Teck Resources : (BMO 2025 Conference Presentation)

Published: 2025-02-24 00:34:04 ET TECK

GLOBAL METALS, MINING & CRITICAL MINERALS

CONFERENCE

February 24, 2025

Jonathan Price

President and Chief Executive Officer

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 to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "should", "believe" and similar expressions is intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These statements speak only as of the date of this presentation.

These forward-looking statements include, but are not limited to, statements concerning: our strategy and priorities, including being a pre play energy transition metals company ; the potential for Quebrada Blanca to be a top 5 copper mine globally; anticipated global and regional supply, demand and market outlook for our commodities; 2025 priorities, including our expectation that Quebrada Blanca will ramp up to steady state in 2025, including the molybdenum plant, that we will grow copper production, reduce unit costs and improve margines, that we will execute authorized share buy backs, that we will progress our copper growth projects to potential 2025 sanction ad that we will enable resilience through our commercial strategy and strong balance sheet; all expectations regarding Quebrada Blancae, including expectations of increased production, higher grades and lower net cash unit costs in 2025; expectations regarding increased copper production and lower copper net cash unit costs in 2025; statements regarding Teck's capital allocation framework, including statements regarding potential returns to shareholders, potential cash flows and allocation of funds; our expectations with respect to future and ongoing project development and mine life extension, including expectations regarding the timing and occurrence of any sanction decisions and prioritization of growth capital, expectations related to the submission and receipt of regulatory approvals and the timing for completion of engineering studies and expectations relating to production levels, capital and operating costs and mine life; all guidance included in this presentation, including production guidance, net cash unit cost guidance, sustaining capital, capitalized stripping, capital expenditure guidance and sales guidance; and all other statements that are not historic facts.

Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this presentation. Such statements are based on a number of assumptions that may prove to be incorrect, including, but not limited to, assumptions regarding: general business and economic conditions; interest rates; commodity and power prices; acts of foreign or domestic governments; the imposition of tariffs, import or export restrictions, or other trade barriers by foreign or domestic governments; the outcome of legal proceedings, the supply and demand for, and the level and volatility of prices of, copper, zinc and our other metals and minerals as well as inputs required for our operations; the timing of receipt of permits and other regulatory and governmental approvals for our development projects and operations, including mine extensions; positive results from the studies on our expansion and development projects; our ability to secure adequate transportation, including rail and port services, for our products; our costs of production, and our production and productivity levels, as well as those of our competitors; availability of water and power resources for our projects and operations; credit market conditions and conditions in financial markets generally; availability of letters of credit and other forms of financial assurance acceptable to regulators for reclamation and other bonding requirements; our ability to procure equipment and operating supplies and services in sufficient quantities on a timely basis; the availability of qualified employees and contractors for our operations, including our new developments and our ability to attract and retain skilled employees; the satisfactory negotiation of collective agreements with unionized employees; the impact of changes in Canadian-U.S. dollar exchange rates, Canadian dollar-Chilean Peso exchange rates and other foreign exchange rates on our costs and results; engineering and construction timetables and capital costs for our expansion and development projects; closure costs; environmental compliance costs; market competition; the accuracy of our mineral reserve and resource estimates (including with respect to size, grade and recoverability) and the geological, operational and price assumptions on which these are based; tax benefits and tax rates; the outcome of our copper, zinc and lead concentrate treatment and refining charge negotiations with customers, our ability to obtain, comply with and renew permits and other authorizations in a timely manner; our ongoing relations with our employees and with our business and joint venture partners; the impact of climate change and climate change initiatives on markets and operations; and the impact of geopolitical events on mining operations and global markets. Statements concerning future production costs or volumes are based on numerous assumptions of management regarding operating matters and on assumptions that demand for products develops as anticipated; that customers and other counterparties perform their contractual obligations; that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts and supplies, labour disturbances, interruption in transportation or utilities, or adverse weather conditions; and that there are no material unanticipated variations in the cost of energy or supplies. Assumptions regarding the costs and benefits of our projects include assumptions that the relevant project is constructed, commissioned and operated in accordance with current expectations. Expectations regarding our operations are based on numerous assumptions regarding their operation. Our Guidance tables include disclosure and footnotes with further assumptions relating to our guidance

Inherent in forward-looking statements are risks and uncertainties beyond our ability to predict or control, including, without limitation: risks that are generally encountered in the permitting and development of mineral properties such as unusual or unexpected geological formations; associated with unanticipated metallurgical difficulties; relating to delays associated with permit appeals or other regulatory processes, ground control problems, adverse weather conditions or process upsets and equipment malfunctions; risks associated with any damage to our reputation; risks associated with volatility in financial and commodities markets and global uncertainty; risks associated with labour disturbances and availability of skilled labour; risks associated with fluctuations in the market prices of our principal commodities or of our principal inputs; risks associated with the imposition of tariffs, import or export restrictions, or other trade barriers by foreign or domestic governments; associated with changes to the tax and royalty regimes in which we operate; risks posed by fluctuations in exchange rates and interest rates, as well as general economic conditions and inflation; risks associated with climate change, environmental compliance, changes in environmental legislation and regulation, and changes to our reclamation obligations; risks created through competition for mining properties; risks associated with lack of access to capital or to markets; risks associated with mineral reserve and resource estimates; risks associated with changes to our credit ratings; risks associated with our material financing arrangements and our covenants thereunder; risks associated with procurement of goods and services for our business, projects and operations; risks associated with non-performance by contractual counterparties; risks associated with potential disputes with partners and co-owners; risks associated with operations in foreign countries; risks associated with information technology; risks associated with tax reassessments and legal proceedings; and other risk factors detailed in our Annual Information Form. Certain of our operations and projects are operated through joint arrangements where we may not have control over all decisions, which may cause outcomes to differ from current expectations.

Teck cautions that the foregoing list of important factors and assumptions is not exhaustive. Other events or circumstances could cause our actual results to differ materially from those estimated or projected and expressed in, or implied by, our forward-looking statements. See also the risks and assumptions discussed under "Risk Factors" in our most recent Annual Information Form and in subsequent filings, which can be found under our profile on SEDAR+ (www.sedarplus.ca) and on EDGAR (www.sec.gov) under cover of Form 40-F, as well as subsequent filings that can also be found under our profile. The forward-looking statements contained in these slides and accompanying presentation describe Teck's expectations at the date hereof and are subject to change after such date. Except as required by law, we undertake no obligation to update publicly or otherwise revise any forward-looking statements or the foregoing list of assumptions, risks or other factors, whether as a result of new information, future events or otherwise. Scientific and technical information in this presentation was reviewed and approved by Rodrigo Marinho, P.Geo, a consultant of Teck and a Qualified Person under National Instrument 43-101.

RESPONSIBLE

GROWTH AND

VALUE CREATION

Balancing growth with cash returns to shareholders

Our strategy is focused around four pillars:

Driven by our purpose and values, we will grow to become one of the world's leading providers of responsibly-producedcritical minerals.

METALS FOR THE ENERGY TRANSITION

Focusing on the metals essential to meet growing demand driven by the energy transition

CORE EXCELLENCE

Industry-leading capabilities, processes and talent to drive us forward

VALUE-DRIVEN

GROWTH

A rigorous approach to growth focused on value creation

RESILIENCE

Ensuring we stay resilient and able to create value throughout market cycles

EXECUTED STRATEGY IN 2024

Delivering value to shareholders

Transformation to pure-play energy transition metals company - leading to valuation

Completed QB construction & achieved design throughput - leading to record copper

Industry-leading balance sheet strength with a net cash position

Delivered $1.8 billion in cash returns to shareholders

Advanced the pathway to well-funded, value accretive near-term growth

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% ownership)

(100% ownership)

Potential to be a top 5

Largest copper

High quality, proven

Low strip, reliable

Large and high-grade

One of the largest

copper mine globally

mine in Canada

copper-zinc producer

copper producer

zinc mine

integrated zinc smelting

and refining complexes

Tier 1

Top 10 copper producer

70% of EBITDA1

Largest net zinc miner

operating in the Americas

from Tier 1 assets

globally

* EBITDA is a non-GAAP financial measure. See "Non-GAAP Financial Measures and Ratios" slide.

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 to meet growing power demand, including from renewable energy sources

Growth in the Digital Economy

Development of AI, and digital infrastructure including datacenters

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

Americas (ex-US)

20%

34%

Asia

28%China

18%

Regionally balanced sales book

Limited tariff exposure

Concentrate scarcity and robust global demand

Strong commercial strategy and logistics capabilities

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

Progress value-accretive copper growth projects to potential 2025 sanction

Enable resilience through agile commercial strategy and strong balance sheet

1 RECORD QB PRODUCTION IN Q4 2024 - RAMP-UP ON TRACK

Record daily production throughout Q4 2024

Achieved design throughput

Recovery rate improving

2025 Growth

Design: 143ktpd

139

131

125

120

108

Q4 23 Q1 24 Q2 24 Q3 24 Q4 24

Nov-

Dec

Design: 86-92%

83 84 85

Q4 23 Q1 24 Q2 24 Q3 24 Q4 24

Nov-

Dec

* Net cash unit cost per pound is a non-GAAP ratio. See "Non-GAAP Financial Measures and Ratios" slide.

2 GROWING COPPER PRODUCTION WITH IMPROVING MARGINS

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%

490-

2023

2024

2025

2.20

Consensus1

446

565

1.87

1.65-

1.95

297

2023

2024

2025E

2023

2024

2025E

Guidance

* Net cash unit cost per pound and segmented EBITDA margin are non-GAAP ratios. See "Non-GAAP Financial Measures and Ratios" slide.

Disclaimer

Teck Resources Limited published this content on February 24, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 24, 2025 at 05:33:03.816.