Teck Reports Unaudited Third Quarter Results for 2025 Merger of equals to create new global critical mine rals champion and unlock substantial value
Teck Resources Limited TSX: TECK.A, TECK.B NYSE: TECK
teck.com
News Release
For Immediate Release Date: October 21, 2025 25-26-TR
Teck Reports Unaudited Third Quarter Results for 2025
Merger of equals to create new global critical minerals champion and unlock substantial value
Vancouver, B.C. – Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (Teck) today announced its unaudited third quarter results for 2025.
"The merger of equals between Teck and Anglo American announced this quarter is a unique opportunity to create a global leader in critical minerals and a top five copper producer," said Jonathan Price, President and CEO. "The combination will unlock significant value for shareholders through integration of Quebrada Blanca and Collahuasi and meaningful corporate synergies, offering a compelling high-quality, copper-focused investment opportunity. In addition, we completed a Comprehensive Operational Review to ensure our business plans are grounded in demonstrated performance. Our focus moving forward is on disciplined execution and completion of the merger.”
Highlights
- On September 9, 2025, Teck and Anglo American plc announced an agreement to combine the two companies in a merger of equals (the Merger) to form the Anglo Teck group (“Anglo Teck”), a global critical minerals champion headquartered in Canada. Both Anglo American and Teck believe the Merger will be highly attractive for their respective shareholders and stakeholders, enhancing portfolio quality, financial and operational resilience and strategic positioning.
- The Merger is expected to deliver annual pre-tax synergies of approximately US$800 million, with approximately 80% expected to be realized on a run-rate basis by the end of the second year following completion. Anglo Teck will also work with stakeholders to optimize the value of the adjacent Collahuasi and Quebrada Blanca assets to realize an annual average underlying EBITDA1 uplift of US$1.4 billion (100% basis).
- On October 7, 2025, we announced completion of our Comprehensive Operational Review and Updated Outlook, with an update on the progress of the Quebrada Blanca (QB) Action Plan.
- Adjusted EBITDA1 of $1.2 billion in Q3 2025 was $185 million higher than the same period last year, primarily driven by higher copper and zinc prices and increased by-product revenues. Our profit from continuing operations before taxes was $289 million in Q3 2025.
- Adjusted profit from continuing operations attributable to shareholders1 was $372 million, or $0.76 per share, in Q3 2025. Our profit from continuing operations attributable to shareholders was $281 million or $0.58 per share.
- Our strong balance sheet provides resilience to market uncertainty, with liquidity as at October 21, 2025 of $9.5 billion, including $5.3 billion of cash.
- Our copper segment generated gross profit before depreciation and amortization1 of $740 million in the third quarter compared to $604 million a year ago, primarily driven by higher copper prices (averaging
US$4.44 per pound in the third quarter) and significantly lower smelter processing charges. Copper sales of 110,300 tonnes in Q3 2025 were similar to year ago. Gross profit from our copper business was $355 million in the third quarter.
- Our zinc segment generated gross profit before depreciation and amortization1 of $454 million in the third quarter, compared to $358 million a year ago. The increase was primarily due to improved profitability at our Trail Operations and strong zinc sales volumes from Red Dog of 272,800 tonnes following a successful shipping season, which exceeded our previously disclosed guidance range of 200,000 to 250,000 tonnes. Gross profit from our zinc business was $305 million in the third quarter.
Note:
1. This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
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Financial Summary Q3 2025
| Financial Metrics | ||
| Q3 2025 | Q3 2024 | |
| (CAD$ in millions, except per share data) | ||
| Revenue Gross profit Gross profit before depreciation and amortization1 Profit (loss) from continuing operations before taxes Adjusted EBITDA1 Profit (loss) from continuing operations attributable to shareholders Adjusted profit from continuing operations attributable to shareholders1 Basic earnings (loss) per share from continuing operations Diluted earnings (loss) per share from continuing operations Adjusted basic earnings per share from continuing operations1 Adjusted diluted earnings per share from continuing operations1 | $ 3,385 $ 660 $ 1,194 $ 289 $ 1,171 $ 281 $ 372 $ 0.58 $ 0.57 $ 0.76 $ 0.76 | $ 2,858 $ 478 $ 962 $ (759) $ 986 $ (748) $ 314 $ (1.45) $ (1.45) $ 0.61 $ 0.60 |
Note:
1. This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
Key Updates
Teck and Anglo American plc Merger of Equals
- On September 9, 2025, we announced that we had entered into an arrangement agreement with Anglo American plc with respect to the Merger between Anglo American plc and Teck to form Anglo Teck, a global critical minerals champion and top five global copper producer, headquartered in Canada and expected to offer investors more than 70% exposure to copper.
- Both Anglo American plc and Teck believe the Merger will be highly attractive for both companies’ shareholders and stakeholders, enhancing portfolio quality, resilience and strategic positioning. Bringing together the strengths of both companies, Anglo Teck will leverage proven capabilities in technical and operational excellence, sustainability, product marketing and project execution to deliver significant, value-accretive growth through the cycle.
- The Merger is expected to deliver annual pre-tax synergies of approximately US$800 million by the end of the fourth year following completion of the transaction, with approximately 80% expected to be realized on a run-rate basis by the end of the second year following completion, driven by economies of scale, operational efficiencies, and commercial and functional excellence. Anglo Teck will also work with key stakeholders and partners in Collahuasi and Quebrada Blanca to optimize the value of these adjacent assets to realize US$1.4 billion (100% basis) of annual underlying EBITDA1 uplift on an average pre-tax annual basis from 2030-2049, primarily through operational integration and optimization of Collahuasi and Quebrada Blanca. This will build on Anglo American’s success with similar adjacency partnerships in Brazil and elsewhere in Chile.
- Completion of the transaction is subject to a number of customary conditions, including applicable court, shareholder and regulatory approvals. The Merger is expected to close within 12-18 months from announcement.
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QB Action Plan Update and Q3 Performance
- Production at QB continues to be constrained by the pace of development of the tailings management facility (TMF), requiring downtime in the concentrator to manage the rate of tailings rise. Our 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 steadystate 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 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.
- 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.
- Q3 2025 copper production at QB was 39,600 tonnes, which was 12,900 tonnes lower than the same period last year. As outlined above, ongoing TMF development has constrained production through 2025 resulting in additional downtime of the concentrator, particularly in Q3 2025. September production was 5,800 tonnes, impacted by 20 days of downtime required to raise the tailings dam crest.
- Molybdenum production at QB was 480 tonnes in the third quarter as ramp-up of the molybdenum plant continued. Molybdenum production was constrained by downtime in the concentrator due to ongoing TMF development work, outlined above.
- 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.
- On October 7, 2025, we announced updates to our previously disclosed guidance. Our annual 2025 copper production for QB is expected to be 170,000 to 190,000 tonnes and our annual molybdenum production for QB is expected to be 1,700 to 2,500 tonnes. QB net cash unit costs1 for 2025 are expected to be between US$2.65 – $3.00 per pound.
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Safety and Sustainability Leadership
- Our High-Potential Incident (HPI) Frequency rate remains low at 0.06 for the nine months ended September 30, 2025, trending 50% below the 2024 annual rate of 0.12.
5 Teck Resources Limited 2025 Third Quarter News Release
Guidance
- On October 7, 2025, we announced completion of our Comprehensive Operational Review and Updated Outlook, which resulted in revisions to our annual production guidance for QB and Highland Valley Copper for 2025-2028, Red Dog for 2026-2028, and Trail for 2026. Further, as a result of changes to our production guidance, we provided updated guidance for 2025 annual net cash unit costs1 for QB and our copper segment and provided 2026 annual net cash unit cost1 guidance for our copper and zinc segments.
- There have been no changes to our guidance disclosed on October 7, 2025.
- Our guidance is outlined in summary below and our usual guidance tables, including three-year production guidance, can be found on pages Error! Bookmark not defined.–Error! Bookmark not defined. of Teck’s third quarter results for 2025 at the link below.
| 2025 Guidance – Summary | Current |
| Production Guidance Copper (000’s tonnes) Zinc (000’s tonnes) Refined zinc (000’s tonnes) Sales Guidance – Q4 2025 Red Dog zinc in concentrate sales (000’s tonnes) Unit Cost Guidance Copper net cash unit costs (US$/lb.)1 Zinc net cash unit costs (US$/lb.)1 | 415 – 465 525 – 575 190 – 230 125 – 140 2.05 – 2.30 0.45 – 0.55 |
Note:
1. This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
All dollar amounts expressed in this news release are in Canadian dollars unless otherwise noted.
Click here to view Teck’s full third quarter results for 2025.
WEBCAST
Teck will host an Investor Conference Call to discuss its Q3/2025 financial results at 11:00 AM Eastern time, 8:00 AM Pacific time, on October 22, 2025. A live audio webcast of the conference call, together with supporting presentation slides, will be available at our website at www.teck.com. The webcast will be archived at www.teck.com.
REFERENCE
Emma Chapman, Vice President, Investor Relations: +44 207.509.6576 Dale Steeves, Director, External Communications: +1 236.987.7405
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USE OF NON-GAAP FINANCIAL MEASURES AND RATIOS
Our annual financial statements are prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (IASB). Our interim financial results are prepared in accordance with IAS 34, Interim Financial Reporting (IAS 34). This document refers to a number of non- GAAP financial measures and non-GAAP ratios, which are not measures recognized under IFRS Accounting Standards and do not have a standardized meaning prescribed by IFRS Accounting Standards or by Generally Accepted Accounting Principles (GAAP) in the United States.
The non-GAAP financial measures and non-GAAP ratios described below do not have standardized meanings under IFRS Accounting Standards, may differ from those used by other issuers, and may not be comparable to similar financial measures and ratios reported by other issuers. These financial measures and ratios have been derived from our financial statements and applied on a consistent basis as appropriate. We disclose these financial measures and ratios because we believe they assist readers in understanding the results of our operations and financial position and provide further information about our financial results to investors. These measures should not be considered in isolation or used as a substitute for other measures of performance prepared in accordance with IFRS Accounting Standards.
Adjusted profit from continuing operations attributable to shareholders – For adjusted profit from continuing operations attributable to shareholders, we adjust profit from continuing operations attributable to shareholders as reported to remove the after-tax effect of certain types of transactions that reflect measurement changes on our balance sheet or are not indicative of our normal operating activities.
EBITDA – EBITDA is profit before net finance expense, provision for income taxes, and depreciation and amortization.
Adjusted EBITDA – Adjusted EBITDA is EBITDA before the pre-tax effect of the adjustments that we make to adjusted profit from continuing operations attributable to shareholders as described above.
Adjusted profit from continuing operations attributable to shareholders, EBITDA and Adjusted EBITDA highlight items and allow us and readers to analyze the rest of our results more clearly. We believe that disclosing these measures assists readers in understanding the ongoing cash-generating potential of our business in order to provide liquidity to fund working capital needs, service outstanding debt, fund future capital expenditures and investment opportunities, and pay dividends.
Adjusted basic earnings per share from continuing operations – Adjusted basic earnings per share from continuing operations is adjusted profit from continuing operations attributable to shareholders divided by average number of shares outstanding in the period.
Adjusted diluted earnings per share from continuing operations – Adjusted diluted earnings per share from continuing operations is adjusted profit from continuing operations attributable to shareholders divided by average number of fully diluted shares in a period.
Gross profit before depreciation and amortization – Gross profit before depreciation and amortization is gross profit with depreciation and amortization expense added back. We believe this measure assists us and readers to assess our ability to generate cash flow from our reportable segments or overall operations.
Total cash unit costs – Total cash unit costs for our copper and zinc operations includes adjusted cash costs of sales, as described below, plus the smelter and refining charges added back in determining
7 Teck Resources Limited 2025 Third Quarter News Release adjusted revenue. This presentation allows a comparison of total cash unit costs, including smelter charges, to the underlying price of copper or zinc in order to assess the margin for the mine on a per unit basis.
Net cash unit costs – Net cash unit costs of principal product, after deducting co-product and by-product margins, are also a common industry measure. By deducting the co- and by-product margin per unit of the principal product, the margin for the mine on a per unit basis may be presented in a single metric for comparison to other operations.
Adjusted cash cost of sales – Adjusted cash cost of sales for our copper and zinc operations is defined as the cost of the product delivered to the port of shipment, excluding depreciation and amortization charges, any one-time collective agreement charges or inventory write-down provisions and by-product cost of sales. It is common practice in the industry to exclude depreciation and amortization, as these costs are non-cash, and discounted cash flow valuation models used in the industry substitute expectations of future capital spending for these amounts.
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Profit (Loss) from Continuing Operations Attributable to Shareholders and Adjusted Profit from Continuing Operations Attributable to Shareholders
| Three months ended | Nine months ended | |||
|---|---|---|---|---|
| September 30, | September 30, | |||
| (CAD$ in millions) | 2025 | 2024 | 2025 | 2024 |
Profit (loss) from continuing operations attributable
$ 281 $ (748) $ 857 $ (852)
to shareholders
Add (deduct) on an after-tax basis:
| Asset impairment | — | 828 | — | 828 |
| QB variable consideration to IMSA and Codelco | 34 | (33) | (16) | 9 |
| Environmental costs | 33 | 15 | 31 | 9 |
| Share-based compensation | 13 | 26 | 33 | 67 |
| Commodity derivatives | (36) | (9) | (59) | (36) |
| Foreign exchange (gains) losses | (10) | 41 | 15 | 71 |
| Tax items | — | 203 | (82) | 229 |
| Other | 57 | (9) | 83 | 48 |
Adjusted profit from continuing operations
$ 372 $ 314 $ 862 $ 373
attributable to shareholders
Basic earnings (loss) per share from continuing
$ 0.58 $ (1.45) $ 1.73 $ (1.64)
operations Diluted earnings (loss) per share from continuing
$ 0.57 $ (1.45) $ 1.72 $ (1.64)
operations Adjusted basic earnings per share from continuing
$ 0.76 $ 0.61 $ 1.74 $ 0.72
operations Adjusted diluted earnings per share from
$ 0.76 $ 0.60 $ 1.73 $ 0.71
continuing operations
Reconciliation of Basic Earnings (Loss) per share from Continuing Operations to Adjusted Basic Earnings per share from Continuing Operations
| Three months ended | Nine months ended | |||
|---|---|---|---|---|
| September 30, | September 30, | |||
| (Per share amounts) | 2025 | 2024 | 2025 | 2024 |
Basic earnings (loss) per share from continuing
$ 0.58 $ (1.45) $ 1.73 $ (1.64)
operations
Add (deduct):
| Asset impairment | — | 1.60 | — | 1.60 |
| QB variable consideration to IMSA and Codelco | 0.07 | (0.06) | (0.03) | 0.01 |
| Environmental costs | 0.07 | 0.03 | 0.06 | 0.02 |
| Share-based compensation | 0.03 | 0.05 | 0.07 | 0.13 |
| Commodity derivatives | (0.07) | (0.02) | (0.12) | (0.07) |
| Foreign exchange (gains) losses | (0.02) | 0.08 | 0.03 | 0.14 |
| Tax items | — | 0.39 | (0.16) | 0.44 |
| Other | 0.10 | (0.01) | 0.16 | 0.09 |
Adjusted basic earnings per share from continuing
$ 0.76 $ 0.61 $ 1.74 $ 0.72
operations
Reconciliation of Diluted Earnings (Loss) per share from Continuing Operations to Adjusted Diluted Earnings per share from Continuing Operations
| Three months ended | Nine months ended | |||
|---|---|---|---|---|
| September 30, | September 30, | |||
| (Per share amounts) | 2025 | 2024 | 2025 | 2024 |
Diluted earnings (loss) per share from continuing
$ 0.57 $ (1.45) $ 1.72 $ (1.64)
operations
Add (deduct):
| Asset impairment | — | 1.59 | — | 1.58 |
| QB variable consideration to IMSA and Codelco | 0.07 | (0.06) | (0.03) | 0.02 |
| Environmental costs | 0.07 | 0.03 | 0.06 | 0.02 |
| Share-based compensation | 0.03 | 0.05 | 0.07 | 0.13 |
| Commodity derivatives | (0.07) | (0.02) | (0.12) | (0.07) |
| Foreign exchange (gains) losses | (0.02) | 0.08 | 0.03 | 0.14 |
| Tax items | — | 0.39 | (0.16) | 0.44 |
| Other | 0.11 | (0.01) | 0.16 | 0.09 |
Adjusted diluted earnings per share from
$ 0.76 $ 0.60 $ 1.73 $ 0.71
continuing operations
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Reconciliation of EBITDA and Adjusted EBITDA
| Three months ended | Nine months ended | |||
|---|---|---|---|---|
| September 30, | September 30, | |||
| (CAD$ in millions) | 2025 | 2024 | 2025 | 2024 |
| Profit (loss) from continuing operations before taxes | $ 289 $ | (759) $ | 864 $ | (974) |
| Net finance expense | 175 | 153 | 469 | 578 |
| Depreciation and amortization | 554 | 498 | 1,344 | 1,203 |
| EBITDA | 1,018 | (108) | 2,677 | 807 |
Add (deduct):
| Asset impairment | — | 1,053 | — | 1,053 |
| QB variable consideration to IMSA and Codelco | 58 | (55) | (26) | 14 |
| Environmental costs | 40 | 20 | 42 | 8 |
| Share-based compensation | 17 | 34 | 41 | 86 |
| Commodity derivatives | (49) | (13) | (81) | (50) |
| Foreign exchange (gains) losses | (9) | 56 | 16 | 89 |
| Other | 96 | (1) | 151 | 91 |
| Adjusted EBITDA | $ 1,171 $ | 986 $ | 2,820 $ | 2,098 |
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Reconciliation of Gross Profit Before Depreciation and Amortization
| Three months ended | Nine months ended | |||
|---|---|---|---|---|
| September 30, | September 30, | |||
| (CAD$ in millions) | 2025 | 2024 | 2025 | 2024 |
| Gross profit | $ | 660 $ | 478 $ | 1,667 $ | 1,065 |
| Depreciation and amortization | 534 | 484 | 1,288 | 1,155 | |
| Gross profit before depreciation and amortization | $ | 1,194 $ | 962 $ | 2,955 $ | 2,220 |
Reported as:
Copper
| Quebrada Blanca | $ 178 $ | 178 $ | 580 $ | 462 |
| Highland Valley Copper | 189 | 89 | 564 | 371 |
| Antamina | 295 | 287 | 731 | 763 |
| Carmen de Andacollo | 78 | 48 | 240 | 69 |
| Other | — | 2 | 2 | 4 |
| 740 | 604 | 2,117 | 1,669 |
Zinc
| Trail Operations | 54 | 26 | 176 | (3) |
| Red Dog | 390 | 333 | 646 | 548 |
| Other | 10 | (1) | 16 | 6 |
| 454 | 358 | 838 | 551 | |
| Gross profit before depreciation and amortization | $ 1,194 $ | 962 $ | 2,955 $ | 2,220 |
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