Earning Date, Transcript Summary & Report

Earnings Per Share Beat: Teck Resources Limited reported an EPS of $0.3127, exceeding expectations of $0.26, indicating strong financial performance.

Record Cash Return to Shareholders: The company returned $1.8 billion in cash to shareholders in 2024, including $514 million in dividends and $1.25 billion in share buybacks, marking the largest cash return in its history.

Debt Reduction and Stability: Teck reduced its debt by $2.5 billion in 2024, enhancing its balance sheet and financial stability, with a net cash position of $2.1 billion as of December 31, 2024.

EBITDA Surge in 2024: Adjusted EBITDA more than doubled in 2024 to $2.9 billion, with a 160% increase to $835 million in Q4 compared to the same period last year, driven by strong base metals prices and higher sales volumes.

Record Copper Production Increase: The company achieved a record annual copper production of 446,000 tons, a 50% increase from the prior year, and continued to ramp up production at QB, achieving design throughput rates by year-end.

Safety Performance Excellence: Teck maintained a low high potential incident frequency of 0.12 across its operations, reflecting a strong commitment to safety and operational excellence.

Future Copper Production Growth: The company is well-positioned for future growth, with 2025 copper production guidance of 490 to 565 thousand tons, driven by ongoing ramp-up at QB and improved grades at Highland Valley.

Cost Management Success: Teck's focus on cost management resulted in a 21% reduction in corporate costs compared to 2023, reflecting effective cost discipline and structural reductions post-sale of the steelmaking coal business.

Sustainability Recognition Achievements: The company received recognition for its sustainability efforts, being named one of Canada’s top 100 employers for the eighth consecutive year and one of the world’s top companies for women in 2024.

Zinc Production Decline: The company reported a decline in zinc production, with guidance for 2025 indicating a decrease to 525 to 575 thousand tons from 616 thousand tons produced in 2024, reflecting the advancing mine life at Red Dog.

Production Challenges Ahead: Production at Antamina was lower than expected due to a decline in grades, which was anticipated in the mine plan, indicating potential challenges in maintaining production levels.

Zinc Segment Cost Increase: The net cash unit cost for the zinc segment is expected to increase to between US 45 cents and 55 cents per pound in 2025, compared to US 39 cents per pound in 2024, driven by lower production and higher labor and consumable costs.

Electrolytic Plant Repair Impact: The repair of the electrolytic plant at Trail operations is still ongoing, which has impacted refined zinc production, indicating operational challenges that could affect output.

Economic Uncertainty Impact: The company is facing economic uncertainty and potential tariffs between the US and Canada, which could impact trade flows and market dynamics, although they believe it will not materially affect their business.

Economic Challenges Ahead: Despite strong cash returns to shareholders, the company is navigating a complex economic environment that may pose risks to future performance.