The chief executive of mining giant Teck Resources Ltd. says the threat of a global economic downturn may be looming, but he’s expecting the volatility to drive up demand for the copper and zinc it produces.
“These metals are essential for global manufacturing and development, industrial policy and national security, electrification infrastructure, as well as the growth of the digital economy,” Jonathan Price told analysts on a conference call Thursday to discuss the company’s first-quarter results.
The United States has thrown global trade into chaos with its on-again, off-again tariffs, and other countries have retaliated, raising the spectre of a global economic slowdown.
Price said many economies are now looking to shore up their industrial sectors amid the turbulence.
“For example, defence spending may be significantly broadened to include areas central to economic resilience, such as upgrades to and expansion of electricity grids, which remain central to copper demand,” he said.
“We see this providing a medium-term boost to metals demand as the world enters into a state-backed, more capital intensive phase of growth.”
Price said Teck’s copper and zinc concentrate are sold in Asia and Europe, so they are not directly affected by U.S. tariffs. But production from its Red Dog mine in Alaska is subject to Chinese tariffs on U.S. exports, representing less than a fifth of its zinc and lead concentrate sales, Price said.
“We have successfully developed a regionally diverse customer base, which gives us greater optionality while trade negotiations are ongoing,” he said.
The Vancouver-based company completed the sale of its steelmaking coal business last summer.
Teck said there were challenges during the first quarter at the Quebrada Blanca copper mine located high in the mountains of northern Chile. There was an 18-day shutdown for maintenance and reliability work, as well as a countrywide power outage and bad weather. Teck holds 60 per cent of QB, alongside Japanese and Chilean partners.
As a result of the issues at QB, the company expects 2025 copper production to come in at the low end of its forecast range of 230,000 and 270,000 tonnes and costs to be at the higher end of its forecast range of US$1.80 to US$2.15 per pound.
Also Thursday, Teck said higher commodity prices and copper sales volumes boosted its first-quarter profit as its revenue rose.
Profit from continuing operations attributable to shareholders amounted to $370 million or 73 cents per diluted share for the quarter ended March 31, compared with a loss of $125 million or 24 cents per diluted share in the same quarter last year.
On an adjusted basis, Teck says its profit from continuing operations amounted to 60 cents per diluted share for its latest quarter, compared with an adjusted loss of a penny per diluted share a year earlier.
Revenue for the quarter totalled $2.29 billion, up from $1.62 billion.
The company’s realized copper price for the quarter was US$4.27 per pound, up from US$3.86 a year earlier, while it realized US$1.28 per pound for zinc, up from US$1.12 in the same quarter last year.
This report by The Canadian Press was first published April 24, 2025.
Companies in this story: (TSX:TECK.B)
