Teck Resources beats profit estimates on strong copper production, prices

Production at the Quebrada Blanca mine in Chile increased to 55,800 tons, from 52,700 tons a year earlier.

The miner reported adjusted earnings of C$1.93 per share for the quarter ended June 30, above analysts' average estimate of C$1.25, according to data compiled by LSEG.

Separately, the Canadian government this month announced a potential equity investment of up to C$400 million ($285 million) to support an expansion of Teck's Trail Operations facility in British Columbia.

($1 = 1.4058 Canadian dollars)

Benchmark three-month copper CMCU3 prices climbed 41.5% in the quarter from a year earlier, powered by concerns over tight supplies and strong demand in China.

Global copper demand is expected to jump 50% by 2040 as utilities rush to build facilities to cater to surging power consumption by data centers, the energy transition and higher defense spending.

Teck Resources, which is in the process of merging with Anglo American AAL.L in a $53 billion deal, said realized copper prices averaged $6.05 per pound in the second quarter, up from $4.32 per pound a year earlier. Production rose nearly 24.6% to 135,900 tons.

On a post-earnings call, Teck Resources said the company's merger approval process with Chinese regulators was progressing normally and that it had not received any requests for remedies from authorities in China.

Separately, Teck said it was continuing to evaluate a broad range of potential feedstock sources for germanium processing as the miner works to expand its capabilities in the critical mineral.