The following is a summary of the Teck Resources Limited (TECK) Q1 2024 Earnings Call Transcript:
Financial Performance:
Teck reported Q1 adjusted EBITDA of $1.7 billion compared to $2 billion a year ago due to lower copper and zinc prices, higher unit costs in steelmaking coal and at operations.
The company returned $80 million in share buybacks and paid $65 million in quarterly base dividends.
Gross profit before depreciation and amortization decreased by 27% primarily due to significantly lower zinc prices and lower contracted zinc premiums on refined zinc trail operations.
Teck Resources generated a gross profit of CAD 1.4 billion from their coal business in Q1. However, the QB2 operations registered a loss from an EBITDA perspective due to operational provisions.
Business Progress:
All major construction at QB has been completed by Teck, marking the first shipments of concentrate.
Teck finalized the minority sale of its steelmaking coal business to Nippon Steel Corporation and POSCO for US$1.3 billion in cash, with full sale to Glencore expected to close by Q3 2024.
The company launched the North Pacific Green Coronal Consortium to decarbonize the commodities value chain between North America and Asia.
Teck continues to invest in its copper growth portfolio with plans to advance near-term projects for potential sanctioning in 2025, following its capital allocation framework.
Teck Resources remains committed to delivering copper growth, backed by favourable long-term market fundamentals, and will use the proceeds from the Glencore transaction mainly to reduce debt and fund near-term growth projects.
The company is undertaking a full review of the QB2 project to guide learning and future growth, expected to be completed in the coming months.
More details: Teck Resources IR
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