08:20 AM EDT, 04/25/2024 (MT Newswires) -- National Bank noted that Teck Resources (TECK-B.TO, TECK-A.TO) before market open reported Q1 2024 ebitda headline results in line with consensus, but with EPS below National's estimates owing to the bank's treatment of interest in advances from Sumitomo for QB2 -- "which otherwise would have been in line".

National noted that despite lower than expected production and revenue, adjusted ebitda was above both the bank's and consensus forecasts due to lower than expected operating costs. Importantly, the bank said, Teck kept its production and cost guidance unchanged and expects QB2 production to be higher in the remainder of the year. It noted the company still expects the previously announced sale of 77% of its coal business to Glencore to be completed in Q3 2024 -- in line with National estimates.

National said with Q1 financials largely in line with consensus and no change to guidance, shares are expected to trade in line with peers. It noted Q1 2024 financials incorporated the 20% stake sale in the coal business to Nippon, as well as operating costs from QB2 and that the company highlighted progress updates at QB2 and outlined increasing production in the coming quarters as the operation continues to ramp up towards nameplate capacity. It also noted the company provided an update on the recent share buyback and continues to expect scheduled closing of the coal sale to Glencore by Q3 2024.

National added today's proposed BHP offer for Anglo American "highlights the appetite for major mining companies to add copper to their portfolios" and following sale of the coal business, the bank believes Teck's portfolio of copper assets, with fully funded near-term growth in politically stable jurisdictions "remains an attractive target."