Teck(US:TECK)2025-02-20 16:41Financial Performance - In Q4 2024, the company reported a profit from continuing operations attributable to shareholders of $385 million, a significant increase from a loss of $167 million in Q4 2023[19]. - Revenue for Q4 2024 was $2.786 billion, up from $1.843 billion in Q4 2023, while gross profit increased to $542 million from $152 million[24]. - Adjusted profit from continuing operations attributable to shareholders in Q4 2024 was $232 million, compared to $23 million in Q4 2023[20]. - Profit from discontinued operations was $1.2 billion in 2024, down from $2.6 billion in 2023, reflecting the sale of the steelmaking coal business[112]. - Operating cash flows from continuing operations improved to $1.3 billion in Q4 2024, compared to an outflow of $15 million in the same quarter last year[123]. - The company reported cash flow from operations of $1,288 million in Q4 2024, a significant increase from $1,126 million in Q4 2023[160]. - Basic earnings per share for Q4 2024 were $0.78, up from a loss of $1.35 in Q3 2024[160]. - Adjusted profit from continuing operations attributable to shareholders for the year ended December 31, 2024 was CAD$605 million, up from CAD$289 million in 2023[197]. Production and Sales - Copper sales volumes reached 124,900 tonnes in Q4 2024, up 24% year-over-year, while zinc in concentrate sales volumes also increased by 24% to 204,000 tonnes[17]. - The company achieved record copper production of 122,100 tonnes in Q4 2024, an increase of 18,700 tonnes from the same period last year[17]. - Record quarterly copper production reached 122,100 tonnes in Q4 2024, an 18% increase from 103,000 tonnes in Q4 2023[35]. - Copper production at Quebrada Blanca reached 60,700 tonnes in Q4 2024, up 77% from 34,300 tonnes in Q4 2023[172]. - Zinc production at Red Dog decreased by 17% year-over-year to 128,400 tonnes in Q4 2024, while refined zinc production at Trail Operations was 62,100 tonnes, down 7,800 tonnes due to a fire incident[76][90]. - Total zinc production at Trail Operations was 62,100 tonnes in Q4 2024, a decrease of 11% from 69,900 tonnes in Q4 2023[176]. Costs and Expenses - General and administration costs decreased by 33% to $59 million in Q4 2024, reflecting structural cost reductions implemented across the business[18]. - Total cash unit costs, including Quebrada Blanca (QB), were US$2.55 per pound in Q4 2024, up from US$2.20 per pound in Q4 2023[57]. - Other operating expenses decreased to $142 million in Q4 2024 from $170 million in Q4 2023, primarily due to lower environmental costs[101]. - Total cost of sales for 2024 was $7,458 million, compared to $5,364 million in 2023, indicating rising operational costs[169]. - The company expects total cash unit costs for copper to decrease from US$2.54 per pound in 2024 to a range of US$2.05 to US$2.35 in 2025[152]. Market Conditions and Outlook - Global copper demand remains strong, particularly in North America and China, driven by government and corporate spending on renewable energy and infrastructure[39]. - The company acknowledges ongoing uncertainty in global markets that may significantly affect commodity prices and financial results[135]. - The company expects to see an overall increase in ore grades in 2025 compared to 2024 as it continues to execute its mine plan[43]. - The company anticipates a decrease in general and administration costs by approximately 15% and research and innovation costs by about 35% in 2025 compared to 2024[145]. Shareholder Returns and Debt Management - The company completed the sale of its steelmaking coal business for total proceeds of $8.6 billion, with plans to allocate $3.5 billion for cash returns to shareholders[18]. - The company executed $1.25 billion of its authorized share buyback program of $3.25 billion in 2024[18]. - The company returned $549 million to shareholders in Q4 2024 through share buybacks and dividends[117]. - The company reduced its debt by US$196 million in Q4 2024, with total debt repayment of US$1.8 billion since January 1, 2024[118]. - Total debt as of December 31, 2024 was CAD$5,482 million, with a debt to adjusted EBITDA ratio of 1.9[200]. Capital Expenditures and Investments - Property, plant, and equipment expenditures in Q4 2024 totaled CAD$370 million, including CAD$218 million for sustaining capital[38]. - Capital expenditures for property, plant, and equipment were $422 million in Q4 2024, including $249 million for sustaining capital and $165 million for growth projects[125]. - The company plans to invest approximately US$430–485 million in copper growth capital expenditures in 2025, including US$100–110 million for HVC Mine Life Extension and US$220–240 million for Zafranal[64]. - Total capital expenditures for 2025 are guided to be between CAD$1,795 million and CAD$1,965 million, with sustaining capital for copper estimated at CAD$600-670 million[158]. Commodity Prices - Average LME copper prices rose by 13% to $4.17 per pound, and zinc prices increased by 22% to $1.38 per pound compared to the previous year[17]. - The average zinc price on the LME in Q4 2024 was US$1.38 per pound, a 10% increase from the previous quarter and a 22% increase year-over-year[80]. - The realized copper price was US$4.17 per pound in Q4 2024, a 13% increase compared to US$3.75 per pound in Q4 2023[31]. Exchange Rate and Financial Sensitivity - As of December 31, 2024, the company expects increased exposure to U.S./Canadian dollar exchange rate fluctuations due to a substantial cash balance held in U.S. dollars and reduced U.S. dollar debt[134]. - Adjusted profit from continuing operations is sensitive to changes in commodity prices and the Canadian/U.S. dollar exchange rate, with a CAD$0.01 change in the exchange rate estimated to affect adjusted profit by CAD$23 million[141].