Teck Resources Limited Class A · TSX:TECK.A
Teck Resources Limited Class A — Investor Day (April 2018)
18 slides from Teck Resources Limited Class A's investor day presentation, Apr 4, 2018
Slide 1: Overview and Strategy
Overview and Strategy April 4, 2018 Don Lindsay, President and Chief Executive Officer
Slide 2: Forward Looking Information
Forward Looking Information Both these slides and the accompanying oral presentation 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 Securities Act (Ontario)
Slide 3: Steelmaking Coal Price – Exceeding Expectations
Steelmaking Coal Price – Exceeding Expectations Coal Price Assessment1 350 300 US$ / tonne 250 200 150 100 50 HCC Price Average Price Since 2008 US$180/t Inflation-Adjusted Average Price Since 2008 US$197/t 3
Slide 4: A Solid Year in 2017
A Solid Year in 2017 Emerged stronger from the downturn, based on execution of our Five-Point Plan Generated record cash flow from operations, at lower commodity prices1 Large cash dividend payout; Buyback launched Achieved strong environmental performance Set a record for Teck’s safety performance
Slide 5: A Safe Mine is a Productive Mine
A Safe Mine is a Productive Mine • Achieved Teck’s best safety performance High-Potential Incident Frequency to date in 2017 0.8 Frequency (per 200,000 o Zero fatalities 0.6 hours worked) o 14% reduction in High-Potential Incidents 0.4 o 12% decrease in Total Recordable 0.2 Injury Frequency o 14% de
Slide 6: Senior Management Update
Senior Management Update Retiring Retiring Joining Tim Watson Ray Reipas Kieron McFadyen SVP SVP, Energy SVP, Energy 6
Slide 7: Our Innovation Focus
Our Innovation Focus Productivity Safety Sustainability Growth •Equipment automation •Fatigue monitoring •Ore sorting to reduce •Exploration tech: •Ore sorting technology systems energy use and tailings Hyperspectral core •Collision avoidance •Water management scanning •Digitally-enhanced operator p
Slide 8: Balance Shareholder Returns & Capex With Prudent Balance Sheet Management
Balance Shareholder Returns & Capex With Prudent Balance Sheet Management Strategy Capital Allocation • Maintain current production • Significant free cash flow even at lower prices Steelmaking • Optimize assets • Cash available to fund growth projects Coal • Neptune Terminals expansion • Maintain c
Slide 9: Quebrada Blanca 2
Quebrada Blanca 2 Developing the next major copper producer in Chile Long Life Asset • Initial mine life 25 years using only 25% of reserves and resources1 • Further upside potential in the district Quality Project • Brownfields site, low strip ratio • Very low sustaining capital • Total costs (AISC
Slide 10: Project Satellite
Project Satellite Surfacing value by advancing key activities Pre-feasibility Study Zafranal Consolidate Ownership (80%) Baseline Studies 35,880m Drilling Feasibility Study Zafranal C$43M in 20181 SEIA Prep & Approval 2016 2017 2018 2019 2020 Consolidate Ownership (100%) San Nicolás Baseline Studies
Slide 11: Neptune Facility Upgrade
Neptune Facility Upgrade Optimizing the footprint to allow for >18.5 Mtpa • All major permits in place, final project funds to be sanctioned in Q2 2018, with project completion in H1/20 • Work has commenced on the overpass and dumper vault; major construction and fabrication contracts awarded • The
Slide 12: Energy Strategy
Energy Strategy Fort Hills ramp-up • On track for full production by end 2018 • Comprehensive sales and logistics strategy in place • First sales in Q1 2018 Fort Hills growth potential • Debottlenecking in the near term • Longer term potential through expansion Future growth options • Frontier and L
Slide 13: Creating Value by Advancing Growth Projects
Creating Value by Advancing Growth Projects Multiple catalysts / value milestones in 2018 and beyond Fort Hills Waneta Dam Transaction San Nicolás • First of three trains in • Closure of sale in Q3 2018 • Aim to complete prefeasibility secondary extraction engineering and submit a producing at full
Slide 14: Emerged from the Downturn in a Strong Position
Emerged from the Downturn in a Strong Position Teck vs. Peer 5-yr Share Dilution1 Reflects Execution on Increase in number of outstanding shares from 2013 Our Five-Point Plan 50% 50% 1. No equity dilution 40% 40% 2. No operating assets sold 30% 30% 3. Invested in production growth from Fort Hills 20
Slide 15: Higher Operating Cash Flow per Share
Higher Operating Cash Flow per Share Teck is the only company among its peers for which 2017 Indexed for maximum operating cash flow per share 2006-2016 operating cash flow per share exceeds the previous peak year1 140 140 Teck 120 120 100 100 80 80 60 60 40 40 20 20 0 0 2005 2006 2007 2008 2009 201
Slide 16: Steelmaking Coal Price – Exceeding Expectations
Steelmaking Coal Price – Exceeding Expectations Coal Price Assessment1 350 300 US$ / tonne 250 200 150 100 50 HCC Price Average Price Since 2008 US$180/t Inflation-Adjusted Average Price Since 2008 US$197/t 16
Slide 17: Notes
Notes Slide 3: Steelmaking Coal Price – Exceeding Expectations 1. HCC price is based on the negotiated quarterly benchmark price from January 1, 2008 to April 13, 2010 and the Argus Premium HCC FOB Australia assessments from April 14, 2010, in US dollars. Steelmaking coal prices for the past ten yea
Slide 18: Overview and Strategy
Overview and Strategy April 4, 2018 Don Lindsay, President and Chief Executive Officer