Teck reports profitable third quarter as Anglo merger nears completion

Adjusted profit attributable to shareholders for the third quarter was $923-million, or $1.88 a share, compared with $372-million, or $0.76 a share, for the third quarter of 2025.

The company also generated cash flow of $1.6-billion from its mining operations and increased its cash position by $655-million during the quarter under review.

As of September 30, Teck Resources’ liquidity stood at $10.9-billion, including $6.7-billion of cash.

The company’s copper segment generated an Ebitda of $1.6-billion for the third quarter, compared with the Ebitda of $740-million posted for the third quarter of 2025, with the increase driven primarily by record copper prices, which averaged $6.40/lb.

Strong cost performance and lower smelting processing charges have reduced the company’s copper net cash unit costs to $1.77/lb in the third quarter, compared with $2/lb in the same reporting period last year.

Further, Teck has highlighted that its copper production volumes of 115 700 t were 11% higher than the same period last year with production increases across all of the company’s copper operations, except for the Carmen de Andacollo copper and gold mine in central Chile, where production decreased as a result of extreme weather conditions.

Despite the severe weather conditions, the Quebrada Blanca copper mine in northern Chile produced 47 200 t of copper in the third quarter.

Teck’s zinc segment generated gross Ebitda of $638-million for the third quarter, compared with $454-million in the same period last year and this was driven by higher commodity prices and the company’s continued focus on cash flow generation through its optimised feed strategy at the company’s Trail Operations in British Columbia, Canada.

Gross profit from the company’s zinc segment was $465-million in the third quarter and the Red Dog zinc mine in Alaska, in the US, reached concentrate sales volumes of about 247 000 t.

“Our third-quarter results showcase the underlying strength of our business, with increased production, disciplined execution and record copper prices driving strong financial performance and cash generation,” Teck president and CEO Jonathan Price says.

MERGER UPDATE
Teck has informed shareholders that it continues to work collaboratively with JSE- and LSE-listed diversified mining company Anglo American to secure the required merger approvals, adding that the transaction remains on track to close within the originally stated 12 to 18 months from the date of the merger announcement.

The company also highlights that integration plans continue to advance with a focus on maintaining safe, reliable operations and ensuring business continuity.

“These results further demonstrate the strong foundation from which we are advancing toward completion of the planned merger with Anglo American.

“This combination is expected to deliver yearly pre-tax synergies of about $800-million, with about 80% expected to be realised on a run-rate basis by the end of the second year following completion.

“Beyond these integration synergies, [the merged entity] Anglo Teck will work with key stakeholders and partners to optimise the value of the adjacent Collahuasi and Quebrada Blanca assets, creating the potential for about $1.4-billion of yearly underlying Ebitda uplift from 2030 through 2049,” Price says.

The combination of these two assets offer shareholders of both operations the fastest route to material copper growth at the lowest risk and capital intensity while delivering good returns relative to standalone alternatives and preserving future expansion opportunities at both operations, Price concludes.