Record-Breaking Performance
Teck Resources Ltd TECK, Canada’s mining giant, outperformed earnings projections for Q4 of 2023. Bolstered by robust sales of steelmaking coal, unprecedented copper production, and favorable copper prices, the company reported adjusted EBITDA of $1.7 billion, setting a new high.
Shining in the Copper Market
President and CEO Jonathan Price shared, “We had strong fourth quarter performance across our business, generating adjusted EBITDA of $1.7 billion. This success was fueled by our record copper production.” Teck’s fourth-quarter copper output hit 296,000 tons, a substantial increase from the previous year, while zinc production also saw a noteworthy rise.
Strategic Expansion Plans
Looking ahead to 2024, Teck is eyeing growth in its copper segment. The company aims to prolong the life of its HVC mine in British Columbia, as well as commence the permitting process for the San Nicolas project in Mexico. Despite the stellar results, Teck is steadfast in its copper and zinc output projections for the year.
Closing the Glencore Deal
Teck is on course to finalize the sale of its coal unit to Glencore PLC GLCNF by the third quarter of 2024. This strategic move, valued at $9 billion and pending approval from Canadian authorities, underscores Teck’s pivot towards strengthening its copper business.
Return to Shareholders
Post-earnings, Teck declared a dividend of $0.125, payable on March 28, to shareholders on record as of March 15. Furthermore, the company’s board sanctioned a stock buyback program of up to $500 million, in line with its Capital Allocation Framework.
