Teck Resources Limited Class A · TSX:TECK.A
Teck Resources Limited Class A — Non-Deal Roadshow (June 2020)
156 slides from Teck Resources Limited Class A's roadshow presentation, Jun 29, 2020
Slide 1: Investor Meetings
Investor Meetings June 29, 2020
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 strategies and transition to seawater or low-quality water on commercially reasonable terms without impacting production objectives; our ability to successfully implement our technology and innovation strategy; and the performance of new technologies in a
Slide 4: COVID-19 Response: Five Pillar Approach
COVID-19 Response: Five Pillar Approach Employee Communities & Business Communication Prevention Support Public Health Continuity • Nothing is more important than the health and the safety of our employees, contractors and the communities where we operate • Following the most up-to-date direction fr
Slide 5: Sustainability Leadership
Sustainability Leadership Teck’s Performance on Top ESG Ratings • “A” rating since 2013 • Ranked in the • Top-ranked mining (scale of CCC – AAA) 100th percentile company 2019 World • Top ranked diversified & North American Indices • Outperforming all 10 of our largest industry peers metals mining co
Slide 6: Quality Operating Assets in Stable Jurisdictions
Quality Operating Assets in Stable Jurisdictions STEELMAKING COAL COPPER Elk Valley Mines Antamina, Highland Valley, Carmen de Andacollo • Long life • Long life • High quality steelmaking coal • Competitive cost • Low carbon intensity • Low carbon intensity • ~$26 billion of Adjusted • Strong growth
Slide 7: Long-Term Strategy: Copper Growth from Steelmaking Coal and Zinc
Long-Term Strategy: Copper Growth from Steelmaking Coal and Zinc We are implementing a copper growth strategy, financed by strong cash flows from steelmaking coal and zinc COPPER STEELMAKING COAL • Building QB2: long-life, low-cost • Strong long-term cash flow operation with major expansion • Growin
Slide 8: Our Key Priorities
Our Key Priorities • QB2 is a long-life, low-cost operation with significant expansion potential • Rebalances our portfolio over time • QB has potential to become a top five global copper producer • Our Neptune facility upgrade secures a long term, low cost and reliable supply chain for our steelmak
Slide 9: QB2 Value Creation
QB2 Value Creation Delivers on Copper Growth Strategy • Rebalances Teck's portfolio over time to make the contribution from copper similar to steelmaking coal • World class, low cost copper opportunity in an excellent geopolitical jurisdiction • First production expected in Q2 2022 • Large, long lif
Slide 10: Neptune Facility Upgrade
Neptune Facility Upgrade • Continue to advance the facility upgrade project; major equipment deliveries remain on track • To date, COVID-19 related issues have not substantially impacted works on the critical path • Expect the new ship loader, stacker / reclaimer and single dumper replacement to be
Slide 11: Elkview Plant Expansion Completed
Elkview Plant Expansion Completed • $135 million investment • Increases annual capacity by 2 million tonnes, from 7 million tonnes to 9 million tonnes • ~$160 million potential annual EBITDA1 Elkview Operations 11
Slide 12: RACE21 EBITDA Improvements
RACE21TM Our innovation-driven business transformation program • Achieved $160 million1 in annualized EBITDA2 RACE21TM Potential Future Path to Value improvements as of the end of 2019 ‒ Exceeded our initial target of $150 million • In the short term, reduced some deployment $1 billion EBITDA2 Impro
Slide 13: Cost Reduction Program
Cost Reduction Program • In Q4 2019: - Achieved ~$210 million of capital and operating reductions, exceeding our target of $170 million - Increased our total targeted reductions to ~$610 million of previously planned spending through the end of 2020, vs. the previous target of $500 million • On Apri
Slide 14: Strong Financial Position
Strong Financial Position Solid Liquidity Investment Grade Credit Rating • C$525 million of cash as at April 20, 2020 • US$4.0 billion revolving credit facility is committed Proposed Refinancing of Near-Term Maturities to Q4 2024 • US$550 million 10-year 3.9% senior unsecured notes ‒ No cash-flow ba
Slide 15: Significant Free Cash Flow Growth Potential Following the Current Investment Phase
Significant Free Cash Flow Growth Potential Following the Current Investment Phase Analyst Consensus Estimates of Analyst Consensus Estimates of Teck’s Capital Expenditures (C$M)1 Teck’s Free Cash Flow (C$M)1 $2,253 Development Capex2 Sustaining Capex $4,399 Consensus Estimates3 $3,746 $3,468 $752 $
Slide 16: Summary
Summary • Quality operating assets in stable jurisdictions • Copper growth strategy - funded and being implemented • Continuing to advance our key priorities to generate long term value for shareholders: 1. QB2 Project 2. Neptune Facility Upgrade 3. RACE21TM 4. Cost Reduction Program Significant pot
Slide 17: Appendix
Appendix Teck
Slide 18: Notes
Notes Slide 6: Quality Operating Assets in Stable Jurisdictions 1. Adjusted EBTIDA generated from October 1, 2008 to March 31, 2020. This reflects the change in accounting policy to capitalize stripping from January 1, 2013. Waste rock stripping costs incurred in the production phase of a surface mi
Slide 19: COVID-19 Response
COVID-19 Response = | a | ig Teck
Slide 20: Supporting Global and Community Priorities
Supporting Global and Community Priorities $20-million fund to support COVID-19 response building on our existing programs Supporting healthcare Supporting international relief Support for women, COVID-19 providers and infection and regional organizations to Indigenous peoples, other Support control
Slide 21: COVID-19 Response: Prevention and Employee Support
COVID-19 Response Prevention and Employee Support Employee Prevention Support • Remote work implemented where feasible • Detailed internal protocols and resources: mandatory declaration for visitors, Take 5 • Reduced on-site crews at sites to support survey, COVID-19 Response Protocol, Contact physi
Slide 22: COVID-19 Response: Communities, Public Health, Business Continuity
COVID-19 Response Communities & Public Health; Business Continuity Communities & Business Public Health Continuity • $20 million COVID-19 support fund launched, • All Teck operated sites continue to operate including Teck Community Response Fund with strong prevention protocols in place • One millio
Slide 23: COVID-19 Response In Steelmaking Coal
COVID-19 Response In Steelmaking Coal COVID19 Take 5 / To Limit the Spread Completed Pass Rate Issues Resolved Teck Inspections 30,000+ 97.7% 559 Type of Audits Auditors • “Take 5” symptom screening (21,000+) • Health & Safety • Supervisors • Joint Safety Team Committees • Facility cleaning and disi
Slide 24: COVID-19 Response In Steelmaking Coal (cont.)
COVID-19 Response In Steelmaking Coal (cont.) COVID19 Take 5 / To Limit the Spread Selected Employee Audit Comments • Sites brought in additional COVID-19 auditors Top Responses for “What is Working during shutdowns Around COVID-19 Controls?” • Sites have auditors at gate completing • COVID-19 aware
Slide 25: COVID-19 Expenditures
COVID-19 Expenditures Accounting Treatment Q1 2020 COVID-19 Expenditures: • Related to capital projects: expensed $44 million before tax as incurred in “Other Operating Expense” Operations • Related to production: expensed as $7M incurred in “Cost of Sales”; Will not be QB2 included in inventory val
Slide 26: Quebrada Blanca
Quebrada Blanca Photo: Concentrator Grinding Area
Slide 27: QB2 Execution Update
QB2 Execution Update1 Progress Workforce2 29% ~7,800 Overall Overall Safety Expenditures 31.6mil hrs 0.05 0.17 US$1.3 billion LTIF TRIF As at March 31, 2020 Concrete Earthworks +35% +50% 27
Slide 28: QB2 Capital Estimate
QB2 Capital Estimate Updated April 1, 2020 Current Estimate1 Capital Cost (inc. escalation) US$5.2B To-go April 1, 2020 US$3.9B Exchange Rate 775 CLP:USD • Engineering, Contract Formation and Procurement approaching 100% Contingency (incl.) and in close out ~US$400M • Includes actual contract and pu
Slide 29: QB2 Updated Capital Estimate
QB2 Updated Capital Estimate Exchange Rate, Permitting and Social Unrest Key Drivers Key Change Drivers • Exchange rate • Permitting delays • Social unrest • Road maintenance • Schedule extension • Design modifications • Contractor performance 29
Slide 30: QB2 Capital Estimate: Exchange rate sensitivity and funding
QB2 Capital Estimate Exchange rate sensitivity and funding Capital Sensitivity to Exchange Rate Teck's Equity Contributions • Exposure to CLP on ‘to go’ capital is ~69%1 • Teck's equity contributions are ~US$880 million4 • FX has ranged from 726 to 879 since Oct 20192 going forward with no contribut
Slide 31: Potential Impact of COVID-19 on QB2
Potential Impact of COVID-19 on QB2 • Project construction activities remain on hold - Maintaining limited workforce - Advancing procurement, manufacturing and other activities • Extensive planning continues for remobilization • Not currently possible to predict a remobilization date • Cost/schedule
Slide 32: QB2 Project
QB2 Project Executing on a world class development asset Highlights Location Vast, long life deposit in favourable jurisdiction Chile Peru Very low strip ratio Bolivia Arica y Arica Parinacota Region Low all-in sustaining costs (AISC)1 Cerro Tarapacá Colorado Collahuasi Region Potential to b
Slide 33: QB2 Rebalances Teck's Portfolio
QB2 Rebalances Teck’s Portfolio Delivers on copper growth strategy • Rebalances Teck's portfolio over time to make the Teck's Annual Copper Production (kt Cu) contribution from copper similar to steelmaking coal 587 • On a consolidated basis copper production is 116 doubled • On an attributable basi
Slide 34: QB2's Competitive Cost Position
QB2’s Competitive Cost Position Competitive Operating Cost & Capital Intensity Low Cash Cost Position • Given the exceptionally low strip ratio, consistent grade C1 Cash Cost2 & AISC3 Curve1 (US$/lb, 2023E) profile, compact site layout, and high level of automation, QB2 is expected to have attractiv
Slide 35: Vast, Long Life Deposit at Quebrada Blanca
Vast, Long Life Deposit at Quebrada Blanca QB2 Uses Less than 25% of R&R1 Extension Potential • Resource exclusive of Reserve increased 40% from Reserve and Resource Tonnage (Mt) 2017 to the 2018 Reserve and Resource Tonnage1 • Initial 28 year mine life processes <25% of the 2018 +40% Reserve and Re
Slide 36: QB2 Project Economics Comparison
QB2 Project Economics Comparison 7 8 2016 FS Reserve Sanction (Reserves) Case1 Case2 Mine Life Years 25 28 28 Strip Ratio First 5 Full Years 0.40 0.16 0.44 LOM3 0.52 0.41 0.70 C1 Cash Cost4 First 5 Full Years US$/lb $1.28 $1.29 $1.28 LOM3 US$/lb $1.39 $1.47 $1.37 AISC5 First 5 Full Years US$/lb $1.3
Slide 37: 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 Silver Silver Cu Mo Grade Cu Mo Grade RESERVES Mt Grade % Grade % RESERVES Mt 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 38: ENAMI Interest in Quebrada Blanca
ENAMI Interest in Quebrada Blanca 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
Slide 39: 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 recorded within • Total shareholde
Slide 40: Notes - Appendix: Quebrada Blanca
Notes - Appendix: Quebrada Blanca Slide 27: QB2 Execution Update 1. As at March 31, 2020. 2. Number of active workers on site versus employees on payroll. Slide 28: QB2 Capital Estimate – Updated April 1, 2020 1. On a 100% go forward basis from January 1, 2019 including escalation and excluding work
Slide 41: Notes - Appendix: Quebrada Blanca
Notes - Appendix: Quebrada Blanca Slide 36: QB2 Project Economics Comparison 1. Based on go-forward cash flow from January 1, 2017. Based on all equity funding structure. 2. Based on go-forward cash flow from January 1, 2019. Based on optimized funding structure. 3. Life of Mine annual average figur
Slide 42: Strategy and Overview
Strategy and Overview Teck
Slide 43: Consistent Long-Term Strategy
Consistent Long-Term Strategy • Diversification • Long life assets • Low cost • Appropriate scale • Low risk jurisdictions 43
Slide 44: Attractive Portfolio of Long-Life Assets
Attractive Portfolio of Long-Life Assets Low risk jurisdictions 44
Slide 45: Global Customer Base
Global Customer Base Revenue contribution from diverse markets (2019) 1 1 45
Slide 46: 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 47: 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 Royalty Sandstorm Royalty $206M Project Corridor Package, Package3 /Nueva Union, Wintering Hil
Slide 48: 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 49: Strong Track Record of Returning Cash to Shareholders
Strong Track Record of Returning Cash to Shareholders ~$6.7 billion returned from January 1, 2003 to March 31, 2019 Dividends • $4.4 billion since 2003, representing ~30% of free cash flow1 Share Buybacks • $2.3 billion since 2003, representing ~16% of free cash flow1 49
Slide 50: Tax-Efficient Earnings in Canada
Tax-Efficient Earnings in Canada ~C$3.4 billion in available tax pools at December 31, 2019 • Includes: ‒ $2.6 billion in net operating loss carryforwards ‒ $0.5 billion in Canadian Development Expenses (30% declining balance p.a.) ‒ $0.3 billion in allowable capital loss carryforwards • Applies to
Slide 51: Share Structure & Principal Shareholders
Share Structure & Principal Shareholders Teck Resources Limited at December 31, 2019 VOTING SHARES HELD PERCENT RIGHTS Class A Shareholdings Temagami Mining Company Limited 4,300,000 55.4% SMM Resources Inc (Sumitomo) 1,469,000 18.9% Other 1,996,503 25.7% 7,765,503 100.0% Class B Shareholdings Temag
Slide 52: Notes: Appendix – Strategy and Overview
Notes: Appendix – Strategy and Overview Slide 45: Global Customer Base 1. Gross profit before depreciation and amortization is a non-GAAP financial measure. See “Non-GAAP Financial Measures” slides. Slide 47: Disciplined Approach to M&A 1. Carmen de Andacollo gold stream transaction occurred in USD
Slide 53: Sustainability
Sustainability Teck
Slide 54: Focus on Sustainability Leadership
Focus on Sustainability Leadership Ambitious Sustainability Goals in Eight Strategic Themes Health and Safety Climate Change Responsible Production Our People Water Tailings Management Communities and Biodiversity and Indigenous Peoples Reclamation Full list of strategic priorities and goals appear
Slide 55: Sustainability Leadership
Sustainability Leadership Aligned with Leading External Standards and Practices In the process of joining: See the full list on our Memberships and Partnerships page (https://www.teck.com/responsibility/approach-to-responsibility/policies-and-commitments/memberships-&-partnerships/) 55
Slide 56: Health and Safety
Health and Safety 2019 Performance • 85% of employees trained in new hazard Incident Frequency (per 200,000 hours worked) identification program against a target of 50% 0.5 0.4 • Safety performance in 2019 0.3 - 16% reduction in High-Potential Incidents 0.2 - 18% decrease in Lost-Time Disabling 0.1
Slide 57: Climate Action
Climate Action Positioning for Low-Carbon Economy Scope 1+2 emissions per copper equivalent ranking1 Well positioned for a (tCO2e/t CuEq, 2017) Low-Carbon Economy Among lowest GHG intensity miners globally on a copper-equivalent basis GHG intensity for steelmaking coal and copper production among lo
Slide 58: Climate Action
Climate Action Key Activities for Short-Term Goals Reduce the carbon Procure 50% of Accelerate the adoption of intensity of our our electricity demands zero-emissions alternatives operations by in Chile from clean for transportation by by energy by 2025 and displacing the 33% 2030 100% by 2030 equiv
Slide 59: Climate Action: Path to Carbon Neutrality
Climate Action Path to Carbon Neutrality Apply Prioritize Opportunities and Deliver Cost Competitive Reductions Decarbonization Emissions Framework sources Select abatement options Renewable 2020-2030: Avoid Power supply energy Target readily available, cost Mitigation Hierarchy Electrification comp
Slide 60: Climate Action
Climate Action Cleaner, Safer Vehicles Initiative • 27 of the world’s leading mining companies and OEMs collaborating in a non-competitive space via ICMM • Accelerating the development of a new generation of mining vehicles with less: o GHG emissions o Diesel particulate matter o Chance of collision
Slide 61: Water Management
Water Management Long Term Strategic Priorities and Goals Implement innovative water management and water treatment solutions to protect water quality downstream of all our operations. Transition to seawater or low-quality water sources for all operations in water-scarce regions by 2040. 61
Slide 62: Water Quality in the Elk Valley
Water Quality in the Elk Valley Advancing Innovative Technologies Elk Valley Water Quality Plan developed with government, Indigenous Peoples and communities to address water quality challenges Saturated Rock Fill Tank-Based Plants Nitrate Reduction 62
Slide 63: Elk Valley Water Treatment
Elk Valley Water Treatment Clear Path Forward for Improving Water Quality Millions of Litres per Day Total investment in water treatment of $640 to $690 million1 from 2020-2024 1. From 2021 to 2024, we also plan to spend ~$85 million in capital on source control and calcite management and ~$90 milli
Slide 64: Tailings Management
Tailings Management Our Approach • Management and emergency Teck has comprehensive systems and response aligned with Towards procedures in place based on 6 levels Sustainable Mining Protocols of protection: • Dam Safety Inspection reports and special review by external experts 1 Surveillance 2 Inter
Slide 65: Further Strengthening Tailings Safety and Security
Further Strengthening Tailings Safety and Security 1. Special review by external experts • Confirmed no immediate or emerging issues that could result in failure • Confirmed Teck tailings management practices industry leading 2. Supporting industry-wide improvements • ICMM-UN-PRI Global Tailings Rev
Slide 66: Relationships with Communities and Indigenous Peoples, Respecting Human Rights
Relationships with Communities and Indigenous Peoples, Respecting Human Rights • Agreements in place at all mining operations within or adjacent to Indigenous Peoples’ territories • $225 million to Indigenous businesses in 2019 through procurement • 72% of total local employment in 2019 • $19 millio
Slide 67: Inclusion and Diversity
Inclusion and Diversity • Non-Discrimination and Anti-Harassment: well-established codes and policies, conducting unconscious bias training • Workplace Flexibility: family-friendly policies and programs in place, expanding remote working policy • Gender: focused on hiring more women at all levels of
Slide 68: Sustainability Performance and Compensation
Sustainability Performance and Compensation • Compensation program is linked to sustainability and health and safety performance through individual, department and company-wide objectives. • Objectives related to climate change, communities and Indigenous Peoples, tailings and water management and o
Slide 69: Questions and Further Information
Questions and Further Information ESG Resources for Investors • Sustainability reporting for 19 years in Core accordance with the Global Reporting Initiative (GRI) Standards and G4 Mining and Metals Sector Disclosures • Sustainability Accounting Standards Board (SASB) Index published in March 2020 •
Slide 70: Collective Agreements
Collective Agreements OPERATION EXPIRY DATES 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 November 20, 2022 September 3
Slide 71: Notes: Appendix – Sustainability
Notes: Appendix – Sustainability Slide 57: Climate Action 1. Source: Barclays Research, Teck. 71
Slide 72: Technology and Innovation
Technology and Innovation Teck
Slide 73: RACE21: Renew, 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 74: RACE21: Connect, 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 75: 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 76: 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. 76
Slide 77: Steelmaking Coal Business Unit & Markets
Steelmaking Coal Business Unit & Markets
Slide 78: Steelmaking Coal Market
Steelmaking Coal Market • Healthy demand supported coal pricing Steelmaking Coal Prices1 (US$/t) prior to COVID-19 outbreak 300 • Recovery in Chinese demand and positive price arbitrage support seaborne imports ‒ Import restrictions remain a drag 250 • Weakness in ex. China steel markets 200 outstri
Slide 79: 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 80: Steelmaking Coal Demand Growth Forecast
Steelmaking Coal Demand Growth Forecast Near-term outlook under pressure Seaborne Steelmaking Coal Imports1 (Mt) Change 2020 vs. 2019 330 320 315 8 310 6 4 300 2 1 291-298 296 1 290 280 2019 Europe JKT India Brazil Others 2020, ex- China 2020 China Includes: • Europe: Cautiously starts to reopen eco
Slide 81: Indian Steelmaking Coal Imports
Indian Steelmaking Coal Imports Mid- & long-term imports supported by secular demand and government 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 81
Slide 82: Chinese Steelmaking Coal Imports
Chinese Steelmaking Coal Imports Q1 2020 seaborne imports up by +8.5 Mt Chinese Crude Steel Production (CSP), Hot Metal Production (HMP) and Coal Production (Mt)1 Chinese Coking Coal Imports2 (Mt) 1200 520 80 70 1000 500 16 60 33 26 34 15 800 480 50 28 24 19 13 600 460 40 15 20 30 60 400 440 48 20 4
Slide 83: 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 80 • Capacity: crude steel 8 Mt • Status: Construction started in 2017; 2 of 5 blast 60
Slide 84: 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 May-15 Jul-15 May-16 Jul-16 May-17 Jul-17 May-18 Jul-18 May-19 Jul-19 Jan-15 Mar-15 Jan-16 Mar-16 Jan-17 Mar-17 Jan-18 Mar-1
Slide 85: 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 Lower than in Other Countries China Steel Use By Sector in 20181 (%) (2000-2019)2 100% 81% 80% 69% 56% 60% 43% 41% 35% 40% 20% Others Construction 20% 15-25% 50-60% 0% Tur
Slide 86: Steelmaking Coal Supply Forecast to Shrink
Steelmaking Coal Supply Forecast to Shrink COVID-19 and market driven supply response Seaborne Steelmaking Coal Exports1 (Mt) Change 2020 vs. 2019 320 314 3 1 1 1 309 8 310 298-302 1 300 290 280 2019 Russia Mozambique Australia Supply others 2020, ex. USA USA Canada 2020 & Cad Includes: • Australia:
Slide 87: 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 87
Slide 88: Canadian & Mozambique Steelmaking Coal Exports
Canadian & Mozambique Steelmaking Coal Exports Canadian Exports1 (Mt) Mozambique Exports2 (Mt) 40 9 35 8 30 7 25 6 5 20 4 15 3 10 2 5 1 0 0 88
Slide 89: 2nd Largest Seaborne Steelmaking Coal Supplier
2nd Largest Seaborne Steelmaking Coal Supplier Competitively positioned to supply steel producers worldwide Sales Distribution CHINA 2013: ~30% EUROPE 2017: ~15% 2013: ~15% INDIA 2017: ~20% 2019: ~10% 2013: ~5% 2019: ~15% 2017: ~10% AMERICAS 2019: ~15% ~5% ASIA EXCL. CHINA & INDIA 2013: ~40% 2017: ~
Slide 90: An Integrated Long Life Coal Business
An Integrated Long Life Coal Business ELK VALLEY British Columbia Prince Rupert Elco Quintette • 925 million tonnes1 of Ridley Alberta Fording River reserves support ~27 Mt of Terminal Prince George Edmonton annual production for many Greenhills years Elkford Cardinal River Line Creek • Geographical
Slide 91: Long Life with Growth Potential in Steelmaking Coal
Long Life with Growth Potential in Steelmaking Coal Annual Production Capacity1 (Million tonnes) 27 million tonnes of annual 30 production capacity in 2021 29 Structure and beyond 28 Transition 27 Moving Past Transition: 26 • Coal Mountain closed and production has 25 been replaced with new mining a
Slide 92: Setting Up for Strong Long-Term Cash Flows In Steelmaking Coal
Setting Up for Strong Long-Term Cash Flows In Steelmaking Coal Executing on four pillars to transform Targeting long term cost of cost structure and optimize margins sales below ~$60 per tonne • Strip ratio decreasing over next four years ‒ Future strip ratio on par with historical average • Strateg
Slide 93: Reinvesting to Maintain Productivities In Steelmaking Coal
Reinvesting to Maintain Productivities In Steelmaking Coal Maintaining historical dollar per Sustaining Capital, Excluding Water Treatment1 ($/t) tonne sustaining investment levels $14 $12 2010-2016: Average spend of ~$6 per tonne1 $10 • Reinvestment in 5 shovels, 50+ haul trucks $8 2017-2024: Avera
Slide 94: Investing In Production Capacity in Steelmaking Coal
Investing In Production Capacity in Steelmaking Coal Major enhancement projects increasing Major Enhancement Capital Expenditures1,2 ($M) long-term production capacity: • 9 Million project at Elkview (EVO 9M) 400 • Castle at Fording River 350 • Baldy Ridge extension at Elkview 300 250 2010-2016: Ave
Slide 95: 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 96: Quality and Basis Spreads
Quality and Basis Spreads Impact Teck’s average realized steelmaking coal prices HCC Seaborne / China Domestic Prices and HCC / SHCC Prices and Spread1 (US$/t) Spread2 (US$/t) 350 100 350 120 100 300 300 80 75 250 60 250 40 200 20 200 50 150 0 150 (20) 100 (40) 100 25 (60) 50 50 (80) 0 (100) 0 0 Sea
Slide 97: West Coast Port Capacity
West Coast Port Capacity NEPTUNE COAL TERMINAL • Planned capacity growth to >18.5 Mtpa Port Capacity • 100% ownership of coal capacity (Nominal Mt) • Current coal capacity 12.5 Mtpa 40 • Significant investment to upgrade and rejuvenate RIDLEY TERMINALS 30 • Current capacity 18 Mtpa • Teck contract:
Slide 98: Notes: Appendix – Steelmaking Coal
Notes: Appendix – Steelmaking Coal Slide 78: Steelmaking Coal Market 1. Source: Argus, Teck. Plotted to June 22, 2020. Slide 79: 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 produ
Slide 99: Notes: Appendix – Steelmaking Coal
Notes: Appendix – Steelmaking Coal Slide 90: An Integrated Long Life Coal Business 1. Sites at 100% tonnes as at December 31, 2019. Source: Teck AIF. Slide 91: Long Life with Growth Potential in Steelmaking Coal 1. Subject to market conditions and obtaining relevant permits. Slide 92: Setting Up for
Slide 100: Copper Business Unit & Markets
Copper Business Unit & Markets
Slide 101: Supply Fundamentals at Risk Due to Weaker Copper Demand
Supply Fundamentals at Risk Due to Weaker Copper Demand • Weaker cathode demand globally has put downward pressure on copper prices • Government closures of mines, ports and distribution have kept concentrate market tight and are impacting cathode supply • Concentrate market tightness into 2020 • Sc
Slide 102: 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) 480 20,000 Kamoa – Kakula 350 Quebrada Blanca 300 18,000 Quellaveco 300 16,000 Cobre Panama (vs 2019) 272 Ch
Slide 103: Copper Disruptions Return To Impact Mines
Copper Disruptions Return To Impact Mines TC/RCs Spot and BM Falling1 (US$/lb) Disruptions (kt)2; $120 2005 2007 2009 2011 2013 2015 2017 2019 $110 0 $100 $90 -200 $80 $70 -400 $60 -600 $50 2.8% $40 YTD -800 2.7% $30 3.6% $20 4.0% -1,000 Annual/Mid Year Spot -1,200 103
Slide 104: Rapid Growth in Chinese Copper Smelter Capacity
Rapid Growth in Chinese Copper Smelter Capacity Limited and delayed domestic mine projects Chinese Copper Mine Growth1 +3.0 Mt of New Smelting Capacity2 (kt) (kt blister) 400 400 2021 2022 2023 2018/2019 2020 2020 – 2023 183kt 10 kt 21 kt 2,030 kt 520 kt 480 kt 300 300 200 200 100 100 0 0 104
Slide 105: Copper Supply
Copper Supply Mine production rising and scrap availability falling Sanctioned Projects Since 20171 (kt) Chinese Scrap/Blister Imports Fall2 New mines commissioned will (Copper content, kt) add 2.3 Mt from 2017-2025 3,000 2,500 2,000 2,000 1,000 1,500 0 2013 2014 2015 2016 2017 2018 2019 2020e 1,000
Slide 106: Copper Market
Copper Market Raw materials weigh on downstream production Tightness in Scrap Market Supporting Copper Price1 • Demand for raw materials and mine 2,000 disruptions due to COVID keeping concentrate demand high RMB/Mt 1,000 ‒ Mine production cuts over 500 kt - vs. smelter cuts of ~200 kt (1,000) 2-Jan
Slide 107: Copper Metal Stocks
Copper Metal Stocks Raw material shortages increase cathode demand • Exchange stocks have fallen 95,000 tonnes since Daily Copper Prices (US$/mt) and Stocks1 (kt) March 2020, now equivalent to 8.2 days of global $12,000 1,800 consumption 1,600 $10,000 • SHFE stocks increased ~265,000 tonnes after 1,
Slide 108: Long Life and Stable Assets in Copper
Long Life and Stable Assets in Copper Antamina Highland Valley Carmen de Andacollo Quebrada Blanca • Q1 2020 production of • Q1 2020 production of • Q1 2020 production of • Q1 2020 production of 22,800 tonnes copper, 27,100 tonnes copper 17,400 tonnes copper 3,300 tonnes copper 25,100 tonnes zinc •
Slide 109: Cost Discipline and Cash Flow Focus in Copper
Cost Discipline and Cash Flow Focus in Copper Productivity Focused on Minimizing Capital • Focus on asset management and cross • Essential water, tailings and regulatory site sharing projects drive sustaining capital • Robust continuous improvement requirements pipeline a key driver of margins • Nea
Slide 110: Major Growth and Life Extension Projects in Copper
Major Growth and Life Extension Projects in Copper Focus remains on QB2 construction, with other projects slowed Quebrada Blanca • Focus is on QB2 and construction re-start • QB2: 316 kt of CuEq production for first 5 years1 - Doubles copper production with low strip ratio and AISC of US$1.38/lb cop
Slide 111: Notes: Appendix – Copper
Notes: Appendix – Copper Slide 102: 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
Slide 112: Zinc Business Unit & Markets
Zinc Business Unit & Markets Teck
Slide 113: Despite Decreasing Supply, Pressure on Mines to Produce Continues
Despite Decreasing Supply, Pressure on Mines to Produce Continues • COVID-19 and poor financials resulting in numerous mine closures, eliminating significant production in 2020 • Smelters continue to produce metal, tightening the concentrate market and reducing treatment charges • Chinese manufactur
Slide 114: Low Prices Limit Growth in Chinese Mine Production
Low Prices Limit Growth in Chinese Mine Production, While Smelter Production Continues to Increase Chinese Mine Production Up 3% in 20201 Chinese Refined Production Up 15% Since 20182 (kt Contained) (kt Contained) 5,000 7,000 6,500 4,500 6,000 4,000 5,500 3,500 5,000 4,500 3,000 4,000 2,500 3,500 2,
Slide 115: Increased Demand for Imported Metal Continues
Despite Increased Production in China, Increased Demand for Imported Metal Continues De-stocking Continues Additional Zinc Metal Chinese Stocks at Record Lows1,2 (kt) Required to Fill the Gap3 (kt) 1,600 1,600 1,400 1,400 1,200 1,170 1,221 1,193 1,200 1,000 1,000 800 767 797 800 652 627 600 600 503
Slide 116: Zinc Supply
Zinc Supply Mine production remains at risk of declining further in 2020 • Chinese mine production was expected to recover in 2020, Zinc Mine Production1 (kt contained) after environmental policy decreased production over the last 16,000 two years - No increase forecast in 2020 now as low zinc price
Slide 117: Low Prices and High Treatment Charges Halting Return of Small Chinese Zinc Mines
Low Prices and High Treatment Charges Halting Return of Small Chinese Zinc Mines Estimated Chinese Zinc Mine Growth Changes in Mine Production Since Q1 20182 Rarely Achieved1 (Kmt Contained) New Mines China Mines ROW Mines Change 600 1,000 0 400 360 392 350 -1,000 270 300 250 237 200 200 180 -2,000
Slide 118: Zinc Concentrate Treatment Charges
Zinc Concentrate Treatment Charges Treatment Charges1 (USD/dmt) 350 300 250 200 150 100 50 0 Spot TC Benchmark TC 118
Slide 119: Zinc Market
Zinc Market Raw materials shortages and improving demand support prices Steel Demand in China Supporting Zinc Price1 • Demand for raw materials and mine disruptions due to COVID-19 keeping concentrate demand high Operating Rates % 110 80 ‒ Mine production growth in 2020 now forecast 50 to decline wi
Slide 120: Zinc Metal Stocks
Zinc Metal Stocks Consecutive deficits decreasing zinc inventories Daily Zinc Prices1,2 (US$/mt) • Deficits over past 5 years have driven down stocks, with terminal stocks at only 2.1 days at the beginning and Stocks1,2 (kmt) of 2020 5,000 2,500 4,500 • LME refined zinc stocks have almost doubled si
Slide 121: 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 0 121
Slide 122: Integrated Zinc Business
Integrated Zinc Business Red Dog Trail • Q1 2020 production of 128,400 tonnes • Q1 2020 production of 78,700 tonnes zinc and 23,300 tonnes lead refined zinc and 19,100 tonnes refined lead • Operations continue at normal levels with • Operations continue at normal levels with travel restrictions and
Slide 123: Cost Discipline and Cash Flow in Zinc
Cost Discipline and Cash Flow in Zinc Productivity Focused on Minimizing Capital • Focus on asset management and cross • Essential water, tailings and regulatory site sharing projects drive sustaining capital • Robust continuous improvement requirements pipeline a key driver of margins • Near term h
Slide 124: Red Dog Sales Seasonality
Red Dog Sales Seasonality • Operates 12 months Zinc Sales 1 (%) • Ships ~ 4 months 40% 34% 30% 30% • Shipments to inventory in Canada 21% 15% 20% and Europe; Direct sales to Asia 10% • ~65% of zinc sales in second half 0% of year Q1 Q2 Q3 Q4 • ~100% of lead sales in second half Lead Sales1 (%) of ye
Slide 125: Red Dog Net Cash Unit Cost Seasonality
Red Dog Net Cash Unit Cost Seasonality Significant quarterly variation Red Dog Net Cash Unit Costs1 (US$/lb) 0.60 0.40 0.20 - Q1 Q2 Q3 Q4 • Seasonality of Red Dog unit costs largely due to lead sales during the shipping season • Zinc is a by-product credit at Antamina and accounted for in the Copper
Slide 126: Red Dog in Bottom Quartile of Zinc Cost Curves
Red Dog in Bottom Quartile of Zinc Cost Curves Almost 35 Percent of Zn Mines at Risk of Closing at Current Price Total Cash + Capex Cost Curve 20201 (US¢/lb) 200 2020 Costs Based on Current Prices Current Spot LME Price 180 160 140 120 100 80 60 40 20 RED DOG 0 0% 25% 50% 75% 100% 126
Slide 127: Red Dog Extension Project
Red Dog Extension Project Long Life Asset • Aktigiruq exploration target of 80-150 Mt @ 16-18% Zn + Pb1 • Anarraaq Inferred Resource2: 19.4 Mt @14.4% Zn, 4.2% Pb Quality Project • Premier zinc district • Significant mineralized system • High grade Stable Jurisdiction • Operating history • ~12 km fro
Slide 128: Notes: Appendix – Zinc
Notes: Appendix – Zinc Slide 114: Low Prices Limit Growth in Chinese Mine Production, While Smelter Production Continues to Increase 1. Source: Data compiled by Teck based on information from BGRIMM, CNIA, Antaike. 2. Source: Data compiled by Teck based on information from BGRIMM, CNIA, Antaike. Sli
Slide 129: Energy Business Unit & Markets
Energy Business Unit & Markets
Slide 130: Energy Benchmark Pricing
Energy Benchmark Pricing Calendar NYMEX WTI Price1 , WTI/WCS Basis Differential at Hardisty2 and WTI/WCS Basis Differential at the US Gulf Coast3 (US$/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 Diff
Slide 131: Fort Hills is A Modern Oil Sands Mine
Fort Hills is A Modern Oil Sands Mine Production @ 100% • Higher quality partially de-carbonized (kbpd) PFT product (lower GHG emissions) 250 De-bottleneck potential 200 Best monthly • Currently operating on a single train, production rate (201 kbpd) with production at approximately 150 90 kbpd (100
Slide 132: Canada is a Leader in ESG
Canada is a Leader in ESG The world benefits from Fort Hills low carbon intensity product during transition to renewables Yale’s Environmental Performance Index World Oil Producers Of Top 10 Oil Reserve Countries Ranked By Corruption and Volume1 80 60 40 20 0 Canada should be a supplier of choice to
Slide 133: Best In Class Low Carbon Intensity Production
Best In Class Low Carbon Intensity Production Our Fort Hills blend can displace carbon intensive crudes Total Life Cycle Emissions Intensity Estimated Improvements Since 2012 (kg CO2e/bbl refined product – gasoline/diesel) Production & Refining End-User Fuel Consumption GHG Emissions Intensity (kg C
Slide 134: Fort Hills Blend Widely Accepted In Market
Fort Hills Blend Widely Accepted In Market A preferred feedstock and supplier of choice 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 30 Kbpd Our sales mix provides diverse mar
Slide 135: Export Capacity Needed To Meet Global Demand
Export Capacity Needed To Meet Global Demand New pipelines starting to progress towards a clearer line of sight Near term (2019-2021): Western Canada Supply & Markets1 (Mbpd) • Canadian export capacity lagging Reliant on crude by rail 2019-2022 7.5 • Reliant on rail (400-500 Kbpd) 7.0 Pipeline devel
Slide 136: Notes: Appendix – Energy
Notes: Appendix – Energy Slide 130: 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 June 23, 2020. 2. WCS at Hardisty: an index value determined during t
Slide 137: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 138: Non-GAAP Financial Measures
Non-GAAP Financial Measures Our financial results are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. This document refers to a number of Non-GAAP Financial Measures which are not measures recognized under IFRS
Slide 139: Non-GAAP Financial Measures
Non-GAAP Financial Measures Total cash unit costs – Total cash unit costs for our copper and zinc operations includes adjusted cash costs of sales, as described above, plus the smelter and refining charges added back in determining adjusted revenue. This presentation allows a comparison of total cas
Slide 140: Reconciliation of Profit (Loss) and Adjusted Profit
Non-GAAP Financial Measures Reconciliation of Profit (Loss) and Adjusted Profit Three months ended Three months ended (C$ in millions) March 31, 2020 March 31, 2019 Profit (loss) attributable to shareholders $ (312) $ 630 Add (deduct): Asset impairment 474 - COVID-19 costs 22 - Environmental costs (
Slide 141: Reconciliation of Basic EPS to Adjusted Basic EPS
Non-GAAP Financial Measures Reconciliation of Basic Earnings (Loss) Per Share to Adjusted Basic Earnings (Loss) Per Share Three months ended Three months ended (Per share amounts) March 31, 2020 March 31, 2019 Basic earnings (loss) per share $ (0.57) $ 1.11 Add (deduct): Asset impairment 0.87 - COVI
Slide 142: Reconciliation of Diluted EPS to Adjusted Diluted EPS
Non-GAAP Financial Measures Reconciliation of Diluted Earnings (Loss) Per Share to Adjusted Diluted Earnings Per Share Three months ended Three months ended (Per share amounts) March 31, 2020 March 31, 2019 Basic earnings (loss) per share $ (0.57) $ 1.10 Add (deduct): Asset impairment 0.87 - COVID-1
Slide 143: Reconciliation of Net Debt to Adjusted EBITDA Ratio
Non-GAAP Financial Measures Reconciliation of Net Debt to Adjusted EBITDA Ratio (A) (B) (C) (A+B+C) Twelve months ended Three months ended Three months ended Twelve months ended (C$ in millions) December 31, 2019 March 31, 2019 March 31, 2020 March 31, 2020 Profit (loss) $ (588) $ 644 $ (311) $ (1,5
Slide 144: Reconciliation of Net Debt to Adjusted EBITDA Ratio (cont.)
Non-GAAP Financial Measures Reconciliation of Net Debt to Adjusted EBITDA Ratio (cont.) (A) (B) (C) (A+B+C) Twelve months ended Three months ended Three months ended Twelve months ended (C$ in millions) December 31, 2019 March 31, 2019 March 31, 2020 March 31, 2020 Total debt at period end (F) $ 4,8
Slide 145: 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) March 31, 2020 March 31, 2019 Profit (loss) $ (311) $ 644 Finance expense net of finance income 47 54 Provision for (recovery of) income taxes (69) 339 Depreciation and amo
Slide 146: 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) March 31, 2020 March 31, 2019 Gross profit $ 398 $ 1,042 Depreciation and amortization 378 373 Gross profit before depreciation and amortization $ 77
Slide 147: Reconciliation of Gross Profit Margins Before Depreciation
Non-GAAP Financial Measures Reconciliation of Gross Profit (Loss) Margins Before Depreciation Three months ended Three months ended (C$ in millions) March 31, 2020 March 31, 2019 Revenue Steelmaking coal (E) $ 1,023 $ 1,552 Copper (F) 570 630 Zinc (G) 608 712 Energy (H) 176 212 Total $ 2,377 $ 3,106
Slide 148: 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) March 31, 2020 March 31, 2019 Cost of sales as reported $ 777 $ 826 Less: Transportation costs (242) (240) Depreciation and amortization (175) (183) Invent
Slide 149: Copper Unit Cost Reconciliation
Non-GAAP Financial Measures Copper Unit Cost Reconciliation Three months ended Three months ended (C$ in millions, except where noted) March 31, 2020 March 31, 2019 Revenue as reported $ 570 $ 630 By-product revenue (A) (77) (74) Smelter processing charges (B) 37 43 Adjusted revenue $ 530 $ 599 Cost
Slide 150: Zinc Unit Cost Reconciliation (Mining Operations)
Non-GAAP Financial Measures Zinc Unit Cost Reconciliation (Mining Operations)1 Three months ended Three months ended (C$ in millions, except where noted) March 31, 2020 March 31, 2019 Revenue as reported $ 608 $ 712 Less: Trail Operations revenues as reported (452) (471) Other revenues as reported (
Slide 151: Zinc Unit Cost Reconciliation (Mining Operations) - Continued
Non-GAAP Financial Measures Zinc Unit Cost Reconciliation (Mining Operations)1 - Continued Three months ended Three months ended (C$ in millions, except where noted) March 31, 2020 March 31, 2019 Payable pounds sold (millions) (E) 251.3 259.9 Per unit amounts (C$/lb) Adjusted cash cost of sales (D/E
Slide 152: Energy Operating Netback Reconciliations
Non-GAAP Financial Measures Energy Operating Netback, Bitumen & Blended Bitumen Price Realized Reconciliations Three months ended Three months ended (C$ in millions, except where noted) March 31, 2020 March 31, 2019 Revenue as reported $ 176 $ 212 Less: Cost of diluent for blending (97) (73) Non-pro
Slide 153: Energy Operating Netback Reconciliations - Continued
Non-GAAP Financial Measures Energy Operating Netback, Bitumen & Blended Bitumen Price Realized Reconciliations - Continued Three months ended Three months ended (C$ in millions, except where noted) March 31, 2020 March 31, 2019 Per barrel amounts (C$) Bitumen price realized1 (A/B) $ 23.12 $ 48.42 Cr
Slide 154: Reconciliation of Coal Business Unit Adjusted EBITDA
Non-GAAP Financial Measures Reconciliation of Coal Business Unit Adjusted EBITDA October 1, 2008 to (C$ in millions) March 31, 2020 Gross Profit $ 19,405 Add back: Depreciation and amortization 7,304 Gross profit, before depreciation and amortization $ 26,709 Deduct: Other costs (717) Adjusted EBITD
Slide 155: Reconciliation of Free Cash Flow
Non-GAAP Financial Measures Reconciliation of Free Cash Flow 2003 to (C$ in millions) Q1 2020 Cash Flow from Operations $46,866 Debt interest and finance charges paid (5,574) Capital expenditures, including capitalized stripping costs (25,964) Payments to non-controlling interests (NCI) (641) Free C
Slide 156: Investor Meetings
Investor Meetings June 29, 2020