19 slides from Teck Resources Limited Class A's earnings presentation, Oct 24, 2013
Slide 1: Third Quarter 2013 Investor Conference Call & Webcast
Third Quarter 2013 Investor Conference Call & Webcast October 24, 2013
Slide 2: Forward Looking Information
Forward Looking Information Both these slides and the accompanying oral presentation contain certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario).
Slide 3: Speakers
Q3 2013 Investor Conference Call Speakers Don Lindsay President & CEO Ron Millos SVP Finance & CFO 3
Slide 4: Q3 2013 Highlights
Q3 2013 Highlights • Steelmaking coal sales at a record level at 7.6 Mt • Solid operational performance - Steelmaking coal production near current capacity of 27 Mt - Annualized copper production of 362 kt • Sharp focus on operating costs - Significant cost reduction in steelmaking coal • Continued
Slide 5: Q3 2013 Results Overview
Q3 2013 Results Overview Revenues $ 2,524 million Gross profit $ 919 million (before depreciation & amortization) Profit $ 267 million (attributable to shareholders) Adjusted profit $ 252 million (attributable to shareholders) EBITDA $ 815 million 5
Slide 6: Adjusted Profit
Adjusted Profit ($ millions) Q3 ’13 Q3 ’12 Q2 ’13 Profit attributable to $ 267 $ 256 $ 143 shareholders as reported Asset sale losses (gains) 5 (22) 15 FX losses (9) 2 18 Derivative losses (gains) (1) (48) 1 Collective agreement charges - 9 – Financing items - 196 – Tax-related items (10) 32 20 Adju
Slide 7: Steelmaking Coal
Steelmaking Coal Q3 Q3 Q2 2013 2012 2013 Production (Mt) 6.7 6.3 6.0 Sales (Mt) 7.6 5.5 6.3 Average realized price (US$/t) 139 193 156 (C$/t) 144 194 159 Site costs (C$/t) 50 58 50 Transportation costs (C$/t) 38 37 39 Financial Results C$ millions Revenue 1,088 1,077 1,002 Gross profit (before depre
Slide 8: Steelmaking Coal Update
Steelmaking Coal Update Rolling Four-Quarter Coal Production (Mt) Quintette 27 • Restart to be reviewed in spring 2014 Capacity expected to grow to • Continuing engineering work so 28 Mtpa by year end production potentially in mid-2015 25 Line Creek 23 • BC Environmental Assessment Certificate recei
Slide 9: Copper
Copper Q3 Q3 Q2 2013 2012 2013 Copper in Concentrate (kt) Production 77 84 70 Sales 80 83 69 Copper Cathode (kt) Production 14 15 15 Sales 15 15 18 Moly in Concentrate (M lbs) Production 1.7 3.4 2.0 Sales 1.9 3.0 1.8 Financial Results C$ millions Revenue 714 763 693 Gross Profit 318 392 338 (before
Slide 10: Copper Update
Copper Update Rolling Four-Quarter Copper Production (kt) 380 Current Annualized • Highland Valley throughput impacted Production: 362 Kt by partial shutdown for commissioning of the new pebble crusher • Antamina new quarterly production 340 record • Quebrada Blanca reduced unit cash kt operating co
Slide 11: Highland Valley Mill Optimization
Highland Valley Mill Optimization • Project on schedule for substantial mechanical completion by year-end • New pebble crusher operating as designed • Commissioning of new floatation facility in Q1 2014 • Higher throughput expected from Q4 2013 11
Slide 12: Zinc
Zinc Q3 Q3 Q2 Zinc in Concentrate (kt) 2013 2012 2013 Production 156 145 161 Sales 191 157 97 Refined Zinc (kt) Production 77 74 70 Sales 78 75 70 Lead in Concentrate (kt) Production 23 22 25 Sales 60 46 – Refined Lead (kt) Production 24 21 21 Sales 23 22 21 Financial Results C$ millions Revenue 721
Slide 13: Energy: Fort Hills Update
Energy Fort Hills Update • Sanctioning decision expected prior to year-end • Suncor (the operator) is developing a cost-driven construction schedule • If approved: - Further details including capex to be released - Production would be expected to start in late 2017 13
Slide 14: Speakers
Q3 2013 Investor Conference Call Speakers Don Lindsay President & CEO Ron Millos SVP Finance & CFO 14
Slide 15: Cash Changes in Q3 2013
Cash Changes in Q3 2013 $ Millions Cash Flow from Operations 647 Working capital changes 9 Purchase of property, plant, & equipment (486) Mine development (160) Expenditures on financial investments & other assets (85) Debt principal & interest payments (156) Dividends paid (259) Distributions to no
Slide 16: Pricing Adjustments in Q3 2013
Pricing Adjustments in Q3 2013 Quarterly Change In Commodity Prices vs. Settlement Adjustment Quarterly change in commodity prices drive settlement pricing adjustments 100 • Copper: $0.24 Q1 2012 • Zinc: $0.03 Pre-tax Settlement Adjustment ($ millions) • Cumulative change: $0.27 Q3 2012 50 Pricing Q
Slide 17: Speakers
Q3 2013 Investor Conference Call Speakers Don Lindsay President & CEO Ron Millos SVP Finance & CFO 17
Slide 18: Q3 2013 Summary
Q3 2013 Summary Steelmaking coal sales record Solid operational performance Sharp focus on operating costs Continued progress on cost reductions Deferred capital expenditures 18
Slide 19: Third Quarter 2013
Third Quarter 2013 Investor Conference Call & Webcast October 24, 2013