From what the evidence shows, Image source: The Motley Fool. DATEThursday, July 24, 2025, at 11 a.
Additionally, EDTCALL PARTICIPANTSChief Executive Officer — Jonathan PriceChief Financial Officer — Crystal PrystaiSenior Vice President, Base Metals — Shehzad BharmalVice President, jects — Ian AndersonNeed a quote from one of our analysts (which is quite significant).
However, [ tected]RISKSTeck lowered its QB (Quebrada Blanca) annual copper duction guidance to 210,000 to 230,000 tonnes for 2025, citing TMF (tailings management facility) development issues and potential external delays, with online time affected in Q2 2025 and full completion dependent on successful remedial actions by year-end (something worth watching), in today's financial world.
The ship loader outage at QB’s port facility, announced June 2, is expected to extend into the first half of 2026, forcing the company to rely on alternative shipping arrangements resulting in an incremental impact on net cash unit cost, expected to be apximately $0.
10 per pound.
Nevertheless, CFO Prystai highlighted a 21% reduction in corporate overhead as a positive in Q2 2025, but noted this was partially offset by lower copper and zinc prices, as well as higher operating costs at Highland Valley and QB.
CEO Price acknowledged a fatality at the Antamina mine, noting the event led to a one-week site shutdown in the quarter and lower duction from that operation.
Furthermore, TAKEAWAYSAdjusted EBITDA: $722 million of adjusted EBITDA in Q2 2025, up 3% year-over-year, driven by increased fitability at Trail operations, lower smelter cessing charges, and reduced corporate overhead, partially offset by lower copper and zinc prices and higher operating costs.
Copper duction Guidance: Revised to 470,000–525,000 tonnes for 2025, reflecting a lower outlook for QB due to TMF challenges, while all other operations maintain previous guidance.
Copper Segment Gross fit: $673 million before depreciation and amortization in Q2 2025, down 3% year-over-year, due to lower prices and higher costs, partially offset by co-duct and byduct revenues.
Copper Net Cash Unit Cost: Net cash unit cost imved by $0. 00 per pound in Q2 2025, driven by higher byduct credits from zinc and molybdenum, despite cost increases at QB and Highland Valley.
QB TMF Remediation Impact: Incremental net cash unit cost is expected to be apximately $0. In contrast, 10 per pound, with remediation work targeted for completion by year-end.
Holder Returns: $487 million returned via buybacks in Q2 2025 (9. 8 million s); $1. Furthermore, 1 billion returned year-to-date via dividends and buybacks; 70% of the $3.
25 billion buyback authorization ($2 (remarkable data), amid market uncertainty. At the same time, 2 billion) as of Q2 2025.
Highland Valley Copper Mine Life Extension (MLE) ject: Sanctioned by the board for construction, extending mine life to 2046 with expected average annual copper duction of 132,000 tonnes; d capital estimate is CAD2.
1 billion–CAD2, considering recent developments. Additionally, Moreover, 4 billion (raised from a prior CAD1, amid market uncertainty.
8 billion–CAD2 billion estimate) due to contingencies, inflation, and accelerated curement, as announced with the sanction of the Highland Valley Copper mine life extension ject.
Liquidity: $8 (which is quite significant). 9 billion in liquidity, including $4.
8 billion in cash on hand as of July 23, 2025; company maintains investment-grade credit rating and has reduced debt by $2 billion since 2024.
Conversely, Zinc Segment Performance: Gross fit before depreciation and amortization increased 137% year-over-year to $159 million in Q2 2025, primarily due to higher byduct revenues and lower operating costs; Red Dog sales were 35,100 tonnes in Q2 2025, exceeding the guidance range.
Additionally, Zinc Net Cash Unit Cost: Decreased by $0 (this bears monitoring).
49 per pound in Q2 2025, mainly due to lower smelter charges and higher byduct credits; annual duction and cost guidance unchanged.
Sustainability and Safety: High-potential incident frequency rate for controlled operations was 0. 09 in the first half of 2025, below the 2024 performance of 0.
12; recognized for the nineteenth consecutive year as a "Best 50 Corporate Citizen" in Canada by Corporate Knights in 2025.
Additionally, Labor Agreements: All collective bargaining agreements at QB now, securing coverage through 2028; Carmen de Andacollo agreements finalized in June and July with three-year terms (remarkable data).
Growth jects gress: Sanction readiness targeted by year-end for both Zafranal (Peru) and San Nicolas (Mexico) copper jects; Zafranal is more advanced in permitting and construction readiness.
Additionally, However, QB Optimization Potential: Mill optimization and debottlenecking could increase throughput by 15%-25%, according to company statements; planning underway with DIR permit application expected in the second half of the year.
Meanwhile, Copper duction Per : There's potential for a further 33%-50% increase in copper duction per by 2026 as QB stabilizes and buybacks continue. Nevertheless, SUMMARYTeck Resources (TECK -8.
99%) reported a year-over-year increase in adjusted EBITDA for Q2 2025 and highlighted a robust capital return gram, with apximately 70% of its authorized buyback executed as of Q2 2025 (fascinating analysis), considering recent developments.
Nevertheless, This analysis suggests that company sanctioned the Highland Valley Copper mine life extension ject, raising its capital estimate to CAD2, considering recent developments.
1 billion–CAD2 (this bears monitoring).
4 billion to account for inflation, contingencies, and accelerated equipment curement, and described this investment as foundational for its ambition to double copper duction by decade’s end.
Management addressed operational setbacks at QB, reducing copper duction guidance for 2025 due to TMF issues and forecasting incremental unit costs of apximately $0.
Furthermore, 10 per pound due to alternate shipping logistics after a ship loader outage in Q2 2025, while asserting these constraints should be resolved by year-end.
However, The company’s zinc segment dered substantial fit growth in Q2 2025, and management emphasized disciplined cost management, resilient balance sheet strength, and maintained investment-grade credit, in this volatile climate.
Strategic ject advances were noted across the portfolio, with Zafranal and San Nicolas targeted for sanction readiness and all major labor agreements now secured through multi-year terms.
CEO Price stated, The ject extends the core assets to 2046, with average annual copper duction of 132,000 tonnes over the life of the mine.
Ship loader repairs at the QB port are as of Q2 2025, with capital cost estimates pending full damage assessment, and insurance recovery is being pursued, according to Anderson: we do have insurance coverage, and that includes interruption.
The planned transition to steady-state operations at QB will mark a one-time milestone ing completion of TMF work, after which long-term duction is expected to stabilize, with the company targeting design rates by the end of 2025, amid market uncertainty.
“showcase [QB] as a tier-one asset. ”CFO Prystai reported, “We have now $2. 2 billion or apximately 70% of our $3. Meanwhile, 25 billion authorized buyback, leaving apximately $1 billion remaining.
”Growth ject sanctioning apaches for Zafranal and San Nicolas were framed as optionality, with sequencing yet to be determined and each subject to final investment decisions.
INDUSTRY GLOSSARYTMF (Tailings Management Facility): An engineered structure for storing the byducts (tailings) of mining operations, critical for operational continuity and environmental compliance.
However, QB (Quebrada Blanca): Teck Resources Limited’s large-scale copper mining complex in Chile, subject to expansion and operational ramp-up.
However, MLE (Mine Life Extension): A capital ject that extends the operational life of an existing mine through new development and infrastructure (which is quite significant).
DIR (Declaración de Impacto Ambiental): The environmental impact statement submission required for permitting new or expanded mining activities in certain jurisdictions.
Full Conference Call TranscriptJonathan Price: Okay. Thank you, Emma, and good morning, everyone.
Now before we get into the quarter, I would to take a moment to acknowledge the incident earlier on Tuesday at one of our peers' operations in the Northwest of our vince of British Columbia (noteworthy indeed).
Additionally, Our thoughts are with the three workers that remain in the underground work area as well as their families, friends, and colleagues, and the emergency response teams.
Moreover, And we hope for their safe and speedy rescue. So turning to our second quarter 2025 results, starting with highlights on Slide four (which is quite significant).
Nevertheless, Overall, we are advancing our strategy of copper growth, while returning cash to holders.
Our fitability imved compared to the same period last year, to $722 million of adjusted EBITDA, amid market uncertainty.
On the other hand, We had strong performance in our zinc segment, with Red Dog sales above our guidance range and a significant imvement in our zinc net cash unit costs.
As well as another quarter of fitability and cash generation at Trail.
Across our established operations, duction is on track to meet our annual guidance (something worth watching), amid market uncertainty.
At QB, we had previously noted that we would be at the lower end of our guidance of around 230,000 tonnes for the year.
On the other hand, Whilst the team is working hard to achieve this, we acknowledge that there could be risk from possible external factors or, of course, any delay from the TMS development work.
Additionally, Furthermore, As a result, we've revised our outlook for QB to 210,000 to 230,000 tonnes for the year but continue to target design rates by year-end, in today's market environment.
Earlier today, we announced that the board has sanctioned the Highland Valley Copper mine life extension ject in British Columbia for construction.
This's foundational to our strategy to double copper duction by the end of the decade. Given the strong demand for copper as an energy transition metal, the ject will generate compelling returns.
However, With an IRR far surpassing our cost of capital and secure access to this critical mineral for the next two decades.
Moreover, On the other hand, The ject extends the core assets to 2046, with average annual copper duction of 132,000 tonnes over the life of the mine, in light of current trends.
We're continuing to return significant cash to holders, with elevated daily buying levels in the quarter resulting in a total of $487 million or 9. 8 million Class B s.
However, Year to date, we have returned a total of $1. 1 billion to our holders through dividends and buybacks and we have apximately 70% of our authorized $3, amid market uncertainty.
On the other hand, 25 billion buyback which is the equivalent of $2, amid market uncertainty. However, Finally, we are maintaining the resilience of the.
Including through our strong balance sheet which enables us to navigate uncertainty and continue to create value. We currently have $8. In contrast, 9 billion in liquidity, including $4.
However, Additionally, 8 billion in cash, given the current landscape. Nevertheless, Moreover, Turning to slide five.
We continue to be committed to safety and sustainability, in today's market environment.
Across the operations that we control, our high potential incident frequency rate remained low in the first half of the year at 0, in this volatile climate.
On the other hand, 09 below our 2024 performance of 0, in light of current trends.
I would to take a moment to acknowledge the fatality that occurred on April 22 at Antamina in which Teck Resources Limited holds a non-controlling interest (which is quite significant).
We're deeply saddened by this event and offer our condolences to the family, friends, and colleagues of the deceased.
Teck Resources Limited fully participated in the investigation, which was led by the team at Antamina, and learnings will be d across our company and across the sector.
We were honored to be named as one of Corporate Knights' 2025 Best 50 Corporate Citizens in Canada.
It's the nineteenth consecutive year that we've received this recognition, which is based on an evaluation of up to 25 sustainability indicators including board diversity, resource efficiency, financial management, sustainable revenue, and sustainable investment.
Furthermore, So now turning to QB on slide six (an important development). Additionally, QB's second quarter performance was impacted by the TMF development work.
We're advancing multiple TMF development initiatives to imve sand drainage rates and accelerate mechanical movements of sand to achieve steady-state operation.
Furthermore, This work impacted mill online time in the quarter as previously disclosed.
The planned post-QB2 construction pace of TMF development was based on design assumptions for sand drainage rates that have subsequently ven unachievable (noteworthy indeed), considering recent developments.
Modifications to cyclones alone, while showing an imvement in sand drainage rates, were not sufficient to allow us to fully catch up on TMF development work in the quarter (an important development).
As a result, we are implementing a range of additional measures to imve sand drainage rates and accelerate the mechanical movements of sand.
Including enhanced sand placement niques and optimization of the grind size concentrator.
Importantly, the TMF development work and the transition from starter dam to regular sound lifts is a one-time milestone (fascinating analysis). Furthermore, Related to the ramp-up of the operation.
When it is, the TMS development work will be behind us for the life of the facility. Nevertheless, While the TMS development work will continue in Q3, we continue to target design rates.
Additionally, By the end of the year (fascinating analysis). Throughput increased from the prior quarter, and we expect to see consistent grades of apximately 0.
Moreover, 61% in the second half of the year, in today's market environment. Work is to imve recoveries by year-end, which will also be helped by more consistent mill run time.
This analysis suggests that outage of the ship loader at QB's port facility announced on June 2 is expected to be ext into the first half of 2026.
We have been successfully shipping concentrate through our alternative port arrangements and have maximized shipments to local customers so there has been no duction impact (which is quite significant).
Conversely, Alternative sales logistics have had some incremental impact on our net cash unit costs, which is expected to be apximately $0. Nevertheless, 10 per pound.
We had a good step up in the molybdenum duction as a result of some key cess imvement initiatives implemented during the quarter (noteworthy indeed).
We expect to continue to see molybdenum duction imvements and we continue to target design throughput and recoveries at the moly plant by year-end (remarkable data).
Once we have the TMF development work, QB will be able to run at steady state, in light of current trends.
Showcasing it as a tier-one asset will be a cornerstone of Teck Resources Limited's portfolio for generations.
We continue to work on defining the most capital-efficient and value-accretive path for future growth of QB, in this volatile climate.
Additionally, Through optimization of the mill, and low capital debottlenecking opportunities, that could collectively increase throughput by a third of 15% to 25%.
The foundation of QB is its large long-life deposit, which can support multiple expansions.
Furthermore, And it offers multiple potential paths to create value for our holders including assessing adjacencies or synergies with Coyoac (this bears monitoring), given the current landscape.
What the data shows is operation also has the advantage of a very low strip ratio (quite telling). Which enabled competitive all-in sustaining costs.
We successfully achieved completion testing requirements under QB2.
5 dollars ject finance facility earlier this year, which vides independent verification confirming the robustness of design, construction, and operational capacity, given current economic conditions.
Nevertheless, And we have a taxability agreement in place through 2037 (something worth watching), in today's financial world.
Additionally, Taking all these factors into account, we are well positioned to generate significant future cash flows from this Tier one asset for decades to come (an important development).
Turning to the mine life extension at Highland Valley on slide seven. Highland Valley is Canada's largest copper mine, and a core asset in our portfolio.
And we are excited to announce the sanction of the Highland Valley Copper mine life extension or HPC MLE ject, considering recent developments. This's a lower ri.