Teck Resources Limited Class A · TSX:TECK.A
Teck Resources Limited Class A — Non-Deal Roadshow (November 2019)
154 slides from Teck Resources Limited Class A's roadshow presentation, November 2019
Slide 1: Investor Meetings November 2019
Investor Meetings November 2019
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements Both these slides and the accompanying oral presentations 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 Securit
Slide 3: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements Statements concerning future production costs or volumes are based on numerous assumptions of management regarding operating matters and on assumptions that demand for products develops as anticipated, that customers and other counterparties perform their
Slide 4: A Transformational Time for Teck
A Transformational Time for Teck Milestones Solid Future Value Achieved Foundation Catalysts • QB2 permit received, • Quality operating assets • Positioned for cash returns sanctioning announced, in stable jurisdictions to shareholders partnership closed and • Strong financial position • QB2/QB3 pro
Slide 5: QB2 Value Creation
QB2 Value Creation Delivers on Copper Growth Strategy Low Strip Ratio2 • Rebalances Teck's portfolio over time to make QB2 (0.7:1) the contribution from copper similar to steelmaking coal • World class, low cost copper opportunity in an excellent geopolitical jurisdiction Antamina (2.9:1)3 • First p
Slide 6: Accelerating Our RACE21 Innovation-Driven Efficiency Program
Accelerating Our RACE21TM Innovation-Driven Efficiency Program RACE21TM • Looks across the full value chain, from mine to port • Leverages existing, proven technology to improve productivity and lower costs • Focused on delivering significant value by 2021 - 2019: Expansion of programs such as predi
Slide 7: Teck's Performance on Top ESG Ratings
Teck’s Performance on Top ESG Ratings ESG Evaluation Teck’s Performance • Named to 2019 Global 100 Most Sustainable Corporations list by Corporate Knights • Ranked 37th globally; only mining company listed • Top-ranked mining company on both the World and North American Indices • “A” rating since 20
Slide 8: Low Cost, Low Carbon Producer
Low Cost, Low Carbon Producer • Among world’s lowest GHG GHG Emissions Intensity Ranges Among intensity for steelmaking coal and ICMM Members2 (kgCO2e per tonne of product) copper production Copper Coal • Fort Hills – one of the lowest carbon intensities among North American oil sands producers on a
Slide 9: Responsible Tailings Management
Responsible Tailings Management Teck has a comprehensive systems and procedures in place Further Tailings Governance Steps based on six pillars: 1. Special review by external experts 1. Surveillance 4. Internal Review Technology 5. Detailed Third-Party - Confirmed no immediate or emerging 2. Staff I
Slide 10: Capital Allocation Framework
Capital Allocation Framework SUSTAINING SUPPLEMENTAL BASE CAPEX SHAREHOLDER DIVIDEND (including stripping) DISTRIBUTIONS The balance of remaining cash is available to finance further enhancement or growth opportunities. Plus at Least 30% If there is no immediate need Available Cash Flow1 for this ca
Slide 11: Strong Financial Position
Strong Financial Position • ~C$6.8 billion of liquidity1; including $1.6 billion in Note Maturity Profile4 (C$M) cash, $1.0 billion in Chile for QB2 development Notes outstanding reduced from • US$4.0 billion committed revolving credit facility; US$7.2 billion to US$3.2 billion 1,200 maturity extend
Slide 12: Cost Reduction Program
Cost Reduction Program Implementing a company-wide cost reduction program in response to current global economic uncertainty • We are targeting total reductions of ~$500 million from previously planned spending through the end of 2020 - $170 million for the balance of 2019: $120 million in capex and
Slide 13: Supply Fundamentals Offsetting Weaker Demand In Copper and Zinc
Supply Fundamentals Offsetting Weaker Demand In Copper and Zinc Copper Zinc • Cathode market balanced for next 2 years • Global concentrate market in surplus; • Global macro concerns impacting demand constrained smelter production lifting assumptions and prices • Smelter bottleneck constrained refin
Slide 14: Steelmaking Coal Market
Steelmaking Coal Market • Raw materials pricing under pressure due to Steelmaking Coal Prices1 (US$/t) declining steel margins The steelmaking coal price has averaged • Growing demand, especially in India, Southeast US$181 per tonne since January 1, 2008. Asia and China 300 • Capital markets are rat
Slide 15: A Transformational Time for Teck
A Transformational Time for Teck Future Value Catalysts Positioned For Transformation Growth Through Cash Returns Through Innovation: QB2/QB3 Execution to Shareholders RACE21TM Compelling Value 15
Slide 16: Appendix
Appendix Teck
Slide 17: Notes
Notes Slide 5: QB2 Value Creation 1. As at January 1, 2019. Assumes optimized funding structure. Does not include contingent consideration. Assumes US$10.00/lb molybdenum and US$18.00/oz silver. 2. 1 truck = a strip ratio of 0.1. 3. Source: Wood Mackenzie over 2021-2040. Slide 6: Accelerating Our RA
Slide 18: Quebrada Blanca
Quebrada Blanca Photo: SAG Mill Number 1 Concrete and Rebar Placement
Slide 19: QB2 Project Disclosure
QB2 Project Disclosure All economic analysis with respect to the QB2 project based on a development case which includes inferred resources within the life of mine plan, referred to as the Sanction Case, which is the case on which Teck is basing its development decision for the QB2 project. Inferred
Slide 20: QB2 Project
QB2 Project Executing on a world class development asset Highlights Location Vast, long life deposit in favourable jurisdiction Chile Peru Very low strip ratio Bolivia Arica y Arica Parinacota Region Low all-in sustaining costs (AISC)1 Cerro Tarapacá Colorado Collahuasi Region Will be a top
Slide 21: QB2 Rebalances Teck's Portfolio
QB2 Rebalances Teck’s Portfolio Delivers on copper growth strategy • Rebalances Teck's portfolio over time to make the Teck's Annual Copper Production (kt Cu) contribution from copper similar to steelmaking coal 584 • On a consolidated basis copper production is 116 doubled • On an attributable basi
Slide 22: QB2 is a World Class Copper Opportunity
QB2 is a World Class Copper Opportunity Project Metrics1 US$2.4-$4.2B 14%-18% After-Tax NPV8%2,3 Unlevered After-Tax IRR2,3 (100%) US$1.1-$1.4B 316 kt First 5 Full Years Annual EBITDA2 First 5 Full Years Annual CuEq Production4 US$1.28/lb US$1.38/lb First 5 Full Years C1 Cash Cost (net of by-product
Slide 23: Increasing Teck's Returns on QB2
Increasing Teck's Returns on QB2 Enhancing IRR Reducing Teck's Equity Contributions • Transaction with Sumitomo and US$2.5 billion • Transaction proceeds and project financing project financing significantly enhances Teck's reduce Teck's equity contributions to ~US$693 IRR million3 with no contribut
Slide 24: QB2's Competitive Cost Position
QB2’s Competitive Cost Position Competitive Operating Cost & Capital Intensity Low Cash Cost Position • Given the exceptionally low strip ratio, consistent grade C1 Cash Cost3 & AISC4 Curve1 (US$/lb, 2023E) profile, compact site layout, and high level of automation, QB2 is expected to have attractiv
Slide 25: Vast, Long Life Deposit at QB
Vast, Long Life Deposit at QB QB2 Uses Less than 25% of R&R Extension Potential • Resource exclusive of Reserve increased 40% since Reserve and Resource Tonnage (Mt) 2017 • Initial 28 year mine life processes <25% of the currently +40% defined Reserve and Resource Tonnage • Deposit is capable of sup
Slide 26: QB3 – Long-Term Growth
QB3 – Long-Term Growth Expansion potential to realize full potential of the orebody • QB2 utilizes less than 25% of resource Copper Mineralization from 2018 Drilling1 • QB3 evaluating options to exploit the full value of the • 2018 drilling returned long intervals of +0.5% Cu, with resource through
Slide 27: Clear Path to Production at QB2
Clear Path to Production at QB2 Construction Approach Operational Readiness • Key project elements are segregated by area and can be managed more • Early focus on operational readiness and commissioning to ensure a efficiently reducing risk: seamless transition to operations – Open pit mine (120 Mtp
Slide 28: Execution Readiness at QB2
Execution Readiness at QB2 Experienced project team including Bechtel, a leading EPCM company Teck Owner's Team Name Title Years of Experience Major Project Experience Karl Hroza Project Director 25+ Sturgeon Refinery, El Morro, Koniambo, Fort Hills, Ravensthorpe Sergio Vives Director, Environment a
Slide 29: QB2 Project Economics Comparison
QB2 Project Economics Comparison Changes Since Feasibility Study1 Sensitivity Analysis1 2016 FS Reserve Sanction RESERVE CASE8 US$3.00 US$3.25 US$3.50 (Reserves) Case 7 Case 8 Mine Life years 25 28 28 Annual EBITDA11 (US$B) Throughput ktpd 140 143 143 First 5 Full Years $1.0 $1.2 $1.3 General LOM Mi
Slide 30: QB2 Reserves and Resources Comparison
QB2 Reserves and Resources Comparison Reserve Case (as at Nov. 30, 2018)1,2 Sanction Case (as at Nov. 30, 2018)2,4 Cu Mo Silver Cu Mo Silver RESERVES Mt Grade % Grade % Grade RESERVES Mt Grade % Grade % Grade ppm ppm Proven 476 0.51 0.018 1.40 Proven 409 0.54 0.019 1.47 Probable 924 0.47 0.019 1.25
Slide 31: ENAMI Interest in QB
ENAMI Interest in QB Organizational Chart • The government of Chile owns a 10% non-funding interest in Compañía Minera Teck Quebrada Blanca Teck SMM SC S.A. (CMTQB) through its state-run minerals company, Empresa Nacional de Minería (ENAMI) 100% 83.33% 16.67% • ENAMI has been a partner at QB since 1
Slide 32: Quebrada Blanca Accounting Treatment
Quebrada Blanca Accounting Treatment Balance Sheet Cash Flow • 100% of project spending included in property, plant and • 100% of project spending included in capital equipment expenditures • Debt includes 100% of project financing • In 2019, Sumitomo1 contribution will recorded within • Total share
Slide 33: Notes - Appendix: Quebrada Blanca
Notes - Appendix: Quebrada Blanca Slide 20: QB2 Project 1. All-in sustaining costs (AISC) are net cash unit costs (also known as C1 cash costs) plus sustaining capital expenditures. Net cash unit costs are calculated after cash margin by-product credits assuming US$10.00/lb molybdenum and US$18.00/o
Slide 34: Notes - Appendix: Quebrada Blanca
Notes - Appendix: Quebrada Blanca Slide 24: QB2’s Competitive Cost Position 1. Source: Wood Mackenzie. 2. Based on first five full years of copper equivalent production. Copper equivalent production calculated assuming US$3.00/lb copper, US$10.00/lb molybdenum and US$18.00/oz silver without adjustin
Slide 35: Strategy and Overview
Strategy and Overview Teck
Slide 36: Consistent Long-Term Strategy
Consistent Long-Term Strategy • Diversification • Long life assets • Low cost • Appropriate scale • Low risk jurisdictions 36
Slide 37: Attractive Portfolio of Long-Life Assets
Attractive Portfolio of Long-Life Assets Low risk jurisdictions 37
Slide 38: Global Customer Base
Global Customer Base Revenue contribution from diverse markets (2018) 1 38
Slide 39: Diverse Pipeline of Growth Options
Diverse Pipeline of Growth Options In Construction Medium-Term Future Options Growth Options QB2 QB3 Galore Creek Zafranal Schaft Creek Copper Strong platform HVC Brownfield Mesaba with substantial growth options NuevaUnión San Nicolás (Cu-Zn) Zinc Red Dog VIP2 Project Antamina Brownfield Teena Prem
Slide 40: Disciplined Approach to M&A
Disciplined Approach to M&A $1,500 Recent Transaction History QB2 Divestment Waneta Dam, (30%)7 $1,200M6 $1,072M Net Proceeds (Cost) (C$M) Antamina $1,000 Silver Stream2 $795M CdA Gold $500 Stream1, Osisko Sandstorm Royalty Royalty $206M Project Corridor Package3 /Nueva Union, Package, Wintering Hil
Slide 41: Production Guidance
Production Guidance 3-YEAR GUIDANCE1 2018 RESULTS 2019 GUIDANCE1 (2020-2022) Steelmaking Coal 26.2 Mt 25.5-26.0 Mt 26.5-27.5 Mt Copper2,3,4,6 Highland Valley Concentrate 100.8 kt 115-120 kt 135-155 kt Antamina Concentrate 100.4 kt 95-100 kt 90-95 kt Carmen de Andecollo Concentrate + Cathode 67.2 kt
Slide 42: Sales and Unit Cost Guidance
Sales and Unit Cost Guidance Sales Q3 2019 RESULTS Q4 2019 GUIDANCE1 Steelmaking Coal 6.1 Mt 6.2-6.4 Mt Zinc - Red Dog Zinc in Concentrate 171 kt 160-165 kt Unit Costs 2018 RESULTS 2019 GUIDANCE1 Steelmaking Coal Adjusted site cost of sales2 C$62/t C$62-65/t Transportation costs2 C$37/t C$37-39/t Un
Slide 43: Capital Expenditures Guidance
Capital Expenditures Guidance Sustaining, Major Enhancement, New Mine Development Quebrada Blanca 2 (TECK’S SHARE 2019 (TECK’S SHARE 2019 IN CAD$ MILLIONS) 2018 GUIDANCE1 IN CAD$ MILLIONS) 2018 GUIDANCE1 Sustaining QB2 Capital Expenditures $ 414 $ 1,450 Steelmaking coal2 $ 232 $ 455 Total capex, bef
Slide 44: Commodity Price Leverage
Commodity Price Leverage1 MID-POINT OF 2019 PRODUCTION ESTIMATED EFFECT ON ESTIMATED EFFECT ON GUIDANCE2 CHANGE ANNUALIZED PROFIT3 ANNUALIZED EBITDA3 $C/$US C$0.01 C$38M /$0.01∆ C$60M /$0.01∆ Coal 25.75 Mt US$1/tonne C$19M /$1∆ C$30M /$1∆ Copper 300 kt US$0.01/lb C$5M /$0.01∆ C$8M /$0.01∆ Zinc4 915
Slide 45: Strong Track Record of Returning Cash to Shareholders
Strong Track Record of Returning Cash to Shareholders ~$6.3 billion returned from January 1, 2003 to September 30, 2019 Dividends • $4.3 billion since 2003, representing ~27% of free cash flow1 Share Buybacks • $2.0 billion since 2003, representing ~12% of free cash flow1 45
Slide 46: Tax-Efficient Earnings in Canada
Tax-Efficient Earnings in Canada ~C$3.8 billion in available tax pools1 • Includes: ‒ $2.9 billion in net operating loss carryforwards ‒ $0.7 billion in Canadian Development Expenses (30% declining balance p.a.) ‒ $0.2 billion in allowable capital loss carryforwards • Applies to cash income taxes in
Slide 47: Share Structure & Principal Shareholders
Share Structure & Principal Shareholders Teck Resources Limited1 VOTING SHARES HELD PERCENT RIGHTS Class A Shareholdings Temagami Mining Company Limited 4,300,000 55.4% 32.1% SMM Resources Inc (Sumitomo) 1,469,000 18.9% 11.0% Other 1,999,304 25.7% 14.9% 7,768,304 100.0% 58.0% Class B Shareholdings T
Slide 48: Notes: Appendix – Strategy and Overview
Notes: Appendix – Strategy and Overview Slide 38: Global Customer Base 1. Gross profit before depreciation and amortization is a non-GAAP financial measure. See “Non-GAAP Financial Measures” slides. Slide 40: Disciplined Approach to M&A 1. Carmen de Andacollo gold stream transaction occurred in USD
Slide 49: Notes: Appendix – Strategy and Overview
Notes: Appendix – Strategy and Overview Slide 44: Commodity Price Leverage 1. As at October 23, 2019. Before pricing adjustments, based on our current balance sheet, our expected 2019 mid-range production estimates, current commodity prices and a Canadian/U.S. dollar exchange rate of $1.32. See Teck
Slide 50: Sustainability
Sustainability Teck
Slide 51: Sustainability Strategy
Sustainability Strategy • Strong sustainability performance enabled by a strategy built around developing opportunities and managing risks Community Water Our People • Implementing a sustainability strategy with short-term, five-year goals and long-term goals stretching out to 2030 Biodiversity Ener
Slide 52: Why Sustainability Matters
Why Sustainability Matters • Reduced risk of operations disruption • Increased access to capital at a lower cost • Efficient project and permit approvals • Increased cost savings and productivity • Meet rising supply chain and societal expectations • Higher financial returns • Employee retention and
Slide 53: Health and Safety Performance
Health and Safety Performance • Safety performance in 2018 Incident Frequency (per 200,000 hours worked) - 28% reduction in High-Potential 0.6 Incidents 0.5 - 21% decrease in Lost-Time Injury 0.4 Frequency 0.3 • Conducted Courageous Safety 0.2 Leadership training with 97% of 0.1 employees 0 • Two fa
Slide 54: Reducing Freshwater Use
Reducing Freshwater Use Teck top of 50+ companies ranked by DJSI • Water recycled average of 3 DJSI Water Related Risk Assessment times at mining operations in 2019 Percentile Rankings2 2018 100 Teck • Target to reduce freshwater 90 (100th percentile) use at Chilean operations by 80 lowest to highes
Slide 55: Taking Action on Climate Change
Taking Action on Climate Change Teck in top 3 of 50+ companies ranked by DJSI • Goal to reduce GHG emissions by DJSI Climate Strategy Assessment 450,000 tonnes by 2030 and have 2019 Percentile Rankings2 already reduced 289,000 tonnes of 100 Teck emissions as a result of projects 90 (98th percentile)
Slide 56: Lower-Risk Jurisdictions, Comprehensive Assessments
Lower-Risk Jurisdictions, Comprehensive Assessments Teck in top 3 of 50+ companies ranked by DJSI • All operations in countries with DJSI Human Rights Assessment well-developed mining industries: 2019 Percentile Rankings2 100 Teck Canada, United States, Chile, Peru 90 (97th percentile) • Robust regu
Slide 57: Strengthening Relationships with Indigenous Peoples
Strengthening Relationships with Indigenous Peoples • Agreements in place at all mining operations within or adjacent to Indigenous Peoples’ territories • Achieved agreements with all Indigenous communities near the QB2 project ‒ 8 of 8 agreements with Indigenous communities ‒ 7 of 7 agreements with
Slide 58: Employee Relations and Diversity
Employee Relations and Diversity 18% • 57% of our employees are unionized • Focused on strengthening diversity, women in our workforce with women making up 26% of new 20% hires in 2018 • In 2018, 9% of total hires self- management identified as Indigenous from our positions held Red Dog, Highland Va
Slide 59: Collective Agreements
Collective Agreements OPERATION EXPIRY DATES November 30, 2019 Quebrada Blanca January 31, 2022 March 31, 2022 Line Creek May 31, 2019 September 30, 2019 Carmen de Andacollo December 31, 2019 Elkview October 31, 2020 Fording River April 30, 2021 Antamina July 31, 2021 Highland Valley Copper Septembe
Slide 60: Notes: Sustainability
Notes: Sustainability Slide 54: Reducing Freshwater Use 1. Sustainability Accounting Standards Board Standards. https://www.sasb.org/ 2. SAM Corporate Sustainability Assessment 2018. Slide 55: Taking Action on Climate Change 1. Sustainability Accounting Standards Board Standards. https://www.sasb.or
Slide 61: Technology and Innovation
Technology and Innovation Teck
Slide 62: Teck is Actively Pursuing a Transformation Of Our Business Through Technology
Teck is Actively Pursuing a Transformation Of Our Business Through Technology RACE21TM RENEW AUTOMATE CONNECT EMPOWER Modernize Teck’s Accelerate and Develop Design future technology scale autonomy digital platform operating model foundation program for sensing and to empower our analytics employees
Slide 63: RACE21: Renew and Automate
RACE21TM Renew Automate • Unify and modernize Teck’s core systems • Accelerate and scale autonomy program • Establish technology foundation that facilitates • Transformational shift in safety deployment of Connect and Automate reliably and at • Reduce per-tonne mining costs with smaller fleets scale
Slide 64: RACE21: Connect and Empower
RACE21TM Connect Empower • Link disparate systems into a collaborative digital • The natural implication of Renew, Automate, and platform with powerful tools for sensing and analyzing Connect is we can re-imagine what it means to work in real time at Teck and re-design our operating model to attract
Slide 65: Significant Value To Be Captured
Significant Value To Be Captured SAFETY PROFITABILITY PRODUCTIVITY COST Transformational Step-change Increased Reduced safety impact with impact to productivity through operational costs fewer people in profitability new technologies by achieving high risk and internal manufacturing environments inn
Slide 66: $150M Plan Announced in our Q2 2019 Results
$150M Plan Announced in our Q2 2019 Results “RACE21™ is about taking a company-wide approach to renewing our technology infrastructure, looking at opportunities for automation and robotics, connecting our data systems to enable broad application of advanced analytics and artificial intelligence, and
Slide 67: Specific Opportunities Are Targeted For 2019
Specific Opportunities Are Targeted For 2019 Processing Analytics Mining Analytics Predictive Maintenance • Wash plant optimization • Haul cycle analytics • Maintenance analytics • Mill optimization • Fuel dashboard • Drill & blast optimization 67
Slide 68: Electrification of Mining
Electrification of Mining Electric crew buses at our Electric boom vehicles to be Working with OEMs through steel making coal tested in pit. ICMM to develop zero-GHG operations. surface mining vehicles Teck is taking steps to reduce its carbon footprint by starting to electrify the fleet. 68
Slide 69: RACE21 - Transforming Our Business
RACE21TM - Transforming Our Business RACE21TM Teck’s Future Operation (Autonomy program Value for mobile fleet substantially complete) RACE21TM (Significant value captured) RACE21TM (Target: $150M) 2019 2021 2023 2025-30 End Today RACE21TM – Teck transforming to be a leader RACE21TM – Teck’s future
Slide 70: Steelmaking Coal Business Unit & Markets
Steelmaking Coal Business Unit & Markets
Slide 71: Steelmaking Coal Facts
Steelmaking Coal Facts Global Coal Production1: ~7.5 billion tonnes Steelmaking Coal Production2: ~1,150 million tonnes Export Steelmaking Coal2: ~350 million tonnes Seaborne Steelmaking Coal2: • ~0.7 tonnes of steelmaking coal is used to ~310 million tonnes produce each tonne of steel3 • Up to 100
Slide 72: Steelmaking Coal Demand Growth Forecast
Steelmaking Coal Demand Growth Forecast Growth drivers: Southeast Asia, India and China Seaborne Steelmaking Coal Imports1 (Mt) Change 2019 vs. 2018 330 4 4 5 318 0.8 315-319 320 5 309 310 300 290 280 2018 SE Asia China India Europe 2019, ex Brazil 2019 Includes: Brazil • Southeast Asia: Growth most
Slide 73: Indian Steelmaking Coal Imports
Indian Steelmaking Coal Imports Imports supported by secular demand and government growth targets Indian Crude Steel Production1 (Mt) Indian Seaborne Coking Coal Imports2 (Mt) 120 60 100 50 80 40 60 30 40 20 20 10 0 0 73
Slide 74: Growing India Steelmaking Coal Imports
Growing India Steelmaking Coal Imports India plans to achieve 300 Mt of crude steel capacity by 2030-2031 India’s Hot Metal Capacity; Projects and Operations1 National Steel Policy 20172 Projections Jammu & Existing Hot Metal Capacity Kashmir Parameters (2030-31) Brownfield Expansion Greenfield Proj
Slide 75: Chinese Steelmaking Coal Imports
Chinese Steelmaking Coal Imports Seaborne YTD August 2019 imports up by +3 Mt Chinese Crude Steel Production (CSP), Hot Metal Production (HMP) and Coal Production (Mt)1 Chinese Coking Coal Imports2 (Mt) 1200 520 90 80 1000 500 70 16 800 480 60 35 15 26 50 28 24 600 460 19 13 40 15 20 400 440 30 60 4
Slide 76: Large Users in China Increasing Imports
Large Users in China Increasing Imports ~2/3 of China crude steel produced on coast; projects support imports Seaborne Coking Coal Imports1 (Mt) ZONGHENG FENGNAN PROJECT • Inland plant relocating to coastal area 70 • Capacity: crude steel 8 Mt 60 • Status: Construction started in 2017; 2 of 5 BFs 50
Slide 77: Chinese Steel Margins
Chinese Steel Margins Margins have declined but remain positive China Hot Rolled Coil (HRC) Margins and Steelmaking Coal (HCC) Prices1 (US$/t) 350 300 250 200 150 100 50 0 -50 China HRC Gross Margins China Domestic HCC Price Argus Premium HCC CFR China 77
Slide 78: Chinese Scrap Use to Increase Slowly
Chinese Scrap Use to Increase Slowly EAF share in crude steel production to recover only to 2013’s level China’s Scrap Ratio was ~1/2 of World Average China Steel Use By Sector in 20171 (%) (2000-2018)2 100% 78% 80% 72% 55% 60% 40% 39% 35% 32% 37% 40% 23% 18% Others 20% 15-25% 0% Auto 5-10% Construc
Slide 79: Steelmaking Coal Supply Growth Forecast
Steelmaking Coal Supply Growth Forecast Growth comes from Australia, Russia and Colombia Seaborne Steelmaking Coal Exports1 (Mt) Change 2019 vs. 2018 330 4 1 1 2 319 4 312-319 320 1 5 309 310 300 290 280 2018 Australia Russia Colombia Indonesia Canada Mozambique 2019, USA 2019 ex.USA Includes: • Aus
Slide 80: US Coal Producers are Swing Suppliers
US Coal Producers are Swing Suppliers Australian Steelmaking Coal Exports1 (Mt) US Steelmaking Coal Exports2 (Mt) 200 70 180 60 160 140 50 120 40 100 30 80 60 20 40 10 20 0 0 80
Slide 81: Canadian & Mozambique Steelmaking Coal Exports
Canadian & Mozambique Steelmaking Coal Exports Canadian Exports1 (Mt) Mozambique Exports2 (Mt) 40 9 35 8 30 7 25 6 20 5 4 15 3 10 2 5 1 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E 81
Slide 82: 2nd Largest Seaborne Steelmaking Coal Supplier
2nd Largest Seaborne Steelmaking Coal Supplier Competitively positioned to supply steel producers worldwide Sales Distribution CHINA 2013: ~30% NORTH AMERICA EUROPE 2017: ~15% ~5% 2013: ~15% INDIA 2017: ~20% 2018: ~10% 2013: ~5% 2018: ~15% 2017: ~10% 2018: ~15% ASIA EXCL. CHINA & INDIA 2013: ~40% LA
Slide 83: An Integrated Long Life Coal Business
An Integrated Long Life Coal Business ELK VALLEY British Columbia Prince Rupert Elco Quintette Ridley Fording • 940 million tonnes1 of Terminal Alberta River reserves support ~27 Mt of Prince George Edmonton production for many years Greenhills Elkford Cardinal River • Geographically concentrated Li
Slide 84: Long Life with Growth Potential
STEELMAKING COAL Long Life with Growth Potential Annual Production Capacity (Million tonnes) 27+ million tonnes in 2021 and 30 beyond 29 − Investment in plant throughput capacity 28 at Elkview to capitalize on lower strip 27 ratio beginning in 2020 26 25 24 Investing in low capital intensity product
Slide 85: Maximizing Cash Flow in Any Steelmaking Coal Market
Maximizing Cash Flow in Any Steelmaking Coal Market High Price Environment Adjusted Cash Cost of Sales2 and Realized Sales Price ($/t) • Production focus to capture high margins $243 and maximize free cash flow1 $250 $226 $219 ‒ Utilize higher cost equipment, contractor $194 labour, internal overtim
Slide 86: Setting Up for Strong Long-Term Cash Flows In Steelmaking Coal
Setting Up for Strong Long-Term Cash Flows In Steelmaking Coal Strip ratio increase planned in 2019 to advance clean coal expansion • Future strip ratio on par with historical average Clean Strip Ratio1 12 10 Elkview Operations driving the increase in clean coal strip ratio to advance ability 8 to p
Slide 87: Reinvesting to Maintain Productivities And Manage Costs in Steelmaking Coal
Reinvesting to Maintain Productivities And Manage Costs in Steelmaking Coal Maintaining historical dollar per tonne Sustaining Capital, Excluding sustaining investment levels Water Treatment1 ($/t) $14 2010-2016: Average spend of ~$6 per tonne1 $12 • Reinvestment in 5 shovels, 50+ haul trucks $10 $8
Slide 88: Investing In Production Capacity in Steelmaking Coal
Investing In Production Capacity in Steelmaking Coal Major enhancement projects increasing long-term Major Enhancement Capital Expenditures1,2 ($M) production capacity: • SWIFT at Fording River Operations 400 • Baldy Ridge Extension at Elkview Operations 350 • 9 Million project at Elkview Operations
Slide 89: Teck's Pricing Mechanisms
Teck’s Pricing Mechanisms Coal sales book generally moves with the market SALES MIX Pricing Mechanisms (%) • ~40% quarterly contract price • ~60% shorter than quarterly pricing mechanisms (including “spot”) 20% Index Linked PRODUCT MIX 80% Fixed • ~75% of production is high-quality HCC Price • ~25%
Slide 90: Quality and Basis Spreads
Quality and Basis Spreads Impact Teck’s average realized steelmaking coal prices HCC / SHCC Prices and Spread1 (US$/t) HCC FOB / CFR Prices and Spread2 (US$/t) 350 100 350 40 300 300 75 20 250 250 200 0 200 50 150 150 -20 100 25 100 50 -40 50 0 0 0 -60 HCC (LHS) SHCC (LHS) HCC / SHCC spread (RHS) HC
Slide 91: ~75 Mtpa of West Coast Port Capacity Planned
~75 Mtpa of West Coast Port Capacity Planned Teck port capacity exceeds current production plans WESTSHORE TERMINALS West Coast Port Capacity (Nominal Mt) • Current capacity 35 Mtpa 40 • ~$275 million upgrade completed • Teck is largest customer at 19 Mtpa • Contract expires March 31, 2021 30 NEPTUN
Slide 92: Notes: Appendix – Steelmaking Coal
Notes: Appendix – Steelmaking Coal Slide 71: Steelmaking Coal Facts 1. Source: IEA. 2. Source: Wood Mackenzie (Long Term Outlook H1 2019). 3. Source: World Coal Association. Assumes all of the steel required is produced by blast furnace-basic oxygen furnace route. 4. Source: The Coal Alliance. Assum
Slide 93: Notes: Appendix – Steelmaking Coal
Notes: Appendix – Steelmaking Coal Slide 83: An Integrated Long Life Coal Business 1. Sites at 100% tonnes as at January 1, 2019. Source: Teck AIF. Slide 84: Long Life with Growth Potential in Steelmaking Coal 1. Subject to market conditions and obtaining relevant permits. Slide 85: Maximizing Cash
Slide 94: Copper Business Unit & Markets
Copper Business Unit & Markets
Slide 95: Global Copper Mine Production Increasing Slowly
Global Copper Mine Production Increasing Slowly Mine Production Set To Increase 1.9 Mt By 20231 Global Copper Mine Production2 (kt contained) Includes: Mine kmt 22,000 Cobre Panama 370 20,000 Kamoa - Kakula 310 Quellaveco 300 18,000 Quebrada Blanca 300 16,000 Glencore’s African mine restarts 240 PT
Slide 96: Copper Disruptions Return To Impact Mines
Copper Disruptions Return To Impact Mines TC/RCs Spot and BM Falling1 (US$/lb) Disruptions (kt)2; $120 Q3 2005 2007 2009 2011 2013 2015 2017 2019 $110 0 $100 $90 -200 $80 $70 -400 $60 -600 2.8% 2.7% $50 $40 -800 3.6% $30 $20 -1,000 4.6% YTD Annual/Mid Year Spot -1,200 6.8% 96
Slide 97: Rapid Growth in Chinese Copper Smelter Capacity
Rapid Growth in Chinese Copper Smelter Capacity Limited domestic mine projects and lots of delays Chinese Copper Mine Growth1 +3.0 Mt of Smelting Projects in the Pipeline2 (kt) (kt blister) 400 400 2019 2020 2020 – 2023 2018/2019 2020 2020 – 2023 49 kt 61 kt 240 kt 2,030 kt 520 kt 480 kt 300 300 200
Slide 98: Copper Supply
Copper Supply Mine production rising and scrap availability falling Sanctioned Projects Since 20171 (kt) China Copper Scrap Imports Decline2 New mines commissioned will (Copper content, kt) 2,000 add 2.5 Mt from 2017-2025 3,000 1,500 2,500 1,000 2,000 500 1,500 0 2013 2014 2015 2016 2017 2018 1,000
Slide 99: Copper Metal Stocks
Copper Metal Stocks Better than expected demand; smelter disruptions • Production cuts at Asian smelters combined with Daily Copper Prices (US$/mt) and Stocks1 (kt) lower scrap availability contributed to a drawdown $12,000 1,800 in cathode stocks 1,600 • Exchange stocks have fallen 447,000 tonnes $
Slide 100: Copper Supply / Demand Balance
Copper Supply / Demand Balance Projects available to fill low demand scenario gap Probable Projects Sufficient Only To Fill Existing and Fully Committed Supply1 (kt) Low Gap Scenario2 (kt) 5,500 28,000 27,000 4,500 26,000 Additional 3,500 gap to high 25,000 demand 2,500 Additional 24,000 gap to base
Slide 101: Long Life and Stable Assets in Copper
Long Life and Stable Assets in Copper Antamina Highland Valley Carmen de Andacollo Quebrada Blanca • Copper production through • Higher recoveries driving • June thickener failure • Copper production on track end of Q3 of 76,000 increased copper impacted Q2 2019 copper with leaching operations tonne
Slide 102: Cost Discipline and Improvement Focus in Copper
Cost Discipline and Improvement Focus in Copper Operating Expenses & Productivity Focused Investment Priorities • Cross site sharing in asset management • Numerous projects finishing in 2019 and continues to improve availabilities and early 2020 reduce costs - D3 Ball Mill at HVC, QB1 water • Robust
Slide 103: Major Growth and Life Extension Projects in Copper
Major Growth and Life Extension Projects in Copper Setting up for long-term success Quebrada Blanca • QB2: 316 kt of CuEq production for first 5 years1 - Doubles copper production with low strip ratio and AISC of US$1.38/lb copper2 • QB3: Scoping Study on expansion potential in progress - Mineral re
Slide 104: Notes: Appendix – Copper
Notes: Appendix – Copper Slide 95: Global Copper Mine Production Increasing Slowly 1. Source: Data compiled by Teck based on information from Wood Mackenzie and Company Reports (average production first 10 years) 2. Source: Source: Data compiled by Teck based on information from Wood Mackenzie and T
Slide 105: Zinc Business Unit & Markets
Zinc Business Unit & Markets Teck
Slide 106: Environmental Policy Decreasing Chinese Production
Environmental Policy Decreasing Chinese Production Chinese Mine Production Down 2.4% in 20181 Chinese Refined Production Down 3.4% in 20182 (kt Contained) (kt Contained) 5,000 6,500 4,500 6,000 5,500 4,000 5,000 3,500 4,500 3,000 4,000 2,500 3,500 2,000 3,000 2012 2013 2014 2015 2016 2017 2018 2012
Slide 107: Increasing Demand for Zinc Metal Imports
Increasing Demand for Zinc Metal Imports De-stocking Continues More Imported Zinc Metal Chinese Stocks at Record Lows1,2 (kt) Required to Fill the Gap3 (kt) 1,600 1,600 1,440 1,400 1,400 1,242 1,246 1,247 1,200 1,200 1,000 1,000 770 788 800 800 652 600 600 503 400 400 200 200 0 0 2015 2016 2017 2018
Slide 108: Zinc Supply
Zinc Supply Mine production missed forecast in 2018 • Teck originally forecast global mine production Zinc Mine Production1 (kt contained) would grow 7.9% or over 800,000 tonnes in 2018 16,000 ‒ Due to start up of large mines, Dugald River, Gamsberg, New Century and restarts by Glencore 14,000 • Glo
Slide 109: Chinese Zinc Mine Projects Delayed
Chinese Zinc Mine Projects Delayed Impacted by inspections and low zinc ore grades Estimated Chinese Zinc Mine Growth Chinese Mine Growth 2019-2021 Heavily Rarely Achieved1 (Kmt Contained) Dependent On Single Project2 (kt contained) 600 600 400 200 400 360 0 350 270 300 250 237 200 200 180 100 60 62
Slide 110: Zinc Concentrate Treatment Charges
Zinc Concentrate Treatment Charges Treatment Charges1 (USD/dmt) 350 300 250 200 150 100 50 0 Spot TC Benchmark TC 110
Slide 111: Zinc Metal Stocks
Zinc Metal Stocks Consecutive deficits decreasing zinc inventories • Deficits in past 5 years have driven down stocks Daily Zinc Prices1,2 (US$/mt) • LME refined zinc stocks have decreased 67,700 and Stocks1,2 (kmt) tonnes year-to-date in 2019 5,000 2,500 • Less than 59,000 tonnes of refined zinc re
Slide 112: Zinc Supply / Demand Balance
Zinc Supply / Demand Balance Zinc mine production peaks in 2021 Existing and Fully Committed Supply1 (kt) Probable Projects Sufficient To Fill Gap2 (kt) 17,000 Additional gap to 1,500 high demand 16,000 Additional gap to 1,000 base 15,000 demand 500 14,000 Gap to low demand 13,000 0 2019 2020 2021 2
Slide 113: Largest Global Net Zinc Mining Companies
Largest Global Net Zinc Mining Companies Teck is the Largest Net Zinc Miner1(kt) Provides significant exposure to a rising zinc price 400 Public Company 350 Teck Private Company 300 250 200 150 100 50 0 113
Slide 114: Integrated Zinc Business
Integrated Zinc Business Red Dog Trail Pend Oreille • Strong Q2 & Q3 2019 production • Zinc production impacted by recent • Care and maintenance started in offset difficult Q1 winter weather electrical equipment failure in refinery, August conditions reducing production by ~25,000 • Decision on path
Slide 115: Cost Discipline and Improvement Focus in Zinc
Cost Discipline and Improvement Focus in Zinc Operating Expenses & Productivity Focused Investment Priorities • Cross site sharing in asset management • Numerous projects finishing in 2019 and continues to improve availabilities and early 2020 reduce costs - VIP2 at Red Dog, Acid Plant #2 at Trail •
Slide 116: Red Dog Sales Seasonality
Red Dog Sales Seasonality • Operates 12 months Zinc Sales 1 (%) 40% 34% • Ships ~ 4 months 30% 30% 21% • Shipments to inventory in Canada 20% 15% and Europe; Direct sales to Asia 10% • ~65% of zinc sales in second half 0% Q1 Q2 Q3 Q4 of year • ~100% of lead sales in second half Lead Sales1 (%) of ye
Slide 117: Red Dog Net Cash Unit Cost Seasonality
Red Dog Net Cash Unit Cost Seasonality Significant quarterly variation Red Dog Net Cash Unit Costs1 (US$/lb) 0.60 0.40 0.20 - Q1 Q2 Q3 Q4 • Seasonality of Red Dog unit costs largely due to lead sales during the shipping season • Zinc is a by-product credit at Antamina and accounted for in the Copper
Slide 118: Red Dog in Bottom Quartile of Zinc Cost Curves
Red Dog in Bottom Quartile of Zinc Cost Curves Total Cash + Capex Cost Curve 20201 (US¢/lb) 200 2020 Costs Based on Current Prices Current Spot LME Price 180 160 140 120 100 80 RED DOG 60 40 20 0 0% 25% 50% 75% 100% 118
Slide 119: Red Dog Extension Project
Red Dog Extension Project Long Life Asset • Aktigiruq exploration target of 80-150 Mt @ 16-18% Zn + Pb1 • Anarraaq Inferred Resource2: 19.4 Mt @14.4% Zn, 4.2% Pb Quality Project • Premier zinc district • Significant mineralized system • High grade Stable Jurisdiction • Operating history • ~12 km fro
Slide 120: Building a Quality Zinc Inventory
Building a Quality Zinc Inventory Potential New GIANT System1 (Contained Zn+Pb in Mt and Grade Zn+Pb in %) GIANT ZINC DEPOSITS (+6 Mt Zn+Pb) 120
Slide 121: Global Context of Teck's Zinc Resources
Global Context of Teck’s Zinc Resources Well positioned; world class 30 Teck’s Zinc Resources1 Qanaiyaq (Resource in Mt and Grade Zn+Pb in %) 25 Red Dog Past Production Aqqaluk Aktigiruq Exploration Target1 20 80-150 Mt Grade Zn+Pb % Anarraaq Paalaaq 16-18% Zn+Pb 15 Rampura Broken Hill Agucha McArth
Slide 122: Notes: Appendix – Zinc
Notes: Appendix – Zinc Slide 106: Environmental Policy Decreasing Chinese Production 1. Source: Data compiled by Teck based on information from BGRIMM, CNIA, Antaike 2. Source: Data compiled by Teck based on information from BGRIMM, CNIA, Antaike Slide 107: Increasing Demand for Zinc Metal Imports 1
Slide 123: Notes: Appendix – Zinc
Notes: Appendix – Zinc Slide 113: Largest Global Net Zinc Mining Companies 1. Source: Data compiled by Teck from information from Wood Mackenzie – Company smelter production netted against company mine production on an equity basis. Slide 116: Red Dog Sales Seasonality 1. Average sales from 2014 to
Slide 124: Energy Business Unit & Markets
Energy Business Unit & Markets
Slide 125: Energy Benchmark Pricing
Energy Benchmark Pricing Calendar NYMEX WTI Price1 and WTI/WCS Basis Differential2,3 (US$/bbl) 80 80 70 70 60 60 50 50 40 40 30 30 20 20 10 10 0 - (10) (10) Calendar NYMEX WTI Price WTI/WCS Basis Differential at Hardisty WTI/WCS Basis Differential at the USGC 125
Slide 126: US Midwest and US Gulf Coast are Key Markets
US Midwest and US Gulf Coast are Key Markets Blended Bitumen Pipelines Edmonton Hardisty TransCanada Keystone, Keystone XL Superior Enbridge/Line 3 Asia Vancouver Montreal TransMountain/TMX In Service Pipeline Steele City Flanagan Proposed Pipeline California Market Hub Cushing Deep Water Port Asia
Slide 127: Export Capacity Needed To Meet Global Demand
Export Capacity Needed To Meet Global Demand Near term (2019-2021): Western Canada Supply & Markets1 (Mbpd) • Canadian export capacity lagging Reliant on rail 2019-2021 • Reliant on rail (400-500 Kbpd) 7.5 7.0 Pipeline development progressing: 6.5 TransMountain • Enbridge: 370 Kbpd (2020-2021) 6.0 T
Slide 128: Lower Carbon Intensity Product at Fort Hills
Lower Carbon Intensity Product at Fort Hills Comparable to the average barrel refined in the U.S. PFT Diluted Bitumen has a Lower Carbon Intensity Than Around Half of the Barrels of Oil Refined in the US, on a Wells-to-Wheels Basis1 (Total carbon intensity - kgCO2e per barrel of refined products) 60
Slide 129: Fort Hills Blend Widely Accepted In Market
Fort Hills Blend Widely Accepted In Market We produce a high quality refinery feedstock Delivery Location (Kbpd) • Low GHG intensity: <50% of US crude supply Teck Blend: • Including in-situ and upgraded synthetic 49.5 Kbpd Our sales mix provides diverse market access 10.0 US Gulf Coast: monthly basi
Slide 130: Diverse Portfolio of Sales in Energy
Diverse Portfolio of Sales in Energy Blend Sales By Delivery Point (%) Revenue (US$/bbl) LOCATION NYMEX WTI WESTERN CANADIAN SELECT DIFFERENTIAL BASIS 20% (Pipeline) US Gulf Coast Calendar average Monthly contracted (Pipeline) monthly WTI spot differential at US 60% Gulf Coast 20% (Pipeline) Hardist
Slide 131: Quality Barrels in a Progressive Jurisdiction
Quality Barrels in a Progressive Jurisdiction 4th largest oil sands mining portfolio Fort Hills in operation Alberta, Canada • Teck 21.3% = 0.6 billion barrels1 Frontier in the regulatory phase • Teck 100% = 3.2 billion barrels2 Lease 421: future growth • Teck 50% CNRL Horizon Imperia l Kearl • High
Slide 132: Our Energy Strategy
Our Energy Strategy Maximizing value of Fort Hills • Start-up complete, increase production volumes, lower costs De-risking Frontier & Lease 421 • Frontier regulatory hearing completed in 2018, decision in early 2020 Driving business results through technology & innovation • Safe & reliable producti
Slide 133: Fort Hills is a Modern Mine
Fort Hills is a Modern Mine Built for low cost operations Fort Hills 2018 Production @100% (Barrels per day) 201,000 bpd 250,000 Exit 2018 December 2018 @ 201,000 bpd 200,000 <$23/bbl 150,000 Great start-up adjusted operating costs1 December 2018 100,000 50,000 PFT Product low GHG emissions - Jan Fe
Slide 134: Attractive Debottlenecking Opportunities at Fort Hills
Attractive Debottlenecking Opportunities at Fort Hills To be implemented in two phases Potential capacity increase of PFT Process 20 kbpd to 40 kbpd • Teck’s share of annual production could increase from 14.0 Mbpa to 15.5-17.0 Mbpa • Near term opportunities require little to no capital (phase 1) •
Slide 135: Significant EBITDA Upside Potential in Energy
Significant EBITDA Upside Potential in Energy Providing the basis for strong and steady cash flow for decades Assumptions EBITDA1 Potential – Teck’s share ($ millions) 800 WTI @ WTI @ ASSUMPTIONS 700 US$70/BBL US$60/BBL 600 +$150M WTI-WCS differential US$10.00 US$14.75 500 400 +$100M C$/US$ exchange
Slide 136: Teck's Energy Outlook
Teck’s Energy Outlook $70 million in EBITDA1 generated at Fort Hills in Q2 2019 • Government of Alberta curtailments effective January 1, 2019 • Fort Hills: PRODUCTION ADJUSTED OPERATING COSTS2 CAPITAL 2019 • Expect to be at the low end of our • With the lower production, we expect • C$11.50-$13.50
Slide 137: Notes: Appendix – Energy
Notes: Appendix – Energy Slide 125: Energy Benchmark Pricing 1. The WTI CMA is an average of the daily settle quoted price for WTI prices for future deliveries for the trading days during a calendar month. Source: CME Group. As at October 23, 2019. 2. WCS at Hardisty: an index value determined durin
Slide 138: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 139: Non-GAAP Financial Measures
Non-GAAP Financial Measures Our financial results are prepared in accordance with International Financial Reporting Standards (IFRS). This document refers to a number of Non-GAAP Financial Measures, which are not measures recognized under IFRS in Canada and do not have a standardized meaning prescri
Slide 140: Reconciliation of Profit and Adjusted Profit
Non-GAAP Financial Measures Reconciliation of Profit and Adjusted Profit Three months ended Three months ended (C$ in millions) September 30, 2019 September 30, 2018 Profit attributable to shareholders $ 369 $ 1,281 Add (deduct): Debt redemption losses - 19 Debt prepayment option (gain) loss - (17)
Slide 141: Reconciliation of Basic and Diluted Earnings Per Share
Non-GAAP Financial Measures Reconciliation of Basic Earnings Per Share to Adjusted Basic Earnings Per Share Three months ended Three months ended (C$ in millions) September 30, 2019 September 30, 2018 Basic earnings per share $ 0.66 $ 2.23 Add (deduct): Debt prepayment option loss (gain) - (0.03) De
Slide 142: Reconciliation of Net Debt-to-Adjusted EBITDA Ratio
Non-GAAP Financial Measures Reconciliation of Net Debt-to-Adjusted EBITDA Ratio & Net Debt-to-Debt-Plus-Equity Ratio (A) (B) (C) (A-B+C) Twelve months ended Nine months ended Nine months ended Twelve months ended (C$ in millions) December 31, 2018 September 30, 2018 September 30, 2019 September 30,
Slide 143: Reconciliation of EBITDA and Adjusted EBITDA
Non-GAAP Financial Measures Reconciliation of EBITDA and Adjusted EBITDA Three months ended Three months ended (C$ in millions) September 30, 2019 September 30, 2018 Profit attributable to shareholders $ 369 $ 1,281 Finance expense net of finance income 56 74 Provision for income taxes 171 329 Depre
Slide 144: Energy Business EBITDA by Entity
Non-GAAP Financial Measures Energy Business EBITDA by Entity Three months ended Three months ended (C$ in millions) September 30, 2019 September 30, 2018 Reported as: Reported as: Other Other Energy Fort Hills Energy Energy Fort Hills Energy Profit (loss) before taxes $ (2) $ 7 $ (9) $ (24) $ (21) $
Slide 145: Reconciliation of Gross Profit Before Depreciation and Amortization
Non-GAAP Financial Measures Reconciliation of Gross Profit Before Depreciation and Amortization Three months ended Three months ended (C$ in millions) September 30, 2019 September 30, 2018 Gross profit $ 787 $ 1,009 Depreciation and amortization 436 380 Gross profit before depreciation and amortizat
Slide 146: Reconciliation of Gross Profit Margins Before Depreciation
Non-GAAP Financial Measures Reconciliation of Gross Profit Margins Before Depreciation Three months ended Three months ended (C$ in millions) September 30, 2019 September 30, 2018 Revenue Steelmaking coal (E) $ 1,277 $ 1,505 Copper (F) 601 611 Zinc (G) 902 884 Energy (H) 255 209 Total $ 3,035 $ 3,20
Slide 147: Steelmaking Coal Unit Cost Reconciliation
Non-GAAP Financial Measures Steelmaking Coal Unit Cost Reconciliation Three months ended Three months ended (C$ in millions, except where noted) September 30, 2019 September 30, 2018 Cost of sales as reported $ 852 $ 871 Less: Transportation (237) (250) Depreciation and amortization (203) (176) Inve
Slide 148: Copper Unit Cost Reconciliation
Non-GAAP Financial Measures Copper Unit Cost Reconciliation Three months ended Three months ended Three months ended Three months ended (C$ in millions, except where noted) September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Revenue as reported $ 601 $ 611 US$ AMOUNTS1 By-pro
Slide 149: Zinc Unit Cost Reconciliation
Non-GAAP Financial Measures Zinc Unit Cost Reconciliation (Mining Operations)1 Three months ended Three months ended Three months ended Three months ended (C$ in millions, except where noted) September 30, 2019 September 30, 2018 (C$ in millions, except where noted) September 30, 2019 September 30,
Slide 150: Energy Operating Netback
Non-GAAP Financial Measures Energy Operating Netback1 Three months ended Three months ended (C$ in millions, except where noted) September 30, 2019 September 30, 2018 Revenue as reported $ 255 $ 209 Less: Cost of diluent for blending (79) (66) Non-proprietary product revenue (7) (18) Add back: Crown
Slide 151: Bitumen Price Realized Reconciliation
Non-GAAP Financial Measures Bitumen Price Realized Reconciliation1 Three months ended Three months ended September 30, 2019 September 30, 2018 Blended bitumen barrels sold (000’s) 4,240 3,105 Less: diluent barrels included in blended bitumen (000’s) (932) (621) Bitumen barrels sold (000’s) (B) 3,308
Slide 152: Blended Bitumen Price Realized Reconciliation
Non-GAAP Financial Measures Blended Bitumen Price Realized Reconciliation1 Three months ended Three months ended (C$ in millions, except where noted) September 30, 2019 September 30, 2018 Revenue as reported $ 255 $ 209 Less: Non-proprietary product revenue (7) (18) Add back: Crown royalties 6 7 Ble
Slide 153: Reconciliation of Free Cash Flow
Non-GAAP Financial Measures Reconciliation of Free Cash Flow 2003 to (C$ in millions) Q3 2019 Cash Flow from Operations $45,805 Debt interest and finance charges paid (5,394) Capital expenditures, including capitalized stripping costs (23,939) Payments to non-controlling interests (NCI) (627) Free C
Slide 154: Investor Meetings November 2019
Investor Meetings November 2019