Q2 2024 Teck Resources Ltd Earnings Call Transcript
Key Points
- Teck Resources Ltd (TECK) successfully closed the sale of its steelmaking coal business, receiving $7.3 billion in cash proceeds, positioning the company to focus on energy transition metals.
- The company reported a 13% increase in adjusted EBITDA to $1.7 billion, driven by record quarterly copper production.
- Teck Resources Ltd (TECK) achieved significant milestones in its copper growth portfolio, including advancements in the permitting processes for the Highland Valley Mine Life Extension and San Nicolás.
- The company announced the largest cash return to shareholders in its history, with approximately $3.5 billion in total share buybacks and dividends.
- Teck Resources Ltd (TECK) is on track to become a top 10 global copper producer, with plans to double copper production and further increase it by 30% starting as early as 2028.
- Teck Resources Ltd (TECK) revised its full-year copper and molybdenum production guidance downward due to lower than planned ore grades and mine access issues.
- The company experienced higher operating costs, particularly in the QB operations, due to alternative shipping arrangements and ramp-up of the molybdenum plant.
- There were recurring failures with a pulley in a key overland conveyor at QB, although these have largely been mitigated.
- The company's net cash unit cost guidance for QB was revised upward, reflecting increased costs.
- Teck Resources Ltd (TECK) faced challenges with geotechnical issues affecting access to higher-grade areas, impacting production guidance for the second half of the year.
Ladies and gentlemen, thank you for standing by. Welcome to Teck's Q2 2024 earnings release and investors conference call. (Operator Instructions) This conference call is being recorded on Wednesday, July 24, 2024. I would now like to turn the conference over to Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analysis. Please go ahead.
Thanks, Kaylene. Good morning, everyone, and thank you for joining us for Teck's Second Quarter 2024 Conference Call. Please note, today's call contains forward-looking statements. Various risks and uncertainties may cause actual results to vary.
Teck does not assume the response -- the obligation, excuse me, to update any forward-looking statements, please refer to slide 2 for the assumptions underlying forward-looking statements. In addition, we will reference various non-GAAP measures throughout this call. Explanations and reconciliations regarding these measures can be found in our MD
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