Teck Resources Ltd (TSX:TECK.B) reported rising revenues driven by higher copper and zinc prices and a profit for the third quarter, compared to a loss for the same period last year.
The company’s profit was C$281 million or C$0.57 per share, compared to a loss of C$748 million or loss per share of C$1.45 in Q3 2024.
On an adjusted basis, Teck reported earnings of C$0.76 per diluted share, rising from $0.60 per share a year earlier.
Adjusted EBITDA reached C$1.17 billion, an increase of C$185 million from the previous year and above the consensus C$1.06 billion.
Teck said the revenue growth was primarily driven by higher copper and zinc prices and increased sales volumes, with copper averaging US$4.44 per pound during the quarter.
The report comes after Teck on September 9 announced an agreement to merge with UK-based Anglo American PLC (LSE:AAL) to form the Anglo Teck Group.
Jonathan Price, Teck CEO, said the company’s focus moving forward is on the disciplined execution and completion of the merger.
"The merger of equals between Teck and Anglo American announced this quarter is a unique opportunity to create a global leader in critical minerals and a top five copper producer," Price said.
"The combination will unlock significant value for shareholders through integration of Quebrada Blanca and Collahuasi and meaningful corporate synergies, offering a compelling high-quality, copper-focused investment opportunity.”
Merger considerations
Jefferies analysts repeated their ‘Buy’ rating on Teck following the report, noting the company’s better-than-expected financial results and that the Anglo Teck merger is on track, with shareholder votes scheduled for December 9.
“If there is no interloper, we would expect the vote to pass,” the analysts wrote.
Among potential risks facing the merger is the potential that it could be blocked under Canada's Investment Act. This legislation allows the Canadian government to review and potentially block foreign investments that do not provide a "net benefit" to Canada, especially in key sectors like resources and critical minerals.
Canada's Industry Minister Mélanie Joly has said the federal government will conduct a detailed review into the merger.
Despite this risk, Jefferies remains positive that the merger will be completed. “Our base case is the merger gets done, but it will be an uphill battle to the finish line,” the firm.
The analysts also noted that Q3 was a tough quarter for Teck’s Quebrada Blanca (QB) mine in Chile, as expected.
QB’s copper production declined to 39,600 tonnes in Q3 2025, down from over 52,000 tonnes in previous quarters, as ongoing issues with the tailings management facility continued to constrain output.
Teck expects these challenges to be resolved by 2027, after which production should be able to ramp back up to full capacity, Jefferies noted.
“The guidance does seem to be conservative, but the track record of development of QB has been very disappointing, so we are reluctant to give full benefit of the doubt,” they wrote.
“If the merger happens, it is critical that this asset operates at design capacity for the Anglo Teck investment case to be as compelling as we believe it should be.”
Shares of Teck traded 0.4% lower at about C$43 following the release of the Q3 report.