Teck Resources Q2 2025: Unpacking Contradictions in Tailings Management, CapEx, and Mine Life Extension

Tailings facility constraints and operational impact, capital expenditure allocation and project costs, capital expenditure for Highland Valley mine life extension are the key contradictions discussed in Teck Resources Limited's latest 2025Q2 earnings call.



Strong Financial Performance and Shareholder Returns:
- Teck Resources reported adjusted EBITDA of $722 million for the second quarter of 2025, up 3% compared to the same period last year.
- The company returned $1.1 billion to shareholders through dividends and share buybacks year-to-date.
- The strong financial performance was driven by increased byproduct revenues, reduced corporate overhead costs, and lower smelter processing charges, despite lower copper and zinc prices.

QB Operations and Challenges:
- QB's outlook for annual production was revised to 210,000 to 230,000 tonnes due to ongoing TMF development work impacting mill online time.
- The company has spent cash to address TMF development, with additional costs expected in the second half of the year.
- The challenges are attributed to the complexities of ramp-up activities and ensuring consistent mill run time.

Copper Production and Growth Strategy:
- Teck's total copper production guidance was revised downward, with a new range of 470,000 to 525,000 tonnes, reflecting challenges at QB.
- The board sanctioned the Highland Valley Copper Mine Life Extension project, with an initial capital estimate of CAD 2.1 billion to CAD 2.4 billion.
- The sanction of this project is foundational to the company's strategy to double copper production by the end of the decade.

Zinc Segment Performance:
- The zinc segment reported a 137% increase in gross profit before depreciation and amortization compared to the same period last year.
- Gross profit margin improved to 28%, driven by increased byproduct revenues and lower operating costs due to smelter market conditions.
- The strong performance reflects strategic adjustments to improve profitability and cash flow generation in challenging market conditions.