Teck Resources beats profit estimates on strong copper production, prices
Teck Resources, a copper producer and producer of higher-quality products, beat Wall Street's expectations for the second quarter profit on Thursday.
In afternoon trading, shares of the company rose by 4%.
The benchmark three-month price of copper rose 41.5% from the previous quarter, mainly due to concerns about tight supplies and high demand in China.
The global copper demand is expected jump by 50% by 2040, as utilities rush to build new facilities to meet the?increased power consumption of data centers, energy transition and increased defense spending.
Teck Resources is in the process of merging Anglo American for $53 billion. The company said that realized copper prices in the second quarter?averaged at $6.05 per kilogram, up from $4.32 a pound one year ago. Production increased by nearly 24.6%, to?135,900 tonnes.
Teck Resources stated that the merger approval process with Chinese regulators was progressing as expected and that no requests for remedies had been received from Chinese authorities.
Teck also said that it would continue to evaluate various feedstocks for the germanium-processing industry as it works to increase its capabilities.
Teck, North America’s largest?germanium manufacturer, announced last year that it was considering ways to increase the production of the metal. It was also in talks with the Canadian and U.S. government regarding possible funding support.
Germanium is used in semiconductor manufacturing, infrared technologies, fiber-optic cable and solar cells.
The production at the Quebrada Blanca Mine in Chile has increased from 52,700 tons a year ago to 55,800?tons.
According to data compiled by LSEG, the miner reported adjusted earnings per share of?C$1.93, above analysts' estimates of C$1.25, for the quarter ending June 30.
Separately, this month the Canadian government announced that it could invest up to C$400,000,000 ($285,000,000) in equity to expand Teck's Trail Operations Facility in British Columbia. ($1 = 1.4058 Canadian dollars)
(source: Reuters)
