Oct 22 (Reuters) - Teck Resources ( TECK ) beat
third-quarter profit estimates on Wednesday, lifted by higher
copper and zinc prices, even as production at its Quebrada
Blanca copper mine in Chile remained constrained by tailings
work.
U.S.-listed shares of Teck rose 2% in pre-market trading.
The results come as Teck advances a merger with Anglo
American, announced in September, to form Anglo Teck, a
top-five global copper producer headquartered in Canada.
The deal aims to unlock synergies between Teck's Quebrada
Blanca mine and Anglo's nearby Collahuasi project in Chile and
deliver roughly $800 million in annual savings.
The Canadian miner reported adjusted earnings of 76 Canadian
cents per share for the quarter ended September 30, above
analysts' average estimate of 49 Canadian cents, according to
LSEG data.
Teck said third-quarter profit rose on stronger base
metals prices, higher sales from the Red Dog zinc mine in
Alaska, lower smelter processing charges and improved
performance at its Trail Operations in British Columbia.
Quarterly realized copper prices rose nearly 6% to $4.45 per
pound while zinc prices increased 3.2% to $1.29 per pound, from
last year.
However, copper production dropped 9.1% to 104,100 tonnes in
the third quarter, as output at the Quebrada Blanca mine fell
24.6% to 39,600 tonnes, constrained by ongoing work to raise the
tailings dam crest.
The company said the development of the tailings management
facility at the site remains the main constraint on production,
though improvements in sand drainage and dam construction are
underway.
Teck maintained its 2025 copper output outlook for the
Quebrada Blanca mine at 170,000-190,000 tonnes at net cash costs
of $2.65-$3.00 per pound.