Teck Resources Limited Class A · TSX:TECK.A
Teck Resources Limited Class A — Global Metals and Mining Conference (June 2022)
40 slides from Teck Resources Limited Class A's conference presentation, Jun 8, 2022
Slide 1: Investor Presentation
Investor Presentation June 8, 2022 Global Metals and Mining Conference 1
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements Both these slides and the accompanying oral presentation contain certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to as forward-looking statements). These statements relate
Slide 3: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements ground control problems, adverse weather conditions or process upsets and equipment malfunctions; associated with any damage to our reputation; associated with labour disturbances and availability of skilled labour; associated with fluctuations in the mar
Slide 4: Copper Growth
Copper Growth Our investment proposition Industry Rebalance portfolio Balance growth Leadership leading of high-quality assets and cash returns in ESG and Long-term copper growth to low-carbon metals to shareholders operational excellence sustainable • QB2 expected to double • Proven operational • I
Slide 5: About Teck
About Teck Our Purpose To provide essential resources the world is counting on to make life better while caring for the people, communities, and land that we love. Copper Zinc Steelmaking Coal Energy A significant copper One of the largest The world’s second largest Interest in an oil sands mine pro
Slide 6: ESG Leadership
ESG Leadership Committed to the highest standards of safety and sustainability Material Sustainability Focus Ratings Health and Safety • 90% reduction in HPIF from 2010 to 2021 Top-ranked mining company DJSI World & North American Indices Climate Change • Commitment to net-zero operations by 2050 •
Slide 7: Our Climate Change Strategy
Our Climate Change Strategy Starting from a strong position Positioning Teck Support for Reducing Adapting to the for a low-carbon carbon pricing our carbon physical impacts economy policies footprint of climate change • Producing metals and • We support broad-based • Net-zero operations by 2050 • I
Slide 8: Pathway to Net Zero by 2050
Pathway to Net Zero by 2050 Carbon Emission Reductions Electricity Diesel Coal and Natural Gas Fugitive Methane Offsets & Removals 4 Piloting and adopting smaller zero emissions vehicles (e.g. Electric Buses) Contracted 50% of operational energy at QB2 from renewable sources Sourcing 100% renewable
Slide 9: Portfolio of Future-Essential Resources
Portfolio of Future-Essential Resources Capitalizing on strong demand in the transition to a low-carbon economy GROW MAXIMIZE VALUE, DRIVE FREE CASH FLOW Copper Zinc Steelmaking Coal Global Growth to 2050 2.3x 2.1x 1.0x Seaborne steelmaking coal Demand Green technologies, electrification Galva
Slide 10: Near-Term Copper Growth Through QB2
Near-Term Copper Growth Through QB2 Doubling our consolidated copper production by 2023 QB2 on track for startup in Q4 2022 C1 Cash Cost3 & AISC4 Curve5 (US$/lb, 2023E) AISC Cash Cost • Large, long-life deposit capable of supporting multiple expansions • Very low strip ratio of 0.7 $3.50 • Competiti
Slide 11: Transformational Growth Rebalances Portfolio to Copper
Transformational Growth Rebalances Portfolio to Copper Industry-leading copper growth profile QB2 drives Teck’s consolidated copper production growth 2021A–2023E1 QB2 at full production rebalances our portfolio to copper Revenue by Business Unit Teck 106% Energy Energy 4% 7% Copper Copper 23% 34% St
Slide 12: Unlocking the Value of our Leading Base Metals Growth
Unlocking the Value of our Leading Base Metals Growth Base Metals business growth rivals leading copper peers Consolidated Copper Equivalent Production1 (kt CuEq) Copper Zinc (CuEq) Other (CuEq) Attributable (CuEq) Teck Antofagasta First Quantum +80% +1% +5% 960 912 861 818 810 479 2021A 2023E 2021A
Slide 13: Quebrada Blanca Mill Expansion
Quebrada Blanca Mill Expansion Fast-tracking additional near-term copper growth QB Mill Expansion (QBME) as envisioned Defining the next expansion at QB First Production Throughput Increase Avg First 5-Years Incremental Production • Multiple expansion options considered in scoping work 2026 +50% 136
Slide 14: Quebrada Blanca Mill Expansion
Quebrada Blanca Mill Expansion Planning on leveraging QB2 project infrastructure Mining • Increased mining rates and fleet size Milling • Second primary crusher • Third grinding and floatation circuit • Additional tailings thickener, stockpile Limited changes to other facilities • Pipelines: no new
Slide 15: Outstanding Copper Growth Pipeline
Outstanding Copper Growth Pipeline Potential copper equivalent from growth options is 5x current production1 Unrivaled suite of options diversified 2023 to 2027 2028 to 2032 2033 + by geography, scale, time to Potential Potential Potential development and by-products +530% • Balance growth with retu
Slide 16: Zinc Satellite Initiative
Zinc Satellite Initiative Adding value to our high-quality portfolio of zinc development assets Zinc outperforms market expectations Largest Undeveloped Zinc Deposits • Declining production from existing primary zinc mines Teck has several undeveloped high-grade zinc assets1 (>10% Pb + Zn) • Underin
Slide 17: Portfolio of Zinc Development Options
Portfolio of Zinc Development Options High quality projects in 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 extens
Slide 18: Cash Flow Inflection
Cash Flow Inflection Approaching potential significant cash flow generation with QB2 at full production Illustrative QB2 Net Cash Flow Scenarios at Full Production1 Operating Cash Flow Sustaining Capital Project Finance Repayment 2022E QB2 Capex2 $1.5B $1.4B $1.2B $2.0B $1.9B Inflow $1.7B $0.1B $0.1
Slide 19: Financial Strength
Financial Strength Strong Balance Sheet Debt Maturity Ladder2 (US$M) Liquidity1 Net Debt to Adjusted EBITDA2 Credit Rating1 No significant maturities prior to 2030 $8.0B 0.6x Investment 795 grade 609 550 490 399 377 108 Track Record of Significant Cash Returns to Shareholders3 2022 2023 2024 2025 20
Slide 20: Capital Allocation Framework
Capital Allocation Framework Cash Flow Sustaining Base Supplemental from Operations Capital Dividend Shareholder Distributions after interest and finance charges, including stripping $0.50 per share minimum 30% available cash flow RETURNS lease payments and distributions to non-controlling interests
Slide 21: Cash Flow and Returns with QB2 at Full Production
Cash Flow and Returns with QB2 at Full Production1 Illustrative scenarios indicate potential available cash flow of $6-7 per share Operating Cash Flow Available Cash Flow2 Minimum 30% Shareholder Distribution Balance for Growth and Additional Returns US$4.50/lb Copper US$4.00/lb Copper US$3.50/lb Co
Slide 22: Driving Long-Term Sustainable Shareholder Value
Driving Long-Term Sustainable Shareholder Value Industry leading Rebalance portfolio copper growth of high-quality assets Long-term to low-carbon metals sustainable shareholder value Balance growth Leadership and cash returns in ESG and to shareholders operational excellence Global Metals and Mining
Slide 23: Appendix
Appendix Global Metals and Mining Conference
Slide 24: For Further Information
For Further Information Supplemental Information for Investors Contact Investor Relations Click here or scan the QR code below to reference slides investors@teck.com Toll-free in Canada and the U.S.: 1.877.759.6226 Outside Canada and the U.S.: 604.699.4257 Global Metals and Mining Conference 24
Slide 25: Zinc Satellite
Zinc Satellite Global Metals and Mining Conference 25
Slide 26: Solid Long-Term Zinc Market Fundamentals
Solid Long-Term Zinc Market Fundamentals Supply continues to lag demand with positive and sustained zinc metal price response Underinvestment in global exploration for primary zinc deposits Zinc Operations and Project Pipeline1 • Zinc-focused exploration investment has only been 26% of copper Base C
Slide 27: World Class Zinc Business
World Class Zinc Business Zinc Mining Operations Gross Profit Margins Large scale, low-cost Before Depreciation and Amortization (%)1 Quality assets with strong margins 60% • Red Dog is a first quartile cash cost operation • Trail produces refined zinc, lead and various critical metals, and has 55%
Slide 28: 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% Pb1 Aktigiruq (Zn-Pb), USA Teck 100%
Slide 29: Guidance
Guidance Global Metals and Mining Conference 29
Slide 30: Production Guidance
Production Guidance Production (000’s tonnes except as noted) 2021 Actual 2022 Guidance1 3-Year Guidance1 (2023-2025) Copper2,3,4 Highland Valley 130.8 127-133 130-160 Antamina 100.2 91-96 90-95 Carmen de Andecollo 44.8 45-50 50-60 Quebrada Blanca6 11.5 10-11 245-300 Total copper6 287.3 273-290 515-
Slide 31: Sales and Unit Cost Guidance
Sales and Unit Cost Guidance Sales Unit Costs Q1 2022 Actual Q2 2022 Guidance1 2021 Actual 2022 Guidance1 Zinc in concentrate Copper2 (US$/lb) Total cash unit costs 1.80 1.85-1.95 Red Dog (kt) 145 50-70 Net cash unit costs 1.39 1.40-1.50 Steelmaking coal (Mt) 6.0 6.3-6.7 Zinc3 (US$/lb) Total cash un
Slide 32: Capital Expenditures Guidance
Capital Expenditures Guidance Sustaining and Growth Capital (Teck’s share in C$ millions) Sustaining and Growth Capital (cont.) (Teck’s share in C$ millions) 2021 Actual 2022 Guidance1 2021 Actual 2022 Guidance1 Sustaining Total before SMM/SC contributions $ 4,046 $ 3,930 - 4,230 Copper $ 184 $ 340
Slide 33: Water Treatment Guidance
Water Treatment Guidance Steelmaking Coal Capital Expenditures and Operating Costs Related to Water Treatment1 Long-Term 2021 2022 3-Year Guidance Guidance3 (C$ millions, unless otherwise noted) Actual Guidance (2022-2024) (C$/tonne) Capital Expenditures Sustaining capital (water management and wate
Slide 34: QB2 Project Economics Comparison
QB2 Project Economics Comparison Reserve Sanction Case1 Case2 Mine Life Years 28 28 Strip Ratio First 5 Full Years 0.16 0.44 LOM3 0.41 0.70 C1 Cash Cost4 First 5 Full Years US$/lb $1.29 $1.28 LOM3 US$/lb $1.47 $1.37 AISC5 First 5 Full Years US$/lb $1.40 $1.38 LOM3 US$/lb $1.53 $1.42 Global Metals an
Slide 35: QB2 Reserves and Resources Comparison
QB2 Reserves and Resources Comparison Reserve Case (as at Nov 30, 2018)1,2 Sanction Case (as at Nov 30, 2018)2,4 Cu Mo Silver Cu Mo Silver Reserves Mt Grade % Grade % Grade ppm Reserves Mt Grade % Grade % Grade ppm Proven 476 0.51 0.018 1.40 Proven 409 0.54 0.019 1.47 Probable 924 0.47 0.019 1.25 Pr
Slide 36: Endnotes
Endnotes Slide 4: Copper Growth Slide 16: Zinc Satellite Initiative 1. Five years from January 1, 2017 to December 31, 2021. 1. Sources: S&P Global Market Intelligence, SNL Metals & Mining database. For the Aktigiruq, Anarraaq and Teena deposits the sources are as follows: Slide 9: Portfolio of Futu
Slide 37: Endnotes
Endnotes Slide 28: Portfolio of Zinc Development Options Slide 32: Capital Expenditures Guidance 1. Teck 2021 AIF Report and NI 43-101 Technical Report for the Red Dog Mine, February 21, 2017 1. As at April 26, 2022. See Teck’s Q1 2022 press release for further details. 2. Aktigiruq is reported as a
Slide 38: Non-GAAP Financial Measures and Ratios
Non-GAAP Financial Measures and Ratios Global Metals and Mining Conference 38
Slide 39: 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,
Slide 40: Investor Presentation
Investor Presentation June 8, 2022 Global Metals and Mining Conference 1
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