April 23 (Reuters) – Teck Resources on Thursday beat analysts’ estimates for first-quarter profit, aided by an increase in copper prices and record sales, while the company’s proposed merger with Anglo American remained on track.
The Canadian miner said it expects the Middle East conflict to push up freight and explosives costs through the second quarter, particularly at its Chilean operations which rely on imported diesel.
Teck and its peers are set to benefit from an expected 50% surge in global copper demand by 2040 on increasing power consumption by data centers to meet artificial intelligence and defense growth.
A sustained need for copper-intensive power, grid, and electronics infrastructure would support stronger long-term prices and volumes.
Average copper prices surged about 36.7% in the first quarter from a year earlier and hit all-time highs late in January on supply constraints, low inventory and strong demand.
Teck said its copper prices averaged $5.83 per pound in the quarter ended March 31, up from $4.24 a year earlier.
Copper production jumped 32% to 140,000 tons.
Production at the Quebrada Blanca mine in Chile increased 31.2% to 55,500 tons amid a ramp-up in operations.
Copper sales jumped 46% to 155,000 tons.
The miner reported adjusted earnings of C$1.75 per share for the quarter. Analysts on an average expected C$1.15 per share, according to data compiled by LSEG.
Teck and Anglo shareholders voted in December for a $53 billion merger, paving the way for the creation of a copper heavyweight if regulators approve.
London-listed Anglo said last month that it expects to get final regulatory approval for the merger between September this year and March 2027.
(Reporting by Pranav Mathur in Bengaluru; Editing by Joyjeet Das)
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