Teck Reports Unaudited First Quarter Results for 2023

Source Company Press Release
Company Teck Resources Limited
Tags Corporate: Corporate Results, Guidance, Overview/Strategy, Country: Canada, Financial - Costs & Metrics: Capital Expenditures, Segment: Power, Upstream: Drilling Activity, Upstream News
Date April 26, 2023

Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (Teck) today announced its unaudited first quarter results for 2023.  

“We had a positive start to the year with strong financial performance in the first quarter driven by strong commodity prices and steelmaking coal sales,” said Jonathan Price, CEO. “We achieved a number of significant milestones in our copper growth strategy this quarter including first copper concentrate production at QB2, the cornerstone of our copper growth strategy, while making advances across our pipeline of near and medium-term projects. The progress in our copper growth pipeline reinforces the underlying value and optionality in our base metals business."


  • Adjusted profit attributable to shareholders1 of $930 million or $1.81 per share in Q1 2023.
  • Profit from continuing operations attributable to shareholders1 of $1.2 billion or $2.27 per share in Q1 2023.
  • Adjusted EBITDA1 was $2.0 billion in Q1 2023 driven by continued robust commodity prices and strong steelmaking coal sales volumes. Profit from continuing operations before taxes was $1.9 billion in Q1 2023.
  • We generated cash flows from operations of $1.1 billion in the quarter, ending with a cash balance of $2.3 billion. Our liquidity as at April 25, 2023 is $8.0 billion, including $2.6 billion of cash.
  • We returned $321 million to shareholders through dividends in Q1 2023.
  • At QB2, we have produced our first bulk copper concentrate, continue to advance commissioning and will ramp-up to full production through 2023.
  • We successfully closed transactions related to the joint venture partnerships for the NewRange and San Nicolás projects, which are key milestones in advancing our copper growth strategy, and the sales of Quintette and our interest in Fort Hills. 


1. This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.

Financial Summary Q1 2023

Financial Metrics
(CAD$ in millions, except per share data) 
Q1 2023   Q1 2022 
Revenues  $3,785  $4,616 
Gross profit    $1,666  $2,478 
Gross profit before depreciation and amortization1  $2,089  $2,893 
Profit from continuing operations before taxes  $1,856  $2,368 
Adjusted EBITDA1   $1,972  $3,044 
Profit from continuing operations attributable to shareholders  $1,166  $1,519 
Adjusted profit attributable to shareholders1   $930  $1,620 
Basic earnings per share from continuing operations  $2.27  $2.84 
Diluted earnings per share from continuing operations  $2.23  $2.78 
Adjusted basic earnings per share1   $1.81  $3.02 
Adjusted diluted earnings per share1   $1.78  $2.96 

1.    This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.

Key Updates

Executing on our copper growth strategy – QB2 a long-life, low-cost operation with major expansion potential

  • QB2 is in commissioning of Line 1 at the concentrator and our focus continues to be on system completion and handover as part of the continuous commissioning and ramp-up plan through 2023.
  • The start of Line 1 commissioning commenced in January; however, our first copper milestone was not achieved until late March. This delay, combined with recent foreign exchange impacts, has resulted in pressure on our project capital cost guidance for QB2 which could increase total capital costs for the project to US$8.0 to $8.2 billion. Over 30% of the increase from our previously disclosed guidance relates to non-controllable foreign exchange impacts. Significant efforts are ongoing to mitigate the cost pressures.
  • Our 2023 production guidance is unchanged and we continue to expect QB2 to be operating at full production rates by the end of 2023.

Safety and Sustainability Leadership

  • Our High Potential Incident Frequency remained low at a rate of 0.10 in the first quarter.
  • We issued a report on our low-carbon Special High Grade (SHG) refined zinc product, confirming each tonne of SHG zinc from Trail Operations generates 0.93 tonnes of carbon dioxide equivalent (CO2e) compared to the estimated global average of 3 — 4 tonnes of CO2e per tonne. 
  • We released our 22nd Annual Sustainability Report, outlining Teck’s sustainability performance including improvements in health & safety, climate action, diversity and other areas. 


There has been no change in our previously issued annual guidance, with the exception of QB2 capital cost guidance, as noted above. Our guidance is outlined in summary below and our usual guidance tables, including three-year production guidance, can be found on pages 27 — 31.

2023 Guidance – Summary 
Production Guidance  Current 
  Copper (000’s tonnes)  390 - 445 
  Zinc (000’s tonnes)  645 - 685 
  Refined zinc (000’s tonnes)  270 – 290 
  Steelmaking coal (million tonnes)  24.0 – 26.0 
Sales Guidance – Q2 2023   
  Red Dog zinc in concentrate sales (000’s tonnes)  45 - 55 
  Steelmaking coal sales (million tonnes)  6.2 - 6.6 
Unit Cost Guidance   
  Copper net cash unit costs (US$/lb.) 1 2  1.60 – 1.80 
  Zinc net cash unit costs (US$/lb.) 1    0.50 – 0.60 
  Steelmaking coal adjusted site cash cost of sales (CAD$/tonne) 1    88 – 96 
  Steelmaking coal transportation costs (CAD$/tonne)  45 – 48 

1. This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
2. Excludes Quebrada Blanca

Source: EvaluateEnergy® ©2024 EvaluateEnergy Ltd