Mission Statement, Vision, & Core Values (2024) of Teck Resources Limited (TECK)

An Overview of Teck Resources Limited (TECK)

General Summary of Teck Resources Limited (TECK)

Teck Resources Limited, a Canadian-based natural resources company, was founded in 1906 and has evolved into one of the largest mining companies in the world. The company primarily focuses on the extraction and production of metals and minerals, including copper, zinc, and steelmaking coal. Teck operates several mines and projects throughout North America and South America, including notable operations like Quebrada Blanca in Chile and Red Dog in Alaska. As of 2024, Teck has transitioned to emphasize its role as a leader in energy transition metals, particularly copper, which is crucial for renewable energy technologies.

In 2024, Teck reported total sales of approximately CAD $2.86 billion in Q3, a significant increase from CAD $1.99 billion in Q3 2023. This growth was driven by robust demand for copper and zinc, reflecting Teck’s strategic pivot towards energy transition metals.

Company's Financial Performance in the Latest Financial Reports

Teck Resources Limited's financial performance in Q3 2024 showcases impressive growth, despite facing challenges such as impairment charges. Key financial metrics from the third quarter include:

The company achieved record copper production of 114,500 tonnes in Q3 2024, with prices averaging US$4.18 per pound. This strong performance was complemented by an impressive increase in zinc production at the Red Dog mine, which rose by 14% to 142,500 tonnes compared to the previous year.

Introduction to Teck as a Leader in the Industry

Teck Resources Limited stands out as a leading player in the mining industry, particularly in the copper and zinc sectors. The company's strategic focus on transitioning to energy transition metals positions it favorably in a market increasingly driven by sustainability and renewable energy demands. In 2024, Teck's decision to sell its steelmaking coal business for US$7.3 billion marks a pivotal shift towards enhancing its portfolio in copper production and other critical minerals. This transition underscores Teck's commitment to sustainable mining practices and long-term growth.

Teck's continued investment in copper growth projects and its robust financial returns to shareholders highlight its effectiveness in navigating the complexities of the mining industry while maintaining a competitive edge. With a strong liquidity position of CAD $11.9 billion as of October 2024, Teck is well-equipped to capitalize on future opportunities in the energy transition metals market.

Mission Statement of Teck Resources Limited (TECK)

Mission Statement Overview

Teck Resources Limited (TECK) has articulated a mission statement that emphasizes its commitment to responsible mining and delivering high-quality products while contributing to the global transition to a sustainable economy. The mission serves as a guiding principle for the company's long-term goals, aligning operational strategies with environmental stewardship and community engagement.

Core Component 1: Responsible Mining

Teck's mission underscores its dedication to responsible mining practices. In 2024, the company reported a High-Potential Incident (HPI) Frequency rate of 0.10, which reflects a 33% improvement compared to the previous year. This statistic highlights Teck's ongoing efforts to enhance safety and operational standards across its mining operations.

Additionally, Teck has committed to sustainability initiatives, with a focus on reducing its carbon footprint. In 2023, the company achieved a reduction of approximately 10% in greenhouse gas emissions compared to 2020 levels, demonstrating its commitment to environmental responsibility.

Core Component 2: High-Quality Products

Teck Resources is focused on producing high-quality copper and zinc. In Q3 2024, the company achieved record copper production of 114,500 tonnes, with 52,500 tonnes sourced from the Quebrada Blanca (QB) mine. The average copper price during this period was US$4.18 per pound, closing at US$4.43 per pound. This strong pricing and production volume illustrates Teck's ability to deliver quality products that meet market demand.

The increase in both production and pricing reflects Teck's strategic focus on enhancing operational efficiency and meeting the needs of its customers.

Core Component 3: Commitment to Community and Stakeholders

Teck's mission emphasizes its commitment to community engagement and stakeholder relationships. In 2024, the company returned over $1.3 billion to shareholders through share buybacks and dividends, indicating a strong focus on shareholder value. In Q3 2024 alone, Teck returned $720 million, comprising $398 million in share repurchases and $322 million in dividends, including a supplemental dividend of $0.50 per share.

Moreover, Teck's new business structure supports its transition to a pure-play energy transition metals company, organizing operations to better serve North American and Latin American markets. This structural change is designed to enhance operational performance while maintaining strong relationships with local communities and stakeholders.

Teck's strategic focus on community and stakeholder engagement is evident in its financial returns and commitment to sustainable practices, reinforcing its mission to operate responsibly while delivering value to its stakeholders.

Vision Statement of Teck Resources Limited (TECK)

Vision Statement of Teck Resources Limited (TECK)

As of 2024, Teck Resources Limited's vision statement emphasizes its commitment to being a leading global resource company, focusing on sustainability and the energy transition. The core components of this vision include:

Teck aims to position itself as a leader in the production of energy transition metals, such as copper and zinc, essential for the global shift towards renewable energy. The company has updated its annual copper production guidance to a range of 420,000 to 455,000 tonnes for 2024.

Teck’s vision includes a strong commitment to sustainability, aiming to minimize its environmental impact while maximizing resource efficiency. The company reported a High-Potential Incident (HPI) Frequency rate of 0.10 in Q3 2024, which reflects a 33% reduction compared to the same period last year.

The company is focused on growth through innovation, particularly in its copper operations. Teck achieved a record copper production of 114,500 tonnes in Q3 2024. The company also plans to enhance its operational efficiency through mill optimization efforts aimed at improving throughput beyond nameplate capacity.

Teck’s financial health supports its vision. For Q3 2024, the company reported revenues of $2.858 billion CAD and an adjusted EBITDA of $986 million CAD. This strong financial performance enables Teck to invest in sustainable practices and growth initiatives.

Teck is committed to returning value to shareholders, having returned over $1.3 billion CAD through share buybacks and dividends from January to October 2024. This commitment underscores its vision of balancing growth with shareholder value.

Teck's vision also encompasses a commitment to safety and community engagement, essential for maintaining its social license to operate. The company emphasizes health and safety at its sites and has been recognized in the Forbes list of the World’s Best Employers for 2024.

Core Values of Teck Resources Limited (TECK)

Safety

The core value of safety at Teck Resources Limited (TECK) underscores the company's commitment to protecting the health and well-being of its employees and stakeholders. This value is crucial in ensuring that operations are conducted in a manner that minimizes risks and maximizes safety standards.

In Q3 2024, Teck reported a High-Potential Incident (HPI) Frequency rate of 0.10, which represents a 33% reduction compared to the same period in the previous year. This improvement reflects the effectiveness of Teck's safety initiatives and training programs designed to enhance workplace safety.

Sustainability

Teck's commitment to sustainability is evident in its strategic focus on environmental stewardship and responsible resource management. The company actively engages in programs aimed at reducing its environmental footprint and promoting sustainable practices across its operations.

As part of its sustainability efforts, Teck has allocated significant resources towards its copper growth strategy, which supports the transition to renewable energy. In Q3 2024, the average copper price (LME) was reported at US$4.18 per pound, contributing to the company's financial performance and its ability to invest in sustainable initiatives.

Integrity

Integrity is a foundational value for Teck, guiding its business practices and interactions with stakeholders. The company emphasizes transparency, accountability, and ethical conduct in all its operations.

Teck's integrity is reflected in its approach to community engagement and stakeholder relations. In 2024, Teck completed the sale of its steelmaking coal business, generating proceeds of US$7.3 billion, which were strategically reinvested into shareholder returns and debt reduction, demonstrating the company's commitment to responsible financial management.

Collaboration

Collaboration at Teck involves working together with employees, communities, and partners to achieve common goals and drive innovation. This core value is essential for fostering a culture of teamwork and inclusivity.

Teck's new business structure, announced in August 2024, organizes the company into regional business units for North America and Latin America, along with a dedicated Projects group. This structure is intended to enhance collaboration across teams and streamline operations to better capitalize on growth opportunities.

Excellence

Excellence is a core value that drives Teck to pursue the highest standards in its operations, products, and services. The company is committed to continuous improvement and innovation to enhance its performance.

In Q3 2024, Teck achieved record copper production of 114,500 tonnes, showcasing its operational excellence and efficiency. This achievement is part of a broader strategy to ensure that Teck remains a leader in the energy transition metals sector.

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.