Teck Resources Limited Class A · TSX:TECK.A
Teck Resources Limited Class A — Q1 2025 Earnings Presentation
40 slides from Teck Resources Limited Class A's earnings presentation, Apr 24, 2025
Slide 1: First Quarter 2025 Conference Call
FIRST QUARTER 2025 CONFERENCE CALL April 24, 2025
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: Jonathan Price, President and Chief Executive Officer
JONATHAN PRICE President and Chief Executive Officer 3
Slide 4: Value Creation Through Our Resilient Business
VALUE CREATION THROUGH OUR RESILIENT BUSINESS Fundamentals for our commodities remain robust Macro factors continue to drive demand for our key commodities: Global Manufacturing Industrial Policy Electrification Digital and Development and National Security Infrastructure Economy Our resilient busin
Slide 5: Closely Monitoring Potential Impact of Tariffs
CLOSELY MONITORING POTENTIAL IMPACT OF TARIFFS No material impact on sales from tariffs expected Concentrate sales are diversified and to non-US customers1 Europe Americas (ex-US) Europe Americas (ex-US) 20% 12% 20% 31% Copper Zinc China China Asia (ex-China) 32% Asia (ex-China) 22% 36% 27% Product
Slide 6: Q1 2025 Highlights
Q1 2025 HIGHLIGHTS Strong quarterly EBITDA and resilient balance sheet Adjusted EBITDA* more than doubled to $927M; profit from continuing operations before taxes of $450M QB completion testing achieved – independent verification of design, construction and capacity to operate at design levels Stron
Slide 7: Continued Commitment to Safety and Sustainability
CONTINUED COMMITMENT TO SAFETY AND SUSTAINABILITY • Strong safety performance in Q1 2025 Teck-Controlled High Potential Incident (HPI) Performance1 (per 200,000 hours worked) ‒ High Potential Incident (HPI) frequency rate Including QB2 Project Excluding QB2 Project remained low at 0.05 • Released ou
Slide 8: QB Ramp Up Continues – Completion Testing Achieved
QB RAMP UP CONTINUES – COMPLETION TESTING ACHIEVED Confirms robustness of design, construction and operational capability Ramp-Up Progress Tailings Management Facility (TMF) Development Design Rates Ramp-Up Achieved Completed • Challenging weather impacted the material movement Integrated Operating
Slide 9: QB Plant Performance Continues to Improve
QB PLANT PERFORMANCE CONTINUES TO IMPROVE 2025 guidance unchanged Throughput1 Recovery QB Guidance for 20252 Adjusted to exclude extended and unplanned shutdowns Design recovery: 86-92% Design throughput: 143ktpd 131 136 ~143 86 ~87 230-270kt 120 125 83 84 83 copper production 108 expected at the lo
Slide 10: Growing Copper Production with Improving Margins
GROWING COPPER PRODUCTION WITH IMPROVING MARGINS Increase in copper production at lower costs in 2025 Copper Production Net Cash Unit Cost* Copper EBITDA Margin* Expansion (kt, contained copper) (US$/lb) (%, from operations) +10-27% 12-25% increase improvement 33% 42% 51% 2025 2023 2024 490- Consens
Slide 11: Value-Accretive Growth
VALUE-ACCRETIVE GROWTH Significant growth expected in 2025; path to ~800 ktpa before end of the decade Value-Accretive Near-Term Copper Projects ~800 ktpa Quebrada Blanca Optimization & Debottlenecking (Cu-Mo-Ag | Brownfield | Chile | 60%) ~45-120 kt increase expected Optimizes value from a Tier 1 a
Slide 12: Well-Funded Near-Term Projects Progressing as Planned
WELL-FUNDED NEAR-TERM PROJECTS PROGRESSING AS PLANNED Potential sanction decisions in 2025 Highland Valley Zafranal San Nicolás QB Optimization Mine Life Extension and Debottlenecking (Cu-Mo | Brownfield | British Columbia | 100%) (Cu-Au | Greenfield | Arequipa | 80%) (Cu-Zn Ag-Au | Greenfield | Zac
Slide 13: Crystal Prystai, Chief Financial Officer
CRYSTAL PRYSTAI Executive Vice President and Chief Financial Officer 13
Slide 14: Strong Q1 2025 Financial Performance
STRONG Q1 2025 FINANCIAL PERFORMANCE • Adjusted EBITDA* more than doubled to $927M, Q1 2025 vs. Q1 2024 primarily driven by higher copper and zinc prices and copper sales volumes Gross profit before D&A* $929M • Strong performance across our established +87% operations Gross profit $536M • Increased
Slide 15: Significant Increase in Q1 2025 Profitability
SIGNIFICANT INCREASE IN Q1 2025 PROFITABILITY Profitability ($M) Profit (Loss) from Continuing Operations before Taxes Net Finance Expense D&A Adjustments Non-Controllable Controllable Adjusted EBITDA* 15 $927 102 16 94 273 60 412 Adjusted (42) EBITDA* $409 129 103 450 345 (64) 196 (235) Adjusted EB
Slide 16: Copper Segment
COPPER SEGMENT Strong performance from established operations – margin improved >10%4 Q1 2025 Performance Gross Profit Gross Profit Margin Copper Copper Copper Net Cash Before Depreciation Before Depreciation Realized Price Production Sales Revenue Unit Cost* & Amortization* & Amortization* Q1 2025A
Slide 17: Zinc Segment
ZINC SEGMENT Significant profitability improvement, including at Trail Operations Q1 2025 Performance Gross Profit Gross Profit Before Margin Before Zinc Red Dog Zinc Red Dog Refined Zinc Refined Zinc Net Cash Depreciation & Depreciation & Realized Price Production Zinc Sales Production Sales Revenu
Slide 18: Strong Balance Sheet Provides Resilience
STRONG BALANCE SHEET PROVIDES RESILIENCE Enables continued value creation in current market conditions Net Cash* Position Strong Credit Ratings Debt Repayments1 (US$M) As at March 31, 2025 As at April 23, 2025 Outstanding note maturities are long dated $764M Investment 294/year 142 Grade 242 180 190
Slide 19: Disciplined Capital Allocation Framework
DISCIPLINED CAPITAL ALLOCATION FRAMEWORK Commitment to return 30-100% of available cash flow to shareholders* Balancing value accretive growth with cash returns to shareholders and a strong balance sheet Cash Flow Sustaining Base Supplemental from Operations Capital Dividend Shareholder after intere
Slide 20: Strong Track Record of Cash Returns to Shareholders
STRONG TRACK RECORD OF CASH RETURNS TO SHAREHOLDERS Completed >50% of our $3.25B in authorized share buybacks Historical Cash Returns to Shareholders ($M) Additional Cash Returns to Shareholders ~$5.4B returned to shareholders since 20201 $1.5B2 in authorized share buybacks remaining from $3.25B pro
Slide 21: Well-Funded Near-Term Projects
WELL-FUNDED NEAR-TERM PROJECTS Post-sanction capital guidance unchanged Value-Accretive Near-Term Copper Projects Total Estimated Attributable Estimated Post-Sanction Capital Post-Sanction Capital Highland Valley Mine Life Extension (Cu-Mo | Brownfield | Canada | 100%) 100% ownership US$1.3-1.4B1 US
Slide 22: Illustrative Accretive Growth on Per-Share Metrics
ILLUSTRATIVE ACCRETIVE GROWTH ON PER-SHARE METRICS Compound impact of copper growth and authorized share buybacks Stabilized QB and Share Buyback Program +34-51% QB Ramp Up +54% 2023 2024 2026E Long-Term (Est) Copper Production Increasing (kt Cu) 296 446 550-620 800+ number of Shares Outstanding1 sh
Slide 23: Jonathan Price, President and Chief Executive Officer
JONATHAN PRICE President and Chief Executive Officer 23
Slide 24: Focus on Our Value Creation Priorities
FOCUS ON OUR VALUE CREATION PRIORITIES Balancing growth and cash returns to shareholders Ramp-up QB to steady state, including the molybdenum plant Grow copper production, reduce unit costs, and improve margins Continue to execute on the record authorized share buyback Progress value-accretive coppe
Slide 25: Responsible Growth and Value Creation
RESPONSIBLE Driven by our purpose and values, we will grow to become one of the world’s leading providers of GROWTH AND responsibly-produced critical minerals. VALUE CREATION Balancing growth with cash returns to shareholders Our strategy is focused around four pillars: METALS FOR THE VALUE-DRIVEN C
Slide 26: Appendix
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Slide 27: Short-Term Copper Market Fundamentals
SHORT-TERM COPPER MARKET FUNDAMENTALS Concentrate tightness putting financial pressure on smelters • Demand for concentrate from both traders and Global Smelter Capacity Growth1 (kt) copper smelters is exceptionally strong 600 2022- 2024 2025-2027 Possible projects 2,200kt 3,700kt 2,300kt 500 • Some
Slide 28: Long-Term Copper Market Fundamentals
LONG-TERM COPPER MARKET FUNDAMENTALS Supply remains constrained; electrification still drives global growth • Copper is the linchpin of global electrification, as Long Term Demand Growth, Copper vs. Electricity1 the most effective way to move electrons around (kt copper) • Expect a more electricity-
Slide 29: Short-Term Zinc Market Fundamentals
SHORT-TERM ZINC MARKET FUNDAMENTALS Not enough concentrate available to meet smelter needs • Global zinc inventories (concentrate and metal) Annual Treatment Charges Settle at Historic Low2 (US$/t) are extremely low relative to historical norms Annual Settlement Spot TC − Spot treatment charges also
Slide 30: Long-Term Zinc Market Fundamentals
LONG-TERM ZINC MARKET FUNDAMENTALS An improving demand story, with a lack of new supply options • Global mine production flat since 2012 Zinc Mine Production Growth Stagnant for a Decade (kt) • Uncommitted projects list thinnest since 2007 12,000 − Most projects <100kt/yr with <13yr mine life 9,000
Slide 31: Copper Guidance
COPPER GUIDANCE Expect higher copper production and lower net cash unit costs and capex in 2025 Copper Production1,2 (kt) Net Cash Unit Costs*,1,3 (US$/lb) Quebrada Blanca Highland Valley Antamina (22.5%) Carmen de Andacollo 550-620 530-600 2.20 490-565 45-55 1.87 45-55 455-525 1.65-1.95 446 45-55 9
Slide 32: Zinc Guidance
ZINC GUIDANCE Reflects declining grades at Red Dog – advancing studies for mine life extension Zinc Production1,2 (kt) Net Cash Unit Costs*,1,3 (US$/lb) Red Dog Sales1 (kt) Red Dog Antamina (22.5%) 54 616 0.55 525-575 0.45-0.55 60 465-525 95-105 400-445 0.39 55-65 335-375 25-35 35-45 45-55 556 430-4
Slide 33: Cost of Sales
COST OF SALES 2024 Copper Cost of Sales (C$) Zinc Cost of Sales (C$) Transportation Depreciation & Amortization 5% 10% Operating Costs Operating Costs 65% Transportation 38% 11% Depreciation & Amortization 30% Royalties 15% Raw Material Purchases 26% Copper Operating Costs (%) Zinc Operating Costs (
Slide 34: Sensitivities
SENSITIVITIES Estimated Effect of Changes on our Annualized Profitability1 ($M) Estimated Effect on 2025 Mid-Range Adjusted Profit (Loss) Estimated Effect on Production Estimates2 Attributable to Shareholders3 Adjusted EBITDA*, 3 (kt) Changes ($M) ($M) US$ exchange C$0.01 $ 21 $ 48 Copper 527.5 US$0
Slide 35: Settlement Pricing Adjustments
SETTLEMENT PRICING ADJUSTMENTS Simplified Settlement Pricing Adjustment Model Total Reported Settlement Pricing Adjustments (Pre-tax settlement pricing adjustment in C$M) (Pre-tax settlement pricing adjustment in C$M) 300 Outstanding at Outstanding at Quarterly Pricing 230 March 31, 2025 December 31
Slide 36: Endnotes
ENDNOTES SLIDE 5: CLOSELY MONITORING POTENTIAL IMPACT OF TARIFFS SLIDE 18: STRONG BALANCE SHEET PROVIDES RESILIENCE 1. Based on tonnes delivered in 2024. 1. As at March 31, 2025. SLIDE 6: Q1 2025 HIGHLIGHTS SLIDE 20: STRONG TRACK RECORD OF CASH RETURNS TO SHAREHOLDERS 1. As at March 31, 2025. 1. Jan
Slide 37: Endnotes
ENDNOTES SLIDE 32: COPPER GUIDANCE 1. As April 23, 2025. See Teck’s Q1 2025 press release for further details. 2. We include 100% of production from our Quebrada Blanca and Carmen de Andacollo mines in our production volumes, even though we do not own 100% of these operations, because we fully conso
Slide 38: Non-GAAP Financial Measures and Ratios
NON-GAAP FINANCIAL Our financial results are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International MEASURES Accounting Standards Board. This presentation includes reference to certain non-GAAP financial measures and non-GAAP ratios, which are n
Slide 39: Copper EBITDA Margin Reconciliation
COPPER EBITDA MARGIN RECONCILIATION Reconciliation between copper segmented profit, revenues and EBITDA margin C$M, copper segment 2023 2024 Profit (Loss) Before Taxes from Continuing Operations 524 303 Net finance expense 56 664 Depreciation and amortization 553 1,356 EBITDA 1,133 2,323 EBITDA 1,13
Slide 40: First Quarter 2025 Conference Call
FIRST QUARTER 2025 CONFERENCE CALL April 24, 2025