Teck Resources Limited Class A · TSX:TECK.A
Teck Resources Limited Class A — Global Metals and Mining Conference 2024
27 slides from Teck Resources Limited Class A's conference presentation, Apr 24, 2024
Slide 1: Investor Presentation
Investor Presentation April 24, 2024 Global Metals and Mining Conference 1
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements Both these slides and the accompanying oral presentation contain certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to as forward-looking statements). These statements relate
Slide 3: Value Creation Strategy
Value Creation Strategy Capitalizing on strong demand in the transition to a low-carbon economy Maximize long-term sustainable shareholder value Focus on Unlock the value of Balance growth Sustainability excellence in industry leading and cash returns leadership operations and copper growth to share
Slide 4: A Leading Canadian Resource Company
A Leading Canadian Resource Company Responsibly providing metals essential for global development and the energy transition Our Purpose Copper Zinc 1 To provide essential Top 10 copper producer, Largest net zinc miner resources the world operating in the Americas globally is counting on to make life
Slide 5: Full Sale of the Steelmaking Coal Business
Full Sale of the Steelmaking Coal Business • Announced the sale of steelmaking coal assets (EVR) with a majority stake to Glencore, and minority stakes to Nippon Steel Corporation (NSC) and POSCO • NSC and POSCO transactions closed on January 3, 2024 − NSC acquired 20% interest in EVR in exchange fo
Slide 6: Strong Copper Market Fundamentals
Strong Copper Market Fundamentals In the short term, concentrate tightness is moving to metals Annual Production Losses1 (Mt) • 2023 global mine production below market expectations by >2.0 Mt Actual Production Annualized Loss Lost Production • Net mine growth in last 5 years ~1.2 Mt vs. guidance of
Slide 7: Our Priorities
Our Priorities Complete sale of steelmaking coal - minority stake sale to Nippon Steel and POSCO complete; regulatory approvals underway on majority sale to Glencore Drive safe operational performance across the portfolio, ensuring we deliver on our market commitments Consistent performance of QB at
Slide 8: Completed All Major Construction at QB
Completed All Major Construction at QB Demobilization substantially advanced and ramp-up continuing Outlook and Guidance Q1 2024 Performance Complete port construction by end of Q1 2024 Successfully loaded our first vessel of QB concentrate Achieved using the shiploader Ramp-up molybdenum plant in Q
Slide 9: Disciplined Approach to Copper Growth
Disciplined Approach to Copper Growth Adapting our approach to project development • Undertaking a comprehensive review of the QB2 project delivery, utilizing third-party expertise • Building capability and capacity through investment in our people and processes • Next project sanctioning expected i
Slide 10: Near-Term Development Options
Near-Term Development Options A balanced portfolio of greenfield and brownfield projects in well understood jurisdictions Highland Valley Mine Life Extension (Cu-Mo | Brownfield | British Columbia) Extending life of mine of Canada’s largest base metals mine Mine life extension of a highly productive
Slide 11: Unrivalled Copper Growth Opportunities
Unrivalled Copper Growth Opportunities Multiple pathways to value creation Potential Annual CuEq Production Growth1 (kt; reporting basis; first 5 years average annual production by asset) Current Operating Assets Near-Term Development Options Investing Today For Longer-Term Growth Suite of options d
Slide 12: Disciplined Capital Allocation Framework
Disciplined Capital Allocation Framework Commitment to return 30-100% of available cash flow to shareholders* Balancing growth with cash returns to shareholders while maintaining a strong balance sheet Sustaining Base Supplemental Cash Flow Capital Dividend Shareholder Distributions including stripp
Slide 13: Considerations for Use of Transaction Proceeds
Considerations for Use of Transaction Proceeds Ensures Teck is well-positioned to unlock the full potential of our base metals business Maintain investment grade credit metrics through the cycle – targeting net debt to adjusted EBITDA* of 1.0x net debt to Reduce EBITDA* gross debt of to 1.0x maintai
Slide 14: Strong Balance Sheet and Shareholder Returns
Strong Balance Sheet and Shareholder Returns Strong balance sheet Balancing growth with shareholder returns Liquidity1 Cash Position1 Share Buybacks $7.1B $1.6B • Board authorized up to $500 million share buyback in February 2024, of which $80 million was completed in Q1 2024 Dividends • Paid quarte
Slide 15: Value Creation Strategy Underpinned by Sustainability
Value Creation Strategy Underpinned by Sustainability Key Sustainability Achievements Key Goals and Recent Progress • Industry-leading sustainability assurance, with all Teck-operated base Climate Change metal operations awarded the relevant Mark verifications Target for net zero Scope 1 & 2 emissio
Slide 16: Value Creation Strategy
Value Creation Strategy Capitalizing on strong demand in the transition to a low-carbon economy Focus on Unlock the value of excellence in industry leading operations and copper growth projects Long-term sustainable Balance growth Sustainability shareholder and cash returns to shareholders leadershi
Slide 17: Appendix
Appendix Global Metals and Mining Conference
Slide 18: Zinc Market Turns on Mine Closures
Zinc Market Turns on Mine Closures Mine closures are driving current concentrate tightness Drivers of 2024 Concentrate Deficit1 (kt) • Low zinc prices force mine closures starting last year 14,000 Mine supply 13,662 weakened 8% • Raw material shortages and weak economics impacting smelter 13,500 250
Slide 19: Copper Guidance
Copper Guidance Guidance includes Quebrada Blanca Production1,2 (kt) Net Cash Unit Costs*,1,3 (US$/lb) Copper in Concentrate 550-620 550-620 530-600 1.85-2.25 465-540 50-60 50-60 45-55 1.87 38-45 80-90 90-100 85-95 1.56 85-95 297 140-160 130-150 120-140 Carmen de Andacollo 112-125 40 Antamina (22.5%
Slide 20: Zinc Guidance
Zinc Guidance Production1,2 (kt) Red Dog Zinc in Concentrate Sales1 (kt) Net Cash Unit Costs*,1,3 (US$/lb) Zinc in Concentrate 644 565-630 555-615 104 Antamina (22.5%) 45-60 0.55-0.65 95-105 465-525 0.55 55-65 400-445 35-45 0.44 85 Red Dog 540 520-570 460-510 410-460 365-400 50-60 2023 2024E 2025E 2
Slide 21: Steelmaking Coal Guidance
Steelmaking Coal Guidance Sales and Production1 (Mt) Capital Expenditures1 (C$M) Sales Production 1,452 ~1,350-1,750 1,167 15 10.0 24.0-26.0 24.0-26.0 24.0-26.0 24.0-26.0 550 9.0 23.7 30 -750 8.0 7.0 5.9 6.0-6.4 649 6.0 5.0 Growth 617 800 4.0 Capitalized Stripping -1,000 3.0 778 2.0 520 1.0 Sustaini
Slide 22: Cost of Sales 2023
Cost of Sales 2023 Copper Steelmaking Coal Cost of Sales (C$) Operating Costs Cost of Sales (C$) Operating Costs D&A Labour 25% Labour 26% 20% Contractors & Consultants 17% Contractors & Consultants 17% D&A Operating Royalties Operating Supplies & Parts 15% 24% Costs Operating Supplies & Parts 14% 1
Slide 23: Sensitivities
Sensitivities Estimated Effect of Changes on our Annualized Profitability1 ($M) Estimated Effect on Profit Attributable Estimated Effect 2024 Mid-Range to Shareholders3 on EBITDA*, 3 Production Estimates2 Changes ($ in millions) ($ in millions) US$ exchange C$0.01 $ 54 $ 92 Copper (kt) 502.5 US$0.01
Slide 24: Endnotes
Endnotes Slide 6: Strong Copper Market Fundamentals Slide 20: Zinc Guidance 1. Source: Wood Mackenzie. Q1 quarterly forecasts 2018–2024. 1. As at April 24, 2024. See Teck’s Q1 2024 press release for further details. 2. Source: Wood Mackenzie, McKinsey, Teck. 2. We include 22.5% of production from An
Slide 25: Non-GAAP Financial Measures and Ratios
Non-GAAP Financial Measures and Ratios Global Metals and Mining Conference
Slide 26: Non-GAAP Financial Measures and Ratios
Non-GAAP Financial Measures and Ratios Our financial results are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. This presentation includes reference to certain non-GAAP financial measures and non-GAAP ratios,
Slide 27: For further information, please contact our investor relations team
For further information, please contact our investor relations team or visit Teck.com investors@teck.com 1.877.759.6226 or 604.699.4257 Global Metals and Mining Conference
Teck Resources — Global Metals and Mining Conference 2024 on 6ix