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查看配图：Anglo American, Teck strike $50B merger in decade’s top mining dealHighland Valley Copper Operations in British Columbia. (Image courtesy of Teck Resources.)
Teck Resources (TSX: TECK.B; NYSE: TECK) beat third-quarter earnings expectations as record copper prices, stronger production and lower costs boosted returns ahead of its planned merger with Anglo American (LSE: AAL).
Profit rose more than fivefold to $1.59 billion (US$1.14 billion), or $3.24 per diluted share, from $281 million, or 57¢, a year earlier, Teck said in its quarterly results on Thursday. Adjusted earnings increased to $1.88 per share from 76¢, exceeding the $1.60 analyst consensus cited by Desjardins.
The results delivered an “earnings beat mainly driven by lower copper cash costs,” Desjardins analyst Bryce Adams wrote on Thursday, pointing to an additional benefit “alongside lower 2026 cost guidance.”
The stronger earnings and reduced cost outlook give Teck a cushion as a strike curbs output at Canada’s largest copper mine. Chinese regulatory approval also remains outstanding for the Anglo American merger, which the companies expect to complete by March.
Teck’s Class B shares rose 1% to $89.01 in Toronto on Thursday morning, valuing the company at about $43.7 billion. The shares have traded between $53.55 and $99.91 over the past year.
Copper performance
Reported profit included a $667-million after-tax reversal of an earlier writedown at Teck’s Trail smelter in British Columbia. Adjusted profit, which excludes that benefit and other items, rose to $923 million from $372 million. Revenue increased 33% to $4.52 billion.
Teck’s copper division generated $1.6 billion in gross profit before depreciation and amortization, more than double the $740 million recorded a year earlier. Copper prices averaged a record $6.40 per lb. during the quarter.
Copper production increased 11% to 115,700 tonnes, with gains across all operations except Carmen de Andacollo in central Chile, where flooding disrupted output.
Quebrada Blanca in northern Chile produced 47,200 tonnes, up from a year earlier but below the preceding quarter’s 55,800 tonnes as severe weather affected operations.
Copper net cash unit costs fell to US$1.77 per lb. from US$2 a year earlier. Lower smelter charges, stronger silver and molybdenum credits and lower unit costs helped drive the improvement, Adams said.
The costs were well below the US$2.27 per lb. consensus estimate, while adjusted earnings before interest, taxes, depreciation and amortization of $2.31 billion exceeded the $2.07-billion consensus, he said.
Teck cut its annual copper net cash cost forecast to US$1.80–US$2 per lb. from US$1.85–US$2.20, while maintaining copper production guidance of 455,000–530,000 tonnes.
Operating cash flow reached $1.6 billion. Teck ended September with $6.7 billion in cash and total liquidity of $10.9 billion.
The improved performance comes as about 1,200 United Steelworkers members at Highland Valley Copper in British Columbia began a strike on Oct. 24.
The operation, Canada’s largest copper mine, is undergoing an extension intended to keep it operating until 2046.
Operations continue at reduced capacity, with the production impact dependent on the duration of the strike, Teck said.
Merger outlook
Teck and Anglo American expect to complete their proposed combination within the previously announced window ending in March 2027, subject to outstanding approvals and other closing conditions.
China’s antitrust regulator has sought commitments from Anglo American to maintain copper concentrate supplies to the country as a condition of approval, Reuters reported this month, citing three sources.
The merger is expected to generate US$800 million in recurring annual pre-tax synergies by the end of the fourth year after completion, with about 80% achieved on an annualized basis by the end of the second year, the companies said in a merger update.
Coordinating the neighbouring Collahuasi and Quebrada Blanca operations in Chile could generate an additional US$1.4 billion in average annual underlying EBITDA from 2030 through 2049, the companies estimate. That figure covers 100% of both operations, including partners’ interests.
“These results further demonstrate the strong foundation from which we are advancing toward completion of the planned merger with Anglo American,” Price said.