Teck Resources Limited Class A · TSX:TECK.A
Teck Resources Limited Class A — Global Metals and Mining Conference 2023
22 slides from Teck Resources Limited Class A's conference presentation, Feb 27, 2023
Slide 1: Separation of Teck Metals and Elk Valley Resources
Teck Resources Separation of Teck Metals and Elk Valley Resources February 27, 2023 Global Metals and Mining Conference 1
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 in applicable securities laws (collectively referred to as forward-looking statements). These forward-looking stateme
Slide 3: 2022 Financial Results, QB2 and Copper Growth Update
2022 Financial Results, QB2 and Copper Growth Update Global Metals and Mining Conference
Slide 4: Strong Financial Position
Strong Financial Position Balancing copper growth with shareholder returns Record 2022 Financial Results Significant Returns to Shareholders & Debt Repaid3 Profit before Taxes Adjusted EBITDA Share Buybacks Dividends Debt Repayment $6.6B $9.6B $1.6B $0.9M $1.3B Strong Balance Sheet Investment Grade
Slide 5: QB2 Commissioning Underway
QB2 Commissioning Underway A world-class asset with significant expansion potential Outlook • Commissioning Line 1 at the concentrator and making final preparations to feed ore to the mills • Expected to reach full capacity by end of 2023 • Project capex unchanged at US$7.4-7.75B • Expected producti
Slide 6: Industry-Leading Copper Growth Pipeline
Industry-Leading Copper Growth Pipeline Near Term (2023-2028) Medium Term (2029-2033) Future Potential (2034+) Industry-leading suite +450% of options diversified Schaft Creek (100%) ~2.2 Mt by geography, scale, Nueva Mesaba Future QB +350% Unión (50%) ~1.9 Mt time to development (50%) Expansions an
Slide 7: Unlocking Value for Teck Resources Shareholders
Unlocking Value for Teck Resources Shareholders Separation of Teck Metals and Elk Valley Resources Global Metals and Mining Conference 7
Slide 8: Separation Creates Two World-Class Companies
Separation Creates Two World-Class Companies Unlocking the value of Teck Resources • Teck Metals to realize its full potential as a premier, growth-oriented producer of energy transition metals • EVR established as a pure-play, high-margin steelmaking coal producer • Teck Metals retains steelmaking
Slide 9: Positioning Teck Metals for the Future
Positioning Teck Metals for the Future Premier metals company with industry-leading copper growth Teck Metals • Teck Resources becomes Teck Metals • High-quality, low-cost base metals producer in the Americas • Industry-leading, well-funded copper growth portfolio that is significantly undervalued r
Slide 10: World-Class Canadian Steelmaking Coal Company
World-Class Canadian Steelmaking Coal Company Long-life assets drive significant long-term value Elk Valley Resources (EVR) • Pure-play steelmaking coal company with high-quality, long-life assets with top-tier margins • Nippon Steel and POSCO transactions simplify structure and validate EVR valuati
Slide 11: EVR Cash Flow Waterfall
EVR Cash Flow Waterfall TCS supports resilience and returns to shareholders Resiliency of EVR Transition Capital Structure Cash Flow Capital Environmental Preferred Share from Operations Expenditures Stewardship Trust Dividends1 • Estimated to be fully paid in 11 years3 at long-term HCC price of US$
Slide 12: Separation and Growth Rebalances Teck Metals to Copper
Separation and Growth Rebalances Teck Metals to Copper Rapid rebalancing towards a pure-play base metals company Portfolio Transformation Towards Base Metals Base Metals Steelmaking Coal • Steelmaking coal is deconsolidated upon listing of EVR (zero revenue inclusion in Teck Metal’s balance sheet) •
Slide 13: Sunset for Class A Shares Modernizes Capital Structure
Sunset for Class A Shares Modernizes Capital Structure Dual Class Amendment Effective Date of the Dual Class Amendment New Class A • Sunsets increasingly a common feature of dual class 1 common share structures Class A • 1 common share + Multiple voting rights eliminated in year 6 • Not conditional
Slide 14: Transaction Timeline and Approvals
Transaction Timeline and Approvals Announcement Record Date Annual and Closing EVR Shares for Meeting Special Meeting Date Begin Trading1 21 7 26 February March April May June 2023 Shareholder approvals (Subject to regulatory approval) a. Separation Subject to 66 2/3% approval by Class A and B share
Slide 15: Separation Creates Two World-Class Companies
Separation Creates Two World-Class Companies Unlocking value for Teck Resources shareholders • Teck Metals retains steelmaking coal cash flows during transition period to fund copper growth and realize its full potential • Provides investors choice of businesses with unique fundamentals and value pr
Slide 16: Unlocking Value for Teck Resources Shareholders
Unlocking Value for Teck Resources Shareholders Separation of Teck Metals and Elk Valley Resources Global Metals and Mining Conference 16
Slide 17: Appendix
Appendix Global Metals and Mining Conference
Slide 18: Transaction Structure
Transaction Structure EVR Common Equity • Teck shareholders receive 1 EVR share for every Pathway to full financial separation 10 Teck shares plus cash (subject to Dutch auction process) Transition Capital Structure (TCS) a. Gross Revenue Royalty (“Royalty”) 87.5% 100% • Royalty payments based on co
Slide 19: Illustrative EVR Cash Flow Waterfall
Illustrative EVR Cash Flow Waterfall Based on 2022A1 Cash Flow Capital Environmental Preferred Share from Operations Expenditures Stewardship Trust Dividends $6.5B ($1.2B)2 ($0.1B) ($0.3B) Transition Capital Structure (87.5% to Teck Metals) 90% Gross Revenue Preferred Share Royalty Redemptions Free
Slide 20: Non-GAAP Financial Measures and Ratios
Non-GAAP Financial Measures and Ratios Global Metals and Mining Conference
Slide 21: 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 22: For Further Information
For Further Information Teck.com/separation investors@teck.com 1.877.759.6226 or 604.699.4257 Global Metals and Mining Conference
Teck Resources — Global Metals and Mining Conference 2023 on 6ix