10:19 AM EDT, 09/03/2025 (MT Newswires) -- (Share price update in first paragraph and adding National Bank commentary from the sixth paragraph)

Teck Resources shares were higher on the TSX, Wednesday, after the company announced an operations review and a detailed QB action plan.

Teck said the review, launched in August, is aimed at improving performance by boosting operating practices and ensuring future business plans are achievable.

The company said it has appointed an industry veteran as special adviser to the chief executive to accelerate QB tailings management facility development and support operational performance. It also said it will defer major growth projects until QB achieves steady-state operations and ramp-up targets.

The review includes detailed assessments of operating plans, input from third-party experts, and execution tracking, the company said. Teck expects to complete the review by October 2025 and will update guidance no later than its Q3 results.

Teck has also announced the retirement of Shehzad Bharmal, Executive Vice President and Chief Operating Officer after 33 years with the company.

National Bank said its Outperform rating is based on Teck's "compelling" valuation, support from the ongoing share buyback and relative balance sheet strength. But, National added, as the company aims to shift its focus towards advancing its copper growth pipeline, the bank sees a reduction in FCF available to support significant shareholder returns at current copper prices, even as "a deferral of sanctioning additional growth projects alleviates these concerns somewhat".

"We continue to expect the market to discount Teck's copper growth portfolio (QB Debottlenecking, HVC Extension, Zafranel & San Nicolas) given the company's poor operational track record to date at QB2; however, these initiatives are smaller scale/less complex projects, and we believe Teck will improve on its project execution while maintaining the option to build when market conditions are favourable," National Bank said.

National Bank said its target price of $62.50 is based on a multiple of 1.10x NAV (50%) plus 7.0x EV/2026 CF (50%), adding more clarity on an improved ramp-up will be needed through the second half of 2025 to both provide improved certainty in 2026 guidance and support multiple expansion.

Price: 47.35, Change: +1.09, Percent Change: +2.36