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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 cost1 guidance for QB and our copper segment and provided 2026 annual net cash unit cost1 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:
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
Note:
2026 – 2028 Outlook
Note:
Highland Valley Copper
Red Dog
Trail Operations
Other Operations
There are no changes to guidance at Carmen de Andacollo and Antamina for 2025-2028.
Guidance
Note:
Production Guidance
The table below shows our guidance for production for 2025 through 2028 for our principal products.
(Units in 000’s of tonnes) | 2025 | 2026 | 2027 | 2028 |
Guidance4 | Guidance5 | Guidance6 | Guidance7 | |
Principal products | ||||
Copper1 2 | ||||
Quebrada Blanca | 170 – 190 | 200 – 235 | 240 – 275 | 220 – 255 |
Highland Valley Copper | 120 – 130 | 115 – 135 | 135 – 155 | 100 – 120 |
Antamina (22.5%) | 80 – 90 | 95 – 105 | 85 – 95 | 80 – 90 |
Carmen de Andacollo | 45 – 55 | 45 – 55 | 45 – 55 | 35 – 45 |
415 – 465 | 455–530 | 505–580 | 435–510 | |
Zinc1 2 3 | ||||
Red Dog | 430 – 470 | 375 – 415 | 330 – 370 | 230 – 270 |
Antamina (22.5%) | 95 – 105 | 55 – 65 | 35 – 45 | 45 – 55 |
525 – 575 | 430–480 | 365–415 | 275–325 | |
Refined zinc | ||||
Trail Operations | 190 – 230 | 190–230 | 260–300 | 260–300 |
Other products | ||||
Lead1 | ||||
Red Dog | 85 – 105 | 70 – 90 | 60 – 80 | 50 – 65 |
Molybdenum1 2 | ||||
Quebrada Blanca | 1.7 – 2.5 | 2.8 – 3.4 | 4.7 – 5.6 | 5.3 – 6.3 |
Highland Valley Copper | 1.3 – 1.5 | 1.5 – 1.8 | 1.8 – 2.0 | 3.0 – 3.4 |
Antamina (22.5%) | 0.5 – 0.8 | 0.7 – 1.0 | 0.9 – 1.2 | 0.4 – 0.6 |
3.5 – 4.8 | 5.0–6.2 | 7.4–8.8 | 8.7 – 10.3 | |
Notes:
Unit Cost Guidance
2025 | 2026 | |
Guidance | Guidance | |
Copper1 | ||
Total cash unit costs4(US$/lb) | 2.50 – 2.80 | 2.25 – 2.55 |
Net cash unit costs3 4(US$/lb) | 2.05 – 2.30 | 1.85 – 2.20 |
Zinc2 | ||
Total cash unit costs4(US$/lb) | 0.65 – 0.75 | 0.80 – 0.90 |
Net cash unit costs3 4(US$/lb) | 0.45 – 0.55 | 0.65 – 0.75 |
Notes:
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). 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. For more information on our use of non-GAAP financial measures and ratios, see the section titled “Use of Non-GAAP Financial Measures and Ratios” in our most recent Management Discussion Analysis, which is available on SEDAR+ (www.sedarplus.ca). Additional information on certain non-GAAP ratios is below.
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 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.
Cash margins for by-products – Cash margins for by-products is revenue from by- and co-products, less any associated cost of sales of the by- and co-product. In addition, for our copper operations, by-product cost of sales also includes cost recoveries associated with our streaming transactions.
Total cash unit costs per pound –Total cash unit costs per pound is a non-GAAP ratio comprised of adjusted cash cost of sales divided by payable pounds sold plus smelter processing charges divided by payable pounds sold.
Net cash unit costs per pound – Net cash unit costs per pound is a non-GAAP ratio comprised of (adjusted cash cost of sales plus smelter processing charges less cash margin for by-products) divided by payable pounds sold. There is no similar financial measure in our consolidated financial statements with which to compare. Adjusted cash cost of sales is a non-GAAP financial measure.
Cash margins for by-products per pound – Cash margins for by-products per pound is a non-GAAP ratio comprised of cash margins for by-products divided by payable pounds sold.
Cautionary Statement on Forward-Looking Statements
This news release contains certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to as forward-looking statements). These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words “anticipate”, “can”, “could”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “would”, “project”, “predict”, “likely”, “potential”, “should”, “believe” and similar expressions is intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These statements speak only as of the date of this news release.
These forward-looking statements include, but are not limited to, statements concerning: our expectations with respect to the comprehensive operations review and QB action plan, including the timing, outcome, and effectiveness thereof and any updates to guidance arising out of such review; our updates to production guidance at QB, HVC, Antamina, Carmen de Andacollo, Red Dog and Trail; our business, assets, and strategy going forward, including with respect to future and ongoing project development; our ability to accelerate and advance QB TMF development, drive operational performance, and achieve steady-state operations and ramp-up targets at QB; our expectations with respect to potential underlying synergies between QB and the adjacent Collahuasi operation; our expectations with respect to the potential of QB, including design, construction and operational capacity; our expectations with respect to ore grades; our expectations that grades will increase in years following 2028 to levels more consistent with the expected average; our ability to identify and implement solutions to enable ramp-up, accelerate and improve sand drainage, strengthen execution, and resolve other constraints on QB production, including the timeline for implementing such solutions; our ability to construct and implement solutions to assist with ultra-fines removal and refine sand placement techniques; our expectations regarding cost, timing and completion of TMF development at our QB operations; our expectations that the TMF development will not be a constraint on throughput levels from 2027 onwards; our expectations with respect to de-bottlenecking matters at QB; our expectations with respect to any downtime of the concentrator at QB; our ability to improve our planning, forecasting and reconciliation processes to support operational readiness and enable informed decision-making and risk management; our expectations with respect to the occurrence, timing and length of required maintenance shutdowns and equipment replacement; our expectations with respect our previously issued guidance, including with respect to production, sales, cost, unit cost, capital expenditure, capitalized stripping, operating outlook, and other guidance; our expectations with respect to future 2026 and 2027 production guidance updates; our expectations regarding recovery; and our expectations regarding inflationary pressures and increased key input costs.
These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general business and economic conditions; the outcome of our comprehensive operations review and our ability to implement the QB action plan, including the timing and effectiveness thereof; the operation of QB and our other operations in accordance with our expectations; our ability to advance QB TMF development initiatives as expected and the timing, occurrence and length of any potential maintenance downtime; expectations with respect to the restart of the ship loader at QB and with respect to continued availability of alternative port arrangements; the possibility that our business may not perform as expected or in a manner consistent with historical performance; the supply and demand for, deliveries of, and the level and volatility of prices of copper and zinc and our other metals and minerals, as well as steel, crude oil, natural gas and other petroleum products; our costs of production and our production and productivity levels; our ability to procure equipment and development and operating supplies in sufficient quantities and on a timely basis; the availability of qualified employees and contractors for our operations; engineering and construction timetables and capital costs for our initiatives; the accuracy of our mineral reserve and resource estimates (including with respect to size, grade and recoverability) and the geological, operational and price assumptions on which these are based; the outcome of the planning, forecasting and reconciliation processes underway; and that operating, development, and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts and supplies, labour disturbances, interruption in transportation or utilities, or adverse weather conditions. The foregoing list of assumptions is not exhaustive. Events or circumstances could cause actual results to vary materially.
Factors that may cause actual results to vary materially include, but are not limited to, the outcome of our comprehensive operations review; risks related to implementing the QB action plan, including the timing and effectiveness thereof; risks related to the operation of QB and our other operations in accordance with our expectations; risks related to our ability to advance QB TMF development initiatives as expected and the timing, occurrence and length of any potential maintenance downtime; the outcome of the planning, forecasting and reconciliation processes underway, including potential impacts on our guidance; TMF development will affect throughput levels in the future; the ability to achieve the closing conditions of the proposed merger with Anglo American plc; the ability to achieve expected synergies between QB and the adjacent Collahuasi operation; the accuracy of geo-metallurgical testing; recovery performance; actual sand drainage; risks related to construction; unexpected risks related to potential downtime; risks related to the restart of the ship loader at QB and with respect to continued availability of alternative port arrangements; risks related to business performance as expected or in a manner consistent with historical performance; inaccurate geological and metallurgical assumptions (including with respect to the size, grade and recoverability of mineral reserves and resources); the actual grades of materials; operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of labour, materials and equipment); unplanned or extended operational shutdowns; adverse weather conditions; unanticipated risks related to ongoing TMF development activities; risks related to general business, economic and market conditions; and unanticipated events related to health, safety and environmental matters.
We assume no obligation to update forward-looking statements except as required under securities laws. Further information concerning risks, assumptions and uncertainties associated with these forward-looking statements and our business can be found in our Annual Information Form for the year ended December 31, 2024 filed under our profile on SEDAR+ (www.sedarplus.ca) and on EDGAR (www.sec.gov) under cover of Form 40-F, as well as subsequent filings that can also be found under our profile.
Webcast
Teck will host an Investor Conference Call to discuss this guidance update at 8:00 AM Eastern time, 5:00 AM Pacific time, on October 8, 2025.
Listen-Only Webcast: here
Dial In for Investor & Analyst Q&A:
1.647.846.8877 International
1.833.752.3828 Toll Free (Canada/US)
Quote “Teck”, to join the call
Alternate, pre-register to attend the call at: registration link.
An archive of the webcast will be available at www.teck.com within 24 hours.
About Teck
Teck is a leading Canadian resource company focused on responsibly providing metals essential to economic development and the energy transition. Teck has a portfolio of world-class copper and zinc operations across North and South America and an industry-leading copper growth pipeline. We are focused on creating value by advancing responsible growth and ensuring resilience built on a foundation of stakeholder trust. Headquartered in Vancouver, Canada, Teck’s shares are listed on the Toronto Stock Exchange under the symbols TECK.A and TECK.B and the New York Stock Exchange under the symbol TECK. Learn more about Teck at www.teck.com or follow @TeckResources.
Investor Contact:
Emma Chapman
Vice President, Investor Relations
+44.207.509.6576
[email protected]
Media Contact:
Dale Steeves
Director, External Communications
236.987.7405
[email protected]
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