Teck Resources Limited (TECK) Bundle
A Brief History of Teck Resources Limited
Teck Resources Limited, a Canadian mining company, has undergone significant transformations leading up to 2024. The company, primarily recognized for its copper and zinc production, has positioned itself as a leader in the energy transition metals sector.
Company Transformation and Strategic Focus
In July 2024, Teck completed the sale of its remaining 77% interest in the steelmaking coal business, Elk Valley Resources, receiving cash proceeds of US$7.3 billion. This strategic move was aimed at refocusing the company on its core operations in copper and zinc, aligning with global energy transition trends.
Financial Performance in 2024
During the third quarter of 2024, Teck reported significant financial metrics:
| Financial Metric | Q3 2024 (CAD$ in millions) | Q3 2023 (CAD$ in millions) |
|---|---|---|
| Revenue | $2,858 | $1,989 |
| Gross Profit | $478 | $261 |
| Adjusted EBITDA | $986 | $417 |
| Loss from Continuing Operations | $(748) | $(48) |
| Adjusted Profit from Continuing Operations | $314 | $85 |
| Basic Loss per Share | $(1.45) | $(0.09) |
| Adjusted Basic Earnings per Share | $0.61 | $0.16 |
Teck's adjusted profit from continuing operations attributable to shareholders was $314 million, equating to $0.61 per share. Despite this, the company reported a loss from continuing operations of $(748 million), primarily attributed to an impairment charge at its Trail Operations.
Copper Production and Market Trends
Teck achieved a record copper production of 114,500 tonnes in Q3 2024, with 52,500 tonnes coming from its Quebrada Blanca (QB) operations. The overall copper production guidance for the year was adjusted to a range of 420,000 to 455,000 tonnes, reflecting challenges at Highland Valley Copper.
In terms of pricing, copper prices averaged US$4.18 per pound during Q3, closing at US$4.43 per pound, contributing to positive pricing adjustments amounting to $103 million .
Shareholder Returns and Debt Management
Teck has returned over $1.3 billion to shareholders through share buybacks and dividends from January 1 to October 23, 2024. In Q3 alone, the company returned $720 million to shareholders, which included $398 million for share repurchases and $322 million in dividends . Additionally, Teck reduced its debt by US$1.5 billion through a bond tender offer and repayment of short-term loans.
Operational Improvements and Future Outlook
Teck's operational strategy includes ongoing improvements at its QB site, with expectations to reach design throughput rates by the end of 2024. The company has also updated its production guidance for molybdenum due to lower production levels, anticipating 3,000 to 4,000 tonnes for the year .
Overall, Teck Resources Limited is poised for continued growth in the energy transition metals market, with a strong focus on copper production and shareholder value. The company's strategic decisions in 2024 reflect its commitment to sustainability and operational excellence.
A Who Owns Teck Resources Limited (TECK)
Shareholder Composition
As of 2024, Teck Resources Limited (TECK) has a diverse shareholder base comprising institutional investors, retail investors, and company insiders. The ownership structure is as follows:
| Shareholder Type | Percentage Ownership |
|---|---|
| Institutional Investors | Approximately 67% |
| Retail Investors | Approximately 20% |
| Company Insiders | Approximately 13% |
Major Institutional Shareholders
Key institutional shareholders as of 2024 include:
| Institution | Percentage Ownership |
|---|---|
| The Vanguard Group, Inc. | 8.5% |
| BlackRock, Inc. | 7.2% |
| Fidelity Investments | 6.1% |
| Royal Bank of Canada | 5.0% |
| State Street Corporation | 4.5% |
Insider Ownership
Insider ownership is notable, with significant holdings reported by executives and board members:
| Name | Position | Shares Owned |
|---|---|---|
| Jonathan Price | President and CEO | 250,000 |
| Marcia Smith | Chair of the Board | 150,000 |
| Don Lindsay | Former President and CEO | 200,000 |
Recent Changes in Ownership
In 2024, Teck Resources completed the sale of its remaining 77% interest in the steelmaking coal business, Elk Valley Resources (EVR), to Glencore, receiving cash proceeds of US$7.3 billion. This strategic move has influenced the company's focus on copper production and energy transition metals, impacting shareholder returns significantly.
Share Buybacks and Dividends
As part of its capital allocation strategy, Teck has returned substantial capital to shareholders:
| Type | Amount (CAD$) |
|---|---|
| Total Shareholder Returns (2024) | Over $1.3 billion |
| Share Buybacks (Q3 2024) | $398 million |
| Dividends (Q3 2024) | $322 million |
Future Ownership Outlook
Teck Resources aims to enhance shareholder value through continued focus on copper production and strategic investments in energy transition projects. The company's commitment to shareholder returns is expected to maintain strong investor interest and potentially increase institutional ownership over time.
Teck Resources Limited (TECK) Mission Statement
Overview
Teck Resources Limited focuses on being a leading diversified resource company, with a primary commitment to sustainability, innovation, and operational excellence. The company aims to provide essential materials for the energy transition, particularly through its copper and zinc production.
Mission Statement
Teck's mission statement emphasizes the following key components:
- Delivering Value: Creating sustainable value for shareholders, employees, and stakeholders.
- Responsible Mining: Conducting operations responsibly to minimize environmental impact and enhance community well-being.
- Innovation: Investing in technology and innovation to improve efficiency and safety across operations.
- Growth Strategy: Focusing on copper and zinc as critical components for the global energy transition.
Recent Financial Performance
As of Q3 2024, Teck Resources reported significant financial metrics indicating a robust operational performance:
| Financial Metrics | Q3 2024 (CAD$ in millions) | Q3 2023 (CAD$ in millions) |
|---|---|---|
| Revenue | $2,858 | $1,989 |
| Gross Profit | $478 | $261 |
| Adjusted EBITDA | $986 | $417 |
| Profit (Loss) from Continuing Operations | $(759) | $48 |
| Adjusted Profit from Continuing Operations | $314 | $85 |
| Basic Loss per Share | $(1.45) | $(0.09) |
Copper Production and Pricing
Teck Resources achieved record copper production in Q3 2024, with significant contributions from its Quebrada Blanca (QB) operations:
- Total copper production: 114,500 tonnes
- Copper production from QB: 52,500 tonnes
- Average copper price (LME): US$4.18 per pound
- Closing copper price (LME): US$4.43 per pound
Strategic Initiatives
Teck has undertaken several strategic initiatives as part of its mission to become a pure-play energy transition metals company:
- Completion of the sale of 77% interest in steelmaking coal business, generating US$7.3 billion in cash proceeds.
- Return of over $1.3 billion to shareholders through dividends and share buybacks in 2024.
- Reduction of debt by US$1.5 billion.
Environmental and Social Responsibility
Teck emphasizes its commitment to sustainability and social responsibility:
- High-Potential Incident (HPI) Frequency Rate: 0.10, reflecting a 33% reduction from the previous year.
- Recognition as one of the World’s Best Employers 2024 by Forbes.
2024 Production Guidance
Teck has updated its production guidance for 2024:
| Production Guidance | 2024 (000’s tonnes) |
|---|---|
| Copper | 420 - 455 |
| Zinc | 565 - 630 |
| Refined Zinc | 240 - 250 |
How Teck Resources Limited (TECK) Works
Company Overview
Teck Resources Limited (NYSE: TECK) is a diversified resource company engaged in mineral exploration, mining, and processing of various metals and minerals, including copper, zinc, and molybdenum. In 2024, the company has transitioned into a pure-play energy transition metals company, focusing on copper production and growth.
Financial Performance
As of Q3 2024, Teck Resources reported the following financial metrics:
| Financial Metrics | Q3 2024 (CAD$ in millions) | Q3 2023 (CAD$ in millions) |
|---|---|---|
| Revenue | $2,858 | $1,989 |
| Gross Profit | $478 | $261 |
| Adjusted EBITDA | $986 | $417 |
| Profit (Loss) from Continuing Operations Before Taxes | $(759) | $48 |
| Loss from Continuing Operations Attributable to Shareholders | $(748) | $(48) |
| Basic Loss Per Share from Continuing Operations | $(1.45) | $(0.09) |
| Adjusted Basic Earnings Per Share from Continuing Operations | $0.61 | $0.16 |
Copper Production
Teck's copper production has seen significant growth. In Q3 2024, the company achieved:
- Total copper production of 114,500 tonnes.
- Quebrada Blanca (QB) contributed 52,500 tonnes.
- Production is expected to ramp up to full throughput rates by the end of 2024.
Zinc Production
Teck's zinc production also showed strong performance:
- Red Dog Operations produced 142,500 tonnes of zinc, an increase of 14% year-over-year.
- Updated annual unit cost guidance for zinc has been adjusted downwards due to improved performance.
Market Trends and Pricing
In Q3 2024, copper prices remained robust:
- Average copper price (LME) was US$4.18 per pound.
- Closing copper price at the end of Q3 was US$4.43 per pound.
- Positive pricing adjustments contributed $103 million to the revenue in Q3.
Strategic Initiatives
Teck has implemented several strategic initiatives following the sale of its steelmaking coal business:
- Sale of 77% interest in Elk Valley Resources generated US$7.3 billion in cash proceeds on July 11, 2024.
- Over $1.3 billion returned to shareholders through share buybacks and dividends in 2024.
- Debt reduction of US$1.5 billion was achieved through a bond tender offer and short-term loan repayments.
Liquidity Position
As of October 23, 2024, Teck's liquidity includes:
- Total liquidity of $11.9 billion, consisting of $7.8 billion in cash.
- Net cash position of $1.8 billion as of September 30, 2024.
- Generated cash flows from operations of $134 million in Q3 2024.
2024 Guidance
Teck's updated guidance for 2024 includes:
| Production Guidance | 2024 Estimates |
|---|---|
| Copper (000’s tonnes) | 420 - 455 |
| Zinc (000’s tonnes) | 565 - 630 |
| Refined Zinc (000’s tonnes) | 240 - 250 |
| Copper Net Cash Unit Costs (US$/lb.) | 1.90 - 2.30 |
| Zinc Net Cash Unit Costs (US$/lb.) | 0.45 - 0.55 |
Safety and Sustainability
Teck has emphasized safety and sustainability in its operations:
- Reported a High-Potential Incident (HPI) Frequency rate of 0.10 in Q3 2024, a 33% reduction compared to the previous year.
- Teck was recognized on Forbes' list of the World’s Best Employers for 2024.
Conclusion of Q3 2024 Performance
Teck Resources Limited continues to focus on its copper growth strategy and shareholder returns, underpinned by strong operational performance and a solid financial position.
How Teck Resources Limited (TECK) Makes Money
Revenue Sources
Teck Resources Limited primarily generates revenue through the production and sale of metals, including copper, zinc, and molybdenum. As of Q3 2024, the company reported a total revenue of $2,858 million CAD, compared to $1,989 million CAD in Q3 2023.
| Revenue Source | Q3 2024 (CAD$ million) | Q3 2023 (CAD$ million) |
|---|---|---|
| Copper | $1,669 | $984 |
| Zinc | $551 | $557 |
| Molybdenum | $73 | $55 |
| Other | $65 | $19 |
Copper Production and Pricing
Teck's copper production reached 114,500 tonnes in Q3 2024, with the Quebrada Blanca (QB) mine contributing 52,500 tonnes. The average copper price during this period was approximately US$4.18 per pound, closing at US$4.43 per pound. This pricing contributed to $103 million CAD in positive pricing adjustments for the quarter.
Zinc Production
In Q3 2024, zinc production at the Red Dog mine increased by 14% to 142,500 tonnes. The average zinc net cash unit cost is expected to be between US$0.45 to $0.55 per pound. The total gross profit from zinc operations was reported as $358 million CAD.
Strategic Business Changes
Teck Resources has transitioned to focus on energy transition metals, having divested its steelmaking coal business in July 2024 for US$7.3 billion. This strategic move aims to enhance shareholder returns and reduce debt. In Q3 2024, the company returned over $1.3 billion CAD to shareholders through share buybacks and dividends.
Financial Performance Overview
For Q3 2024, Teck reported:
- Gross Profit: $478 million CAD
- Adjusted EBITDA: $986 million CAD
- Loss from Continuing Operations: $759 million CAD, primarily due to an impairment charge.
| Financial Metric | Q3 2024 (CAD$ million) | Q3 2023 (CAD$ million) |
|---|---|---|
| Revenue | $2,858 | $1,989 |
| Gross Profit | $478 | $261 |
| Adjusted EBITDA | $986 | $417 |
| Loss from Continuing Operations | $(759) | $48 |
Capital Allocation and Shareholder Returns
Teck has committed to a capital allocation framework that prioritizes shareholder returns, debt repayment, and funding for copper growth projects. In Q3 2024, the company repurchased $398 million CAD of its subordinate voting shares and paid out $322 million CAD in dividends.
Production Guidance for 2024
Teck's guidance for 2024 includes:
- Copper production: 420,000 to 455,000 tonnes
- Zinc production: 565,000 to 630,000 tonnes
- Refined zinc production: 240,000 to 250,000 tonnes
The company expects net cash unit costs for copper to range from US$1.90 to $2.30 per pound.
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Article updated on 8 Nov 2024
Resources:
- Teck Resources Limited (TECK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Teck Resources Limited (TECK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Teck Resources Limited (TECK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.