Teck Resources Misses Profit Estimates, Trims Copper Output Forecast; Redoes Permit for Chile Mine Expansion; No Deal with India's JSW Steel

Teck Resources' Q3 profits hit by lower prices for coal and zinc; projected copper output cut amidst permit overhaul for Chilean mine expansion; potential stake sale to India's JSW Steel remains uncertain.

• Teck Resources has withdrawn its environmental permit application to expand a mill at its Quebrada Blanca copper mine in Chile, following feedback from regulators. A revised application will extend the regulatory process by around 12 months.
• The company missed market estimates for Q3 profits, primarily due to lower prices for steelmaking coal and zinc, as well as reduced sales volumes of steelmaking coal and Highland Valley copper.
• Guidance for 2023 copper production has been trimmed, with the expected output ranging from 320,000 to 365,000 tonnes, a decrease from the previously anticipated 330,000 to 375,000 tonnes.
• The expansion of the QB2 copper project in Chile is expected to cost more than initially projected, with the estimated capital cost now standing between $8.6 billion to $8.8 billion from the initially forecast $8.0 billion to $8.2 billion.
• The potential for India's JSW Steel to purchase a stake in Teck Resources remains uncertain according to JSW Steel Chief Executive Jayant Acharya, who stated that discussions with Teck Resources have yielded 'nothing concrete'.

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