Teck Reports Unaudited Fourth Quarter Results for 2023
Press Release
February 21, 2024
Vancouver, B.C. – Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (Teck) today announced its unaudited fourth quarter results for 2023.
“We had strong fourth quarter performance across our business, generating adjusted EBITDA1 of $1.7 billion in the quarter, returning cash to shareholders and advancing ramp-up of our QB Operations, resulting in Teck’s record quarterly copper production,” said Jonathan Price, President and CEO. “We are well positioned to deliver on our strategic priorities in 2024 as we execute on the planned separation of our base metals and steelmaking coal businesses while significantly increasing our copper production.”
Highlights
- Adjusted EBITDA1 was $1.7 billion in Q4 2023 and $6.4 billion for the year, driven by robust prices for steelmaking coal and copper and higher steelmaking coal sales volumes. Profit from continuing operations before taxes was $694 million in Q4 2023 and $3.9 billion for the year.
- Adjusted profit attributable to shareholders1 of $735 million, or $1.41 per share, in Q4 2023 and $2.7 billion, or $5.23 per share, for the year. Profit from continuing operations attributable to shareholders was $483 million, $0.93 per share, in Q4 2023 and $2.4 billion, $4.70 per share, for the year.
- Our liquidity as at February 21, 2024 is $7.9 billion, including $2.5 billion of cash. We generated cash flows from operations of $1.1 billion in Q4, ending the year with a cash balance of $744 million.
- We returned a total of $765 million to shareholders in 2023 through the purchase of $250 million of Class B subordinate voting shares pursuant to our normal course issuer bid, and $515 million paid to shareholders as dividends. Since 2019, we have returned $3.9 billion to shareholders, including $2.5 billion of Class B subordinate voting share buybacks.
- On February 21, 2024, the Board authorized up to a $500 million share buyback, and approved the payment of our quarterly base dividend of $0.125 per share payable on March 28, 2024 to shareholders of record on March 15, 2024.
- We achieved record quarterly copper production in Q4 2023. Production and sales volumes in our copper and zinc business units were higher than the same period last year. Quebrada Blanca (QB) production of copper in concentrate was 34,300 tonnes in the fourth quarter and 55,500 tonnes for the year with QB operating near design throughput capacity at the end of 2023.
- Our steelmaking coal business generated $1.4 billion of gross profit before depreciation and amortization1 in Q4 with strong sales volumes of 6.1 million tonnes and realized steelmaking coal prices that averaged US$270 per tonne.
- On November 13, 2023, we announced a transformational transaction to further focus our portfolio on base metals and copper growth, with the full sale of our steelmaking coal business Elk Valley Resources (referred to as EVR). A majority stake in EVR will be sold to Glencore plc (Glencore) at an implied enterprise value of US$9.0 billion and a minority stake was sold to Nippon Steel Corporation (NSC) and POSCO.
- The transactions with NSC and POSCO closed on January 3, 2024, with NSC paying US$1.3 billion in cash on closing.
- We continued to progress our copper growth portfolio in the fourth quarter with the HVC Mine Life Extension project completing the feasibility study and submitting the permit application to the British Columbia regulatory agencies in October 2023, and permit submission to the Mexican regulatory authorities for San Nicolás in January 2024.
Note:
1. This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
Financial Summary Q4 2023
IBF4
