The following is a summary of the Teck Resources Limited (TECK) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Teck reported Q1 adjusted EBITDA of $1.7 billion compared to $2 billion a year ago due to lower copper and zinc prices, higher unit costs in steelmaking coal and at operations.

• The company returned $80 million in share buybacks and paid $65 million in quarterly base dividends.

• Gross profit before depreciation and amortization decreased by 27% primarily due to significantly lower zinc prices and lower contracted zinc premiums on refined zinc trail operations.

• Teck Resources generated a gross profit of CAD 1.4 billion from their coal business in Q1. However, the QB2 operations registered a loss from an EBITDA perspective due to operational provisions.

Business Progress:

• All major construction at QB has been completed by Teck, marking the first shipments of concentrate.

• Teck finalized the minority sale of its steelmaking coal business to Nippon Steel Corporation and POSCO for US$1.3 billion in cash, with full sale to Glencore expected to close by Q3 2024.

• The company launched the North Pacific Green Coronal Consortium to decarbonize the commodities value chain between North America and Asia.

• Teck continues to invest in its copper growth portfolio with plans to advance near-term projects for potential sanctioning in 2025, following its capital allocation framework.

• Teck Resources remains committed to delivering copper growth, backed by favourable long-term market fundamentals, and will use the proceeds from the Glencore transaction mainly to reduce debt and fund near-term growth projects.

• The company is undertaking a full review of the QB2 project to guide learning and future growth, expected to be completed in the coming months.

More details: Teck Resources IR

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