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Teck Resources tops profit estimates on stronger copper production and prices
Teck Resources beat Wall Street estimates for second-quarter profit on Thursday, helped by higher copper prices and increased production.
Shares of the company rose 4% in afternoon trading.
Benchmark three-month copper prices climbed 41.5% in the quarter from a year earlier, powered by concerns over tight supplies and strong demand in China.
Global copper demand is expected to jump 50% by 2040 as utilities rush to build facilities to cater to surging power consumption by data centers, the energy transition and higher defense spending.
Teck Resources, which is in the process of merging with Anglo American in a $53 billion deal, said realized copper prices averaged $6.05 per pound in the second quarter, up from $4.32 per pound a year earlier. Production rose nearly 24.6% to 135,900 tons.
On a post-earnings call, Teck Resources said the company’s merger approval process with Chinese regulators was progressing normally and that it had not received any requests for remedies from authorities in China.
Separately, Teck said it was continuing to evaluate a broad range of potential feedstock sources for germanium processing as the miner works to expand its capabilities in the critical mineral.
Teck, North America’s largest germanium producer, said last year it was considering options to increase production of the metal and was in discussions with the Canadian and US governments regarding potential funding support.
Germanium is a strategic mineral used in semiconductor manufacturing, infrared technologies, fiber-optic cables and solar cells.
Production at the Quebrada Blanca mine in Chile increased to 55,800 tons, from 52,700 tons a year earlier.
The miner reported adjusted earnings of C$1.93 per share for the quarter ended June 30, above analysts’ average estimate of C$1.25, according to data compiled by LSEG.
Separately, the Canadian government this month announced a potential equity investment of up to C$400 million ($285 million) to support an expansion of Teck’s Trail Operations facility in British Columbia.
($1 = 1.4058 Canadian dollars)
(By Katha Kalia; Editing by Sriraj Kalluvila and Devika Syamnath)
Grupo Mexico expects mild copper shortfall this year on strong US economy, AI
Grupo Mexico expects a slight copper market deficit in 2026 due to a strong US economy and demand from green energy and artificial intelligence applications, the head of its mining unit said on Wednesday.
“Based on current supply and demand dynamics, we think there will probably be a slight copper market deficit for 2026 on the back of a resilient US economy and higher demand driven by decarbonization technologies, artificial intelligence and electric vehicles,” Leonardo Contreras told a call with analysts.
The outlook follows the conglomerate’s Tuesday report of a 79% jump in second-quarter net profit, fueled by higher copper prices.
(By Natalia Siniawski; Editing by Daina Beth Solomon)
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