Teck Resources Limited Class A · TSX:TECK.A
Teck Resources Limited Class A — Global Metals and Mining Conference 2024
29 slides from Teck Resources Limited Class A's conference presentation, May 28, 2024
Slide 1: Investor Presentation
Investor Presentation May 28, 2024 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: Value Creation Strategy
Value Creation Strategy Capitalizing on strong demand in the transition to a low-carbon economy Maximize long-term sustainable shareholder value Focus on Unlock the value of Balance growth Sustainability excellence in industry leading and cash returns leadership operations and copper growth to share
Slide 4: Our Priorities
Our Priorities Complete sale of steelmaking coal - minority stake sale to Nippon Steel and POSCO complete; regulatory approvals underway on majority sale to Glencore Drive safe operational performance across the portfolio, ensuring we deliver on our market commitments Consistent performance of QB at
Slide 5: Transforming to a Pure-Play Base Metals Business
Transforming to a Pure-Play Base Metals Business Portfolio transformed towards 100% base metals QB drives significant EBITDA and cash flow growth Consensus Operating EBITDA Split*,1 (%) Illustrative Annual EBITDA* (C$B) 2023A 2025 +$0.5 Potential to generate >$5B US$5.00/lb Cu of annual base metals
Slide 6: Near-Term Development Options
Near-Term Development Options A balanced portfolio of greenfield and brownfield projects in well understood jurisdictions Highland Valley Mine Life Extension (Cu-Mo | Brownfield | British Columbia) Extending life of mine of Canada’s largest base metals mine Mine life extension of a highly productive
Slide 7: Disciplined Capital Allocation Framework
Disciplined Capital Allocation Framework Commitment to return 30-100% of available cash flow to shareholders* Balancing growth with cash returns to shareholders while maintaining a strong balance sheet Sustaining Base Supplemental Cash Flow Capital Dividend Shareholder Distributions including stripp
Slide 8: Considerations for Use of Transaction Proceeds
Considerations for Use of Transaction Proceeds Ensures Teck is well-positioned to unlock the full potential of our base metals business Maintain investment grade credit metrics through the cycle – targeting net debt to adjusted EBITDA* of 1.0x net debt to Reduce EBITDA* gross debt of to 1.0x maintai
Slide 9: Value Creation Strategy Underpinned by Sustainability
Value Creation Strategy Underpinned by Sustainability Key Sustainability Achievements Key Goals and Recent Progress • Industry-leading sustainability assurance, with all Teck-operated base Climate Change metal operations awarded the relevant Mark verifications Target for net zero Scope 1 & 2 emissio
Slide 10: Long-term sustainable shareholder value
Value Creation Strategy Capitalizing on strong demand in the transition to a low-carbon economy Focus on Unlock the value of excellence in industry leading operations and copper growth projects Long-term sustainable Balance growth Sustainability shareholder and cash returns to shareholders leadershi
Slide 11: Appendix
Appendix Global Metals and Mining Conference
Slide 12: A Leading Canadian Resource Company
A Leading Canadian Resource Company Responsibly providing metals essential for global development and the energy transition Our Purpose Copper Zinc 1 To provide essential Top 10 copper producer, Largest net zinc miner resources the world operating in the Americas globally is counting on to make life
Slide 13: Full Sale of the Steelmaking Coal Business
Full Sale of the Steelmaking Coal Business • Announced the sale of steelmaking coal assets (EVR) with a majority stake to Glencore, and minority stakes to Nippon Steel Corporation (NSC) and POSCO • NSC and POSCO transactions closed on January 3, 2024 − NSC acquired 20% interest in EVR in exchange fo
Slide 14: Strong Copper Market Fundamentals
Strong Copper Market Fundamentals In the short term, concentrate tightness is moving to metals Annual Production Losses1 (Mt) • 2023 global mine production below market expectations by >2.0 Mt Actual Production Annualized Loss Lost Production • Net mine growth in last 5 years ~1.2 Mt vs. guidance of
Slide 15: Zinc Market Turns on Mine Closures
Zinc Market Turns on Mine Closures Mine closures pushed market into concentrate tightness Drivers of 2024 Concentrate Deficit1 (kt) • Low zinc prices forced mine closures last year 14,000 Mine supply 13,662 weakened 8% • Raw material shortages and weak economics impacting smelter 13,500 250 ~5% in t
Slide 16: Completed All Major Construction at QB
Completed All Major Construction at QB Demobilization substantially advanced and ramp-up continuing Outlook and Guidance Q1 2024 Performance Complete port construction by end of Q1 2024 Successfully loaded our first vessel of QB concentrate Achieved using the shiploader Ramp-up molybdenum plant in Q
Slide 17: Disciplined Approach to Copper Growth
Disciplined Approach to Copper Growth Adapting our approach to project development • Undertaking a comprehensive review of the QB2 project delivery, utilizing third-party expertise • Building capability and capacity through investment in our people and processes • Next project sanctioning expected i
Slide 18: Unrivalled Copper Growth Opportunities
Unrivalled Copper Growth Opportunities Multiple pathways to value creation Potential Annual CuEq Production Growth1 (kt; reporting basis; first 5 years average annual production by asset) Current Operating Assets Near-Term Development Options Investing Today For Longer-Term Growth Suite of options d
Slide 19: Strong Balance Sheet and Shareholder Returns
Strong Balance Sheet and Shareholder Returns Strong balance sheet Balancing growth with shareholder returns Liquidity1 Cash Position1 Share Buybacks $7.1B $1.6B • Board authorized up to $500 million share buyback in February 2024, of which $80 million was completed in Q1 2024 Dividends • Paid quarte
Slide 20: Copper Guidance
Copper Guidance Guidance includes Quebrada Blanca Production1,2 (kt) Net Cash Unit Costs*,1,3 (US$/lb) Copper in Concentrate 550-620 550-620 530-600 1.85-2.25 465-540 50-60 50-60 45-55 1.87 38-45 80-90 90-100 85-95 1.56 85-95 297 140-160 130-150 120-140 Carmen de Andacollo 112-125 40 Antamina (22.5%
Slide 21: Zinc Guidance
Zinc Guidance Production1,2 (kt) Red Dog Zinc in Concentrate Sales1 (kt) Net Cash Unit Costs*,1,3 (US$/lb) Zinc in Concentrate 644 565-630 555-615 104 Antamina (22.5%) 45-60 0.55-0.65 95-105 465-525 0.55 55-65 400-445 35-45 0.44 85 Red Dog 540 520-570 460-510 410-460 365-400 50-60 2023 2024E 2025E 2
Slide 22: Steelmaking Coal Guidance
Steelmaking Coal Guidance Sales and Production1 (Mt) Capital Expenditures1 (C$M) Sales Production 1,452 ~1,350-1,750 1,167 15 10.0 24.0-26.0 24.0-26.0 24.0-26.0 24.0-26.0 550 9.0 23.7 30 -750 8.0 7.0 5.9 6.0-6.4 649 6.0 5.0 Growth 617 800 4.0 Capitalized Stripping -1,000 3.0 778 2.0 520 1.0 Sustaini
Slide 23: Cost of Sales 2023
Cost of Sales 2023 Copper Steelmaking Coal Cost of Sales (C$) Operating Costs Cost of Sales (C$) Operating Costs D&A Labour 25% Labour 26% 20% Contractors & Consultants 17% Contractors & Consultants 17% D&A Operating Royalties Operating Supplies & Parts 15% 24% Costs Operating Supplies & Parts 14% 1
Slide 24: Sensitivities
Sensitivities Estimated Effect of Changes on our Annualized Profitability1 ($M) Estimated Effect on Profit Attributable Estimated Effect 2024 Mid-Range to Shareholders3 on EBITDA*, 3 Production Estimates2 Changes ($ in millions) ($ in millions) US$ exchange C$0.01 $ 54 $ 92 Copper (kt) 502.5 US$0.01
Slide 25: Endnotes
Endnotes Slide 5: Transforming to a Pure-Play Base Metals Business Slide 20: Copper Guidance 1. Operating EBITDA for 2025 based on consensus estimates from 15 analyst models taken in April 2024. 1. As at April 24, 2024. See Teck’s Q1 2024 press release for further details. 2. QB illustrative EBITDA
Slide 26: Endnotes
Endnotes Slide 24: Sensitivities 1. As at April 24, 2024. 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 2024 mid-ran
Slide 27: Non-GAAP Financial Measures and Ratios
Non-GAAP Financial Measures and Ratios Global Metals and Mining Conference
Slide 28: 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 29: For further information, please contact our investor relations team
For further information, please contact our investor relations team or visit Teck.com investors@teck.com 1.877.759.6226 or 604.699.4257 Global Metals and Mining Conference
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