Teck Resources Ltd Class B press release
Teck Announces Completion of Comprehensive Operational Review and Updated Outlook
NYSE - New York Stock Exchange · Copper · Molybdenum · Zinc · Lead · Canada
VANCOUVER, British Columbia, Oct. 08, 2025 (GLOBE NEWSWIRE) -- Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (“Teck”) today provided an update on the progress of the Quebrada Blanca (QB) Action Plan and provided an updated operational outlook following the completion of the Comprehensive Operations Review. In addition, Teck provided third quarter 2025 production and sales volumes and positive settlement pricing adjustments.
Our Comprehensive Operations Review, launched in August, focused on improving performance through a detailed QB Action Plan, identifying opportunities to enhance operating practices and setting out plans that are reasonable and achievable.
In parallel, through the third quarter, Teck completed a detailed assessment of all operating plans, with review and input from third-party technical experts, independent advisors, and oversight by the Safety, Operations and Projects Committee of our Board of Directors. This work focused on redefining ranges of outcomes for key inputs and value drivers and the reassessment and quantification of risks to establish production and cost ranges for each operation based on proven performance, as well as identifying improvement opportunities to preserve and enhance asset value. Specific to QB, updated production ranges capture impacts of the Tailings Management Facility (TMF) to date and the ongoing QB Action Plan, noted below. The completion of this detailed review has resulted in revisions to our previously disclosed annual production guidance for QB and Highland Valley Copper for 2025–2028, Red Dog for 2026–2028, and Trail for 2026. Further, as a result of changes to our production guidance, we have updated our previously disclosed 2025 annual net cash unit cost 1 guidance for QB and our copper segment and provided 2026 annual net cash unit cost 1 guidance for our copper and zinc segments. Further details on our updated guidance are outlined below.
Update on QB Action Plan
Production at QB continues to be constrained by the pace of development of the TMF, requiring downtime in the concentrator to manage the rate of tailings rise. Teck’s priority remains enabling safe, unconstrained production by raising the crest height of the dam. This is being delivered through construction of additional rock benches while continuing to progress efforts to improve sand drainage to support construction of the sand dam.
Ultimately, a sand wedge will be constructed using hydraulically placed sand, which will enable steady-state TMF operation. While sand currently being produced meets design specifications, slow drainage caused by the presence of ultra-fines has delayed progress in development of the sand wedge. As a result, the mechanical construction of rock benches continues to be required, which has led to additional downtime through 2025, particularly in Q3, and is expected to result in incremental downtime in 2026, as reflected in our updated 2026 annual production guidance for QB. It is currently expected that from 2027 onwards, the TMF development should no longer be a constraint on throughput levels that are able to be achieved.
Significant work has been undertaken through 2025 to improve sand drainage times with some improvement realized to date. Further progress is needed to reach design targets, and two key initiatives were advanced in Q3 2025:
Ultra-fines removal: Test work in collaboration with cyclone manufacturers and third-party experts has shown positive results in improving sand drainage through the removal of ultra-fines. As previously disclosed, we are modifying the cyclone facility this quarter to incorporate alternative technologies designed to remove ultra-fine material. Refinement of sand placement techniques: Improvements to paddock design, and sand placement and drying, are also being implemented to enhance drainage efficiency.
To strengthen executive oversight of operational activities and drive operating performance across the business, the Senior Vice Presidents of Operations for Latin America and North America have been reporting directly to the President and CEO since the beginning of September.
Operational Performance and Outlook
Q3 2025 Production and Sales and 2025 Production Guidance
Performance across our operations in Q3 2025 was in line with our expectations in our previously disclosed annual 2025 guidance, with the exception of QB and HVC, as outlined below. Copper prices (LME) remain strong, averaging US$4.44 per pound in the third quarter and closing the quarter at US$4.67 per pound, contributing to $108 million of positive pricing adjustments in Q3 2025.
| | Q3 2025 | Previous Guidance | Revised Guidance | | | | (Units in 000 tonnes) | Production | Sales | 2025 Production | | 2025 Production | | Copper | | | | | | | Quebrada Blanca | 39.6 | 43.9 | 210 – 230 | | 170 – 190 | | Highland Valley Copper | 28.1 | 31.7 | 135 – 150 | | 120 – 130 | | Antamina (22.5%) | 23.5 | 22.9 | 80 – 90 | | 80 – 90 | | Carmen de Andacollo | 12.9 | 11.8 | 45 – 55 | | 45 – 55 | | | 104.1 | 110.3 | 470 – 525 | | 415 – 465 | | Zinc | | | | | | | Red Dog | 122.0 | 272.8 | 430 – 470 | | 430 – 470 | | Antamina (22.5%) | 28.5 | 32.9 | 95 – 105 | | 95 – 105 | | | 150.5 | 305.7 | 525 – 575 | | 525 – 575 | | Refined zinc | | | | | | | Trail Operations | 52.6 | 51.8 | 190 – 230 | | 190 – 230 |
Quebrada Blanca
The ongoing TMF development work at QB, as well as the completion of the Comprehensive Operational Review have resulted in changes to our previously disclosed guidance. The primary driver of the changes is a slower ramp up as work focuses on ensuring that the TMF is set up to support optimal long-term performance from 2027 onwards. Lower recoveries are now also being assumed, consistent with recent performance.
We have previously demonstrated that the QB operation is capable of operating at design levels when TMF development is not a constraint on production. Despite the changes to guidance, the underlying potential of QB remains intact, and the design, construction and operational capability of the plant is robust. Further, the underlying synergies between QB and the adjacent Collahuasi operation, which we propose to realize through our announced merger of equals combination with Anglo American plc, have the potential to unlock value in a capital efficient manner.
There are several workstreams underway to enhance near-term performance and to ensure the operation can deliver its full potential, which is no longer fully reflected within the current guidance period. This work is focused on four key areas.
Firstly, we continue to believe that design recovery rates of 86– 92% remain achievable, compared to the approximately 82–85% currently assumed in the guidance period. Further geo-metallurgical work is ongoing to support the achievement of this target.
Secondly, we are reviewing opportunities to incorporate higher-grade material in the guidance period through optimization of the revised mining sequence, aligned with the new throughput profile. In any case, we expect grades to increase in years following 2028.
Thirdly, under the revised plan, the 5–10% of throughput optimization previously targeted is no longer fully achieved within the guidance period. However, we remain confident in delivering this improvement over time.
Finally, we intend to review a range of measures to optimize operating costs in light of the revised production profile.
The following contains the key updates relating to operational performance at QB in the third quarter and outlook for the remainder of 2025 and for 2026-2028.
2025 Performance and Outlook
Q3 2025 copper production at QB was 39,600 tonnes and sales volumes were 43,900 tonnes. As outlined above, ongoing TMF development has constrained production through 2025 resulting in additional downtime of the concentrator, particularly in Q3 2025, and a reduction in our previously disclosed annual 2025 copper production guidance. September production was 5,800 tonnes, impacted by 20 days of downtime required to raise the tailings dam crest.
Our annual 2025 copper production guidance for QB has been updated to 170,000 to 190,000 tonnes, compared to our previously disclosed guidance of 210,000 to 230,000 tonnes. Our previously disclosed annual molybdenum production for QB is unchanged at 1,700 to 2,500 tonnes.
The shiploader at QB's port facility is under repair, as previously disclosed, and is expected to return to service in the first quarter of 2026. The outage is not expected to impact production as we have been shipping concentrate through our alternative port arrangements and have maximized shipments to local customers.
QB net cash unit costs 1 for 2025 are now expected to be between US$2.65 – $3.00 per pound, compared to our previously disclosed guidance of US$2.25–$2.45 per pound.
Note:
1. This is a non-GAAP financial measure or ratio. See _“Use of Non-GAAP Financial Measures and Ratios” _for further information.
2026 – 2028 Outlook
Production in 2026 will continue to be constrained by TMF development. As noted above, pending further work in achieving design rates, recoveries have also been reduced throughout the guidance period consistent with levels achieved to date.
On this basis, our annual 2026 copper production guidance for QB has been updated to 200,000 to 235,000 tonnes, compared to our previously disclosed guidance of 280,000 to 310,000 tonnes. Our annual 2026 molybdenum production guidance for QB has been updated to 2,800 to 3,400 tonnes, compared to our previously disclosed guidance of 6,400 to 7,600 tonnes.
While we expect that improvements to sand drainage and dam construction will enable us to transition the TMF to steady-state sand dam construction, if initiatives to improve sand drainage or the mechanical raises of the TMF are not successful in increasing crest height sufficiently to minimize downtime in the concentrator in line with current expectations, production for 2026 and 2027 would be further impacted. Such impacts are not reflected in the annual production guidance in this news release. We expect to have further information on the performance of sand drainage rates in the first quarter of 2026.
QB net cash unit costs 1 for 2026 are expected to be between US$2.25–$2.70 per pound, an improvement from our 2025 QB net cash unit cost 1 guidance, noted above, primarily due to an increase in copper and molybdenum production expected in 2026, and further enhanced by the expected return of the QB shiploader to service early in 2026. We will continue working on identifying opportunities to further optimize the cost base.
As a result of ongoing TMF development work into 2026, including further mechanical raises of the tailings dam wall, we expect capital expenditures related to the TMF of $420 million in 2026.
Optimization of QB, which is expected to add 5-10% of incremental throughput, was previously expected to ramp-up in 2026 and the benefits realized in 2027 and beyond, as reflected in our previously disclosed 2027 and 2028 annual production guidance. As a result of continued TMF development work and related downtime at QB during 2026, the benefits of optimization will no longer be fully achieved in the guidance period, but we remain confident that these benefits will be delivered over time.
Consistent with our previous disclosures, debottlenecking the QB plant (increasing throughput to between 165,000 and 185,000 tonnes per day) has not been embedded into guidance as we focus on ramping up the asset. While study work on QB debottlenecking continues, we do not expect to submit a DIA permit application before the end of 2026.
On this basis, our annual 2027 copper production for QB is expected to be 240,000 to 275,000 tonnes, compared to our previously disclosed guidance of 280,000 to 310,000. Our annual 2027 molybdenum production for QB is expected to be 4,700 to 5,600 tonnes, compared to our previously disclosed guidance of 7,000 to 8,000 tonnes.
Our annual 2028 copper production for QB is expected to be impacted by mining in a lower-grade area of the pit. Grades are anticipated to increase in years beyond 2028, during which we expect to complete the implementation of optimization initiatives to enable an incremental 5–10% improvement in throughput. At the same time, we will continue progressing work towards achieving design recovery rates.
On this basis, our annual 2028 copper production for QB is expected to be between 220,000 to 255,000 tonnes, compared to our previously disclosed guidance of 270,000 to 300,000 tonnes. Our annual 2028 molybdenum production for QB is expected to be 5,300 to 6,300 tonnes compared to our previously disclosed guidance of 6,000 to 7,000 tonnes.
Note:
1. This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
Highland Valley Copper
Q3 2025 production at HVC was 28,100 tonnes, which was lower than expected due to lower grades and reduced mill online time as a result of unplanned maintenance. As previously disclosed, we are mining the higher grade Lornex pit as our dominant ore source at HVC. The placement and characterization of the Lornex fault within the pit has varied from our block model, lowering average grades near the fault zone and copper production in Q3 2025. The block model has been reviewed and reconciled, and we expect the Lornex fault will be mined through by Q1 2026.
As a result of lower production in Q3 2025, our annual 2025 copper production for HVC is now expected to be between 120,000 and 130,000 tonnes, compared to our previously disclosed guidance of 135,000 to 150,000 tonnes.
We expect slightly lower grades in 2026, with higher grade material shifting into 2027. We have also adjusted mine plans for recent and historical performance of mill online time. As a result of these changes, our annual 2026 copper production for HVC is expected to be 115,000 to 135,000 tonnes, compared to our previously disclosed guidance of 130,000 to 150,000 tonnes.
Our annual 2027 copper production for HVC is expected to increase to 135,000 to 155,000 tonnes, compared to our previously disclosed guidance of 120,000 to 140,000 tonnes. Our annual 2028 copper production is expected to increase to 100,000 to 120,000 tonnes compared to our previously disclosed guidance of 90,000 to 110,000 tonnes.
Red Dog
Strong performance at Red Dog continued in Q3 2025 with zinc in concentrate production of 122,000 tonnes and sales volumes of 272,800 tonnes, higher than our previously disclosed sales guidance of 200,000 to 250,000 tonnes.
As a result of strong performance through the end of September 30, 2025, we expect to come in at the high end of our previously disclosed annual 2025 zinc in concentrate production guidance for Red Dog of 430,000 to 470,000 tonnes. Our previously disclosed 2025 annual zinc net cash unit cost 1 guidance is unchanged. We expect sales of zinc in concentrate at Red Dog to be in the range of 125,000 to 140,000 tonnes in the fourth quarter of 2025, reflecting the normal seasonality of Red Dog sales.
As previously disclosed, grades at Red Dog are expected to reduce as the operation nears the end of mine life. We are currently mining in the Aqqaluk and Qanaiyaq pits, with the latter expected to be depleted in 2026. Higher than average precipitation events have caused slippage along a known fault in the Aqqaluk pit requiring mining in areas with lower grade, resulting in lower production of zinc in concentrate expected in 2026, 2027 and 2028.
Our annual 2026 zinc in concentrate production is expected to be 375,000 to 415,000 tonnes, compared to our previously disclosed guidance of 410,000 tonnes to 460,000 tonnes. Our annual 2027 zinc in concentrate production is expected to be 330,000 to 370,000, compared to our previously disclosed guidance of 365,000 to 400,000 tonnes. Our annual 2028 zinc in concentrate production is expected to be 230,000 to 270,000, compared to our previously disclosed guidance of 290,000 to 320,000 tonnes. Beyond 2028, production is expected to continue at similar levels through the end of mine life in 2032.
The Red Dog Anarraaq and Aktiguiruq Program (AAEP) has several high-quality opportunities that could extend the mine life of Red Dog beyond 2032. The project is currently in the pre-feasibility study stage, and we are progressing the construction of an all-season road to access and drill the deposits, which are critical to the extension of the mine life of Red Dog.
Trail Operations
Trail continued to perform in-line with our expectations as outlined in our previously disclosed guidance. Q3 2025 refined zinc production at Trail was 52,600 tonnes.
As a result of strong performance through the end of September 30, 2025, we expect to come in at the high end of our previously disclosed annual 2025 refined zinc production guidance of 190,000 to 230,000 tonnes.
Our focus at Trail has been on improving its profitability and cash generation, through prioritizing processing of residues over maximizing refined zinc production. Processing residues enables us to reduce concentrate purchases in the low treatment charge environment, improving profitability.
Refined zinc production at our Trail Operations is expected to be between 190,000 and 230,000 tonnes in 2026, aligned with expected 2025 production. Our previously disclosed 2026 annual refined zinc production guidance of 260,000 to 300,000 was based on a strategy of maximizing zinc production once residues were processed. We now expect residues to continue to be available for processing through 2026 and we remain focused on continuing to implement a range of initiatives to further improve cash generation and assessing whether residues can be processed for an extended period of time beyond 2026.
We assume a return to full production levels of 260,000 to 300,000 tonnes of refined zinc production in 2027 and 2028, consistent with the capacity of our Trail Operations, subject to market conditions and optimizing for value and financial outcomes.
Other Operations
There are no changes to guidance at Carmen de Andacollo and Antamina for 2025-2028.
Guidance
Our production guidance for 2025–2028 and our unit cost guidance for 2025–2026 are outlined in the tables below.
There have been no changes to our previously disclosed annual 2025 production guidance for Carmen de Andacollo, Antamina, Red Dog or Trail. Annual production guidance for Quebrada Blanca and Highland Valley Copper has been updated for 2025–2028, for Red Dog for 2026–2028, and for Trail for 2026.
As a result of lower annual production guidance, our annual 2025 net cash unit costs 1 for our copper segment have increased. There has been no change in our annual 2025 net cash unit costs 1 for our zinc segment. Our previously disclosed 2025 annual copper net cash unit cost 1 guidance has been revised to US$2.05 – $2.30 per pound, compared to our previously disclosed guidance of US$1.90–$2.05 per pound. Our 2026 annual copper net cash unit costs 1 are expected to be between US$1.85 – $2.20 per pound. Our 2026 annual zinc net cash unit costs 1 are expected to be between US$0.65 – $0.75 per pound. We intend to review a range of measures to optimize operating costs across our portfolio in light of revised production profiles. As a result of ongoing QB TMF development work into 2026, including further mechanical raises of the tailings dam wall, we expect capital expenditures related to TMF of $420 million in 2026. This is in addition to the $340 million of capital expenditures related to TMF in 2025, previously disclosed. The guidance ranges below reflect our operating plans, which include known risks and uncertainties. Events such as extreme weather, unplanned or extended operational shutdowns and other disruptions could impact actual results beyond these estimates. Our unit costs are calculated based on production guidance volumes and variances from estimated production ranges will impact unit costs. Further details on the assumptions embedded in the production guidance ranges, where changes have been made, are outlined below.