Teck Resources Limited Class A · TSX:TECK.A
Teck Resources Limited Class A — Corporate Update (September 2019)
20 slides from Teck Resources Limited Class A's corporate update, Sep 4, 2019
Slide 1: Overview
Overview September 4, 2019 Don Lindsay President and Chief Executive Officer
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements Both these slides and the accompanying oral presentations contain certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securit
Slide 3: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements Factors that may cause actual results to vary materially include, but are not limited to, changes in general economic conditions, changes in commodity and power prices, changes in market demand for our products, changes in interest and currency exchange r
Slide 4: A Transformational Time for Teck
A Transformational Time for Teck Milestones Solid Future Value Achieved Foundation Catalysts • QB2 permit received, • Quality operating assets • Positioned for cash returns sanctioning announced, in stable jurisdictions to shareholders partnership closed and • Strong financial position • QB2/QB3 pro
Slide 5: Capital Allocation Framework
Capital Allocation Framework SUSTAINING SUPPLEMENTAL BASE CAPEX SHAREHOLDER DIVIDEND (including stripping) DISTRIBUTIONS The balance of remaining cash is available to finance further enhancement or growth opportunities. Available Cash Flow1 plus at least 30% If there is no immediate need for this ca
Slide 6: Strong Track Record of Returning Cash to Shareholders
Strong Track Record of Returning Cash to Shareholders ~$6.1 billion returned from January 1, 2003 to June 30, 20191 Dividends1 • $4.3 billion since 2003, representing ~27% of free cash flow Share Buybacks1 • $1.8 billion since 2003, representing ~11% of free cash flow 6
Slide 7: QB2 Value Creation
QB2 Value Creation Delivers on Copper Growth Strategy Low Strip Ratio2 • Rebalances Teck's portfolio over time to make QB2 (0.7:1) the contribution from copper similar to steelmaking coal • World class, low cost copper opportunity in an excellent geopolitical jurisdiction Antamina (2.9:1)3 • First p
Slide 8: Accelerating Our RACE21 Innovation-Driven Efficiency Program
Accelerating Our RACE21TM Innovation-Driven Efficiency Program RACE21TM • Looks across the full value chain, from mine to port • Leverages existing, proven technology to improve productivity and lower costs • Focused on delivering significant value by 2021 - 2019: Expansion of programs such as predi
Slide 9: Teck's Performance on Top ESG Ratings
Teck’s Performance on Top ESG Ratings ESG Evaluation Teck’s Performance • Named to 2019 Global 100 Most Sustainable Corporations list by Corporate Knights • Ranked 37th globally; only mining company listed • 2nd in metals and mining universe out of ~60 companies. • “A” rating since 2013 (scale of CC
Slide 10: Low Cost, Low Carbon Producer
Low Cost, Low Carbon Producer • Among world’s lowest GHG intensity for GHG Emissions Intensity Ranges Among steelmaking coal and copper production ICMM Members2 (kgCO2e per tonne of product) • Fort Hills – one of the lowest carbon Copper Coal intensities among North American oil sands producers on a
Slide 11: Responsible Tailings Management
Responsible Tailings Management Teck has a comprehensive systems and procedures in place Further Tailings Governance Steps based on six pillars: 1. Special review by external experts 1. Surveillance 4. Internal Review Technology 5. Detailed Third-Party - Confirmed no immediate or emerging 2. Staff I
Slide 12: A Transformational Time for Teck
A Transformational Time for Teck Future Value Catalysts Positioned For Transformation Growth Through Cash Returns Through Innovation: QB2/QB3 Execution to Shareholders RACE21TM Compelling Value 12
Slide 13: Any questions?
Overview Any questions? 13
Slide 14: Appendix
Appendix Teck
Slide 15: QB2 Project Economics Comparison
QB2 Project Economics Comparison Changes Since Feasibility Study1 Sensitivity Analysis1 2016 FS Reserve Sanction RESERVE CASE8 US$3.00 US$3.25 US$3.50 (Reserves) Case 7 Case 8 Mine Life years 25 28 28 Annual EBITDA (US$B) Throughput ktpd 140 143 143 First 5 Full Years $1.0 $1.2 $1.3 General LOM Mill
Slide 16: QB2 Reserves and Resources Comparison
QB2 Reserves and Resources Comparison Reserve Case (as at Nov. 30, 2018)1,2 Sanction Case (as at Nov. 30, 2018)2,4 Silver Silver Cu Mo Grade Cu Mo Grade RESERVES Mt Grade % Grade % RESERVES Mt Grade % Grade % ppm ppm Proven 476 0.51 0.018 1.40 Proven 409 0.54 0.019 1.47 Probable 924 0.47 0.019 1.25
Slide 17: Notes
Notes Slide 6: Strong Track Record of Returning Cash to Shareholders 1. From January 1, 2003 to June 30, 2019. Free cash flow is a non-GAAP financial measure. See “Non-GAAP Financial Measures” slides. Slide 7: QB2 Value Creation 1. As at January 1, 2019. Assumes optimized funding structure. Does not
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of EBITDA and Adjusted EBITDA Three months ended (C$ in millions) June 30, 2019 Profit attributable to shareholders $ 231 Finance expense net of finance income 62 Provision for income taxes 120 Depreciation and amortization 395 EBITDA $ 808 Add (deduct): De
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of Free Cash Flow 2003 to (C$ in millions) Q2 2019 Cash Flow from Operations $44,743 Debt interest and finance charges paid (5,290) Capital expenditures, including capitalized stripping costs (22,956) Payments to non-controlling interests (NCI) (631) Free C
Slide 20: Overview
Overview September 4, 2019 Don Lindsay President and Chief Executive Officer