Teck Resources Q2 2026 Earnings Call Transcript

Teck Resources (NYSE: TECK ) released second-quarter financial results and hosted an earnings call on Thursday. Read the complete transcript below. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

2 billion. Copper production increased by 25% year-over-year, contributing to operational and financial stability, with no changes to annual guidance. The company is advancing a merger with Anglo American, focusing on securing regulatory approval and integration planning, expecting completion within 12 to 18 months. Significant progress was made on the QB tailings management facility, with no TMF-related downtime for three consecutive quarters.

The Highland Valley Mine Life Extension project is progressing well, with detailed engineering 95% complete and construction activities ramping up. Full Transcript OPERATOR Ladies and gentlemen, thank you for standing by. Welcome to Teck Resources Ltd's second quarter 2026 earnings release conference call. At this time all participants are in listen-only mode.

Later we will conduct a question and answer session. To join the question queue, please press star then one on your touch-tone phone. Should anyone need assistance during the conference call, they may reach an operator by pressing star then zero on the telephone. This conference call is being recorded on Thursday, July 23, 2026.

I would now like to turn the conference over to Emma Chapman, Vice President, Investor Relations. Please go ahead. Emma Chapman, Vice President, Investor Relations Thank you, operator. Good morning everyone and thank you for joining us for Teck Resources Ltd's second quarter 2026 conference call.

Today's call contains forward-looking statements. Actual results may vary due to various risks and uncertainties. Teck Resources Ltd does not assume the obligation to update any forward-looking statements. Please refer to slide 2 for the assumptions underlying our forward-looking statements.

We will reference non-GAAP measures throughout this presentation. Explanations and reconciliations are in our MD&A and the latest press release on our website. On today's call, Jonathan Price, our CEO, will provide highlights for the second quarter of 2026. Crystal Presti, our CFO, will follow with further details on our operational performance and financials in the quarter.

Jonathan will then wrap up with closing remarks and an opportunity for Q&A. And with that, over to you, Jonathan. Jonathan Price, CEO Thank you, Emma, and good morning everyone. We've delivered another quarter of strong operational and financial performance.

We generated significantly higher earnings and robust cash flow in the second quarter of 2026, supported by favorable commodity prices, including another record quarterly average copper price compared with the same period last year. 2 billion. We also successfully managed our net cash unit costs despite energy cost headwinds, supported by stronger operational performance and favorable by-product pricing. As a result, we increased our net cash position by $756 million during the quarter and $1 billion in the first half of the year.

Alongside this strong financial performance, we continue to make good progress against our near-term priorities. To create shareholder value, we are advancing our merger of equals with Anglo American with our focus on securing the remaining regulatory approval. Meanwhile, integration planning has intensified to ensure we are ready to close shortly after approval is received. Operationally, we continue to build momentum across the business.

Copper production increased by 25% compared with the second quarter of last year. With higher production across all our copper operations coupled with continued strong sales volumes, we are delivering greater operational stability quarter by quarter through our continued focus on safe, reliable and consistent performance, and there are no changes to our previously disclosed annual guidance. Importantly, this strong performance includes QB where we achieved our third consecutive quarter of stable operations, an important step towards realizing the full value of this world-class asset.

During the quarter, we also continued to advance our tailings management facility work at QB, including the completion of Rockbench 5, and I'll return later in the presentation to some of the TMF options currently under evaluation with the potential to further enhance operational continuity. At Highland Valley, we continue to advance the mine life extension project with detailed engineering now approximately 95% complete. Overall, this was another strong quarter that demonstrates disciplined execution across the business, reinforces the quality of our portfolio and positions us well as we move towards completing our merger with Anglo American.

So turning to the merger update on slide 5, the regulatory approval process in China continues to progress as expected and we remain focused on engagement with the regulator. In parallel, integration planning continues to advance. Our teams are working hard to ensure we are fully prepared to close the transaction promptly following receipt of the necessary approvals, while also continuing to develop our plans to capture the significant value creation opportunities available through the combination. Consistent with our original expectations, we continue to anticipate completing the transaction within 12 to 18 months of the September 2025 announcement.

Turning to our focus on safe and stable operational performance beginning with safety on slide 6, during the second quarter,