Canadian miner Teck Resources (TECKb.TO) reported a 74% rise in its first-quarter copper production, driven by a ramp-up at its Quebrada Blanca (QB) mine in Chile. The strong performance sent the company’s shares up 6% on Thursday.
Teck, which recently announced the sale of its coal business to Glencore Plc (GLEN.L) as it focuses on building its copper portfolio, produced 99,000 tonnes of copper in the first quarter. This is a significant increase from the same period last year.
CEO Jonathan Price stated, “We had strong first quarter performance…with steadily increasing quarterly copper production as QB ramp-up advances.” The company reaffirmed its full-year copper production guidance of 465,000 to 540,000 tonnes, well above the 296,500 tonnes produced in 2023.
The ramp-up of the QB operations, with all outstanding major construction now completed, has been a key driver of Teck’s increased copper output. The company also plans to ramp up its molybdenum plant in the second quarter.
NBCFM analyst Shane Nagle noted that BHP Group’s (BHP.AX) proposed bid for Anglo American (AAL.L) highlights the “appetite for major mining companies to add copper to their portfolios.” Following the sale of its coal business, Teck’s portfolio of copper assets is seen as an attractive target.
While copper production was strong, Teck’s first-quarter steelmaking coal production remained flat at 6 million tons, impacted by extreme freezing temperatures in mid-January that resulted in unplanned downtime. Steelmaking coal sales were 5.9 million tons, compared to 6.2 million tons a year earlier.
Teck reported an adjusted profit of C$0.75 per share for the first quarter, slightly below the average analyst estimate of C$0.85 per share, according to LSEG data.
Overall, Teck’s focus on expanding its copper business and the strong performance at its QB mine have been well received by the market, as evidenced by the 6% rise in the company’s share price on Thursday.