Teck Resources Limited Class A · TSX:TECK.A
Teck Resources Limited Class A — Investor Day (November 2024)
153 slides from Teck Resources Limited Class A's investor day presentation, Nov 5, 2024
Slide 1: Strategy Day
Photo to be replaced STRATEGY DAY November 5, 2024
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: Disciplined Growth, Strong Returns
VALUE-DRIVEN DISCIPLINED GROWTH, STRONG RETURNS November 5, 2024 Jonathan Price President and Chief Executive Officer
Slide 4: Responsible Growth and Value Creation
RESPONSIBLE Driven by our purpose and values, we will grow to become one of the world’s leading providers of GROWTH AND responsibly-produced energy transition metals VALUE CREATION Balancing growth with cash returns to shareholders Our strategy is focused around four pillars: METALS FOR THE VALUE-DR
Slide 5: Strong Outlook for Energy Transition Metals
METALS FOR THE ENERGY TRANSITION STRONG OUTLOOK FOR ENERGY TRANSITION METALS Copper Zinc Global Economic Growth Increased urbanization, increased population growth and increased demand for infrastructure and technology Energy Transition Race to decarbonize to ensure a net zero future driven by elect
Slide 6: Delivering the Strategy to Unlock Growth
METALS FOR THE ENERGY TRANSITION DELIVERING THE STRATEGY TO UNLOCK GROWTH Transformed to a pure-play energy transition metals company February 2023 February 2023 April 2023 May 2023 March 2024 July 2024 Sold our Formed Formed Implemented Completed Completed sale interest in NewRange San Nicolas suns
Slide 7: Foundation of World-Class Operations
CORE EXCELLENCE FOUNDATION OF WORLD-CLASS OPERATIONS Energy transition metal assets in established mining jurisdictions World-Class Copper Operations Integrated Zinc Operations Quebrada Blanca Highland Valley Antamina Carmen de Andacollo Red Dog Trail (60% ownership) (100% ownership) (22.5% ownershi
Slide 8: Excellence in Operations and Sustainability
CORE EXCELLENCE EXCELLENCE IN OPERATIONS AND SUSTAINABILITY RESILIENCE Foundation for reliable value creation Core Excellence Sustainability Health and safety of our people Building and maintaining trust with is our first priority communities, Indigenous groups, and governments Operating excellence
Slide 9: Value-Accretive Growth
VALUE-DRIVEN GROWTH VALUE-ACCRETIVE GROWTH Path to increase copper production to ~800ktpa before the end of the decade Value-Accretive Near-Term Copper Projects ~8001 ktpa Quebrada Blanca Optimization & Debottlenecking Increase by (Cu-Mo-Ag | Brownfield | Chile | 60%) ~90-135kt Optimizes value from
Slide 10: Disciplined Capital Allocation Framework
VALUE-DRIVEN GROWTH DISCIPLINED CAPITAL ALLOCATION FRAMEWORK RESILIENCE 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 Di
Slide 11: One of the Strongest Balance Sheets in the Sector
RESILIENCE ONE OF THE STRONGEST BALANCE SHEETS IN THE SECTOR Net cash position and long dated debt maturity Strong Balance Conservative Debt Repayments1 (US$M) Sheet1 Leverage1 Debt repaid YTD at September 2024: Term notes outstanding: $2.3B US$1.1B 177 294/year 253 195 188 167 Leading to a current
Slide 12: Strong Track Record of Shareholder Returns
RESILIENCE STRONG TRACK RECORD OF SHAREHOLDER RETURNS 4 Significant authorized returns, with $2.3B remaining, improving per-share value Historical Shareholder Returns ($M) Additional Shareholder Returns $5.3B returned to shareholders since 20191 $2.3B remaining from authorized share buyback program
Slide 13: Teck Re-Rating to Trade in Line with Copper Peers
VALUE-DRIVEN GROWTH TECK RE-RATING TO TRADE IN LINE WITH COPPER PEERS Current EV/NTM EBITDA Multiples1 Diversified Mining Peers Copper Mining Peers 13.2x 10.6x 8.4x 7.1x 7.3x 5.4x 5.8x 6.0x 4.8x 4.4x 4.5x 3.1x Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 January 10,
Slide 14: Delivering Disciplined Growth & Strong Returns
DELIVERING DISCIPLINED GROWTH & STRONG RETURNS 1 High-quality assets, including three Tier 1 assets, in well-established mining jurisdictions 2 Value-accretive copper growth pipeline with a path to ~800 ktpa before the end of the decade Track record of strong shareholder returns, with $5.3B returned
Slide 15: Presenting Today
PRESENTING TODAY Focused on delivering value for shareholders Senior leadership team presenting today Amparo Cornejo Brock Gill Crystal Prystai Dale Webb Ian Anderson Karla Mills Shehzad Bharmal Chief Sustainability SVP, Operations, EVP and Chief SVP, Operations, EVP and Chief EVP and Chief Project
Slide 16: Appendix
APPENDIX 14
Slide 17: Endnotes
ENDNOTES SLIDE 4: DELIVERING THE STRATEGY TO UNLOCK VALUE 1. Revenue for 2025 based on consensus estimates from 16 analyst models taken in May 2024. SLIDE 5: FOUNDATION OF WORLD-CLASS OPERATIONS 1. Based on consensus numbers for 2025. SLIDE 9: ONE OF THE STRONGEST BALANCE SHEETS IN THE SECTOR 1. As
Slide 18: 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 19: Operations and Safety
Photo to be replaced CORE EXCELLENCE OPERATIONS AND SAFETY November 5, 2024 Shehzad Bharmal EVP and Chief Operating Officer
Slide 20: World Class Portfolio with Tier 1 Assets
CORE EXCELLENCE WORLD CLASS PORTFOLIO WITH TIER 1 ASSETS 1 4 3 Portfolio Highlights 6 6 1 2 5 Operating Assets Development Assets Including three top tier assets located Industry-leading project pipeline, providing in well-established mining jurisdictions pathway towards >800ktpa Cu production 2 in
Slide 21: Operational Priorities
CORE EXCELLENCE OPERATIONAL PRIORITIES 1 2 3 Everyone goes home Operating & Cost safe and healthy every People & Culture Discipline day Fatal risk program implemented New leadership structure Consistent operational performance Increase uptime through reducing Mental health focus Performance mindset
Slide 22: Safety Defines How We Operate
CORE EXCELLENCE 1 SAFETY DEFINES HOW WE OPERATE Focus on a common culture and standards fostered by leadership behaviors Our Approach to Safety Improving our safety performance Culture Leadership 41% reduction in total recordable injury frequency1 A strong courageous safety culture protecting Suppor
Slide 23: Leadership Drives Performance
CORE EXCELLENCE 2 LEADERSHIP DRIVES PERFORMANCE New regional structure adds senior bench strength and reinforces accountability Latin America North America Copper Producing Copper Producing Safety and Health • Antamina • Highland Valley • Quebrada Blanca Copper • Carmen de Andacollo Zinc Producing O
Slide 24: Management Operating System
CORE EXCELLENCE MANAGEMENT OPERATING SYSTEM Key to structural improvement with demonstrated results • People centered approach to standardize ways of working • Common, understood performance indicators • Unified and integrated planning function spanning short and medium term planning horizons Our Ma
Slide 25: MOS Driving Improvements at Red Dog
CORE EXCELLENCE MOS DRIVING IMPROVEMENTS AT RED DOG Proactive monitoring and control drives improvement on key metrics Asset Utilization1 Throughput1 Key Benefits +6% 1 Performance Consistency - Greater +4% consistency in operations boosts confidence in achieving production targets. 2 Improved Recov
Slide 26: Improving Cost Structure and Productivity
CORE EXCELLENCE 3 IMPROVING COST STRUCTURE AND PRODUCTIVITY Focused approach to technology implementation to improve cost and productivity Operating Cost Focus • Optimizing consumables, maintenance and contractors • Procurement contracts and supply chain efficiencies Extracting Value from Technology
Slide 27: Operational Excellence
CORE EXCELLENCE OPERATIONAL EXCELLENCE Standardizing processes for consistent outcomes 1 Unwavering commitment to safety and health 2 Strong portfolio of operating assets with Tier 1 operations in the Americas 3 New structure and leadership in place to drive consistent operating performance 4 Expand
Slide 28: Latin America Operations
Presentation Phototitle perreplaced to be agenda; Photo to be updated LATIN AMERICA OPERATIONS November 5, 2024 Dale Webb SVP, Operations, Latin America
Slide 29: LATAM Operations
LATAM OPERATIONS Two tier 1 assets and value-accretive near-term growth projects Region Highlights 3 2 Operating Assets 3 Development Assets Copper Producing 1 Antamina 2 Quebrada Blanca (‘QB’) 1 3 Carmen de Andacollo (‘CdA’) 1 Development Projects 1 2 Zafranal San Nicolas 2 370-430 kt 95-105 kt 4.7
Slide 30: Quebrada Blanca
QUEBRADA BLANCA
Slide 31: Quebrada Blanca ('QB')
CORE EXCELLENCE QUEBRADA BLANCA (‘QB’) Tier 1, low-cost, long-life cornerstone asset Large, long-life deposit capable of supporting multiple 1 expansions QB 2 Ramp-up to full production nearing completion Strong cash flow generation expected, due to lower costs, low 3 sustaining capital and low capi
Slide 32: QB Ramp-Up – Throughput Nearing Design Rates
CORE EXCELLENCE QB RAMP-UP – THROUGHPUT NEARING DESIGN RATES 2 Throughput ramp-up ahead of industry average Throughput1 (% of design) Improving Plant Throughout Performance 125% Pre-commissioning / Ramp-up Commissioning Achieved design capacity 2 SAG mills & 4 ball mills 180 160 Design throughput ra
Slide 33: QB Ramp-Up – Continuing to Drive Recovery Rates
CORE EXCELLENCE QB RAMP-UP – CONTINUING TO DRIVE RECOVERY RATES 2 Confidence in driving recovery performance Improving Copper Recovery Performance 100 Design recovery rates 86-92% Key Initiatives 90 80 • Building upon HVC’s learnings to optimize asset 70 • Increased mine blending opportunities as mi
Slide 34: QB Ramp-Up – Higher Grades to Come Through
CORE EXCELLENCE QB RAMP-UP – HIGHER GRADES TO COME THROUGH 2 Stabilized mine planning and grade profile Current Mine Plan Previous Mine Plan Delay in higher grade material from 2025 to 2026 Buttress • Mining rate in 2024 in line with plant capacity/ramp-up − Mine sequence impacted resulting in delay
Slide 35: QB Ramp-Up Demonstrating Robust Design
CORE EXCELLENCE QB RAMP-UP DEMONSTRATING ROBUST DESIGN 2 Concentrator – Focus Area Grinding Bulk Lines 1 & 2 Flotation Rougher, cleaner, Scavenger Pebble Crushers Iquiq ue Concentrator Operati on Plant Moly . MINE Plant AREA Autonomous Substation Transport Crusher System Integrated Santia Cent Opera
Slide 36: Context to Our 2025 Guidance
CORE EXCELLENCE CONTEXT TO OUR 2025 GUIDANCE 2 Production guidance of 240-280kt achievable based on current mine performance 2025 Production (kt, contained copper) Low End of Guidance 3 1 • Marginal improvement in asset utilization from current performance +20 • No change in Q3 daily throughput of 1
Slide 37: QB – Continued Areas of Focus into 2025
CORE EXCELLENCE QB – CONTINUED AREAS OF FOCUS INTO 2025 2 Key focus areas to deliver Focus on stabilization Ramp-up the molybdenum plant to Value Chain Optimization full capacity Recovery • Delayed full ramp-up until copper circuit Mine Operations Stability stable • Improved ability to blend as the
Slide 38: QB to Generate Strong EBITDA and Cash Flows
CORE EXCELLENCE QB TO GENERATE STRONG EBITDA AND CASH FLOWS 3 Low sustaining and stripping capex results in high FCF conversion Illustrative 2026 EBITDA1 ($B) High cash conversion potential Costs expected to reduce going forward Low sustaining capital • Increase in copper production $2.6B US$5.00/lb
Slide 39: Antamina
ANTAMINA
Slide 40: Antamina
CORE EXCELLENCE ANTAMINA One of the largest copper and zinc mines in the world by production Tier 1, high-grade copper-zinc deposit producing copper, zinc, 1 molybdenum, and lead concentrates 2 Low C1 costs due to high grade and zinc credits 3 Significant land position with both near and long-term e
Slide 41: First Quartile Cash Costs
CORE EXCELLENCE FIRST QUARTILE CASH COSTS 2 7th largest copper mine globally • Largest mine in Peru Top 10 Largest Copper Mines – Cash Cost Benchmarking1 (US$/lb, after by-products) • High grade, high throughput operation • 0.94% copper reserve head grade • ~146,000 tonnes processed/day • Large copp
Slide 42: Antamina: Life Extension
CORE EXCELLENCE ANTAMINA: LIFE EXTENSION 3 Permit approval received in Q1 2024 Tucush Waste Dump Received regulatory approval to extend life of mine to 2036 Open Pit • Maintains current production profile of well known, proven asset Tailings Facility Enables low-risk US$2B investment (Teck’s share -
Slide 43: Carmen de Andacollo (CdA)
CARMEN DE ANDACOLLO (CDA) / / /
Slide 44: Carmen de Andacollo ('CdA')
CORE EXCELLENCE CARMEN DE ANDACOLLO (‘CDA’) Highly efficient operation 1 One of the Americas lower cost operations (on a $/t milled basis) 2 Operational and cost improvements driving results 3 Cash generative asset 12 year Current mine life 0.31% Cu reserve grade 50-60kt Annual Cu production1 guidan
Slide 45: Improving Operational and Cost Performance
CORE EXCELLENCE 2 IMPROVING OPERATIONAL AND COST PERFORMANCE Resolved production limitation and improving cost control to deliver value Unlocking throughput Addressing water availability to site – resolved production limitation • Reduced water availability during 2023 due to drought and voluntary re
Slide 46: Latin America Operations
LATIN AMERICA OPERATIONS
Slide 47: North America Operations
Presentation Phototitle perreplaced to be agenda; Photo to be updated NORTH AMERICA OPERATIONS November 5, 2024 Brock Gill SVP, Operations, North America
Slide 48: North America Operations
CORE EXCELLENCE NORTH AMERICA OPERATIONS Cornerstone copper asset and fully integrated zinc operations Region Highlights 3 3 1 2 1 Operating Assets Development Assets 1 2 3 Copper Operations 140-160 460-510 270-300 1 Highland Valley Copper (‘HVC’) kt kt kt Zinc Operations 1 Red Dog 2025 Cu productio
Slide 49: Highland Valley Copper
HIGHLAND VALLEY COPPER
Slide 50: Highland Valley Copper ('HVC')
CORE EXCELLENCE HIGHLAND VALLEY COPPER (‘HVC’) Asset highlights 1 Technology and Innovation underpins efficient, low-cost operations 2 Mine plan drives material increase in 2025 production 3 Attractive, low risk, brownfield mine life extension 4 years Current mine life, potential 0.30% 140-160kt $47
Slide 51: Multiple Pits and Tailored Flowsheet Offers Flexibility
CORE EXCELLENCE MULTIPLE PITS AND TAILORED FLOWSHEET OFFERS FLEXIBILITY Lornex Pit Valley Pit Plant Site 34 33
Slide 52: Innovation Has Driven Efficiencies
CORE EXCELLENCE INNOVATION HAS DRIVEN EFFICIENCIES 1 Will continue to add value during HVC MLE and across other assets HVC has utilized well-understood technology to drive production Autonomous Haulage System • Partner with Caterpillar to implement autonomous haulage system Haul truck utilization •
Slide 53: Efficient Open Pit Mine
CORE EXCELLENCE EFFICIENT OPEN PIT MINE 1 One of the lowest cost operations in the Americas Open Pit Americas Operating Cost Benchmarking1 (US$/t mined) • Highly efficient operation driving significant EBITDA* • Skilled and efficient workforce • Operating flexibility and resiliency with multiple cru
Slide 54: Near-Term Outlook
CORE EXCELLENCE NEAR-TERM OUTLOOK 2 Large proportion of higher grade and softer Lornex ore Production (kt, contained copper) HVC Ore Feed (% of overall throughput) +50% 19% 63% 100% 100% 81% 37% 2 2 2022A 2023A 2024E 2025E Valley Lornex 140-160 Lornex Ore Characteristics 99 97-105 Throughput Cu Reco
Slide 55: Geology Highlights
CORE EXCELLENCE GEOLOGY HIGHLIGHTS HVC’s unique geology enables efficient processing and high-quality output Pit Map Reserves and Resources Statement (YE 2023) A A’ Grades Contained Metal Tonnes Cu Mo Cu Mo (Mt) (%) (%) (kt) (kt) Original Topo Reserves 263 0.30% 0.009% 779 24 M+I 1,114 0.28% 0.009%
Slide 56: History of Successful Extensions at HVC
CORE EXCELLENCE HISTORY OF SUCCESSFUL EXTENSIONS AT HVC 3 HVC Production History Mt % 200 Illustrative 0.80% 3rd MLE MLE 180 Sanction 0.70% 2nd MLE 160 1st MLE 0.60% 140 0.50% 120 100 0.40% 80 0.30% 60 0.20% 40 0.10% 20 - 0.00% Ore Copper Feed Grade Experience executing on multiple successful extens
Slide 57: Overview of Highland Valley Mine Life Extension
CORE EXCELLENCE OVERVIEW OF HIGHLAND VALLEY MINE LIFE EXTENSION Attractive capital intensity Overview Scope Permitting Quality brownfield extension Well-understood ore body and On-track with regulatory and proven asset performance Indigenous reviews in progress • Extends existing HVC copper producti
Slide 58: Project Scope
CORE EXCELLENCE PROJECT SCOPE Extensions Upgrades Key areas of upgrades and relocations Water Management Infrastructure Adjustments Highland TSF Capacity Increase Valley Pit Extension Concentrator Upgrades Mobile Equipment and Truck Shop Valley South Waste Facility Infrastructure Relocations Bethleh
Slide 59: HVC Mine Life Extension
CORE EXCELLENCE HVC MINE LIFE EXTENSION Estimated project capital of $1.8-2.0B; average annual Cu production of 137kt1 to 2045 HVC Ore Feed (% of overall throughput) 100% 80% 60% 40% 20% 0% 2022A 2025E 2028E 2031E 2034E 2037E 2040E 2043E Valley Lornex Highmont Bethlehem Ore Mined Tonnes and Forecast
Slide 60: Red Dog
RED DOG
Slide 61: Red Dog Operations ('RDO')
CORE EXCELLENCE RED DOG OPERATIONS (‘RDO’) Asset highlights One of the world’s largest zinc mines1, and largest critical minerals mine 1 in the United States 2 Consistent cash flow generation Built on a world-class mining district with potential to extend mine life 3 well beyond current operation 7
Slide 62: Red Dog Mine Life Extension
CORE EXCELLENCE RED DOG MINE LIFE EXTENSION 3 High grade, large-scale underground mine that leverages existing mill and infrastructure Overview Scope Permitting High zinc and lead grades Leveraging existing infrastructure NANA relationship • Aktigiruq estimated at >100Mt of • Surface resource drilli
Slide 63: Trail
TRAIL
Slide 64: Trail Operations Asset Highlights
CORE EXCELLENCE TRAIL OPERATIONS ASSET HIGHLIGHTS One of the largest fully integrated polymetallic smelting and refining complexes Produce refined zinc and lead, precious and specialty metals, chemicals and fertilizer products Strong strategic value enabling vertical integration for the zinc segment
Slide 65: Vertical Integration for the Zinc Business
CORE EXCELLENCE VERTICAL INTEGRATION FOR THE ZINC BUSINESS Largest zinc smelter in North America • Vertically integrated feed supply (Red Dog) North America Zinc Smelter Capacity (kt) • Supports stability and commercial 270-300 security of feed • Focus on cash generation • Best-in-class carbon inten
Slide 66: North America Operations
NORTH AMERICA OPERATIONS
Slide 67: Appendix
APPENDIX a
Slide 68: Endnotes
ENDNOTES SLIDE 1: WORLD CLASS PORTFOLIO WITH TIER 1 ASSETS SLIDE 43: RED DOG OPERATIONS (“RDO”) 1. Production shown as contained metal. 1. Source: Wood Mackenzie. Top zinc producing mine 4 of the last 5 years. SLIDE 4: SAFETY DEFINES HOW WE OPERATE 2. Production shown as contained metal. 1. TRIF red
Slide 69: 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 70: Commercial Excellence
Photo to be replaced COMMERCIAL EXCELLENCE November 5, 2024 Ian Anderson Executive Vice President and Chief Commercial Officer
Slide 71: Teck's Approach to Commercial Excellence
CORE EXCELLENCE TECK'S APPROACH TO COMMERCIAL EXCELLENCE Driving margin optimization, with focus on delivering optimally to customers 1 2 3 4 High quality Optimized Geographically Strong customer products attract logistics chain balanced book relationships to differentiated for full value with optio
Slide 72: High Quality Copper Drives Premium Pricing
CORE EXCELLENCE 1 HIGH QUALITY COPPER DRIVES PREMIUM PRICING Teck in the Copper Market QB has some of the lowest arsenic content • Top 10 global copper marketer - long-term contracts with copper concentrate… top tier smelters 15,000 Tonnes Arsenic Contained • QB concentrate is a clean, low arsenic,
Slide 73: Red Dog Produces Low Cost and Low Carbon Zinc
CORE EXCELLENCE 1 RED DOG PRODUCES LOW COST AND LOW CARBON ZINC Teck in the Zinc Market Red Dog is in the 36th percentile of C1 costs1… 200 • Top 5 global zinc producer – long-term contracts with top tier smelters 150 • High grade concentrate with low deleterious elements Red Dog: C1 (c/lb) RED DOG
Slide 74: Geographic Diversity
CORE EXCELLENCE 2 GEOGRAPHIC DIVERSITY Provides commercial optionality: Copper Concentrate Sales1 Americas • Risk mitigation Europe 25% 10% • Market flexibility China 24% • Optimized logistics Asia 41% Zinc Concentrate Sales1 Europe Americas 20% 34% Asia 28% China 18% 5
Slide 75: Mature, Low-Cost Logistics Network
CORE EXCELLENCE 3 MATURE, LOW-COST LOGISTICS NETWORK Terminal capacity and QB Port – 100% Teck Owned transportation mode Vancouver Wharves – long term partner options Rail & trucking access Competitive tenders High quality marine and emissions reduction providers agreements 6
Slide 76: Service and Quality Drive Enduring Customer Relationships
CORE EXCELLENCE 4 SERVICE AND QUALITY DRIVE ENDURING CUSTOMER RELATIONSHIPS TO SUPPORT GROWTH Integrated planning to improve qualities and unlock constraints Optimized channels for logistics reliability Market experience and technical capability drive full value recognition Responsiveness and proble
Slide 77: Case Study: Low Carbon Zinc Metal
CORE EXCELLENCE CASE STUDY: LOW CARBON ZINC METAL A globally differentiated high quality product Established leader Trail low-carbon Third party verified in material and Special High Grade responsible producer product stewardship (SHG) zinc1 Based on third-party data from the International Zinc Asso
Slide 78: Appendix
APPENDIX 9
Slide 79: Endnotes
ENDNOTES SLIDE 4: RED DOG PRODUCES LOW COST AND LOW CARBON ZINC 1. Wood Mackenzie, 2024. SLIDE 5: GEOGRAPHIC DIVERSITY 1. Based on tonnes delivered in 2023. 10
Slide 80: Sustainability Leadership
SUSTAINABILITY LEADERSHIP November 5, 2024 Amparo Cornejo Chief Sustainability Officer
Slide 81: Sustainability Underpins Our Value Creation Strategy
CORE EXCELLENCE SUSTAINABILITY UNDERPINS OUR VALUE CREATION STRATEGY We are committed to sustainability leadership 1 2 3 Strong Relationships Climate Change Biodiversity with Communities & Indigenous Peoples We are part of a low carbon Mining directly impacts and is Building strong relationships Bui
Slide 82: Significant Recent Progress
CORE EXCELLENCE SIGNIFICANT RECENT Key Goals Recent Progress PROGRESS Climate Change • Contracted 100% of energy requirements Target for net zero Scope 1 & at QB Operations from renewable 2 emissions by 2050 sources – on track to achieve Scope 2 net zero emissions by 2025 Ambition for net zero Scope
Slide 83: Our Climate Change Strategy
CORE EXCELLENCE OUR CLIMATE CHANGE STRATEGY Carbon Intensity Profile1 (t CO2e / t CuEq) Natural Gas and Coal Diesel Electricity Fugitive Methane Offsets & Insets Coal transaction materially Supplying critical resources decarbonizes portfolio for the energy transition 3 2.7 Renewable electricity, Dri
Slide 84: Committed to Biodiversity and Relationships with Communities and Indigenous Peoples
CORE EXCELLENCE COMMITTED TO BIODIVERSITY AND RELATIONSHIPS WITH COMMUNITIES AND INDIGENOUS PEOPLES Biodiversity Strong Relationships with Communities and Indigenous Peoples • Early adopter of nature positive, and working towards a nature • Engaging with Indigenous Peoples early and working to achie
Slide 85: Sustainability in Action: QB
CORE EXCELLENCE SUSTAINABILITY IN ACTION: QB QB desalination plant Little tern Local Indigenous community QB employee at the operation Desalinated Water and Environment and Communities and Inclusion and Renewable Power Biodiversity Indigenous Peoples Diversity • First mining operation in • Adjusted
Slide 86: Sustainability
CORE EXCELLENCE SUSTAINABILITY Our experience from QB2 will support projects elsewhere We view sustainability as a key enabler to: • Support permitting • Reduce risks • Minimize project delays • Strengthen operational resilience • Build stakeholder trust • Create growth opportunities • Generate valu
Slide 87: Appendix
APPENDIX 8
Slide 88: Our Climate Change Strategy
OUR CLIMATE CHANGE STRATEGY Potential pathway to our 2030 operations goal Greenhouse Gas Emissions Profile1 (Mt of CO2e) Natural Gas and Coal Diesel Electricity Fugitive Methane Offsets & Insets 4 33% reduction in Scope 1+2 carbon intensity 2.9 (1.9) 1.9 (1.9) 3 2 1.0 1.0 1 0 2020 LESS: 2020 ADD: LE
Slide 89: Value-Driven Growth
Presentation Phototitle perreplaced to be agenda; Photo to be updated VALUE-DRIVEN GROWTH November 5, 2024 Jonathan Price President and Chief Executive Officer
Slide 90: Advancing Copper Growth
VALUE-DRIVEN GROWTH ADVANCING COPPER GROWTH Well positioned to create value from our copper growth portfolio Preserving optionality while defining optimal value-driven pathway Leveraging lessons learned – expanding capacity and capability to execute projects simultaneously On track to become a Focus
Slide 91: Foundation of World-Class Operations and Projects
VALUE-DRIVEN GROWTH FOUNDATION OF WORLD-CLASS OPERATIONS AND PROJECTS 1 2 4 Operating Assets Brownfield Projects 3 3 1 2 Copper Operations Quebrada Blanca (QB) QB Future Expansion 1 Highland Valley 5 2 Antamina Operations Antamina Antamina Mine Life Extension 3 Quebrada Blanca 4 Carmen de Andacollo
Slide 92: Value-Accretive Growth
VALUE-DRIVEN GROWTH VALUE-ACCRETIVE GROWTH Path to increase copper production to ~800ktpa before the end of the decade Value-Accretive Near-Term Copper Projects ~8001 ktpa Quebrada Blanca Optimization & Debottlenecking Increase by (Cu-Mo-Ag | Brownfield | Chile | 60%) ~90-135kt Optimizes value from
Slide 93: Near-Term Growth Projects Have a Smaller Scope
VALUE-DRIVEN GROWTH NEAR-TERM GROWTH PROJECTS HAVE A SMALLER SCOPE Reduced scope and complexity, leading to lower capital intensity Mine Area Linear Works Workforce / Port Area QB2 – Large Scope Annual Mining Rate Water Supply Pipeline Construction Workforce 120 Mtpa 165 km ~15,000 (peak per shift)
Slide 94: Portfolio Approach to Balancing Risks and Returns
VALUE-DRIVEN GROWTH PORTFOLIO APPROACH TO BALANCING RISKS AND RETURNS Project derisking drives enhanced returns and value creation QB Optimization San Nicolás & Debottlenecking Zafranal Higher Return Relative Return Lower risk, higher returns Higher risk, higher returns Lower risk, lower returns Hig
Slide 95: Well-Funded Near-Term Projects
VALUE-DRIVEN GROWTH WELL-FUNDED NEAR-TERM PROJECTS De-risked through financial and operational partnerships Value-Accretive Near-Term Copper Projects Total Attributable Estimated Capital Teck Ownership Estimated Capital Highland Valley Mine Life Extension (Cu-Mo | Brownfield | Canada | 100%) $1.8-2.
Slide 96: Near-Term Growth Provides Best Value Opportunity
VALUE-DRIVEN GROWTH NEAR-TERM GROWTH PROVIDES BEST VALUE OPPORTUNITY Low capital-intensity, lower complexity projects generating strong returns Recent greenfield and brownfield capital intensity1 Precedent transactions imply higher price for (US$k/tpa Copper) copper production4 (US$k/tpa Copper Equi
Slide 97: On Track to Be a Top 10 Global Copper Producer
VALUE-DRIVEN GROWTH ON TRACK TO BE A TOP 10 GLOBAL COPPER PRODUCER 1 Path to increase copper production to ~800ktpa before the end of the decade 2 Near-term projects have reduced scope, complexity and low relative capital intensity 3 Balanced risk-reward profile for copper growth value creation 4 We
Slide 98: Appendix
APPENDIX
Slide 99: Endnotes
ENDNOTES SLIDE 7: WELL FUNDED NEAR-TERM PROJECTS 1. Highland Valley Mine Life Extension latest trend growth capital estimate from September 2024 but does not include further inflation or engineering assumptions. 2. US$ project capital shown converted at FX rate of 1.39 3. Zafranal growth capital est
Slide 100: Near-Term Growth Projects
Photo to be replaced NEAR-TERM GROWTH PROJECTS November 5, 2024 Dale Webb Senior Vice President, Operations, Latin America
Slide 101: Value-Accretive Near-Term Copper Growth Projects
VALUE-DRIVEN GROWTH VALUE-ACCRETIVE NEAR-TERM COPPER GROWTH PROJECTS Well-funded, low capital-intensity projects with sanctioning as early as 2025 QB Optimization Zafranal San Nicolás & Debottlenecking (Cu-Au | Greenfield | Arequipa, Peru | 80%) (Cu-Zn Ag-Au | Greenfield | Zacatecas, Mexico | 50%) (
Slide 102: Quebrada Blanca Optimization & Debottlenecking
QUEBRADA BLANCA OPTIMIZATION & DEBOTTLENECKING 3
Slide 103: QB Disciplined Growth Pathway
VALUE-DRIVEN GROWTH QB DISCIPLINED GROWTH PATHWAY Lowest capital intensity value creation opportunity QB Potential Ramp-Up (Throughput in ktpd) 1 Ramp-up Nameplate Optimization Debottlenecking Future Opportunities Optimization • Focused on operating stability at 143 ktpd • Target to drive throughput
Slide 104: QB Optimization to Increase Throughput
VALUE-DRIVEN GROWTH 1 QB OPTIMIZATION TO INCREASE THROUGHPUT Near-term throughput increase of 5-10% • Target stable production of up to ~154 ktpd by end of 2026 Ongoing Projects (2024 / 2025) − Rate already achieved for short periods of time • Asset reliability improvements and minor • No additional
Slide 105: QB Debottlenecking Further Increases Throughput
VALUE-DRIVEN GROWTH 2 QB DEBOTTLENECKING FURTHER INCREASES THROUGHPUT Additional growth to ~165-180 ktpd • Target throughput of ~165-180 ktpd in next 3 years, with minimal investment Options being Studied (2024-2027) • Equipment upgrades on conveyor rollers, • Minor permit submission in development
Slide 106: History of Successful Debottlenecking
VALUE-DRIVEN GROWTH HISTORY OF SUCCESSFUL DEBOTTLENECKING Multiple examples of sustained success in delivering incremental growth HIGHLAND VALLEY ANTAMINA RED DOG Multiple historical, incremental Design capacity increased Multiple mill improvements, focused expansions, notably Mill incrementally sev
Slide 107: QB Future Growth Opportunities
VALUE-DRIVEN GROWTH 3 QB FUTURE GROWTH OPPORTUNITIES Additional expansion and extension options for the next decade • Current, permitted plan uses <14% of defined resource (10 BT) Options being Studied (2030+) − Opportunity for expansions and life extensions − Expanded tailings location identified w
Slide 108: QB's Reserves and Resources Increased to ~10 Bt
VALUE-DRIVEN GROWTH QB’S RESERVES AND RESOURCES INCREASED TO ~10 BT Additional potential remains; district is prospective for Cu-Mo porphyry deposits QB’s Historical Reserves and Resources and Grade Mineral Reserve and Resource Statement1 Resources (Mt) Reserves (Mt) Resources (CuT) Reserves (CuT) T
Slide 109: Zafranal
ZAFRANAL View to the east-northeast along the axis of the main Zafranal mineral zone 10
Slide 110: Zafranal Project Overview
VALUE-DRIVEN GROWTH ZAFRANAL PROJECT OVERVIEW Mid-sized copper-gold asset with robust economics and permit in place Long Life Asset in Peru • 19-year mine life with mine life extension opportunities through pit expansion and district resource development Quality Investment • Attractive front-end gra
Slide 111: Zafranal Site Layout
VALUE-DRIVEN GROWTH ZAFRANAL SITE LAYOUT Good access to well-developed infrastructure at moderate altitude View to West • Mine: Copper-gold porphyry open pit mine in Zafranal and Victoria zones • Mill: Nominal 65ktpd capacity mill, concentrator and plant facilities; conveyor tunnel Water 3.5km from
Slide 112: Reserves and Resources at Zafranal
VALUE-DRIVEN GROWTH RESERVES AND RESOURCES AT ZAFRANAL Strong ore body knowledge to deliver on business plan Geological Cross-Section Mineral Reserve and Resource Statement1 Zafranal Main Zone – Central Long Section A 150m wide section, looking 357 deg (North) A’ Tonnes Grade Contained Metal 195 Lea
Slide 113: Zafranal Path to Value Realization
VALUE-DRIVEN GROWTH ZAFRANAL PATH TO VALUE REALIZATION Near-term growth option with major permit in place Sanction Requirements Recent Progress Upcoming Milestones • Advance detailed engineering to • SEIA approved in May 2023 50% completion • Detailed engineering • Develop detailed project commenced
Slide 114: Zafranal Project Highlights
VALUE-DRIVEN GROWTH ZAFRANAL PROJECT HIGHLIGHTS Advanced high-quality, copper-gold growth project • Rapid project payback expected due to the Illustrative Economic Inputs (100% basis)1 front-end high-grade profile Head Grade Production Ore Milled (First 5 Years Avg2) (First 5 Years Avg2) • Forecast
Slide 115: San Nicolás
SAN NICOLÁS 16
Slide 116: San Nicolás Project Overview
VALUE-DRIVEN GROWTH SAN NICOLÁS PROJECT OVERVIEW Unique and high-quality mid-sized base metal development asset with high average copper-zinc grades and low capital intensity Long Life Asset in Mexico • Initial 15-year mine plan with multiple targets for mine life extension • Excellent access and lo
Slide 117: San Nicolás - Compact Site Layout
VALUE-DRIVEN GROWTH SAN NICOLÁS - COMPACT SITE LAYOUT At moderate elevation in an established mining region; adjacent to infrastructure General Site Layout and Access • Mine: Conventional open-pit mine and concentrator operation; strip ratio of 6:1 (waste:ore) • Mill: Nominal 20ktpd1 ~ El 2,110 m ~
Slide 118: Reserves and Resources at San Nicolás
VALUE-DRIVEN GROWTH RESERVES AND RESOURCES AT SAN NICOLÁS Well Defined Orebody Mineral Reserve and Resource Statement1 NW Tonnes Grade Contained Metal Category Mt Cu (%) Zn (%) Cu (kt) Zn (kt) Reserves Proven 47.7 1.26 1.6 600 767 Probable 57.5 1.01 1.4 583 788 Total P&P 105.2 1.12 1.5 1,183 1,555 R
Slide 119: San Nicolás Path to Value Realization
VALUE-DRIVEN GROWTH SAN NICOLÁS PATH TO VALUE REALIZATION Sanction Requirements Recent Progress Upcoming Milestones • Robust business case and • MIA-R Permit submitted in Feasibility Study complete January 2024 and ETJ Permit submitted in June 2024 • Major permits received • Priority land acquisitio
Slide 120: Attractive Project Returns from San Nicolás
VALUE-DRIVEN GROWTH ATTRACTIVE PROJECT RETURNS FROM SAN NICOLÁS Attributable to the high-grade mineralization • Forecast first quartile life of mine C1 cash costs, Prefeasibility Study Summary (US$, 100% basis)1 allowing for strong margin generation Production − Significant by-product credits, with
Slide 121: Wrap Up
WRAP UP 22
Slide 122: Near-Term Copper Growth Projects
VALUE-DRIVEN GROWTH NEAR-TERM COPPER GROWTH PROJECTS Disciplined execution focusing on financial returns; sanction as early as H2 2025 • Near-term growth projects will compete for Illustrative Timelines1 capital to drive strong returns, following Teck’s disciplined capital allocation Engineering an
Slide 123: Appendix
APPENDIX Teck
Slide 124: Endnotes
ENDNOTES SLIDE 6: QB DEBOTTLENECKING FURTHER INCREASES THROUGHPUT 1. Indicative range of growth capital shown for QB optimization and debottlenecking, shown in nominal 2024 dollars. SLIDE 9: QB’S RESERVES AND RESOURCES INCREASED TO ~10 BT 1. Source: Teck Annual Information Form, February 22, 2024. S
Slide 125: 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 126: Executing Near-Term Projects
Photo to be replaced EXECUTING NEAR-TERM PROJECTS November 5, 2024 Karla Mills Executive Vice President and Chief Project Development Officer
Slide 127: Advancement of Project Delivery
ADVANCEMENT OF PROJECT DELIVERY 2
Slide 128: Enhanced Approach to Project Delivery
VALUE-DRIVEN GROWTH ENHANCED APPROACH TO PROJECT DELIVERY 1 2 3 4 Governance Study Execution, Control People & Assurance Development & Risk Management & Culture Clarifying accountabilities Consistently applying our early Improved management of Creating a culture of study development structure perfor
Slide 129: Governance and Assurance
VALUE-DRIVEN GROWTH GOVERNANCE AND ASSURANCE 1 Rigorous Earlier definitionprocess with of the right stage-gated project, approach and successful provides project discipline implementation Selecting & Getting to the Right Project Implementing the Right Way Regulatory Pre-Scoping Scoping Pre-Feasibili
Slide 130: Study Development
VALUE-DRIVEN GROWTH 2 STUDY DEVELOPMENT Applying our systematic approach to selecting the “right project” Delivery with the greatest value proposition • Foundation of rigorous early-stage Optimize studies Scope • Focus on staged analysis of optionality: Compare with − Understanding the asset and Ben
Slide 131: Execution, Control and Risk Management
VALUE-DRIVEN GROWTH 3 EXECUTION, CONTROL AND RISK MANAGEMENT Clear execution strategy ensuring alignment, allowing owners’ team to focus on key drivers of cost and schedule Early development of Real time data Opportunities for off-site Early identification of execution strategies analytics fabricati
Slide 132: People and Culture
VALUE-DRIVEN GROWTH 4 PEOPLE AND CULTURE Creating a culture of transparency, collaboration, and trust Culture People Key Project Experience Locations Empowerment with Direct experience in accountability multiple jurisdictions Strong sense of ownership Extensive experience in key and an owners’ minds
Slide 133: Execution of Near-Term Projects
EXECUTION OF NEAR-TERM PROJECTS 8
Slide 134: QB Optimization and Debottlenecking
VALUE-DRIVEN UNLOCKING VALUE GROWTH QB OPTIMIZATION AND DEBOTTLENECKING Disciplined and stage-gated approach to value creation 1 2 Governance & Assurance Study Development Transparency in application of Focused on identifying least-cost, governance and assurance process staged investment opportuniti
Slide 135: Highland Valley Mine Life Extension
VALUE-DRIVEN UNLOCKING VALUE GROWTH HIGHLAND VALLEY MINE LIFE EXTENSION Integrated execution strategy with key performance indices 1 2 Governance & Assurance Study Development Transparency in application of Strong focus on community governance and assurance process engagement Structured assurance pr
Slide 136: Zafranal
VALUE-DRIVEN UNLOCKING VALUE GROWTH ZAFRANAL Mobilized an existing team aligned with Teck’s culture to lead project 1 2 Governance & Assurance Study Development Transparency in application of Advancing engineering design to 50% governance and assurance process prior to project sanction Structured as
Slide 137: San Nicolás
VALUE-DRIVEN UNLOCKING VALUE GROWTH SAN NICOLÁS Leveraging complementary capabilities with our partner 1 2 Governance & Assurance Study Development Creation of joint venture partnership Completion of trade-off and value leveraging successful project improvement studies and benchmarking experience in
Slide 138: Enhanced Approach to Project Delivery
VALUE-DRIVEN GROWTH ENHANCED APPROACH TO PROJECT DELIVERY Commitment to reliability, predictability and transparency 1 2 3 4 Governance Study Execution, Control People & Assurance Development & Risk Management & Culture Well positioned for execution of near-term projects and value delivery 13
Slide 139: Resilience
RESILIENCE November 5, 2024 Crystal Prystai EVP and Chief Financial Officer
Slide 140: 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 141: Our Strong Financial Position Underpins Resilience
OUR STRONG FINANCIAL POSITION UNDERPINS RESILIENCE 1 One of the strongest balance sheets in the sector 2 Strong EBITDA* and cash flow generation 3 Disciplined capital allocation 4 Significant shareholder returns and value-accretive growth * EBITDA is a non-GAAP measure. See “Non-GAAP Financial Measu
Slide 142: One of the Strongest Balance Sheets in the Sector
RESILIENCE ONE OF THE STRONGEST BALANCE SHEETS IN THE SECTOR 1 Significant debt reductions and net cash position Net Cash* Position Debt Reduction Debt Repayments (US$M) As at September 30, 2024 YTD as at September 30, 2024 $1.8B $2.3B 294/year 177 253 188 195 147 147 167 Term Notes Outstanding Targ
Slide 143: Strong EBITDA and Cash Flow Generation Potential
RESILIENCE STRONG EBITDA* AND CASH FLOW GENERATION POTENTIAL 2 Value creation through the commodity cycle Illustrative 2026 EBITDA* from Operations1 (C$B) Illustrative 2026 Operating Cash Flow1 (C$B) Copper ex-QB QB Zinc Copper ex-QB QB Zinc +10% +10% Cu - $5.00/lb 3.3 2.6 0.9 6.8 Cu - $5.00/lb 2.2
Slide 144: Focus on Cost Discipline and Margin Optimization
RESILIENCE FOCUS ON COST DISCIPLINE AND MARGIN OPTIMIZATION 2 Opportunities for margin and cost structure optimization Operations Cost discipline at operations, process to optimize cost base and asset productivity to reduce unit costs Continued margin improvement through commercial excellence strate
Slide 145: Capital Allocation Framework
VALUE-DRIVEN GROWTH CAPITAL ALLOCATION FRAMEWORK RESILIENCE 3 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 Sha
Slide 146: Strong Track Record of Shareholder Returns
RESILIENCE STRONG TRACK RECORD OF SHAREHOLDER RETURNS 4 Significant authorized returns, with $2.3B remaining, improving per-share value Historical Shareholder Returns ($M) Additional Shareholder Returns $5.3B returned to shareholders since 20191 $2.3B remaining from authorized share buyback program
Slide 147: Near-Term Growth Drives Value Creation
VALUE DRIVEN GROWTH NEAR-TERM GROWTH DRIVES VALUE CREATION 4 Well funded growth projects and strong earnings potential Well funded, low stay-in-business capex required Significant EBITDA* growth expected before the end of the decade Illustrative EBITDA* from growth projects($B)2 Annual Sustaining Ca
Slide 148: Illustrative Accretive Growth on Per-Share Metrics
VALUE-DRIVEN GROWTH ILLUSTRATIVE ACCRETIVE GROWTH ON PER-SHARE METRICS Compound impact of copper growth and authorized share buybacks Stabilized QB and Share Buyback Program +40-45% QB Ramp Up +45-55% 2023 2024 2026 Long-Term Copper Production (kt Cu) 296 420-455 550-620 800+ Shares Outstanding1 (M
Slide 149: Our Strong Financial Position Underpins Resilience
RESILIENCE OUR STRONG FINANCIAL POSITION UNDERPINS RESILIENCE Net Cash* Position As at September 30, 2024 1 One of the strongest balance sheets in the sector $1.8B Shareholder Returns 2 Strong EBITDA* and cash flow generation 2019-2024 YTD $5.3B 3 Disciplined capital allocation Remaining Authorized
Slide 150: Appendix
APPENDIX a
Slide 151: Endnotes
ENDNOTES SLIDE 4: STRONG EBITDA AND CASH FLOW GENERATION POTENTIAL 1. Illustrative 2026 EBITDA generated from our operations and operating cash flow potential calculated using midpoint of Teck’s current 2026 production guidance and consensus copper, QB, and zinc net cash unit costs from 17 analyst m
Slide 152: 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 153: Strategy Day
Photo to be replaced STRATEGY DAY November 5, 2024