Teck Resources Limited Reports Third Quarter 2024 Financial Results
Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) has announced its unaudited financial results for the third quarter of 2024, marking a significant transition into a pure-play energy transition metals company.
Key Financial Metrics:
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus Estimate |
|---|---|---|---|---|
| Revenue (CAD$ millions) | 2,858 | 1,989 | +43.7% | 2,070 |
| Gross Profit (CAD$ millions) | 478 | 261 | +83.2% | N/A |
| Adjusted EBITDA (CAD$ millions) | 986 | 417 | +136.5% | N/A |
| Loss from Continuing Operations (CAD$ millions) | (748) | (48) | N/A | N/A |
| Adjusted Profit (CAD$ millions) | 314 | 85 | +269.4% | N/A |
| Basic Loss per Share (CAD$) | (1.45) | (0.09) | N/A | N/A |
| Adjusted EPS (CAD$) | 0.61 | 0.16 | +281.3% | 0.37 |
Teck's financial performance in Q3 2024 was bolstered by record copper production and strong base metals pricing, despite a significant impairment charge at its Trail Operations. The company exceeded consensus estimates for adjusted earnings per share, reflecting robust operational execution.
Revenue Performance by Segment:
| Segment | Q3 2024 Revenue (CAD$ millions) | Q3 2023 Revenue (CAD$ millions) | YoY Change |
|---|---|---|---|
| Copper | 1,421 | 787 | +80.5% |
| Zinc | 1,437 | 1,202 | +19.6% |
The copper segment saw substantial growth due to increased production at the Quebrada Blanca mine, while the zinc segment benefited from higher sales volumes and improved pricing.
Operational Highlights:
- Record copper production of 114,500 tonnes, with Quebrada Blanca contributing 52,500 tonnes.
- Zinc production at Red Dog increased by 14% year-over-year to 142,500 tonnes.
Management Commentary:
Jonathan Price, President and CEO, highlighted the company's successful transformation into a leading energy transition metals company, emphasizing the strategic sale of its steelmaking coal business and the return of over $1.3 billion to shareholders.
Shareholder Returns and Debt Reduction:
- Teck returned $720 million to shareholders in Q3 through share buybacks and dividends.
- The company reduced its debt by US$1.5 billion, enhancing its financial flexibility.
Guidance and Outlook:
Teck has updated its 2024 guidance, reducing its annual copper production forecast to 420,000-455,000 tonnes due to operational challenges at Highland Valley Copper. The company remains focused on advancing its copper growth strategy and expects to reach full throughput rates at Quebrada Blanca by the end of 2024.
Stock Price Movement:
Following the earnings release, Teck's stock experienced a slight decline of approximately 0.5%, reflecting market reactions to the updated guidance and operational challenges.
Teck Resources continues to position itself as a key player in the energy transition metals market, with a strong focus on copper production and shareholder value creation.
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