38 slides from Teck Resources Limited Class A's earnings presentation, Apr 27, 2022
Slide 1: First Quarter 2022 Results
First Quarter 2022 Results April 27, 2022
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements Both these slides and the accompanying oral presentation contain certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to as forward-looking statements). These statements relate
Slide 3: Q1 2022 Highlights
Q1 2022 Highlights Record financial performance • Quarterly record adjusted EBITDA of $3.0B, >3x higher than Q1 2021 • Record profit before taxes of $2.5B • Adjusted diluted EPS of $2.96; diluted EPS of $2.87 Strengthened balance sheet • Repaid US$150M in debt and returned significant cash • Returne
Slide 4: Announced Further US$500M Share Buyback
Announced Further US$500M Share Buyback Record Quarterly Profitability ($M) Debt Repayment and Cash Returns to Shareholders Q1 2022 Q1 2021 Debt Repayment Gross Profit • Redeemed US$150M, maturing 4.75% notes Copper $ 451 $ 366 Dividends $437M • Paid out $0.625 per share, or $337M, consisting of: Zi
Slide 5: Operations Overview
Operations Overview Global Metals and Mining Conference 5
Slide 6: Copper Business Unit
Copper Business Unit Q1 2022 operating overview Q1 2021 Q1 2022 72 69 EBITDA 67 67 523 4.51 EBITDA 105 D&A 3.92 418 96 35 Net Finance Expense 27 1.38 1.41 383 Profit before Tax 295 Production Sales Realized Copper Price Net Cash Unit Costs Profitability (kt) (kt) (US$/lb) (US$/lb) ($M) Q1 2022 vs Q1
Slide 7: Zinc Business Unit
Zinc Business Unit Q1 2022 operating overview Q1 2021 Q1 2022 145 132 EBITDA 120 1.65 298 104 58 D&A 1.25 12 Net Finance EBITDA 74 Expense 69 70 69 174 46 0.60 11 228 Profit before Tax 0.46 117 Refined Concentrate Refined Concentrate Realized Zinc Price Net Cash Unit Costs Profitability Production (
Slide 8: Steelmaking Coal Business Unit
Steelmaking Coal Business Unit Q1 2022 operating overview EBITDA Q1 2021 Q1 2022 357 2,095 252 D&A 6.2 22 Net Finance 5.9 6.0 Expense 5.6 131 123 1,821 Profit before Tax 102 EBITDA 46 Transportation 41 415 Adjusted Site 216 63 77 Cash Cost 21 Other -2 of Sales 178 Production Sales Realized Price Uni
Slide 9: Energy Business Unit
Energy Business Unit Q1 2022 operating overview Q1 2021 Q1 2022 4.2 93 EBITDA 3.1 119 2.3 34 D&A 50 41 1.8 37 6 Net Finance EBITDA Expense -20 79 Profit before Tax 20 7 -47 Production Sales Blended Bitumen Price Adjusted Operating Costs Profitability (Mbbls) (Mbbls) Realized ($/bbl) ($/bbl) ($M) Q1
Slide 10: Executing our Copper Growth Strategy Through QB2
Executing our Copper Growth Strategy Through QB2 Over 82% complete and delivering to key milestones Focus remains on completion of key facilities for first copper from Line 1 in Q4 2022 • Completed the power transmission line tower construction • Launched and placed the final seawater intake pipe •
Slide 11: QB2 Photo Tour
QB2 Photo Tour QB2 Port Offshore Preparing to launch second seawater intake pipe Global Metals and Mining Conference March 2022 11
Slide 12: QB2 Photo Tour
QB2 Photo Tour QB2 Port Onshore Desalination plant and electrical room placement Global Metals and Mining Conference February 2022 12
Slide 13: QB2 Photo Tour
QB2 Photo Tour QB2 Pipelines Preparing for the hydrotesting phase of the water supply pipeline Global Metals and Mining Conference April 2022 13
Slide 14: QB2 Photo Tour
QB2 Photo Tour QB2 Crushing and Conveying Primary Crusher concave mounting Global Metals and Mining Conference February 2022 14
Slide 15: QB2 Photo Tour
QB2 Photo Tour QB2 Crushing and Conveying Overland conveyor transfer station Global Metals and Mining Conference February 2022 15
Slide 16: QB2 Photo Tour
QB2 Photo Tour QB2 Concentrator Area Ore stacker structure and stockpile dome assembly Global Metals and Mining Conference March 2022 16
Slide 17: QB2 Photo Tour
QB2 Photo Tour QB2 Concentrator Area Stacker structure and grinding building in background, flotation area in foreground Global Metals and Mining Conference February 2022 17
Slide 18: QB2 Photo Tour
QB2 Photo Tour QB2 Tailings Management Facility Cyclone station Global Metals and Mining Conference March 2022 18
Slide 19: QB2 Photo Tour
QB2 Photo Tour QB2 Tailings Management Facility Starter dam and lined impoundment Global Metals and Mining Conference 19
Slide 20: Financial Overview
Financial Overview Global Metals and Mining Conference 20
Slide 21: Strong Commodity Prices and Record Financial Performance
Strong Commodity Prices and Record Financial Performance Relative Performance since January 20211 Steelmaking Coal +353% WCS +169% Zinc +65% Copper +31% Global Metals and Mining Conference Jan 21 Feb 21 Mar 21 Apr 21 May 21 Jun 21 Jul 21 Aug 21 Sep 21 Oct 21 Nov 21 Dec 21 Jan 22 Feb 22 Mar 22 Apr 22
Slide 22: Quarterly Financial Performance
Quarterly Financial Performance Profitability ($M) Profit before Tax Net Finance Expense D&A Adjustments Non-controllable Controllable Adjusted EBITDA 2,118 (174) 103 (44) 97 (23) $3,044 96 449 49 Adjusted EBITDA $967 37 2,450 378 51 501 Global Metals and Mining Conference Q1 2021 Price Cost Inflati
Slide 23: Cash Flow from Operations Drives Strong Cash Position
Cash Flow from Operations Drives Strong Cash Position Key Cash Changes in Q1 2022 ($M) 162 (867) 169 370 2,323 (233) (337) (90) (236) (111) (112) 2,465 1,427 Opening cash Cash flow from Proceeds from Issuance of Total SMM/SC PP&E Capitalized Dividends paid Purchase and Redemption, Interest and Other
Slide 24: Financial Strength
Financial Strength Strong Balance Sheet Debt Maturity Ladder2 (US$M) Liquidity1 Net Debt to Adjusted EBITDA2 Credit Rating1 No significant maturities prior to 2030 $8.0B 0.6x Investment 609 795 grade 550 490 399 377 108 Track Record of Significant Cash Returns to Shareholders3 2033 2042 2022 2023 20
Slide 25: Capital Allocation Framework
Capital Allocation Framework Cash Flow Sustaining Base Supplemental from Operations Capital Dividend Shareholder Distributions after interest and finance charges, including stripping $0.50 per share minimum 30% available cash flow RETURNS lease payments and distributions to non-controlling interests
Slide 26: Capital Investments
Capital Investments Capital Investments Profile ($M) QB2 (100%) Growth Capitalized Stripping Sustaining 6,000 Reduction of ~$2 billion for 2023 driven by: 5,000 • Significantly lower QB2 capex 2,200 2,580 to • Decline in capitalized stripping 2,500 4,000 towards historical levels • Decline in sustai
Slide 27: Summary
Summary Global Metals and Mining Conference 27
Slide 28: Driving Long-Term Sustainable Shareholder Value
Driving Long-Term Sustainable Shareholder Value Industry leading Rebalance portfolio copper growth of high-quality assets Long-term to low-carbon metals sustainable shareholder value Balance growth Leadership and cash returns in ESG and to shareholders operational excellence Global Metals and Mining
Slide 29: Appendix
Appendix Global Metals and Mining Conference 29
Slide 30: Production Guidance
Production Guidance Production (000’s tonnes except as noted) 2021 Actual 2022 Guidance1 3-Year Guidance1 (2023-2025) Copper2,3,4 Highland Valley 130.8 127-133 130-160 Antamina 100.2 91-96 90-95 Carmen de Andecollo 44.8 45-50 50-60 Quebrada Blanca6 11.5 10-11 245-300 Total copper6 287.3 273-290 515-
Slide 31: Sales and Unit Cost Guidance
Sales and Unit Cost Guidance Sales Unit Costs Q1 2022 Actual Q2 2022 Guidance1 2021 Actual 2022 Guidance1 Zinc in concentrate Copper2 (US$/lb) Total cash unit costs 1.80 1.85-1.95 Red Dog (kt) 145 50-70 Net cash unit costs 1.39 1.40-1.50 Steelmaking coal (Mt) 6.0 6.3-6.7 Zinc3 (US$/lb) Total cash un
Slide 32: Capital Expenditures Guidance
Capital Expenditures Guidance Sustaining and Growth Capital (Teck’s share in C$ millions) QB2 Capital Expenditures (Teck’s share in C$ millions) 2021 2022 2021 2022 Actual Guidance1 Actual Guidance1 Sustaining QB2 capital expenditures $ 2,580 $ 2,200 - 2,500 Copper $ 184 $ 340 Total before SMM/SC co
Slide 33: Water Treatment Guidance
Water Treatment Guidance Steelmaking Coal Capital Expenditures and Operating Costs Related to Water Treatment 1 Long-Term 2021 2022 3-Year Guidance Guidance3 (C$ millions, unless otherwise noted) Actual Guidance (2022-2024) (C$/tonne) Capital Expenditures Sustaining capital (water management and wat
Slide 34: Settlement Pricing Adjustments
Settlement Pricing Adjustments Simplified Settlement Pricing Adjustment Model (Pre-tax settlement pricing adjustment in C$M) 220 Q1 2022 Outstanding at Outstanding at Quarterly Pricing 170 March 31, 2022 December 31, 2021 Adjustments 120 Mlbs US$/lb Mlbs US$/lb C$M 70 Copper 191 $ 4.71 156 $ 4.42 $
Slide 35: Endnotes
Endnotes Slide 21: Strong Commodity Prices and Record Financial Performance Slide 32: Capital Expenditures Guidance 1. Source: Factset, Argus, Bloomberg. As at April 22, 2022. 1. As at April 26, 2022. See Teck’s Q1 2022 press release for further details. 2. Steelmaking coal 2022 sustaining capital g
Slide 36: Non-GAAP Financial Measures and Ratios
Non-GAAP Financial Measures and Ratios Global Metals and Mining Conference 36
Slide 37: Non-GAAP Financial Measures and Ratios
Non-GAAP Financial Measures and Ratios Our financial results are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. This presentation includes reference to certain non-GAAP financial measures and non-GAAP ratios,
Slide 38: First Quarter 2022 Results
First Quarter 2022 Results April 27, 2022