Teck Resources Limited Class A · TSX:TECK.A
Teck Resources Limited Class A — Western Institutional Investor Conference (January 2020)
158 slides from Teck Resources Limited Class A's conference presentation, Jan 29, 2020
Slide 1: Western Institutional Investor Conference
Western Institutional Investor Conference January 29, 2020 Don Lindsay President and Chief Executive Officer
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 regarding our reserve and resource life estimates assume the mine life of longest lived resource in the relevant commodity is achieved, assumes production at planned rates and in some cases development of as yet undeveloped projects and assumes
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 • QB2/QB3 sanctioning announced, in stable jurisdictions • Transformation partnership closed and • Strong financial position through innovation: project fina
Slide 5: Key Priorities
Key Priorities RACE21TM QB2 • Accelerating our innovation-driven efficiency • Long-life, low-cost operation with major program expansion potential • Working towards $150 million improvement • QB3 has potential to become a top five in annualized EBITDA1 by end of 2019 global copper producer • Rebalan
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: 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 8: Neptune Facility Upgrade
Neptune Facility Upgrade • Secures a long term, low cost and reliable supply chain for our steelmaking coal business • Ensures we have the flexibility to deliver to our customers when prices are high • Significant returns generated from lower operating costs and increased flexibility to respond to m
Slide 9: Cost Reduction Program
Cost Reduction Program Implementing a company-wide cost reduction program in response to current global economic uncertainty • Targeting total reductions of ~$500 million from previously planned spending through the end of 2020 • Expect to eliminate ~500 full-time equivalent positions • Target cost
Slide 10: Focus on Sustainability Leadership
Focus on Sustainability Leadership Teck’s performance on top ESG ratings • Top-ranked mining • “A” rating since 2013 • Tied for 2nd in mining company 2019 World & (scale of CCC – AAA) & metals category North American Indices • Outperforming all 10 of our • Ranked in the 100th • In the index for 10 l
Slide 11: Low-Carbon Producer
Low-Carbon Producer Well positioned for Low-Carbon GHG Emissions Intensity Ranges Economy Among ICMM Members1 (kgCO2e per tonne of product) Carbon pricing already built into Steelmaking majority of business Copper Coal 9 175 Among world’s lowest GHG 150 intensities for steelmaking coal and copper pr
Slide 12: Low-Carbon Producer cont'd
Low-Carbon Producer cont’d Scope 1+2 emissions per copper equivalent ranking1 CO2 emissions per unit of energy consumed1 (tCO2e/t CuEq, 2017) (CO2t/GJ) 12
Slide 13: Responsible Tailings Management
Responsible Tailings Management Teck has 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 Ins
Slide 14: 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$3.2 billion 1,200 maturity extend
Slide 15: Capital Allocation Framework
Capital Allocation Framework SUSTAINING SUPPLEMENTAL BASE CAPEX SHAREHOLDER DIVIDEND (including stripping) DISTRIBUTIONS The balance of remaining cash is available to finance further enhancement or growth opportunities. Plus at Least 30% If there is no immediate need Available Cash Flow1 for this ca
Slide 16: Supply Fundamentals Offsetting Weaker Demand In Copper and Zinc
Supply Fundamentals Offsetting Weaker Demand In Copper and Zinc Copper Zinc • Cathode market balanced for next 2 years, with • Global concentrate market in surplus; smelter potential risks to supply production returning to new normal • Global macro concerns affected demand in • Smelter bottleneck in
Slide 17: Steelmaking Coal Market
Steelmaking Coal Market • Chinese import quotas reset Steelmaking Coal Prices1 (US$/t) • Growing demand, especially in Southeast Asia The steelmaking coal price has averaged and India US$181 per tonne since January 1, 2008 ‒ Teck’s sales to India surpassed China 300 from 2018 • Raw materials pricing
Slide 18: Summary
Summary Key Priorities Transformation Growth Through Neptune Facility Cost Reduction Through Innovation: QB2/QB3 Execution Upgrade Program RACE21TM Focus on health and safety and sustainability leadership 18
Slide 19: Appendix
Appendix Teck
Slide 20: Notes
Notes Slide 5: Key Priorities 1. EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures” slides. Slide 6: Accelerating Our RACE21TM Innovation-Driven Efficiency Program 1. EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures” slides. Slide 7: QB2 Value Creation
Slide 21: Quebrada Blanca
Quebrada Blanca Photo: SAG Mill Number 1 Concrete and Rebar Placement
Slide 22: 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 23: 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 24: 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 25: 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 26: 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$693 IRR million3 with no contribut
Slide 27: QB2's Competitive Cost Position
QB2’s Competitive Cost Position Competitive Operating Cost & Capital Intensity Low Cash Cost Position • Given the exceptionally low strip ratio, consistent grade C1 Cash Cost3 & AISC4 Curve1 (US$/lb, 2023E) profile, compact site layout, and high level of automation, QB2 is expected to have attractiv
Slide 28: 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 29: 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 30: 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 31: 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 32: 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 33: 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 34: 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 35: 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 36: Notes - Appendix: Quebrada Blanca
Notes - Appendix: Quebrada Blanca Slide 22: 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 37: Notes - Appendix: Quebrada Blanca
Notes - Appendix: Quebrada Blanca Slide 26: 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 38: Strategy and Overview
Strategy and Overview Teck
Slide 39: Consistent Long-Term Strategy
Consistent Long-Term Strategy • Diversification • Long life assets • Low cost • Appropriate scale • Low risk jurisdictions 39
Slide 40: Attractive Portfolio of Long-Life Assets
Attractive Portfolio of Long-Life Assets Low risk jurisdictions 40
Slide 41: Global Customer Base
Global Customer Base Revenue contribution from diverse markets (2018) 1 41
Slide 42: 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 43: 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 44: 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 45: 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$37-39/t Un
Slide 46: Capital Expenditures Guidance
Capital Expenditures Guidance Sustaining, Major Enhancement, New Mine Development Quebrada Blanca 2 (TECK’S SHARE 2019 (TECK’S SHARE 2019 IN CAD$ MILLIONS) 2018 GUIDANCE1 IN CAD$ MILLIONS) 2018 GUIDANCE1 Sustaining QB2 Capital Expenditures $ 414 $ 1,450 Steelmaking coal2 $ 232 $ 455 Total capex, bef
Slide 47: 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 48: 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 48
Slide 49: 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 50: 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 51: Notes: Appendix – Strategy and Overview
Notes: Appendix – Strategy and Overview Slide 41: Global Customer Base 1. Gross profit before depreciation and amortization is a non-GAAP financial measure. See “Non-GAAP Financial Measures” slides. Slide 43: Disciplined Approach to M&A 1. Carmen de Andacollo gold stream transaction occurred in USD
Slide 52: Notes: Appendix – Strategy and Overview
Notes: Appendix – Strategy and Overview Slide 47: 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 53: Sustainability
Sustainability Teck
Slide 54: Focus on Sustainability Leadership
Focus on Sustainability Leadership Sustainability strategy • Sustainability reporting for 19 years Biodiversity Water • Established ambitious sustainability strategy and goals in 2010 Community • Strategy focused on developing opportunities and managing risks • Implementing a sustainability strategy
Slide 55: 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 56: 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 57: 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 90 (100th percentile) • Target to reduce freshwater 80 lowest to highest scores use at Chilean opera
Slide 58: 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 59: Lower-Risk Jurisdictions, Comprehensive Assessments
Lower-Risk Jurisdictions, Comprehensive Assessments Teck in top 3 of 50+ companies ranked by DJSI DJSI Human Rights Assessment • All operations in countries with 2019 Percentile Rankings2 well-developed mining industries: 100 Teck Canada, United States, Chile, Peru 90 (97th percentile) 80 • Robust r
Slide 60: 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 61: 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 31% 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 62: Collective Agreements
Collective Agreements OPERATION EXPIRY DATES Line Creek May 31, 2019 Elkview October 31, 2020 Fording River April 30, 2021 Antamina July 31, 2021 Highland Valley Copper September 30, 2021 Trail Operations May 31, 2022 Cardinal River June 30, 2022 January 31, 2022 Quebrada Blanca March 31, 2022 Novem
Slide 63: Notes: Sustainability
Notes: Sustainability Slide 57: Reducing Freshwater Use 1. Sustainability Accounting Standards Board Standards. https://www.sasb.org/ 2. SAM Corporate Sustainability Assessment 2018. Slide 58: Taking Action on Climate Change 1. Sustainability Accounting Standards Board Standards. https://www.sasb.or
Slide 64: Technology and Innovation
Technology and Innovation Teck
Slide 65: 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 66: RACE21
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 67: RACE21
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 68: 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 69: $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 70: 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 70
Slide 71: 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. 71
Slide 72: 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 73: Steelmaking Coal Business Unit & Markets
Steelmaking Coal Business Unit & Markets
Slide 74: Steelmaking Coal Facts
Steelmaking Coal Facts Global Coal Production1: ~7.8 billion tonnes Steelmaking Coal Production2: ~1,150 million tonnes Export Steelmaking Coal2: ~355 million tonnes Seaborne Steelmaking Coal2: • ~0.7 tonnes of steelmaking coal is used to ~315 million tonnes produce each tonne of steel3 • Up to 100
Slide 75: Steelmaking Coal Demand Growth Forecast
Steelmaking Coal Demand Growth Forecast Growth drivers: Southeast Asia and India Seaborne Steelmaking Coal Imports1 (Mt) Change 2020 vs. 2019 330 322-328 5 2 1 1 320 320 3 315 310 300 290 280 2019 SE Asia India Brazil JKT 2020, ex. Europe 2020 Europe Includes: • Southeast Asia: Growth from Indonesia
Slide 76: 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 76
Slide 77: Chinese Steelmaking Coal Imports
Chinese Steelmaking Coal Imports 2019 seaborne imports forecast: up by +6 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 36 15 26 50 28 24 600 460 19 13 40 15 20 400 440 30 60
Slide 78: 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 blast
Slide 79: 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 Nov-15 Nov-16 Nov-17 Nov-18 Nov-19 May-15 Jul-15 Sep-15 May-16 Jul-16 Sep-16 May-17 Jul-17 Sep-17 May-18 Jul-18 Sep-18 May-1
Slide 80: Chinese Scrap Use to Increase Slowly
Chinese Scrap Use to Increase Slowly EAF share in crude steel production to recover only to 2012’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% Construction 0% 50-60%
Slide 81: Steelmaking Coal Supply Growth Forecast
Steelmaking Coal Supply Growth Forecast Growth comes mostly from Australia Seaborne Steelmaking Coal Exports1 (Mt) Change 2020 vs. 2019 340 316-330 330 7 1 0.1 320 1 1 2 315 315 310 300 290 280 2019 Colombia Indonesia USA 2020, ex. Au, Australia Mozambique Russia 2020 Mo, Ru Includes: • Colombia: Gr
Slide 82: 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 82
Slide 83: Canadian & Mozambique Steelmaking Coal Exports
Canadian & Mozambique Steelmaking Coal Exports Canadian Exports1 (Mt) Mozambique Exports2 (Mt) 40 9 35 8 30 7 6 25 5 20 4 15 3 10 2 5 1 0 0 83
Slide 84: 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 85: 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 86: 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 87: 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 $194 labour, internal overtim
Slide 88: Setting Up for Strong Long-Term Cash Flows In Steelmaking Coal
Setting Up for Strong Long-Term Cash Flows In Steelmaking Coal Strip ratio increase planned in 2019 to advance clean coal expansion • Future strip ratio on par with historical average Clean Strip Ratio1 12 10 Elkview Operations driving the increase in clean coal strip ratio to advance ability 8 to p
Slide 89: Reinvesting to Maintain Productivities And Manage Costs in Steelmaking Coal
Reinvesting to Maintain Productivities And Manage Costs in Steelmaking Coal Maintaining historical dollar per tonne Sustaining Capital, Excluding sustaining investment levels Water Treatment1 ($/t) $14 2010-2016: Average spend of ~$6 per tonne1 $12 • Reinvestment in 5 shovels, 50+ haul trucks $10 $8
Slide 90: Investing In Production Capacity in Steelmaking Coal
Investing In Production Capacity in Steelmaking Coal Major enhancement projects increasing long-term Major Enhancement Capital Expenditures1,2 ($M) production capacity: • SWIFT at Fording River Operations 400 • Baldy Ridge Extension at Elkview Operations 350 • 9 Million project at Elkview Operations
Slide 91: 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 92: 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 20 75 250 250 0 200 200 50 150 150 -20 100 100 25 -40 50 50 0 0 0 -60 HCC (LHS) SHCC (LHS) HCC / SHCC spread (RHS) HC
Slide 93: ~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 • Current capacity 35 Mtpa (Nominal Mt) • ~$275 million upgrade completed 40 • Teck is largest customer at 19 Mtpa • Contract expires March 31, 2021 30 NEPTUN
Slide 94: Notes: Appendix – Steelmaking Coal
Notes: Appendix – Steelmaking Coal Slide 74: Steelmaking Coal Facts 1. Source: IEA. 2. Source: Wood Mackenzie (Long Term Outlook H2 2019). 3. Source: World Coal Association. Assumes all of the steel required is produced by blast furnace-basic oxygen furnace route. 4. Source: The Coal Alliance. Assum
Slide 95: Notes: Appendix – Steelmaking Coal
Notes: Appendix – Steelmaking Coal Slide 85: An Integrated Long Life Coal Business 1. Sites at 100% tonnes as at January 1, 2019. Source: Teck AIF. Slide 86: Long Life with Growth Potential in Steelmaking Coal 1. Subject to market conditions and obtaining relevant permits. Slide 87: Maximizing Cash
Slide 96: Copper Business Unit & Markets
Copper Business Unit & Markets
Slide 97: Global Copper Mine Production Increasing Slowly
Global Copper Mine Production Increasing Slowly Mine Production Set To Increase 1.7 Mt By 20231 Global Copper Mine Production2 (kt contained) Includes: Mine kmt 22,000 PT – Freeport (vs 2019) 450 20,000 Kamoa – Kakula 350 Quebrada Blanca 300 18,000 Quellaveco 300 16,000 Cobre Panama (vs 2019) 272 Ch
Slide 98: Copper Disruptions Return To Impact Mines
Copper Disruptions Return To Impact Mines TC/RCs Spot and BM Falling1 (US$/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 $20 -1,000 4.6% YTD Annual/Mid Year Spot -1,200 6.8% 98
Slide 99: Rapid Growth in Chinese Copper Smelter Capacity
Rapid Growth in Chinese Copper Smelter Capacity Limited domestic mine projects and lots of delays Chinese Copper Mine Growth1 +3.0 Mt of Smelting Projects in the Pipeline2 (kt) (kt blister) 400 400 2019 2020 2020 – 2023 2018/2019 2020 2020 – 2023 49 kt 61 kt 240 kt 2,030 kt 520 kt 480 kt 300 300 200
Slide 100: Copper Supply
Copper Supply Mine production rising and scrap availability falling Sanctioned Projects Since 20171 (kt) Chinese Scrap/Blister Imports Fall2 New mines commissioned will (Copper content, kt) add 2.5 Mt from 2017-2025 3,000 3,000 2,000 2,500 1,000 2,000 0 1,500 2013 2014 2015 2016 2017 2018 2019 e Bli
Slide 101: Copper Metal Stocks
Copper Metal Stocks Better than expected demand; smelter disruptions • Production cuts at Asian smelters combined with Daily Copper Prices (US$/mt) and Stocks1 (kt) lower scrap availability contributed to a drawdown $12,000 1,800 in cathode stocks 1,600 • Exchange stocks have fallen 585,000 tonnes s
Slide 102: 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 103: 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 104: 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 105: 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 106: Notes: Appendix – Copper
Notes: Appendix – Copper Slide 97: 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 107: Zinc Business Unit & Markets
Zinc Business Unit & Markets Teck
Slide 108: Refined Production Recovered from Environmental Policy Constraints
Refined Production Recovered from Environmental Policy Constraints Chinese Mine Production Flat in 20191 Chinese Refined Production Up 9% in 20192 (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 201
Slide 109: Despite Increased Production, Increased Demand from ROW Continues
Despite Increased Production, Increased Demand from ROW Continues De-stocking Continues Additional 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
Slide 110: Zinc Supply
Zinc Supply Mine production remains at risk of missing expectations in 2020 Zinc Mine Production1 (kt contained) • Global mine production missed forecast in both 2018 16,000 and 2019 ‒ 8.1% increase in mine production originally expected for 14,000 2019; now only 4.9% 12,000 ‒ Slow or delayed start-
Slide 111: 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 83 0
Slide 112: Zinc Concentrate Treatment Charges
Zinc Concentrate Treatment Charges Treatment Charges1 (USD/dmt) 350 300 250 200 150 100 50 0 Spot TC Benchmark TC 112
Slide 113: 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 decreased almost 80,000 and Stocks1,2 (kmt) tonnes in 2019 5,000 2,500 • Only 50,000 tonnes of refined zinc remaining on 4,500
Slide 114: Zinc Supply / Demand Balance
Zinc Supply / Demand Balance Zinc refined production peaks in 2022 Existing and Fully Committed Supply1 (kt) Probable Projects Sufficient To Fill Gap2 (kt) 16,000 Additional gap to 1,500 high demand Additional 15,000 gap to 1,000 base demand 14,000 500 Gap to low demand 13,000 0 2019 2020 2021 2022
Slide 115: 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 0 115
Slide 116: 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 117: 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 118: 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 119: 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 120: 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% 120
Slide 121: 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 122: 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) 122
Slide 123: 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 124: Notes: Appendix – Zinc
Notes: Appendix – Zinc Slide 108: 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 109: Increasing Demand for Zinc Metal Imports 1
Slide 125: Notes: Appendix – Zinc
Notes: Appendix – Zinc Slide 115: 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 118: Red Dog Sales Seasonality 1. Average sales from 2014 to
Slide 126: Energy Business Unit & Markets
Energy Business Unit & Markets
Slide 127: 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 127
Slide 128: 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 129: 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 2019-2022 • 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 130: GHG Emissions Intensity of Oil Sands Facilities
GHG Emissions Intensity of Oil Sands Facilities Comparing GHG intensity by oil sands facility1 (kg CO2e/bbl) Mining In Situ Source: Bloomberg, BMO Capital Markets 130
Slide 131: Best In Class Low Carbon Intensity Production
Best In Class Low Carbon Intensity Production Our blend will displace carbon intensive crudes Estimated Improvements Since 2012 Total Life Cycle Emissions Intensity (kg CO2e/bbl Production & Refining refined product – gasoline/diesel) End-User Fuel Consumption 700 U.S. Refined Average GHG Emissions
Slide 132: Best In Class Low Carbon Intensity Production cont'd
Best In Class Low Carbon Intensity Production cont’d Our blend will displace carbon intensive crudes • A superior global refinery feedstock • Improves operating efficiencies at complex refineries • Best in-class Canadian oil sands carbon intensity, including in-situ • Pushing technology for continuo
Slide 133: 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 134: 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 135: 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 136: 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 137: 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 <$23/bbl 150,000 Great start-up adjusted operating costs1 December 2018 100,000 50,000 PFT Product low GHG emissions - Jan Fe
Slide 138: Attractive Debottlenecking Opportunities at Fort Hills
Attractive Debottlenecking Opportunities at Fort Hills To be implemented in two phases Potential capacity increase of PFT Process 20 kbpd to 40 kbpd • Teck’s share of annual production could increase from 14.0 Mbpa to 15.5-17.0 Mbpa • Near term opportunities require little to no capital (phase 1) •
Slide 139: Significant EBITDA Upside Potential in Energy
Significant EBITDA Upside Potential in Energy Providing the basis for strong and steady cash flow for decades Assumptions EBITDA1 Potential – Teck’s share ($ 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 140: Teck's Energy Outlook
Teck’s Energy Outlook $141 million in EBITDA1 generated at Fort Hills in the first nine months of 2019 • Government of Alberta curtailments effective January 1, 2019 • Fort Hills: PRODUCTION ADJUSTED OPERATING COSTS2 CAPITAL 2019 • Expect to be at the low end of our • With the lower production, we e
Slide 141: Notes: Appendix – Energy
Notes: Appendix – Energy Slide 127: Energy Benchmark Pricing 1. The WTI CMA is an average of the daily settle quoted price for WTI prices for future deliveries for the trading days during a calendar month. Source: CME Group. As at January 6, 2020. 2. WCS at Hardisty: an index value determined during
Slide 142: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 143: Non-GAAP Financial Measures
Non-GAAP Financial Measures Our financial results are prepared in accordance with International Financial Reporting Standards (IFRS). This document refers to a number of Non-GAAP Financial Measures, which are not measures recognized under IFRS in Canada and do not have a standardized meaning prescri
Slide 144: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of Profit and Adjusted Profit Three months ended Three months ended (C$ 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 145: Non-GAAP Financial Measures
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 146: Non-GAAP Financial Measures
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 147: Non-GAAP Financial Measures
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 148: Non-GAAP Financial Measures
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 149: Non-GAAP Financial Measures
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 150: Non-GAAP Financial Measures
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 151: Non-GAAP Financial Measures
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 152: Non-GAAP Financial Measures
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 153: Non-GAAP Financial Measures
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 154: Non-GAAP Financial Measures
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 155: Non-GAAP Financial Measures
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 156: Non-GAAP Financial Measures
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 157: Non-GAAP Financial Measures
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) (637) Free C
Slide 158: Western Institutional Investor Conference
Western Institutional Investor Conference January 29, 2020 Don Lindsay President and Chief Executive Officer
Teck Resources — Western Institutional Investor Conference (January 2020) on 6ix