Spot treatment charges fell to record lows, continuing a decline that started in the third quarter last year. Global copper concentrate production grew by 3.2% in 2024 to 19.3 million tonnes, while smelter capacity grew 4.4% last year to 22.8 million tonnes. Over the past 5 years, growth in smelter capacity has outpaced mine production growth by 2.1 times with 4.7 million tonnes of smelter capacity added for 2.2 million tonnes of increased concentrate production. Expectations for 2025 mine production have fallen by over 1.0 million tonnes from this time last year. Meanwhile, new smelter capacity continues to come online into 2025, with both new smelters and expansion of existing smelters expected in 2025 and 2026. With no clear pathway to solve the excess in global smelting capacity, in our view treatment and refining charges have reset to a lower range than seen previously, with an even greater share of revenue accruing to miners.

Global stocks of copper cathode on exchanges at the end of the first quarter were approximately 6.6 days of global consumption compared to the long-term average of 10.3 days, with more than half of the stocks currently in China and close to 80% of visible stocks in Asian warehouses. Total visible stocks, including bonded stocks, rose by 150,000 tonnes in the seasonally weak first quarter, though many stocks currently residing in the US may end up unavailable to the market should the US Section 232 investigation into copper result in a high import tariff level.

Operations

Quebrada Blanca

The following are the key updates relating to operational performance at QB in the first quarter:

10 Teck Resources Limited 2025 First Quarter News Release

Disclaimer

Teck Resources Limited published this content on April 24, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 24, 2025 at 05:19 UTC.