Teck Resources Limited Class A · TSX:TECK.A
Teck Resources Limited Class A — Global Metals and Mining Conference (January 2024)
23 slides from Teck Resources Limited Class A's conference presentation, Jan 19, 2024
Slide 1: Investor Presentation
Investor Presentation January 19, 2024 Global Metals and Mining Conference
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 Maximize long-term sustainable shareholder value Focus on Unlock the value of Balance growth Sustainability execution industry leading and cash returns leadership copper growth to shareholders Global Metals and Mining Conference 3
Slide 4: Industry-Leading Base Metals Producer
Industry-Leading Base Metals Producer Our Purpose Copper Zinc 1 Top 10 copper producer Largest net zinc miner globally in the Americas To provide essential resources the world is counting on to make 2 life better while caring Copper for the people, 1 Highland Valley Copper 2 Antamina communities, an
Slide 5: Our Priorities
Our Priorities Complete sale of steelmaking coal – minority stake sale to Nippon Steel complete, regulatory approvals underway on majority sale to Glencore Drive operational performance across the portfolio, ensuring we deliver on our market commitments Consistent performance of QB at design capacit
Slide 6: Full Sale of the Steelmaking Coal Business
Full Sale of the Steelmaking Coal Business • Announced the sale of majority stake in Steelmaking Coal assets to Glencore, and minority stakes to Nippon Steel Corporation (NSC) and POSCO • NSC and POSCO transactions closed on January 3, 2024 − Total proceeds from minority sales of US$1.7B − NSC acqui
Slide 7: Updated Production Guidance
Updated Production Guidance Copper Zinc (Kt) 2023 2024 2025 2026 2027 700.0 2x copper (Kt) Actual Guidance1 Guidance1 Guidance1 Guidance1 production1 539.8 520-570 460-510 410-460 365-400 550-620 550-620 Red Dog 600.0 530-600 Antamina (22.5%) 104.2 45-60 95-105 55-65 35-45 465-540 Total zinc in conc
Slide 8: Updated Unit Cost and Capex Guidance
Updated Unit Cost and Capex Guidance Reflect continued inflationary cost pressures Capital Expenditures Unit Cost Guidance for 2024 2023 2024 (Teck’s share in C$ millions) Sustaining2,3 $ Guidance 1,420 $ Guidance1 1,485-1,760 $95-110/t Copper Net cash unit costs* Growth4,5 $ 360 $ 500-590 Adjusted
Slide 9: QB2 Ramp Up Continues With Strong Performance
QB2 Ramp Up Continues With Strong Performance Operational Update • Fourth quarter focused on reliability and consistency of production but took longer than expected • Demonstrating stable production from end of December and into January • All unit operations operating at or above design capacity and
Slide 10: Disciplined Approach to Copper Growth
Disciplined Approach to Copper Growth Adapting our approach to project development to leverage lessons learned • Undertaking a detailed project review of QB2, utilizing third party expertise • Pausing sanctioning of development projects during the review period Advancing near-term priorities for san
Slide 11: Near-Term Development Options
Near-Term Development Options A balanced portfolio of greenfield and brownfield projects in well understood jurisdictions Highland Valley Copper Life Extension Extending LOM of Canada’s largest base metals mine Mine life extension of a highly productive asset with established operation with known &
Slide 12: Disciplined Capital Allocation Framework
Disciplined Capital Allocation Framework Commitment to return 30-100% of available cash flow to shareholders* Cash Flow Sustaining Base Supplemental from Operations Capital Dividend Shareholder Distributions including stripping $0.50 per share minimum 30% available cash flow RETURNS after interest a
Slide 13: Considerations for Use of Transaction Proceeds
Considerations for Use of Transaction Proceeds Ensures Teck is well-positioned to unlock full potential of our base metals business Maintain investment grade credit metrics through the cycle - targeting net debt to EBITDA* of 1.0x Assess opportunities to reduce gross debt to maintain or improve cred
Slide 14: Being a Responsible Miner Creates Value
Being a Responsible Miner Creates Value Critical Sustainability Goals Recognized ESG Performance 4th in the 2023 S&P Global Prime Rating for ESG Corporate Sustainability performance; top decile in the Assessment metals and mining mining and integrated production industry industry as of December 2022
Slide 15: Value Creation Strategy
Value Creation Strategy Capitalizing on strong demand in the transition to a low-carbon economy Focus on Unlock the value of execution industry leading copper growth Long-term sustainable Balance growth Sustainability shareholder and cash returns to shareholders leadership value Global Metals and Mi
Slide 16: Appendix
Appendix Global Metals and Mining Conference
Slide 17: Production Guidance
Production Guidance Copper Zinc 2023 2024 2025 2026 2027 2023 2024 2025 2026 2027 (Kt) Actual Guidance1 Guidance1 Guidance1 Guidance1 (Kt) Actual Guidance1 Guidance1 Guidance1 Guidance1 Copper3,4 Zinc in concentrate3,4,5 Quebrada Blanca 2 62.8 230-275 280-310 280-310 280-310 Red Dog 539.8 520-570 46
Slide 18: Unit Cost and Sales Guidance
Unit Cost and Sales Guidance Unit Costs Copper2 Zinc3 Steelmaking Coal 2023 2024 2023 2024 2023 2024 (US$/lb) Guidance Guidance1 (US$/lb) Guidance Guidance1 (C$/tonne) Guidance Guidance1 Total cash unit costs* 2.05-2.25 2.15-2.35 Total cash unit costs*,5 0.68-0.78 0.70-0.80 Adjusted site cash cost o
Slide 19: Capital Expenditures Guidance
Capital Expenditures Guidance Sustaining and Growth Capital Capitalized Stripping 2023 2024 2023 2024 (Teck’s share in C$ millions) Guidance Guidance1 (Teck’s share in C$ millions) Guidance Guidance1 Sustaining Capitalized Stripping Copper2 $ 510 $ 495-550 Copper2 $ 395 $ 255-280 Zinc 150 190-210 Zi
Slide 20: Endnotes
Endnotes Slide 7: Updated Production Guidance Slide 18: Unit Cost and Sales Guidance 1. As at January 15, 2024. Graphs show mid-point of guidance ranges for 2024-2027. Quebrada Blanca is not expected to include 1. As at January 15, 2024. Teck’s 2023 Production and 2024 Guidance Update press release
Slide 21: Non-GAAP Financial Measures and Ratios
Non-GAAP Financial Measures and Ratios Global Metals and Mining Conference
Slide 22: Non-GAAP Financial Measures and Ratios
Non-GAAP Financial Measures and Ratios Our financial results are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. This document includes reference to certain non-GAAP financial measures and non- GAAP ratios, which are
Slide 23: Investor Presentation
Investor Presentation January 19, 2024 Global Metals and Mining Conference
Teck Resources — Global Metals and Mining Conference (January 2024) on 6ix