Teck Resources Ltd. released its unaudited fourth-quarter report the night of Feb. 19, highlighting mixed production results at Trail Operations.
Refined zinc production at Trail reached 62,100 tonnes in the fourth quarter, a decrease of 7,800 tonnes from the same period last year.
The decline was attributed to a localized fire at the electrolytic plant in late September 2024.
Full repairs are expected to be completed by the end of the first quarter of 2025.
In contrast, refined lead production increased to 20,900 tonnes, up 4,400 tonnes from a year ago.
The improvement is credited to the successful operation of the KIVCET boiler following its replacement in the second quarter.
Operating costs at Trail remained stable at $154 million, while the company’s overall cost of sales rose to $869 million from $630 million a year ago.
Teck attributed the increase as being driven by higher royalty costs at Red Dog, increased concentrate purchase costs at Trail, and a weaker Canadian dollar.
Teck’s Red Dog mine, a significant contributor to its zinc production, saw a 17 per cent year-over-year decline in zinc output to 128,400 tonnes, due to lower ore grades and planned maintenance.
Lead production at Red Dog held steady at 25,300 tonnes.
Gross profit from Teck’s zinc segment surged to $243 million from $71 million a year earlier, buoyed by higher zinc prices, increased sales volumes, lower treatment charges, and improved by-product revenues.
Looking ahead to 2025, Teck projects refined zinc production at Trail between 190,000 and 230,000 tonnes, down from 256,000 tonnes in 2024.
The company reported that it plans to scale back zinc production in response to a tight concentrate market, focusing instead on profitability and cash generation.
Total zinc concentrate production is forecasted to fall to between 525,000 and 575,000 tonnes in 2025 from 615,900 tonnes in 2024, largely due to declining grades at Red Dog.
Mining at the Qanaiyaq pit (part of Red Dog mine) is expected to conclude by mid-2025, contributing to the decrease.
Teck’s projected 2025 zinc net cash unit costs are set to rise to US$0.45–$0.55 per pound from US$0.39 per pound in 2024, reflecting lower production and higher labour and material costs.
The increase, according to the company, will be partially offset by reduced treatment charges and stronger by-product credits.
The company also acknowledged potential risks stemming from evolving trade policies between Canada and the United States, noting that it is closely monitoring the situation to mitigate any business impacts.
Teck primarily sells refined zinc and lead — as well as specialty metals such as germanium, indium, and sulphur products — from Canada into the United States through its Trail Operations.
Teck does not currently sell its copper or zinc concentrate into the United States.
“We will continue to actively monitor the situation and work to mitigate any potential impacts on our business,” the company stated in its fourth-quarter report.
$1.1 billion pre-tax impairment charge
Teck Trail Operations reported an after-tax impairment charge of $828 million in its 2024 third-quarter financial results, citing ongoing market challenges and recent operating losses as the primary factors.
In November 2024, a Teck Trail Operations spokesperson told the Trail Times that the impairment was an accounting measure with no immediate impact on operations, workforce, safety, environmental commitments, or community support.
The company stated it was focusing on efficiency and cost management to restore profitability at the Trail smelter.
Just weeks after releasing its third-quarter results, Teck Trail Operations laid off 38 employees, citing the move as part of its long-term management strategy.
The Dec. 4 layoffs targeted non-union Teck staff but also affected workers on special assignments and those impacted by attrition.
"It's tough because all of the 38 people have ties to this community," Chris Walker, United Steel Workers Local 480 president, told the Times. "We knew there was some restructuring coming, but it's always hard when it happens, and those connections make it that much more difficult in a small town like this."
Trail Operations play a key role in processing zinc from Teck’s Red Dog Mine in Alaska, contributing to the North American critical minerals supply chain.
Record copper production in 2024
In a year of transformation, Teck successfully repositioned itself as a leading pure-play energy transition metals company, according to the company’s fourth quarter report.
The company stated that the shift was marked by the sale of its steelmaking coal business and an unprecedented surge in copper production.
“Our copper production in the fourth quarter set a new quarterly production record with strong performance at Quebrada Blanca, and we continued to return cash to shareholders through share buybacks and dividends that totalled $1.8 billion in 2024,” stated Jonathan Price, president and chief executive officer of Teck.
“Our strong financial position, ongoing returns to shareholders and value accretive copper growth strategy position us for long-term value creation.”
Quebrada Blanca is a large copper mine located in the Tarapacá Region of northern Chile, in the Andes Mountains.
Operated by Teck Resources Ltd., the mine is located approximately 240 kilometres southeast of the port city of Iquique, at an elevation of about 4,400 metres (14,400 feet) above sea level.
The Quebrada Blanca Phase 2 project is a significant expansion aimed at developing a large-scale, long-life copper operation, strengthening Teck's position in the copper market as demand rises for metals essential to the global energy transition.
