Teck Resources Limited Class A · TSX:TECK.A
Teck Resources Limited Class A — Investor Presentation (October 2020)
158 slides from Teck Resources Limited Class A's investor presentation, Oct 8, 2020
Slide 1: Investor Meetings
Investor Meetings hosted by October 8, 2020
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 yet undeveloped projects. Assumptions regarding the benefits of the Neptune Bulk Terminals expansion and other projects include assumptions that the project is constructed and operated in accordance with current expectations. Our anticipated RACE21TM rela
Slide 4: Sustainability Leadership
Sustainability Leadership Teck’s Performance on Top ESG Ratings • “A” rating since 2013 • Ranked in the • Top-ranked mining (scale of CCC – AAA) 100th percentile company 2019 World • Top ranked diversified & North American Indices • Outperforming all 10 of our largest industry peers metals mining co
Slide 5: Quality Operating Assets in Stable Jurisdictions
Quality Operating Assets in Stable Jurisdictions STEELMAKING COAL COPPER Elk Valley Mines Antamina, Highland Valley, Carmen de Andacollo • Long life • Long life • High quality steelmaking coal • Competitive cost • Low carbon intensity • Low carbon intensity • ~$27 billion of Adjusted • Strong growth
Slide 6: Long-Term Strategy: Copper Growth from Steelmaking Coal and Zinc
Long-Term Strategy: Copper Growth from Steelmaking Coal and Zinc We are implementing a copper growth strategy, financed by strong cash flows from steelmaking coal and zinc COPPER STEELMAKING COAL • Building QB2: long-life, low-cost • Strong long-term cash flow operation with major expansion • Growin
Slide 7: Our Key Priorities
Our Key Priorities • QB2 is a long-life, low-cost operation with significant expansion potential • Rebalances our portfolio over time • QB has potential to become a top five global copper producer • Our Neptune facility upgrade secures a long term, low cost and reliable supply chain for our steelmak
Slide 8: QB2 Value Creation
QB2 Value Creation Delivers on Copper Growth Strategy • Rebalances Teck's portfolio over time to make the contribution from copper similar to steelmaking coal • World class, low cost copper opportunity in an excellent geopolitical jurisdiction • First production expected in H2 2022 • Large, long lif
Slide 9: QB2 Update
QB2 Update Steady ramp up of the construction workforce to pre-COVID levels continuing • Construction activities partially suspended in mid-March • Strict COVID-19 protocols in place to protect the health and safety of our workers and communities where we operate • Initial ramp-up focused on high va
Slide 10: Neptune Facility Upgrade
Neptune Facility Upgrade • Continue to advance the facility upgrade project; major equipment deliveries remain on track • To date, COVID-19 related issues have not substantially impacted works on the critical path • Expect the new ship loader, stacker / reclaimer and single dumper replacement to be
Slide 11: Steelmaking Coal Business Progress
Steelmaking Coal Business Progress • Shifting our cost base lower due to: - Declining strip ratio - Elkview plant expansion - Cardinal River closure - Cost Reduction Program - RACE21TM • Agreement in principle with Westshore Terminals for shipment of 32.25 Mt of steelmaking coal from April 1, 2021 1
Slide 12: Senior Management Team Changes
Senior Management Team Changes • Appointed three experienced senior executives: - Harry “Red” Conger, Executive Vice President and Chief Operating Officer - Jonathan Price, Senior Vice President and Chief Financial Officer - Nicolas Hooper, Senior Vice President, Corporate Development • Appointed fi
Slide 13: Strong Financial Position
Strong Financial Position Further Strengthened Liquidity Maintaining Investment Grade Credit Ratings • C$6.9 billion of liquidity1 as at July 22, 2020, including $430 million in cash Reduced Near-Term Debt Maturities • US$5.0 billion available through two committed • Issued US$550 million of 3.9% 10
Slide 14: Summary
Summary • Quality operating assets in stable jurisdictions • Copper growth strategy - funded and being implemented • Continuing to advance our key priorities to generate long term value for shareholders: 1. QB2 Project 2. Neptune Facility Upgrade 3. RACE21TM 4. Cost Reduction Program Significant pot
Slide 15: Appendix
Appendix Teck
Slide 16: Notes
Notes Slide 5: Quality Operating Assets in Stable Jurisdictions 1. Adjusted EBTIDA generated from October 1, 2008 to June 30, 2020. This reflects the change in accounting policy to capitalize stripping from January 1, 2013. Waste rock stripping costs incurred in the production phase of a surface min
Slide 17: COVID-19 Response
COVID-19 Response = | a | ig Teck
Slide 18: COVID-19 Response: Five Pillar Approach
COVID-19 Response: Five Pillar Approach Employee Communities & Business Communication Prevention Support Public Health Continuity • Nothing is more important than the health and the safety of our employees, contractors and the communities where we operate • Following the most up-to-date direction fr
Slide 19: Supporting Global and Community Priorities
Supporting Global and Community Priorities $20-million fund to support COVID-19 response building on our existing programs Supporting healthcare Supporting international relief Support for women, COVID-19 providers and infection and regional organizations to Indigenous peoples, other Support control
Slide 20: Quebrada Blanca
Quebrada Blanca Photo: Concentrator Grinding Area
Slide 21: QB2 Capital Estimate Updated April 1, 2020
QB2 Capital Estimate Updated April 1, 2020 Capital cost does not include impact of COVID-19 Current Estimate1 Capital Cost (inc. escalation) US$5.2B To-go April 1, 2020 US$3.9B • Engineering, Contract Formation and Procurement approaching 100% Exchange Rate and in close out 775 CLP:USD • Includes ac
Slide 22: QB2 Project
QB2 Project Executing on a world class development asset Highlights Location Vast, long life deposit in favourable jurisdiction Chile Peru Very low strip ratio Bolivia Arica y Arica Parinacota Region Low all in sustaining costs (AISC)1 Cerro Tarapacá Colorado Collahuasi Region Potential to b
Slide 23: QB2 Rebalances Teck’s Portfolio
QB2 Rebalances Teck’s Portfolio Delivers on copper growth strategy • Rebalances Teck's portfolio over time to make the Teck's Annual Copper Production (kt Cu) contribution from copper similar to steelmaking coal 587 • On a consolidated basis copper production is 116 doubled • On an attributable basi
Slide 24: QB2’s Competitive Cost Position
QB2’s Competitive Cost Position Competitive Operating Cost & Capital Intensity Low Cash Cost Position • Given the exceptionally low strip ratio, consistent grade C1 Cash Cost2 & AISC3 Curve1 (US$/lb, 2023E) profile, compact site layout, and high level of automation, QB2 is expected to have attractiv
Slide 25: Vast, Long Life Deposit at Quebrada Blanca
Vast, Long Life Deposit at Quebrada Blanca QB2 Uses Only ~20% of R&R1 Extension Potential • Resources exclusive of Reserves increased 55% from Reserve and Resource Tonnage (Mt) 2017 to the 2019 Reserves and Resources Tonnage1 • Initial 28 year mine life processes ~20% of the 2019 Reserve and Resourc
Slide 26: 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 27: 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 Silver Silver Cu Mo Grade Cu Mo Grade RESERVES Mt Grade % Grade % RESERVES Mt Grade % Grade % ppm 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 28: 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 29: 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 • In 2019, Sumitomo1 contribution recorded within • Total shareholde
Slide 30: Notes - Appendix: Quebrada Blanca
Notes - Appendix: Quebrada Blanca Slide 21: QB2 Capital Estimate Updated April 1, 2020 1. On a 100% go forward basis from January 1, 2019 including escalation and excluding working capital or interest during construction using actual realized exchange rates until March 30, 2020 and assuming a CLP/US
Slide 31: Notes - Appendix: Quebrada Blanca
Notes - Appendix: Quebrada Blanca Slide 27: 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 strip ratio is 0.4
Slide 32: Strategy and Overview
Strategy and Overview Teck
Slide 33: Consistent Long-Term Strategy
Consistent Long-Term Strategy • Diversification • Long life assets • Low cost • Appropriate scale • Low risk jurisdictions 33
Slide 34: Attractive Portfolio of Long-Life Assets
Attractive Portfolio of Long-Life Assets Low risk jurisdictions 34
Slide 35: Global Customer Base
Global Customer Base Revenue contribution from diverse markets (2019) 1 1 35
Slide 36: Diverse Pipeline of Growth Options
Diverse Pipeline of Growth Options In Construction Medium-Term Future Options Growth Options QB2 QB3 Galore Creek Zafranal Schaft Creek Copper Strong platform HVC Brownfield Mesaba with substantial growth options NuevaUnión San Nicolás (Cu-Zn) Zinc Red Dog VIP2 Project Antamina Brownfield Teena Prem
Slide 37: Disciplined Approach to M&A
Disciplined Approach to M&A $1,500 Recent Transaction History QB2 Divestment Waneta Dam, (30%)7 $1,200M6 $1,072M Net Proceeds (Cost) (C$M) Antamina $1,000 Silver Stream2 $795M CdA Gold $500 Stream1, Osisko Royalty Sandstorm Royalty $206M Project Corridor Package, Package3 /Nueva Union, Wintering Hil
Slide 38: Production Guidance
Production Guidance H1 2020 H2 2020 3-YEAR GUIDANCE1 ACTUALS GUIDANCE1 (2021-2023) Steelmaking Coal 10 Mt 11-12 Mt 26.0-27.0 Mt Copper2,3,4 Highland Valley Concentrate 56.4 kt 70-75 kt 145-165 kt Antamina Concentrate 35.1 kt 45-50 kt 90 kt Carmen de Andecollo Concentrate + Cathode 31.5 kt 27-30 kt 5
Slide 39: Sales and Unit Cost Guidance
Sales and Unit Cost Guidance Sales Q2 2020 ACTUALS Q3 2020 GUIDANCE1 Steelmaking Coal 5.0 Mt 5.0-5.4 Mt Zinc - Red Dog Zinc in Concentrate 93 kt 160-180 kt Unit Costs H1 2020 ACTUALS H2 2020 GUIDANCE1 2 Steelmaking Coal Adjusted site cash cost of sales7 C$66/t C$60-64/t Transportation costs C$41/t C
Slide 40: Capital Expenditures Guidance
Capital Expenditures Guidance Sustaining and Growth Capital Quebrada Blanca Phase 2 (Teck’s share 2020 (Teck’s share 2020 in CAD$ millions) Guidance1 in CAD$ millions) Guidance1 Sustaining QB2 Capital Expenditures $ 1,820 Steelmaking coal2 $ 630 Total capex, before SMM/SC contribution $ 3,350 Copper
Slide 41: Commodity Price Leverage
Commodity Price Leverage1 MID-POINT OF 2020 PRODUCTION ESTIMATED EFFECT ON ESTIMATED EFFECT ON GUIDANCE2,5 CHANGE ANNUALIZED PROFIT3 ANNUALIZED EBITDA3 $C/$US C$0.01 C$31M /$0.01∆ C$46M /$0.01∆ Coal 21.5 Mt US$1/tonne C$17M /$1∆ C$26M /$1∆ Copper 282.5 kt US$0.01/lb C$5M /$0.01∆ C$8M /$0.01∆ Zinc4 8
Slide 42: Cost Reduction Program
Cost Reduction Program • In Q4 2019: - Achieved ~$210 million of capital and operating reductions, exceeding our target of $170 million - Increased our total targeted reductions to ~$610 million of previously planned spending through the end of 2020, vs. the previous target of $500 million • On Apri
Slide 43: Capital Allocation Framework
Capital Allocation Framework SUSTAINING SUPPLEMENTAL BASE CAPEX SHAREHOLDER DIVIDEND (including stripping) DISTRIBUTIONS The balance of remaining cash is available to finance further enhancement or growth opportunities. Plus at Least 30% If there is no immediate need Available Cash Flow1 for this ca
Slide 44: Strong Track Record of Returning Cash to Shareholders
Strong Track Record of Returning Cash to Shareholders ~$6.8 billion returned from January 1, 2003 to June 30, 2020 Dividends • $4.4 billion since 2003, representing ~32% of free cash flow1 Share Buybacks • $2.3 billion since 2003, representing ~17% of free cash flow1 44
Slide 45: Tax-Efficient Earnings in Canada
Tax-Efficient Earnings in Canada ~C$3.4 billion in available tax pools at December 31, 2019 • Includes: ‒ $2.6 billion in net operating loss carryforwards ‒ $0.5 billion in Canadian Development Expenses (30% declining balance p.a.) ‒ $0.3 billion in allowable capital loss carryforwards • Applies to
Slide 46: Share Structure & Principal Shareholders
Share Structure & Principal Shareholders Teck Resources Limited at December 31, 2019 VOTING SHARES HELD PERCENT 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 47: Notes: Appendix – Strategy and Overview
Notes: Appendix – Strategy and Overview Slide 35: Global Customer Base 1. Gross profit before depreciation and amortization is a non-GAAP financial measure. See “Non-GAAP Financial Measures” slides. Slide 37: Disciplined Approach to M&A 1. Carmen de Andacollo gold stream transaction occurred in USD
Slide 48: Notes: Appendix – Strategy and Overview
Notes: Appendix – Strategy and Overview Slide 40: Capital Expenditures Guidance 1. As at July 22, 2020. See Q2 2020 press release for further information. 2. Steelmaking coal sustaining capital guidance includes $305 million of water treatment capital. 3. RACE21TM capital expenditures for 2020 inclu
Slide 49: Sustainability
Sustainability Teck
Slide 50: 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 Full list of strategic priorities and goals appear
Slide 51: Sustainability Leadership
Sustainability Leadership Aligned with Leading External Standards and Practices See the full list on our Memberships and Partnerships page (https://www.teck.com/responsibility/approach-to-responsibility/policies-and-commitments/memberships-&-partnerships/) 51
Slide 52: Health and Safety
Health and Safety 2019 Performance • 85% of employees trained in new hazard Incident Frequency (per 200,000 hours worked) identification program against a target of 50% 0.5 0.4 • Safety performance in 2019 0.3 - 16% reduction in High-Potential Incidents 0.2 - 18% decrease in Lost-Time Disabling 0.1
Slide 53: Climate Action
Climate Action Positioning for Low-Carbon Economy Scope 1+2 emissions per copper equivalent ranking1 Well positioned for a (tCO2e/t CuEq, 2017) Low-Carbon Economy Among lowest GHG intensity miners globally on a copper-equivalent basis GHG intensity for steelmaking coal and copper production among lo
Slide 54: Climate Action
Climate Action Key Activities for Short-Term Goals Reduce the carbon Procure 50% of Accelerate the adoption of intensity of our our electricity demands zero-emissions alternatives operations by in Chile from clean for transportation by by energy by 2025 and displacing the 33% 2030 100% by 2030 equiv
Slide 55: Climate Action: Path to Carbon Neutrality
Climate Action Path to Carbon Neutrality Apply Prioritize Opportunities and Deliver Cost Competitive Reductions Decarbonization Emissions Framework sources Select abatement options Renewable 2020-2030: Avoid Power supply energy Target readily available, cost Mitigation Hierarchy Electrification comp
Slide 56: Climate Action
Climate Action Cleaner, Safer Vehicles Initiative • 27 of the world’s leading mining companies and OEMs collaborating in a non-competitive space via ICMM • Accelerating the development of a new generation of mining vehicles with less: o GHG emissions o Diesel particulate matter o Chance of collision
Slide 57: Water Management
Water Management Long Term Strategic Priorities and Goals Implement innovative water management and water treatment solutions to protect water quality downstream of all our operations. Transition to seawater or low-quality water sources for all operations in water-scarce regions by 2040. 57
Slide 58: Water Quality in the Elk Valley
Water Quality in the Elk Valley Advancing Innovative Technologies Elk Valley Water Quality Plan developed with government, Indigenous Peoples and communities to address water quality challenges Saturated Rock Fill Tank-Based Plants Nitrate Reduction 58
Slide 59: Elk Valley Water Treatment
Elk Valley Water Treatment Clear Path Forward for Improving Water Quality Millions of Litres per Day Total investment in water treatment of $655 to $705 million1 from 2020-2024 1. From 2021 to 2024, we also plan to spend ~$85 million in capital on source control and calcite management and ~$90 milli
Slide 60: Tailings Management
Tailings Management Our Approach • Management and emergency Teck has comprehensive systems and response aligned with Towards procedures in place based on 6 levels Sustainable Mining Protocols of protection: • Dam Safety Inspection reports and special review by external experts 1 Surveillance 2 Inter
Slide 61: Further Strengthening Tailings Safety and Security
Further Strengthening Tailings Safety and Security 1. Special review by external experts • Confirmed no immediate or emerging issues that could result in failure • Confirmed Teck tailings management practices industry leading 2. Supporting industry-wide improvements • ICMM-UN-PRI Global Tailings Rev
Slide 62: Relationships with Communities and Indigenous Peoples, Respecting Human Rights
Relationships with Communities and Indigenous Peoples, Respecting Human Rights • Agreements in place at all mining operations within or adjacent to Indigenous Peoples’ territories • $225 million to Indigenous businesses in 2019 through procurement • 72% of total local employment in 2019 • $19 millio
Slide 63: Inclusion and Diversity
Inclusion and Diversity • Inclusion and Diversity: pledged to improve representation of under-represented groups in our workforce: women, Indigenous, Asian, Black, and all people of colour (BIPOC), persons with disabilities, and members of the LGBTQ+ community • Gender Diversity: 20% of workforce ar
Slide 64: Sustainability Performance and Compensation
Sustainability Performance and Compensation • Compensation program is linked to sustainability and health and safety performance through individual, department and company-wide objectives. • Objectives related to climate change, communities and Indigenous Peoples, tailings and water management and o
Slide 65: Questions and Further Information
Questions and Further Information ESG Resources for Investors • Sustainability reporting for 19 years in Core accordance with the Global Reporting Initiative (GRI) Standards and G4 Mining and Metals Sector Disclosures • Sustainability Accounting Standards Board (SASB) Index published in March 2020 •
Slide 66: Collective Agreements
Collective Agreements OPERATION EXPIRY DATES Elkview October 31, 2020 Fording River April 30, 2021 Antamina July 31, 2021 Highland Valley Copper September 30, 2021 Trail Operations May 31, 2022 Cardinal River June 30, 2022 January 31, 2022 Quebrada Blanca March 31, 2022 November 20, 2022 September 3
Slide 67: Notes: Appendix – Sustainability
Notes: Appendix – Sustainability Slide 53: Climate Action 1. Source: Barclays Research, Teck. 67
Slide 68: Technology and Innovation
Technology and Innovation Teck
Slide 69: RACE21: EBITDA Improvements
RACE21TM Our innovation-driven business transformation program • Achieved $160 million1 in annualized EBITDA2 RACE21TM Potential Future Path to Value improvements as of the end of 2019 ‒ Exceeded our initial target of $150 million • In the short term, reduced some deployment $1 billion EBITDA2 Impro
Slide 70: RACE21: Renew, Automate
RACE21TM Renew Automate • Unify and modernize Teck’s core systems • Accelerate and scale autonomy program • Establish technology foundation that facilitates • Transformational shift in safety deployment of Connect and Automate reliably and at • Reduce per-tonne mining costs with smaller fleets scale
Slide 71: RACE21: Connect, Empower
RACE21TM Connect Empower • Link disparate systems into a collaborative digital • The natural implication of Renew, Automate, and platform with powerful tools for sensing and analyzing Connect is we can re-imagine what it means to work in real time at Teck and re-design our operating model to attract
Slide 72: Significant Value To Be Captured
Significant Value To Be Captured SAFETY PROFITABILITY PRODUCTIVITY COST Transformational Step-change Increased Reduced safety impact with impact to productivity through operational costs fewer people in profitability new technologies by achieving high risk and internal manufacturing environments inn
Slide 73: Electrification of Mining
Electrification of Mining Electric crew buses at our Electric boom vehicles to be Working with OEMs through steel making coal tested in pit. ICMM to develop zero-GHG operations. surface mining vehicles Teck is taking steps to reduce its carbon footprint by starting to electrify the fleet. 73
Slide 74: Notes: Technology and Innovation
Notes: Technology and Innovation Slide 69: RACE21TM 1. Based on commodity prices at December 31, 2019 and assumed to remain in effect through 2020: steelmaking coal US$136.50 per tonne, copper US$2.79 per pound, zinc US$1.04 per pound and a C$/US$ exchange rate of $1.30. 1. EBITDA is a non-GAAP fina
Slide 75: Steelmaking Coal Business Unit & Markets
Steelmaking Coal Business Unit & Markets
Slide 76: Steelmaking Coal Market
Steelmaking Coal Market COVID-19 reducing demand, supply, and already low investment Near term outlook: Uncertainties remain but signs Steelmaking Coal Prices1 (US$/t) of recovery emerging 350 • China: Stricter import restrictions but record Aug YTD seaborne imports supported by record steel output
Slide 77: Steelmaking Coal Facts
Steelmaking Coal Facts Global Coal Production1: ~7.8 billion tonnes Steelmaking Coal Production2: ~1,130 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 78: Steelmaking Coal Demand Growth Forecast
Steelmaking Coal Demand Growth Forecast Demand impacted by COVID-19 but signs of recovery Seaborne Steelmaking Coal Imports1 (Mt) Change 2020 vs. 2019 317 4 11 320 11 310 300 10 4 290 286 280 270 260 2019 China JKT India Europe Brazil 2020 Includes: • India: Lockdown and record new COVID-19 cases •
Slide 79: Indian Steelmaking Coal Imports
Indian Steelmaking Coal Imports Mid- & long-term imports supported by secular 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 79
Slide 80: Chinese Steelmaking Coal Imports
Chinese Steelmaking Coal Imports YTD Aug 2020 seaborne imports up by +10 Mt Chinese Crude Steel Production (CSP), Hot Metal Chinese Coking Coal Imports2 (Mt) Production (HMP) and Coal Production (Mt)1 1200 520 80 70 16 1000 500 60 34 28 15 26 800 480 50 28 24 19 13 600 460 40 15 20 30 60 400 440 48
Slide 81: Large Users in China Increasing Imports
Large Users in China Increasing Imports ~2/3 of China crude steel produced on coast; projects support imports Seaborne Coking Coal Imports1 (Mt) ZONGHENG FENGNAN PROJECT 80 • Inland plant relocating to coastal area • Capacity: crude steel 8 Mt 60 • Status: Construction started in 2017; 2 of 5 blast
Slide 82: Chinese Steel Margins
Chinese Steel Margins Margins remain positive China Hot Rolled Coil (HRC) Margins and Steelmaking Coal (HCC) Prices1 (US$/t) 350 300 250 200 150 100 50 0 -50 May-15 Jul-15 May-16 Jul-16 May-17 Jul-17 May-18 Jul-18 May-19 Jul-19 May-20 Jul-20 Jan-15 Mar-15 Jan-16 Mar-16 Jan-17 Mar-17 Jan-18 Mar-18 Ja
Slide 83: Chinese Scrap Use Continues to Remain Low
Chinese Scrap Use Continues to Remain Low Scrap supply limits EAF share in steel output China’s Scrap Ratio Lower than Other Countries China Steel Use By Sector (20191) (2000-2019)2 100% 83% 80% 69% 55% 60% 42% 40% 34% Others Construction 40% 22% 15-25% 50-60% 20% 0% Turkey USA EU Russia Korea Japan
Slide 84: Steelmaking Coal Supply Forecast to Shrink
Steelmaking Coal Supply Forecast to Shrink COVID-19 and market driven supply response Seaborne Steelmaking Coal Exports1 (Mt) Change 2020 vs. 2019 320 314 11 310 10 300 3 3 290 2 1 284 280 270 260 2019 Australia USA Russia Canada Mozambique Supply 2020 Includes: Others • Australia: Mine disruptions
Slide 85: US Coal Producers are Swing Suppliers
US Coal Producers are Swing Suppliers Australian Steelmaking Coal Exports1 (Mt) US Steelmaking Coal Exports1 (Mt) 200 70 180 60 160 140 50 120 40 100 80 30 60 20 40 10 20 0 0 85
Slide 86: Canadian & Mozambique Steelmaking Coal Exports
Canadian & Mozambique Steelmaking Coal Exports Canadian Exports1 (Mt) Mozambique Exports1 (Mt) 40 9 35 8 30 7 25 6 20 5 4 15 3 10 2 5 1 0 0 86
Slide 87: 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% 2017: ~10% AMERICAS 2019: ~15% ~5% ASIA EXCL. CHINA & INDIA 2013: ~40% 2017: ~
Slide 88: An Integrated Long Life Coal Business
An Integrated Long Life Coal Business ELK VALLEY British Columbia Prince Rupert Elco Quintette • 840 million tonnes1 of Ridley Alberta Fording River reserves support ~26 to 27 Mt Terminal Prince George Edmonton of annual production for many Greenhills years Elkford Cardinal River Line Creek • Geogra
Slide 89: Long Life with Growth Potential in Steelmaking Coal
Long Life with Growth Potential in Steelmaking Coal Annual Production Capacity1 (Million tonnes) 27 million tonnes of annual 30 production capacity in 2021 29 Structure and beyond 28 Transition 27 Moving Past Transition: 26 • Coal Mountain closed and production has 25 been replaced with new mining a
Slide 90: Steelmaking Coal Unit Costs
Steelmaking Coal Unit Costs Unit Costs1 in 2019 Depreciation and Operating Cost1 Breakdown in 2019 Amortization Labour 31% 23% Contractors and Consultants 13% Royalties Operating Costs Operating Supplies 16% 1% 48% Repairs and Maintenance Parts 19% Energy 17% Transportation Other 4% 29% Total 100% 9
Slide 91: Setting Up for Strong Long-Term Cash Flows in Steelmaking Coal
Setting Up for Strong Long-Term Cash Flows In Steelmaking Coal Executing on four pillars to transform Targeting long term cost of cost structure and optimize margins sales below ~$60 per tonne • Strip ratio decreasing over next four years ‒ Future strip ratio on par with historical average • Strateg
Slide 92: Investing in Production Capacity and Productivities
Investing in Production Capacity and Productivities In Steelmaking Coal Maintaining historical dollar per $30 Sustaining Capital, Excluding Water Treatment and Neptune1 ($/t) tonne sustaining investment levels $25 2010-2016: Average spend of ~$11 per tonne1 $20 • Swift at Fording River and Line Cree
Slide 93: Teck’s Pricing Mechanisms
Teck’s Pricing Mechanisms Coal sales book generally moves with the market SALES MIX Pricing Mechanisms (%) • ~40% quarterly contract price • ~60% shorter than quarterly pricing mechanisms (including “spot”) 30% Index Linked PRODUCT MIX 70% Fixed • ~75% of production is high-quality HCC Price • ~25%
Slide 94: Quality and Basis Spreads
Quality and Basis Spreads Impact Teck’s average realized steelmaking coal prices HCC / SHCC Prices and Spread1 (US$/t) HCC Seaborne / China Domestic Prices 350 100 and Spread2 (US$/t) 300 350 120 100 75 300 250 80 250 60 200 40 50 200 20 150 150 0 (20) 100 25 100 (40) (60) 50 50 (80) 0 0 0 (100) 1-J
Slide 95: West Coast Port Capacity
West Coast Port Capacity NEPTUNE COAL TERMINAL • Planned capacity growth to >18.5 Mtpa Teck’s Contracted West Coast • 100% ownership of coal capacity Port Capacity1 (Nominal Mt) • Current coal capacity 12.5 Mtpa • Significant investment to upgrade and rejuvenate 6 Ridley Terminals WESTSHORE TERMINAL
Slide 96: Notes: Appendix – Steelmaking Coal
Notes: Appendix – Steelmaking Coal Slide 76: Steelmaking Coal Market 1. Source: Argus, Teck. Plotted to September 29, 2020. Slide 77: Steelmaking Coal Facts 1. Source: IEA. 2. Source: Wood Mackenzie (Long Term Outlook H1 2020). 3. Source: World Coal Association. Assumes all of the steel required is
Slide 97: Notes: Appendix – Steelmaking Coal
Notes: Appendix – Steelmaking Coal Slide 88: An Integrated Long Life Coal Business 1. As at December 31, 2019,Teck portion, excluding oxide. Source: Teck AIF. Slide 89: Long Life with Growth Potential in Steelmaking Coal 1. Subject to market conditions and obtaining relevant permits. Slide 90: Steel
Slide 98: Copper Business Unit & Markets
Copper Business Unit & Markets
Slide 99: Supply Continues to be at Risk, Copper Demand Improves
Supply Continues to be at Risk Copper Demand Improves • Stronger cathode demand in China putting upward pressure on copper prices • Demand Ex-China improving slowly • Government closures of mines, ports and distribution kept concentrate market tight and impacted cathode supply • Concentrate market t
Slide 100: Copper Market
Copper Market Raw materials weigh on downstream production Scrap Availability Improving on Higher Copper Price1 • Demand for raw materials and mine disruptions 3,000 kept concentrate demand high 2,000 ‒ Mine production cuts over 1.5 Mt vs. RMB/Mt 1,000 smelter cuts of ~250 kt - ‒ Chinese smelters br
Slide 101: Global Copper Mine Production Increasing Slowly
Global Copper Mine Production Increasing Slowly Mine Production Set To Increase 1.8 Mt By 20231 Global Copper Mine Production2 (kt contained) Includes: Mine kmt 22,000 PT – Freeport (vs 2019) 490 20,000 Kamoa – Kakula 350 Quebrada Blanca 300 18,000 Quellaveco 300 16,000 Cobre Panama (vs 2019) 272 Ch
Slide 102: Copper Disruptions Return To Impact Mines
Copper Disruptions Return To Impact Mines TC/RCs Spot and Annual Falling1 (US$/lb) Disruptions (kt)2; $120 2005 2007 2009 2011 2013 2015 2017 2019 $110 0 $100 -200 $90 -400 6.3% $80 YTD -600 Reported $70 2.7% -800 $60 3.6% -1,000 4.0% $50 $40 -1,200 $30 -1,400 If South American Mines Run at 90% for
Slide 103: Rapid Growth in Chinese Copper Smelter Capacity
Rapid Growth in Chinese Copper Smelter Capacity Limited and delayed domestic mine projects Chinese Copper Mine Growth1 +3.2 Mt of New Smelting Capacity2 (kt) (kt blister) 400 400 2019 -2021 2022 2023 2018/2019 2020 2021 – 2023 137kt 130 kt 25 kt 1,6230 kt 670 kt 930 kt 300 300 200 200 100 100 0 0 10
Slide 104: Copper Supply
Copper Supply Chinese imports shift to concentrates to feed smelter capacity increases Chinese Scrap/Blister Imports Fall2 Chinese Imports Shift to Concentrates3 (Copper content, kt) (Copper content, kt) 3,000 12,000 2,500 10,000 2,000 8,000 1,500 6,000 1,000 4,000 500 2,000 0 0 2013 2014 2015 2016
Slide 105: Copper Metal Stocks
Copper Metal Stocks Raw material shortages increase cathode demand • Exchange stocks have fallen 260kt since March 2020, Daily Copper Prices (US$/mt) and Stocks1 (kt) now equivalent to 6.1 days of global consumption $12,000 1,800 • SHFE stocks have decreased ~200kt since Lunar 1,600 $10,000 New Year
Slide 106: Long Life and Stable Assets in Copper
Long Life and Stable Assets in Copper Antamina Highland Valley Carmen de Andacollo Quebrada Blanca • Returned to full production • Returned to full production; • Production rates • Production rates rates ahead of plan recovery plans in place maintained with reduced maintained with reduced • Guidance
Slide 107: Copper Unit Costs
Copper Unit Costs Unit Costs1 in 2019 Depreciation and Operating Cost1 Breakdown in 2019 Amortization Labour 29% 25% Contractors and Consultants 11% Royalties Operating Costs Operating Supplies 16% 1% 69% Repairs and Maintenance Parts 16% Transportation Energy 20% 5% Other 8% Total 100% 107
Slide 108: Cost Discipline and Cash Flow Focus in Copper
Cost Discipline and Cash Flow Focus in Copper Productivity Focused on Minimizing Capital • Focus on asset management and cross • Essential water, tailings and regulatory site sharing projects drive sustaining capital • Robust continuous improvement requirements pipeline a key driver of margins • Nea
Slide 109: Major Growth and Life Extension Projects in Copper
Major Growth and Life Extension Projects in Copper Focus remains on QB2 construction, with other projects slowed Quebrada Blanca • Focus is on QB2 and construction re-start • QB2: 316 kt of CuEq production for first 5 years1 - Doubles copper production with low strip ratio and AISC of US$1.38/lb cop
Slide 110: Notes: Appendix – Copper
Notes: Appendix – Copper Slide 100: Copper Market 1. Source: Shanghai Metal Market. 2. Source: Wood Mackenzie. Slide 101: Global Copper Mine Production Increasing Slowly 1. Source: Data compiled by Teck based on information from Wood Mackenzie and Company Reports (average production first 10 years).
Slide 111: Zinc Business Unit & Markets
Zinc Business Unit & Markets Teck
Slide 112: Zinc Mine Disruptions Maintain Pressure on Smelters
Zinc Mine Disruptions Maintain Pressure on Smelters • COVID-19 and poor financials resulted in numerous mine closures, eliminating significant production in 2020 • Mines restarting after COVID-19 shutdowns, although many SA mines continue to struggle, refined production expected to be affected in th
Slide 113: Zinc Market
Zinc Market Raw materials shortages and improving demand support prices • Demand for raw materials and mine disruptions due to Steel Demand in China Supporting Zinc Price1 COVID-19 keeping concentrate demand high Operating Rates % 100 ‒ Mine production growth in 2020 now forecast to 75 decline with
Slide 114: Logistical Issues and Low Prices Impacted Chinese Mines
Logistical Issues and Low Prices Impacted Chinese Mines, Smelter Production Increases Chinese Mine Production Flat in 20201 Chinese Refined Production Up 11% Since 20182 (kt Contained) (kt Contained) 5,000 7,000 6,500 4,500 6,000 4,000 5,500 3,500 5,000 4,500 3,000 4,000 2,500 3,500 2,000 3,000 2013
Slide 115: Global Mine Production Slowly Recovering
Global Mine Production Slowly Recovering, Although Cuts Already Significant for Year Estimated Chinese Zinc Mine Growth Changes in Mine Production Since Q1 20182 Rarely Achieved1 (Kmt Contained) New Mines China Mines ROW Mines Change 600 1,000 0 400 360 392 -1,000 350 270 300 -2,000 250 237 200 200
Slide 116: Increased Demand for Imported Metal Continues
Despite Increased Production in China, Increased Demand for Imported Metal Continues De-stocking Continues Additional Zinc Metal Chinese Stocks at Record Lows1,2 (kt) Required to Fill the Gap3 (kt) 1,600 1,600 1,400 1,400 1,200 1,204 1,213 1,229 1,200 1,000 1,000 800 767 797 800 652 627 600 600 503
Slide 117: Zinc Supply
Zinc Supply Mine production at risk of declining further in 2020; 2021 growth optimistic • Chinese mine production returned, although Zinc Mine Production1 (kt contained) increasing smelter production has kept China reliant 16,000 on imported concentrate 14,000 - Rising price of zinc driving Chinese
Slide 118: Zinc Concentrate Treatment Charges
Zinc Concentrate Treatment Charges Treatment Charges1 (USD/dmt) 350 300 250 200 150 100 50 0 Spot TC Benchmark TC 118
Slide 119: Zinc Metal Stocks
Zinc Metal Stocks COVID-19 related decrease in demand resulting in minor inventory build • Deficits over past 5 years have driven down Daily Zinc Prices1,2 (US$/mt) stocks, with total stocks at only 4.0 days at the and Stocks1,2 (kmt) beginning of 2020. 5,000 2,500 • Despite demand returning, overal
Slide 120: 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 400 Public Company 350 Teck Private Company 300 250 200 150 100 50 0 120
Slide 121: Integrated Zinc Business
Integrated Zinc Business Red Dog Trail • Operations maintained with travel • Operations maintained with reduced restrictions and modified schedules workforce on site • Guidance of 260,000 to 285,000 tonnes • Guidance of 155,000 to 165,000 tonnes zinc in H2 2020 refined zinc and 30,000 to 35,000 tonn
Slide 122: Cost Discipline and Cash Flow in Zinc
Cost Discipline and Cash Flow in Zinc Productivity Focused on Minimizing Capital • Focus on asset management and cross • Essential water, tailings and regulatory site sharing projects drive sustaining capital • Robust continuous improvement requirements pipeline a key driver of margins • Near term h
Slide 123: Red Dog Sales Seasonality
Red Dog Sales Seasonality • Operates 12 months Zinc Sales 1 (%) • Ships ~ 4 months 40% 34% 30% 30% • Shipments to inventory in Canada 21% 15% 20% and Europe; Direct sales to Asia 10% • ~65% of zinc sales in second half 0% of year Q1 Q2 Q3 Q4 • ~100% of lead sales in second half Lead Sales1 (%) of ye
Slide 124: Zinc Unit Costs
Zinc Unit Costs Unit Costs1 in 2019 Depreciation and Amortization 10% Operating Cost1 Breakdown in 2019 Royalties Operating Costs Labour 36% 13% 38% Contractors and Consultants 10% Operating Supplies 12% Repairs and Maintenance Parts 10% Concentrate Energy 18% Purchases Other 14% 27% Total 100% Tran
Slide 125: Red Dog Net Cash Unit Cost Seasonality
Red Dog Net Cash Unit Cost Seasonality Normal quarterly variation not expected in 2020 Red Dog Net Cash Unit Costs1 (US$/lb) 0.60 0.40 0.20 - Q1 Q2 Q3 Q4 • Seasonality of Red Dog unit costs largely due to lead sales during the shipping season • Higher net cash unit costs expected in H2 2020 as by-pr
Slide 126: Red Dog in Bottom Quartile of Zinc Cost Curves
Red Dog in Bottom Quartile of Zinc Cost Curves 20 Percent of Zn Mines at Risk of Closing at Current Price Total Cash + Capex Cost Curve 20201 (US¢/lb) 200 2020 Costs Based on Current Prices Current Spot LME Price 180 160 140 120 100 80 60 40 20 RED DOG 0 0% 25% 50% 75% 100% 126
Slide 127: Red Dog Extension Project
Red Dog Extension Project Long Life Asset • Aktigiruq exploration target of 80-150 Mt @ 16-18% Zn + Pb1 • Anarraaq Inferred Resource2: 19.4 Mt @14.4% Zn, 4.2% Pb Quality Project • Premier zinc district • Significant mineralized system • High grade Stable Jurisdiction • Operating history • ~12 km fro
Slide 128: Notes: Appendix – Zinc
Notes: Appendix – Zinc Slide 125: Zinc Market 1. Source: Shanghai Metal Market. 2. Source: Based on information from the International Zinc Study Group Data. Slide 126: Logistical Issues and Low Prices Impacted Chinese Mines, Smelter Production Increases 1. Source: Data compiled by Teck based on inf
Slide 129: Energy Business Unit & Markets
Energy Business Unit & Markets
Slide 130: Energy Benchmark Pricing
Energy Benchmark Pricing Calendar NYMEX WTI Price1 , WTI/WCS Basis Differential at Hardisty2 and WTI/WCS Basis Differential at the US Gulf Coast3 (US$/bbl) 80 80 70 70 60 60 50 50 40 40 30 30 20 20 10 10 0 - (10) (10) Calendar NYMEX WTI Price WTI/WCS Basis Differential at Hardisty WTI/WCS Basis Diff
Slide 131: Fort Hills is A Modern Oil Sands Mine
Fort Hills is A Modern Oil Sands Mine Production @ 100% (kbpd) • Higher quality partially de-carbonized Paraffinic Froth Treatment (PFT) product; 250 De-bottleneck potential lower greenhouse gas (GHG) emissions Best monthly 200 production rate • Temporarily operating at reduced (201 kbpd) production
Slide 132: Canada is a Leader in ESG
Canada is a Leader in ESG The world benefits from Fort Hills low carbon intensity product during transition to renewables Yale’s Environmental Performance Index World Oil Producers Of Top 10 Oil Reserve Countries Ranked By Corruption and Volume1 80 60 40 20 0 Canada should be a supplier of choice to
Slide 133: 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 Total Life Cycle Emissions Intensity sands has declined by 25% - estimated (kg CO2e/bbl refined product – gasoline/diesel) reduction of 15% to 20% by 2030 • P
Slide 134: Continuous Improvement in Emissions Intensity
Continuous Improvement in Emissions Intensity Fort Hills emissions performance has been outstanding to date • Recent analysis by IHS Markit shows 15% improvement in emissions intensity of mined dilbit PFT in 2018 - Includes emissions during Fort Hills ramp-up to full production where emissions are t
Slide 135: Fort Hills GHG Emissions
Fort Hills GHG Emissions Emissions Boundaries Upstream (Direct) Emissions Downstream (Indirect) Emissions Well to Wheels Image Source: IHS Markit; edited by Teck. 135
Slide 136: Fort Hills Blend Widely Accepted In Market
Fort Hills Blend Widely Accepted In Market A preferred feedstock and supplier of choice We produce a high quality refinery feedstock Teck’s Delivery Location (kbpd) • Low GHG intensity: <50% of US crude supply Teck Blend: • Including in-situ and upgraded synthetic 32.0 kbpd Our sales mix provides di
Slide 137: Pipeline Capacity Sufficient 2022-2023
Pipeline Capacity Sufficient 2022-2023 Differentials forecast to improve, more reflective of global pricing Near term: Western Canada Supply & Logistics Capacity • Rail shipments reduced in 2020 on (M bpd)1 shut-in production, increasing in 2021 7.5 7.0 Pipeline development progressing: 6.5 Rail • E
Slide 138: Notes: Appendix – Energy
Notes: Appendix – Energy Slide 130: Energy Benchmark Pricing 1. The WTI CMA is an average of the daily settle quoted price for WTI prices for future deliveries for the trading days during a calendar month. Source: CME Group. As at September 30, 2020. 2. WCS at Hardisty: an index value determined dur
Slide 139: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 140: 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 141: Non-GAAP Financial Measures
Non-GAAP Financial Measures Net cash unit costs – Net cash unit costs of principal product, after deducting co-product and by-product margins, are also a common industry measure. By deducting the co- and by-product margin per unit of the principal product, the margin for the mine on a per unit basis
Slide 142: Reconciliation of Profit (Loss) and Adjusted Profit
Non-GAAP Financial Measures Reconciliation of Profit (Loss) and Adjusted Profit Three months ended Three months ended Six months ended Six months ended (C$ in millions) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Profit (loss) attributable to shareholders $ (149) $ 231 $ (461) $ 861 Add
Slide 143: Reconciliation of Basic Earnings Per Share
Non-GAAP Financial Measures Reconciliation of Basic Earnings (Loss) Per Share to Adjusted Basic Earnings (Loss) Per Share Three months ended Three months ended Six months ended Six months ended (Per share amounts) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Basic earnings (loss) per shar
Slide 144: Reconciliation of Diluted Earnings Per Share
Non-GAAP Financial Measures Reconciliation of Diluted Earnings (Loss) Per Share to Adjusted Diluted Earnings Per Share Three months ended Three months ended Six months ended Six months ended (Per share amounts) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Diluted earnings (loss) per share
Slide 145: Reconciliation of Net Debt to Adjusted EBITDA Ratio
Non-GAAP Financial Measures Reconciliation of Net Debt to Adjusted EBITDA Ratio (A) (B) (C) (A+B+C) Twelve months ended Three months ended Three months ended Twelve months ended (C$ in millions) December 31, 2019 June 30, 2019 June 30, 2020 June 30, 2020 Profit (loss) $ (588) $ 894 $ (496) $ (1,978)
Slide 146: Net Debt to Adjusted EBITDA Ratio - Continued
Non-GAAP Financial Measures Reconciliation of Net Debt to Adjusted EBITDA Ratio - Continued (A) (B) (C) (A+B+C) Twelve months ended Three months ended Three months ended Twelve months ended (C$ in millions) December 31, 2019 June 30, 2019 June 30, 2020 June 30, 2020 Total debt at period end (F) $ 4,
Slide 147: Reconciliation of EBITDA and Adjusted EBITDA
Non-GAAP Financial Measures Reconciliation of EBITDA and Adjusted EBITDA Three months ended Three months ended Six months ended Six months ended (C$ in millions) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Profit (loss) $ (185) $ 250 $ (496) $ 894 Finance expense net of finance income 11
Slide 148: Reconciliation of Gross Profit Before Depreciation and Amortization
Non-GAAP Financial Measures Reconciliation of Gross Profit Before Depreciation and Amortization Three months ended Three months ended Six months ended Six months ended (C$ in millions) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Gross profit $ 139 $ 1,051 $ 537 $ 2,093 Depreciation and a
Slide 149: Reconciliation of Gross Profit Margins Before Depreciation
Non-GAAP Financial Measures Reconciliation of Gross Profit (Loss) Margins Before Depreciation Three months ended Three months ended Six months ended Six months ended (C$ in millions) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Revenues Steelmaking coal (E) $ 792 $ 1,588 $ 1,815 $ 3,140 C
Slide 150: Steelmaking Coal Unit Cost Reconciliation
Non-GAAP Financial Measures Steelmaking Coal Unit Cost Reconciliation Three months ended Three months ended Six months ended Six months ended (C$ in millions, except where noted) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Cost of sales as reported $ 734 $ 868 $ 1,511 $ 1,694 Less: Trans
Slide 151: Copper Unit Cost Reconciliation
Non-GAAP Financial Measures Copper Unit Cost Reconciliation Three months ended Three months ended Six months ended Six months ended (C$ in millions, except where noted) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Revenue as reported $ 405 $ 646 $ 975 $ 1,276 By-product revenue (A) (41) (
Slide 152: Zinc Unit Cost Reconciliation (Mining Operations)
Non-GAAP Financial Measures Zinc Unit Cost Reconciliation (Mining Operations)1 Three months ended Three months ended Six months ended Six months ended (C$ in millions, except where noted) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Revenue as reported $ 479 $ 609 $ 1,087 $ 1,321 Less: Tr
Slide 153: Zinc Unit Cost Reconciliation - Continued
Non-GAAP Financial Measures Zinc Unit Cost Reconciliation (Mining Operations)1 - Continued Three months ended Three months ended Six months ended Six months ended (C$ in millions, except where noted) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Payable pounds sold (millions) (E) 173.4 177
Slide 154: Energy Operating Netback Reconciliations
Non-GAAP Financial Measures Energy Operating Netback, Bitumen & Blended Bitumen Price Realized Reconciliations Three months ended Three months ended Six months ended Six months ended (C$ in millions, except where noted) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Revenue as reported $ 44
Slide 155: Energy Operating Netback Reconciliations - Continued
Non-GAAP Financial Measures Energy Operating Netback, Bitumen & Blended Bitumen Price Realized Reconciliations - Continued Three months ended Three months ended Six months ended Six months ended (C$ in millions, except where noted) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Per barrel a
Slide 156: Reconciliation of Coal Business Unit Adjusted EBITDA
Non-GAAP Financial Measures Reconciliation of Coal Business Unit Adjusted EBITDA October 1, 2008 to (C$ in millions) June 30, 2020 Gross Profit $ 19,463 Add back: Depreciation and amortization 7,466 Gross profit, before depreciation and amortization $ 26,929 Deduct: Other costs (422) Adjusted EBITDA
Slide 157: Reconciliation of Free Cash Flow
Non-GAAP Financial Measures Reconciliation of Free Cash Flow 2003 to (C$ in millions) Q2 2020 Cash Flow from Operations $47,166 Debt interest and finance charges paid (5,652) Capital expenditures, including capitalized stripping costs (26,853) Payments to non-controlling interests (NCI) (642) Free C
Slide 158: Investor Meetings
Investor Meetings hosted by October 8, 2020
Teck Resources — Investor Presentation (October 2020) on 6ix