Teck made a gross profit of $202 million at its Trail smelter in the second quarter of this year, up from $42 million for the same period of last year.
According to the company’s earnings report out today, the local performance contributed to an overall second-quarter gross profit of $1.6-billion, compared to $471 million last year.
Teck said the increased earnings were driven by higher commodity prices and “continued focus on cash flow generation through our optimized feed strategy at our Trail operations.”
That strategy has seen the company using up on-site residue rather than buying new feed stock on the open market.
Refined zinc production in Trail was 49,800 tonnes in the second quarter, down 1,100 tonnes from last year, while lead production stood at 16,300 tonnes, down from 2,700 tonnes in 2025, due to scheduled maintenance. Production of silver and germanium was also down.
The company said refined zinc production is expected to increase in the third quarter. Further maintenance shutdowns are expected in the zinc and lead plants in the fourth quarter.
Teck said it spent $25 million on improving its plant and equipment in Trail between April and June. That including shutting down the lead plant. Second quarter operating costs stood at $163 million, up 17 per cent from last year due to increased contractor and maintenance costs.
The second quarter was highlighted by the announcement that the federal government is investing $400 million to expand the Trail smelter’s production capacity of germanium, gallium, and antimony.
The deal gives the government an equity-like stake which will pay out royalties on the products made in Trail.
The overall project, which is expected to cost $850 million, will take place over five to six years.
In the background is a looming merger between Teck and Anglo American. Although approved by the federal government last year, Teck says the deal remains subject to regulatory approvals and other closing conditions.
“The parties continue to work collaboratively toward securing the required approvals, progressing integration planning, and advancing the transaction to completion,” Teck said in the earnings report.
