Teck Resources Q2 Report: Declining Red Dog Output, Lower Trail Refining with Guidance Unchanged

Published: Jul 24, 2025 18:44

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On July 24th, Canada-based Teck Resources released its Q2 2025 report. Zinc concentrate production at the Red Dog mine reached 136,600 tonnes, slightly lower year-on-year due to declining ore grades, while lead concentrate output remained stable at 27,500 tonnes.

The concentrate shipping season commenced on July 11th. Red Dog's Q2 zinc concentrate sales totaled 35,100 tonnes, down 35% YoY due to timing of sales (e.g., customer scheduling, logistics), though still above the previously disclosed guidance range of 25,000 to 35,000 tonnes. Teck expects the seasonal inventory build-up in the first half to reverse in Q3, and has issued Q3 sales guidance of 200,000–250,000 tonnes for Red Dog zinc concentrate. Annual production guidance remains unchanged at 430,000–470,000 tonnes for zinc and 85,000–105,000 tonnes for lead.

On the refining side, Trail Operations produced 50,900 tonnes of refined zinc in Q2, a 14,000-tonne decline from the same period last year. The reduction aligns with Teck’s previously disclosed plan to optimize profitability amid challenging smelter market conditions. Annual refined zinc production guidance for Trail remains unchanged at 190,000–230,000 tonnes.

Teck also stated it is closely monitoring the evolving U.S. tariff landscape and actively managing its concentrate sales strategy. Refined zinc, lead, and specialty metals exported from Trail to the U.S. comply with the United States-Mexico-Canada Agreement (USMCA).

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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