Teck Resources Limited Class A · TSX:TECK.A
Teck Resources Limited Class A — Corporate Update (September 2019)
29 slides from Teck Resources Limited Class A's corporate update, Sep 4, 2019
Slide 1: Copper Business Overview
Copper Business Overview September 4, 2019 Dale Andres, Senior Vice President, Base Metals Alex Christopher, Senior Vice President Exploration, Projects and Technical Services Michael Schwartz, Director, Market Research Shehzad Bharmal, Vice President North America Operations, Base Metals
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: Agenda
Agenda Copper Business Unit QB2 Update Copper Market Highland Valley Copper Overview Q&A 3
Slide 4: Continuing the Transformation in Base Metals
Continuing the Transformation in Base Metals MILESTONES FUTURE SOLID ACHIEVED VALUE FOUNDATION CATALYSTS Delivering Results RACE21TM Performance Focused 2019 Guidance • Significant EBITDA • Safe production improvements expected • Copper production on • Capital spend, with lower track for 290,000 to
Slide 5: Long Life and Stable Assets in Copper
Long Life and Stable Assets in Copper Antamina Highland Valley Carmen de Andacollo Quebrada Blanca • H1 copper production of • Higher recoveries driving • June thickener failure • Copper production on track 50,000 tonnes, guidance increased copper impacted Q2 2019 copper with leaching operations mai
Slide 6: Integrated Zinc Business
Integrated Zinc Business Red Dog Trail Pend Oreille • Strong Q2 2019 production offset • Zinc production impacted by recent • Care and maintenance started in difficult Q1 winter weather conditions electrical equipment failure in refinery August • Higher lead guidance, lower unit costs • Acid Plant #
Slide 7: Innovation and Technology
Innovation and Technology Driving increased margins across the portfolio Innovation-Driven Efficiency Program • Transforming the business through technology with RACE21TM • Leveraging “Ideas at Work” across all sites • Driving to top tier labour efficiencies at QB2 - Autonomous Haulage System (AHS)
Slide 8: Major Growth and Life Extension Projects
Major Growth and Life Extension Projects Setting up for long-term success Quebrada Blanca • QB2: 316 kt of CuEq production for first 5 years1 - Doubles copper production with low strip ratio and AISC of US$1.38/lb copper2 • QB3: Scoping Study on expansion potential in progress - Mineral resource sup
Slide 9: Continuing the Transformation in Base Metals
Continuing the Transformation in Base Metals Cost and Growth Through Productivity Active Capital Innovation and QB2 / QB3 Safe Production Focus Management Technology Execution Delivering Results and Building Value 9
Slide 10: Agenda
Agenda Copper Business Unit QB2 Update Copper Market Highland Valley Copper Overview Q&A 10
Slide 11: QB2 Project Update
QB2 Project Update Executing on a world class development asset Highlights Location Vast, long life deposit in favourable jurisdiction Chile Peru Significant brownfield development Bolivia Arica y Arica Parinacota Region Will be a top 20 producer Cerro Tarapacá Colorado Collahuasi Region Ver
Slide 12: QB2 Project Update – June 30, 2019
QB2 Project Update – June 30, 20191 Engineering1 Costs1,2,3 US$330M Expenditures ~92% ~60% Total capital committed Procurement1 Progress1 ~88% 14.4% Overall Contracting1 Workforce1,4 ~96% ~3,100 Concentrator - Grinding Area, August 2019 12
Slide 13: QB2 Project Execution Snapshot
QB2 Project Execution Snapshot Critical path area is Earthworks activities progressing on track advancing in all areas Commencing piling Procurement and work at port fabrication well advanced 13
Slide 14: Long-term growth potential in QB3
Long-term growth potential in QB3 Drilling and study work ongoing to explore options to realize full value of the asset 14
Slide 15: Agenda
Agenda Copper Business Unit QB2 Update Copper Market Highland Valley Copper Overview Q&A 15
Slide 16: Smelter Production To Remain Constrained
Smelter Production To Remain Constrained Global Concentrate Production1 (kt) Global Primary Smelter Capacity1 (kt) 24,000 24,000 22,000 22,000 20,000 20,000 18,000 18,000 16,000 16,000 14,000 14,000 12,000 12,000 10,000 10,000 2015 2017 2019 2021 2023 2025 2027 2029 2015 2017 2019 2021 2023 2025 202
Slide 17: China Switching to Copper Concentrates
China Switching to Copper Concentrates Net Copper Imports and Percentage of Concentrates1 Copper content (kt) 1,000 900 800 700 600 500 58% 400 49% 300 200 22% 100 18% 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Cathode Concs Scrap Blister/Semis Plotted to July
Slide 18: Copper Treatment Charges Under Pressure
Copper Treatment Charges Under Pressure Disruptions Increasing2; TC/RCs Spot and BM Falling1 (US$/lb) Smelters to be Impacted (kt) $120 Q2 2005 2007 2009 2011 2013 2015 2017 2019 $110 0 $100 $90 -200 $80 $70 -400 $60 -600 3.0% 2.8% $50 $40 -800 4.5% 3.4% $30 YTD $20 -1,000 Annual/Mid Year Spot -1,20
Slide 19: Copper Supply
Copper Supply Mine production rising further but increases constrained Sanctioned Projects Since 20171 Projects Pipeline Comparison2,3 (Copper content, kt) (Copper content, kt) New mines commissioned will 5,000 3,000 add 2.5 Mt from 2017-2025 4,000 2,500 3,000 2,000 2,000 1,000 0 1,500 Year 1 Year 2
Slide 20: Global Mega Trends Impact Copper
Global Mega Trends Impact Copper 2023 More EVs Will Be Built Than Standard ICE; Demographic Changes 2027 More EVs Will Be Built Than Total ICE1 • Urbanization 100 Transformational Technology 75 • Mobile Internet 50 25 • Automation of Knowledge 0 2015 2018 2021 2024 2027 2030 • Internet of Things (Sm
Slide 21: Refined Copper Balance Moves To Deficit Despite Lower Growth Rates
Refined Copper Balance Moves To Deficit Despite Lower Growth Rates Teck average global growth rate to 2025 is 1.6%, and 1.3% for China1 (kt) 1,000 500 0 -500 -1,000 -1,500 -2,000 -2,500 2019 2020 2021 2022 2023 2024 2025 Teck Estimate WM Balance Wood MacKenzie is removing all uncommitted projects (m
Slide 22: Agenda
Agenda Copper Business Unit QB2 Update Copper Market Highland Valley Copper Overview Q&A 22
Slide 23: Highly Reliable Asset Set For Production Growth
Highly Reliable Asset Set For Production Growth Focused On • Improving upon best ever safety performance • Delivering on production and cost commitments • Improving cost and production profile through aggressive implementation of new technologies • HVC 2040 23
Slide 24: Innovation and Technology Driving Safety, Production and Cost Improvements
Innovation and Technology Driving Safety, Production and Cost Improvements • Aggressive implementation of innovation and technology - D3 built and ramping up - Autonomous Haulage Systems pilot expansion - Expanding implementation of MineSense - Integrated Process Management - Advanced Analytics 24
Slide 25: Agenda - Thursday, September 5, 2019 At Highland Valley Copper
Agenda - Thursday, September 5, 2019 At Highland Valley Copper TIME TOPIC PRESENTER 9:00am-9:15am Welcome and Introductions; Safety Orientation Geoff Brick, General Manager Administration Building Highland Valley Copper 9:15am-10:00am Highland Valley Overview and Site Initiatives Geoff Brick, Genera
Slide 26: Any questions?
Copper Business Overview Any questions? 26
Slide 27: Appendix
Appendix Teck
Slide 28: Notes
Notes Slide 8: Major Growth and Life Extension Projects 1. Copper equivalent production calculated for the first 5 full years of production assuming US$3.00/lb copper, US$10.00/lb molybdenum and US$18.00/oz silver without adjusting for payability. 2. All-in sustaining costs (AISC) are net cash unit
Slide 29: Copper Business Overview
Copper Business Overview September 4, 2019 Dale Andres, Senior Vice President, Base Metals Alex Christopher, Senior Vice President Exploration, Projects and Technical Services Michael Schwartz, Director, Market Research Shehzad Bharmal, Vice President North America Operations, Base Metals