Teck Resources Limited Class A · TSX:TECK.A
Teck Resources Limited Class A — Q1 2023 Earnings Presentation
29 slides from Teck Resources Limited Class A's earnings presentation, Apr 26, 2023
Slide 1: First Quarter 2023 Conference Call
First Quarter 2023 Conference Call April 26, 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: Focused on Value
Focused on Value Stand-alone base metals We will pursue a simpler and steelmaking coal and more direct separation business is the best path to to unlock the full value of unlock value Teck for shareholders Global Metals and Mining Conference 4
Slide 5: Building on Teck's Inherent Value
Building on Teck’s Inherent Value Ramp up QB2 and Industry leading World-class doubling copper copper growth steelmaking production pipeline coal in high demand Global Metals and Mining Conference 5
Slide 6: Moving Forward
Moving Forward Will pursue a simpler and more direct separation Heard shareholder feedback on Will not pursue any transaction separation proposal that exposes shareholders to unacceptable risk and uncertainty Global Metals and Mining Conference 6
Slide 7: Crystal Prystai, Senior Vice President and Chief Financial Officer
Crystal Prystai Senior Vice President and Chief Financial Officer Global Metals and Mining Conference
Slide 8: Financial Results Q1 2023
Financial Results Q1 2023 Gross Profit before D&A Adjusted EBITDA Adjusted Diluted EPS $2.1B $2.0B $1.78 Share Buybacks Dividends Paid Debt Repayments Authorized $250M $321M $177M Global Metals and Mining Conference Gross profit before depreciation and amortization (gross profit before D&A) and adju
Slide 9: QB2 Update
QB2 Update Expected to double consolidated copper production at full capacity Key Milestones Achieved in Q1 2023 • First bulk copper concentrate produced • Desalination plant operational and producing water • Water pipeline in service delivering water to the concentrator • Primary crusher and convey
Slide 10: Key Highlights Q1 2023
Key Highlights Q1 2023 Achievements across all four pillars of our copper growth strategy Significantly advanced Step-change in Returning significant Progressed our our copper growth rebalancing our portfolio cash to shareholders sustainability goals • Production of first bulk • Closed sale
Slide 11: Robust Financial Performance
Robust Financial Performance Profitability ($M) Profit(Loss) before Tax Net Finance Expense D&A Adjustments Adjusted Non-controllable Controllable EBITDA $3,044 218 415 193 Adjusted EBITDA 43 (661) (94) $1,972 (81) (116) (162) (122) (29) 423 30 2,368 1,856 Global Metals and Mining Conference (337) A
Slide 12: Copper Business Unit
Copper Business Unit Operating Metrics Q1 2023 Highlights FY23 Q1 2023 Q1 2022 Guidance • Production of our first bulk copper concentrate at QB2 Price (LME Cash) US$/lb 4.05 4.53 • Copper prices remained above long-term historic Production kt 57 67 390-445 averages, despite the decline in the quarte
Slide 13: Zinc Business Unit
Zinc Business Unit Operating Metrics Q1 2023 Highlights FY22 Q1 2023 Q1 2022 Guidance • Zinc concentrate and refined zinc production impacted by Price (LME Cash) US$/lb 1.43 1.65 weather impacts Production (zinc in concentrate) Kt 62 69 550-580 • Trail operations impacted by maintenance requirements
Slide 14: Steelmaking Coal Business Unit
Steelmaking Coal Business Unit Operating Metrics Q1 2023 Highlights FY23 Q1 2023 Q1 2022 Guidance • Steelmaking coal prices remained well above historic Realized price US$/t 282 357 averages, despite the decline in the quarter Production Mt 6.0 5.6 24.0-26.0 • Strong mining productivity and utilizat
Slide 15: Strong Financial Position
Strong Financial Position Strong Balance Sheet Significant Cash Returns To Shareholders ($M) Liquidity1 Net Debt to Adjusted EBITDA2 $321M in dividends in Q1 2023 $8.0B 0.6x $1.0B in dividends and $2.5B in share buybacks in past five years $2,500 Credit Ratings1 Moody’s Fitch S&P $2,000 Baa3 BBB- BB
Slide 16: Jonathan Price, Chief Executive Officer
Jonathan Price Chief Executive Officer Global Metals and Mining Conference
Slide 17: Driving Long-Term Sustainable Shareholder Value
Driving Long-Term Sustainable Shareholder Value Capitalizing on strong demand in the transition to a low-carbon economy Industry leading Focus on copper growth execution Long-term sustainable Balance growth Sustainability shareholder and cash returns to shareholders leadership value Global Metals an
Slide 18: Appendix
Appendix Global Metals and Mining Conference
Slide 19: Production Guidance
Production Guidance Copper Zinc Previous Current Previous Current Previous Current Previous Current 2022 2023 2023 2024-2026 2024-2026 2022 2023 2023 2024-2026 2024-2026 Actual Guidance Guidance1 Guidance Guidance1 Actual Guidance Guidance1 Guidance Guidance1 Copper2,3,4 Zinc in concentrate2,3,5 Hig
Slide 20: Unit Cost and Sales Guidance
Unit Cost and Sales Guidance Unit Costs Copper2 Zinc3 Steelmaking Coal Previous Current Previous Current Previous Current 2022 2023 2023 2022 2023 2023 2022 2023 2023 (US$/lb) Actual Guidance Guidance1 (US$/lb) Actual Guidance Guidance1 (C$/tonne) Actual Guidance Guidance1 Total cash unit costs 2.02
Slide 21: 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 22: 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 23: 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) 417.
Slide 24: Settlement Pricing Adjustments
Settlement Pricing Adjustments Simplified Settlement Pricing Adjustment Model for Base Metals (Pre-tax settlement pricing adjustment in C$M) Quarterly Outstanding at Outstanding at Pricing March 31, 2023 December 31, 2022 Adjustments Mlbs US$/lb Mlbs US$/lb C$M Copper 134 $ 4.08 168 $ 3.80 $62 Zinc
Slide 25: Endnotes
Endnotes Slide 15: Strong Financial Position Slide 23: Sensitivities 1. As at April 25, 2023. 1. As at April 25, 2023. The sensitivity of our annualized profit(loss) attributable to shareholders and EBITDA to changes in the 2. As at March 31, 2023. Excludes short-term loans at Carmen de Andacollo an
Slide 26: Non-GAAP Financial Measures and Ratios
Non-GAAP Financial Measures and Ratios Global Metals and Mining Conference
Slide 27: 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 28: Reconciliation of Segment EBITDA
Reconciliation of Segment EBITDA Reconciliation between Segmented Profit and Segmented EBITDA Steelmaking 3 months ending March 31, 2023 Copper Zinc Coal Corporate Total Profit (Loss) before Taxes $M 423 105 1,492 (164) 1,856 Net finance expense $M 120 11 25 (126) 30 Depreciation and amortization $M
Slide 29: First Quarter 2023 Conference Call
First Quarter 2023 Conference Call April 26, 2023 Global Metals and Mining Conference