Mining company Teck Resources ($TSE:TECK.A) promised the start of a “new era” with its third quarter financial results, and that era is off to a rocky start judging by the company’s print. Shares of Teck fell 5% after the company’s results were made public.
There were certainly high points for the Teck Resources earnings report. Teck pulled a record amount of copper out of the ground, bringing in 114,500 tons overall. Just under half of that, 52,500 tons, came from the Quebrada Blanca mine. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at C$986 million and adjusted profit worked out to C$0.61 per share.
Teck rewarded shareholders. With buybacks and dividends, Teck put C$720 million in shareholders’ pockets during the third quarter. The shareholder returns have nearly doubled over the course of the full year, hitting C$1.3 billion between January and October. Teck also pared down its debt load, paying off $1.5 billion in short-term loans and a bond tender offer.
Not All Good News at Teck Resources
Teck did have some downside to report, which is likely why the stock is declining. Teck reported a C$748 million loss from continuing operations, due mostly to the one-time charge generated from its Trail operations. The company also forecast slightly lower copper production overall.
Teck Resources said that it will likely mine between 420,000 and 455,000 tons of copper for all of 2024, which is down from an earlier projection of between 435,000 and 500,000. Zinc and molybdenum production targets were also pared back, and zinc net cash unit costs were also pulled down.
Is Teck Resources a Good Stock to Buy?
Turning to Wall Street, TSE:TECK.A currently has no analysts offering coverage of it. Therefore, we turn instead to the last three months of trading. Trading has been somewhat volatile in that stretch, but over a comparatively tight range. The difference between high and low for the last three months is only about C$9. Overall, Teck stock gained 3.26% during that three-month interval.
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