Teck Resources Limited Class A · TSX:TECK.A
Teck Resources Limited Class A — Investor Presentation (February 2025)
28 slides from Teck Resources Limited Class A's investor presentation, Feb 24, 2025
Slide 1: Investor Presentation
INVESTOR PRESENTATION February 24, 2025
Slide 2: Caution Regarding Forward-Looking Statements
CAUTION REGARDING FORWARD-LOOKING STATEMENTS Both these slides and the accompanying oral presentation contain certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to as forward-looking statements). These statements relate
Slide 3: Responsible Growth and Value Creation
Driven by our purpose and values, we will grow to RESPONSIBLE become one of the world’s leading providers of responsibly-produced critical minerals. GROWTH AND VALUE CREATION Balancing growth with cash returns to shareholders Our strategy is focused around four pillars: METALS FOR THE VALUE-DRIVEN C
Slide 4: Executed Strategy in 2024
EXECUTED STRATEGY IN 2024 Delivering value to shareholders Transformation to pure-play energy transition metals company - leading to valuation re-rating Completed QB construction & achieved design throughput – leading to record copper production Industry-leading balance sheet strength with a net cas
Slide 5: Foundation of World-Class Operations
FOUNDATION OF WORLD-CLASS OPERATIONS Energy transition metal assets in established mining jurisdictions World-Class Copper Operations Integrated Zinc Operations Quebrada Blanca Highland Valley Antamina Carmen de Andacollo Red Dog Trail (60% ownership) (100% ownership) (22.5% ownership) (90% ownershi
Slide 6: Fundamentals of Our Commodities Remain Robust
FUNDAMENTALS OF OUR COMMODITIES REMAINS ROBUST Current macro and political environment supports base metals outlook Copper Zinc Global Economic Growth Increased urbanization, increased population growth and increased demand for infrastructure and technology Electrification Grid expansion and renewal
Slide 7: Teck's Commercial Strategy Enables Resilience
TECK’S COMMERCIAL STRATEGY ENABLES RESILIENCE Diversification provides commercial optionality Copper Concentrate Sales1 Finished and Specialty Metals Europe Americas (ex-US) 25% 10% China 24% Asia 41% Zinc Concentrate Sales1 Europe Regionally balanced sales book Americas (ex-US) 20% 34% Limited tari
Slide 8: 2025 Priorities to Drive Value Creation
2025 PRIORITIES TO DRIVE VALUE CREATION Balancing growth and cash returns to shareholders 1 Ramp-up QB to steady state, including the molybdenum plant 2 Grow copper production, reduce unit costs, and improve margins 3 Execute the record authorized share buyback 4 Progress value-accretive copper grow
Slide 9: Record QB Production in Q4 2024 - Ramp-Up on Track
RECORD QB PRODUCTION IN Q4 2024 - RAMP-UP ON TRACK 1 Record daily production throughout Q4 2024 Achieved design throughput Recovery rate improving 2025 Growth • Copper production expected to increase to 230-270kt in 2025 Design: 143ktpd Design: 86-92% 139 87 • 18-day extended shutdown in 131 83 84 8
Slide 10: Growing Copper Production with Improving Margins
GROWING COPPER PRODUCTION WITH IMPROVING MARGINS 2 Increase in copper production at lower costs in 2025 Copper Production Net Cash Unit Cost* Copper EBITDA Margin* Expansion (kt, contained copper) (US$/lb) (%, from operations) +10-27% (12)-(25)% 33% 42% 53% 2025 2023 2024 490- Consensus1 2.20 565 1.
Slide 11: Strong Track Record of Cash Returns to Shareholders
STRONG TRACK RECORD OF CASH RETURNS TO SHAREHOLDERS 3 Significant authorized returns remaining, improving per-share value Historical Cash Returns to Shareholders ($M) Additional Cash Returns to Shareholders ~$5.1B returned to shareholders since 20201 $1.8B2 in authorized share buybacks remaining fro
Slide 12: Value-Accretive Growth
VALUE-ACCRETIVE GROWTH 4 Significant growth expected in 2025; path to ~800 ktpa before end of the decade Value-Accretive Near-Term Copper Projects ~800 ktpa Quebrada Blanca Optimization & Debottlenecking (Cu-Mo-Ag | Brownfield | Chile | 60%) ~45-120 kt increase expected Optimizes value from a Tier 1
Slide 13: Industry-Leading Balance Sheet
INDUSTRY-LEADING BALANCE SHEET 5 Net cash position Net Cash* Position Debt Reduction Debt Repayments (US$M) As at December 31, 2024 Completed in 2024 $2.1B $2.5B 294/year 143 245 194 187 167 147 Term Notes Outstanding 108 Liquidity As at December 31, 2024 As of February 19, 2025 US$1.0B $11.3B 2031
Slide 14: Illustrative Accretive Growth on Per-Share Metrics
ILLUSTRATIVE ACCRETIVE GROWTH ON PER-SHARE METRICS Compound impact of copper growth and authorized share buybacks Stabilized QB and Share Buyback Program +32-49% QB Ramp Up +48% 2023 2024 2026E Long-Term (Est) Copper Production (kt Cu) 296 446 550-620 800+ Shares Outstanding1 (M Shares) 517 510 ~475
Slide 15: Responsible Growth and Value Creation
Driven by our purpose and values, we will grow to RESPONSIBLE become one of the world’s leading providers of responsibly-produced critical minerals. GROWTH AND VALUE CREATION Balancing growth with cash returns to shareholders Our strategy is focused around four pillars: METALS FOR THE VALUE-DRIVEN C
Slide 16: Appendix
APPENDIX 16
Slide 17: Advancing Well-Funded Near-Term Projects to Sanction
ADVANCING WELL-FUNDED NEAR-TERM PROJECTS TO SANCTION Potential sanction decisions in 2025 Highland Valley Zafranal San Nicolás QB Optimization Mine Life Extension and Debottlenecking (Cu-Mo | Brownfield | British Columbia | 100%) (Cu-Au | Greenfield | Arequipa | 80%) (Cu-Zn Ag-Au | Greenfield | Zaca
Slide 18: Near-Term Growth Projects Have a Smaller Scope
NEAR-TERM GROWTH PROJECTS HAVE A SMALLER SCOPE Reduced scope and complexity, leading to lower capital intensity Mine Area Linear Works Workforce / Port Area QB2 – Large Scope Annual Mining Rate Water Supply Pipeline Construction Workforce 120 Mtpa 165 km ~15,000 (peak per shift) 5 Mine TMF Launder /
Slide 19: Well-Funded Near-Term Projects
WELL-FUNDED NEAR-TERM PROJECTS De-risked through financial and operational partnerships Value-Accretive Near-Term Copper Projects Total Estimated Attributable Estimated Post-Sanction Capital Teck Ownership Post-Sanction Capital Highland Valley Mine Life Extension (Cu-Mo | Brownfield | Canada | 100%)
Slide 20: Short-Term Copper Market Fundamentals
SHORT-TERM COPPER MARKET FUNDAMENTALS Concentrate tightness putting financial pressure on smelters • Mine production stable in 2024 with below average Chinese Smelter Capacity Growth Causing Concentrate disruptions Tightness1 (kt) Cu Growth from Concs Cu Growth from Scrap Smelter Capacity Growth • C
Slide 21: Long-Term Copper Market Fundamentals
LONG-TERM COPPER MARKET FUNDAMENTALS Supply remains constrained; energy still drives global growth • Market heavily reliant on new mine production to Traditional Copper Growth vs Energy Transition fill concentrate gap; minimal response so far Growth1 (kt) 40,000 despite record high prices 114% Elect
Slide 22: Short-Term Zinc Market Fundamentals
SHORT-TERM ZINC MARKET FUNDAMENTALS Mine closures pushed market into concentrate tightness • Low zinc prices forced mine closures in 2023, Drivers of Concentrate Deficit1 (kt) continue to impact market 2025 mine forecast below 2024 guidance 13,500 738 13,412 • Concentrate tightness most severe on re
Slide 23: Long-Term Zinc Market Fundamentals
LONG-TERM ZINC MARKET FUNDAMENTALS Weak prices and underinvestment are expected to drive longer-term shortages • Lack of investment in new mines expected to slow Long-Term Total Zinc Demand1 (Mt) mine growth post-2026 Zone of Balance Zinc Balance Zinc Supply Zinc Demand • Global mine production flat
Slide 24: Copper Guidance
COPPER GUIDANCE Expect higher copper production and lower net cash unit costs and capex in 2025 Copper Production1,2 (kt) Net Cash Unit Costs*,1,3 (US$/lb) Quebrada Blanca Highland Valley Antamina (22.5%) Carmen de Andacollo 550-620 530-600 2.20 490-565 45-55 1.87 45-55 455-525 1.65-1.95 446.0 45-55
Slide 25: Zinc Guidance
ZINC GUIDANCE Reflects declining grades at Red Dog – advancing studies for mine life extension Zinc Production1,2 (kt) Net Cash Unit Costs*,1,3 (US$/lb) Red Dog Sales1 (kt) Red Dog Antamina (22.5%) 184 615.9 0.55 525-575 0.45-0.55 60.3 465-525 95-105 400-445 75-90 55-65 335-375 0.30 35-45 45-55 555.
Slide 26: Endnotes
ENDNOTES SLIDE 5: FOUNDATION OF WORLD-CLASS OPERATIONS SLIDE 24: COPPER GUIDANCE 1. Based on consensus numbers for 2025. 1. As at February 19, 2025. See Teck’s Q4 2024 press release for further details. SLIDE 7: TECK’S COMMERCIAL STRATEGY ENABLES RESILIENCE 2. We include 100% of production from our
Slide 27: Non-GAAP Financial Measures and Ratios
NON-GAAP FINANCIAL Our financial results are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International MEASURES Accounting Standards Board. This presentation includes reference to certain non-GAAP financial measures and non-GAAP ratios, which are n
Slide 28: Copper EBITDA Margin Reconciliation
COPPER EBITDA MARGIN RECONCILIATION Reconciliation between copper segmented profit, revenues and EBITDA margin C$M, copper segment 2023 2024 Profit (Loss) Before Taxes from Continuing Operations 524 303 Net finance expense 56 664 Depreciation and amortization 553 1,356 EBITDA 1,133 2,323 EBITDA 1,13
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