The majority of Teck Resources' copper is exported to Asia and Europe, with the mining company having minimal exposure in the United States.CHRIS HELGREN/Reuters
Canadian miner Teck Resources Ltd. TECK-B-T beat second-quarter profit estimates on Thursday, helped by improved profitability at its Trail operations.
Teck’s Trail operations, located in British Columbia, is one of the world’s largest fully integrated zinc and lead smelting and refining complexes, according to the company website.
The company reported an adjusted profit of 38 cents per share for the quarter ended June 30, compared with analysts’ average estimate of 27 cents per share, according to LSEG data.
Teck said London Metal Exchange (LME) copper prices declined by two per cent in the June quarter compared with a year earlier and averaged $4.32 per pound.
The company produced 109,100 metric tons of copper in the reported quarter, and cut its full-year copper production guidance to 470,000 tons from 525,000 tons.
Teck expects to produce 525,000 tons to 575,000 tons of zinc in the current year.
The results come against the backdrop of U.S. President Donald Trump’s threat to impose a 50 per cent tariff on copper imports, starting Aug. 1.
Teck exports the vast majority of its copper to Asia and Europe.
Trump’s proposed 50 per cent tariff on U.S. copper imports is unlikely to directly impact Teck, given its minimal exposure to the U.S. market. However, the tariff could tighten global supply and push prices higher, indirectly boosting Teck’s revenue and margins.