Teck Resources exceeds profit forecasts on higher copper production and prices
Teck Resources, aided by higher copper prices and increased production, beat Wall Street expectations for the second-quarter profit on Thursday.
In?premarket trade, shares of the 'company' rose by nearly 6%.
Benchmark - Three-Month Copper Prices climbed 41.5% from a quarter earlier due to concerns about tight supplies in China and high demand.
Prices of copper were also supported by the expectation of U.S. tariffs against imports of copper.
The global copper demand is expected to increase by 50% by 2040, as utilities rush to construct?facilities? to meet the surging power consumption of data centers and to support the energy transition.
Teck Resources (which is in the 'process of merging' with Anglo American) reported that realized copper prices in the second quarter averaged $6.05 a pound, up from $4.32 a pound one year ago. Production increased by nearly 24.6%, to 135,900 tonnes.
The production at the?mine Quebrada Blanca in Chile has increased from 52,700 to 55,800 tonnes.
According to data compiled LSEG, the miner's adjusted earnings for the quarter?ended _June 30 were C$1.93 per a share. This was above analysts' estimates of C$1.25.
Separately this month, the Canadian Government?announced that it could invest up to C$400,000,000 ($285,000,000) in order to help expand Teck's Trail Operations facility in British Columbia.
Freeport-McMoRan, a U.S. company, is expected to release its results on Thursday. (1 Canadian dollar = 1.4058 US dollars) (Reporting and editing by Katha Kalluvila in Bengaluru)
(source: Reuters)
