Teck Resources reported first-quarter adjusted earnings that exceeded analyst forecasts, reflecting stronger copper prices and record sales volumes. The Canadian miner said the rise in copper prices and a substantial increase in shipments underpinned its quarterly profit performance.
The company noted that average copper prices for the quarter ended March 31 were $5.83 per pound, compared with $4.24 per pound a year earlier. Average copper prices climbed about 36.7% in the first quarter from a year earlier and reached record levels in late January, supported by tight supply, low inventories and robust demand.
Production and sales both expanded sharply. Copper production rose 32% to 140,000 tons, while copper sales advanced 46% to 155,000 tons. At the Quebrada Blanca mine in Chile, output increased 31.2% to 55,500 tons, reflecting a ramp-up in operations at that site.
On a per-share basis, Teck reported adjusted earnings of C$1.75 for the quarter. That result beat the average analyst estimate of C$1.15 per share compiled by LSEG.
The company also flagged an operational headwind tied to the ongoing conflict in the Middle East. Teck said it expects freight and explosives costs to rise through the second quarter, with a particular impact on its Chilean operations, which rely on imported diesel. Management identified these cost increases as a near-term pressure on operating expenses.
Looking beyond the quarter, Teck and other copper producers are positioned to benefit from long-term demand projections. The company highlighted an expected 50% increase in global copper demand by 2040, driven in part by higher power consumption from data centers to support artificial intelligence workloads and defense-related requirements. Teck said a sustained need for copper-intensive power, grid and electronics infrastructure would underpin stronger long-term prices and volumes.
On the corporate front, Teck remains on course with a proposed merger that would combine it with Anglo American. Shareholders of both companies approved the transaction in December, supporting a $53 billion deal that would create a major copper producer if it receives regulatory clearance. Anglo American indicated last month that it expects final regulatory approval to arrive between September this year and March 2027.
The company did not provide updated guidance in the release, but the quarterly results underline how higher realized copper prices and operational ramps at key assets contributed to a stronger-than-expected earnings outcome for the period.