Teck Resources (TECK) Q4 2024 earnings summary

Executive summary

• Completed sale of steelmaking coal business for $8.6 billion, repositioning as a pure-play copper and zinc company and generating record proceeds.

• Achieved record annual copper production of 446,000 tonnes in 2024, up 50% year-over-year, driven by QB ramp-up.

• Returned $1.8 billion to shareholders in 2024 via dividends and share buybacks, including $549 million in Q4.

• Strengthened balance sheet with $2.5 billion debt reduction, ending 2024 with $11.3 billion liquidity and net cash of $2.1 billion.

• Maintained industry-leading safety and sustainability performance, with continued external recognition.

Financial highlights

• Adjusted EBITDA more than doubled to $2.9 billion in 2024; Q4 Adjusted EBITDA up 160% to $835 million.

• Q4 2024 revenue was $2,786 million, up 51% year-over-year; gross profit was $542 million, up from $152 million.

• Corporate costs reduced by 21% year-over-year.

• Cash flow from operations reached $1.3 billion in Q4 2024, aided by working capital release.

• FY2024 loss from continuing operations before taxes was ($718 million), impacted by a one-time, non-cash, after-tax impairment charge of $828 million at Trail Operations.

Outlook and guidance

• 2025 copper production guidance: 490,000–565,000 tonnes; QB guidance: 230,000–270,000 tonnes.

• Copper net cash unit costs expected to decline to $1.65–1.95/lb in 2025 from $2.09/lb in Q4 2024.

• Zinc and concentrate production guidance for 2025: 525,000–575,000 tonnes, down from 616,000 tonnes in 2024.

• Zinc segment net cash unit costs expected to rise to $0.45–$0.55/lb in 2025 from $0.39/lb in 2024.

• Capital expenditures in 2025: $1.73–1.97 billion, with $1.34–1.5 billion for copper growth and sustaining projects.