10:42 AM EST, 01/21/2025 (MT Newswires) -- (Adds National Bank commentary on the earlier news)

Teck Resources (TECK-B.TO, TECK-A.TO) on Tuesday reported 2024 copper production of 446,000 tonnes, up 50% from the previous year.

Fourth-quarter copper production rose by almost a fifth to 122,100 tonnes.

Teck attributed the increase to the ramp-up of the Quebrada Blanca operations, which contributed 60,700 tonnes to fourth-quarter 2024 output.

Zinc in concentrate production for the year came in at 615,900 tonnes, down 4% primarily due to a higher proportion of copper-only ore relative to copper-zinc ore at Antamina.

Refined zinc production was 256,000 tonnes, decreasing 4% as a result of a localized fire in the electrolytic zinc plant at Trail on September 2024.

In 2025, Teck expects to produce 490,000 to 565,000 tonnes of copper and 525,000 to 575,000 tonnes of zinc.

The company forecast sustaining capital and capitalized stripping expenditures to be between $1.0 billion and $1.2 billion in 2025. Sustaining capex is expected to be between $750 million and $845 million, of which $600 million to $670 million relates to the copper business and $150 million to $175 million relates to the zinc business.

Meanwhile, Teck has kept its Sector Perform rating and $77.50 price target at National Bank of Canada following the news.

The bank said the rating was based on Teck's fair valuation as the company continues to complete its share buyback with proceeds from the sale of its coal business.

"As the company shifts its focus towards advancing its development pipeline, we see a reduction in [free cash flow] available to support significant shareholder returns at current copper prices," the bank said. "Teck is likely to remain a core holding in the copper sector owing to its diverse operating base, strong balance sheet and project pipeline; however, we see more compelling near-term opportunities in our coverage at the present time."

The target price was based on a multiple of 1.30x NAV (50%) + 8.0x EV/2025 CF (25%) + 8.0x EV/2026 CF (25%).

Teck's B stock was down near 1% at last look on the TSX.

Price: 62.79, Change: -0.88, Percent Change: -1.38