Teck Resources Limited (TSX: TECK, NYSE: TECK) has commenced consent solicitations for six series of its outstanding notes to amend certain covenants and events of default in alignment with Anglo American plc’s debt indenture. The move supports the ongoing merger process between Teck and Anglo American, which is expected to close between September 2026 and March 2027. While the completion of the merger is not a condition for the effectiveness of these consents, the amendments are designed to streamline the combined entity’s capital structure post-transaction.

The consent solicitations cover the following series of affected notes:

Each consent solicitation expires at 5:00 p.m., New York City time, on August 11, 2026, unless terminated or extended by Teck. The solicitation is conditioned on receiving consents from holders representing at least a majority in principal amount of each respective series as of the record date, July 31, 2026. Upon satisfaction of conditions, Teck will pay a consent fee of U.S. $1.00 for each U.S. $1,000 principal amount of notes for which a valid consent is delivered and not revoked.

Strategic Alignment and Guarantees

The proposed amendments seek to harmonize Teck’s debt terms with those of Anglo American, facilitating smoother integration following the merger. If approved, Anglo Teck — the surviving entity after the merger — may elect to provide a full and unconditional guarantee of Teck’s payment obligations under the affected notes. However, this guarantee is not mandatory and would not be expected prior to the consummation of the merger.

Should Anglo Teck provide such a guarantee, it would replace Teck’s current periodic reporting obligations under U.S. Securities and Exchange Commission (SEC) rules and Canadian securities laws with reports filed under the UK Disclosure Guidance and Transparency Rules (UK DTR) or with the SEC, as applicable. This shift would simplify compliance requirements for the combined group but remains contingent on the guarantee being issued.

What the Numbers Show

The total principal amount subject to these consent solicitations exceeds U.S. $1 billion across six distinct maturities ranging from 2030 to 2043. By offering a standardized consent fee of U.S. $1.00 per U.S. $1,000 principal, Teck is incentivizing holder participation without altering the fundamental economic terms of the debt. The absence of a merger contingency for the consent fees suggests management’s confidence in completing the transaction within the stated timeline, while also providing flexibility if regulatory hurdles delay closure.

Barclays Capital Inc., BofA Securities, Inc., and TD Securities (USA) LLC serve as solicitation agents, with Global Bondholder Services Corporation acting as information and tabulation agent. Investors seeking additional details should refer to the Consent Solicitation Statement dated August 3, 2026.

Teck Resources Limited reported a significant increase in net profit for the second quarter of 2026, reaching $854 million compared to $206 million in the same period last year. This growth was driven by record copper prices averaging US$6.05 per pound and a 25% increase in copper production volumes to 135,900 tonnes. The company's Adjusted EBITDA rose 204% to $2.2 billion, supported by strong operational performance across its copper and zinc segments.

Jonathan Price, President and CEO, attributed the results to continued strong copper sales volumes, a favourable commodity price environment, and disciplined execution across operations. He highlighted that the Quebrada Blanca (QB) operation achieved its third consecutive quarter of stable performance, demonstrating progress in strengthening reliability at one of the world’s most important new copper operations.

Financial Performance

The company generated revenue of $3,605 million in Q2 2026, up from $2,023 million in Q2 2025. Adjusted profit attributable to shareholders was $948 million, or $1.93 per share, compared to $187 million, or $0.38 per share, in the prior year. Cash flow from operations totaled $1.7 billion, increasing the net cash position by $756 million to a liquidity of $10.3 billion, which includes $6.1 billion of cash.

Operational Highlights

The copper segment generated gross profit before depreciation and amortization of $1.8 billion, compared to $673 million in the same period last year, primarily due to record copper prices and higher production. Copper net cash unit costs decreased to US$1.64 per pound from US$2.02 per pound. QB produced 55,800 tonnes of copper in the quarter, with quarterly sales of 57,600 tonnes, reflecting higher production and strong logistics performance.

The zinc segment generated gross profit before depreciation and amortization of $353 million, compared to $159 million in the prior year, driven by higher commodity prices and an optimized feed strategy at Trail Operations. Gross profit from the zinc segment was $329 million.

Strategic Developments

Teck, Canada Growth Fund Inc. and Natural Resources Canada announced the signing of a Strategic Investment Agreement on July 7, 2026, to support the possible expansion of production capacity for germanium, gallium, and antimony at Trail Operations.

Regarding the proposed merger of equals with Anglo American plc, the companies announced that the transaction remains subject to customary closing conditions and regulatory approvals. The merger is expected to deliver annual pre-tax synergies of approximately US$800 million.

Guidance

Teck maintained its previously disclosed guidance for 2026. The company expects Red Dog zinc in concentrate sales to be between 220,000 and 270,000 tonnes in the third quarter of 2026. Copper production guidance for the full year remains between 455,000 and 530,000 tonnes, while zinc production guidance is set between 410,000 and 460,000 tonnes.