The following is a summary of the Teck Resources Ltd (TECK) Q4 2023 Earnings Call Transcript:
Financial Performance:
Teck Resources reported a Q4 adjusted EBITDA of $1.7 billion and $6.4 million for the year, attributed to robust prices for steelmaking coal and copper.
The company returned a total of $765 million to shareholders, paying $550 million in dividends and completing $250 million in share buybacks.
Teck repaid $294 million of the QB2 project finance facility and acquired authorization for up to a $500 million share buyback.
The company is in a strong financial position with $7.9 billion in liquidity, including $2.5 billion in cash.
Gross profit before depreciation and amortization in their steelmaking coal business increased to $1.35 billion, primarily due to higher sales volumes and offset by lower coal prices.
Inflationary pressures impacted the 2023 unit cost and are expected to persist into 2024, prompting the company to factor these influences into their sustaining capital expenditure and 2024 unit cost guidance.
Business Progress:
Teck had a transformative year in 2023 with higher copper production and sales than the previous year, driven by the addition of QB operations.
The company completed the construction of offshore facilities at QB2's port and expects the plant's ramp-up to be completed by the end of the second quarter.
Teck achieved a substantial environmental and social performance merit, earning them a Copper Mark for QB and Carmen de Andacollo operations, and a Zinc Mark for Red Dog.
The company plans a substantial decrease in capital expenditures in 2024, with a reduction in committed growth capital and sees an expected reduction in total capital expenditures of approximately $1.2 billion in 2024 due to a significant step-down in QB2 development capital as the project nears completion.
Teck Resources anticipates $9.6 billion in cash proceeds from the sale of the steelmaking coal business, intended to reinforce the balance sheet, reduce gross debt, fund near-term copper growth opportunities and return a significant amount to shareholders, among others.
Significant work continues to advance each of the company's key projects, and the company is making progress across all copper growth options.
More details: Teck Resources IR
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