Teck Resources Limited Class A · TSX:TECK.A
Teck Resources Limited Class A — Global Metals, Mining & Steel Conference 2018
13 slides from Teck Resources Limited Class A's conference presentation, May 15, 2018
Slide 1: Global Metals, Mining & Steel Conference
Global Metals, Mining & Steel Conference Don Lindsay, President and Chief Executive Officer May 15, 2018
Slide 2: Forward Looking Information
Forward Looking Information 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 Securities Act (Ontario)
Slide 3: Forward Looking Information
Forward Looking Information Factors that may cause actual results to vary materially include, but are not limited to, changes in commodity and power prices, changes in market demand for our products, changes in interest and currency exchange rates, acts of foreign governments and the outcome of lega
Slide 4: The Right Commodities at the Right Time
The Right Commodities at the Right Time Steelmaking Coal Zinc Copper Outperforming market expectations Mine production • Average steelmaking coal price over past 10 years Structural deficit to peak in 2020 US$180/tonne; US$197/tonne in real terms1 set to continue & structural deficit • Forward curve
Slide 5: Balance Returning Cash to Shareholders and Capex With Prudent Balance Sheet Management
Balance Returning Cash to Shareholders and Capex With Prudent Balance Sheet Management Strategy Capital Allocation • Maintain current production • Significant free cash flow even at lower prices Steelmaking • Optimize assets • Cash available to fund growth projects Coal • Neptune Terminals expansion
Slide 6: Quebrada Blanca 2
Quebrada Blanca 2 Developing the next major copper producer in Chile Long Life Asset • Initial mine life 25 years using only 25% of reserves and resources1 • Further upside potential in the district Quality Project • Brownfields site, low strip ratio • Very low sustaining capital • Total costs (AISC
Slide 7: Creating Value by Advancing Growth Projects
Creating Value by Advancing Growth Projects Multiple catalysts / valuation milestones expected in 2018 and beyond Fort Hills Waneta Dam Transaction NuevaUnión • Second train of secondary • Closure of sale in Q3 2018 • Feasibility Study completion extraction ramping up; third in mid-2019 train to sta
Slide 8: Solid Financial Position
Solid Financial Position Debt Maturity Profile3 • Generated $1.6 billion in Adjusted EBITDA 1,200 1,000 Repaid in in Q1 20181 800 February US$M • ~$5.1 billion of liquidity2, with ~$1.3B in 600 400 cash + US$3 billion undrawn credit line 200 0 • Waneta Dam transaction - expected to 2042 2018 2020 20
Slide 9: Teck
Teck Strong Execution • Premier operating assets, a proven track record, and enhancing profitability at our operations. Solid Financial Position • Significant liquidity, strong cash flow and the right commodities at the right time. Disciplined Capital Allocation • Our approach balances returning cas
Slide 10: Notes
Notes Slide 4: Steelmaking Coal Price – Exceeding Expectations 1. HCC price is based on the negotiated annual benchmark price from January 1, 2008 to April 13, 2010 and the Argus Premium HCC FOB Australia assessments from April 14, 2010, in US dollars. Steelmaking coal prices for the past ten years
Slide 11: Appendix
Appendix Teck
Slide 12: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP financial measures, including those comparing our results to our diversified and North American peers, are presented to help the reader compare our performance with others in our industry. They may not have standardized meanings under IFRS, may differ from those
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of Net Debt-to-Adjusted EBITDA Ratio & Net Debt-to-Debt-Plus-Equity Ratio (A) (B) (C) (A-B+C) Twelve months ended Three months ended Three months ended Twelve months ended (C$ in millions) December 31, 2017 March 31, 2017 March 31, 2018 March 31, 2018 Adjus
Teck Resources — Global Metals, Mining & Steel Conference 2018 on 6ix