By Robb M. Stewart

Teck Resources again scaled back its copper production target for the year despite record output in the recent quarter, after facing setbacks at its Highland Valley mine in western Canada.

On copper guidance:

The Canadian miner said Thursday it now expects annual copper production of between 420,000 and 455,000 metric tons, where it previously was anticipating 435,000 to 500,000 tons for 2024. In April, the target was 465,000 to 540,000 tons for the year.

Teck's expectations for Highland Valley in British Columbia were cut due to a delay in mining the mine's Lornex pit because of what the company said were challenges with labor availability and the autonomous systems for new haul trucks. This has largely been resolved, and more ore is expected to be processed from the Lornex put in the final quarter of the year, Teck said.

The company also lowered the top end of its production guidance for its Quebrada Blanca mine in northern Chile, and it now expects output of between 200,000 and 210,000 tons from the as much as 235,000 tons forecast by Teck in July. For 2025, Teck expects Quebrada Blanca copper production of 240,000 to 280,000 tons.

On zinc and molybdenum guidance:

Teck, which in July completed the sale of its remaining coal operations to Glencore for $7.3 billion in cash, continues to expect zinc production in 2024 of between 565,000 and 630,000 tons. However, it now projects refined zinc output at its Trail operation in British Columbia will be 240,000 to 250,000 tons due to a localized fire in the electrolytic zinc plant in September, down from 275,000 to 290,000 it previously expected.

Molybdenum production for 2024 has been reduced by 1,300 to 1,500 tons to a target of 3,000 to 4,000 tons due to lower production at Highland Valley Copper and Quebrada Blanca.

With efforts to improve copper recovery and equipment reliability extending into the first half of next year, Teck said it expects Quebrada Blanca molybdenum production next year of between 4,000 and 5,500 tons, against 800 to 1,200 tons anticipated in 2024.

On 3Q production:

Teck produced 114,500 tons of copper in the third quarter, up from 110,400 tons in the prior three months.

Production at Quebrada Blanca continued to ramp-up in the latest quarter, rising to 52,500 tons from 51,300 the quarter before, and the company said it expects to be operating at full throughput rates by the end of 2024.

Copper prices remained strong in the third quarter, averaging $4.18 a pound and closing the quarter at $4.43. Copper averaged $4.42 in the second quarter.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

October 24, 2024 07:38 ET (11:38 GMT)

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