Teck Resources Delivers Strong Q1 2025 Results Amid Commodity Surge and Operational Hurdles

Vancouver, BC – Teck Resources Limited (TSX: TECK) has announced robust unaudited first-quarter 2025 results, showcasing a dramatic turnaround in profitability driven by soaring commodity prices and increased sales volumes. The Canadian mining giant reported an Adjusted EBITDA of $927 million, a 126% year-over-year jump, while reversing a prior-year loss to post a profit of $303 million attributable to shareholders. However, operational challenges at its flagship Quebrada Blanca (QB) mine in Chile underscored the need for cautious optimism.

Ask Aime: What factors contributed to Teck Resources' significant increase in Adjusted EBITDA and profit in Q1 2025?

Financial Highlights: A Turnaround Story

Teck’s Q1 results marked a stark contrast to 2024, when weak commodity prices and operational setbacks weighed on performance. Key metrics include:
- Revenue: Soared to $2.29 billion, up from $1.62 billion in Q1 2024, fueled by a 90% surge in copper gross profit and a 79% jump in zinc gross profit.
- Profitability: Profit from continuing operations before taxes surged to $450 million, compared to a $235 million loss in the prior year.
- Shareholder Returns: The company returned $505 million to shareholders via buybacks, reducing its $3.25 billion authorized program to $1.5 billion remaining.

Copper: Growth Amid Operational Challenges

Copper production rose 7% year-over-year to 106,100 tonnes, but Teck’s QB mine faced disruptions, including an 18-day maintenance shutdown and a nationwide Chilean power outage, which hampered output. Sales volumes, however, increased 11% to 106,200 tonnes, benefiting from higher prices. Despite these hurdles, QB’s completion testing was finalized, meeting debt covenant requirements.

The QB ramp-up is now expected to deliver copper production toward the lower end of its 2025 guidance range (230,000–270,000 tonnes), with net cash costs climbing to the upper end of its $1.80–$2.15/lb guidance. Management attributed delays to tailings management issues, including sand deposition, which will require extended maintenance in Q2 and Q3.

Ask Aime: What's Teck's QB's future production plan?

Zinc: A Shining Performer

Zinc outperformed expectations, with sales volumes hitting 90,800 tonnes at Teck’s Red Dog mine—16% higher than guidance—while prices rose 16% year-over-year. Zinc’s gross profit before depreciation and amortization jumped 79% to $225 million, reinforcing its role as a critical profit driver.

Strategic Focus and Risks

Teck emphasized disciplined capital allocation, prioritizing projects such as the Highland Valley Copper Mine Life Extension and advancing its $2.5 billion QB expansion. The company also highlighted its strong liquidity of $10.0 billion, including $5.8 billion in cash, as a buffer against commodity volatility and operational risks.

Risks remain, however. QB’s ongoing tailings management issues could delay production and inflate costs, while global economic uncertainty clouds commodity demand. Teck’s High-Potential Incident (HPI) Frequency rate of 0.05—a measure of workplace safety—reflects its commitment to operational stability, but execution at QB will be key to realizing growth.

Conclusion: A Resilient Start, But Challenges Loom

Teck’s Q1 results underscore its ability to capitalize on rising commodity prices and operational resilience. The $927 million Adjusted EBITDA and $0.74 per share profit mark a stark rebound from 2024’s struggles, while the $10 billion liquidity position ensures financial flexibility.

However, QB’s delays highlight the fine line between growth and risk. If the mine’s production settles at the lower end of its 2025 guidance (230,000 tonnes), copper output could fall short of expectations, impacting margins. Meanwhile, zinc’s strong performance and disciplined shareholder returns provide a stabilizing anchor.

Investors should monitor copper prices, which remain Teck’s largest revenue driver, and QB’s operational progress. With a net cash position of $764 million and a $1.5 billion remaining buyback capacity, Teck appears positioned to navigate near-term challenges while pursuing long-term value creation. For now, the Q1 results are a cautiously optimistic signal—but the second half of 2025 will test whether Teck can sustain this momentum.