43 slides from Teck Resources Limited Class A's proxy contest presentation, Apr 18, 2023
Slide 1: The Choice For Shareholders: Unlocking the Value Potential of Teck Metals
The Choice For Shareholders: Unlocking the Value Potential of Teck Metals and Its Unparalleled Copper Growth vs. The Status Quo April 18, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation and the accompanying oral presentation each contains certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to as forward-looking statements). These forward-looking statements rel
Slide 3: Exclusive Focus of Management and the Board is on Maximizing Shareholder Value
Exclusive Focus of Management and the Board is on Maximizing Shareholder Value With Greatest Certainty Global Metals and Mining Conference For further information regarding the separation, Teck shareholders should refer to the Notice of Meeting and Management Proxy Circular, which is available under
Slide 4: Teck's Pending Separation Maximizes Value Creation Opportunity
Teck’s Pending Separation Maximizes Value Creation Opportunity Unlocks Significant Value for Teck Shareholders Teck Metals Elk Valley Resources Global Base Metals Miner with Unparalleled Copper Growth World-Class Steelmaking Coal Producer ✓• Provides Teck shareholders with optionality between two wo
Slide 5: A Vote FOR the Pending Separation Maximizes Value Creation Opportunity and Certainty
A Vote FOR the Pending Separation Maximizes Value Creation Opportunity and Certainty for Teck Shareholders Vote FOR Announced Separation Failure To Approve Announced Separation ✓ Creates two world-class, pure-play Is a vote for the status quo; limits mining companies value unlock ✓ Unparalleled ex
Slide 6: Teck Metals: A Premier Global Base Metals Platform
Teck Metals: A Premier Global Base Metals Platform Top 10 Copper Producer ✓ • World-class base metals platform of global scale in the Americas Top 10 Globally Within ~18 Months ✓ • High-quality, low-cost copper-focused production base in the Americas 1st Quartile C1 Cash Cost1 Portfolio 2x Productio
Slide 7: Teck Metals: A Premier Global Base Metals Platform
Teck Metals: A Premier Global Base Metals Platform Rapidly Scaling Production, 1st Quartile Costs Americas-Focused Levered to Growth in Copper Demand Peer Leading Copper Growth: 2X CuEq. 2024E1,2 production1 near term; further 2X by end of decade 77 % 100 % 1,132 ✓ Cu: 571kt EBITDA 320 640 ✓ Zn: 624
Slide 8: Teck Metals Portfolio is Underpinned By Four Cornerstone Operating Assets
Teck Metals Portfolio is Underpinned By Four Cornerstone Operating Assets QB2 Antamina Highland Valley Red Dog (60% ownership) (22.5 % ownership) (100% ownership) (100% ownership) Scaling to top 10 copper mine in the Americas, High quality, proven Largest base metals mine Largest and highest-grade p
Slide 9: QB Drives Near-Term And Long-Term Growth
QB Drives Near-Term And Long-Term Growth Produced First Copper Concentrate at QB2 on March 31st, 2023 Flagship Copper Mine QB Joining the Ranks of Industry's in Northern Chile QB2 Doubles Teck’s Copper Production Largest Copper Mines1 Consolidated Production 640 Escondida (kt Cu Eq) 320 Collahuasi Q
Slide 10: Growth Pipeline at an Advanced State of Readiness
Growth Pipeline at an Advanced State of Readiness ✓ • 10+ years ago, recognized copper scarcity and long timelines to get assets into production • Over 5+ years, completed lead-time development work (resource definition, engineering & design, permitting, ✓ stakeholder engagement) across portfolio •
Slide 11: Robust Portfolio of Near-Term Development Projects
Robust Portfolio of Near-Term Development Projects San Nicolás QBME Zafranal NewRange Galore Creek High grade asset with Continued production US producer of Canada’s largest Peru’s next industry leading growth from massive critical battery metal copper development copper mine returns resource concen
Slide 12: Readiness Maximizes Portfolio Optionality and Value
Readiness Maximizes Portfolio Optionality and Value Development projects can drive further production growth starting in 2027 2024 2025 2026 2027 2028 2029 Near-Term Value Catalysts San Agnico Eagle partnership, EIA submission and FS completion targeted for Nicolás H1 2023 & H1 2024 Permit submitted
Slide 13: 2X Production, With Path to 2X Again in Near-Term
2X Production, With Path to 2X Again in Near-Term Current Producing Portfolio1 Near-Term Development Pipeline1 Investing Today For Longer-Term Growth1 Driving Copper Growth Driving Copper Growth 2027-2029+ Schaft Creek NewRange (100%) Nueva (Mesaba) Unión (50%) Future QB ~1.9 Expansions (50%) MT Gal
Slide 14: Teck Metals: the "Go To" Company in Base Metals
Teck Metals: the “Go To” Company in Base Metals Teck Metals’ scale, asset quality and growth provide platform for a meaningful valuation uplift Industry Leading Growth Rapidly Increasing Scale Substantial Re-Rate Potential Copper Production Growth1 Copper Production (kt)1 EV / EBITDA (22A-26E Consen
Slide 15: Teck Metals Merits a Premium Valuation
Teck Metals Merits a Premium Valuation Excluding Transition Capital Structure Illustrative EV for Teck Base Metals Assets Based on EBITDA Multiples 1 Unrivalled Low growth, Growth Upside mature producer C$45bn trading multiple C$40bn C$36bn C$31bn 7.0 x 8.0 x 9.0 x 10.0 x Global Metals and Mining Co
Slide 16: Teck Metals is a Highly Compelling Value Proposition
Teck Metals is a Highly Compelling Value Proposition Quality of Teck Metals’ Growth Portfolio Delivers Substantial Value to Shareholders… …As Well as Additional Value Upsides Not With Additional Value from Leverage to Strength in Copper Price… Captured by Multiples EV of Teck Metals’ Base C$36bn C$4
Slide 17: Teck Metals: A Premier Global Base Metals Platform
Teck Metals: A Premier Global Base Metals Platform Pure Play Base Metals Miner with Unparalleled Growth Potential Top 10 Copper Producer ✓ • World-class base metals platform of global scale in the Americas Top 10 Globally Within ~18 Months ✓ • High-quality, low-cost copper-focused production base in
Slide 18: Appendix
Appendix Global Metals and Mining Conference
Slide 19: Copper Growth Portfolio
Copper Growth Portfolio Global Metals and Mining Conference
Slide 20: Portfolio of Copper Growth Options
Portfolio of Copper Growth Options Near Term Options 1 San Nicolás (Cu-Zn-Au-Ag), Mexico1,2 Teck 50% | Agnico Eagle 50% (San Nicolás Joint Venture) Prefeasibility Study complete Q1 2021; Feasibility Study completion targeted for Q1 2024 First five years (100% basis): 127 ktpa CuEq, C1 cash costs US$
Slide 21: San Nicolás Cu-Zn (Ag-Au) VHMS (50%)
San Nicolás Cu-Zn (Ag-Au) VHMS (50%) Prefeasibility and Environmental Impact Assessment completed Prefeasibility Study Production Profile and Financial Summary1 Long Life Asset in Mexico Cu Contained in CCTs (kt) CuEq Contained in CCTs (kt) EBITDA Margin (RHS) • One of the world’s most significant u
Slide 22: San Nicolás Cu-Zn (Ag-Au) VHMS (50%)
San Nicolás Cu-Zn (Ag-Au) VHMS (50%) A partnership between two international Canadian-based mining companies Unlocking the value of a world class undeveloped VHMS C1 Cash Cost (Net of by-product credits)1 • Agnico Eagle will subscribe for US$580 million of shares in the Teck $5.00 Top Decile C1 Cash
Slide 23: Quebrada Blanca Expansion Cu-Mo-Ag (60%)
Quebrada Blanca Expansion Cu-Mo-Ag (60%) Fast-tracking additional near-term copper growth QB Mill Expansion (QBME) in Chile, as envisioned Defining the next expansion at QB First Production Throughput Increase Avg First 5-Years Incremental Production • Multiple expansion options considered in scopin
Slide 24: Quebrada Blanca Mill Expansion Cu-Mo (60%)
Quebrada Blanca Mill Expansion Cu-Mo (60%) Advancing permitting and feasibility study 50% concentrator expansion to increase production Mine Concentrator 2nd Crusher • Additional third grinding circuit and flotation line increases copper throughput by 50% 3rd Grind & Float Circuit • QBME builds on e
Slide 25: Zafranal Cu-Au Porphyry (80%)
Zafranal Cu-Au Porphyry (80%) Feasibility complete, SEIA submitted in Q1 2022 Feasibility Study Production Profile and Financial Summary1 Long Life Asset In Peru Cu Contained in CCT (kt) CuEq Contained in CCT (kt) EBITDA Margin (RHS) • 19 year mine life with mine life extension 200 100% opportunitie
Slide 26: Zafranal Cu-Au Porphyry (80%)
Zafranal Cu-Au Porphyry (80%) Near term growth opportunity Advancing a high-quality Cu-Au development opportunity Mineral Reserve and Resources Statement1 • Update of the capital and operating cost estimates from the Q2 Category Tonnes Grades Contained Metal 2019 Feasibility Study and Q1 2020 Feasib
Slide 27: NewRange Cu-Ni-Co-Pd-Pt Deposits (50%)
NewRange Cu-Ni-Co-Pd-Pt Deposits (50%) Responsible delivery of critical metals to support the transition to a low-carbon economy Joint venture provides enhanced asset development path Major source of critical metals in North America • The Teck / PolyMet 50:50 JV combines the NorthMet and Contained M
Slide 28: Galore Creek Cu-Au-Ag Porphyry (50%)
Galore Creek Cu-Au-Ag Porphyry (50%) Advancing a large, high-quality undeveloped Cu-Au-Ag deposit in NW British Columbia Quality investment and partnership Mineral Resource Statement1 • The project is owned by the Galore Creek Partnership Category Tonnes Grades Contained Metal (Teck:Newmont 50:50) a
Slide 29: NuevaUnión Cu-Mo-Ag and Cu-Au (50%)
NuevaUnión Cu-Mo-Ag and Cu-Au (50%) Strategic studies in progress to optimize asset value Leveraging synergies and expertise in stable jurisdiction Mineral Reserve and Resource Statements1 Relincho deposit area • The NuevaUnión partnership combines the Cu-Au La Fortuna deposit and the Cu-Mo-Ag Relin
Slide 30: Schaft Creek Cu-Mo-Au-Ag Porphyry (75%)
Schaft Creek Cu-Mo-Au-Ag Porphyry (75%) Large-scale, open-pit development opportunity Large-scale mineral resource in mining friendly jurisdiction Mineral Resource Statement1 • The Schaft Creek Joint Venture (SCJV), between Teck and Category Tonnes Grades Contained Metal Copper Fox Metals Inc., with
Slide 31: Mine Life Extensions
Mine Life Extensions Global Metals and Mining Conference
Slide 32: HVC 2040 Mine Life Extension Cu-Mo (100%)
HVC 2040 Mine Life Extension Cu-Mo (100%) Feasibility study and permit application in progress Quality brownfield extension • Extends existing HVC copper production of ~140ktpa of copper per year with 1st production expected in 2027 • Project includes increased grinding capacity, flotation circuit P
Slide 33: Antamina Mine Life Extension Cu-Zn-Mo-Ag (22.5%)
Antamina Mine Life Extension Cu-Zn-Mo-Ag (22.5%) Mine life extension project well-underway Project extends life of world class asset Expanded Waste • Expansions of pit, dump and tailings facility will extend life of mine from Storage Facilities 2028 to 2036 • Adds >600Mt of ore, maintains current pr
Slide 34: Red Dog: Aktigiruq Development Project Zn-Pb-Ag (100%)
Red Dog: Aktigiruq Development Project Zn-Pb-Ag (100%) Studies and resource definition advancing Strategic zinc asset in key jurisdiction Su-Lik Aktigiruq Anarraaq • Teck controlled, world-class zinc district in Alaska • Multiple high-grade deposits, ~10 miles from Red Dog • Focus on Aktigiruq depos
Slide 35: Zinc Development Options
Zinc Development Options Global Metals and Mining Conference
Slide 36: Portfolio of Zinc Development Options
Portfolio of Zinc Development Options 1 Red Dog District North America Anarraaq (Zn-Pb), USA Teck 100% 1 ~11 km from Red Dog operation; scoping study complete in 2014; existing study being optimized Inferred Resources released in 2017 of 19.4 Mt @ 14.4% Zn, 4.2% Pb 1 Aktigiruq (Zn-Pb), USA Teck 100%
Slide 37: Zinc Development Options
Zinc Development Options Adding value to our high-quality portfolio of zinc development assets Zinc outperforms market expectations Largest Undeveloped Zinc Deposits Teck has several undeveloped high-grade zinc assets1 (>10% Pb + Zn) • Declining production from existing primary zinc mines located in
Slide 38: High Quality Zinc Projects
High Quality Zinc Projects Well-known, attractive jurisdictions USA – Alaska Australia – Northern Territory Canada – BC Red Dog (Zn-Pb): outstanding high-grade Teena (Zn-Pb): significant discovery in Cirque (Zn-Pb): attractive deposit in potential mine life extension in a premier district an establi
Slide 39: Endnotes
Endnotes Slide 5: Teck Metals: A Premier Global Base Metals Platform Slide 12: 2X Production, With Pathway to 2X Again in Near-Term 1. Based on Wood Mackenzie 2024E Copper C1 Cash Cost Curve net of by-product credits. Source: Management guidance 2. Refers to previously announced Elk Valley Resources
Slide 40: Endnotes
Endnotes Slide 19: Portfolio of Copper Growth Options Slide 26: NewRange Cu-Ni-Co-Pd-Pt Deposits (50%) 1. Financials and CuEq calculated with price assumptions: US$3.60/lb Cu; US$1.20/lb Zn; US$7.80/lb Ni; US$23.80/lb Co; 1. M&I Resource Contained Metal calculations (tonnes) based on PolyMet Mining
Slide 41: Endnotes
Endnotes Slide 28: NuevaUnión Cu-Mo-Ag and Cu-Au (50%) Slide 36: Zinc Development Options 1. Teck has a 50% interest in NuevaUnión. Teck 2022 AIF Report. 1. Sources: S&P Global Market Intelligence, SNL Metals & Mining database. For the Aktigiruq, Anarraaq and Teena deposits the • Reserves and resour
Slide 42: Non-GAAP Financial Measures and Ratios
Non-GAAP Financial Measures and Ratios Global Metals and Mining Conference
Slide 43: 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,