corrected transcript Resources Ltd. Resources Str and Relations Investor President, Vice Senior Phillips, H. Fraser Participants Other Participants Corporate MANAGEMENT DISCUSSION SECTION MANAGEMENT DISCUSSION PARTICIPANTS appendix. the in measures these regarding reconciliations and explanations find non various use we that out to point like also I would forward a does not Teck vary. to results actual maycause uncertainties and risks Various statements. those underlying assumptions the slidedescribes This business. forward contains presentation This on 2. Slide statements forward regarding caution the your to attention draw to like would I webegin, Before call. conference results 2019 quarter third Teck’s for us you joining for thank and everyone, Good morning, Lana. very much, Thanks ahead. go Please Analysis. Strategic and Relations President Vice Senior Phillips, Fraser to over call conference the to turn like now I would 2019. question listen in are all participants time, At this Call. Earnings 2019 Resources Q3 to Teck by. you Welcome standing thank for gentlemen, and Ladies Operator: A. Levin Mark C.Tumazos John Cabrera Oscar Pipes Lucas N. Tanners Beth Timna Chris Terry Barnes Greg Przybylowski Jackie Orest Wowkodaw Korn Matthew Réal Foley Ltd. Resources Teck Services, Nicholas Alexander Andres E. Dale B.Sheremeta Robin A. Millos Ronald R.Lindsay Donald Ltd. Resources Phillips H. Fraser
www.CallStreet.com • • www.CallStreet.com - looking statement. looking - and
Teck ResourcesLtd. –
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answer session. This conference call is being recorde is call conference This session. answer Senior
– Analyst, Deutsche Bank Securities, Inc. Securities, Bank Deutsche Analyst,
–
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Inc. Securities, TD Analyst, – – –
Analyst, Seaport Global Securities LLC Securities Global Seaport Analyst, LLC & Co. Sachs Goldman Analyst,
Analyst, CIBC World Markets, Inc. Markets, CIBC Analyst, World – Senior Vice President Vice Senior Analyst,
– –
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Chief Financial Officer & Senior VP & Senior Officer Financial Chief
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Vice President Vice Teck Analysis, Strategic and Relations Investor President, Vice Senior Analyst, John Tumazos Very Independent Research LLC Research Independent Very John Tumazos Analyst, Analys
Christopher
– President – –
Senior Vice President Vice Senior Analyst, Bank of America Merrill Lynch Merrill America of Bank Analyst, Analyst, BMO Capital Markets (Canada) Markets Capital BMO Analyst,
B. Riley FBR, Inc. B. FBR, Riley t, Scotiabank
Company▲
and
– -
Marketing
Chief Executive Officer Executive Chief Senior Vice President, Exploration, Projects & Technical & Technical Projects Exploration, President, Vice Senior 212 - Base Metals, Teck Resources Ltd. Resources Teck Metals, Base
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849
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Ticker▲ Coal Operations, Teck Resources Resources Ltd. Teck Operations, Coal and Logistics and - 4070 TECK
- GAAP measures in this presentation. You can You can in presentation. this measures GAAP
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only mode. Later, we will conduct a will conduct we Later, only mode.
- • Finance, Teck Resources Ltd. Resources Teck Finance,
- Copyright © © Copyright looking statements regarding our our regarding looking statements , Teck Resources Ltd Resources , Teck , Teck Resources Ltd. Resources , Teck Q3 2019 Earnings Call Earnings 2019 Q3
ssume the obligation to update any any update to the obligation ssume
d on Thursday, October 24, 24, October Thursday, d on ategic Analysis, Teck Teck Analysis, ategic Event Type▲ 2001
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2019 .
- looking
CallStreet - Investor Investor Oct. 24, 2019 Oct. Date▲
1 corrected transcript Donald R. Lindsay, President, Chief Executive Officer & Director, Teck Resources Ltd. Resources Teck Director, & Officer Executive Chief President, R.Lindsay, Donald on quarter third impact negative a significant had coal steelmaking in particularly and 2019 decli 4, the Slide on results our financial to Turning later. little a detail in further program reduction to our cost will speak Ron And people. our of and safety health aresult in reduc would that initiatives include not do reductions cost target Our 2020. of end the to through spending in million $500 approximately of are targeting reductions 2020. We through costs operating and company a also implemented We’ve future growth. Teck’s of key component a course, is, of which project the QB2 of development and the Terminals at Neptune project priority our of execution also the and our business all across prod and efficiency to improve program RACE21 our on attention our we are focusing result, a as And coal. steelmaking particularly products, our of on prices the effect negative significant p highercommodity of periods during margin capture to production maximizing on focused been we have years, past few Over the units. business Zinc and our Copper both in results operating solid generate to we continue and opera of number a weachieved quarter, third the in And 2024.of to November facility credit billion committed $4 our US of date maturity the we extended Tuesday, indices. wastop the Teck fact, in And, Index. Market Broad Global S&P the in companies largest 2,500 the of 10% the top of one s 10th the Index for Sustainability World Jones the Dow to named be pleased to werealso year. that beyond We improvements additional significant and 2019 byof end the improvements EBITDA annualized in 150 million initial CAD innovation an RACE21, our continueto advance We 2021. of quarter the fourth for is targeted production First project. world this of development the through shareholders for value building considerable the major six across site on working actively people 5,000 over with forward moving is construction QB2 to shareholders. cash excess return and project QB2 on our run of strategy our straightforward execute to we continue our third quarter, from highlights the to Turning our people. of safety the being priority with top our develop, they as events monitor closely to issues no had and safe. We’ve for areaccounted employees Teck ensure on to early steps have taken We impacted. those all of with are our thoughts and people the Chilean for stakehold and our communities employees, our to connection the strong of because also but our business, andonly not for to Teck important is very Chile. Chile in unrest civil recent on the amoment for touch to wanted I quarter, the into weget before But questions. any answer wouldto happy be team management our senior of members additional Iand and where Ron session, with Q&A willa conclude results. financial We quarthird our from highlights with 3 Slide onwill begin I everyone. morning, good you, and Fraser, Thank that, I With
ning our operation safely, efficiently and sustainably to generate cash, successfully execute execute successfully cash, generate to sustainably and efficiently safely, operation our ning www.CallStreet.com • • www.CallStreet.com
Our financial position remains strong with around CAD 6.8 billion in liquidity currently. On On liquidity currently. in billion 6.8 CAD around with strong remains position financial Our - ter and I’ll be followed by Ron Millos, our CFO, who will provide additional color on our on color additional will provide who our CFO, Millos, Ron by be I’ll followed and ter date at any of our sites and work a work ourand sites of any at date
will turn the call over to Don Lindsey, our President and CEO. President and our Lindsey, Don over to call turn the will Teck ResourcesLtd. tion in the production volumes of our commodities or that could adversely affect the affect adversely could orthat our commodities of volumes production thein tion - rices. However, current global economic uncertainties are having a arehaving uncertainties economic global current However, rices. ranked mining company on both the World and the North American American North the and the on both World company mining ranked Company▲ - wide cost reduction wide reduction cost 212 traight year. This indicates that our sustainability practice is practice sustainability our that year. indicates This traight -
849 t the QB2 project is continuing. We will continue to will continue is continuing. We project QB2 t the Ticker▲ - 4070 TECK ne in commodity prices in the second quarter quarter in second the prices commodity in ne - driven effic driven
• program to reduce spending on our capital our capital on to spending reduce program Copyright © © Copyright ers. This is clearly a very difficult time time a very difficult is clearly This ers. Q3 2019 Earnings Call Earnings 2019 Q3 iency program, to generate an generate to iencyprogram, ting records in Steelmaking Coal, Coal, Steelmaking in records ting
construction areas. We are areas. construction We
Event Type▲
2001 - 2019 - class copper class
CallStreet
Oct. 24, 2019 Oct. uctivity uctivity
Date▲
2
corrected transcript volumes sales zinc lower by after costs unit net cash However, by before unitcosts cash Total Vall at Highland recoveries year 10% upwas production Copper 7. Slide on summarized are results Q3 our unit, business our Copper to Turning sooner. longer the we thatget to means it because story news good a is actually cost higher consequently year the and the of beginning at the production lowerthe cost ton 2 by million Elkview at production the increase to our ability accelerates but also it weak, arereasonably prices while coal year, the part of first point b important very this is a Now, I think 2019. in than 2020 in lower be salesto of our cost expect we overall, However, levels. at full production back we are when 2020 of half second the in significantly decrease to and then in higher be significantly salesto of our cost we expect a as result, And and Q4. in Q3 production increasing yearthen and the half of first the in production coal steelmaking our reducing 2020, early in to decided we have coal prices, in steelmaking weakness and margins on steelmakers’ pressure uncertainty, economic current the given However, guidance. annual our with which line is in Q4 in lower salesto be of costs adjusted site expect We b or dumping lost train 40 approximately inwill result Terminals Neptune and Ridley Terminals both at outages Planned we ex forward, Looking operations. other at throughput processing also strong and operations and Greenhills Creek Line at our records production by supported year, last than higher was Production issues. logistical no been there had range our guidance end high the exceeded have sales could Q3 quarter. the in strong remained demand Importantly, made. been has progress significant and issues handling materials the overcoming on focused been have Efforts Terminals. at Neptune outages construction and issues handling to material due in below guidance came sales quarter, third the 6. In on Slide Coal with Steelmaking starting units, business by highlights through now run I will basis. diluted on a per share 12 CAD which totaled for, adjust notwe do that charges additional of a number werealso There quarter. in third the items adjustment significant individually no were there you can see, as And 5. Slide areon adjustments earnings quarter’s the of Details basis. diluted a fully and basic the on both share per 0.72 or CAD million ton 600,000 around of entirely almost ago, yeara with compared million 222 CAD by declined quarter third the in profit gross Our per ton $150 year the to of quarter ton about per $210 from declined prices steelmaking coal Benchmark profitability.
than Cardinal River that will be headed toward shutdown which is a higher cost operation. So, operation. cost is a higher which shutdown toward headed will be that River Cardinal than
www.CallStreet.com • • www.CallStreet.com
due to lower prices and a decrease in sales volumes in our Steelmaking Coal business unit unit business Coal in our Steelmaking volumes sales in a decrease and prices lower to due Teck ResourcesLtd. ne , having been as low as $128 per ton $128 as low as been , having - over $178 in the third quarter and then current spot market prices are just under under arejust prices market spot current then and quarter in third the $178 ne e - pect sales of approximately 6.2 million ton 6.2 approximately salesof pect year, primarily due to higher copper grades and the mill throughput and and throughput mill the and grades copper higher to due year, primarily rthing days in the quarter, and that will of course affect our sa affect course will of that and in quarter, the days rthing s. Bottom line adjusted profit attributed to shareholders was CAD 403 403 CAD was to shareholders attributed profit line adjusted Bottom s.
and zinc prices. zincand ey, which is in line with guidance. with line is in ey,which
- Company▲ product credits were $1.62 in Q3, down from $1.75year a ago. from down in Q3, were$1.62 credits product
- 212 product credits were slightly higher than last year to duethe last than higher wereslightly credits product
- ecause we’re moving the maintenance shutdowns to the to shutdowns maintenance the moving we’re ecause
849 Ticker▲ complete the majority of our major plant outages plant outages our major of majority the complete - 4070 TECK ne ne s, and that 2 million ton 2 million that and s,
• in the third quarter. in third the
million on an after on an million Copyright © © Copyright -
term term Q3 2019 Earnings Call Earnings 2019 Q3 ne higher production, lower higher production,
s to 6.4 million ton 6.4 million to s Q1 2020 than in Q4 2019 2019 in Q4 than 2020 Q1 Event Type▲
2001 -
tax basis or CAD 0.02 0.02 orCAD basis tax ne s will be much lower much will be s -
2019 planned planned ne
in the first first the in les volumes. les
ne
CallStreet s in Q4. Q4. in s - Oct. 24, 2019 Oct. cost cost
Date▲ of of
3
corrected transcript pattern. seasonal ton 160,000 be to zinc sales contained Red Dog’s we expect Q4, site.in And from shipped concentrate all available with early November in complete ton 275,000 to Operations our full lowered we have forward, Looking charges. and refining for treatment terms benchmark 2019 byhigher the offset partially ne Our ton 171,000 were zinc concentrate and of Dog sales Red unit. business our in Copper arereported results financial re units business Zinc Our the project. of all areas across construction to advance contractors major and contractors EPCM the with is working effectively team project the overall, And foundations. des the in progress shows photo the centerof the areain The permits. local we awaiting were as delays some following activities offshore and onshore both weare progressing where site, port seeyou the can 11, Slide onAnd and tanks the thickener for placement are also concrete advancing installation. of We the start for preparation 650 on the concentrator of area the toflotation Moving quarter. area this concentrator the in erection steel structural to start we expect And placement. initial concrete commencing and we are mobilizing where relatedto works you see can in background, the And quarter. in fourth the installation initial wewill commence and in country, arrived have The mills May. since ball mills four and SAG two the for concrete pouring we’ve been where concentrator ar grinding in the we’ve made progress the shows photo This area. concentrator the 9 shows Slide concentrator. the of area in grinding the foundations the mill rebar for capital definitive a and complete 90% well over are all activities procurement and contracting Engineering, to orders purchase and contracts under is committed total budget Septe of the end with ramp 2021 of quarter in fourth the completion placed to meters cubic 20,000 approximately bo wellin very is progressing installation Concrete facility. dam the tailings of construction including all areas in advanced arewell Earthworks mobilized. contractors with all major project the of areas construction major ac people with 5,000 over continues at QB2 Construction quarter. last over the on QB2 our progress of snapshot quick a provide to like I’d 8, Slide to on Moving our full And de Andacollo. Carmen full Valley. Our Highland at recoveries and grades throughput, in improvements continued weexpect forward, Going 14. action October on strike commenced not wedid mediation, even Butafter September. in union commenced workers’ with the process bargaining regulated a Thereafter, de Andacollo. three new a we signed In August,
- cubic meter rougher flotation cells. Mechanical components are arriving at site shortly in shortly at site arearriving components Mechanical cells. rougher flotation meter cubic t cash unit cost in the quarter reflect the benefit of lead and concentrate sales from Red Dog, from sales concentrate leadand of benefit the reflect quarter the in cost unit t cash estimate is planned for Q1 2020. The photo on the right shows progress of concrete and and concrete of progress the shows right on photo 2020. Q1 The for is planned estimate www.CallStreet.com • • www.CallStreet.com
other components of the mill. of components other Teck ResourcesLtd. mber, we’d expended approximately $650 million and approximately 65% of the of 65% approximately and million $650 approximately we’dexpended mber,
ne s, which is above the guidance of 165,000 ton 165,000 of guidance the which is above s, - year copper production guidance is unchanged despite t despite is unchanged guidance production copper year ne sults are summarized on Slide 12. As a reminder, Antamina zinc Antamina a reminder, As 12. Slide on aresummarized sults s to 285,000 ton to 285,000 s Company▲ alination plant with rebar and concrete placement for the for placement concrete and rebar with plant alination - year collective agreement with the supervisory union at Carmen Carmen at union with supervisory the year agreement collective - year operating cost guidance is also unchanged. is also guidance cost yearoperating 212
- - year guidance for refined zin refined for year guidance
849 - ne date. The project continues to target construction construction to target continues project The date. Ticker▲ s. We expect Red Dog shipping season to be to season expectDog shipping Red s. We -
4070 the coarse ore stockpile and the reclaim tunnel theand reclaim ore stockpile coarse the TECK result in an agreement, and the workers’ union workers’ the and an in agreement, result ne
- th the concentrator and the port areas with areas port theand concentrator the th Slide 10, you can see the foundations for the 14 the for foundations you seethe can 10, Slide up to full production expected during 2022. As of Asof 2022. during expected production to fullup s to s
•
165,000 ton 165,000 Copyright © © Copyright
Q3 2019 Earnings Call Earnings 2019 Q3 - tively working across the six across working tively ne date. s to 170,000 ton 170,000 to s ne
s, reflecting the normal normal the reflecting s, Trail at production c
Event Type▲
2001 - ea of the of ea 2019 he strike at he strike
ne
CallStreet s.
Oct. 24, 2019 Oct. - related related
- Date▲
4
corrected transcript Ronald A. Millos, Chief Financial Officer & Senior VP Senior & Officer A. Financial Chief Millos, Ronald 2019 updated our in are included 2019of the remainder for reductions targeted The 2020. after sometime be required will which capital projects, of deferral the to relates 30% total, approximately and CAD deferrals and spending reductions capital planned in million 130 CAD includes That million. CAD 330 we aretargeting 2020, For other costs. various in million 50 CAD and deferrals and reductions in capital million 120 CAD includes and that CAD 170 is 2019of the balance for target The 2020. of end the to through spending planned previously from 500 million CAD approximately of total reductions targeting we are 16, on Slide o to reduce program reduction a company implemented we have earlier, Don as mentioned slide, next to the on Moving until2021. early Teck from areexpected contributions cash no and escalation, excluding for requirements our funding reduce dramatically plan financing the and transaction partnering the QB2 times, many we’ve mentioned as And early 2020. until expected not borrowing with first quarter fourth the QB2 in of development financ project recourse limited billion $2.5 to the expect close We agencies. credit rating the four major from ratings credit grade investment we have and 2035 unc year $4billion on our one by maturity the we extended Donas mentioned, onAnd Tuesday, QB2. of development the for in Chile is that of 1billion CAD in cash, billion CAD 1.6 includes that and currently, s remains position financial our 15, Slide to Turning short and cash with quarter we the ended items, minor other and these After quarter. the during dividend charges finance and interest in million 104 CAD we paid and million 159 CAD were costs stripping capitalized Our canceled. were which B shares in Class million 180 CAD purchased we and projects on capital million 824 spent CAD We b $1.2 theirof payment final was the that and the quarter, in Corporation Sumitomo and Mining Metal Sumitomo from contributions equity in million CAD 406 received we also operations and flowfrom cash in billion 1.1 CAD approximately we generated So Slide on disclosed quarter third the during position cash our in changes of a summary with Don.start I’ll Thanks, i that, pass I’ll With year. the full for guidance cost operating our unit of end high the and guidance production annual our of endlow the be at to expect continue to we curtailments, of extension announced the despite a with 2020 December through extended been have curtailments production The credits. curtailment of purchase our through offset partially curtailments, production Alberta’s of the Government to reflect continue costs operating unit and Production differ heavy of widening the and price Intermediate Texas the in West decline the reflecting primarily Q2, Q3from in declined profit 13.Slide Gross on aresummarized results unit business Energy Our
ommitted credit facility out to November 2024. We have no significant debt maturities prior to prior maturities debt significant no have 2024. We November out to credit facility ommitted - entials. term investments of about CAD 1.6 billion. 1.6 CAD about of investments term www.CallStreet.com • • www.CallStreet.com
Teck ResourcesLtd.
14. on results. our comments financial some Ron for to t over
ur spending on capital and operating costs through 2020. As detailed As detailed 2020. through costs operating and on capital ur spending Company▲ 212 . And we also paid CAD 28 million in our regular base base our in regular 28 million CAD paid we also And . -
849
200 million in our other costs. Of the CAD 500 million million CAD 500 the Of costs. our in other million 200 Ticker▲ -
4070
TECK the project to approximately $700 million million $700 to approximately the project trong with around CAD 6.8 billion of liquidity of billion 6.8 CAD around with trong - Finance, Teck Resources Ltd. Resources Teck Finance,
• illion investment in QB2. investment illion Copyright © © Copyright Q3 2019 Earnings Call Earnings 2019 Q3 n option to terminate earlier. And And earlier. to terminate option n ing facility to fund the the to fund facility ing Event Type▲ 2001
- 2019
CallStreet - wide cost Oct. 24, 2019 Oct.
million million
Date▲
5
corrected transcript Donald R. Lindsay, President, Chief Executive Officer & Director, Tec Director, & Officer Executive Chief President, R.Lindsay, Donald you, to operator. back So, line. what from it answering to be is going who out we sort while your you question ask after a b be may there so different locations, from in arecalling members team management our of some that note Ishould and yourquestions, answer to happywill be we that, with And shareholders. to cash additional and returning project successf cash, generate to and sustainably efficiently safely, our operations straight our executing with areconsistent actions These 2020. of end to re program a company implemented we have strong, remains position our financial While future growth. Teck’s of keywhich component is a project the QB2 of development the course, execution the on also focused business. We’re allour across productivity and toefficiency improve program RACE21 our on attention our focusing we are uncertainty, economic global the current given outset, at the you, AsIsaid Ron. Thank comments. hisclosing for toDon over back it that, turn I’ll With sites. working on contractors commod our of volumes production the in a reduction in result would that initiatives include not do reductions cost our target upfront, Donas stated And vacancies. job current and positions and contract expe those are of some positions, equivalent full 500 approximately to eliminate we expect reductions, cost our targeted to Andachieve February. in results gui
dance and the reductions in 2020 will be included in our 2020 guidance when we release our Q4 Q4 our we release when guidance our 2020 in included be will in 2020 reductions the and dance www.CallStreet.com • • www.CallStreet.com ities or that would adversely affect the health and safety of our people, including our including our people, of and safety the health affect adversely would ities orthat Teck ResourcesLtd. duce spending, targeting approximately CAD 500 million in reductions through the the through reductions in million CAD 500 approximately targeting spending, duce
Company▲ 212 -
849 cted to come from attrition, the expiry of temporary of attrition,expiry the from to come cted Ticker▲
of our priority project at Neptune Terminals and, of of and, Terminals at Neptune project priority our of - 4070 TECK
• Copyright © © Copyright
Q3 2019 Earnings Call Earnings 2019 Q3 - forward strategy of running running of strategy forward k Resources Ltd. Resources k Event Type▲ 2001 ully executing our QB2 our QB2 ullyexecuting - wide cost reduction reduction cost wide - 2019
rief pause pause rief CallStreet
- Oct. 24, 2019 Oct. time time
Date▲
6
corrected transcript QUESTION ANDANSWER SECTION QUESTION on a I think, beyou saving, should plus a ton, 8 CAD ton, CAD 7a of be kind could that And so pote could you Iheardthis say think I here, magnitude potential the about think of sort way to theIs right year. this year versus next lower be in to coal costs operating you expect that disclosed You reductions. – – – – – – – – – Ex. It’s permanent and it is largely head count. And you expect to reach that OpEx run rate run OpEx rate that you reach to expect And count. head is largely itand permanent It’s Ex. Robin Sheremeta Sheremeta Robin Lindsay Don Lindsay Don R Matt Korn Korn Matt Orest Wowkodaw Wowkodaw Orest Korn Matt Korn Matt Korn Matt on Millos on www.CallStreet.com • • www.CallStreet.com ntially be CAD 200 million of OpEx savings. I assume most of that’s in the coal division. that’s division. of in coal the most Iassume savings. OpEx of million 200 CAD be ntially o I think that’s behind us now. that’s us behind think o I Teck ResourcesLtd. st want to add one comment. In your summary of the cost reduction program, it implied it implied program, reduction the cost of your In summary one comment. add want to st – – – – – Goldman Sachs & Co. LLC>: LLC>: &Co. Sachs Goldman LLC>: &Co. Sachs Goldman LLC>: &Co. Sachs Goldman LLC>: &Co. Sachs Goldman Teck Resources Ltd.>: Ltd.>: Resources Teck – – Teck Resources Ltd.>: Ltd.>: Resources Teck Ltd.>: Resources Teck – – Teck Resources Ltd.>: Ltd.>: Resources Teck Scotiabank>: Scotiabank>: Company▲ 212 mp times associated with coal coming from that particular from with coming coal associated times mp Hi. Good morni Good Hi. - 849 That sounds generally in line there, yes. there, linein generally sounds That – Just before I turn over to Robin Sheremeta on that on that Sheremeta Robin to over Iturn before Just Robin? Ticker▲ am I understanding you correctly? Iunderstanding am - 4070 TECK Okay. All right. On the operational side, in coal in in coal in side, operational the All On right. Okay. taking for Thanks everyone. Good morning, Hi. Great. Thanks, I’ll pass it on. I’ll itpass Thanks, Great. that. Got You bet. I’ll start off by s off start I’ll bet. You bit more the spending and the cost reduction reduction cost the and the spending more bit • ng. Just pressing a bit more on the cost the cost on bit a more pressing Just ng. Copyright © © Copyright ng much, much more consistent train train consistent more much much, ng lve them? And should we expect this we expect Andshould them? lve Q3 2019 Earnings Call Earnings 2019 Q3 ne lines. [Operator Instructions] Instructions] [Operator lines. ne CRP immediately and we’ll get we’ll and immediately CRP Event Type▲ 2001 aying we don’t expect expect we don’t aying - 2019 CallStreet Oct. 24, 2019 Oct. at the at the Date▲ 7 corrected transcript here? about we’re talking what that Is a ton? CAD 10 of order the in be could that number a upballpark to – – – – – Don Lindsay Lindsay Don Sheremeta Robin Lindsay Don Orest Wowkodaw Wowkodaw Orest Wowkodaw Orest www.CallStreet.com • • www.CallStreet.com Teck ResourcesLtd. 20, down to about the long the about to down 20, – – Teck Resources Ltd.>: Ltd.>: Resources Teck Teck Resources Ltd.>: Ltd.>: Resources Teck ling together the budget and getting all our work done ahead of that into Q1, intoQ1, that of ahead done work our all getting and budget the together ling tor is really tor is – – – Teck Resources Ltd.>: Ltd.>: Resources Teck Scotiabank>: Scotiabank>: Scotiabank>: operations and it’s one that’s improving next year and forward into into forward year and next improving that’s one it’s and operations Company▲ ul coal from the Elkview operation where we had additional r additional wehad where the operation Elkview from coal ul – that’s affected our costs over the last year particularly and as as and year particularly last over the costs our affected that’s 212 ation with a very low cost base. And then, there are a few are afew there then, And base. cost very low a with ation I was going to say, do all those components kind of add add of kind components all those do say, to was going I components all those do But Okay. - 849 - Over to Robin. to Over No. Y No. Ticker▲ term run average of 10:1. So, that’s a major, a major, So, that’s 10:1. run of average term - 4070 TECK Yes. I’ll take I’ll take Yes. ou go ahead. ou cost, but we gained by far on the revenue revenue the on far by gained we but cost, • - cost operation. We did choose to not did not to choose operation. cost We for the last couple of years is and this of last couple the for Copyright © © Copyright . It’s now peaking at about 11.4:1. about 11.4:1. at peaking now It’s . Q3 2019 Earnings Call Earnings 2019 Q3 – I’d like to walk you through ju you through walk to like I’d give us some kind of order of of order of kind some us give Event Type▲ 2001 t the first three quarters three quarters first t the -- sorry, go ahead, ahead, go sorry, - 2019 e year, take year,e take replace it withit replace CallStreet Oct. 24, 2019 Oct. aw st st Date▲ 8 corrected transcript we go. as conditions market watching it,with will continue we in and place is still before discussed w announcement all that So, that’s the regulators. from approval and get program the renew to formally we have year, a Once announcement. regulatory a normal – – – – – – – – le bit to your strategy for how you’re going to be buying back shares maybe for the rest of this of the rest for shares maybe back buying be you’re to going how your for strategy to bit le – Don Lindsay Lindsay Don Andres Dale Lindsay Don Lindsay Don Sheremeta Robin Orest Wowkodaw Wowkodaw Orest Jackie Przybylowski Przybylowski Jackie Jackie Przybylowski Przybylowski Jackie - our full term program that you’re thinking of maybe more for for more maybe of you’re thatthinking program term www.CallStreet.com • • www.CallStreet.com g that you referred to the CRP as deferrals. While there are some deferrals that may that may deferrals aresome there deferrals. as While CRP the to you referred g that Teck ResourcesLtd. ank you. The next question is from Jackie Przybylowski with BMO Capital Markets. Markets. Capital BMO with Jackie Przybylowski is from question next you. The ank - year guidance in the February quarterly call after we release annual and that would that and annual werelease after call quarterly February the in year guidance – – – – faction with wages and working conditions and the things that have been been have that things the and working conditions and wages with faction Teck Resources Ltd.>: Ltd.>: Resources Teck Teck Resources Ltd.>: Ltd.>: Resources Teck Ltd.>: Resources Teck Teck Resources Ltd.>: Ltd.>: Resources Teck ted out, CdA remains on strike and that operation was suspended before before was suspended and operation that strike on remains CdA out, ted the minimum obligation or a commitment that you had made to capital capital to you made had that a commitment obligation or minimum the no major or material impacts. I don’t really want to get into any details on on details any into get to want I don’t really impacts. or material major no – – Teck Resources Ltd.> Resources Teck Scotiabank>: Scotiabank>: – – BMO Capital Markets (Canada)>: (Canada)>: Capital Markets BMO (Canada)>: Capital Markets BMO Company▲ 212 Okay. Thank you very much. Thank Okay. - 849 Hi, Jackie. Just to reiterate what Don said, we said, Don what to reiterate Just Jackie. Hi, So the announcement that came out just recently is recently just out that came announcement the So Andres toDale over one going that to turn I’m Okay. Yes. Ju Ticker▲ - 4070 TECK : I wouldn’t speculate on it on a ballpark number number ballpark a on it on speculate wouldn’t I st to remind everybody, we will be giving our giving wewill be everybody, to remind st • Copyright © © Copyright tics and shift changes, and we’re really really we’re and changes, shift and tics 2020? bout earlier, the civil unrest that is that unrest civil the earlier, bout Q3 2019 Earnings Call Earnings 2019 Q3 as. The NCIB that we had wehad that NCIB The as. All right. Thanks very much. I just I just very much. Thanks All right. A ll right. That’s fair. And maybe if if maybe And fair. That’s right. ll Event Type▲ 2001 - 2019 CallStreet Oct. 24, 2019 Oct. Date▲ , 9 corrected transcript under contract. committed million 300 CAD over little a about have and incurred, and date to 200 million CAD over slightly we’ve spent now, Right million. 800 CAD under to just definit our towards work we As here. release the here in – – – – – – – – – – – Don Lindsay Lindsay Don Lindsay Don Sheremeta Robin Sheremeta Robin Li Don Alex Christopher Greg Barnes Barnes Greg Chris Terry Terry Chris Barnes Greg Barnes Greg Jackie Przybylowski Przybylowski Jackie , I know, Greg, you know this. These are very short very are These this. you know , I Greg, know, because every day after the upgrades, obviously, we are able to produce more coal.it So more produce to able we are obviously, the upgrades, after day every because www.CallStreet.com • • www.CallStreet.com Teck ResourcesLtd. hank you. And the next question is from Greg Barnes with TD Securities. Please go Please Securities. with TD Greg Barnes is from question you.the next And hank ndsay ndsay completion is scheduled for Q1 of 2021, and I think over to you, Alex, on the percent of of percent on the you,Alex, over to think and I 2021, of Q1 for scheduled is completion – – – – – – – D Teck Resources Ltd.>: Ltd.>: Resources Teck Ltd.>: Resources Teck Teck Resources Ltd.>: Ltd.>: Resources Teck TD Securities, Inc.>: Inc.>: Securities, TD Inc.>: Securities, TD Inc.>: Securities, TD eutsche Bank Securities, Inc.>: Inc.>: Securities, Bank eutsche – – – versus second half percentage half second versus Teck Resources Ltd.>: Ltd.>: Resources Teck Teck Resources Ltd.>: Ltd.>: Resources Teck Ltd.>: Resources Teck – BMO Capital Markets (Canada)>: (Canada)>: Capital Markets BMO Company▲ 212 - 849 Hi there. Thanks. Don, I just want to investigate the the investigate want to Don, I just Thanks. there. Hi Okay. Thank you. Thank Okay. And in terms of production next year, can you give us us youyear,give can next production of terms in And No. This is an operating strategy. I’ll go back to go back I’ll strategy. operating is an No. This Okay. Just before I turn it over to Alex, the the Alex, to over it Iturn before Okay. Just Yes. We’re going to do that with the guidance. I guidance. with the that do to going Yes. We’re Ticker▲ - 4070 TECK Yes. So, we’ve provided some new guidance new guidance some we’ve provided Yes. So, Really, I’d like to wait certainly for the Q1. for wait to certainly like I’d Really, Yes, we plan every year to take the plants down down plants the year totake every we plan Yes, • Hi, guys. Thanks for taking my question. In question. my taking for Thanks guys. Hi, ive cost estimate, we see costs increasing increasing costs we see estimate, ive cost - - term questions. We’re doing something doing something questions. term We’re wise? Copyright © © Copyright rt of really focus on this quarter or next next quarter or on this focus really of rt Q3 2019 Earnings Call Earnings 2019 Q3 Got it. Okay. Thanks very much. very much. Thanks Okay. it. Got oing at the Elkview plant, plant, Elkview the at oing Event Type▲ production. You said production. 2001 just make clear the make just - 2019 CallStreet Oct. 24, 2019 Oct. Date▲ 10 corrected transcript other of calls we are receiving and and feasibility, prefeasibility as such milestones different mising and has a number of advantages over QB2 just benefiting from QB2’s infrastructure and QB2’s infrastructure benefiting from just QB2 over advantages of a number has and mising – – – – – – Don Lindsay Lindsay Don Lindsay Don Lindsay Don Chris Terry Terry Chris Timna Tanners Tanners Timna Tanners Timna www.CallStreet.com • • www.CallStreet.com - specific project challenges in Peru. in challenges project specific pare the current challenges that those countries are facing, the challenges that are that challenges the arefacing, countries those that challenges pare the current its in with QB2. withThanks. QB2. its in Teck ResourcesLtd. e had no effects on any of the operations in the country to speak of. So until you So until of. speak to country the in operations the on of any effects no had e – – – – Deutsche Bank Se Bank Deutsche tment from our industry, which has been by and large very successful. Andwe successful. very large and by been which has our industry, from tment Teck Resources Ltd.>: Ltd.>: Resources Teck Ltd.>: Resources Teck Teck Resources Ltd.>: Ltd.>: Resources Teck – – Bank of America Merrill Lynch>: Lynch>: America Merrill of Bank Bank of America Merrill Lynch>: Lynch>: America Merrill of Bank Company▲ us any updated thoughts on the emphasis or the timing if they’re they’re if timing orthe emphasis the on thoughts updated any us less country risk. And then I just wanted to ask if that if ask to wanted I just Andthen risk. country less - 212 ed or if you’re continuing to move ahead with some of the of with some ahead move you’re to ed continuing orif curities, Inc.>: Inc.>: curities, - – 849 probably the leading country in South America in America South in country leading the probably We’re continuingto ad We’re So, we’re working on the scoping study for QB3, QB3, for study scoping the working on we’re So, Timna, I th I Timna, ort of a Phase 2 all the way to a triple or even or even way a triple to the 2 all Phase a ort of Ticker▲ - 4070 TECK mendously country for lots of opportunity. We opportunity. We lots of for country mendously • Okay. Thanks. Thanks very much. And very much. Thanks Okay. Thanks. ink that’s a fair question. I think until a I think that’s question. a fair ink Copyright © © Copyright Hey, good morning. I really just wanted wanted really I just morning. good Hey, Okay. Super helpful, thanks. And sorry thanks. helpful, Super Okay. Q3 2019 Earnings Call Earnings 2019 Q3 communities, just as we are seeing weare as seeing just communities, - feasibility quite quickly. It is very is It quickly. quite feasibility vance those projects towards towards projects those vance evelopments area concern. evelopments Event Type▲ 2001 America. Please go go Please America. - 2019 CallStreet Oct. 24, 2019 Oct. Date▲ 11 corrected transcript commitments. our contractual with line in vessels nominate to arecontinuing customers we seedemand all, in all So, other countries. the in production domestic is supporting China,that so from exports steel reduced also seen We’ve Asia. Southeast and out growth 2020 is that for number the in point interesting the But 2020. in 1.7% and 2019 in 9% like to grow demand steel is forecasting Association Steel the so 2019, World to compared 2020 into welook If tha the reductions offsetting and which is more China, and Asia Southeast India, in strong is especially production hot metal that markets, various at the welook base. If our customer from demand to see continuing we’re So, August. date, is up just production metal hot and quite resilient demand seen we’ve And price. under is still just pricing coal. The for market in market, the broadly seeing – – – – – – – Réal Foley Foley Réal Lindsay Don Sheremeta Robin Lindsay Don Timna Tanners Tanners Timna Lucas Pipes Pipes Lucas Pipes Lucas www.CallStreet.com • • www.CallStreet.com sh plant versus geology? I would appreciate your thoughts. Thank you. Thank your thoughts. appreciate would I geology? versus plant sh side of China is expected to still be 2.5% in 2020, and most of that is coming from India from that of is coming most and 2020, in 2.5% be to still expected is China of side Teck ResourcesLtd. – Teck Resources Ltd.>: Ltd.>: Resources Teck – – – – B. Riley FBR, Inc.>: Inc.>: FBR, Riley B. Inc.>: FBR, Riley B. Teck Resources Ltd.>: Ltd.>: Resources Teck Ltd.>: Resources Teck – the plants are pretty much where they are. We do expect some improvement improvement do some expect are. where they We much are pretty plants the Bank of America Merrill Lynch>: Lynch>: America Merrill of Bank – volatile over the summer. And I’d be curious, what do you see you what do curious, And be I’d summer. the over volatile Teck Resources Ltd.> Resources Teck t we’ve seen in Europe, Japan and the Americas. the and Japan Europe, in we’ve seen t ngoing. yes, sure the prices have corrected, but I would not say it’s a weak weak it’s say a would not but I corrected, have prices yes, the sure ne Company▲ of coal we produce. coal of 212 - Hey. Go Hey. I hope I will s will I I hope 849 All right, Lucas. Thanks for that. I guess what we’re what that. I guess for Thanks Lucas. All right, $ for products continuing to be fairly strong and and strong be tofairly continuing products for 150 per ton 150 I think that’s the first time we’ve ever received that received that we’ve ever time first the that’s I think Yes, I’d encourage you to ask that question, Lucas, a a Lucas, that question, youask to encourage Yes, I’d Ticker▲ - 4070 TECK : od morning, everyone. I wanted to revisit the the to revisit wanted I everyone. morning, od Yes, you know what, the short answer is is answer short the youwhat, know Yes, • ee it in the results before then, so thank thank so then, before theeein results it ás that are near that ás ne Copyright © © Copyright Thanks again. Thanks , which is by all measures still a decent stilla decent allby measures which is , Q3 2019 Earnings Call Earnings 2019 Q3 - developing and that sort of thing. of that sort and developing - Event Type▲ term, so steady as she as steady so term, 2001 - 2019 under 4% year 4% under eally around eallyaround CallStreet [ p Oct. 24, 2019 Oct. h ] as theas - to Date▲ - 12