Teck Resources Limited Class A · TSX:TECK.A
Teck Resources Limited Class A — Global Metals and Mining Conference 2022
32 slides from Teck Resources Limited Class A's conference presentation, Nov 29, 2022
Slide 1: Investor Presentation
Investor Presentation November 29, 2022 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: Copper Growth: Our investment proposition
Copper Growth Our investment proposition Industry Rebalance portfolio Balance growth Leadership leading of high-quality assets and cash returns in sustainability Long-term copper growth to low-carbon metals to shareholders sustainable • QB2 expected to double • Proven operational • Investment grade
Slide 4: About Teck
About Teck Our Purpose To provide essential resources the world is counting on to make life better while caring for the people, communities, and land that we love. Copper Zinc Steelmaking Coal A significant copper One of the largest The world’s second largest producer in the Americas producers of mi
Slide 5: Sustainability Leadership
Sustainability Leadership Committed to the highest standards of safety and sustainability Material Sustainability Focus Ratings Health and Safety • 90% reduction in HPIF from 2010 to 2021 Top-ranked mining company DJSI World & North American Indices Climate Change • Commitment to net-zero operations
Slide 6: Our Climate Change Strategy
Our Climate Change Strategy Starting from a strong position Metals and Competitive Reducing our Support emissions minerals for a low carbon operational reduction in our low-carbon operations carbon footprint value chain economy • Rebalancing portfolio towards • Among world’s lowest carbon • Targetin
Slide 7: Pathway to Net Zero by 2050
Pathway to Net Zero by 2050 Carbon Emission Reductions Electricity Diesel Coal and Natural Gas Fugitive Methane Offsets & Removals 4 Piloting and adopting smaller zero emissions vehicles (e.g. Electric Buses) Contracted 50% of operational energy at QB2 from renewable sources Sourcing 100% renewable
Slide 8: Portfolio of Future-Essential Resources
Portfolio of Future-Essential Resources Capitalizing on strong demand in the transition to a low-carbon economy GROW MAXIMIZE VALUE, DRIVE FREE CASH FLOW Copper Zinc Steelmaking Coal Global Growth to 2050 2.3x 2.1x → 1.0x Seaborne steelmaking coal Demand Green technologies, electrification Galva
Slide 9: Robust Long Term Outlook for our Key Commodities
Robust Long Term Outlook for our Key Commodities Capitalizing on strong demand in the transition to a low-carbon economy Copper Zinc Steelmaking Coal kt Requirement for Copper Mine Production kt Requirement for Zinc Mine Production Mt Australia Supply India Demand 35,000 Concentrate Production 20,00
Slide 10: Near-Term Copper Growth Through QB2
Near-Term Copper Growth Through QB2 Doubling our consolidated copper production by 2023 Flagship copper project in Northern Chile • Large, long-life deposit capable of supporting multiple expansions • Very low strip ratio of 0.7 • Competitive, second quartile, all-in sustaining costs (AISC) • Only u
Slide 11: Transformational Growth Rebalances Portfolio to Copper
Transformational Growth Rebalances Portfolio to Copper Industry-leading copper growth profile QB2 drives Teck’s consolidated copper production growth 2021A–2025E1 QB2 at full production rebalances our portfolio to copper Revenue by Business Unit Teck 110% Energy 4% Copper Copper Steelmaking 23% Coal
Slide 12: Unlocking the Value of our Leading Base Metals Growth
Unlocking the Value of our Leading Base Metals Growth Base metals business growth rivals leading copper peers Consolidated Copper Equivalent Production1 (kt CuEq) Copper Zinc (CuEq) Other (CuEq) Attributable (CuEq) Teck Antofagasta First Quantum +79% +14% +13% 1030 921 912 859 810 479 2021A 2024E 20
Slide 13: Industry Leading Copper Growth Pipeline
Industry Leading Copper Growth Pipeline Potential to add ~5x of current copper equivalent production Potential Annual Copper Equivalent Production Growth (kt)1 Unrivaled suite of options diversified Near Term (2023-2028) Medium Term (2029-2033) Future Potential (2034+) by geography, scale, time to d
Slide 14: Delivering on Copper Growth Strategy
Delivering on Copper Growth Strategy Recent transactions demonstrate significant value in our copper growth pipeline San Nicolás JV (Teck 50% | Agnico Eagle 50%) NewRange Copper Nickel JV (Teck 50% | PolyMet 50%) A long-term partnership between two international Canadian mining companies Responsible
Slide 15: Cash Flow Inflection
Cash Flow Inflection Approaching potential significant cash flow generation with QB2 at full production Illustrative QB2 Net Cash Flow Scenarios at Full Production1 Operating Cash Flow Sustaining Capital Project Finance Repayment 2022E QB2 Capex2 $1.6B $1.3B $2.1B $1.0B $1.8B Inflow $1.5B $0.1B $0.1
Slide 16: Strong Financial Position
Strong Financial Position Strong Balance Sheet Debt Maturity Ladder2 (US$M) Liquidity1 Net Debt to Adjusted EBITDA2 $8.3B 0.5x 537 480 404 399 377 350 Returns to Shareholders and Debt Repaid in Q3 2022 Share Buybacks Dividends Debt Repayment 108 $730M $64M $42M 2035 2022 2023 2024 2025 2026 2027 202
Slide 17: Capital Allocation Framework
Capital Allocation Framework Cash Flow Sustaining Base Supplemental from Operations Capital Dividend Shareholder Distributions including stripping $0.50 per share minimum 30% available cash flow RETURNS after interest and finance charges, lease payments and distributions to non-controlling interests
Slide 18: Cash Flow and Returns with QB2 at Full Production
Cash Flow and Returns with QB2 at Full Production1 Illustrative scenarios indicate potential available cash flow of $6-7 per share Operating Cash Flow Available Cash Flow2 Minimum 30% Shareholder Distribution Balance for Growth and Additional Returns US$4.50/lb Copper US$4.00/lb Copper US$3.50/lb Co
Slide 19: Driving Long-Term Sustainable Shareholder Value
Driving Long-Term Sustainable Shareholder Value Industry leading Rebalance portfolio copper growth of high-quality assets Long-term to low-carbon metals sustainable shareholder value Balance growth Leadership and cash returns in sustainability to shareholders Global Metals and Mining Conference 19
Slide 20: Appendix
Appendix Global Metals and Mining Conference
Slide 21: For Further Information
For Further Information Supplemental Information for Investors Contact Investor Relations Click here or scan the QR code below to reference slides investors@teck.com 1.877.759.6226 604.699.4257 Global Metals and Mining Conference 21
Slide 22: Production Guidance
Production Guidance Production (000’s tonnes except as noted) Previous Current Previous 3-Year Current 3-Year 2021 Actual 2022 Guidance 2022 Guidance1 Guidance (2023-2025) Guidance1 (2023-2025) Copper2,3,4 Highland Valley 130.8 127-133 127-133 130-160 110-170 Antamina 100.2 91-96 91-96 90-95 90-95 C
Slide 23: Sales and Unit Cost Guidance
Sales and Unit Cost Guidance Sales Unit Costs Q3 2022 Q4 2022 Previous Current Actual Guidance1 2021 Actual 2022 Guidance 2022 Guidance1 Zinc in concentrate Copper2 (US$/lb) Red Dog (kt) 235 130-150 Total cash unit costs 1.80 1.93-2.03 1.93-2.03 Steelmaking coal (Mt) 5.6 5.0-5.4 Net cash unit costs
Slide 24: Capital Expenditures Guidance
Capital Expenditures Guidance Teck’s share in C$ millions, except as noted Sustaining and Growth Capital Sustaining and Growth Capital (cont.) Previous 2022 Current 2022 Previous 2022 Current 2022 2021 Actual Guidance Guidance1 2021 Actual Guidance Guidance1 Sustaining Total sustaining and growth $
Slide 25: Water Treatment Guidance
Water Treatment Guidance Steelmaking Coal Capital Expenditures and Operating Costs Related to Water Treatment 3-Year Long-Term 2021 Previous 2022 Current 2022 Guidance1 Guidance1,3 (C$ millions, unless otherwise noted) Actual Guidance Guidance1 (2022-2024) (C$/tonne) Capital Expenditures Sustaining
Slide 26: Sensitivities
Sensitivities Sensitivity of our Annualized Profit Attributable to Shareholders and EBITDA1 Estimated Effect of Change on Estimated Effect 2022 Mid-Range Profit Attributable to Shareholders3 on EBITDA3 Production Estimates2 Changes ($ in millions) ($ in millions) US$ exchange C$0.01 $ 67 $ 103 Coppe
Slide 27: QB2 Project Economics Comparison
QB2 Project Economics Comparison Reserve Sanction Case1 Case2 Mine Life Years 28 28 Strip Ratio First 5 Full Years 0.16 0.44 LOM3 0.41 0.70 C1 Cash Cost4 First 5 Full Years US$/lb $1.29 $1.28 LOM3 US$/lb $1.47 $1.37 AISC5 First 5 Full Years US$/lb $1.40 $1.38 LOM3 US$/lb $1.53 $1.42 Global Metals an
Slide 28: 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 Cu Mo Silver Cu Mo Silver Reserves Mt Grade % Grade % Grade ppm Reserves Mt Grade % Grade % Grade 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 Pr
Slide 29: Endnotes
Endnotes Slide 3: Copper Growth Slide 13: Industry Leading Copper Growth Pipeline 1. Five years from January 1, 2017 to December 31, 2021. 1. CuEq calcs use US$3.50/lb Cu, US$1.15/lb Zn, US$10.00/lb Mo, US$8.00/lb Ni, US$21.50/lb Co, US$1,550/oz Au, US$20.00/oz Ag, US$1,100/oz Pt and US$1,450/oz Pd.
Slide 30: Endnotes
Endnotes Slide 23: Sales and Unit Cost Guidance Slide 27: QB2 Project Economics Comparison 1. As at October 26, 2022. See Teck’s Q3 2022 press release for further details. 1. Based on go-forward cash flow from January 1, 2017. Based on all equity funding structure. 2. Copper unit costs are reported
Slide 31: Non-GAAP Financial Measures and Ratios
Non-GAAP Financial Measures and Ratios Global Metals and Mining Conference
Slide 32: 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,
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