Teck Earnings: Transformation to Copper-Focused Base Metals Miner Complete

After no-moat Teck’s sale of its remaining 77% stake in its metallurgical coal business for USD 7.3 billion (CAD 10 billion) to no-moat Glencore earlier in July 2024, it is now a base metals business focused on copper. Copper accounts for around 85% of midcycle EBITDA of around CAD 4.2 billion in 2028, with zinc accounting for the remainder. In the interim, though, 2024 copper guidance is reduced, but full-year guidance is otherwise maintained. This is due to Teck encountering a geotechnical issue along with various, but likely temporary, problems in ramping up production to around 180,000 metric tons--Teck’s share--at its 60%-owned Quebrada Blanca 2 mine, or QB2, in Chile.