Teck Resources Limited

Teck said second-quarter 2026 adjusted EBITDA tripled to $2.2 billion, cash flow from operations was $1.7 billion, and net cash increased by $756 million in the quarter to $1.2 billion. Adjusted EBITDA margin hit a record 61%, up from 36% in the second quarter of 2025; copper segment adjusted EBITDA margin was 70% versus 45% a year ago, and zinc segment adjusted EBITDA margin was 38% versus 25%. Copper production increased almost 25% year over year, QB copper production rose to 55.8 thousand tons from 52.7 thousand tons, copper net cash unit costs improved from $2.02/lb to $1.64/lb, and zinc net cash unit costs improved from 49¢/lb to 35¢/lb. Gross profit before D&A more than doubled in copper to $1.8 billion and increased 122% in zinc to $353 million. Guidance was unchanged: copper production of 455 thousand to 530 thousand tons for 2026, zinc-in-concentrate production of 410 thousand to 460 thousand tonnes, refined zinc production of 190 thousand to 230 thousand tonnes, capitalized stripping of $450 million to $550 million for the copper business, and HVC mine life extension capex of $900 million to $1.2 billion in 2026 and $2.1 billion to $2.4 billion over the life of the project. Management also said Rock Bench 6, if approved, would cost about $100 million this year.

Jonathan Price struck an upbeat but execution-focused tone, calling the quarter another period of strong operational and financial performance. He emphasized better stability across the portfolio, especially at QB, where he said the company is seeing the third consecutive quarter of stable operations and no TMF-related downtime in the last three quarters. He also framed the Anglo American deal and integration planning as a major near-term priority, while saying the company remains on track for the originally expected 12 to 18 month completion window after the September 2025 announcement.

Crystal Prystai focused on the earnings and cash-generation strength, pointing to adjusted EBITDA of $2.2 billion, cash from operations of $1.7 billion, and net cash of $1.2 billion after a $756 million quarterly increase. She highlighted record margins, with copper gross profit before D&A at $1.8 billion and zinc gross profit before D&A at $353 million, and said lower operating costs, favorable commodity prices, and byproduct credits more than offset higher oil prices and higher royalties. She also noted that liquidity rose to $10.3 billion as of June 30, including $6.1 billion of cash, while the company continued debt reduction through semiannual QB project finance repayments.

Analysts pressed on whether accelerating QB Rock Bench 6 and related TMF work would lift throughput; management said it would not directly change throughput, but would accelerate and de-risk the operating setup. On the merger, management said China’s SAMR review is proceeding in the normal course, with no remedy requests so far, and that closing should follow within a couple of weeks of approval. Questions also focused on QB recovery improvements, Trail’s second-half profitability, and the new Trail strategic metals investment; management said QB recovery work is centered on better drilling data, sensors, process control and reagent optimization, while Trail’s second half should be moderated by a third-quarter production lift and fourth-quarter planned shutdowns.