Teck Resources Limited Class A · TSX:TECK.A
Teck Resources Limited Class A — Investor Day (March 2017)
31 slides from Teck Resources Limited Class A's investor day presentation, Mar 30, 2017
Slide 1: Projects
Projects March 30, 2017 Tim Watson, SVP, Project Development and Engineering Alex Christopher, SVP, Exploration, Projects and Technical Services
Slide 2: Forward Looking Information
Projects 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 (
Slide 3: Agenda
Projects Agenda Fort Hills Quebrada Blanca Phase 2 3
Slide 4: Project Overview
Fort Hills Project Overview • Nameplate capacity increased to 194 kbpd • Steady state production increased to 186 kbpd • First oil end of 2017 • Expect to achieve 90% of nameplate capacity by end 2018 4 Source: Fort Hills Energy Limited Partnership, Fall 2016.
Slide 5: Project Progress
Fort Hills Project Progress Progress as of February 28, 2017 • Final installation of all modules & process vessels • Ore preparation mechanically complete >80% Construction complete • 55% progress on first oil scope1 • Site work now focused on piping, electrical & instrumentation • Permanent power i
Slide 6: Major Milestones
Fort Hills Major Milestones Six Major Project Areas Target Date / Status 1. Mining1 Completed 2. Ore Prep1 Completed 3. Major Infrastructure1 Completed 4. Primary Extraction & Tailings ‒ Primary Extraction April 2017 ‒ Tailings August 2017 5. Utilities June 2017 6. Secondary Extraction (First
Slide 7: Ore Preparation: Crusher
Fort Hills 1 Ore Preparation: Crusher Fall 2016 9 Source: Fort Hills Energy Limited Partnership
Slide 8: Ore Preparation: Slurry Prep
Fort Hills 1 Ore Preparation: Slurry Prep Fall 2016 11 Source: Fort Hills Energy Limited Partnership
Slide 9: Ore Preparation: Hydro-Transport Lines
Fort Hills 1 Ore Preparation: Hydro-Transport Lines Fall 2016 12 Source: Fort Hills Energy Limited Partnership
Slide 10: Primary Extraction: Primary Separation Cell
Fort Hills 2 Primary Extraction: Primary Separation Cell Fall 2016 15 Source: Fort Hills Energy Limited Partnership
Slide 11: Utilities
Fort Hills 3 Utilities Fall 2016 18 Source: Fort Hills Energy Limited Partnership
Slide 12: River Water Intake
Fort Hills 4 River Water Intake Fall 2016 21 Source: Fort Hills Energy Limited Partnership
Slide 13: Main Substation
Fort Hills 5 Main Substation Fall 2016 23 Source: Fort Hills Energy Limited Partnership
Slide 14: Tank Farm: Trans Canada Pipeline Limited
Fort Hills 6 Tank Farm: Trans Canada Pipeline Limited Fall 2016 25 Source: Fort Hills Energy Limited Partnership
Slide 15: East Tank Farm
Fort Hills 7 East Tank Farm Fall 2016 27 Source: Fort Hills Energy Limited Partnership
Slide 16: Site Plot Plan
Fort Hills Site Plot Plan ~5km x ~5km Utilities Substation Secondary 3 8 5 Extraction 6 2 1 Athabasca River TPL Primary Extraction Tank Ore Prep & Tailings Farm Highway #63 MINE East Tank 4 River Water Intake Farm 7 ~50 km 28
Slide 17: Secondary Extraction Plot Plan
Fort Hills 8 Secondary Extraction Plot Plan 29 Source: Fort Hills Energy Limited Partnership
Slide 18: Secondary Extraction
Fort Hills 8 Secondary Extraction Fall 2016 32 Source: Fort Hills Energy Limited Partnership
Slide 19: Secondary Extraction
Fort Hills 8 Secondary Extraction Fall 2016 33 Source: Fort Hills Energy Limited Partnership
Slide 20: Secondary Extraction Aerial View
Fort Hills 8 Secondary Extraction Aerial View Fall 2016 34 Source: Fort Hills Energy Limited Partnership
Slide 21: Summary
Fort Hills Summary • Tracking to plan for first oil at end of 2017 • Expect 90% of nameplate capacity by end 2018 • Expect to generate 45 years of cash flows from steady state production of 186 kbpd 35 Source: Fort Hills Energy Limited Partnership, Fall 2016.
Slide 22: Agenda
Projects Agenda Fort Hills Quebrada Blanca Phase 2 36
Slide 23: Feasibility Study Overview
Quebrada Blanca Phase 2 Feasibility Study Overview Project Capital1 Capital Intensity2 C1 Cash Costs2 US$4.7 ~US$16,000 US$1.28 billion $/tonnes annual CuEq per pound Throughput Copper Equivalent Production2 Molybdenum Production2 140,000 300,000 7,700 tonnes per day tonnes per year tonnes per year
Slide 24: Long Life with Resource Optionality
Quebrada Blanca Phase 2 Long Life with Resource Optionality Initial Mine Life Copper in Reserves Copper in Resources 25 14.2 11.1(M&I) 17.5(I) years billion pounds billion pounds • LOM Reserves • 1.26 billion tonnes (P&P), at 0.51% Cu and 0.019% Mo • Resources • 1.32 billion tonnes (M&I), at 0.38% C
Slide 25: Key Infrastructure Components
Quebrada Blanca Phase 2 Key Infrastructure Components • Mine & 140 kt/d concentrator, • Tailings facility for 1.26 Bt • Concentrate pipeline (164 km) • Port & filter plant at Punta Patache • Desal plant & pipeline (160 km) • Supporting roads and infrastructure • 3rd party power and transmission Comm
Slide 26: Existing Site – Expanded Footprint
Quebrada Blanca Phase 2 Existing Site – Expanded Footprint • Concentrator located west of existing QB mine pit • QB2 pit is open to east (existing plant site) and at depth • Waste dumps located north & south of existing pit • Tailings Management Facility (TMF) located directly south of the concentra
Slide 27: Project Wide Optimization Since 2012
Quebrada Blanca Phase 2 Project Wide Optimization Since 2012 CONCENTRATOR TAILINGS FACILITY METALLURGY Increased milling rate New Location: Updated recovery to reflect use of +5 kt/d (135 to 140 kt/d) 7 km vs 45 km from concentrator desalinated water Deleted two ore reclaim feeders Reduced capacity:
Slide 28: Attractive Production Metrics
Quebrada Blanca Phase 2 Attractive Production Metrics Annual Average Category Unit First First LOM 5 Years 10 Years Mining Total material moved million t 97.7 96.2 82.4 Processing Total ore processed million t 50.7 50.9 50.9 Head grade – copper % 0.60% 0.56% 0.51% Head grade – molybdenum % 0.020% 0.
Slide 29: Competitive Capital Intensity
Quebrada Blanca Phase 2 Competitive Capital Intensity Capital Intensity of Chilean Copper Projects $25,000 US$ per Annual Tonne CuEq Production $20,000 QB2 Range $15,000 $10,000 $5,000 $0 2008 2009 2010 2011 2012 2013 2014 2015 QB2’s capital intensity is comparable with recent Chilean projects 43 So
Slide 30: Robust Economics and Tier 1 Attributes
Quebrada Blanca Phase 2 Robust Economics and Tier 1 Attributes NI 43-101 Case Copper Price (US$ per pound) $2.75 $3.00 $3.25 $3.50 Net present value at 8% (US$ millions) 565 1,253 1,932 2,604 Internal rate of return (%) 9.7% 11.7% 13.5% 15.2% Payback from first production (years) 6.8 5.8 5.0 4.4 Ann
Slide 31: Projects
Projects March 30, 2017 Tim Watson, SVP, Project Development and Engineering Alex Christopher, SVP, Exploration, Projects and Technical Services