Teck cut its output guidance for its flagship copper mine in Chile, little more than a month after agreeing one of the biggest mining deals in over a decade with Anglo https://t.co/JB6iroEZg5 ...

Core Viewpoint - Teck Resources Limited has provided an update on the Quebrada Blanca (QB) Action Plan and operational outlook following a Comprehensive Operations Review, highlighting production and sales volumes for Q3 2025 and adjustments to future production guidance due to ongoing challenges with the Tailings Management Facility (TMF) [1][3][10]. Group 1: QB Action Plan and Operational Review - The Comprehensive Operations Review initiated in August aims to enhance performance through the QB Action Plan, focusing on improving operating practices and setting achievable plans [2]. - A detailed assessment of operating plans was completed with input from third-party experts, leading to revised production guidance for QB and other operations for 2025-2028 [3][10]. - Production at QB is currently constrained by the TMF development, necessitating downtime in the concentrator, with efforts ongoing to enable safe and unconstrained production [4][5]. Group 2: Production and Sales Performance - In Q3 2025, copper production at QB was 39,600 tonnes, with sales volumes of 43,900 tonnes, reflecting ongoing TMF constraints [18]. - The annual 2025 copper production guidance for QB has been revised to 170,000 to 190,000 tonnes, down from 210,000 to 230,000 tonnes [18]. - Copper prices remained strong, averaging US$4.44 per pound in Q3, contributing to $108 million in positive pricing adjustments [8]. Group 3: Future Production Guidance - The annual production guidance for QB has been updated for 2026 to 200,000 to 235,000 tonnes, down from 280,000 to 310,000 tonnes, with similar adjustments for molybdenum production [19]. - For 2027, copper production is expected to be 240,000 to 275,000 tonnes, and for 2028, it is anticipated to be 220,000 to 255,000 tonnes, both lower than previously disclosed guidance [20]. - The company expects capital expenditures related to TMF development to be $420 million in 2026, in addition to $340 million in 2025 [30]. Group 4: Other Operations - Highland Valley Copper (HVC) production in Q3 2025 was 28,100 tonnes, lower than expected due to lower grades and unplanned maintenance, leading to a revised annual production guidance of 120,000 to 130,000 tonnes for 2025 [23]. - Red Dog operations performed strongly with zinc production of 122,000 tonnes in Q3 2025, and the annual production guidance remains unchanged at 430,000 to 470,000 tonnes for 2025 [23]. - Trail Operations continued to meet expectations with refined zinc production of 52,600 tonnes in Q3 2025, and the annual guidance for 2025 remains at 190,000 to 230,000 tonnes [29].

Group 1: Anglo American and Codelco Merger - Anglo American and Codelco have finalized an agreement to merge their Los Bronces and Andina copper mining operations, positioning them among the top five copper producers globally [1] - The collaboration is set for 21 years and is expected to release an additional 2.7 million tons of copper, with a pre-tax net present value increase of at least $5 billion [1] - The joint mining plan aims to extract an additional 120,000 tons of copper annually, reducing unit costs by approximately 15% compared to independent operations [1] Group 2: Current Production and Future Outlook - Los Bronces has an estimated copper reserve of about 8 million tons, but its annual production has decreased by 20% year-on-year, from 215,500 tons to 172,400 tons due to maintenance and expected lower ore grades [2] - Andina mine has copper reserves of 36.8 million tons with an average ore grade of 0.78% [3] - Market analysts warn of a potential supply-demand gap in the copper market by 2030, driven by increased demand for base metals, particularly in battery manufacturing [3] Group 3: Anglo American and Teck Resources Merger - Anglo American has reached an agreement with Teck Resources to merge and form Anglo Teck, which, pending regulatory approval, will be the largest mining merger in over a decade [4] - The new company will rank among the top five copper producers globally, with copper operations accounting for 70% of its business [4] - The combined market capitalization of the two companies exceeds $53 billion, with 62.4% of shares held by Anglo American's original shareholders [4] Group 4: Additional Assets and Production Projections - The merged entity will possess six copper assets along with high-quality iron ore and zinc operations [5] - Quellaveco copper mine, located in Peru, is recognized as one of the lowest-cost new copper mining projects globally, with an expected production of approximately 300,000 tons per year over the next decade [6][7] - Teck Resources is projected to produce 446,000 tons of copper concentrate in 2024, with total proven and probable copper reserves of 33 million tons [7]

Core Viewpoint - UBS report indicates that Freeport-McMoRan, a major U.S. mining company, has announced a temporary production halt at its Grasberg mine in Indonesia due to a mining accident, leading to a larger-than-expected reduction in copper output for the next two years, which will exacerbate the anticipated supply gap in the global copper market by 2026 [1] Group 1: Company Impact - Freeport-McMoRan's temporary production halt at the Grasberg mine is a significant event impacting its copper output forecasts [1] - The company’s revised copper production outlook is more pessimistic than market expectations, indicating potential challenges ahead [1] Group 2: Market Outlook - UBS maintains an optimistic outlook on copper prices despite the production issues, suggesting a bullish sentiment in the market [1] - Global refined copper production is forecasted to be 27.853 million tons in 2025, with demand at 27.586 million tons, resulting in a supply-demand balance deficit of 267,000 tons for that year [1] - For 2026, refined copper production is expected to reach 28.062 million tons, while demand is projected at 28.482 million tons, leading to a forecasted supply-demand balance deficit of 421,000 tons [1] - The supply-demand balance deficits are expected to worsen in subsequent years, with projections of negative 510,000 tons in 2027, negative 756,000 tons in 2028, and negative 1.224 million tons in 2029 [1] Group 3: Investment Recommendations - UBS recommends several mining stocks, including Anglo American, Teck Resources, Antofagasta, and Zijin Mining, as key investment opportunities in the sector [1]

Company Overview - Almonty Industries Inc. (ALM) shares increased by 12.3% to close at $5.95, with a notable trading volume compared to typical sessions, and a total gain of 23.5% over the past four weeks [1][2] Project Development - The company has initiated a large-scale drilling program at its Sangdong Molybdenum Project in South Korea, planning to drill 26 holes over 11,700 meters to confirm molybdenum reserves [2][3] - Almonty holds an exclusive agreement to supply 100% of future molybdenum output from the Sangdong project to SeAH M&S, a subsidiary of the SeAH Group, in response to a molybdenum shortage in South Korea [3] Financial Performance - The upcoming quarterly earnings report is expected to show earnings of $0.00 per share, reflecting a year-over-year change of +100%, with revenues projected at $17.33 million, a 248% increase from the previous year [4] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating that stock price movements may not continue without trends in earnings estimate revisions [5] Industry Context - Almonty Industries is part of the Zacks Mining - Miscellaneous industry, where Teck Resources Ltd (TECK) also operates, having closed at $38.62 with a 0.3% decrease in the last trading session and a 16.3% return over the past month [6]

Core Points - Hayasa Metals Inc. has successfully closed a $2 million private placement, issuing a total of 11,165,282 units at a price of $0.17 per unit, resulting in gross proceeds of $1,898,098 [1][2] - Each unit consists of one common share and one-half of a common share purchase warrant, with the whole warrant allowing the purchase of an additional common share at $0.22 per share [2] - Teck Resources Limited has acquired 934,500 units to maintain a 9.9% ownership stake on a partially diluted basis [2] Use of Proceeds - The net proceeds from the private placement will be utilized for ongoing exploration at the Urasar project in Armenia, acquiring additional property, and general working capital [3] - The company plans to conduct a 2,000-meter drill program at Urasar in 2026 and is considering a pipeline of projects for acquisition [3] Management Commentary - Joel Sutherland, CEO of Hayasa, expressed satisfaction with Teck's continued support and optimism regarding the company's first mover advantage in Armenia [4] Regulatory and Financial Details - The units were issued under the listed issuer financing exemption, and the securities are not subject to resale restrictions for Canadian residents [4] - The company paid $48,420 in finders' fees, which is 5% of the proceeds raised, to various entities involved in the placement [6] - Two officers of the company participated in the private placement, purchasing 588,400 units for a total of $100,028 [7] Shareholder Changes - Dennis Moore acquired 294,200 units at $0.17 per unit, increasing his total ownership to approximately 11.56% of the company's outstanding shares on an undiluted basis, a decrease from 13.31% [10] - If all warrants and stock options are exercised, Moore's ownership could rise to approximately 13.09% on a partially diluted basis [11] Company Overview - Hayasa Metals Inc. is focused on advancing copper and gold projects in Armenia's Tethyan Mineral belt, controlling both the Urasar and Vardenis projects [14]

Core Viewpoint - Anglo American's planned merger with Teck Resources aims to create a combined company with a market capitalization of approximately $56 billion and targeted annual pre-tax synergies of $2.2 billion, as estimated by J.P. Morgan [1] Financial Projections - Anglo American's earnings per share are projected to decline by 13% in 2027, narrowing to 5% in 2030 if coal and diamond assets are retained, or to 2% in 2030 if these assets are divested [2] - Revenue forecasts for Anglo American are $21.8 billion in 2025, $20.7 billion in 2026, and $23.2 billion in 2027, with adjusted EBITDA expected to be $6.5 billion in 2025, $7.1 billion in 2026, and $7.7 billion in 2027 [5] Synergies and Valuation - Corporate synergies of $800 million are anticipated by 2030, with 80% of these synergies expected to be realized by 2028 [3] - Pre-tax synergies from the integration of the Collahuasi mine are estimated to contribute an additional net present value of $3.5 to $4.0 billion for the combined Anglo-Teck entity [3] Deal Structure - The merger will be executed through a share swap of 1.3301 Anglo shares for each Teck share, with Anglo distributing a $4.5 billion special dividend to its shareholders [4] - Post-merger, Anglo shareholders will own 62% of the new group, which will be headquartered in Vancouver and listed in multiple financial markets including London, Toronto, Johannesburg, and New York [4] Debt and Earnings Outlook - Net debt is projected to peak at $10 billion in 2027, equating to 0.9 times EBITDA, and is expected to decrease to $6 billion (0.6x) if divestments are completed [5] - Adjusted net income is forecasted to rise from $722 million in 2025 to $1.6 billion in 2027, with adjusted EPS expected to increase from 61 cents in 2025 to $1.34 in 2027 [6]

Core Viewpoint - The proposed merger between Teck Resources and Anglo American faces opposition from the Osoyoos Indian Band, which demands consultations regarding the expansion of a smelter in British Columbia [1][2]. Group 1: Opposition and Demands - The Osoyoos Indian Band intends to use political and legal measures against the merger if consultations about the smelter expansion are not conducted [1]. - Chief Clarence Louie emphasizes that the land of the smelter is under the jurisdiction of the Osoyoos Indian Band and criticizes the lack of communication from the companies regarding the merger [2]. - The chief describes the companies' proposal to expand operations without consulting First Nations as "unconscionable," citing historical grievances related to pollution from the Trail operations [2]. Group 2: Merger Details - Teck and Anglo American announced a merger valued at over $50 billion, which includes a commitment to invest up to C$750 million (approximately $544 million) in the Trail facilities for copper processing expansion and increasing output of strategic metals [3]. - The Canadian Government has the authority to veto the merger under the Investment Canada Act, which includes a "net benefit test" evaluating job impact, exports, and technological advancement [4]. Group 3: Government and Legal Context - Canadian Industry Minister Melanie Joly has indicated that the companies have not sufficiently demonstrated the merger's benefits to the national economy [5]. - Chief Louie plans to urge politicians to block the deal unless there is improved consultation, referencing the United Nations Declaration on the Rights of Indigenous People, which requires free, prior, and informed consent from indigenous groups for projects affecting their lands [5][6]. - The declaration is legally recognized by both British Columbia and Canada, and the chief seeks dialogue on environmental, cultural issues, job opportunities, and revenue sharing related to the Trail operations [6].

Core Viewpoint - A Canadian Indigenous group is pledging to challenge the merger between Teck Resources and Anglo American unless meaningful consultations regarding the expansion of a smelter in British Columbia are conducted [1][2] Group 1: Merger Details - Teck Resources and Anglo American have agreed to merge, creating a mining giant valued at over $50 billion [1] - As part of the deal, the companies plan to invest up to CAD 750 million in the Trail operations to explore increased copper processing and expand the production of germanium and other metals [1] Group 2: Indigenous Concerns - Chief Clarence Louie stated that the smelter is located on land managed by the Osoyoos Indian Band and emphasized the lack of meaningful negotiations regarding the proposed merger and investment [1] - The Chief expressed the need for discussions on Indigenous participation in environmental and cultural issues, as well as potential employment and revenue-sharing related to the Trail operations [2] Group 3: Regulatory Environment - The Canadian government has the authority to block the proposed transaction under the Investment Canada Act [1] - Teck and Anglo American have committed to investing CAD 4.5 billion in Canada if the merger is approved, with plans to relocate their joint headquarters to Teck's base in Vancouver [1]

Core Viewpoint - Teck Resources Limited is highlighted as a strong investment opportunity, with Scotiabank raising its price target to C$70 due to robust liquidity and performance in the Zinc segment [1][3]. Financial Performance - For Q2 2025, Teck Resources reported maintaining $8.9 billion in liquidity, which includes $4.8 billion in cash [1]. - The company returned $487 million in share buybacks and $61 million in base dividends during the quarter, totaling over $1.1 billion returned year-to-date [2]. Segment Performance - The Zinc segment showed significant growth, with gross profit before depreciation and amortization increasing by 137% to $159 million [3]. - Net cash unit costs for Zinc improved to $0.49 per pound [3]. - Challenges were noted at the QB operation due to ongoing Tailings Management Facility development, which has limited mill online time and revised production outlook [3]. Company Overview - Teck Resources Limited engages in the research, exploration, development, processing, smelting, refining, and reclamation of mineral properties across Asia, the Americas, and Europe, operating primarily through Copper and Zinc segments [4].