Copper Price Surge Drives Teck Q1 Earnings Above Estimates
Teck Resources TECK-B-T on Thursday beat analysts’ estimates for first-quarter profit, aided by an increase in copper prices and record sales, while the company’s proposed merger with Anglo American NGLOY remained on track.
The Vancouver-based miner said it expects the Middle East conflict to push up freight and explosives costs through the second quarter, particularly at its Chilean operations which rely on imported diesel.
Teck and its peers are set to benefit from an expected 50-per-cent surge in global copper demand by 2040 on increasing power consumption by data centres to meet artificial intelligence and defence growth.
A sustained need for copper-intensive power, grid and electronics infrastructure would support stronger long-term prices and volumes.
Average copper prices surged about 36.7 per cent in the first quarter from a year earlier and hit all-time highs late in January on supply constraints, low inventory and strong demand.
Teck said its copper prices averaged US$5.83 per pound in the quarter ended March 31, up from US$4.24 a year earlier.
Copper production jumped 32 per cent to 140,000 tons.
Production at the Quebrada Blanca mine in Chile increased 31.2 per cent to 55,500 tons amid a ramp-up in operations.
Copper sales jumped 46 per cent to 155,000 tons.
The miner reported adjusted earnings of $1.75 per share for the quarter. Analysts on an average expected $1.15 per share, according to data compiled by LSEG.
Teck and Anglo shareholders voted in December for a US$53-billion merger, paving the way for the creation of a copper heavyweight if regulators approve.
London-listed Anglo said last month that it expects to get final regulatory approval for the merger between September this year and March, 2027.
This article was first reported by Reuters
