Teck Resources Limited Class A · TSX:TECK.A
Teck Resources Limited Class A — Global Metals and Mining Conference 2024
28 slides from Teck Resources Limited Class A's conference presentation, Feb 26, 2024
Slide 1: Investor Presentation
Investor Presentation February 26, 2024 Global Metals and Mining Conference Restricted - External 142
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: Value Creation Strategy
Value Creation Strategy Capitalizing on strong demand in the transition to a low-carbon economy Maximize long-term sustainable shareholder value Focus on Unlock the value of Balance growth Sustainability excellence in industry leading and cash returns leadership operations and copper growth to share
Slide 4: Industry-Leading Base Metals Producer
Industry-Leading Base Metals Producer Our Purpose Copper Zinc 1 To provide essential Top 10 copper producer Largest net zinc miner resources the world in the Americas globally is counting on to make 2 life better while caring Copper for the people, 1 Highland Valley Copper 2 Antamina communities, an
Slide 5: Full Sale of the Steelmaking Coal Business
Full Sale of the Steelmaking Coal Business • Announced the sale of steelmaking coal assets (EVR) with a majority stake to Glencore, and minority stakes to Nippon Steel Corporation (NSC) and POSCO • NSC and POSCO transactions closed on January 3, 2024 − NSC acquired 20% interest in EVR in exchange fo
Slide 6: Our Priorities
Our Priorities Complete sale of steelmaking coal – minority stake sale to Nippon Steel complete, regulatory approvals underway on majority sale to Glencore Drive safe operational performance across the portfolio, ensuring we deliver on our market commitments Consistent performance of QB at design ca
Slide 7: QB Production Ramp-Up On Track
QB Production Ramp-Up On Track Operational and Project Update Outlook and Guidance • Ramp up continues in 2024, with planned maintenance shut-downs • Unchanged capital cost guidance of US$8.6–$8.8B; no capitalized through Q1 ramp-up costs expected in 2024 • Molybdenum plant construction was substant
Slide 8: Meaningful Capital Spending Decrease Expected in 2024
Meaningful Capital Spending Decrease Expected in 2024 Capital Investments Profile1 ($M) 5.4 Reduction of ~$1.2 billion2 in 2024 5.1 3.0 • QB2 development capital significantly lower 4.7 2.1 as project nears completion 2.6 ~$3.6-4.4 • Sustaining capital increases marginally 3.6 ‒ Completing KIVCET bo
Slide 9: Disciplined Approach to Copper Growth
Disciplined Approach to Copper Growth Adapting our approach to project development • Undertaking a comprehensive review of the QB2 project delivery, utilizing third party expertise • Building capability and capacity through investment in our people and processes • Next project sanctioning expected i
Slide 10: Near-Term Development Options
Near-Term Development Options A balanced portfolio of greenfield and brownfield projects in well understood jurisdictions Highland Valley Mine Life Extension (Cu-Mo | Brownfield | British Columbia) Extending life of mine of Canada’s largest base metals mine Mine life extension of a highly productive
Slide 11: Disciplined Capital Allocation Framework
Disciplined Capital Allocation Framework Commitment to return 30-100% of available cash flow to shareholders* Balancing growth with cash returns to shareholders while maintaining a strong balance sheet Sustaining Base Supplemental Cash Flow Capital Dividend Shareholder Distributions including stripp
Slide 12: Strong Balance Sheet and Shareholder Returns
Strong Balance Sheet and Shareholder Returns Strong balance sheet Balancing growth with shareholder returns Liquidity1 Cash position1 Dividends $7.9B $2.5B • Paid $515 million in 2023 • Board approved quarterly base dividend of $0.125 per share payable on March 28th Share Buybacks • $250 million com
Slide 13: Considerations for Use of Transaction Proceeds
Considerations for Use of Transaction Proceeds Ensures Teck is well-positioned to unlock the full potential of our base metals business Maintain investment grade credit metrics through the cycle – targeting net debt to EBITDA* of 1.0x net debtopportunities Assess to EBITDA* ofto 1.0x reduce gross de
Slide 14: Commitment to Sustainability Leadership
Commitment to Sustainability Leadership Key Sustainability Achievements Key Goals and Recent Progress • Industry-leading sustainability assurance, with all Teck-operated base Climate Change metal operations awarded the Copper Mark or Zinc Mark Net zero Scope 1 & 2 emissions by 2050 - Highland Valley
Slide 15: Value Creation Strategy
Value Creation Strategy Capitalizing on strong demand in the transition to a low-carbon economy Focus on Unlock the value of excellence in industry leading operations and copper growth projects Long-term sustainable Balance growth Sustainability shareholder and cash returns to shareholders leadershi
Slide 16: Appendix
Appendix Global Metals and Mining Conference
Slide 17: Strong Performance Across Our Business
Strong Performance Across Our Business Returning cash to shareholders, advancing QB ramp-up & record quarterly copper production Q4 2023 Significant shareholder returns and strengthening of the balance sheet Gross profit Adjusted Adjusted diluted Dividends before D&A* EBITDA* EPS* • Paid $515 millio
Slide 18: Unrivalled Copper Growth Opportunities
Unrivalled Copper Growth Opportunities Multiple pathways to value creation Potential Annual CuEq Production Growth1 (kt; reporting basis; first 5 years average annual production by asset) Current Operating Assets Near-Term Development Options Investing Today For Longer-Term Growth Suite of options d
Slide 19: Copper Guidance
Copper Guidance Guidance includes Quebrada Blanca Production1,2 (kt) Net Cash Unit Costs*,1,3 (US$/lb) Copper in Concentrate 550-620 550-620 530-600 1.85-2.25 465-540 50-60 50-60 45-55 1.87 38-45 80-90 90-100 85-95 1.56 85-95 297 140-160 130-150 120-140 Carmen de Andacollo 112-125 40 Antamina (22.5%
Slide 20: Zinc Guidance
Zinc Guidance Production1,2 (kt) Red Dog Zinc in Concentrate Sales1 (kt) Net Cash Unit Costs*,1,3 (US$/lb) Zinc in Concentrate 644 565-630 555-615 104 Antamina (22.5%) 45-60 0.55-0.65 95-105 465-525 135 0.55 55-65 400-445 35-45 0.44 89 70-85 Red Dog 540 520-570 460-510 410-460 365-400 2023 2024E 202
Slide 21: Steelmaking Coal Guidance
Steelmaking Coal Guidance Sales and Production1 (Mt) Capital Expenditures1 ($M) Sales Production 1,452 ~1,350-1,750 1,167 15 10.0 24.0-26.0 24.0-26.0 24.0-26.0 24.0-26.0 550 9.0 23.7 30 -750 6.1 5.9-6.3 649 8.0 7.0 6.0 5.0 4.3 Growth 617 800 4.0 Capitalized Stripping -1,000 3.0 778 2.0 520 1.0 Susta
Slide 22: Cost of Sales 2023
Cost of Sales 2023 Copper Steelmaking Coal Cost of Sales (C$) Operating Costs Cost of Sales (C$) Operating Costs D&A Labour 25% Labour 26% 20% Contractors & Consultants 17% Contractors & Consultants 17% D&A Operating Royalties Operating Supplies & Parts 15% 24% Costs Operating Supplies & Parts 14% 1
Slide 23: Sensitivities
Sensitivities Estimated Effect of Changes on our Annualized Profitability1 ($M) Estimated Effect on Profit Attributable Estimated Effect 2024 Mid-Range to Shareholders3 on EBITDA*, 3 Production Estimates2 Changes ($ in millions) ($ in millions) US$ exchange C$0.01 $ 63 $ 110 Copper (kt) 502.5 US$0.0
Slide 24: Endnotes
Endnotes Slide 8: Meaningful Capital Spending Decrease Expected in 2024 Slide 19: Copper Guidance 1. As at February 21, 2024. See Teck’s Q4 2023 press release for further details. 1. As at February 21, 2024. See Teck’s Q4 2023 press release for further details. 2. Based on the mid-point of guidance.
Slide 25: Endnotes
Endnotes Slide 23: Sensitivities 1. As at February 21, 2024. The sensitivity of our annualized profit(loss) attributable to shareholders and EBITDA to changes in the Canadian/U.S. dollar exchange rate and commodity prices, before pricing adjustments, based on our current balance sheet, our 2024 mid-
Slide 26: Non-GAAP Ratios
Non-GAAP Financial Measures and Ratios Global Metals and Mining Conference
Slide 27: Non-GAAP Ratios
Non-GAAP Financial Measures and Ratios Our financial results are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. This presentation includes reference to certain non-GAAP financial measures and non-GAAP ratios,
Slide 28: For further information, please contact our investor relations team
For further information, please contact our investor relations team or visit Teck.com investors@teck.com 1.877.759.6226 or 604.699.4257 Global Metals and Mining Conference
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