Teck Resources Limited Class A · TSX:TECK.A
Teck Resources Limited Class A — Global Metals and Mining Conference (November 2023)
15 slides from Teck Resources Limited Class A's conference presentation, Nov 14, 2023
Slide 1: Unlocking Value for Teck Resources Shareholders
Unlocking Value for Teck Resources Shareholders Full Sale of Steelmaking Coal Business November 14, 2023 Global Metals and Mining Conference
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: Full Sale of the Steelmaking Coal Business
Full Sale of the Steelmaking Coal Business • Sale of majority stake in Elk Valley Resources (EVR) to Glencore at implied enterprise value of US$9.0B • Minority sale to Nippon Steel Corporation (NSC) • Proceeds will be used to strengthen the balance sheet, return cash to shareholders and ensure Teck
Slide 4: Transaction Summary
Transaction Summary • Glencore acquires a 77% controlling interest in EVR at an implied EV of US$9.0B • NSC acquires a 20% interest in EVR at an implied EV of US$8.5B, including the exchange of its 2.5% interest in Elkview Structure • POSCO intends to exchange its 2.5% and 20% interests in Elkview a
Slide 5: Transaction Value and Proceeds
Transaction Value and Proceeds Implied Total Transaction Value (US$B) Expected Aggregate Cash Proceeds to Teck (US$B) $1.0 $9.6 $0.3 $8.9 $6.9 $8.6 Proceeds from $6.9 Glencore $1.7 Proceeds from Minority $1.7 Partners NSC Glencore POSCO Total Transaction Transaction Cash Interim Cash Flows1 Aggregat
Slide 6: Transaction Valuation
Transaction Valuation Implied Transaction Multiples1 Peer EV/EBITDA Multiples2 EV/2024 EBITDA EV/2025 EBITDA 2024 2025 5.5x Peer 1 4.9x Peer 1 7.6x 3.8x Peer 2 4.0x Average 4.5x 3.6x 3.2x Average 3.6x Peer 2 4.4x Peer 3 3.2x Peer 3 3.6x Peer 4 3.1x Peer 4 3.6x Implied Peer Multiple Implied Peer Mult
Slide 7: Use of Proceeds
Use of Proceeds Ensures Teck is well-capitalized to unlock full potential of our base metals business 1 Reduce debt and maintain investment grade credit metrics Significant cash return to shareholders, with Board to determine amount and form 2 following close of the transaction 3 Retain additional c
Slide 8: 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 an
Slide 9: Industry-Leading Copper Portfolio Supports Value Upside
Industry-Leading Copper Portfolio Supports Value Upside Well-Capitalized, Unrivalled Copper Growth… … Unlocks Potential Value to Align with Pure-Play Copper Peers Cu Production CAGR1,2 EV/EBITDA Multiples1,3 2022A – 2026E 2024E 18% Peer 1 9.7x Peer 1 4% Peer 2 6.0x Peer 2 3% Peer 3 5.7x Peer 3 2% Pe
Slide 10: QB is a Transformational Asset
QB is a Transformational Asset QB Increases Copper Production… …. Drives Teck’s Leading Copper Growth… … and Propels Teck to the 1st Quartile on the Cu Cost Curve Consensus consolidated copper production1 Copper growth 2022A–2025E2 WoodMac Cost Curve 2024E3 Teck Teck 62% 133% 548 338 Teck ex-QB Dive
Slide 11: Near-Term Development Options
Near-Term Development Options Focus on execution to de-risk project delivery and drive strong financial returns Preserving Optionality Maximizing optionality and value for Engineering and Permitting Target Sanction Window Early Works / Construction Production defining optimal sequencing 2023 2024 20
Slide 12: Unrivalled Copper Growth Opportunities
Unrivalled Copper Growth Opportunities Multiple pathways to value creation Potential Annual CuEq Production Growth (kt; reporting basis; first 5 years average annual production by asset) Current Operating Assets Near-Term Development Options Investing Today For Longer-Term Growth Suite of options di
Slide 13: Commitment to Responsible Stewardship
Commitment to Responsible Stewardship Glencore’s Commitments to Support Enhanced Benefits to the Elk Valley, B.C., and Canada • Continue to operate in Canada with a head office in Vancouver • Maintain significant employment levels in Canada • Increase EVR capital expenditures to >$2B over three year
Slide 14: Full Sale of the Steelmaking Coal Business
Full Sale of the Steelmaking Coal Business • Sale of majority stake in EVR to Glencore at implied enterprise value of US$9.0B • Minority sale to Nippon Steel Corporation (NSC) • Proceeds will be used to strengthen the balance sheet, return cash to shareholders and ensure Teck is well-capitalized to
Slide 15: investors@teck.com
investors@teck.com 1.877.759.6226 or 604.699.4257 Global Metals and Mining Conference
Teck Resources — Global Metals and Mining Conference (November 2023) on 6ix