Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of $1.2 billion for Q3 2025, representing a 19% increase compared to the same period last year, driven by higher base metals prices and improved operational performance [12][13][9] - The balance sheet remains strong with liquidity of $9.5 billion, including $5.3 billion in cash, and an increase of approximately $500 million in cash during October due to the collection of receivables [21][22] Business Line Data and Key Metrics Changes - In the copper segment, gross profit before depreciation and amortization improved by 23% to $740 million, primarily due to higher base metals prices and lower smelter processing charges [14] - The zinc segment saw a 27% increase in gross profit before depreciation and amortization to $454 million, driven by higher zinc prices and byproduct revenues [17] Market Data and Key Metrics Changes - Red Dog zinc sales reached 273,000 tonnes, exceeding guidance, while the company expects fourth-quarter zinc sales to be between 125,000 to 140,000 tonnes [18][20] - The company anticipates annual copper production of 415,000 to 465,000 tonnes for 2025, with net cash unit costs projected between $2.05 to $2.30 per pound [16] Company Strategy and Development Direction - The merger with Anglo American is positioned as a transformative opportunity to create a global leader in critical minerals and a top five copper producer, with expected annual synergies of $800 million [4][30] - The company is focused on disciplined execution across operations and progressing the merger, while also enhancing operational practices through a comprehensive review [23][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational plans and the potential for significant value creation from the merger, emphasizing the importance of collaboration between the two companies [30][36] - The company is optimistic about the QB asset's potential, with plans to improve sand drainage and ramp up production capabilities by 2027 [26][28] Other Important Information - The company completed $144 million in share buybacks in July but will not execute further buybacks until after the merger closes [12][22] - The company has a strong commitment to safety, with a high potential incident frequency rate of 0.06, which is 50% below the previous year's rate [10] Q&A Session Summary Question: Preliminary discussions with Glencore regarding the JV - Management indicated that discussions regarding synergies between QB and Coyoacci are ongoing and that all parties are motivated to work together to capture value [35][36] Question: Updated guidance for 2025 - Management expects to remain within the guidance ranges for capital expenditures and unit costs, suggesting a midpoint approach for projections [38][39] Question: Engagement with Investment Canada on the merger - Management confirmed ongoing and productive discussions with the Canadian government, emphasizing commitments to capital spending and maintaining headquarters in Canada [66] Question: Value creation from the merger even without the JV - Management affirmed that the merger itself presents significant value creation opportunities, independent of the JV discussions [72][73] Question: Framework for valuing the JV economics - Management acknowledged that discussions regarding the economic split in the JV are forthcoming and will be part of the commercial agreements to be established [75][76]