Teck Assets (TSX:TECK.A,TSX:TECK.B,NYSE:TECK) closed out 2024 with document copper manufacturing and powerful monetary outcomes, regardless of ongoing commerce uncertainties that would influence its operations.
The Vancouver-based mining big launched its unaudited This autumn outcomes on Thursday (February 20), reporting adjusted EBITDA of C$835 million for the interval, pushed primarily by elevated copper and zinc gross sales and sturdy steel costs.
“2024 was a transformational 12 months as we repositioned Teck as a pure-play vitality transition metals firm with the sale of the steelmaking coal enterprise and document annual copper manufacturing,” stated President and CEO Jonathan Value.
He highlighted Quebrada Blanca’s efficiency, in addition to 2024’s C$1.8 billion in share buybacks and dividends.
Along with hitting an annual document, Teck achieved its third consecutive quarter of document copper output in This autumn.
The corporate produced 122,100 metric tons of copper in This autumn, bringing its whole for 2024 to 446,000 metric tons — up 50 p.c from the earlier 12 months. Chile’s Quebrada Blanca contributed 60,700 metric tons within the fourth quarter alone.
Teck’s copper enterprise generated C$732 million in gross revenue earlier than depreciation and amortization in This autumn, up 160 p.c year-on-year. Gross revenue from the phase was C$299 million for the fourth quarter.
Pink Canine contributed to a 24 p.c year-on-year enhance in zinc gross sales quantity for This autumn. The zinc enterprise reported gross revenue earlier than depreciation and amortization of C$320 million in This autumn, a 112 p.c rise from a 12 months in the past.
Financially, Teck’s revenue from persevering with operations earlier than taxes reached C$256 million for the quarter, whereas adjusted revenue from persevering with operations attributable to shareholders was C$232 million, or C$0.45 per share.
The corporate additionally reported a major strengthening of its monetary place.
Liquidity stood at C$11.3 billion as of Wednesday (February 19), together with C$7.1 billion in money. Teck additionally lowered its debt by C$196 million within the fourth quarter and by C$1.8 billion over the complete 12 months.
Value talks tariffs and Glencore collaboration
Because the US continues to think about 25 p.c tariffs on Canada, Value assured traders that the proposed levies, which stay on maintain till at the least March 4, would have minimal influence on Teck’s core enterprise.
“Globally, we’re witnessing a interval of serious financial uncertainty and alter that can alter commerce flows and probably influence international provide chains and market dynamics,” he stated in a convention name.
“Teck has a resilient enterprise pushed by the diversification of our merchandise and operations,” he added.
Value additionally famous that the corporate exports the majority of its copper and zinc concentrates to Asia and Europe, shielding it from probably the most vital results of the proposed tariffs.
BC Premier David Eby has urged the US to rethink its tariff stance, pointing to Teck’s Path smelter, which is positioned within the province, as an important provider of uncommon and strategic metals.
“If america doesn’t get this steel from the Teck smelter in Path, it’s not out there in any respect,” he stated in January.
Teck’s Path refinery produces zinc, lead and specialty metals comparable to germanium and indium, that are utilized in superior electronics and army purposes.
In the identical convention name, Value expressed openness to a collaboration with Swiss mining big Glencore (LSE:GLEN,OTC Pink:GLCNF). Glencore beforehand tried a full takeover of Teck in 2023, however in the end acquired solely its coal enterprise. Now discussions have emerged round a potential partnership in Chile, the place Teck’s Quebrada Blanca mine and Glencore’s Collahuasi mine function in shut proximity.
Teck owns 60 p.c of Quebrada Blanca, which not too long ago underwent an enlargement. Whereas it’s now up and working, it confronted price overruns and operational challenges throughout its ramp-up part.
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Securities Disclosure: I, Giann Liguid, maintain no direct funding curiosity in any firm talked about on this article.
