As the global energy transition accelerates, copper prices have repeatedly hit record highs in 2025. Despite recent share price pullbacks, Canadian mining giant Teck Resources (TSX:TECK.B) is drawing long-term investor attention with its strategic pivot toward copper and zinc—metals critical to the future economy.
In July 2024, Teck completed the sale of its steelmaking coal business, refocusing entirely on “metals of the future,” particularly copper and zinc. This move aligns perfectly with surging copper demand.
LME copper prices have risen 23% from the beginning of 2025, surpassing $11,000/ton, with Goldman Sachs forecasting an 8-million-ton supply deficit by 2030. Meanwhile, Teck’s Quebrada Blanca Phase 2 (QB2) in Chile—a world-class copper asset—boosted Q1 2025 output by 19% to 295,000 tons.
With global zinc inventories at decade lows, Teck’s Red Dog mine supplies 20% of North America’s zinc. RBC’s resource sector head Sam Crittenden notes: “Teck’s zinc operations provide a rare hedge compared to pure-play copper miners.”
Teck’s latest earnings highlight operational strength amid commodity swings, with Q1 2025 revenue reaching C$2.3 billion (+41.4% YoY); adjusted EPS is C$0.60. Management is maintaining C$0.58/share annual payout.
However, its forward P/E of 75x prices in aggressive growth expectations. BMO warns that potential copper price corrections or Chile’s new mining policies could pressure earnings.
Teck QB2’s desalination plant mitigates water risks but still must manage 250 million tons of tailings annually.
TD Securities notes: *”Environmental costs may erode 15% of future EBITDA, but Teck’s emission-reduction tech remains competitive.”
According to industry reports, each EV uses 83kg copper, while renewables infrastructure requires 5x more copper than coal plants.
Teck Resources’ 26 million tons of copper reserves can fulfill 30+ years of production. Morgan Stanley estimates a 10% copper price rise boosts Teck’s EPS by 22%.
At 8.5x 2025E EV/EBITDA (vs. First Quantum Minerals at 10.3x), Teck appears relatively undervalued. As copper solidifies its role as “the new oil,” Teck Resources—with its balanced metal mix and operational scale—remains a compelling pick for long-term commodity investors.
Risks Ahead: Chile’s mining tax reforms could raise costs. China’s property slump may weaken near-term demand. Teck’s net debt ratio of 35% exceeds peers like Rio Tinto.
