Teck Resources Limited Class A · TSX:TECK.A
Teck Resources Limited Class A — Non-Deal Roadshow (March 2020)
161 slides from Teck Resources Limited Class A's roadshow presentation, March 2020
Slide 1: Investor Meetings March 3-6, 2020
Investor Meetings March 3-6, 2020
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 expected production and operating results, and are based on current commodity price assumptions and forecast sale volumes. Payment of dividends is in the discretion of the board of directors. Assumptions regarding QB2 include current project assumptions a
Slide 4: Our Key Priorities
Our Key Priorities • QB2 is a long-life, low-cost operation with major Cost Reduction expansion potential Program4 • Rebalances our portfolio over time Neptune • QB3 has potential to become a top five global copper RACE21TM 3 producer • Accelerating RACE21TM our innovation-driven business QB22 trans
Slide 5: 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 6: RACE21
RACE21TM Our innovation-driven business transformation program • Implementing existing, proven technology RACE21TM Future Path to Value across the mining value chain to improve Targeting total of $1 billion of annualized EBITDA2 improvements by end 2021 productivity and lower costs Annualized EBITDA
Slide 7: Neptune Facility Upgrade
Neptune Facility Upgrade • Secures a long term, low cost and reliable supply chain for our steelmaking coal business • Facilitates market access through all cycles • Significant returns generated from lower operating costs and increased flexibility to respond to market opportunities • Expected compl
Slide 8: Cost Reduction Program
Cost Reduction Program Implemented in Q3 2019 in response to global economic uncertainty • Increased our total targeted reductions to ~$610 million of previously planned spending through the end of 2020, vs. the previous target of $500 million - In Q4 2019, achieved ~$210 million of capital and oper
Slide 9: Preparing for the Future in Steelmaking Coal
Preparing for the Future in Steelmaking Coal Production1 (Million tonnes) Adjusted Site Cost of Sales1,2 (C$/tonne) 2020 guidance reflects rail and port constraints, Neptune Unit costs expected to fall shutdown, extreme weather, and record site inventories with higher production from Q4 2020 26.0-27
Slide 10: Focus on Sustainability Leadership
Focus on Sustainability Leadership Teck’s performance on top ESG ratings • Top-ranked mining • “A” rating since 2013 • Tied for 2nd in mining company 2019 World & (scale of CCC – AAA) & metals category North American Indices • Outperforming all 10 of our • Ranked in the 100th • In the index for 10 l
Slide 11: Low-Carbon Producer
Low-Carbon Producer Well positioned for Low-Carbon GHG Emissions Intensity Ranges Economy Among ICMM Members1 (kgCO2e per tonne of product) Carbon pricing already built into Steelmaking majority of business Copper Coal 9 175 Among world’s lowest GHG 150 intensities for steelmaking coal and copper pr
Slide 12: Carbon Neutral Operator by 2050
Carbon Neutral Operator by 2050 • Demonstrates Teck’s support of the transition to a low-carbon economy and worldwide efforts to meet the goal of the Paris Agreement to limit global temperature increase • Aligns with commitments by Canada and Chile to be carbon neutral by 2050 • Teck has set out an
Slide 13: International Council on Mining & Metals
International Council on Mining & Metals Global Tailings Review: ICMM Mining Principles Launched • Co-convened by ICMM, UN Environment 1. What are ICMM’s Mining Principles? Programme & Principles - Define what good practice in environmental, for Responsible social and governance looks like for indus
Slide 14: Strong Financial Position
Strong Financial Position • ~C$5.8 billion1 of liquidity; including $532 million1 Note Maturity Profile4 (C$M) in cash Notes outstanding reduced from • US$4.0 billion committed revolving credit facility US$7.2 billion in September 2015 to US$3.2 billion2 recently extended to November 2024 1,200 • In
Slide 15: A Perfect Storm
A Perfect Storm • Coronavirus • QB2 project update • Neptune facility upgrade • Lower coal production in H1 2020 • Q1 2020 logistics challenges • Frontier • ESG: Climate change and steelmaking coal 14
Slide 16: Our Key Priorities
Our Key Priorities • QB2 is a long-life, low-cost operation with major Cost Reduction expansion potential Program4 • Rebalances our portfolio over time Neptune • QB3 has potential to become a top five global copper RACE21TM 3 producer • Accelerating RACE21TM our innovation-driven business QB22 trans
Slide 17: Appendix
Appendix Teck
Slide 18: Notes
Notes Slide 4: Our Key Priorities 1. EBITDA and adjusted EBITDA are non-GAAP financial measures. See “Non-GAAP Financial Measures” slides. 2. Scale suggests Teck’s potential attributable share of the first 5 full years of annual EBITDA, assuming a C$/US$ exchange rate of 1.33. Annual EBITDA for the
Slide 19: Quebrada Blanca
Quebrada Blanca Photo: Concentrator Grinding Area
Slide 20: QB2 Project Disclosure
QB2 Project Disclosure All economic analysis with respect to the QB2 project based on a development case which includes inferred resources within the life of mine plan, referred to as the Sanction Case, which is the case on which Teck is basing its development decision for the QB2 project. Inferred
Slide 21: QB2 Project Update
QB2 Project Update Progress1 Workforce1,2 25% Overall ~7,500 Earthworks1 Concrete1 47% 29% Engineering, Procurement & Contract Formation1 >95% SAG Mill #1 Shell Lift, January 2020 20
Slide 22: QB2 Project
QB2 Project Executing on a world class development asset Highlights Location Vast, long life deposit in favourable jurisdiction Chile Peru Very low strip ratio Bolivia Arica y Arica Parinacota Region Low all-in sustaining costs (AISC)1 Cerro Tarapacá Colorado Collahuasi Region Will be a top
Slide 23: QB2 Rebalances Teck's Portfolio
QB2 Rebalances Teck’s Portfolio Delivers on copper growth strategy • Rebalances Teck's portfolio over time to make the Teck's Annual Copper Production (kt Cu) contribution from copper similar to steelmaking coal 584 • On a consolidated basis copper production is 116 doubled • On an attributable basi
Slide 24: QB2 is a World Class Copper Opportunity
QB2 is a World Class Copper Opportunity Project Metrics1 US$2.4-$4.2B 14%-18% After-Tax NPV8%2,3 Unlevered After-Tax IRR2,3 (100%) US$1.1-$1.4B 316 kt First 5 Full Years Annual EBITDA2 First 5 Full Years Annual CuEq Production4 US$1.28/lb US$1.38/lb First 5 Full Years C1 Cash Cost (net of by-product
Slide 25: Increasing Teck's Returns on QB2
Increasing Teck's Returns on QB2 Enhancing IRR Reducing Teck's Equity Contributions • Transaction with Sumitomo and US$2.5 billion • Transaction proceeds and project financing project financing significantly enhances Teck's reduce Teck's equity contributions to ~US$693 IRR million3 with no contribut
Slide 26: QB2's Competitive Cost Position
QB2’s Competitive Cost Position Competitive Operating Cost & Capital Intensity Low Cash Cost Position • Given the exceptionally low strip ratio, consistent grade C1 Cash Cost3 & AISC4 Curve1 (US$/lb, 2023E) profile, compact site layout, and high level of automation, QB2 is expected to have attractiv
Slide 27: Vast, Long Life Deposit at QB
Vast, Long Life Deposit at QB QB2 Uses Less than 25% of R&R Extension Potential • Resource exclusive of Reserve increased 40% since Reserve and Resource Tonnage (Mt) 2017 • Initial 28 year mine life processes <25% of the currently +40% defined Reserve and Resource Tonnage • Deposit is capable of sup
Slide 28: QB3 – Long-Term Growth
QB3 – Long-Term Growth Expansion potential to realize full potential of the orebody • QB2 utilizes less than 25% of resource Copper Mineralization from 2018 Drilling1 • QB3 evaluating options to exploit the full value of the • 2018 drilling returned long intervals of +0.5% Cu, with resource through
Slide 29: Clear Path to Production at QB2
Clear Path to Production at QB2 Construction Approach Operational Readiness • Key project elements are segregated by area and can be managed more • Early focus on operational readiness and commissioning to ensure a efficiently reducing risk: seamless transition to operations – Open pit mine (120 Mtp
Slide 30: 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$3.50 (Reserves) Case 7 Case 8 Mine Life years 25 28 28 Annual EBITDA11 (US$B) Throughput ktpd 140 143 143 First 5 Full Years $1.0 $1.2 $1.3 General LOM Mi
Slide 31: 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 Cu Mo Silver Cu Mo Silver RESERVES Mt Grade % Grade % Grade RESERVES Mt Grade % 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 32: ENAMI Interest in QB
ENAMI Interest in QB Organizational Chart • The government of Chile owns a 10% non-funding interest in Compañía Minera Teck Quebrada Blanca Teck SMM SC S.A. (CMTQB) through its state-run minerals company, Empresa Nacional de Minería (ENAMI) 100% 83.33% 16.67% • ENAMI has been a partner at QB since 1
Slide 33: Quebrada Blanca Accounting Treatment
Quebrada Blanca Accounting Treatment Balance Sheet Cash Flow • 100% of project spending included in property, plant and • 100% of project spending included in capital equipment expenditures • Debt includes 100% of project financing • In 2019, Sumitomo1 contribution recorded within • Total shareholde
Slide 34: Notes - Appendix: Quebrada Blanca
Notes - Appendix: Quebrada Blanca Slide 20: QB2 Project Update 1. Project progress as at January 31, 2020. 2. Number of active workers versus employees on payroll. Slide 21: QB2 Project 1. All-in sustaining costs (AISC) are net cash unit costs (also known as C1 cash costs) plus sustaining capital ex
Slide 35: Notes - Appendix: Quebrada Blanca
Notes - Appendix: Quebrada Blanca Slide 25: QB2’s Competitive Cost Position 1. Source: Wood Mackenzie. 2. Based on first five full years of copper equivalent production. Copper equivalent production calculated assuming US$3.00/lb copper, US$10.00/lb molybdenum and US$18.00/oz silver without adjustin
Slide 36: Notes - Appendix: Quebrada Blanca
Notes - Appendix: Quebrada Blanca Slide 31: ENAMI Interest in QB2 1. EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures” slides. Slide 32: Quebrada Blanca Accounting Treatment 1. Sumitomo Metal Mining Co. Ltd. and Sumitomo Corporation are collectively referred to as Sumitomo. 3
Slide 37: Strategy and Overview
Strategy and Overview Teck
Slide 38: Consistent Long-Term Strategy
Consistent Long-Term Strategy • Diversification • Long life assets • Low cost • Appropriate scale • Low risk jurisdictions 37
Slide 39: Attractive Portfolio of Long-Life Assets
Attractive Portfolio of Long-Life Assets Low risk jurisdictions 38
Slide 40: Global Customer Base
Global Customer Base Revenue contribution from diverse markets (2019) 1 1 39
Slide 41: Diverse Pipeline of Growth Options
Diverse Pipeline of Growth Options In Construction Medium-Term Future Options Growth Options QB2 QB3 Galore Creek Zafranal Schaft Creek Copper Strong platform HVC Brownfield Mesaba with substantial growth options NuevaUnión San Nicolás (Cu-Zn) Zinc Red Dog VIP2 Project Antamina Brownfield Teena Prem
Slide 42: Disciplined Approach to M&A
Disciplined Approach to M&A $1,500 Recent Transaction History QB2 Divestment Waneta Dam, (30%)7 $1,200M6 $1,072M Net Proceeds (Cost) (C$M) Antamina $1,000 Silver Stream2 $795M CdA Gold $500 Stream1, Osisko Sandstorm Royalty Royalty $206M Project Corridor Package3 /Nueva Union, Package, Wintering Hil
Slide 43: Production Guidance
Production Guidance 3-YEAR GUIDANCE1 2019 RESULTS 2020 GUIDANCE1 (2021-2023) Steelmaking Coal 25.7 Mt 23.0-25.0 Mt 26.0-27.0 Mt Copper2,3,4,6 Highland Valley Concentrate 121.3 kt 133-138 kt 155-165 kt Antamina Concentrate 100.9 kt 88-92 kt 90 kt Carmen de Andecollo Concentrate + Cathode 54 kt 57-62
Slide 44: Sales and Unit Cost Guidance
Sales and Unit Cost Guidance Sales Q4 2019 RESULTS Q1 2020 GUIDANCE1 Steelmaking Coal 6.3 Mt 4.8-5.2 Mt Zinc - Red Dog Zinc in Concentrate 174 kt 135-140 kt Unit Costs 2019 RESULTS 2020 GUIDANCE1 Steelmaking Coal Adjusted site cost of sales2 C$65/t C$63-67/t Transportation costs2 C$39/t C$40-43/t In
Slide 45: Capital Expenditures Guidance
Capital Expenditures Guidance Sustaining, Major Enhancement, New Mine Development Total (Teck’s share 2020 (Teck’s share 2020 in CAD$ millions) 2019 Guidance1 in CAD$ millions) 2019 Guidance1 Sustaining Total Sustaining, Major Enhancement, and New Mine Development Steelmaking coal2 $ 403 $ 475 Steel
Slide 46: Capital Expenditures Guidance (continued)
Capital Expenditures Guidance (continued) Quebrada Blanca Phase 2 (Teck’s share 2020 in CAD$ millions) 2019 Guidance1 QB2 Capital Expenditures $ 1,220 $ 2,420 Total capex, before SMM/SC contribution $ 2,788 $ 4,150 Estimated SMM/SC contributions2 (1,035) (660) Estimated QB2 project financing draw -
Slide 47: Commodity Price Leverage
Commodity Price Leverage1 MID-POINT OF 2020 PRODUCTION ESTIMATED EFFECT ON ESTIMATED EFFECT ON GUIDANCE2 CHANGE ANNUALIZED PROFIT3 ANNUALIZED EBITDA3 $C/$US C$0.01 C$37M /$0.01∆ C$58M /$0.01∆ Coal [24] Mt US$1/tonne C$18M /$1∆ C$28M /$1∆ Copper 292.5 kt US$0.01/lb C$5M /$0.01∆ C$8M /$0.01∆ Zinc4 930
Slide 48: 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. Plus at Least 30% If there is no immediate need Available Cash Flow1 for this ca
Slide 49: Strong Track Record of Returning Cash to Shareholders
Strong Track Record of Returning Cash to Shareholders ~$6.5 billion returned from January 1, 2003 to December 31, 2019 Dividends • $4.4 billion since 2003, representing ~28% of free cash flow1 Share Buybacks • $2.1 billion since 2003, representing ~14% of free cash flow1 48
Slide 50: Tax-Efficient Earnings in Canada
Tax-Efficient Earnings in Canada ~C$3.4 billion in available tax pools1 • Includes: ‒ $2.6 billion in net operating loss carryforwards ‒ $0.5 billion in Canadian Development Expenses (30% declining balance p.a.) ‒ $0.3 billion in allowable capital loss carryforwards • Applies to cash income taxes in
Slide 51: Share Structure & Principal Shareholders
Share Structure & Principal Shareholders Teck Resources Limited1 VOTING SHARES HELD PERCENT RIGHTS Class A Shareholdings Temagami Mining Company Limited 4,300,000 55.4% SMM Resources Inc (Sumitomo) 1,469,000 18.9% Other 1,996,503 25.7% 7,765,503 100.0% Class B Shareholdings Temagami Mining Company L
Slide 52: Notes: Appendix – Strategy and Overview
Notes: Appendix – Strategy and Overview Slide 39: Global Customer Base 1. Gross profit before depreciation and amortization is a non-GAAP financial measure. See “Non-GAAP Financial Measures” slides. Slide 41: Disciplined Approach to M&A 1. Carmen de Andacollo gold stream transaction occurred in USD
Slide 53: Notes: Appendix – Strategy and Overview
Notes: Appendix – Strategy and Overview Slide 44: Capital Expenditures Guidance 1. As at February 20, 2020. See Q4 2019 press release for further information. 2. Steelmaking coal sustaining capital guidance includes $290 million of water treatment capital. 2019 includes $176 million of water treatme
Slide 54: Sustainability
Sustainability Teck
Slide 55: Focus on Sustainability Leadership
Focus on Sustainability Leadership Sustainability strategy • Sustainability reporting for 19 years Biodiversity Water • Established ambitious sustainability strategy and goals in 2010 Community • Strategy focused on developing opportunities and managing risks • Implementing a sustainability strategy
Slide 56: Why Sustainability Matters
Why Sustainability Matters • Reduced risk of operations disruption • Increased access to capital at a lower cost • Efficient project and permit approvals • Increased cost savings and productivity • Meet rising supply chain and societal expectations • Higher financial returns • Employee retention and
Slide 57: Health and Safety Performance
Health and Safety Performance • Safety performance in 2018 Incident Frequency (per 200,000 hours worked) - 28% reduction in High-Potential 0.6 Incidents 0.5 - 21% decrease in Lost-Time Injury 0.4 Frequency 0.3 • Conducted Courageous Safety 0.2 Leadership training with 97% of 0.1 employees 0 • Two fa
Slide 58: Reducing Freshwater Use
Reducing Freshwater Use Teck top of 50+ companies ranked by DJSI • Water recycled average of 3 DJSI Water Related Risk Assessment times at mining operations in 2019 Percentile Rankings2 2018 100 Teck 90 (100th percentile) • Target to reduce freshwater 80 lowest to highest scores use at Chilean opera
Slide 59: Taking Action on Climate Change
Taking Action on Climate Change Teck in top 3 of 50+ companies ranked by DJSI • Commitment to be a carbon neutral DJSI Climate Strategy Assessment operator by 2050 2019 Percentile Rankings2 100 • Goal to reduce GHG emissions by 450,000 Teck 90 (98th percentile) tonnes by 2030 and have already reduce
Slide 60: Low-Carbon Producer
Low-Carbon Producer Scope 1+2 emissions per copper equivalent ranking1 CO2 emissions per unit of energy consumed1 (tCO2e/t CuEq, 2017) (CO2t/GJ) 59
Slide 61: Lower-Risk Jurisdictions, Comprehensive Assessments
Lower-Risk Jurisdictions, Comprehensive Assessments Teck in top 3 of 50+ companies ranked by DJSI DJSI Human Rights Assessment • All operations in countries with 2019 Percentile Rankings2 well-developed mining industries: 100 Teck Canada, United States, Chile, Peru 90 (97th percentile) 80 • Robust r
Slide 62: Strengthening Relationships with Indigenous Peoples
Strengthening Relationships with Indigenous Peoples • Agreements in place at all mining operations within or adjacent to Indigenous Peoples’ territories • Achieved agreements with all Indigenous communities near the QB2 project ‒ 8 of 8 agreements with Indigenous communities; 7 of 7 agreements with
Slide 63: Employee Relations and Diversity
Employee Relations and Diversity 18% • 57% of our employees are unionized • Focused on strengthening diversity, women in our workforce with women making up 31% of new 20% hires in 2018 • In 2018, 9% of total hires self- management identified as Indigenous from our positions held Red Dog, Highland Va
Slide 64: Collective Agreements
Collective Agreements OPERATION EXPIRY DATES Line Creek May 31, 2019 Elkview October 31, 2020 Fording River April 30, 2021 Antamina July 31, 2021 Highland Valley Copper September 30, 2021 Trail Operations May 31, 2022 Cardinal River June 30, 2022 January 31, 2022 Quebrada Blanca March 31, 2022 Novem
Slide 65: Notes: Sustainability
Notes: Sustainability Slide 57: Reducing Freshwater Use 1. Sustainability Accounting Standards Board Standards. https://www.sasb.org/ 2. SAM Corporate Sustainability Assessment 2018. Slide 58: Taking Action on Climate Change 1. Sustainability Accounting Standards Board Standards. https://www.sasb.or
Slide 66: Technology and Innovation
Technology and Innovation Teck
Slide 67: RACE21
RACE21TM Our innovation-driven business transformation program • Implementing existing, proven technology across the mining value chain to improve productivity and lower costs • Initial target of $150 million in annualized EBITDA1 improvements by the end of 2019; focused on delivering significant va
Slide 68: RACE21
RACE21TM Renew Automate • Unify and modernize Teck’s core systems • Accelerate and scale autonomy program • Establish technology foundation that facilitates • Transformational shift in safety deployment of Connect and Automate reliably and at • Reduce per-tonne mining costs with smaller fleets scale
Slide 69: RACE21
RACE21TM Connect Empower • Link disparate systems into a collaborative digital • The natural implication of Renew, Automate, and platform with powerful tools for sensing and analyzing Connect is we can re-imagine what it means to work in real time at Teck and re-design our operating model to attract
Slide 70: Significant Value To Be Captured
Significant Value To Be Captured SAFETY PROFITABILITY PRODUCTIVITY COST Transformational Step-change Increased Reduced safety impact with impact to productivity through operational costs fewer people in profitability new technologies by achieving high risk and internal manufacturing environments inn
Slide 71: Electrification of Mining
Electrification of Mining Electric crew buses at our Electric boom vehicles to be Working with OEMs through steel making coal tested in pit. ICMM to develop zero-GHG operations. surface mining vehicles Teck is taking steps to reduce its carbon footprint by starting to electrify the fleet. 70
Slide 72: Notes: Technology and Innovation
Notes: Technology and Innovation Slide 66: RACE21TM 1. EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures” slides and “Use of Non-GAAP Financial Measures” section of the Q4 2019 news release for further information. 71
Slide 73: Steelmaking Coal Business Unit & Markets
Steelmaking Coal Business Unit & Markets
Slide 74: Steelmaking Coal Market
Steelmaking Coal Market • Growing demand, especially in Southeast Asia Steelmaking Coal Prices1 (US$/t) Steelmaking coal price has averaged and India US$180/t1 since January 1, 2008 ‒ Teck’s sales to India surpassed China 300 from 2018 • Raw materials pricing under pressure due to 250 weak steel mar
Slide 75: Steelmaking Coal Facts
Steelmaking Coal Facts Global Coal Production1: ~7.8 billion tonnes Steelmaking Coal Production2: ~1,150 million tonnes Export Steelmaking Coal2: ~355 million tonnes Seaborne Steelmaking Coal2: • ~0.7 tonnes of steelmaking coal is used to ~315 million tonnes produce each tonne of steel3 • Up to 100
Slide 76: Steelmaking Coal Demand Growth Forecast
Steelmaking Coal Demand Growth Forecast Southeast Asia and India are growth drivers Seaborne Steelmaking Coal Imports1 (Mt) Change 2020 vs. 2019 316-329 330 320 2 1 0.1 3 1 1 320 315 310 300 290 280 2019 SE Asia Brazil Europe 2020, ex. India China JKT 2020 India, China Includes: & JKT • Southeast As
Slide 77: Indian Steelmaking Coal Imports
Indian Steelmaking Coal Imports Imports supported by secular demand and government growth targets Indian Crude Steel Production1 (Mt) Indian Seaborne Coking Coal Imports2 (Mt) 120 70 100 60 50 80 40 60 30 40 20 20 10 0 0 76
Slide 78: Chinese Steelmaking Coal Imports
Chinese Steelmaking Coal Imports 2019 seaborne imports up by +4 Mt Chinese Crude Steel Production (CSP), Hot Metal Production (HMP) and Coal Production (Mt)1 Chinese Coking Coal Imports2 (Mt) 1200 520 90 80 1000 500 70 16 800 480 60 34 35 15 26 50 28 24 600 460 19 13 40 15 20 400 440 30 60 48 44 20
Slide 79: Large Users in China Increasing Imports
Large Users in China Increasing Imports ~2/3 of China crude steel produced on coast; projects support imports Seaborne Coking Coal Imports1 (Mt) ZONGHENG FENGNAN PROJECT • Inland plant relocating to coastal area 80 • Capacity: crude steel 8 Mt • Status: Construction started in 2017; 2 of 5 blast 60
Slide 80: Chinese Steel Margins
Chinese Steel Margins Margins have declined but remain positive China Hot Rolled Coil (HRC) Margins and Steelmaking Coal (HCC) Prices1 (US$/t) 350 300 250 200 150 100 50 0 -50 Nov-15 Nov-16 Nov-17 Nov-18 Nov-19 May-15 Jul-15 Sep-15 May-16 Jul-16 Sep-16 May-17 Jul-17 Sep-17 May-18 Jul-18 Sep-18 May-1
Slide 81: Chinese Scrap Use to Increase Slowly
Chinese Scrap Use to Increase Slowly EAF share in crude steel production to recover only to 2012’s level China’s Scrap Ratio was ~1/2 of World Average China Steel Use By Sector in 20171 (%) (2000-2018)2 100% 78% 80% 72% 55% 60% 40% 39% 35% 32% 37% 40% 23% 18% Others 20% 15-25% Construction 0% 50-60%
Slide 82: Steelmaking Coal Supply Growth Forecast
Steelmaking Coal Supply Growth Forecast Growth comes mostly from Australia Seaborne Steelmaking Coal Exports1 (Mt) Change 2020 vs. 2019 330 1 1 318 1 0.1 316-320 320 315 3 310 300 290 280 2019 Australia Indonesia USA 2020, ex. Mo Mozambique Russia 2020 & Ru Includes: • Australia: Growth from existin
Slide 83: US Coal Producers are Swing Suppliers
US Coal Producers are Swing Suppliers Australian Steelmaking Coal Exports1 (Mt) US Steelmaking Coal Exports2 (Mt) 200 70 180 60 160 140 50 120 40 100 30 80 60 20 40 10 20 0 0 82
Slide 84: Canadian & Mozambique Steelmaking Coal Exports
Canadian & Mozambique Steelmaking Coal Exports Canadian Exports1 (Mt) Mozambique Exports2 (Mt) 9 40 8 35 7 30 6 25 5 20 4 15 3 10 2 5 1 0 0 83
Slide 85: 2nd Largest Seaborne Steelmaking Coal Supplier
2nd Largest Seaborne Steelmaking Coal Supplier Competitively positioned to supply steel producers worldwide Sales Distribution CHINA 2013: ~30% EUROPE 2017: ~15% 2013: ~15% INDIA 2017: ~20% 2019: ~10% 2013: ~5% 2019: ~15% 2017: ~10% AMERICAS 2019: ~15% ~5% ASIA EXCL. CHINA & INDIA 2013: ~40% 2017: ~
Slide 86: An Integrated Long Life Coal Business
An Integrated Long Life Coal Business ELK VALLEY British Columbia Prince Rupert Elco Quintette Ridley Fording • 940 million tonnes1 of Terminal Alberta River reserves support ~27 Mt of Prince George Edmonton production for many years Greenhills Elkford Cardinal River • Geographically concentrated Li
Slide 87: Long Life with Growth Potential in Steelmaking Coal
Long Life with Growth Potential in Steelmaking Coal Annual Production Capacity (Million tonnes) 27 million tonnes of annual 30 29 production capacity in 2021 and 28 beyond 27 − Investment in plant throughput capacity at Elkview to capitalize on lower strip 26 ratio beginning in 2020 25 24 23 Investi
Slide 88: Setting Up for Strong Long-Term Cash Flows In Steelmaking Coal
Setting Up for Strong Long-Term Cash Flows In Steelmaking Coal Executing on four structural pillars to reduce costs and optimize margins • Strip ratio decreasing over next four years Clean Strip Ratio1 12 ‒ Future strip ratio on par with historical average 10 • Strategically replacing high cost tonn
Slide 89: Reinvesting to Maintain Productivities And Manage Costs
Reinvesting to Maintain Productivities And Manage Costs in Steelmaking Coal Maintaining historical dollar per tonne Sustaining Capital, Excluding sustaining investment levels Water Treatment1 ($/t) $14 2010-2016: Average spend of ~$6 per tonne1 $12 • Reinvestment in 5 shovels, 50+ haul trucks $10 $8
Slide 90: Investing In Production Capacity in Steelmaking Coal
Investing In Production Capacity in Steelmaking Coal Major enhancement projects increasing long-term Major Enhancement Capital Expenditures1,2 ($M) production capacity: • Castle at Fording River Operations 400 • Baldy Ridge Extension at Elkview Operations 350 • 9 Million project at Elkview Operation
Slide 91: Progress on Elk Valley Water Quality Plan
Progress on Elk Valley Water Quality Plan • Spent ~ $437 million on the implementation of the Elk Valley Water Quality Plan as of year-end 2019 • West Line Creek water treatment facility is operating and successfully treating 7.5 million litres per day • Construction of the Fording River South water
Slide 92: Teck's Pricing Mechanisms
Teck’s Pricing Mechanisms Coal sales book generally moves with the market SALES MIX Pricing Mechanisms (%) • ~40% quarterly contract price • ~60% shorter than quarterly pricing mechanisms (including “spot”) 20% Index Linked PRODUCT MIX 80% Fixed • ~75% of production is high-quality HCC Price • ~25%
Slide 93: Quality and Basis Spreads
Quality and Basis Spreads Impact Teck’s average realized steelmaking coal prices HCC / SHCC Prices and Spread1 (US$/t) HCC FOB / CFR Prices and Spread2 (US$/t) 350 100 350 40 300 300 20 75 250 250 0 200 200 50 150 150 -20 100 100 25 -40 50 50 0 -60 0 0 HCC (LHS) SHCC (LHS) HCC / SHCC spread (RHS) HC
Slide 94: West Coast Port Capacity
West Coast Port Capacity NEPTUNE COAL TERMINAL • Planned capacity growth to >18.5 Mtpa Port Capacity • 100% ownership of coal capacity (Nominal Mt) • Current coal capacity 12.5 Mtpa 40 • Significant investment to upgrade and rejuvenate RIDLEY TERMINALS 30 • Current capacity 18 Mtpa • Teck contract:
Slide 95: Notes: Appendix – Steelmaking Coal
Notes: Appendix – Steelmaking Coal Slide 73: Steelmaking Coal Market 1. Source: Argus, Teck. Plotted to February 20, 2020. Slide 74: Steelmaking Coal Facts 1. Source: IEA. 2. Source: Wood Mackenzie (Long Term Outlook H2 2019). 3. Source: World Coal Association. Assumes all of the steel required is p
Slide 96: Notes: Appendix – Steelmaking Coal
Notes: Appendix – Steelmaking Coal Slide 85: An Integrated Long Life Coal Business 1. Sites at 100% tonnes as at January 1, 2019. Source: Teck AIF. Slide 86: Long Life with Growth Potential in Steelmaking Coal 1. Subject to market conditions and obtaining relevant permits. Slide 87: Setting Up for S
Slide 97: Copper Business Unit & Markets
Copper Business Unit & Markets
Slide 98: Supply Fundamentals Offset Weaker Copper Demand
Supply Fundamentals Offset Weaker Copper Demand • Cathode market balanced for next 2 years, with potential risks to supply • Global macro concerns affected demand in 2019; potential upside in 2020 on improved trade outlook and lower US$ • Concentrate market tightness continues into 2020; lowest annu
Slide 99: Global Copper Mine Production Increasing Slowly
Global Copper Mine Production Increasing Slowly Mine Production Set To Increase 1.7 Mt By 20231 Global Copper Mine Production2 (kt contained) Includes: Mine kmt 22,000 PT – Freeport (vs 2019) 450 20,000 Kamoa – Kakula 350 Quebrada Blanca 300 18,000 Quellaveco 300 16,000 Cobre Panama (vs 2019) 272 Ch
Slide 100: Copper Disruptions Return To Impact Mines
Copper Disruptions Return To Impact Mines TC/RCs Spot and BM Falling1 (US$/lb) Disruptions (kt)2; $120 Q3 2005 2007 2009 2011 2013 2015 2017 2019 $110 0 $100 $90 -200 $80 $70 -400 $60 -600 3.0% 2.8% $50 $40 -800 4.5% $30 $20 -1,000 5.0% Annual/Mid Year Spot -1,200 YTD 99
Slide 101: Rapid Growth in Chinese Copper Smelter Capacity
Rapid Growth in Chinese Copper Smelter Capacity Limited domestic mine projects and lots of delays Chinese Copper Mine Growth1 +3.0 Mt of Smelting Projects in the Pipeline2 (kt) (kt blister) 400 400 2019 2020 2020 – 2023 2018/2019 2020 2020 – 2023 49 kt 61 kt 240 kt 2,030 kt 520 kt 480 kt 300 300 200
Slide 102: Copper Supply
Copper Supply Mine production rising and scrap availability falling Sanctioned Projects Since 20171 (kt) Chinese Scrap/Blister Imports Fall2 New mines commissioned will (Copper content, kt) add 2.5 Mt from 2017-2025 3,000 3,000 2,000 2,500 1,000 2,000 0 1,500 2013 2014 2015 2016 2017 2018 2019 Blist
Slide 103: Copper Metal Stocks
Copper Metal Stocks Better than expected demand; smelter disruptions • Exchange stocks have fallen 498,000 tonnes since Daily Copper Prices (US$/mt) and Stocks1 (kt) March 2018, now equivalent to 6.1 days of global $12,000 1,800 consumption 1,600 $10,000 1,400 • SHFE stocks increased ~72,000t in fir
Slide 104: Copper Supply / Demand Balance
Copper Supply / Demand Balance Projects available to fill low demand scenario gap Probable Projects Sufficient Only To Fill Existing and Fully Committed Supply1 (kt) Low Gap Scenario2 (kt) 2,500 28,000 Additional 27,000 2,000 gap to high demand 26,000 1,500 Additional 25,000 gap to base demand 24,00
Slide 105: Long Life and Stable Assets in Copper
Long Life and Stable Assets in Copper Antamina Highland Valley Carmen de Andacollo Quebrada Blanca • Guidance of 88,000 to • Guidance of 133,000 to • Guidance of 57,000 to • Guidance of 7,000 to 8,000 92,000 tonnes copper 138,000 tonnes copper 62,000 tonnes copper tonnes copper cathode • Higher zinc
Slide 106: Cost Discipline and Improvement Focus in Copper
Cost Discipline and Improvement Focus in Copper Operating Expenses & Productivity Focused Investment Priorities • RACE21TM driving benefits across all • Numerous projects finishing by early 2020 sites, with focus on processing analytics - D3 Ball Mill at HVC, QB1 water • Focus on asset management an
Slide 107: Major Growth and Life Extension Projects in Copper
Major Growth and Life Extension Projects in Copper Setting up for long-term success Quebrada Blanca • QB2: 316 kt of CuEq production for first 5 years1 - Doubles copper production with low strip ratio and AISC of US$1.38/lb copper2 • QB3: Scoping Study on expansion potential complete - Mineral resou
Slide 108: Notes: Appendix – Copper
Notes: Appendix – Copper Slide 98: Global Copper Mine Production Increasing Slowly 1. Source: Data compiled by Teck based on information from Wood Mackenzie and Company Reports (average production first 10 years). 2. Source: Source: Data compiled by Teck based on information from Wood Mackenzie and
Slide 109: Zinc Business Unit & Markets
Zinc Business Unit & Markets Teck
Slide 110: Supply Fundamentals Offset Weaker Zinc Demand
Supply Fundamentals Offset Weaker Zinc Demand • Global concentrate market in surplus; smelter production returning to new normal • Smelter bottleneck in China restricted metal production, drawing down stocks • Metal inventories well below long term averages • Physical metal market stable despite low
Slide 111: Refined Production Recovered from Environmental Policy Constraints
Refined Production Recovered from Environmental Policy Constraints Chinese Mine Production Flat in 20191 Chinese Refined Production Up 9% in 20192 (kt Contained) (kt Contained) 5,000 6,500 4,500 6,000 5,500 4,000 5,000 3,500 4,500 3,000 4,000 2,500 3,500 2,000 3,000 2012 2013 2014 2015 2016 2017 201
Slide 112: Despite Increased Production, Increased Demand from ROW Continues
Despite Increased Production, Increased Demand from ROW Continues De-stocking Continues Additional Zinc Metal Chinese Stocks at Record Lows1,2 (kt) Required to Fill the Gap3 (kt) 1,600 1,600 1,440 1,400 1,400 1,242 1,246 1,247 1,200 1,200 1,000 1,000 770 788 800 800 652 600 600 503 400 400 200 200 0
Slide 113: Zinc Supply
Zinc Supply Mine production remains at risk of missing expectations in 2020 Zinc Mine Production1 (kt contained) • Global mine production missed forecast in both 2018 16,000 and 2019 ‒ 8.1% increase in mine production originally expected for 14,000 2019; now only 4.9% 12,000 ‒ Slow or delayed start-
Slide 114: Chinese Zinc Mine Projects Delayed
Chinese Zinc Mine Projects Delayed Impacted by inspections and low zinc ore grades Estimated Chinese Zinc Mine Growth Changes in Mine Production Since Q1 20182 Rarely Achieved1 (Kmt Contained) New Mines China Mines ROW Mines Change 600 0 -400 400 360 392 350 270 300 -800 250 237 200 200 180 -1,200 1
Slide 115: Zinc Concentrate Treatment Charges
Zinc Concentrate Treatment Charges Treatment Charges1 (USD/dmt) 350 300 250 200 150 100 50 0 Spot TC Benchmark TC 114
Slide 116: Zinc Metal Stocks
Zinc Metal Stocks Consecutive deficits decreasing zinc inventories • Deficits in past 5 years have driven down stocks Daily Zinc Prices1,2 (US$/mt) • LME refined zinc stocks decreased almost 80,000 and Stocks1,2 (kmt) tonnes in 2019 5,000 2,500 • Only 50,000 tonnes of refined zinc remaining on 4,500
Slide 117: Zinc Supply / Demand Balance
Zinc Supply / Demand Balance Zinc refined production peaks in 2022 Existing and Fully Committed Supply1 (kt) Probable Projects Sufficient To Fill Gap2 (kt) 16,000 Additional gap to 1,500 high demand Additional 15,000 gap to 1,000 base demand 14,000 500 Gap to low demand 13,000 0 2019 2020 2021 2022
Slide 118: Largest Global Net Zinc Mining Companies
Largest Global Net Zinc Mining Companies Teck is the Largest Net Zinc Miner1(kt) Provides significant exposure to a rising zinc price 400 Public Company 350 Teck Private Company 300 250 200 150 100 50 0 117
Slide 119: Integrated Zinc Business
Integrated Zinc Business Red Dog Trail Pend Oreille • Guidance of 500,000 to 535,000 • Guidance of 305,000 to 315,000 • Care and maintenance started in tonnes zinc in 2020 tonnes refined zinc, and 60,000 to August 2019 • VIP2 project ready for commissioning 70,000 tonnes refined lead • Decision on p
Slide 120: Cost Discipline and Improvement Focus in Zinc
Cost Discipline and Improvement Focus in Zinc Operating Expenses & Productivity Focused Investment Priorities • RACE21TM driving benefits across all sites, • Red Dog VIP2 mill enhancement project with focus on processing analytics completion in Q1 2020 • Focus on asset management and cross • Near te
Slide 121: Red Dog Sales Seasonality
Red Dog Sales Seasonality • Operates 12 months Zinc Sales 1 (%) • Ships ~ 4 months 40% 34% 30% 30% • Shipments to inventory in Canada 21% 15% 20% and Europe; Direct sales to Asia 10% • ~65% of zinc sales in second half 0% of year Q1 Q2 Q3 Q4 • ~100% of lead sales in second half Lead Sales1 (%) of ye
Slide 122: Red Dog Net Cash Unit Cost Seasonality
Red Dog Net Cash Unit Cost Seasonality Significant quarterly variation Red Dog Net Cash Unit Costs1 (US$/lb) 0.60 0.40 0.20 - Q1 Q2 Q3 Q4 • Seasonality of Red Dog unit costs largely due to lead sales during the shipping season • Zinc is a by-product credit at Antamina and accounted for in the Copper
Slide 123: Red Dog in Bottom Quartile of Zinc Cost Curves
Red Dog in Bottom Quartile of Zinc Cost Curves Total Cash + Capex Cost Curve 20201 (US¢/lb) 200 2020 Costs Based on Current Prices Current Spot LME Price 180 160 140 120 100 80 RED DOG 60 40 20 0 0% 25% 50% 75% 100% 122
Slide 124: Red Dog Extension Project
Red Dog Extension Project Long Life Asset • Aktigiruq exploration target of 80-150 Mt @ 16-18% Zn + Pb1 • Anarraaq Inferred Resource2: 19.4 Mt @14.4% Zn, 4.2% Pb Quality Project • Premier zinc district • Significant mineralized system • High grade Stable Jurisdiction • Operating history • ~12 km fro
Slide 125: Building a Quality Zinc Inventory
Building a Quality Zinc Inventory Potential New GIANT System1 (Contained Zn+Pb in Mt and Grade Zn+Pb in %) GIANT ZINC DEPOSITS (+6 Mt Zn+Pb) 124
Slide 126: Global Context of Teck's Zinc Resources
Global Context of Teck’s Zinc Resources Well positioned; world class 30 Teck’s Zinc Resources1 Qanaiyaq (Resource in Mt and Grade Zn+Pb in %) 25 Red Dog Past Production 20 Aqqaluk Aktigiruq Exploration Target1 80-150 Mt Grade Zn+Pb % Anarraaq Paalaaq 16-18% Zn+Pb 15 Rampura Broken Hill Agucha McArth
Slide 127: Notes: Appendix – Zinc
Notes: Appendix – Zinc Slide 110: Refined Production Recovered From Environmental Policy Constraints 1. Source: Data compiled by Teck based on information from BGRIMM, CNIA, Antaike. 2. Source: Data compiled by Teck based on information from BGRIMM, CNIA, Antaike. Slide 111: Despite Increased Produc
Slide 128: Notes: Appendix – Zinc
Notes: Appendix – Zinc Slide 123: Red Dog Extension Project 1. Aktigiruq is an exploration target, not a resource. Refer to press release of September 18, 2017, available on SEDAR. Potential quantity and grade of this exploration target is conceptual in nature. There has been insufficient exploratio
Slide 129: Energy Business Unit & Markets
Energy Business Unit & Markets
Slide 130: Energy Benchmark Pricing
Energy Benchmark Pricing Calendar NYMEX WTI Price1 and WTI/WCS Basis Differential2,3 (US$/bbl) 80 80 70 70 60 60 50 50 40 40 30 30 20 20 10 10 0 - (10) (10) Calendar NYMEX WTI Price WTI/WCS Basis Differential at Hardisty WTI/WCS Basis Differential at the USGC 129
Slide 131: US Midwest and US Gulf Coast are Key Markets
US Midwest and US Gulf Coast are Key Markets Blended Bitumen Pipelines Edmonton Hardisty TransCanada Keystone, Keystone XL Superior Enbridge/Line 3 Asia Vancouver Montreal TransMountain/TMX In Service Pipeline Steele City Flanagan Proposed Pipeline California Market Hub Cushing Deep Water Port Asia
Slide 132: Export Capacity Needed To Meet Global Demand
Export Capacity Needed To Meet Global Demand Near term (2019-2021): Western Canada Supply & Markets1 (Mbpd) • Canadian export capacity lagging Reliant on rail 2019-2022 • Reliant on rail (400-500 Kbpd) 7.5 7.0 Pipeline development progressing: 6.5 TransMountain • Enbridge: 370 Kbpd (2020-2021) 6.0 T
Slide 133: GHG Emissions Intensity of Oil Sands Facilities
GHG Emissions Intensity of Oil Sands Facilities Comparing GHG intensity by oil sands facility1 (kg CO2e/bbl) Mining In Situ Source: Bloomberg, BMO Capital Markets 132
Slide 134: Best In Class Low Carbon Intensity Production
Best In Class Low Carbon Intensity Production Our blend will displace carbon intensive crudes Estimated Improvements Since 2012 Total Life Cycle Emissions Intensity (kg CO2e/bbl Production & Refining refined product – gasoline/diesel) End-User Fuel Consumption 700 U.S. Refined Average GHG Emissions
Slide 135: Best In Class Low Carbon Intensity Production cont'd
Best In Class Low Carbon Intensity Production cont’d Our blend will displace carbon intensive crudes • A superior global refinery feedstock • Improves operating efficiencies at complex refineries • Best in-class Canadian oil sands carbon intensity, including in-situ • Pushing technology for continuo
Slide 136: Fort Hills Blend Widely Accepted In Market
Fort Hills Blend Widely Accepted In Market We produce a high quality refinery feedstock Delivery Location (Kbpd) • Low GHG intensity: <50% of US crude supply Teck Blend: • Including in-situ and upgraded synthetic 46.7 Kbpd Our sales mix provides diverse market access 10.0 US Gulf Coast: monthly basi
Slide 137: Diverse Portfolio of Sales in Energy
Diverse Portfolio of Sales in Energy Blend Sales By Delivery Point (%) Revenue (US$/bbl) WESTERN LOCATION NYMEX WTI CANADIAN SELECT DIFFERENTIAL BASIS ~20% (Pipeline) US Gulf Coast Calendar average Monthly contracted (Pipeline) monthly WTI spot differential at US ~60% Gulf Coast ~20% (Pipeline) Hard
Slide 138: Quality Barrels in a Progressive Jurisdiction
Quality Barrels in a Progressive Jurisdiction 4th largest oil sands mining portfolio Fort Hills in operation Alberta, Canada • Teck 21.3% = 0.6 billion barrels1 Frontier in the regulatory phase • Teck 100% = 3.2 billion barrels2 Lease 421: future growth • Teck 50% CNRL Horizon Imperia l Kearl • High
Slide 139: Our Energy Strategy
Our Energy Strategy Maximizing value of Fort Hills • Start-up complete, increase production volumes, lower costs De-risking Frontier & Lease 421 • Frontier regulatory hearing completed in 2018, decision in early 2020 Driving business results through technology & innovation • Safe & reliable producti
Slide 140: Fort Hills is a Modern Mine
Fort Hills is a Modern Mine Built for low cost operations Fort Hills 2018 Production @100% (Barrels per day) 201,000 bpd 250,000 Exit 2018 December 2018 @ 201,000 bpd 200,000 <$23/bbl 150,000 Great start-up adjusted operating costs1 December 2018 100,000 50,000 PFT Product low GHG emissions - Jan Fe
Slide 141: Attractive Debottlenecking Opportunities at Fort Hills
Attractive Debottlenecking Opportunities at Fort Hills To be implemented in two phases Potential capacity increase of PFT Process 20 kbpd to 40 kbpd • Teck’s share of annual production could increase from 14.0 Mbpa to 15.5-17.0 Mbpa • Near term opportunities require little to no capital (phase 1) •
Slide 142: Significant EBITDA Upside Potential in Energy
Significant EBITDA Upside Potential in Energy Providing the basis for strong and steady cash flow for decades Assumptions EBITDA1 Potential – Teck’s share ($ millions) 800 WTI @ WTI @ ASSUMPTIONS 700 US$70/bbl US$60/bbl 600 +$150M WTI-WCS differential US$10.00 US$14.75 500 400 +$100M C$/US$ exchange
Slide 143: Teck's Energy Outlook
Teck’s Energy Outlook $144 million gross profit before depreciation and amortization1 generated in 2019 • Government of Alberta curtailments effective January 1, 2019 and continuing into 2020 • Fort Hills: PRODUCTION ADJUSTED OPERATING COSTS2 CAPITAL 2020 • Annual bitumen production guidance • Adjus
Slide 144: Notes: Appendix – Energy
Notes: Appendix – Energy Slide 129: Energy Benchmark Pricing 1. The WTI CMA is an average of the daily settle quoted price for WTI prices for future deliveries for the trading days during a calendar month. Source: CME Group. As at February 11, 2020. 2. WCS at Hardisty: an index value determined duri
Slide 145: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 146: Non-GAAP Financial Measures
Non-GAAP Financial Measures Our financial results are prepared in accordance with International Financial Reporting Standards (IFRS). This document refers to a number of Non-GAAP Financial Measures, which are not measures recognized under IFRS in Canada and do not have a standardized meaning prescri
Slide 147: Non-GAAP Financial Measures
Non-GAAP Financial Measures Gross profit before depreciation and amortization is gross profit with the depreciation and amortization expense added back. We believe this measure assists us and readers to assess our ability to generate cash flow from our business units or operations. Adjusted site cos
Slide 148: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of Profit (Loss) and Adjusted Profit Three months ended Three months ended Twelve months ended Twelve months ended (C$ in millions) December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Profit (loss) attributable to shareholders $ (891) $
Slide 149: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of Basic Earnings (Loss) Per Share to Adjusted Basic Earnings Per Share Three months ended Three months ended Twelve months ended Twelve months ended (Per share amounts) December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Basic earnings
Slide 150: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of Net Debt to EBITDA and Net Debt to Capitalization Ratio Twelve months ended Twelve months ended (C$ in millions) December 31, 2019 December 31, 2018 Profit attributable to shareholders $ 339 $ 3,107 Finance expense net of finance income 218 219 Provision
Slide 151: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of EBITDA (loss) and Adjusted EBITDA Three months ended Three months ended Twelve months ended Twelve months ended (C$ in millions) December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Profit (loss) attributable to shareholders $ (891) $
Slide 152: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of Gross Profit Before Depreciation and Amortization Three months ended Three months ended Twelve months ended Twelve months ended (C$ in millions) December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Gross profit $ 460 $ 1,011 $ 3,340 $
Slide 153: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of Gross Profit Margins Before Depreciation Three months ended Three months ended Twelve months ended Twelve months ended (C$ in millions) December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Revenue Steelmaking coal (E) $ 1,105 $ 1,674 $
Slide 154: Non-GAAP Financial Measures
Non-GAAP Financial Measures Steelmaking Coal Unit Cost Reconciliation Three months ended Three months ended Twelve months ended Twelve months ended (C$ in millions, except where noted) December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Cost of sales as reported $ 864 $ 855 $ 3,4
Slide 155: Non-GAAP Financial Measures
Non-GAAP Financial Measures Copper Unit Cost Reconciliation Three months ended Three months ended Twelve months ended Twelve months ended (C$ in millions, except where noted) December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Revenue as reported $ 592 $ 633 $ 2,469 $ 2,714 By-pr
Slide 156: Non-GAAP Financial Measures
Non-GAAP Financial Measures Zinc Unit Cost Reconciliation (Mining Operations)1 Three months ended Three months ended Twelve months ended Twelve months ended (C$ in millions, except where noted) December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Revenue as reported $ 745 $ 820 $
Slide 157: Non-GAAP Financial Measures
Non-GAAP Financial Measures Zinc Unit Cost Reconciliation (Mining Operations)1 - Continued Three months ended Three months ended Twelve months ended Twelve months ended (C$ in millions, except where noted) December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Payable pounds sold (m
Slide 158: Non-GAAP Financial Measures
Non-GAAP Financial Measures Energy Operating Netback, Bitumen & Blended Bitumen Price Realized Reconciliations1 Three months ended Three months ended Twelve months ended Twelve months ended (C$ in millions, except where noted) December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 R
Slide 159: Non-GAAP Financial Measures
Non-GAAP Financial Measures Energy Operating Netback, Bitumen & Blended Bitumen Price Realized Reconciliations1 - Continued Three months ended Three months ended Twelve months ended Twelve months ended (C$ in millions, except where noted) December 31, 2019 December 31, 2018 December 31, 2019 Decembe
Slide 160: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of Free Cash Flow 2003 to (C$ in millions) Q4 2019 Cash Flow from Operations $46,587 Debt interest and finance charges paid (5,465) Capital expenditures, including capitalized stripping costs (24,974) Payments to non-controlling interests (NCI) (642) Free C
Slide 161: Investor Meetings
Investor Meetings March 3-6, 2020