30 slides from Teck Resources Limited Class A's earnings presentation, Jul 27, 2023
Slide 1: Second Quarter 2023 Conference Call
Second Quarter 2023 Conference Call July 27, 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: Jonathan Price, Chief Executive Officer
Jonathan Price Chief Executive Officer Global Metals and Mining Conference
Slide 4: Q2 2023 Highlights
Q2 2023 Highlights • First sale of copper concentrate at QB2 with ramp-up advancing; continue to expect full production rates by the end of 2023 Advanced copper growth; first sale of concentrate at QB2 • Regulatory approval for Zafranal • Finalized EIA application for San Nicolás • Adjusted EBITDA o
Slide 5: Quebrada Blanca 2 Update
Quebrada Blanca 2 Update Key Activities in Q2 2023 • Completed first shipment and sale of copper concentrate • Line 1 is operating well as per expectations and Line 2 is in commissioning • The concentrate pipeline, concentrate filter plant and storage systems are in operation at the port Outlook • D
Slide 6: Crystal Prystai, Chief Financial Officer
Crystal Prystai Senior Vice President and Chief Financial Officer Global Metals and Mining Conference
Slide 7: Financial Results Q2 2023
Financial Results Q2 2023 Gross Profit before D&A Adjusted EBITDA Adjusted Diluted EPS $1.8B $1.5B $1.22 Dividends Paid Share Buybacks Debt Repayments $65M $85M US$147M Global Metals and Mining Conference Gross profit before depreciation and amortization (gross profit before D&A) and adjusted EBITDA
Slide 8: Solid Financial Performance
Solid Financial Performance Profitability ($M) Profit before Tax Net Finance Expense D&A Adjustments Adjusted EBITDA Non-controllable Controllable $3,290 311 417 40 Adjusted 125 EBITDA 138 $1,479 (70) (1,737) (58) (27) (182) 204 431 2,522 39 805 Adjusted EBITDA Global Metals Price and Mining Confere
Slide 9: Copper Business Unit
Copper Business Unit Operating Metrics Q2 2023 Highlights Q2 2023 Q2 2022 FY23 • Copper prices remained above long-term historic Guidance averages Price (LME Cash) US$/lb 3.80 4.28 • Lower production at HVC impacted by harder ore and Production kt 64 72 330-375 lower grades as well as unplanned main
Slide 10: Zinc Business Unit
Zinc Business Unit Operating Metrics Q2 2023 Highlights Q2 2023 Q2 2022 FY23 • Zinc prices continue to be negatively impacted by poor Guidance macro economic conditions and slower than expected Price (LME Cash) US$/lb 1.19 1.79 Chinese economic growth Production (zinc in concentrate) Kt 134 143 550-
Slide 11: Steelmaking Coal Business Unit
Steelmaking Coal Business Unit Operating Metrics Q2 2023 Highlights Q2 2023 Q2 2022 FY23 • Realized steelmaking coal prices remained above Guidance historical averages despite decline from all-time highs Realized price US$/t 264 453 • Improved mining productivity and plant reliability drove 9% Produ
Slide 12: Strong Financial Position
Strong Financial Position Strong Balance Sheet Disciplined Capital Allocation Liquidity1 Net Debt to Adjusted EBITDA2 Credit Ratings • In Q2 2023: $7.0B 0.8x Investment grade − Paid $65M in dividends − Completed $85M in share buybacks − First semi-annual repayment of US$147M on Debt Maturity Ladder2
Slide 13: Jonathan Price, Chief Executive Officer
Jonathan Price Chief Executive Officer Global Metals and Mining Conference
Slide 14: Pursuit of Value
Pursuit of Value Focused on value creation for shareholders Driving organic growth through the development of our pipeline of copper growth projects Engaging with multiple counterparties on proposals regarding the steelmaking coal business Any transaction must reflect the inherent value of the steel
Slide 15: Unrivalled Copper Growth Opportunities
Unrivalled Copper Growth Opportunities Double copper equivalent production by end of 2023, path to double again by 2030 Potential Annual CuEq Production Growth (kt; reporting basis) Unrivaled suite of options diversified by geography, Current Producing Near-Term Development Pipeline Investing Today
Slide 16: Robust Portfolio of Near-Term Development Projects
Robust Portfolio of Near-Term Development Projects San Nicolás QBME Zafranal NewRange Galore Creek High grade asset Continued production Peru’s next US producer of Canada’s with industry growth from copper mine critical battery largest copper leading returns massive resource metal concentrates devel
Slide 17: Significant Near-Term Copper Growth Optionality
Significant Near-Term Copper Growth Optionality Potential Timelines for Near-Term Copper Growth Projects Maximizing optionality and value Engineering and Permitting Target Sanction Window Construction Production • Accelerated project development 2023 2024 2025 2026 2027 2028 2029 across portfolio th
Slide 18: Responsible Value Creation
Responsible Value Creation Capitalizing on strong demand in the transition to a low-carbon economy Unlock the value of Focus on industry leading execution copper growth Long-term sustainable Balance growth Sustainability shareholder and cash returns to shareholders leadership value Global Metals and
Slide 19: Appendix
Appendix Global Metals and Mining Conference
Slide 20: Production Guidance
Production Guidance Copper Zinc Previous Current Previous Current Previous Current Previous Current 2022 2023 2023 2024-2026 2024-2026 2022 2023 2023 2024-2026 2024-2026 Actual Guidance Guidance1 Guidance Guidance1 Actual Guidance Guidance1 Guidance Guidance1 Copper2,3,4 Zinc in concentrate2,3,5 Hig
Slide 21: Unit Cost and Sales Guidance
Unit Cost and Sales Guidance Unit Costs Copper2 Zinc3 Steelmaking Coal Previous Current Previous Current Previous Current 2022 2023 2023 2022 2023 2023 2022 2023 2023 (US$/lb) Actual Guidance Guidance1 (US$/lb) Actual Guidance Guidance1 (C$/tonne) Actual Guidance Guidance1 Total cash unit costs 2.02
Slide 22: Capital Expenditures Guidance
Capital Expenditures Guidance Sustaining and Growth Capital Capitalized Stripping Previous Current Current 2022 2023 2023 2022 Previous 2023 Actual Guidance Guidance1 Actual 2023 Guidance Guidance1 Sustaining Capitalized Stripping Copper2 $ 297 $ 510 $ 510 Copper $ 336 $ 295 $ 295 Zinc 244 150 150 Z
Slide 23: Water Treatment Guidance
Water Treatment Guidance Steelmaking Coal Capital Expenditures Related to Water Treatment1 Previous Current Previous Current Previous Current Long-Term Long-Term 2022 2023 2023 2023-2024 2023-2024 Guidance Guidance3 Actual Guidance Guidance2 Guidance Guidance2 (C$/tonne) (C$/tonne) Sustaining capita
Slide 24: Sensitivities
Sensitivities Sensitivity of our Annualized Profit Attributable to Shareholders and EBITDA1 Estimated Effect on Profit Attributable Estimated Effect 2023 Mid-Range to Shareholders3 on EBITDA3 Production Estimates2 Changes ($ in millions) ($ in millions) US$ exchange C$0.01 $ 60 $ 98 Copper (kt) 352.
Slide 25: Settlement Pricing Adjustments
Settlement Pricing Adjustments Simplified Settlement Pricing Adjustment Model for Base Metals (Pre-tax settlement pricing adjustment in C$M) Quarterly Outstanding at Outstanding at Pricing June 30, 2023 March 31, 2023 Adjustments Mlbs US$/lb Mlbs US$/lb C$M Copper 126 $ 3.77 134 $ 4.08 $(53) Zinc 14
Slide 26: Endnotes
Endnotes Slide 12: Strong Financial Position Slide 22: Capital Expenditures Guidance 1. As at July 26, 2023. 1. As at July 26, 2023. See Teck’s Q2 2023 press release for further details. 2. As at June 30, 2023. Excludes short-term loans at Carmen de Andacollo and loans at Antamina. 2. Copper sustain
Slide 27: Non-GAAP Ratios
Non-GAAP Financial Measures and Ratios Global Metals and Mining Conference
Slide 28: Non-GAAP 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 29: Reconciliation of Segment EBITDA
Reconciliation of Segment EBITDA Reconciliation between Segmented Profit and Segmented EBITDA Steelmaking 3 months ending June 30, 2023 Copper Zinc Coal Corporate Total Profit (Loss) before Taxes $M (169) 89 1,051 (166) 805 Net finance expense $M 129 14 28 132 39 Depreciation and amortization $M 113
Slide 30: Second Quarter 2023 Conference Call
Second Quarter 2023 Conference Call July 27, 2023 Global Metals and Mining Conference