Company Reports

Copper trades near historical highs at about USD 6.50 per pound, up 10% since our July 2026 update, given mine supply disruptions and tariff-related trade distortions. Zinc and aluminum prices are also stronger, though near-term iron ore futures are little changed.

China plays a defining role for Teck Resources as the biggest buyer of everything the company digs out of the ground: copper, zinc, and lead. With the exception of lead, demand for these commodities is tied to fixed-asset investment. We expect a rebalancing of China's economy from investment to household consumption will mean weaker demand growth for investment-oriented commodities and lower prices.

Teck's 2026 second-quarter adjusted NPAT of CAD 948 million, or CAD 1.93 per share, increased fivefold from a year ago, mainly due to increased copper prices and volumes. However, the CAD 0.125 quarterly dividend stands, due to its upcoming all-equity merger with Anglo American to form Anglo Teck.

China plays a defining role for Teck Resources as the biggest buyer of everything the company digs out of the ground: copper, zinc, and lead. With the exception of lead, demand for these commodities is tied to fixed-asset investment. We expect a rebalancing of China's economy from investment to household consumption will mean weaker demand growth for investment-oriented commodities and lower prices.

The copper price is broadly unchanged on last quarter, trading around USD 6 per pound, near historical highs. The iron ore price continues to trade in a narrow range and at around USD 100 per metric ton is also flat as Chinese imports remain strong despite falling steel production.

China plays a defining role for Teck Resources as the biggest buyer of everything the company digs out of the ground: copper, zinc, and lead. With the exception of lead, demand for these commodities is tied to fixed-asset investment. We expect a rebalancing of China's economy from investment to household consumption will mean weaker demand growth for investment-oriented commodities and lower prices.

Stronger commodity prices and improved sales volumes led to Teck's 2026 first-quarter adjusted NPAT nearly tripling from a year ago, to CAD 860 million, or CAD 1.75 per share. But the CAD 0.125 quarterly dividend it declared is unchanged due to its upcoming merger with Anglo American.

China plays a defining role for Teck Resources as the biggest buyer of everything the company digs out of the ground: copper, zinc, and lead. With the exception of lead, demand for these commodities is tied to fixed-asset investment. We expect a rebalancing of China's economy from investment to household consumption will mean weaker demand growth for investment-oriented commodities and lower prices.

The iron ore price is broadly flat compared with last quarter. While China's steel production in the first quarter of 2026 is down 5% year on year to about 250 million metric tons, its iron ore imports are up 11% to around 315 million metric tons.

China plays a defining role for Teck Resources as the biggest buyer of everything the company digs out of the ground: copper, zinc, and lead. With the exception of lead, demand for these commodities is tied to fixed-asset investment. We expect a rebalancing of China's economy from investment to household consumption will mean weaker demand growth for investment-oriented commodities and lower prices.

China plays a defining role for Teck Resources as the biggest buyer of everything the company digs out of the ground: copper, zinc, and lead. With the exception of lead, demand for these commodities is tied to fixed-asset investment. We expect a rebalancing of China's economy from investment to household consumption will mean weaker demand growth for investment-oriented commodities and lower prices.

Teck's 2025 fourth-quarter earnings were very strong, driven by the rising copper price, with adjusted EBITDA up 80% on a year earlier, to CAD 1.5 billion. Full-year 2025 adjusted EBITDA rose about 50% to CAD 4.3 billion. The quarterly dividend of CAD 0.125 per share is unchanged.

The iron ore price is up on last quarter as China's imports remain strong despite its steel production falling below 1 billion metric tons in 2025 for the first time since 2019. Its anti-involution campaign is reducing overcapacity, mainly via the closure of smaller, less efficient steelmakers.

China plays a defining role for Teck Resources as the biggest buyer of everything the company digs out of the ground: copper, zinc, and lead. With the exception of lead, demand for these commodities is tied to fixed-asset investment. We expect a rebalancing of China's economy from investment to household consumption will mean weaker demand growth for investment-oriented commodities and lower prices than the favorable 2023 levels.

The respective shareholder meetings to approve the proposed "merger of equals" between Anglo American and Teck to form Anglo Teck are scheduled for Dec. 9, 2025. The deal is also subject to approval by Canadian and other regulators.

Teck's 2025 third-quarter adjusted EBITDA of CAD 1.2 billion is around 20% higher than the same period last year, driven by increased copper and zinc prices. It declared a CAD 0.125 per share quarterly base dividend, but unlike a year ago, no additional special dividend will be paid.

The iron ore price has shrugged off re-escalation of the trade war between the United States and China, though copper is down moderately in response. Both are up about 10% since the last quarterly update of our assumed commodity prices.

China plays a defining role for Teck Resources as the biggest buyer of everything the company digs out of the ground: copper, zinc, and lead. With the exception of lead, demand for these commodities is tied to fixed-asset investment. We expect a rebalancing of China's economy from investment to household consumption will mean weaker demand growth for investment-oriented commodities and lower prices than the favorable 2023 levels.

Anglo has agreed to buy Teck to form copper-focused Anglo Teck, with iron ore and zinc its other major businesses. Teck shareholders will receive 1.3301 shares in Anglo, or a Canadian subsidiary, for each Teck share. Anglo also plans to pay a premerger USD 4.19 (GBX 310) special dividend.

China plays a defining role for Teck Resources as the biggest buyer of everything the company digs out of the ground: copper, zinc, and lead. With the exception of lead, demand for these commodities is tied to fixed-asset investment. We expect a rebalancing of China's economy from investment to household consumption will mean weaker demand growth for investment-oriented commodities and lower prices than the favorable 2023 levels.