Teck Resources Limited Class A · TSX:TECK.A
Teck Resources Limited Class A — Global Metals and Mining Conference (July 2023)
28 slides from Teck Resources Limited Class A's conference presentation, Jul 28, 2023
Slide 1: Investor Presentation
Investor Presentation July 28, 2023 Global Metals and Mining Conference 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: Portfolio of World-Class Assets
Portfolio of World-Class Assets 1 Our Purpose Copper Zinc Steelmaking Coal Top 10 copper producer Largest net zinc miner High-quality, low-emission in the Americas globally hard coking coal and second largest seaborne To provide essential steelmaking coal supplier 2 resources the world is Copper cou
Slide 4: Being a Responsible Miner Creates Value
Being a Responsible Miner Creates Value Critical Sustainability Goals Recognized ESG Performance 2nd in the 2022 S&P Global Prime Rating for ESG Corporate Sustainability performance; top decile in Assessment metals and mining the mining and integrated industry as of March 17, 2023 production industr
Slide 5: Strong Fundamentals and Outlook for our Commodities
Strong Fundamentals and Outlook for our Commodities Decarbonization driving significant global demand growth1 Copper Zinc Seaborne Steelmaking Coal Wind Power Case Study Driven by green technologies, Driven by galvanizing to A critical raw material to produce electrification and energy efficiency pr
Slide 6: QB2 Doubles Copper Production at Full Capacity
QB2 Doubles Copper Production at Full Capacity Completed first shipment and sale of copper concentrate Flagship copper project in Northern Chile Best-in-class copper growth potential • Large, long-life deposit capable of supporting multiple expansions QB2 drives Teck’s consolidated copper production
Slide 7: Pursuit of Value
Pursuit of Value Focused on value creation for shareholders Driving organic growth through the development of our pipeline of copper growth projects Engaging with multiple counterparties on proposals regarding the steelmaking coal business Any transaction must reflect the inherent value of the steel
Slide 8: Unrivalled Copper Growth Opportunities
Unrivalled Copper Growth Opportunities Double copper equivalent production by end of 2023, path to double again by 2030 Potential Annual CuEq Production Growth (kt; reporting basis) Unrivaled suite of options diversified by geography, Current Producing Near-Term Development Pipeline Investing Today
Slide 9: Robust Portfolio of Near-Term Development Projects
Robust Portfolio of Near-Term Development Projects San Nicolás QBME Zafranal NewRange Galore Creek High grade asset Continued production Peru’s next US producer of Canada’s with industry growth from copper mine critical battery largest copper leading returns massive resource metal concentrates devel
Slide 10: Significant Near-Term Copper Growth Optionality
Significant Near-Term Copper Growth Optionality Potential Timelines for Near-Term Copper Growth Projects Maximizing optionality and value Engineering and Permitting Target Sanction Window Construction Production • Accelerated project development 2023 2024 2025 2026 2027 2028 2029 across portfolio th
Slide 11: World-Class Steelmaking Coal Assets
World-Class Steelmaking Coal Assets Durable demand outlook - supports steel production & transition to low-carbon economy #2 Global Exporter of Seaborne Steelmaking Coal 30+ Year Reserve Life Integrated Operations 2023 Market Share1 As at December 31, 2022 (Mt)3 British Columbia, Canada Elk Valley 1
Slide 12: High-Margin Steelmaking Coal Producer
High-Margin Steelmaking Coal Producer Demonstrated through-the-cycle cash flow generation Top Quartile Delivered Operating Margins Track Record of Profitability WoodMac Seaborne Steelmaking Coal Margin Curve (2022, US$/t)1 Teck Teck $199 $199 $189 $169 $2.7B 52% 10-year average 10-year average adjus
Slide 13: Capital Allocation Framework
Capital Allocation Framework Distributes 30-100% of available cash flow to shareholders Cash Flow Sustaining Base Supplemental from Operations Capital Dividend Shareholder Distributions including stripping $0.50 per share minimum 30% available cash flow RETURNS after interest and finance charges, le
Slide 14: Strong Financial Position
Strong Financial Position Strong Balance Sheet Debt Maturity Ladder2 (US$M) Liquidity1 Net Debt to Adjusted EBITDA2 Credit Ratings $7.0B 0.8x Investment grade 797 Disciplined Capital Allocation • Returned $1.0B in dividends and $2.5B in share buybacks in the past five years3 473 395 396 • Significan
Slide 15: Responsible Value Creation
Responsible Value Creation Capitalizing on strong demand in the transition to a low-carbon economy Unlock the value of Focus on industry leading execution copper growth Long-term sustainable Balance growth Sustainability shareholder and cash returns to shareholders leadership value Global Metals and
Slide 16: Appendix
Appendix Global Metals and Mining Conference
Slide 17: Key Commodity Price Charts
Key Commodity Price Charts Copper Zinc Steelmaking Coal (Seaborne HCC) LME Cash Price USD/t (RHS) LME Cash Price USD/t (RHS) HCC FOB Australia USD/t 12,000 SHFE Stocks 1,600 5,000 SHFE Stocks 1,200 700 HCC CFR China USD/t China Bonded China Bonded 10,000 LME/Comex LME 1,000 600 4,000 1,200 500 8,000
Slide 18: Production Guidance
Production Guidance Copper Zinc Previous Current Previous Current Previous Current Previous Current 2022 2023 2023 2024-2026 2024-2026 2022 2023 2023 2024-2026 2024-2026 Actual Guidance Guidance1 Guidance Guidance1 Actual Guidance Guidance1 Guidance Guidance1 Copper2,3,4 Zinc in concentrate2,3,5 Hig
Slide 19: Unit Cost and Sales Guidance
Unit Cost and Sales Guidance Unit Costs Copper2 Zinc3 Steelmaking Coal Previous Current Previous Current Previous Current 2022 2023 2023 2022 2023 2023 2022 2023 2023 (US$/lb) Actual Guidance Guidance1 (US$/lb) Actual Guidance Guidance1 (C$/tonne) Actual Guidance Guidance1 Total cash unit costs 2.02
Slide 20: Capital Expenditures Guidance
Capital Expenditures Guidance Sustaining and Growth Capital Capitalized Stripping Previous Current Current 2022 2023 2023 2022 Previous 2023 Actual Guidance Guidance1 Actual 2023 Guidance Guidance1 Sustaining Capitalized Stripping Copper2 $ 297 $ 510 $ 510 Copper $ 336 $ 295 $ 295 Zinc 244 150 150 Z
Slide 21: Water Treatment Guidance
Water Treatment Guidance Steelmaking Coal Capital Expenditures Related to Water Treatment1 Previous Current Previous Current Previous Current Long-Term Long-Term 2022 2023 2023 2023-2024 2023-2024 Guidance Guidance3 Actual Guidance Guidance2 Guidance Guidance2 (C$/tonne) (C$/tonne) Sustaining capita
Slide 22: Sensitivities
Sensitivities Sensitivity of our Annualized Profit Attributable to Shareholders and EBITDA1 Estimated Effect on Profit Attributable Estimated Effect 2023 Mid-Range to Shareholders3 on EBITDA3 Production Estimates2 Changes ($ in millions) ($ in millions) US$ exchange C$0.01 $ 60 $ 98 Copper (kt) 352.
Slide 23: For Further Information
For Further Information Links available via images below Visit us at Teck.com/Investors Contact Investor Relations investors@teck.com 1.877.759.6226 or 604.699.4257 Global Metals and Mining Conference 23
Slide 24: Endnotes
Endnotes Slide 14: Strong Financial Position Slide 3: Portfolio of World-Class Assets 1. As at July 26, 2023. 1. Five years from January 1, 2018 to December 31, 2022. 2. As at June 30, 2023. Excludes short-term loans at Carmen de Andacollo and loans at Antamina. 2. Fort Hills is excluded in 2022 and
Slide 25: Endnotes
Endnotes Slide 22: Sensitivities 1. As at July 26, 2023. The sensitivity of our annualized profit(loss) attributable to shareholders and EBITDA to changes in the Canadian/U.S. dollar exchange rate and commodity prices, before pricing adjustments, based on our current balance sheet, our 2023 mid-rang
Slide 26: Non-GAAP Financial Measures and Ratios
Non-GAAP Financial Measures and Ratios Global Metals and Mining Conference
Slide 27: Non-GAAP Financial Measures and Ratios
Non-GAAP Financial Measures and Ratios Our financial results are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. This presentation includes reference to certain non-GAAP financial measures and non-GAAP ratios,
Slide 28: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables Reconciliation between Segmented Profit, Segmented EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin1 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Profit (loss) before taxes 922 142 (1,882) 1,266 3,077 2,951 1,574 41 2,847 5,952 Net finance expense 48 40 26 21 5
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