Teck(US:TECK)2025-10-22 21:57Financial Performance - Profit from continuing operations attributable to shareholders was $281 million in Q3 2025, compared to a loss of $748 million in Q3 2024, primarily due to an after-tax impairment charge of $828 million in the previous year[21]. - Adjusted profit from continuing operations attributable to shareholders was $372 million, or $0.76 per share, compared to $314 million, or $0.61 per share, in Q3 2024[24]. - Revenue for Q3 2025 was CAD$3,385 million, a 18.4% increase from CAD$2,858 million in Q3 2024[27]. - Gross profit for Q3 2025 reached CAD$660 million, up 38.0% from CAD$478 million in Q3 2024[27]. - The company declared dividends of CAD$0.125 per share in Q3 2025, down from CAD$0.625 per share in Q3 2024[27]. - The company returned approximately $1.0 billion to shareholders through share buybacks and dividends from January 1 to October 21, 2025, with $205 million returned in Q3 alone[22]. - The company reported a significant increase in gold production at Carmen de Andacollo, rising to 10.0 thousand ounces in Q3 2025 from 6.3 thousand ounces in Q3 2024, an increase of 58.73%[181]. - Total revenue for the nine months ended September 30, 2025, was CAD$7,698 million, compared to CAD$6,279 million for the same period in 2024, marking a 22.7% increase[174]. Production and Sales - Copper production in Q3 2025 was 104,100 tonnes, down from 114,500 tonnes in Q3 2024, with QB production specifically decreasing from 52,500 tonnes to 39,600 tonnes due to ongoing tailings management[21]. - Zinc in concentrate production was 150,500 tonnes in Q3 2025, a 5% decrease from the previous year, attributed to lower production at Red Dog, partially offset by higher output from Antamina[21]. - Copper sales volumes were 110,300 tonnes in Q3 2025, similar to the previous year, while zinc in concentrate sales volumes increased by 14% to 305,700 tonnes[22]. - The global copper concentrate market remains tight, with mine supply disruptions leading to losses exceeding 1 million tonnes of contained copper in Q3 2025[44]. - Total copper production guidance for 2025 is expected to be between 415,000 to 465,000 tonnes, with annual net cash unit costs projected between US$2.05 – $2.30 per pound[67]. - Annual total zinc in concentrate production is expected to be 525,000 to 575,000 tonnes in 2025, decreasing to 275,000 to 325,000 tonnes by 2028[95]. Costs and Expenses - Operating costs for QB in Q3 2025 were US$317 million, an increase of US$7 million year-over-year, driven by higher maintenance and contractor costs[49]. - Operating costs at Antamina in Q3 2025 were US$98 million, an increase of US$6 million from the previous year, attributed to higher labor and diesel costs[56]. - Total operating costs for the third quarter of 2025 totaled CAD$1,363 million, up from CAD$1,206 million in the same quarter of 2024, indicating an increase of 13.0%[176]. - Total cash unit costs including QB were US$2.69 per pound in Q3 2025, up from US$2.60 per pound in the same period last year[60]. - Adjusted cash cost of sales for copper was CAD$3.71 per pound in Q3 2025, compared to CAD$3.25 per pound in Q3 2024, reflecting increased operational costs[212]. Market and Pricing - The average LME copper price increased by 6% to $4.44 per pound, while the average LME zinc price rose by 2% to $1.28 per pound in Q3 2025[21]. - The average realized copper price in Q3 2025 was US$4.45 per pound, compared to US$4.21 per pound in Q3 2024, marking a 5.7% increase[34]. - The average zinc price on the LME in Q3 2025 was US$1.28 per pound, a 7.2% increase from the previous quarter[80]. Strategic Developments - Teck announced a merger agreement with Anglo American plc on September 9, 2025, to form the Anglo Teck group, expected to close within 12-18 months[22]. - The Comprehensive Operational Review led to revised annual production guidance for QB and Highland Valley Copper for 2025-2028, and updated net cash unit cost guidance for 2025 and 2026[22]. - The company is currently assessing the impact of new accounting standards effective from January 1, 2026, on its consolidated financial statements[165][167]. Financial Position - As of September 30, 2025, the company's liquidity was $9.5 billion, including $5.3 billion in cash, reflecting a decrease of $2.8 billion since December 31, 2024[108]. - Total debt as of September 30, 2025, was CAD$5,482 million, with net debt (cash) at CAD$(2,105) million[208]. - The net debt to net debt-plus-equity ratio improved to 1% as of September 30, 2025, compared to a negative 8% at the end of 2024[106].