Teck Resources Faces Extreme Weather Challenges but Maintains Production Targets

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Teck Resources navigates significant weather challenges in Q3 2026 while upholding production targets and reporting increased profits.

Teck Resources Ltd. faced a series of extreme weather events during the third quarter, from the wildfires in British Columbia to heavy snowstorms in the Andes of Chile. Despite these challenges, the company remains committed to meeting its production targets for the year. "The weather we encountered in the third quarter serves as a stark reminder of the tangible effects of climate change and underscores the importance of building resilience into our operations," stated Jonathan Price during a conference call with analysts to discuss the latest financial outcomes and future projections. Teck is proactively adjusting its planning strategies and operational assumptions to better address climate-related risks, taking into account a variety of potential scenarios.
In Chile, Teck and its partners faced severe rainfall and flooding at the Carmen de Andacollo mine, located near the southern boundary of the Atacama Desert, one of the driest regions globally. Additionally, the high-altitude Quebrada Blanca copper mine experienced significant disruptions due to high winds and snow, leading to intermittent power outages. In British Columbia, the company dealt with reduced water levels caused by drought conditions and an extended wildfire season.
At Carmen de Andacollo, Teck anticipates that annual production will fall at the lower end of its guidance, estimated between 45,000 and 55,000 tonnes. For the Quebrada Blanca site, the production forecast for 2026 remains steady at 200,000 to 235,000 tonnes. In contrast, the Highland Valley Copper mine in British Columbia is expected to achieve production closer to the upper end of its target range of 115,000 to 135,000 tonnes, despite facing a strike initiated over the weekend, as noted by chief financial officer Crystal Prystai. Approximately 1,200 workers represented by the United Steelworkers have ceased work, resulting in reduced operational capacity at the mine.
Price commented on the labor dispute, stating, "The effect on production will depend on how long the strike lasts; however, we do not foresee any significant delays to the construction timelines associated with the mine life extension project." Currently, this extension project is one-quarter completed and is aligning with its overall capital budget, which ranges between $2.1 billion and $2.4 billion. This initiative aims to prolong the mine's operational life until 2046, extending beyond its original closure date of 2028.
In a significant development, Teck has partnered with London-based Anglo American PLC to form a major global copper entity, with plans to finalize the deal within 12 to 18 months. Price confirmed that this timeline is still on track, with one of the last significant hurdles being approval from China’s competition regulator. Teck is actively responding to the regulator's requests for information.
The newly merged entity will maintain its headquarters in Vancouver and will operate under the name Anglo Teck. In its financial performance, Teck reported a substantial increase in profits for the third quarter, aided by rising copper and zinc prices. The profit attributable to shareholders reached $1.59 billion, translating to $3.24 per diluted share, a significant rise from $281 million or 57 cents per diluted share in the same quarter of the previous year. Adjusted earnings for the quarter were reported at $1.88 per diluted share, up from 76 cents per diluted share a year prior, with total revenue for the quarter amounting to $4.52 billion, compared to $3.39 billion in the third quarter of 2025.
The strong commodity pricing observed year-to-date has prompted Teck to revise its 2026 cost guidance downwards. The projected net unit copper costs are now anticipated to range from US$1.80 to US$2 per pound, revised from earlier estimates of US$1.85 to US$2.20. Additionally, net zinc unit costs are expected to decrease to 30 to 40 cents US per pound from the previous range of 65 to 75 cents US.

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