Teck Resources Limited Class A · TSX:TECK.A
Teck Resources Limited Class A — CIBC 25th Annual Institutional Investor Conference 2022
172 slides from Teck Resources Limited Class A's conference presentation, Jan 20, 2022
Slide 1: 25th Annual Institutional Investor Conference
25th Annual Institutional Investor Conference January 20, 2022 Don Lindsay President and Chief Executive Officer
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements Both these slides and the accompanying oral presentations 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 Securit
Slide 3: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements assumption of completion based on current project assumptions and assumptions regarding the final feasibility study; assumptions regarding QB3 include assumptions regarding the receipt of permits. Assumptions regarding QB2 include current project assumpti
Slide 4: Teck is Poised for Growth
Teck is Poised for Growth Providing essential metals and minerals for a low-carbon world Right Opportunities • Strong demand for our metals and minerals, led by growth and decarbonization Right Assets • Industry leading copper growth, strengthening existing high-quality, low carbon assets Right Appr
Slide 5: Health & Safety and Sustainability
Health & Safety and Sustainability Health & Safety Inclusion & Climate Communities Water A core value for Teck Diversity Rebalancing to Serving the needs of Protecting water Enhancing low-carbon metals communities and quality and reducing 80% reduction in Indigenous Peoples use representation and HP
Slide 6: Accelerated Need for Essential Metals And Minerals for a Low-Carbon World
Accelerated Need for Essential Metals And Minerals for a Low-Carbon World • Strong demand for Copper Demand1 (kt) metals and minerals driven by decarbonization, population growth and a rising middle class • Unprecedented pandemic monetary and fiscal stimulus Generation and Grid Charging Non-ICE Grid
Slide 7: High-Quality Steelmaking Coal Is Required for the Low-Carbon Transition
High-Quality Steelmaking Coal Is Required for the Low-Carbon Transition Seaborne Steelmaking Coal Supply Changes With All Projects Through 20501 (Mt) • The magnitude of 235 222 188 steelmaking coal demand will be 216 ultimately driven by 191 185 147 the pace of decarbonization (38) 60 3 (64) 8 25 (5
Slide 8: Teck and the Low-Carbon Transition
Teck and the Low-Carbon Transition We believe Teck’s strategy will ensure we are well-positioned for changes in demand for mining commodities driven by the transition to a low-carbon world Today 10+ Years 20+ Years 1 Focus on copper growth to 2 Prudently growing our copper 3 Leading copper producer
Slide 9: Prudent Copper Growth Strategy
Prudent Copper Growth Strategy Accelerate capital efficient growth in copper Maximize cash flows from operations Canada to fund copper growth and shareholder returns 156 kt Chile Strengthen Peru 227 kt existing high-quality assets through RACE21TM 86 kt Discipline in capital allocation, maximizing s
Slide 10: Industry Leading Copper Growth
Industry Leading Copper Growth Teck has continued to invest in growth projects; peers have not WoodMac: Consolidated Copper Production Growth1 Teck2 vs. Peers3 2021E-2023E 120% 102% 100% 80% 60% 40% Peru 21% 86 kt 20% 11% 0% Teck Copper Peer Diversified Peer Average Average Teck provides investors e
Slide 11: Portfolio of Copper Growth Options
Portfolio of Copper Growth Options Well understood resource base creates multiple options • High quality resources in very attractive mineral Teck’s Consolidated Copper Asset districts including Canada, the U.S., Mexico, Reserves and Resources (CuEq Mt)2 Chile, and Peru ‒ Including ~22 million ounce
Slide 12: Significant Base Metals Growth
Significant Base Metals Growth Base Metals business growth rivals leading copper peers Consolidated Copper Equivalent Production 1 (kt CuEq) Copper Zinc (CuEq) Other (CuEq) Attributable (CuEq) Teck First Quantum Antofagasta 11% 988 855 887 0% 832 828 62% 528 Teck Teck First Quantum First Quantum Ant
Slide 13: QB2 is Delivering to Key Milestones and Positioning for Start-Up
QB2 is Delivering to Key Milestones and Positioning for Start-Up World class COVID-19 protocols deliver results • Vaccinations, COVID-19 protocols and testing key enablers • Continued ramp-up of construction workforce Focus on delivering to key milestones • Critical path through the grinding circuit
Slide 14: Teck is Nearing an Inflection Point
Teck is Nearing an Inflection Point Transitioning from cash outflows to potential for significant EBITDA1 generation 2021 QB2 Illustrative QB2 EBITDA1 Scenarios Capex Guidance2 At Full Production C$2.6B C$2.2B C$1.8B US$4.50/lb Copper US$4.00/lb Copper US$3.50/lb Copper (C$2.5B) Illustrative Proform
Slide 15: Solid Track Record of Cash Returns to Shareholders
Solid Track Record of Cash Returns to Shareholders >C$3.0 billion of dividends and C$1.7 billion of share buybacks 2011-2020 Teck’s Dividends and Buybacks (C$M) $800 $600 $400 $200 $0 1 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 YTD Total Dividend Paid Share Buybacks Significant EBITDA2
Slide 16: Teck is Poised for Growth
Teck is Poised for Growth Right Right Right Right Opportunities Assets Approach Team Strong demand for Industry leading Highest standards Our people deliver our metals and copper growth, of sustainability in the optimal mix of minerals, led by strengthening everything we do, industry leading growth
Slide 17: Appendix
Appendix Teck
Slide 18: Endnotes
Endnotes Slide 6: Accelerated Need for Essential Metals and Minerals for a Low-Carbon World 1. Source: CRU Mobility and Energy Futures – Perspectives towards 2035. Approximate figures; total copper demand from CRU’s Copper Market Outlook. 2. Consolidated basis. Slide 7: High-Quality Steelmaking Coal
Slide 19: Overview and Financial Strategy
Overview and Financial Strategy
Slide 20: About Teck
About Teck High-quality assets in the Americas Proven operational excellence underpinning cost competitiveness Doubling of copper production by 2023 through QB21 Significant value potential from a portfolio of copper growth options Recognized industry leader in ESG performance Operations & Strong ba
Slide 21: Global Customer Base
Global Customer Base Revenue contribution from diverse markets 2020 Gross Profit Before 2020 Revenue by Depreciation and Amortization1 2020 Revenue by Business Unit by Business Unit Geography Latin America 2% Energy 5% Energy -8% Europe 13% China 21% Copper 27% Copper 44% India 6% North Zinc 30% Zin
Slide 22: Strong Financial Position
Strong Financial Position Balance Sheet • Rated investment grade by all four agencies • No significant note maturities prior to 20301 Liquidity • C$5.4 billion2 of liquidity available • Converted our US$4 billion committed credit facility into a Sustainability-Linked facility in support of Teck’s su
Slide 23: Illustrative Cash Flows - QB2 Full Production
Illustrative Cash Flows - QB2 Full Production Scenarios indicate potential Available Cash Flow of C$4–6/share US$4.50/lb Copper Scenario US$4.00/lb Copper Scenario US$3.50/lb Copper Scenario $5.73/share $4.93/share $4.13/share For further details please see Teck Illustrative Cash Flows – QB2 Full Pr
Slide 24: Teck Illustrative Cash Flows - QB2 Full Production
Teck Illustrative Cash Flows - QB2 Full Production Scenarios indicate potential Available Cash Flow of C$4–6/share Illustrative Available Cash Flow (C$B) US$4.50/lb US$4.00/lb US$3.50/lb Copper C$/share9 Copper C$/share9 Copper C$/share9 Adjusted EBITDA1 $6.0 $5.6 $5.3 QB2 EBITDA (100%)2 2.6 2.2 1.8
Slide 25: Capital Allocation Framework
Capital Allocation Framework Shareholder distributions of 30-100% of Available Cash Flow1 SUSTAINING SUPPLEMENTAL BASE CAPITAL SHAREHOLDER DIVIDEND (including stripping) DISTRIBUTIONS CASH FLOW FROM OPERATIONS after interest and finance Plus at Least 30% charges, lease payments Available Cash Flow1
Slide 26: Production Guidance
Production Guidance 2020 Actual 2021 Guidance1 3-Year Guidance1 Units in 000’s tonnes (excluding steelmaking coal, molybdenum, and bitumen) (2022-2024) Copper2,3,4 Highland Valley 119.3 128-133 135-165 Antamina 85.6 91-95 90 Carmen de Andecollo 57.4 46-51 50-60 Quebrada Blanca6 13.4 10-11 - Total co
Slide 27: Sales and Unit Cost Guidance
Sales and Unit Cost Guidance Sales Q3 2021 Actual Q4 2021 Guidance1 Zinc2 Red Dog (kt) 162 140-155 Steelmaking coal (Mt) 5.9 5.2-5.7 Unit Costs 2020 Actual 2021 Guidance1 Copper (US$/lb)3 Total cash unit costs $1.57 $1.65-1.75 Net cash unit costs4 $1.28 $1.30-1.40 Zinc (US$/lb)5 Total cash unit cost
Slide 28: Capital Expenditures Guidance
Capital Expenditures Guidance Sustaining and Growth Capital QB2 2020 2021 2020 2021 (Teck’s share in CAD$ millions) Actual Guidance1 (Teck’s share in CAD$ millions) Actual Guidance1 Sustaining QB2 capital expenditures $ 1,643 $ 2,500 Copper $ 161 $ 160 Total before SMM/SC contributions 3,129 3,945 Z
Slide 29: Water Treatment Guidance
Water Treatment Guidance Excerpt from Teck’s Q3 2021 Press Release There is no change to our 2021 guidance on water-related spending. We expect capital spending of approximately $255 million in 2021 on water treatment (AWTFs and SRFs) and water management (source control, calcite management and trib
Slide 30: Commodity Price Leverage
Commodity Price Leverage1 2021 Mid-Range Estimated Effect on Estimated Effect on Production Estimates2,5 Change Annualized Profit3 ($M) Annualized EBITDA3 ($M) US$ exchange C$0.01 $ 78 $ 123 Copper (kt) 282.5 US$0.01/lb 4 7 Zinc4 (kt) 905.0 US$0.01/lb 9 12 Steelmaking coal (Mt) 25.5 US$1/tonne 18 29
Slide 31: Tax-Efficient Earnings in Canada and Chile
Tax-Efficient Earnings in Canada and Chile Canada: ~C$4.5 billion in available tax pools at December 31, 2020 • Includes: ‒ $3.8 billion in Canadian federal net operating loss carryforwards ‒ $0.3 billion in Canadian Development Expenses (30% declining balance p.a.) ‒ $0.4 billion in allowable capit
Slide 32: Share Structure & Principal Shareholders
Share Structure & Principal Shareholders Teck Resources Limited at December 31, 2021 Shares Held Percent Voting Rights Class A Shareholdings Temagami Mining Company Limited 4,300,000 55.4% SMM Resources Inc (Sumitomo) 1,469,000 18.9% Other 1,996,503 25.7% 7,765,503 100.0% Class B Shareholdings Temag
Slide 33: Collective Agreements
Collective Agreements Operation Expiry Dates Highland Valley Copper September 30, 2021 Trail Operations May 31, 2022 Cardinal River June 30, 2022 September 30, 2022 Carmen de Andacollo December 31, 2022 Line Creek May 31, 2024 Antamina July 31, 2024 January 31, 2025 Quebrada Blanca March 31, 2025 No
Slide 34: Endnotes: Overview and Financial Strategy
Endnotes: Overview and Financial Strategy Slide 21: Global Customer Base 1. Gross profit before depreciation and amortization is a non-GAAP financial measure. See “Non-GAAP Financial Measures” slides. Slide 22: Strong Financial Position 1. As at September 30, 2021. 2. As at October 26, 2021. Slide 2
Slide 35: Endnotes: Overview and Financial Strategy
Endnotes: Overview and Financial Strategy Slide 27: Sales and Unit Cost Guidance 1. As at October 26, 2021. See Teck’s Q3 2021 press release for further details. Steelmaking coal sales for Q4 2021 was updated on December 5, 2021. Please see Teck’s press release dated December 5, 2021 for further det
Slide 36: ESG Leadership
ESG Leadership Teck
Slide 37: Health, Safety, Environment and Communities Performance
Health, Safety, Environment and Communities Performance Responding to COVID-19―Five Pillar Approach Prevention Employee Communities & Business Communication Support Public Health Continuity Prioritizing the health and safety of our people and communities 37
Slide 38: Health, Safety, Environment and Communities Performance
Health, Safety, Environment and Communities Performance • Safety performance in H1 2021 vs. FY 2020 Teck Operated Incident Frequency - 38% reduction in High-Potential Incidents (per 200,000 hours worked) - 26% decrease in Lost-Time Injury Frequency 0.70 0.60 • Continued implementation of High 0.50 P
Slide 39: Health, Safety, Environment and Communities Performance
Health, Safety, Environment and Communities Performance Indigenous Communities Peoples Engaging throughout the mining Respect for culture and heritage; early life-cycle to create lasting benefits engagement and focus on working to achieve Free, Prior and Informed Consent (FPIC) • $10.8 billion in ec
Slide 40: Health, Safety, Environment and Communities Performance
Health, Safety, Environment and Communities Performance Water Tailings Working to protect water quality and Meeting global best practices for safety at our reducing use in water-scarce regions. tailings facilities throughout their life-cycle • Tripling Elk Valley treatment capacity • Fully applying
Slide 41: Health, Safety, Environment and Communities Performance
Health, Safety, Environment and Communities Performance Biodiversity & Responsible Reclamation Production Working towards a net-positive impact Reducing waste and pollution and keeping on biodiversity materials in use • 5,930 hectares of cumulative land • 27,583 tonnes of waste recycled in 2020 recl
Slide 42: Health, Safety, Environment and Communities Performance
Health, Safety, Environment and Communities Performance Inclusion, Equity & Diversity Governance Fostering a workplace where everyone is Transparency and accountability to drive results included, valued and equipped for today for all our stakeholders and the future • 25% of Teck’s board of directors
Slide 43: Focus on Sustainability Leadership
Focus on Sustainability Leadership Ambitious sustainability goals in eight strategic themes Health and Safety Climate Change Responsible Production Our People Water Tailings Management Communities and Biodiversity and Indigenous Peoples Reclamation 43
Slide 44: Climate Change
Climate Change Starting from a strong position Well-positioned Among lowest Carbon pricing for a Low-Carbon carbon intensity already built into Economy miners globally majority of business CO2 Copper Intensity Curve (2020), t CO2e/t Copper equivalent CO2 Zinc Intensity Curve (2020), t CO2e/t Zinc eq
Slide 45: Climate Change
Climate Change Our climate strategy Positioning Teck for Support for appropriate Reducing our Adapting to the a low-carbon economy carbon pricing policies carbon footprint physical impacts • Producing metals and • We support broad-based Long-term targets: of climate change minerals required for effe
Slide 46: Climate Change
Climate Change Our pathway to net zero 2020‒2030: Target readily available; cost-competitive technologies in these areas Electrification & Abatement alternative material Electrification & Methane recovery Options Renewable energy handling low-carbon fuels & abatement Offsets Emissions Power supply M
Slide 47: Sustainability Reporting and Rankings
Sustainability Reporting and Rankings Our Reporting Frameworks ESG Rankings Top-ranked mining company GRI Standards World & North American Indices Gold Class Award 2021 SASB Standards Top ranked North American Mining company Task Force on Climate Related Financial Disclosures (TCFD) Top percentile,
Slide 48: ESG Resources for Investors
ESG Resources for Investors Holistic reporting suite • Sustainability reporting for 20 years in Core accordance with the Global Reporting Initiative (GRI) Standards and G4 Mining and Metals Sector Disclosures • Sustainability Report is aligned with Sustainability Accounting Standards Board (SASB) •
Slide 49: Near-Term Copper Growth - QB2 Project
Near-Term Copper Growth - QB2 Project Photo: Concentrator, August 2021
Slide 50: QB2 Project
QB2 Project Executing on a world class development asset Highlights Location Large, long-life deposit Chile Peru Very low strip ratio Bolivia Arica y Arica Parinacota Region Low all-in sustaining costs (AISC)1 Cerro Tarapacá Colorado Collahuasi Region Potential to be a top 20 producer BHP An
Slide 51: QB2's Competitive Cost Position
QB2’s Competitive Cost Position Competitive Operating Cost & Capital Intensity Low Cash Cost Position • Given the exceptionally low strip ratio, consistent grade C1 Cash Cost2 & AISC3 Curve1 (US$/lb, 2023E) profile, compact site layout, and high level of automation, QB2 is expected to have attractiv
Slide 52: Large, Long Life Deposit at Quebrada Blanca
Large, Long Life Deposit at Quebrada Blanca • QB2 uses only ~18% of the 2020 reserve and Significant extension potential resource tonnage1 • Deposit is capable of supporting a very long mine life based on throughput rate of 143 ktpd2 Reserve and Resource Tonnage (Mt) by utilizing further tailings ca
Slide 53: QB2 Funding Model
QB2 Funding Model Minimized Teck execution funding through partnership and project finance QB2 Funding Model - Post January 2019 (US$B) 6.0 Ownership – 0% US$5.2 billion Funding – 48% 5.0 0.3 1.3 1.1 4.0 Ownership – 30% 1.1 Funding – 37% 3.0 1.8 0.3 0.3 2.0 Ownership – 60% 1.3 Funding – 15% 1.0 2.1
Slide 54: QB2 Project Finance Facility
QB2 Project Finance Facility • Senior debt will continue to be drawn pro-rata under a pre-determined Senior Debt-to-Shareholder funding ratio until US$2.5 billion is drawn • Pre-completion, senior debt is guaranteed on a pro-rata basis (after consideration of ENAMI’s 10% carried interest) ‒ Teck 66.
Slide 55: ENAMI Interest in Quebrada Blanca
ENAMI Interest in Quebrada Blanca Organizational Chart • The government of Chile owns a 10% non-funding interest in Compañía Minera Teck Quebrada Blanca Teck SMM SC S.A. (CMTQB) through its state-run minerals company, Empresa Nacional de Minería (ENAMI) 100% 83.33% 16.67% • ENAMI has been a partner
Slide 56: Quebrada Blanca Accounting Treatment
Quebrada Blanca Accounting Treatment Balance Sheet Cash Flow • 100% of project spending included in property, plant and • 100% of project spending included in capital equipment expenditures • Debt includes 100% of project financing • Sumitomo1 contribution recorded within financing • Total sharehold
Slide 57: QB2 Project Economics Comparison
QB2 Project Economics Comparison 7 8 Reserve Sanction Case1 Case2 Mine Life Years 28 28 Strip Ratio First 5 Full Years 0.16 0.44 LOM3 0.41 0.70 C1 Cash Cost4 First 5 Full Years US$/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 The descript
Slide 58: 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
Slide 59: Endnotes: Near-Term Copper Growth - QB2 Project
Endnotes: Near-Term Copper Growth - QB2 Project Slide 50: QB2 Project 1. All-in sustaining costs (AISC) are net cash unit costs (also known as C1 cash costs) plus sustaining capital expenditures. Net cash unit costs are calculated after cash margin by-product credits assuming US$10.00/lb molybdenum
Slide 60: Endnotes: Near-Term Copper Growth - QB2 Project
Endnotes: Near-Term Copper Growth - QB2 Project Slide 58: QB2 Reserves and Resources Comparison 1. Mineral reserves are constrained within an optimized pit shell and scheduled using a variable grade cut-off approach based on NSR cut-off US$13.39/t over the planned life of mine. The life-of-mine stri
Slide 61: Copper Growth Strategy
Copper Growth Strategy Teck
Slide 62: Right Approach: Portfolio of Copper Growth Options
Right Approach: Portfolio of Copper Growth Options Value realization through production or M&A Teck is positioned to realize value from a robust pipeline of copper projects QB2 Case Study • Investment in exploration and strategic M&A over the last De-risked at project sanction: 20 years has secured
Slide 63: Right Approach: Actively Strengthening our Portfolio
Right Approach: Actively Strengthening our Portfolio Prudent investments in near-term, medium-term, and future growth options 2017 2021 Zafranal Feasibility (Q2 2019) Prefeasibility Near Term Teck’s copper growth portfolio is Cu-Au SEIA submission in H2 2021 supported by recent and extensive studies
Slide 64: Zafranal Cu-Au Porphyry (80%)
Zafranal Cu-Au Porphyry (80%) Peru Feasibility complete, SEIA submission in H2 20211 Long Life Asset Feasibility Study Production Profile • 19 year mine life with mine life extension 225 100% 200 opportunities though pit expansion and district 175 75% resource development 150 125 50% 100 Quality Inv
Slide 65: San Nicolás Cu-Zn (Ag-Au) VHMS (100%)
San Nicolás Cu-Zn (Ag-Au) VHMS (100%) Mexico Prefeasibility and Environmental Impact Assessment completed1 Long Life Asset Prefeasibility Study Production Profile • One of the world’s most significant 150 100% undeveloped VHMS deposits 125 75% • Updated Resources Statement 100 75 50% Quality Investm
Slide 66: Medium-Term Development Options
Medium-Term Development Options Chile and Canada Partnerships reduce capital needs | Options allow more flexible capital allocation QB3 Cu-Mo-Ag (60% Interest) Galore Creek Cu-Au-Ag (50% Interest) Long section looking north Long section looking west Surface Cu% 0.8 Surface QB2 Sanction Case Pit 0.5
Slide 67: Right Assets: Portfolio of Copper Growth Options
Right Assets: Portfolio of Copper Growth Options Multiple high quality copper options Near Term Options 1 Zafranal (Cu-Au), Peru1,2 Teck 80% | MMC 20% Feasibility Study complete; SEIA submission in H2 2021 First five years: 133 ktpa CuEq; C1 Costs US$1.18/lb Cu. US$1.2B capex; NPV8 US$1,026M; IRR 23
Slide 68: Endnotes: Copper Growth Strategy
Endnotes: Copper Growth Strategy Slide 62: Right Approach: Portfolio of Copper Growth Options - Value realization through production or M&A 1. Total debt repayment between Q4 2015 and Q3 2019. 2. Share buybacks and dividends since Q4 2017 (one year prior to project sanction). Slide 63: Right Assets:
Slide 69: Base Metals Business Units – Copper and Zinc
Base Metals Business Units – Copper and Zinc
Slide 70: Significant Base Metals Growth
Significant Base Metals Growth Teck’s Base Metals business rivals leading copper peers Consolidated Copper Equivalent Production 1 (kt CuEq) Copper Zinc (CuEq) Other (CuEq) Teck First Quantum Antofagasta 11% 988 855 887 0% 832 828 62% 528 Teck Teck First Quantum First Quantum Antofagasta Antofagasta
Slide 71: Significant Base Metals Growth
Significant Base Metals Growth Base Metals business growth rivals leading copper peers Consolidated Copper Equivalent Production 1 (kt CuEq) Copper Zinc (CuEq) Other (CuEq) Attributable (CuEq) Teck First Quantum Antofagasta 11% 988 855 887 0% 832 828 62% 528 Teck Teck First Quantum First Quantum Ant
Slide 72: Industry Leading Copper Growth
Industry Leading Copper Growth Building on our foundation of quality assets and operating discipline Gross Profit Margin Before Depreciation & Amortization Quality assets with strong margins from Operations Consistently ~45-55%1 • Antamina, Highland Valley and Carmen de Andacollo 70% provide a stabl
Slide 73: World Class Zinc Business
World Class Zinc Business Large scale, low-cost integrated business Gross Profit Margin before Depreciation & Amortization Quality assets with strong margins from Mining Operations Consistently >50%1 70% • Red Dog is a first quartile cash cost operation • Trail produces refined zinc, lead, and other
Slide 74: Significant Base Metals Cash Flow
Significant Base Metals Cash Flow Expanding our high-quality Base Metals business • High quality, growing copper business • World class zinc business • Focus on operating discipline • Significant improvements driven by RACE21TM Building on our foundation of quality assets and operating discipline Ph
Slide 75: Operations Improvement and Cash Flow Focus in Copper
Operations Improvement and Cash Flow Focus in Copper Productivity & Cost Management Focused Investment Priorities • Focus on reliability and maintenance • Key water, tailings and regulatory projects and cross site sharing drive sustaining capital requirements • RACE21TM and continuous • Near-term hi
Slide 76: Copper Cost of Sales
Copper Cost of Sales Cost of Sales in 2020 (C$) Operating Costs Breakdown in 2020 Depreciation Labour 30% and Amortization Contractors and Consultants 11% 24% Operating Royalty Costs OperatingCosts Costs Operating Supplies 16% 68% 47% 2% Repairs and Maintenance Parts 16% Transportation Costs Energy
Slide 77: Operations Improvement and Cash Flow Focus in Zinc
Operations Improvement and Cash Flow Focus in Zinc Productivity Focused Investment Priorities • Focus on asset management and cross • Key water, tailings and regulatory projects site sharing drive sustaining capital requirements • RACE21TM and continuous • Near term higher sustaining spending from i
Slide 78: Zinc Cost of Sales
Zinc Cost of Sales Cost of Sales in 2020 (C$) Depreciation and Amortization Operating Costs Breakdown in 2020 13% Depreciation Labour 35% and Royalty Amortization Operating Contractors and Consultants 10% 24% Costs Costs Operating OperatingCosts Operating Supplies 11% 38% Costs 11% 68% 47% Repairs a
Slide 79: Red Dog Sales Seasonality
Red Dog Sales Seasonality • Operates 12 months Zinc Sales 1 (%) • Ships ~ 4 months 40% 32% 31% 30% • Shipments to inventory in Canada 20% 21% 16% and Europe; Direct sales to Asia 10% • ~65% of zinc sales in second half 0% Q1 Q2 Q3 Q4 of year • ~100% of lead sales in second half Lead Sales1 (%) of ye
Slide 80: Red Dog Net Cash Unit Cost Seasonality
Red Dog Net Cash Unit Cost Seasonality Five-Year Average Red Dog Net Cash Unit Costs1 (US$/lb) 0.60 0.40 0.20 - Q1 Q2 Q3 Q4 • Seasonality of Red Dog unit costs largely due to lead sales during the shipping season • Higher net cash unit costs expected in 2021 compared to 2020 due primarily to lower p
Slide 81: Red Dog in Bottom Quartile of Zinc Cost Curves
Red Dog in Bottom Quartile of Zinc Cost Curves Higher zinc prices illustrate continuing tight market Total Cash + Capex Cost Curve 20211 (US¢/lb) 200 2021 Costs Based on Current Prices Current Spot LME Price 180 160 140 120 100 80 60 Antamina 40 20 Red Dog 0 0% 25% 50% 75% 100% Source: All data poin
Slide 82: Red Dog Extension Project
Red Dog Extension Project Long Life Asset Looking Northwest • Aktigiruq exploration target of 80-150 Mt @ 16-18% Zn + Pb1 Su-Lik Anarraaq Aktigiruq • Anarraaq Inferred Resource2: 19.4 Mt @14.4% Zn, 4.2% Pb Quality Project • Premier zinc district Paalaaq • Significant mineralized system Aqqaluk • Hig
Slide 83: Endnotes: Base Metals Business Units
Endnotes: Base Metals Business Units Slide 70: Significant Base Metals Growth - Teck’s Base Metals business rivals leading copper peers 1. Production for 2020 reflects actuals sourced from company disclosures. Production for 2023 is sourced from Wood Mackenzie asset models, considering assets includ
Slide 84: Endnotes: Base Metals Business Units
Endnotes: Base Metals Business Units Slide 78: Zinc Unit Costs 1. Zinc unit costs are reported in US dollars per pound. Non-GAAP financial measures. See “Non-GAAP Financial Measures” slides. Slide 79: Red Dog Sales Seasonality 1. Average sales from 2016 to 2020. Slide 80: Red Dog Net Cash Unit Cost
Slide 85: Copper Market
Copper Market
Slide 86: Copper Supply Needed for Electrification Targets
Copper Supply Needed for Electrification Targets Supply committed pre-pandemic insufficient to meet growing demand Supply response falling short Copper Mine Growth1 (kt) 2024-2026 • >80% of the current committed mine projects were 21,000 2022-2024 -100 kt sanctioned prior to the pandemic 2020-2022 1
Slide 87: Copper Market
Copper Market Physical inventories continue to tighten Available Stocks Drop to Historic Lows1 1,600 • Demand for raw materials and mine disruptions keep concentrate demand high thousands of tonnes 1,200 ‒ Mine production cuts YTD 2021 ~0.6 Mt ‒ Spot TC/RC mid-50’s to low 60’s 800 400 ‒ 2022 Annual
Slide 88: Global Copper Mine Production Increasing Slowly
Global Copper Mine Production Increasing Slowly Majority of mine growth coming from 6 projects Mine Production Set To Increase 2.6Mt By 20261 Global Copper Mine Production2 (kt contained) Includes: Mine kmt 22,000 Kamoa – Kakula 540 20,000 Quellaveco 390 PT – Freeport 360 18,000 Quebrada Blanca 2 33
Slide 89: Copper Disruptions Continue To Impact Mines
Copper Disruptions Continue To Impact Mines Smelters now facing power supply issues TC/RCs Spot and Annual Remain Low1 (US$/lb) Disruptions (kt)2; $120 2005 2007 2009 2011 2013 2015 2017 2019 2021 $110 0 $100 -200 $90 $80 -400 $70 -600 $60 2.7% $50 -800 3.6% $40 -1,000 4.0% $30 4.5% -1,200 $20 $10 -
Slide 90: Growth in Copper Smelter Capacity
Growth in Copper Smelter Capacity China added 3.2 Mt since 2019; 2.6 Mt of new announcements ex-China Copper Mine Growth1 +1.9 Mt of New/Restarted Chinese Smelting Capacity (kt) +2.6 Mt of Ex-China Capacity 22,000 2023+ 2020 - 2022 2022- 2024 2024 - 2026 1000 2,650 kt 21,000 900 1,580kt 1,360 kt -10
Slide 91: Copper Supply
Copper Supply Chinese imports shift to concentrates to feed smelter capacity increases Chinese Scrap/Blister Imports Fall2 Chinese Imports Shift to Concentrates3 (Copper content, kt) (Copper content, kt) 2,500 12,000 10,000 2,000 8,000 1,500 6,000 1,000 4,000 500 2,000 0 0 2013 2014 2015 2016 2017 2
Slide 92: Copper Metal Stocks
Copper Metal Stocks Raw material shortages increase cathode demand • Global stocks fell 470 kt in H2 2021, now Daily Copper Prices (US$/mt) and Stocks1 (kt) equivalent to 5.4 days of global consumption $12,000 1,800 • Exchange stocks (LME/SHFE/Comex) fell 225kt in 1,600 H2 2021 now 2.4 days of globa
Slide 93: Endnotes: Copper Market
Endnotes: Copper Market Slide 86: Copper Supply Needed for Electrification Targets 1. Copper concentrate supply and smelter demand 2019 – 2020 actuals and 2021 – 2026 forecasts, includes committed projects and projected 4% disruption allowance. Wood Mackenzie, CRU, Teck. As at November 25th, 2021. 2
Slide 94: Zinc Market
Zinc Market Teck
Slide 95: Zinc Outperforms Market Expectations
Zinc Outperforms Market Expectations High power cost supports Zn metal pricing with little impact on concentrates Concentrate market tight through 2021 China Zinc Concentrate Supply1 (Kmt) • Spot TCs unchanged all year at historically low levels 8,000 40% • China energy shortages had minor impact on
Slide 96: Zinc Market
Zinc Market Raw materials shortages and strong demand support prices Steel Demand Supporting Zinc Price1 • Demand for raw materials and mine disruptions due to COVID-19 kept concentrate demand strong Operating Rates % 100 ‒ Ongoing spread of the virus and COVID-19 75 protocols continued to impact pr
Slide 97: Chinese Zinc Mine and Smelter Production
Chinese Zinc Mine and Smelter Production Mine production flat while smelter production increases Chinese Mine Production Flat Since 20181 Chinese Refined Production Up 14% Since 20182 (kt Contained) (kt Contained) 7,000 7,000 6,000 6,000 5,000 5,000 4,000 4,000 3,000 3,000 2,000 2,000 1,000 1,000 0
Slide 98: Global Zinc Mine Production Remains Under Pressure
Global Zinc Mine Production Remains Under Pressure Ongoing risk to supply growth in 2022 Estimated Chinese Zinc Mine Growth Changes in Mine Production Since Q1 20182 Rarely Achieved1 (Kmt Contained) New Mines China Mines ROW Mines Change 800 1,000 0 600 557 -1,000 495 400 -2,000 360 350 392 270 300
Slide 99: Zinc Stocks Continue to Decrease
Zinc Stocks Continue to Decrease Despite Refined Production Increases in China De-stocking Continues Imported Zinc Metal Chinese Stocks at Record Lows1,2 (kt) Required to Fill the Gap3 (kt) 1,600 1,400 1,400 1,174 1,200 1,200 1,095 1,109 1,000 1,000 800 770 788 800 600 627 627 400 600 503 200 400 0
Slide 100: Zinc Supply
Zinc Supply Mine production increasing in 2022, but remains at risk due to COVID-19 • Mine production recovered in South America, after losing Zinc Mine Production1 (kt contained) >1.0 Mt of production in 2020; production may return to 16,000 ROW Others China Teck Glencore 2018 levels in 2022 Gamsbe
Slide 101: Zinc Concentrate Treatment Charges
Zinc Concentrate Treatment Charges Stable in 2021, near historical lows Treatment Charges1 (USD/dmt) 350 Benchmark TCs down 47% YoY 300 250 200 150 100 Spot TCs 50 down 73% vs. Feb 2020 peak 0 Spot TC Benchmark TC 101
Slide 102: Zinc Metal Stocks
Zinc Metal Stocks Global shipping backlog unable to keep up with demand causing falling inventory • Deficits over past 5 years drove down stocks, with Daily Zinc Prices1,2 (US$/mt) total stocks falling to just 6.5 days of global and Stocks1,2 (kmt) consumption, compared to 38 days in 2012-2013 LME S
Slide 103: Largest Global Net Zinc Mining Companies
Largest Global Net Zinc Mining Companies Teck is the Largest Net Zinc Miner1(kt) Provides significant exposure to a rising zinc price 300 Public Company 250 Teck Private Company 200 150 100 50 0 103
Slide 104: Endnotes: Zinc Market
Endnotes: Zinc Market Slide 95: Zinc Outperforms Market Expectations 1. China zinc concentrate supply requirements 2016 – 2023 estimates. Source: China NBS/CNIA, BGRIMM, Teck. 2. Global Visible Stocks. Source: LME, ICE, SHFE, SMM. To December 31, 2021. Slide 96: Zinc Market 1. Source: Shanghai Metal
Slide 105: Steelmaking Coal Business Unit
Steelmaking Coal Business Unit
Slide 106: Tier-One Steelmaking Coal Portfolio
Tier-One Steelmaking Coal Portfolio • Diversified, long term customer base 49% $2.2B • Stable long term strip ratio Steelmaking Coal Steelmaking Coal 12-year Historical Average 12-year Historical Average • Long term production run rate of Annual Impairment Annual Impairment 26-27 million tonnes per
Slide 107: Steelmaking Coal Operating Strategy
Steelmaking Coal Operating Strategy Optimized Supply Chain Map and Production Capacity1 • Improved market access and reliability for customers 20km • Pit to port integration maximizes short and long term Elk Valley synergies Fording River Increase Margins Not Volumes ~9.0 Mtpa • Strategically replac
Slide 108: Executing on the Elk Valley Water Quality Plan
Executing on the Elk Valley Water Quality Plan Saturated Rock Fill (SRF) Active Water Treatment Facilities (AWTF) • Tank based biological treatment process removes nitrate and transforms selenium into a solid form Saturated Rock Fill (SRF) • Uses naturally-occurring biological process in old mining
Slide 109: Optimally Positioned For a Decarbonizing Future
Optimally Positioned For a Decarbonizing Future • Teck’s premium hard coking coal improves blast Steelmaking Coal CO2 Intensity Curve1 furnace efficiency and decreases CO2 emissions (t CO2e/t saleable coal) per tonne of steel Will be even more cost competitive with rising CO2 prices globally • Withi
Slide 110: Proven Operator, Managing for Margin And Costs Through Cycles
Proven Operator, Managing for Margin And Costs Through Cycles Low Price Environment Steelmaking Coal Impairment Adjusted EBITDA1 Cost focus to protect margins and maximize Free Cash Flow1 & Impairment Adjusted EBITDA Margin1 (%) Annual Impairment Annual Impairment Annual ★ 2013: Cost Reduction Progr
Slide 111: Top Quartile Margins in Steelmaking Coal
Top Quartile Margins in Steelmaking Coal Managing our Core Business Drivers to Strong Cash Flow Generation Potential2 Optimize Margins Clean Coal Production per Estimated Effect on Estimated Effect on Annum Change Annualized Profit3 Annualized EBITDA3 • Neptune capacity increase and third-party logi
Slide 112: Steelmaking Coal Cost of Sales
Steelmaking Coal Cost of Sales Cost of Sales in 2020 (C$) Operating Costs Breakdown in 2020 Depreciation Labour 34% and Amortization Contractors and Consultants 13% 24% Operating Costs Operating Supplies 16% 47% Repairs and Maintenance Parts 19% Transportation Energy 14% 29% Other 4% Total 100% 112
Slide 113: Sustain Production Capacity and Productivities In Steelmaking Coal
Sustain Production Capacity and Productivities In Steelmaking Coal Maintaining historical dollar per tonne Sustaining Capital, Excluding Water Treatment1 ($/t) sustaining investment levels 2010-2016: Average spend of ~$11 per tonne1 • Swift at Fording River and Line Creek • Reinvestment in 5 shovels
Slide 114: Haul Truck Rebuild Strategy
Haul Truck Rebuild Strategy Potential to significantly reduce capital costs Significant benefits from moving to a haul truck rebuild strategy, vs. replacing 930E trucks at the end of truck life • Reduces capital spending for new truck purchases • Increases fleet operating hours • Reduces fleet opera
Slide 115: Steelmaking Coal Supply Chain Overview
Steelmaking Coal Supply Chain Overview Teck contracted port capacity of >31.5Mtpa to support production Neptune Terminal >18.5Mtpa • Teck 100% ownership of coal capacity • Teck’s primary terminal for market access, with competitive cost of service structure Westshore Terminals contract for 5-7Mtpa •
Slide 116: Endnotes: Steelmaking Coal Business Unit
Endnotes: Steelmaking Coal Business Unit Slide 106: Tier-One Steelmaking Coal Portfolio 1. The 12-year historical average annual Impairment Adjusted EBITDA and Impairment Adjusted EBITDA Margin are for the 2009 to 2020 period, inclusive. Impairment Adjusted EBITDA and Impairment Adjusted EBITDA Marg
Slide 117: Steelmaking Coal Market
Steelmaking Coal Market Teck
Slide 118: Steelmaking Coal Facts
Steelmaking Coal Facts Global Coal Production1: ~7.6 billion tonnes Steelmaking Coal Production2: ~1,150 million tonnes Export Steelmaking Coal2: ~320 million tonnes Seaborne Steelmaking Coal2: • ~0.7 tonnes of steelmaking coal is used to ~285 million tonnes produce each tonne of steel3 • Up to 100
Slide 119: Steelmaking Coal Prices Resilient Despite Import Ban
Steelmaking Coal Prices Resilient Despite Import Ban Australian banned exports absorbed by strong Ex-China steel market Steelmaking coal prices surge despite import ban Steelmaking Coal Prices1 (US$/t) • Both FOB Australia and CFR China prices remain at historical high 700 levels despite falling fro
Slide 120: Australian Coal Ban Absorbed
Australian Coal Ban Absorbed Displaced Australian coal taken up by ex-China market Australian HCC finds new homes; market pivots Australian HCC Exports1 (Mt) 150 • Australian coal banned; ROW to fill the Chinese gap • Australian exports to China drop to zero from ~34Mt 100 31 34 34 42 • Increased de
Slide 121: Long Term Steelmaking Coal Demand Well Supported
Long Term Steelmaking Coal Demand Well Supported Planned blast furnace capacity set to grow Asian blast furnace capacity continues to grow Blast Furnace Capacity2 (Mt) • Asia committing to 20+ years of traditional steel making 180 • European steel mills seek alternatives to coal feed 160 • Hydrogen
Slide 122: Steelmaking Coal Demand Growth Forecast
Steelmaking Coal Demand Growth Forecast Recovery continues to be reflected by strong steel demand Seaborne Steelmaking Coal Imports1 (Mt) Change 2019 to 2022 330 7 17 320 320 4 317 5 3 2 309 7 5 1 310 8 5 1 3 300 4 13 2 3 293 16 290 9 280 270 260 Includes: • India: Growing steel production; unchange
Slide 123: Indian Steelmaking Coal Imports
Indian Steelmaking Coal Imports Mid- & long-term imports supported by strong demand and government targets Indian Crude Steel Production1 (Mt) Indian Seaborne Coking Coal Imports2 (Mt) 120 60 100 50 80 40 60 30 40 20 20 10 0 0 India 2021 crude steel production and seaborne coking coal imports surpas
Slide 124: Chinese Steelmaking Coal Imports – Australia Ban
Chinese Steelmaking Coal Imports – Australia Ban 2021 ex-Australia seaborne imports up to new record high of 33Mt Chinese Crude Steel Production (CSP), Hot Metal Chinese Coking Coal Imports2 (Mt) Production (HMP) and Coal Production (Mt)1 1,200 600 80 70 16 1,000 500 60 34 24 15 26 800 400 50 28 24
Slide 125: Chinese Steel Margins
Chinese Steel Margins Steel margins remain healthy China Hot Rolled Coil (HRC) Margins and Steelmaking Coal (HCC) Prices1 (US$/t) 700 600 500 400 300 200 100 0 -100 Jul-15 Jul-16 Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Oct-15 Oct-16 Oct-17 Oct-18 Oc
Slide 126: Chinese Scrap Use Remains Low
Chinese Scrap Use Remains Low Scrap supply limits EAF share in steel output China’s scrap ratio lower than global average of 31%1 China Steel Use By Sector (2020)2 (2000-2020)3 100% 84% 80% 69% 56% 60% 41% 38% 35% 40% Others 22% 20% 15-25% 0% Turkey USA EU Russia Korea Japan China Auto EAF share for
Slide 127: Steelmaking Coal Supply Growth Forecast
Steelmaking Coal Supply Growth Forecast Supply partially recovers; while crude steel production up significantly Seaborne Steelmaking Coal Exports1 (Mt) Change 2019 to 2022 330 320 314 1 318 12 8 310 11 2 2 8 300 7 1 2 296 5 1 290 2 1 1 284 2 4 1 280 270 260 • Australia: Production to increase in 20
Slide 128: Australia and US Steelmaking Coal Exports
20 40 60 80 0 100 120 140 160 180 200 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Australian Exports1 (Mt) 2015 2016 2017 2018 2019 2020 2021E 10 20 30 40 50 60 70 0 2000 2021 Australia and US coal exports down vs. 2019 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Slide 129: Canadian & Mozambique Steelmaking Coal Exports
Canadian & Mozambique Steelmaking Coal Exports 2021 Canadian exports impacted by B.C. wildfires, floods and railway disruptions Canadian Exports1 (Mt) Mozambique Exports2 (Mt) 40 9 35 8 30 7 6 25 5 20 4 15 3 10 2 5 1 0 0 129
Slide 130: 2nd Largest Seaborne Steelmaking Coal Supplier
2nd Largest Seaborne Steelmaking Coal Supplier Competitively positioned to supply steel producers worldwide Sales Distribution CHINA 2013: ~30% EUROPE 2017: ~15% 2013: ~15% INDIA 2017: ~20% 2019: ~10% 2013: ~5% 2019: ~15% 2020: ~15% AMERICAS 2017: ~10% 2020: ~15% 2019: ~15% ~5% 2020: ~15% ASIA EXCL.
Slide 131: Endnotes: Steelmaking Coal Market
Endnotes: Steelmaking Coal Market Slide 118: Steelmaking Coal Facts 1. Source: IEA (Coal Information, August 2021 update). 2. Source: Wood Mackenzie (Long Term Outlook Dec 2021). 3. Source: World Coal Association. Assumes all of the steel required is produced by blast furnace-basic oxygen furnace ro
Slide 132: Endnotes: Steelmaking Coal Market
Endnotes: Steelmaking Coal Market Slide 127: Steelmaking Coal Supply Growth Forecast 1. Source: Wood Mackenzie (Short Term Outlook December 2021). 2. Source: T. Parker. Slide 128: Australia and US Steelmaking Coal Exports 1. Source: Global Trade Atlas. 2021E is YTD October annualized. Slide 129: Can
Slide 133: Steelmaking Coal Resilience
Steelmaking Coal Resilience
Slide 134: Executive Summary
Executive Summary Steel demand is forecast to Demand for high-quality Global steel industry emits Blast furnace CCUS is the only remain strong through to 2050 seaborne hard coking coal 7-10% of total GHG emissions technology capable of used in blast furnace decarbonizing steelmaking at steelmaking i
Slide 135: Steel is Essential for Economic Growth In a Low-Carbon World
Steel is Essential for Economic Growth In a Low-Carbon World World’s largest metal Enables low-carbon Suited for a circular Essential to lifting market today energy system economy global living standards Steel is widely used and hard Fundamental to renewable Easily recyclable (e.g., without Middle c
Slide 136: Steel Demand Is Robust Through 2050 In all IEA Scenarios
Steel Demand Is Robust Through 2050 In all IEA Scenarios Finished steel demand, billion tonnes Billion tonnes 2.5 2.1 2.1 2.0 Standard Growth scenario – IEA SDS1 2.0 1.8 ▪ Industrialized growth in India and Developing South East Asia 1.5 India ▪ China plateaus until 2030 before converging to Japan/G
Slide 137: Steelmaking Technologies are Driven by Regional Factors
Steelmaking Technologies are Driven by Regional Factors Blast Furnace + CCUS Proven technology with favorable economics in regions with young blast furnaces (Asia) and abundant sequestration capacity, deriving the best combination of speed and scale for decarbonization Scrap Currently accounts for ~
Slide 138: Blast Furnace + CCUS Will Lead Large-Scale Decarbonization Adoption
Blast Furnace + CCUS Will Lead Large-Scale Decarbonization Adoption Blast Furnace + CCUS is adoption ready Blast Furnace + CCUS adoption will lead through 20502 Proven technology in hard-to-abate industries 100% • CCUS operates in power generation, refining, petrochemicals, agrichemicals, and steel/
Slide 139: Blast Furnace + CCUS is the Only Technology That Can Be Adopted with Speed and Scale
Blast Furnace + CCUS is the Only Technology That Can be Adopted with Speed and Scale Total Cost of Ownership1 (US$/t liquid steel) To make hydrogen steelmaking cost competitive, China (SDS – 1.7o scenario) ample access to low-cost hydrogen (US$1-2/kg) is 800 required. This implies: 750 Stable supply
Slide 140: Despite Robust Steel Demand, Long-Term Demand for Steelmaking Coal Is Expected to Decline…
Despite Robust Steel Demand, Long-Term Demand for Steelmaking Coal Is Expected to Decline… Steelmaking Coal Demand1 (Mtpa) Global demand for non-seaborne hard coking coal is expected to decline by 2050 due to 3 factors: 1. Increased steel scrap availability The magnitude and recycling in mature regi
Slide 141: …But Long-Term Demand for Seaborne Hard Coking Coal Will Remain Robust
…But Long-Term Demand for Seaborne Hard Coking Coal Will Remain Robust Seaborne Steelmaking Coal Demand1 (Mtpa) 235 • Seaborne HCC demand is expected to 188 remain resilient due to steel demand growth in 191 Seaborne hard regions that rely on lower-cost seaborne hard Rest of World coking coal (HCC)
Slide 142: Blast Furnace Capacity Development is Well Underway in India and South-East Asia
Blast Furnace Capacity Development is Well Underway in India and South-East Asia • Asia committing to 20+ years of traditional steel making Blast Furnace Capacity2 (Mt) • European steel mills seek alternatives to coal feed 180 • Hydrogen pilot plants only, commercial technology still 160 decades awa
Slide 143: Teck's Hard Coking Coal Is Optimally Positioned For a Decarbonizing Future
Teck’s Hard Coking Coal Is Optimally Positioned For a Decarbonizing Future Teck’s HCC has amongst lowest Highest quality HCC leading to Globally advantaged seaborne Scope 1 and Scope 2 emissions lowest CO2 emissions in logistics and cost position relative to peers steelmaking • Teck’s emissions inte
Slide 144: Endnotes: Steelmaking Coal Resilience
Endnotes: Steelmaking Coal Resilience Slide 135: Steel is Essential for Economic Growth In a Low-Carbon World 1. Source: Teck. 2. Source: WSA, IEA. 3. India (from ~100 Mt in 2019 to 300 Mt in 2050) and South-East Asia (from ~100 Mt in 2019 to ~230 Mt in 2050) IEA SDS Scenario assumptions on CO2 pric
Slide 145: Energy Business Unit
Energy Business Unit Teck
Slide 146: Fort Hills Oil Sands Mine
Fort Hills Oil Sands Mine State of the art oil sands mining facility Capacity High Ore Quality1 200+kbpd (11.4% bitumen grade) (Dec 2018) Low GHG Long Life Intensity2 Resource1 (550Mbbls Teck share) 146
Slide 147: Fort Hills Operations Update
Fort Hills Operations Update Fort Hills ramp-up has been completed successfully • Fort Hills production ramp-up completed in H2 of Dec 2021 • Fort Hills operating at a stable two train production rates • Current operational performance evident of improvements in mine productivity Focus on transformi
Slide 148: Significant EBITDA Upside Potential in Energy
Significant EBITDA Upside Potential in Energy Providing the basis for strong and steady cash flow for decades Assumptions EBITDA1 Potential – Teck’s Share (C$ million) WTI @ WTI @ $900 US$75/BBL US$60/BBL $800 WTI-WCS differential US$10.75 US$10.75 $700 +$150M $600 C$/US$ exchange rate 1.25 1.25 $50
Slide 149: Best In Class Low Carbon Intensity Production
Best In Class Low Carbon Intensity Production Our Fort Hills blend can displace carbon intensive crudes • Emissions intensity of Canadian oil sands Total Life Cycle Emissions Intensity has declined by 25%; estimated reduction (kg CO2e/bbl refined product – gasoline/diesel) of 15% to 20% by 2030 • PF
Slide 150: Endnotes: Energy Business Unit
Endnotes: Energy Business Unit Slide 146: Fort Hills Oil Sands Mine 1. Source: Oil Sands Magazine. https://www.oilsandsmagazine.com/projects/suncor-fort-hills-mine 2. Source: Oil Sands Magazine. https://www.canadianenergycentre.ca/this-oil-sands-crude-has-lower-ghg-emissions-than-the-u-s-average/ Sl
Slide 151: Energy Market
_ o 4 Same a) = D> ©) Same oO Cc LU Teck
Slide 152: Crude Oil Prices Supported by Strong Demand
Crude Oil Prices Supported by Strong Demand Demand greater than supply in 2021, nominal inventory builds in 2022 Global Crude/Liquids Demand/Supply (Mbpd) Demand recovers to pre-COVID levels 110 • 2022 annual forecast ~100 Mbpd, increasing 3.5 Mbpd vs. 2021 • Impact of Covid Omicron variant lower th
Slide 153: Endnotes: Energy Marketing
Endnotes: Energy Marketing Slide 152: Crude Oil Prices Supported by Supply Restraints 1. Source: Monthly Market Reports published by Energy Aspects, International Energy Agency (IEA), Energy Information Agency (EIA), Organization of Petroleum Exporting Countries (OPEC). 2. Source: CME Group, NetEner
Slide 154: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 155: Non-GAAP Financial Measures
Non-GAAP Financial Measures Our financial results are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. This document refers to a number of Non-GAAP Financial Measures which are not measures recognized under IFRS
Slide 156: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted cash cost of sales – Adjusted cash cost of sales for our copper and zinc operations is defined as the cost of the product delivered to the port of shipment, excluding depreciation and amortization charges, any one-time collective agreement charges or inventory wr
Slide 157: Reconciliation of Profit (Loss) and Adjusted Profit
Non-GAAP Financial Measures Reconciliation of Profit (Loss) and Adjusted Profit 157
Slide 158: Reconciliation of Basic and Diluted Earnings Per Share
Non-GAAP Financial Measures Reconciliation of Basic Earnings (Loss) Per Share to Adjusted Basic Earnings (Loss) Per Share and Reconciliation of Diluted Earnings (Loss) Per Share to Adjusted Diluted Earnings Per Share 158
Slide 159: Reconciliation of Net Debt to Adjusted EBITDA Ratio
Non-GAAP Financial Measures Reconciliation of Net Debt to Adjusted EBITDA Ratio We include net debt measures as we believe they provide readers with information that allows them to assess our credit capacity and the ability to meet our short and long-term financial obligations, as well as providing
Slide 160: Reconciliation of EBITDA and Adjusted EBITDA
Non-GAAP Financial Measures Reconciliation of EBITDA and Adjusted EBITDA Reconciliation of EBITDA by Business Unit Three months ended September 30, 2021 Steelmaking (CAD$ in millions) Copper Zinc Coal Energy Corporate Total Profit (loss) before tax $ 296 $ 246 $ 1,009 $ (37) $ (159) $ 1,354 Net fina
Slide 161: Reconciliation of Impairment Adjusted EBITDA and Margin
Non-GAAP Financial Measures Reconciliation of Impairment Adjusted EBITDA and Impairment Adjusted EBITDA Margin For the 12 Years Ending (C$ in millions) December 31, 2020 Steelmaking Coal Profit (loss) before taxes $ 15,847 Finance expense net of finance income 398 Depreciation and amortization 7,808
Slide 162: Reconciliation of Gross Profit Before Depreciation and Amortization
Non-GAAP Financial Measures Reconciliation of Gross Profit Before Depreciation and Amortization and Reconciliation of Gross Profit (Loss) Margins Before Depreciation 162
Slide 163: Gross Profit Before D&A Margin from Mining Operations
Non-GAAP Financial Measures Reconciliation of Gross Profit Before Depreciation & Amortization Margin from Mining Operations Year ended Year ended Year ended Year ended Six months ended (C$ in millions, except where noted) December 31, 2017 December 31, 2018 December 31, 2019 December 31, 2020 June 3
Slide 164: Gross Profit Before D&A Margin from Mining Operations (cont.)
Non-GAAP Financial Measures Reconciliation of Gross Profit Before Depreciation & Amortization Margin from Mining Operations (cont.) Year ended Year ended Year ended Year ended Six months ended (C$ in millions, except where noted) December 31, 2017 December 31, 2018 December 31, 2019 December 31, 202
Slide 165: Copper Unit Cost Reconciliation
Non-GAAP Financial Measures Copper Unit Cost Reconciliation 1. Average period exchange rates are used to convert to US$ per pound equivalent. We include unit cost information as it is frequently requested by investors and investment analysts who use it to assess our cost structure and margins and co
Slide 166: Copper Unit Cost Reconciliation
Non-GAAP Financial Measures Copper Unit Cost Reconciliation Three months ended Three months ended Year ended Year ended (C$ in millions, except where noted) December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Revenue as reported $ 820 $ 592 $ 2,419 $ 2,469 By-product revenue (A)
Slide 167: Zinc Unit Cost Reconciliation (Mining Operations)
Non-GAAP Financial Measures Zinc Unit Cost Reconciliation (Mining Operations) 1. Red Dog mining operations. 2. Average period exchange rates are used to convert to US$ per tonne equivalent. We include unit cost information as it is frequently requested by investors and investment analysts who use it
Slide 168: Steelmaking Coal Unit Cost Reconciliation
Non-GAAP Financial Measures Steelmaking Coal Unit Cost Reconciliation 1. Average period exchange rates are used to convert to US$ per tonne equivalent. We include unit cost information as it is frequently requested by investors and investment analysts who use it to assess our cost structure and marg
Slide 169: Energy Operating Netback and Adjusted Operating Costs
Non-GAAP Financial Measures Energy Operating Netback, Bitumen & Blended Bitumen Price Realized Reconciliations and Adjusted Operating Costs and Adjusted Operating Costs1 1. Calculated per unit amounts may differ due to rounding. 2. Bitumen price realized represents the realized petroleum revenue (bl
Slide 170: Energy Operating Netback and Adjusted Operating Costs
Non-GAAP Financial Measures Energy Operating Netback, Bitumen & Blended Bitumen Price Realized Reconciliations and Adjusted Operating Costs and Adjusted Operating Costs1 3. Reflects adjustments for costs not directly attributed to the production of Fort Hills bitumen, including transportation for no
Slide 171: Reconciliation of Free Cash Flow
Non-GAAP Financial Measures Reconciliation of Free Cash Flow (C$ in millions) 2003 to Q3 2021 Cash Flow from Operations $ 40,790 Debt interest paid (6,130) Capital expenditures, including capitalized stripping costs (32,038) Payments to non-controlling interests (NCI) (608) Free Cash Flow $ 12,014 D
Slide 172: 25th Annual Institutional Investor Conference
25th Annual Institutional Investor Conference January 20, 2022 Don Lindsay President and Chief Executive Officer
Teck Resources — CIBC 25th Annual Institutional Investor Conference 2022 on 6ix