43 slides from Teck Resources Limited Class A's earnings presentation, Apr 28, 2021
Slide 1: First Quarter 2021 Results
First Quarter 2021 Results April 28, 2021
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements Both these slides and the accompanying oral presentation certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to as forward-looking statements). These statements relate to futur
Slide 3: Delivering on Our Key Priorities
Delivering on Our Key Priorities Operations continue to be resilient despite ongoing challenges associated with COVID-19 • Production in line with plan across businesses • Met Q1 2021 sales guidance • No changes to annual guidance Achieved major milestones for priority projects • Surpassed the halfw
Slide 4: Financial Overview
Financial Overview Q1 2021 Q1 2020 Revenues $ 2.5 billion $ 2.4 billion Gross profit before depreciation and amortization1 $ 1.0 billion $ 776 million Gross profit $ 654 million $ 398 million Adjusted EBITDA1 $ 967 million $ 608 million Profit (loss) attributable to shareholders $ 305 million $ (312
Slide 5: Copper Business Unit
Copper Business Unit Q1 2021 Copper EBITDA1 ($M) • 205% increase EBITDA1 vs. Q1 2020 reflecting $281M increase in Q1 2021 vs. Q1 2020 Non-controllable $328M Controllable ($47M) substantially higher copper prices Cash $247M Non-Cash $81M All Cash • Production similar to a year ago, with higher produc
Slide 6: QB2 Project Update
QB2 Project Update • Overall project progress surpassed the halfway point in April • Pace of construction trending upwards, setting new weekly records over the last month • Project continues to manage through the current COVID-19 wave in Chile, with strict protocols in place and continuously enhance
Slide 7: QB2 Concentrator
QB2 Concentrator Grinding lines
Slide 8: QB2 Port Offshore
QB2 Port Offshore Jetty and jack-up barge
Slide 9: QB2 Tailings Management Facility
QB2 Tailings Management Facility Starter dam
Slide 10: QB2 Water Pipeline
QB2 Water Pipeline Lowering of the water pipeline
Slide 11: Zinc Business Unit
Zinc Business Unit Q1 2021 Zinc EBITDA1 ($M) • Substantially higher zinc prices were more than $5M decrease in Q1 2021 vs. Q1 2020 Non-controllable $60M Controllable ($65M) offset by lower sales volumes, higher unit Cash $53M Non-Cash $7M All Cash 300 operating costs and royalty expense 76 (3) (20)
Slide 12: Steelmaking Coal Business Unit
Steelmaking Coal Business Unit Q1 2021 Steelmaking Coal EBITDA1 ($M) • Sales were 6.2 Mt, in line with guidance ($48M) decrease in Q1 2021 vs. Q1 2020 Non-controllable ($104M) Controllable $56M • Average realized price reflects ~2 Mt sold to Cash ($65M) Non-Cash ($39M) All Cash 500 463 (6) Chinese c
Slide 13: Neptune Port Upgrade Update
Neptune Port Upgrade Update In the commissioning phase • Ramp-up is continuing as planned • Equipment performing according to, or better than, plan • First steelmaking coal unloaded using the new double rail car dumper on April 19, 2021 • 18 vessels have been loaded with the new shiploader to date •
Slide 14: Neptune First Steelmaking Coal
Neptune First Steelmaking Coal Stacking
Slide 15: Neptune West Shiploader
Neptune West Shiploader
Slide 16: Energy Business Unit
Energy Business Unit Q1 2021 Energy EBITDA1 ($M) • Results improved from Q1 2020, due to higher $721M increase in Q1 2021 vs. Q1 2020 Non-controllable $717M Controllable $4M Western Canadian Select prices Cash $73M Non-Cash $644M All Cash • This was partially offset by higher unit operating costs du
Slide 17: Higher Profit and Adjusted Profit
Higher Profit and Adjusted Profit Q1 2021 Q1 2020 Profit (loss) attributable to shareholders $ 305 million $ (312) million Add (deduct): Asset impairments - 474 million COVID-19 costs - 22 million Environmental costs (33) million (87) million Inventory write-downs (reversals) (6) million 27 million
Slide 18: Cash Flow
Cash Flow Cash Changes in Q1 2021 ($M) 1200 585 (869) 1000 800 577 (44) (33) 600 450 (113) 6 (27) (3) 7 369 400 (134) 200 (44) 11 0 -200 Cash - start Cash flow from PP&E Capitalized Expenditures on Proceeds from Proceeds from Revolving credit Repayment of Interest and Issuance of Dividends paid Cont
Slide 19: Strong Financial Position
Strong Financial Position Balance Sheet No significant note maturities prior to 20302 (C$M) • Rated investment grade by all four agencies 1,000 Liquidity 500 • C$6.3 billion of liquidity available1 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
Slide 20: Poised for Growth
Poised for Growth Right Right Right Right Opportunities Assets Approach Team Strong demand for Industry leading Highest standards Our people deliver our metals and copper growth, of sustainability in the optimal mix of minerals, led by strengthening everything we do, industry leading growth and exis
Slide 21: Appendix
Appendix Teck
Slide 22: Other Operating Income (Expense)
Other Operating Income (Expense) Simplified Settlement Pricing Adjustment Model Simplified Compensation Expense Model (Pre-tax settlement pricing adjustment in C$M) (Pre-tax share based compensation income / expense in C$M) 100 60 20 -20 Q1 2021 -60 -100 -140 -180 -$1.20 -$0.80 -$0.40 $0.00 $0.40 $0
Slide 23: Endnotes
Endnotes Slide 4: Financial Overview 1. Gross profit before depreciation and amortization, adjusted EBITDA, adjusted profit attributable to shareholders, adjusted basic earnings per share and adjusted diluted earnings per share are non-GAAP financial measures. See “Non-GAAP Financial Measures” slide
Slide 24: Endnotes
Endnotes Slide 19: Strong Financial Position 1. As at April 27, 2021. 2. As at March 31, 2021. 3. As at April 27, 2021. The sensitivity of our EBITDA to changes in the Canadian/U.S. dollar exchange rate and commodity prices, before pricing adjustments, based on our current balance sheet, our 2021 mi
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 26: Non-GAAP Financial Measures
Non-GAAP Financial Measures Our financial results are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. This document refers to a number of Non-GAAP Financial Measures which are not measures recognized under IFRS
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures Cash margins for by-products – Cash margins for by-products is revenue from by- and co-products, less any associated cost of sales of the by and co-product. In addition, for our copper operations, by-product cost of sales also includes cost recoveries associated with our
Slide 28: Reconciliation of Profit and Adjusted Profit
Non-GAAP Financial Measures Reconciliation of Profit (Loss) and Adjusted Profit Three months ended Three months ended (C$ in millions) March 31, 2021 March 31, 2020 Profit (loss) attributable to shareholders $ 305 $ (312) Add (deduct) on an after-tax basis: Asset impairments - 474 COVID-19 costs - 2
Slide 29: Reconciliation of Basic EPS to Adjusted Basic EPS
Non-GAAP Financial Measures Reconciliation of Basic Earnings (Loss) Per Share to Adjusted Basic Earnings (Loss) Per Share Three months ended Three months ended (Per share amounts) March 31, 2021 March 31, 2020 Basic earnings (loss) per share $ 0.57 $ (0.57) Add (deduct): Asset impairments - 0.87 COV
Slide 30: Reconciliation of Diluted EPS to Adjusted Diluted EPS
Non-GAAP Financial Measures Reconciliation of Diluted Earnings (Loss) Per Share to Adjusted Diluted Earnings Per Share Three months ended Three months ended (Per share amounts) March 31, 2021 March 31, 2020 Diluted earnings (loss) per share $ 0.57 $ (0.57) Add (deduct): Asset impairments - 0.87 COVI
Slide 31: 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, 2020 March 31, 2020 March 31, 2021 March 31, 2021 Profit (loss) $ (944) $ (311) $ 292 $ (341
Slide 32: 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, 2020 March 31, 2020 March 31, 2021 March 31, 2021 Total debt at period end (F) $
Slide 33: Reconciliation of EBITDA and Adjusted EBITDA
Non-GAAP Financial Measures Reconciliation of EBITDA and Adjusted EBITDA Three months ended Three months ended (C$ in millions) March 31, 2021 March 31, 2020 Profit (loss) $ 292 $ (311) Finance expense net of finance income 51 47 Provision for (recovery of) income taxes 209 (69) Depreciation and amo
Slide 34: Gross Profit Before Depreciation and Amortization
Non-GAAP Financial Measures Reconciliation of Gross Profit Before Depreciation and Amortization Three months ended Three months ended (C$ in millions) March 31, 2021 March 31, 2020 Gross profit $ 654 $ 398 Depreciation and amortization 378 378 Gross profit before depreciation and amortization $ 1,03
Slide 35: Gross Profit Margins Before Depreciation
Non-GAAP Financial Measures Reconciliation of Gross Profit (Loss) Margins Before Depreciation Three months ended Three months ended (C$ in millions) March 31, 2021 March 31, 2020 Revenues Copper (A) $ 767 $ 570 Zinc (B) 570 608 Steelmaking coal (C) 1,047 1,023 Energy (D) 163 176 Total $ 2,547 $ 2,37
Slide 36: Copper Unit Cost Reconciliation
Non-GAAP Financial Measures Copper Unit Cost Reconciliation Three months ended Three months ended (C$ in millions, except where noted) March 31, 2021 March 31, 2020 Revenue as reported $ 767 $ 570 By-product revenue (A) (85) (77) Smelter processing charges (B) 30 37 Adjusted revenue $ 712 $ 530 Cost
Slide 37: Zinc Unit Cost Reconciliation (Mining Operations)
Non-GAAP Financial Measures Zinc Unit Cost Reconciliation (Mining Operations) Three months ended Three months ended (C$ in millions, except where noted) March 31, 2021 March 31, 2020 Revenue as reported $ 570 $ 608 Less: Trail Operations revenues as reported (461) (452) Other revenues as reported (2
Slide 38: Zinc Unit Cost Reconciliation - Continued
Non-GAAP Financial Measures Zinc Unit Cost Reconciliation (Mining Operations) - Continued Three months ended Three months ended (C$ in millions, except where noted) March 31, 2021 March 31, 2020 Payable pounds sold (millions) (E) 195.3 251.3 Per unit amounts (C$/lb) Adjusted cash cost of sales (D/E)
Slide 39: Steelmaking Coal Unit Cost Reconciliation
Non-GAAP Financial Measures Steelmaking Coal Unit Cost Reconciliation Three months ended Three months ended (C$ in millions, except where noted) March 31, 2021 March 31, 2020 Cost of sales as reported $ 851 $ 777 Less: Transportation costs (256) (242) Depreciation and amortization (216) (175) Invent
Slide 40: Energy Operating Netback Reconciliations
Non-GAAP Financial Measures Energy Operating Netback, Bitumen & Blended Bitumen Price Realized Reconciliations Three months ended Three months ended (C$ in millions, except where noted) March 31, 2021 March 31, 2020 Revenue as reported $ 163 $ 176 Less: Cost of diluent for blending (54) (97) Non-pro
Slide 41: 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 (C$ in millions, except where noted) March 31, 2021 March 31, 2020 Per barrel amounts (C$) Bitumen price realized1 (A/B) $ 49.59 $ 23.12 Cr
Slide 42: Reconciliation of Free Cash Flow
Non-GAAP Financial Measures Reconciliation of Free Cash Flow (C$ in millions) 2003 to Q1 2021 Cash Flow from Operations $48,735 Debt interest paid (5,933) Capital expenditures, including capitalized stripping costs (29,605) Payments to non-controlling interests (NCI) (652) Free Cash Flow $12,545 Div
Slide 43: First Quarter 2021 Results
First Quarter 2021 Results April 28, 2021