Teck says tariffs could mean altered trade flows but not material hit

The Teck Resources logo is seen on a podium before the company's special meeting of shareholders in Vancouver on Wednesday, April 26, 2023. THE CANADIAN PRESS/Darryl Dyck

Teck Resources Ltd. says it expects to find other trade routes for some of the metals it refines in B.C. if the U.S. goes ahead with tariffs.

Chief executive Jonathan Price told a conference call with investors that border taxes shouldn’t have a material impact on Teck overall, but that it will adjust where need be.

The company exports most of its copper and zinc concentrates to Asia and Europe and so would avoid the proposed 25 per cent tariffs on Canadian goods, he said.

Output from Teck’s refinery in Trail, B.C., including zinc, lead and specialty metals like germanium, Idium, and sulphur products are sold into the U.S. and so it will likely find alternatives, Price said.

“In the event that tariffs are imposed, we expect trade flows to adjust.”

He said that while Teck is one of the largest suppliers outside of China of the group of metals, they make up less than 15 per cent of company revenue.

The threat of tariffs is also risking wider trade and economic disruptions, but Teck expects that trends like urbanization and electrification will underpin demand for its main products.

“Globally we are witnessing a period of significant economic uncertainty and change that will alter trade flows and potentially impact global supply chains and market dynamics,” Price said.

“Teck has a resilient business driven by the diversification of our products and operations.”

Copper exports remain a key driver for the company with record production helping push the company to swing to a profit in its last quarter.

The Vancouver-based mining company said Thursday it earned a profit from continuing operations attributable to shareholders of $385 million or 75 cents per share for the quarter ended Dec. 31. The result compared with a loss of $167 million or 32 cents per diluted share in the last three months of 2023.

On an adjusted basis, Teck says it earned 45 cents per diluted share from its continuing operations, up from an adjusted profit of four cents per share a year earlier.

Teck said the record copper production came as the company saw strong performance at its Quebrada Blanca operations in northern Chile.

Price said the boost to copper came in a year that saw the company transform into a pure-play energy transition metals company after it sold off its remaining stake in its steelmaking coal business to Glencore.

Revenue for the quarter totalled $2.8 billion, up from $1.8 billion last year.

Copper production in the quarter amounted to 122,000 tonnes, up from 103,000 a year earlier, while zinc in concentrate totalled 146,000 tonnes, down from 182,000 tonnes. Refined zinc production totalled 62,000 tonnes, down from 70,000 tonnes a year earlier.

The company has used the proceeds from the sale of its coal business to help reduce debt, fund its near-term copper growth, and reward shareholders in the form of buybacks and dividends.

Teck said Thursday that it returned $1.8 billion to shareholders through share buybacks and dividends in 2024, including $549 million in the fourth quarter.

It also said it reduced its debt by US$196 million in the fourth quarter, including a scheduled semi-annual repayment on the Quebrada Blanca project financing facility. Teck said it reduced its debt by US$1.8 billion last year.

This report by The Canadian Press was first published Feb. 20, 2025.