42 slides from Teck Resources Limited Class A's earnings presentation, Feb 20, 2025
Slide 1: Fourth Quarter 2024 Conference Call
FOURTH QUARTER 2024 CONFERENCE CALL February 20, 2025 1
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: Overview
OVERVIEW Jonathan Price President and Chief Executive Officer 3
Slide 4: 2024 Highlights
2024 HIGHLIGHTS Advancing our responsible growth and value creation strategy METALS FOR THE VALUE-DRIVEN CORE EXCELLENCE RESILIENCE ENERGY TRANSITION GROWTH • Adjusted EBITDA** more • Portfolio transformation, • Progressed copper growth • Industry-leading balance than doubled to $2.9B; loss repositi
Slide 5: Q4 2024 Highlights
Q4 2024 HIGHLIGHTS Third consecutive quarter of record copper production, driven by QB Record copper production as QB ramped up and achieved design throughput rates Adjusted EBITDA* increased 160% to $835M; profit from continuing operations before taxes was $256M Further debt reductions of C$275M (U
Slide 6: Continued Commitment to Safety and Sustainability
CONTINUED COMMITMENT TO SAFETY AND SUSTAINABILITY Strong safety performance year-over-year Safety & Health Teck-Controlled High Potential Incident (HPI) • High Potential Incident (HPI) frequency rate remained low Performance1 (per 200,000 hours worked) in 2024 High Potential Incident (HPI) Frequency
Slide 7: Record QB Production in Q4 2024 - Ramp-Up on Track
RECORD QB PRODUCTION IN Q4 2024 - RAMP-UP ON TRACK Record daily production throughout Q4 2024 Achieved design throughput Recovery rate improving 2025 Growth • Copper production expected to increase to 230-270kt in 2025 Design: 143ktpd Design: 86-92% 139 87 • 18-day extended shutdown in 131 83 84 85
Slide 8: Growing Copper Production with Improving Margins
GROWING COPPER PRODUCTION WITH IMPROVING MARGINS Increase in copper production at lower costs in 2025 Copper Production Net Cash Unit Cost* Copper EBITDA Margin* Expansion (kt, contained copper) (US$/lb) (%, from operations) +10-27% (12)-(25)% 33% 42% 53% 2025 2023 2024 490- Consensus1 2.20 565 1.65
Slide 9: Value-Accretive Growth
VALUE-ACCRETIVE GROWTH Significant growth expected in 2025; path to ~800 ktpa before end of the decade Value-Accretive Near-Term Copper Projects ~800 ktpa Quebrada Blanca Optimization & Debottlenecking (Cu-Mo-Ag | Brownfield | Chile | 60%) ~45-120 kt increase expected Optimizes value from a Tier 1 a
Slide 10: Q4 2024 & FY 2024 Results
Q4 2024 & FY 2024 RESULTS Crystal Prystai Executive Vice President and Chief Financial Officer 10
Slide 11: Q4 2024 and FY 2024 Financial Performance
Q4 2024 AND FY 2024 FINANCIAL PERFORMANCE FY 2024 • Adjusted EBITDA** more than doubled to Q4 2024 $2.9B in 2024 Gross profit before D&A** $1.1B $3.3B +144% +66% − 160% increase in Q4 2024 to $835M • 21% reduction ($87M) in corporate costs1 Gross profit $542M $1.6B +257% +45% in 2024 following struc
Slide 12: Significant Increase in Q4 2024 Profitability
SIGNIFICANT INCREASE IN Q4 2024 PROFITABILITY Adjusted EBITDA increased 160%; strong sales volumes and cost performance Profitability ($M) Profit (Loss) from Continuing Operations before Taxes Net Finance Expense D&A Adjustments Non-Controllable Controllable Adjusted EBITDA* 161 5 $835 157 295 21 52
Slide 13: Copper Segment
COPPER SEGMENT Increased profitability from strong sales and prices Q4 2024 Performance Gross Profit Gross Profit Margin Copper Copper Copper Net Cash Before Depreciation Before Depreciation Realized Price Production Sales Revenue Unit Cost* & Amortization* & Amortization* Q4 2024A US$4.17/lb 122 kt
Slide 14: Significant Growth in Copper Production at Lower Net Cash Unit Costs Expected in 2025
SIGNIFICANT GROWTH IN COPPER PRODUCTION AT LOWER NET CASH UNIT COSTS EXPECTED IN 2025 Copper Production1,2 (kt) Net Cash Unit Costs*,1,3 (US$/lb) Quebrada Blanca Highland Valley Antamina (22.5%) Carmen de Andacollo 2.20 490-565 45-55 1.65-1.95 446.0 39.7 80-90 96.1 135-150 102.4 230-270 207.8 2024 2
Slide 15: Zinc Segment
ZINC SEGMENT Strong production and cost performance at Red Dog Q4 2024 Performance Gross Profit Gross Profit Before Margin Before Zinc Red Dog Zinc Red Dog Refined Zinc Refined Zinc Net Cash Depreciation & Depreciation & Realized Price Production Zinc Sales Production Sales Revenue Unit Cost* Amorti
Slide 16: Focus on Cost Discipline and Improving Cash Flow in Zinc
FOCUS ON COST DISCIPLINE AND IMPROVING CASH FLOW IN ZINC FOR 2025 AND BEYOND Zinc Production1,2 (kt) Net Cash Unit Costs*,1,3 (US$/lb) Zinc in Concentrate (kt) Refined Zinc (kt) Red Dog Antamina (22.5%) 95-105 0.45-0.55 615.9 60.3 525-575 256.0 430-470 0.39 95-105 190-230 555.6 430-470 2024 2025E 20
Slide 17: Disciplined Capital Allocation Framework
DISCIPLINED CAPITAL ALLOCATION FRAMEWORK Commitment to return 30-100% of available cash flow to shareholders* Balancing value accretive growth with cash returns to shareholders and a strong balance sheet Cash Flow Sustaining Base Supplemental from Operations Capital Dividend Shareholder after intere
Slide 18: Industry-Leading Balance Sheet
INDUSTRY-LEADING BALANCE SHEET Net cash position Net Cash* Position Debt Reduction Debt Repayments (US$M) As at December 31, 2024 Completed in 2024 $2.1B $2.5B 294/year 143 245 187 195 167 147 Term Notes Outstanding Liquidity 113 As at December 31, 2024 As of February 19, 2025 US$1.0B $11.3B 2031 20
Slide 19: Strong Track Record of Cash Returns to Shareholders
STRONG TRACK RECORD OF CASH RETURNS TO SHAREHOLDERS Significant authorized returns remaining, improving per-share value Historical Cash Returns to Shareholders ($M) Additional Cash Returns to Shareholders ~$5.1B returned to shareholders since 20201 $1.8B2 in authorized share buybacks remaining from
Slide 20: Investing in Near-Term Copper Growth
INVESTING IN NEAR-TERM COPPER GROWTH Sustaining capital and capitalized stripping remain stable Sustaining Capital and Capitalized Stripping1 (C$M) Total Growth Capital1 (C$M) Teck Attributable Growth Capital1 (US$) Sustaining Capital Capitalized Stripping Copper Zinc 2025E 1,403 Copper (after partn
Slide 21: Closing Remarks
CLOSING REMARKS Jonathan Price President and Chief Executive Officer 21
Slide 22: Fundamentals of Our Commodities Remain Robust
FUNDAMENTALS OF OUR COMMODITIES REMAINS ROBUST Current macro and political environment supports base metals outlook Copper Zinc Global Economic Growth Increased urbanization, increased population growth and increased demand for infrastructure and technology Electrification Grid expansion and renewal
Slide 23: Teck's Commercial Strategy Enables Resilience
TECK’S COMMERCIAL STRATEGY ENABLES RESILIENCE Diversification provides commercial optionality Copper Concentrate Sales1 Finished and Specialty Metals Europe Americas (ex-US) 25% 10% China 24% Asia 41% Zinc Concentrate Sales1 Europe Regionally balanced sales book Americas (ex-US) 20% 34% Limited tari
Slide 24: 2025 Priorities to Drive Value Creation
2025 PRIORITIES TO DRIVE VALUE CREATION Balancing growth and cash returns to shareholders Ramp-up QB to steady state, including the molybdenum plant Grow copper production, reduce unit costs, and improve margins Execute on the record authorized share buyback Progress value-accretive copper growth pr
Slide 25: Q&A
Q&A Jonathan Price President and Chief Executive Officer 25
Slide 26: Appendix
APPENDIX 26
Slide 27: Advancing Well-Funded Near-Term Projects to Sanction
ADVANCING WELL-FUNDED NEAR-TERM PROJECTS TO SANCTION Potential sanction decisions in 2025 Highland Valley Zafranal San Nicolás QB Optimization Mine Life Extension and Debottlenecking (Cu-Mo | Brownfield | British Columbia | 100%) (Cu-Au | Greenfield | Arequipa | 80%) (Cu-Zn Ag-Au | Greenfield | Zaca
Slide 28: Well-Funded Near-Term Projects
WELL-FUNDED NEAR-TERM PROJECTS De-risked through financial and operational partnerships Value-Accretive Near-Term Copper Projects Total Estimated Attributable Estimated Post-Sanction Capital Teck Ownership Post-Sanction Capital Highland Valley Mine Life Extension (Cu-Mo | Brownfield | Canada | 100%)
Slide 29: Short-Term Copper Market Fundamentals
SHORT-TERM COPPER MARKET FUNDAMENTALS Concentrate tightness putting financial pressure on smelters • Mine production stable in 2024 with below average Chinese Smelter Capacity Growth Causing Concentrate disruptions Tightness1 (kt) Cu Growth from Concs Cu Growth from Scrap Smelter Capacity Growth • C
Slide 30: Long-Term Copper Market Fundamentals
LONG-TERM COPPER MARKET FUNDAMENTALS Supply remains constrained; energy still drives global growth • Market heavily reliant on new mine production to Traditional Copper Growth vs Energy Transition fill concentrate gap; minimal response so far Growth1 (kt) 40,000 despite record high prices 114% Elect
Slide 31: Short-Term Zinc Market Fundamentals
SHORT-TERM ZINC MARKET FUNDAMENTALS Mine closures pushed market into concentrate tightness • Low zinc prices forced mine closures in 2023, Drivers of Concentrate Deficit1 (kt) continue to impact market 2025 mine forecast below 2024 guidance 13,500 738 13,412 • Concentrate tightness most severe on re
Slide 32: Long-Term Zinc Market Fundamentals
LONG-TERM ZINC MARKET FUNDAMENTALS Weak prices and underinvestment are expected to drive longer-term shortages • Lack of investment in new mines expected to slow Long-Term Total Zinc Demand1 (Mt) mine growth post-2026 Zone of Balance Zinc Balance Zinc Supply Zinc Demand • Global mine production flat
Slide 33: Copper Guidance
COPPER GUIDANCE Expect higher copper production and lower net cash unit costs and capex in 2025 Copper Production1,2 (kt) Net Cash Unit Costs*,1,3 (US$/lb) Quebrada Blanca Highland Valley Antamina (22.5%) Carmen de Andacollo 550-620 530-600 2.20 490-565 45-55 1.87 45-55 455-525 1.65-1.95 446.0 45-55
Slide 34: Zinc Guidance
ZINC GUIDANCE Reflects declining grades at Red Dog – advancing studies for mine life extension Zinc Production1,2 (kt) Net Cash Unit Costs*,1,3 (US$/lb) Red Dog Sales1 (kt) Red Dog Antamina (22.5%) 184 615.9 0.55 525-575 0.45-0.55 60.3 465-525 95-105 400-445 75-90 55-65 335-375 0.30 35-45 45-55 555.
Slide 35: Cost of Sales
COST OF SALES 2024 Copper Cost of Sales (C$) Zinc Cost of Sales (C$) Transportation Depreciation & Amortization 5% 10% Operating Costs Operating Costs 65% Transportation 38% 11% Depreciation & Amortization 30% Royalties 15% Raw Material Purchases 26% Copper Operating Costs (%) Zinc Operating Costs (
Slide 36: Sensitivities
SENSITIVITIES Estimated Effect of Changes on our Annualized Profitability1 ($M) Estimated Effect on Adjusted Profit (Loss) 2025 Mid-Range from Continuing Operations Estimated Effect on Production Estimates2 Attributable to Shareholders3 Adjusted EBITDA*, (kt) Changes ($M) 3($M) US$ exchange C$0.01 $
Slide 37: Settlement Pricing Adjustments
SETTLEMENT PRICING ADJUSTMENTS Simplified Settlement Pricing Adjustment Model Total Reported Settlement Pricing Adjustments (Pre-tax settlement pricing adjustment in C$M) (Pre-tax settlement pricing adjustment in C$M) Outstanding at Outstanding at Quarterly Pricing 300 December 31, 2024 September 30
Slide 38: Endnotes
ENDNOTES SLIDE 4: 2024 HIGHLIGHTS SLIDE 18: INDUSTRY-LEADING BALANCE SHEET 1. Corporate costs include general and administration costs and research and innovation expenses. 1. As at December 31, 2024. 2. For Teck-controlled operations. HPI frequency rate is calculated by the number of events in the
Slide 39: Endnotes
ENDNOTES SLIDE 33: COPPER GUIDANCE 1. As at February 19, 2025. See Teck’s Q4 2024 press release for further details. 2. We include 100% of production from our Quebrada Blanca and Carmen de Andacollo mines in our production volumes, even though we do not own 100% of these operations, because we fully
Slide 40: Non-GAAP Financial Measures and Ratios
NON-GAAP FINANCIAL Our financial results are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International MEASURES Accounting Standards Board. This presentation includes reference to certain non-GAAP financial measures and non-GAAP ratios, which are n
Slide 41: Copper EBITDA Margin Reconciliation
COPPER EBITDA MARGIN RECONCILIATION Reconciliation between copper segmented profit, revenues and EBITDA margin C$M, copper segment 2023 2024 Profit (Loss) Before Taxes from Continuing Operations 524 303 Net finance expense 56 664 Depreciation and amortization 553 1,356 EBITDA 1,133 2,323 EBITDA 1,13
Slide 42: Fourth Quarter 2024 Conference Call
FOURTH QUARTER 2024 CONFERENCE CALL February 20, 2025 42