Teck Resources Surpasses Profit Expectations Amid Price Surge

Teck Resources exceeded third-quarter profit expectations due to a rise in copper and zinc prices, despite reduced production at its Quebrada Blanca copper mine. The Canadian miner's U.S.-listed shares increased 2% pre-market. They aim to merge with Anglo American to enhance synergies and achieve significant annual savings.

Teck Resources has outperformed third-quarter profit forecasts, buoyed by increased copper and zinc prices, yet faced production limitations at its Quebrada Blanca copper mine in Chile due to tailings management work. In response, the company experienced a 2% rise in its U.S.-listed shares during pre-market trading.

The successful results precede the company's proposed merger with Anglo American, announced earlier in September. The collaboration is expected to culminate in the formation of Anglo Teck, a major global copper producer based in Canada. The merger aims to synchronize operations at Teck's Quebrada Blanca and Anglo's Collahuasi projects in Chile, with an estimated $800 million in annual savings.

For the quarter concluded on September 30, Teck reported adjusted earnings of 76 Canadian cents per share, exceeding analysts' anticipated 49 Canadian cents, according to LSEG data. Although production at Quebrada Blanca declined, Teck capitalized on robust prices in base metals and favorable operational conditions at other sites to boost its financial performance.

(With inputs from agencies.)