30 slides from Teck Resources Limited Class A's earnings presentation, Oct 24, 2023
Slide 1: Third Quarter 2023 Conference Call
Third Quarter 2023 Conference Call October 24, 2023 Global Metals and Mining Conference
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements Both these slides and the accompanying presentation contain certain forward- looking information and forward- looking statements as defined inapplicable securities laws (collectively referred to as forward-looking statements). These forward-looking statem
Slide 3: Jonathan Price, Chief Executive Officer
Jonathan Price Chief Executive Officer Global Metals and Mining Conference
Slide 4: Q3 2023 Highlights
Q3 2023 Highlights Advancing our value creation strategy Unlocking the value of Focusing on execution Balancing growth Progressing our industry leading and cash returns to sustainability goals copper growth shareholders • Progressing near-term • Delivered adjusted EBITDA • Liquidity of $7.0B
Slide 5: QB2 Ramp Up Continues With Strong Performance
QB2 Ramp Up Continues With Strong Performance Key Highlights in Q3 2023 • Operating consistently at 70% of design capacity at quarter end • Line 1 and Line 2 are fully commissioned and operating well, ramp up continues • Generated gross profit before D&A of $19M, in line with expectations Outlook an
Slide 6: Key 2023 Operational Guidance Updates
Key 2023 Operational Guidance Updates Copper • Highland Valley production of 100–108 kt, from 110–118 kt • Our unit cost guidance is unchanged • Capitalized stripping of $395M, from $295M Steelmaking Coal • Production of 23–23.5 Mt, from 24–26 Mt • Our unit cost guidance is unchanged Global Metals a
Slide 7: Crystal Prystai
Crystal Prystai Senior Vice President and Chief Financial Officer Global Metals and Mining Conference
Slide 8: Financial Results Q3 2023
Financial Results Q3 2023 Gross Profit before D&A Adjusted EBITDA Adjusted Diluted EPS $1,360M $1,213M $0.76 Global Metals and Mining Conference Gross profit before depreciation and amortization (gross profit before D&A) and adjusted EBITDA are non-GAAP financial measures. Adjusted diluted EPS is a
Slide 9: Financial Performance Q3 2023
Financial Performance Q3 2023 Profitability ($M) Profit before Tax Net Finance Expense D&A Adjustments Non-controllable Controllable Adjusted EBITDA $1,901 318 368 Adjusted EBITDA 458 56 (144) $1,213 (139) 56 44 (682) (119) (16) (12) 529 39 1,081 589 Global Metals and Mining Conference Adjusted EBIT
Slide 10: Copper Business Unit
Copper Business Unit Operating Metrics Q3 2023 Highlights Q3 2023 Q3 2022 FY23 • Strong copper prices year-over-year Guidance Price (LME Cash) US$/lb 3.77 3.49 • Higher copper production and sales year-over-year Production kt 72 66 320-365 • QB2 production of 18.3kt of copper in concentrate and Sale
Slide 11: Zinc Business Unit
Zinc Business Unit Operating Metrics Q3 2023 Highlights Q3 2023 Q3 2022 FY23 • Profitability impacted by lower zinc prices, partially offset Guidance by higher zinc premiums on refined zinc sales Price (LME Cash) US$/lb 1.10 1.48 • Strong shipping season and higher sales at Red Dog Production (zinc
Slide 12: Steelmaking Coal Business Unit
Steelmaking Coal Business Unit Operating Metrics Q3 2023 Highlights Q3 2023 Q3 2022 FY23 • Steelmaking coal prices rose through Q3 and remain strong Guidance Realized price US$/t 229 304 • Production impacted by planned maintenance outages at two operations, and intermittent plant reliability challe
Slide 13: Strong Financial Position
Strong Financial Position Balancing growth with financial resilience and cash returns to shareholders Strong Balance Sheet Cash Returns to Shareholders Liquidity1 Net Debt to Adjusted EBITDA2 Credit Ratings • Paid $451M in dividends YTD, including $65M in Q3 2023 $7.0B 1.0x Investment grade No Note
Slide 14: Jonathan Price, Chief Executive Officer
Jonathan Price Chief Executive Officer Global Metals and Mining Conference
Slide 15: Continuing our Pursuit of Value
Continuing our Pursuit of Value Focus on value creation Drive organic growth Engage a number of counterparties for shareholders through development of our on proposals regarding the copper growth pipeline steelmaking coal business Separation Objectives • Full separation of Teck’s base metals and ste
Slide 16: Progressing Pipeline of Near-Term Development Projects
Progressing Pipeline of Near-Term Development Projects Key Milestones Mine Life Extensions • Highland Valley (2028 to 2040): Completed feasibility study in Q3 2023 and EA submitted in October 2023 Industry-Leading Copper Growth Portfolio • San Nicolás: Continued stakeholder engagement on the MIA-R p
Slide 17: Unrivalled Copper Growth Opportunities
Unrivalled Copper Growth Opportunities Multiple pathways to grow Potential Annual CuEq Production Growth (kt; reporting basis; first 5 years average annual production by asset) Current Producing Portfolio Near-Term Development Pipeline Investing Today For Longer-Term Growth Suite of options diversif
Slide 18: Responsible Value Creation
Responsible Value Creation Capitalizing on strong demand in the transition to a low-carbon economy Unlock the value of Focus on industry leading execution copper growth Long-term sustainable Balance growth Sustainability shareholder and cash returns to shareholders leadership value Global Metals and
Slide 19: Appendix
Appendix Global Metals and Mining Conference
Slide 20: Production Guidance
Production Guidance Copper Zinc Previous Current Previous Current Previous Current Previous Current 2022 2023 2023 2024-2026 2024-2026 2022 2023 2023 2024-2026 2024-2026 Actual Guidance Guidance1 Guidance Guidance1 Actual Guidance Guidance1 Guidance Guidance1 Copper2,3,4 Zinc in concentrate2,3,5 Hig
Slide 21: Unit Cost and Sales Guidance
Unit Cost and Sales Guidance Unit Costs Copper2 Zinc3 Steelmaking Coal Previous Current Previous Current Previous Current 2022 2023 2023 2022 2023 2023 2022 2023 2023 (US$/lb) Actual Guidance Guidance1 (US$/lb) Actual Guidance Guidance1 (C$/tonne) Actual Guidance Guidance1 Total cash unit costs 2.02
Slide 22: Capital Expenditures Guidance
Capital Expenditures Guidance Sustaining and Growth Capital Capitalized Stripping Previous Current Current 2022 2023 2023 2022 Previous 2023 Actual Guidance Guidance1 Actual 2023 Guidance Guidance1 Sustaining Capitalized Stripping Copper2 $ 297 $ 510 $ 510 Copper $ 336 $ 295 $ 395 Zinc 244 150 150 Z
Slide 23: Water Treatment Guidance
Water Treatment Guidance Steelmaking Coal Capital Expenditures Related to Water Treatment1 Previous Current Previous Current Previous Current Long-Term Long-Term 2022 2023 2023 2023-2024 2023-2024 Guidance Guidance3 Actual Guidance Guidance2 Guidance Guidance2 (C$/tonne) (C$/tonne) Sustaining capita
Slide 24: Sensitivities
Sensitivities Sensitivity of our Annualized Profit Attributable to Shareholders and EBITDA1 Estimated Effect on Profit Attributable Estimated Effect 2023 Mid-Range to Shareholders3 on EBITDA3 Production Estimates2 Changes ($ in millions) ($ in millions) US$ exchange C$0.01 $ 57 $ 92 Copper (kt) 342.
Slide 25: Settlement Pricing Adjustments
Settlement Pricing Adjustments Simplified Settlement Pricing Adjustment Model for Base Metals (Pre-tax settlement pricing adjustment in C$M) Quarterly Outstanding at Outstanding at Pricing September 30, 2023 June 30, 2023 Adjustments Mlbs US$/lb Mlbs US$/lb C$M Copper 189 $ 3.74 126 $ 3.77 (4) Zinc
Slide 26: Endnotes
Endnotes Slide 13: Strong Financial Position Slide 24: Sensitivities 1. As at October 23, 2023. 1. As at October 23, 2023. The sensitivity of our annualized profit(loss) attributable to shareholders and EBITDA to changes in the 2. As at September 30, 2023. Excludes lease liabilities, short-term loan
Slide 27: Non-GAAP Ratios
Non-GAAP Financial Measures and Ratios Global Metals and Mining Conference
Slide 28: 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 29: Reconciliation of Segment EBITDA
Reconciliation of Segment EBITDA Reconciliation between Segmented Profit and Segmented EBITDA Steelmaking 3 months ending September 30, 2023 Copper Zinc Coal Corporate Total Profit (Loss) before Taxes $M 15 87 564 (77) 589 Net finance expense $M 159 14 28 (162) 39 Depreciation and amortization $M 12
Slide 30: Third Quarter 2023 Conference Call
Third Quarter 2023 Conference Call October 24, 2023 Global Metals and Mining Conference