Teck Resources Ltd. (TECK) Q2 2021 Earnings Call

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corrected transcript Donald R. Lindsay, President, Chief Executive Officer & Director, Teck Resources Ltd. Resources Teck Director, & Officer Executive Chief President, R.Lindsay, Donald Ltd. Resources President Vice Senior Phillips, H. Fraser Participants Other Participants Corporate MANAGEMENT DISCUSSION SECTION MANAGEMENT DISCUSSION PARTICIPANTS Pric Jonathan by followed highlights quarter second our 3 with on slide begin I will everyone. morning, good and you,Fraser, thank Well, Don to over call turn the I will With that, Appendix. the in measures these regarding reconciliations and explanations find non various use we that out to likepoint also I would update to obligation the assume does not Teck vary. to results actual cause may and uncertainties risks Various statements. those underlying assumptions the slidedescribes This our business. regarding forward regarding caution to the attention your draw to like I would begin, we Before call. 2021 quarter second Teck for us for joining thanks and everyone Good morning, much, Laurie. very Thanks ahead. go Please Analysis. Strategic and Relations President Vice Senior Phillips, Fraser to over call conference the to liketurn now I would Tu question a conduct will Later, we listen a in are all participants time, At this Call. Conference Release Earnings 2021 gentlemen, and Ladies Operator: MacArthur Brian Agarwal Abhishek Alba F.De Carlos Pipes Lucas N. Barnes Greg Murphy Matthew Wowkodaw Orest Réal Fol B.Sheremeta Robin Conger Milton Harry J R.Lindsay Donald Ltd. Resources Phillips H. Fraser

onathan Price onathan esday, July 27, 2021. 27, July esday,

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Senior Vice President Vice Senior Analyst, Morgan Stanley & Co. LLC & Co. Stanley Morgan Analyst, Analyst, Scotiabank Analyst,

– Analyst, Deutsche Bank Deutsche Analyst, President, Chief Executive Officer & Director, Teck Resources Ltd. Resources Teck & Director, Officer Executive Chief President, –

Senior Vice President Vice Senior

Executive Vice President & Chief Operating Officer, Teck Resources Ltd. Resources Teck Officer, Operating Chief & President Vice Executive Lindsay, our President and CEO. and President our Lindsay, Company▲ ley Securities, Inc. Securities, ley - and

thank you for standing by. Welcome to Teck’s Second Quarter Quarter Second to Teck’s Welcome by. standing youfor thank - Marketing & Logistics, Teck Resources Ltd. Resources Teck & Logistics, Marketing - 212 answer session. This conference call is being recorded on on recorded is being call conference This session. answer

- Investor Relations & Strategic Analysi Strategic & Relations Investor

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Investor Relations & Strategic Analysis, Teck Teck Analysis, & Strategic Relations Investor e, our CFO who will provide an additional color on our on color additional an provide who will our CFO e,

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Ticker▲ Coal, Teck Resources Ltd. Resources Teck Coal, - 4070 TECK

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Q2 2021 Earnings Call Earnings 2021 Q2 Event Type▲

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CallStreet

Investor Investor Jul. 27, 2021 Jul. 27, Date▲

1 corrected transcript last Q2 with up compared 104% was EBITDA Adjusted commodities. key of our all in increases price spot reflecting quarter, second the in results our financial in improvement a significant We saw for chain supply reliable long a of securing component a key is this upgrade And see. to is exciting It last. before week there I was plan. better than or to according performing across fullup capacity to ramping is upgrade facility Neptune our time, At same the 2023. by production copper our consolidated double to expected QB2 is And year. next is which of 2022 half second the in at QB2 production first to expect We continue progre full make can where we project different an entirely months 12 next for the hope up to the project projects, two of a tale be will So this r increasing and room to a people able are and we cases active three about to just down got things now we’ve weeks, of couple last the in just because excited are very we now And quarter. that during we made pr immensely we are is why that so And challenge. is a ithuge the quarter, 12% during at running absenteeism with that combine you when And orwelders. operators crane e plans, weekly construction the and to productivity your consistency, crew your does to that what imagine can you high. So very were averages monthly and quarantine in individuals 350 had Q2,we in peak At the They work. to return PCR are they And hotels. quarantine in put and project off the taken are also individuals contact the and traced contact are then They days. four about They purposes. for quarantine permanently them secured we’ve where coast the on hotels to taken they’re and project off their taken they’re that symptoms, has individual an is when now with dealing we’re what open, wide it’s where York New in perhaps ce investment anin be sitting who may of you for those like it’s what on color a more bit Just conditions. challenging these under is remarkable won and hard been has quarter second in progress substantial tes the to team the QB2 put has that burden COVID of the spread of prevention the in important so been had that testing and protocols, the All restrictions, of months. three past these in had have we that challenges we suspension, temporary the following last year restarted construction When wave. first the than on QB2 impact larger a much had has pandemic of the wave recent Most dose. one least at received having workfo project of the 60% than more QB2 itself, at And dose. second their had have 74% and dose first their had have 85% around people, million 19 of its total population Of program. vaccination their with job commendable very a done Chile has a h with compared cases of 30 average daily a iscurrently there And is 49%. number that located, QB2 is where region in Tarapacá the And of 99%. peak the from is down itBut 88%. at though is still high averag is now declined, has ofcases number COVID of number the quarter, second the During it was. how to describe just numbers few a review Let me to progress quarterly best our we had project our QB2 At of2021. quarter second positive a very for made conditions market at performance So, solid questions. any answer to happy be will team senior of our members additional several and myself and Jonathan where session a Q&A with conclude then we’ll and results financial

- www.CallStreet.com • • www.CallStreet.com igh of 251. ofigh 19 cases skyrocketed to a high of around 8,900 per day in Chile. Thankfully, recently the recently Thankfully, Chile. in per day 8,900 around of a high to skyrocketed cases 19 TeckResources Ltd. specially when the affected individuals are mission critical people like supervisors or supervisors like people critical are mission individuals affected the when specially

test positive, they quarantine for 14 days. 14 for quarantine positive, they test

our steelmaking coal business. coal steelmaking our

our operations and our priority projects against the backdrop of improving improving of backdrop the against projects our priority and operations our - date and this is despite the largest COVID largest the is despite this and date Company▲ esources on site and finally getting a chance to go to full strength. fullgo strength. to to a chance getting finally and on site esources

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849 t. But our team has risen to that challenge. The The challenge. to that risen has our team But t. ing about 1,500 per day. Critical care bed occupancy occupancy bed care Critical day. per 1,500 about ing Ticker▲ rce is fully vaccinated with over 80% of the workers workers ofthe 80% with over vaccinated is fully rce - 4070 TECK - term, low cost cost low term, - date heavily influenced by COVID; and we we and COVID; by influenced heavily date

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tested. If they test negative, they are to areto they negative, they test tested. If

the site. The equipment there is there equipment The the site.

Q2 2021 Earnings Call Earnings 2021 Q2 – - in returned results The tested. much, much lower cost and and cost lower much much, - 19 case surge 19 case had nowhere near the the near nowhere had Event Type▲ 2001 oud of the progress that that progress the of oud - – 19 are also a large large a are also 19

already putting three three putting already - 2021

so far in Chile. in far so

ss. CallStreet

Jul. 27, 2021 Jul. 27, nter, Date▲

corrected transcript to dueCOVID operations suspended temporarily had Antamina when year last period same in than the higher was Production prices. copper higher substantially by driven year last period EB in increase a 385% Q2with strong a had unit copper business 5. Our onslide copper with starting unit business by highlights quarter second some through I’ll run dilut a on share per 0.63 is CAD which million, 339 CAD to 281% increased to shareholders attributable bottom and million 989 CAD to 104% increasing EBITDA adjusted more with 50% fro almost up by were Revenues prices. China CFR premium at priced were that China in tosales customers of million tonnes 2 around from benefited prices coal steelmaking realized Our year. last inthan Q2 all reached prices Copper prices. commodity improved by supported year last to Q2 compared improved aresignificantly results 4, our financial slide on financialresults 2021 quarter second of our overview an to Now turning corporate for in Canada 50 companies top the of one as ranked been we have that year 15th consecutive is the which Canada in citizens corporate 50 best to the named to be proud very were Finally, we lowered we have and coal, of costs cash site adjusted and zinc, copper and in costs unit total cash year full for the our guidance changed not have we this, Despite year. the of half in second the costs upward modest put to increases price these expect we 39%, of margin EBITDA an adjusted delivered we as slight was results quarter second on our impact the While as such commodities for underlying increases price by largely driven explosives, and tires, fuel, equipment, mining including supplies key certain of in costs the increases noted have We generally. ar we industry the in others like time, same the At us. for economic very is clearly which terminal, Ridley to vessels and trains divert some doWe increase. cost the wildfires, to duethe it is And you. for of bit context a little just that’s So, dollars. $100 by rose quarter the during price FOB Australian curre of the context within wildfires of athe result that’s so costs, transportation in our in context increase that to view important it’s I think And tonne. 42 per to CAD 39 CAD to tonne 3 per CAD by range in have we And tonnes. million 26and 25 million has guidance production annual Our quarter. for the million tonnes to be expected now are sales coal steelmaking quarter third Our business. coal steelmaking our impact negatively to expected is which disrupted been have services BC.in Rail our operations at transportation seco our impact not did wildfires the While affected. directly been have who all those to condolences our deepest extend We last week. emergency of a state declared government provincial the and difficult very remains situation the And Columbia. i wildfires the by impacted were logistics our rail though, quarter the of end very At the inand zinc. coal steelmaking in guidance sales quarterly our met we and units our business across performed operations Our year.

ed basis. And Jonathan will review our financial results in more detail in a few minutes. few a in detail more in results our financial will review Jonathan And basis. ed nt steelmaking coal prices. While we’re raising our cost guidance range by CAD 3, the the 3, CAD by range guidance cost our raising we’re While prices. coal nt steelmaking contracts www.CallStreet.com • • www.CallStreet.com steel, crude oil, and natural gas. For our operations the largest impact is on our fuel costs. fuel on our is impact largest the our operations For gas. natural oil, and crude steel,

citizenship. TeckResources Ltd. reduced by 500,000 to 800,000 tonnes with guidance revised to 5.7 million to 6.1 6.1 to million 5.7 to revised guidance with tonnes to 800,000 500,000 by reduced

in place to ship to all three West Coast ports and that gives us the flexibility to flexibility the us gives that and ports Coast West three all ship to to place in

our guidance for full for our guidance

Company▲

well during the second quarter. Production was in line with plan plan line with in was Production quarter. second the during well - time record highs highs record time – m a year ago to CAD 2.6 billion. Profitability improved even even improved Profitability billion. CAD 2.6 to ago m a year 212

that range has been lowered by 500,000 tonnes to between between to tonnes 500,000 by lowered been has range that - nd quarter results they are currently impacting impacting arecurrently they results quarter nd

e seeing signs of cost inflation across the business more the business across inflation of cost signs e seeing 849 Ticker▲ - - year net cash unit costs in zinc. unitcosts cash net year creased our annual transportation cost guidance guidance cost transportation annual our creased 4070 TECK

in the quarter with average prices 81% higher 81% higher prices average with quarter the in

pressure on our cash unit unit our cash on pressure Event Type▲ 2001

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Jul. 27, 2021 Jul. 27, - 19. -

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corrected transcript of tec section investor in the materials call conference quarterly our with posted have we which gallery photo quarterly latest view our and project of the a video watch you to encourage I on QB2, progress latest the of seeTo more you’ll right back the In welding. for ready left, the on pipeline concentrate string the and right the on pipe water welded trench, the the pipeline 9 shows slide And backfill. and placement welding stringing, pipe the on advancing right pipeline theAs driving. pile commenced where we’ve froma jack jetty the to advance now fronts work offshore additional jett the advancing in our progress 9 shows Slide well. are performing which 794s of CAT fleet our new of some and fleet mine Teck the to utilize are continuing We quarter. the in significantly elevation taili the of dam the starter 8 shows Slide substation. power onsite the of stage advanced the can see right, you middle the in lastly And facilities. regrinding the and thickeners bulk concentrator and the copper c advanced we’ve where see can you foreground, In the blue. in cells flotation meter 650 cubic large 14 the of left to the just green, in photo of leftthe a building grinding of the steel structural the to advance we continue And up. go will dome stockpile the for tower see the you can that, behind progres significant made have we and project for the path longest orthe critical the remain background in the lines shown grinding The progress. construction weekly strong making are where we area the concentrator of view aerial an 7 provides Slide of COVI wave the second of impacts forecasted of the a result as million to $600 updated for COVID estimate our and escalation after. week thepart of early or in very week next either in so August, early in completion overall 60% achieve toexpect we quarter, last that through of construction pace solid the on Based year. of next half second we are stil and plan on circuitremains grinding is the which path The critical levels. workforce peak towards up ramping aggressively we are ofrates vaccination, CO With on right site. ourworkers for campaign vaccination a out rolled successfully we’ve government, the with coordination in Additionally, to site. gone have would otherwise that cases positive fact w in And COVID. in managing Pre operate. we which in communities COVID extensive COVID of wave ongoing significant to progress of quarter best the with construction advance effectively to continued has project the earlier, Imentioned As 6. slide on QB2 project our on update an to Turning production our annual maintained We’ve 67%. ofunit business copper for the margin EBITDA adjusted an we delivered pressures, cost those Despite dollar. Canadian of the strengthening the and costs consumables higher well as as ago a year to compared impact per pound a $0.20 had this And at Antamina. profitability from increased resulting expense royalty in participation workers’ higher to due is primarily in cost increase But the per pou a $1.80 were costs unit Total cash

nd the mechanical installation of the stage flotation reactor cells which you can see in the middle middle the seein youcan cells which reactor flotation stage of the installation mechanical nd the

www.CallStreet.com • • www.CallStreet.com VID TeckResources Ltd. - 19 cases in Chile declining coupled with the country’s and the project workforce’s high high workforce’s project the and country’s the with coupled declining in Chile 19 cases - 19 protocols in order to protect the health and safety of our workers and the and the our workers of safety and health the toprotect order in protocols 19 - of

- including billion at $5.26 remains estimate capital cost Our way and platform development is now effectively effectively is now development platform and way

Company▲ see our portworkings. our see e have screened out 1,300 positive cases, more than 1,300 1,300 than more cases, 1,300positive out screened e have - 19 in Chile. We co Chile. in 19

212 k.com. And you will find links to them in our Q2 press release. press Q2 our in to them links will find you And k.com. - - screening and onsite testing have been key to our success to our success key been have testing onsite and screening 19 capital impacts which are tracked separately has been been has separately tracked which are impacts 19 capital ngs management facility where we have raised the dam dam the raised have we where facility management ngs - coar nd which was $0.23 per pound higher than a year ago. ago. a year higher than pound per $0.23 was which nd

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stacker that has been erected where the the where erected been has that stacker

and ntinue to maintain and enhance our our enhance and maintain ntinue to

• onstruction and mechanical installation of of installation mechanical and onstruction s here with all six mills now in place. And And place. in now mills all here with six s Copyright © © Copyright operating cost guidance guidance cost operating Q2 2021 Earnings Call Earnings 2021 Q2 l on track for first production in thein production for first track l on - up barge and temporary island temporary and up barge

Event Type▲ complete, we are focused focused weare complete, 2001 - 2021 - date despite the the despite date contingency and contingency in copper. in

CallStreet D - Jul. 27, 2021 Jul. 27, 19.

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corrected transcript Q2. ofhalf in latter the occurred that prices in increase sharp the reflect to performance our financial of margin EBITDA adjusted an delivered unit coal business steelmaking our quarter, second the In the range. of end higher at inthe coming costs in to result up However, year. full for the guidance sales to cost cash site adjusted our increased not have We quarter. the during 100 CAD by risen have which prices coal steelmaking current of context and CAD 39 CAD between to tonne 3 per CADby range guidance cost transportation annual our increased have we And million tonnes. 26 to million 25 to tonnes 500,000 by lowered been has range guidance production annual Our is and that 2021 in China to of sales tonnes million 7.5 target to We continue realizations. price in favorable to result to continue expected is which China to volumes sales spot available prioritize continue to to million 6.1 to million tonnes 5.7 expect we and tonnes 800,000 to 500,000 by be reduced to expected now are sales coal steelmaking quarter third Our coal. steelmaking in costs transportation annual and volumes production quart our third impact negatively to is expected which disrupted, been have Rail services BC. in operations our impacting arecurrently earlier, wildfires mentioned ex our full above were tonne per CAD 42 of costs transportation Our ago. a year than lower per tonne CAD 4 and anticipated, as range, Adjuste last year. did we that expansion the to thanks record, production all a new set operations our Elkview And tonne. a $315 to $314 are around similar customers, Chinese salesto of tonnes 2 million around includes price realized our average and range, guidance our linein with tonnes, million 6.2 were quarter sales second the In appreciated. on sl coal business our steelmaking to Turning than longer and the sources feed concentrate zinc quality of availability lower to due tonnes 300,000 our full lowered also We’ve pound. per to $0.40 $0.35 to pound per $0.05 by range guidance unitcost cash net our full year lowered we’ve And tonnes. 630,000 to tonnes 605,000 to tonnes 20,000 by range zinc our full year increased We’ve Dog. at Red production tonnes. 200,000 to tonnes is 180,000 concentrate and zinc Dog the Red R forward, Looking longer we Trail, At volumes. production 2020 lower the to related for sale inventory per poun $0.61 of cost unit cash and total our guidance, line in with was which tonnes, 39,000 were concentrate and zinc of sale Red Dog that. through now are We this year. of half first the in operations available material lower in resulted Dog at Red volumes production 2020 lower flagged, previously had we as and year, last period same the with compared 67% by increasing production with in quarter the performance strong has zinc Antamina reminder, a as And 11. slide on summarized are quarter second for the results unit business ourNext, zinc

pected, and higher than a year ago as a result of higher fuel surcharges and tariffs. As we As we tariffs. and surcharges higher fuel of a result as ago a year than higher and pected, ward pressure on input costs due to cost inflation and the impact of the BC wildfires are expected areexpected wildfires BC the of impact the and inflation cost due to costs input on pressure ward

- planned roaster maintenance shutdown during the quarter. the during shutdown maintenance roaster planned -

- than to the first quarter at high CFR China prices. And just as a reminder, the CFR China prices prices China CFR the a as reminder, just And prices. CFRChina high at quarter first the to www.CallStreet.com • • www.CallStreet.com d site cash cost of sales were CAD 64 per tonne, which was at the high end of our guidance our guidance of end high at the was which tonne, per 64 CAD were of sales cost cash d site rang guidance production zinc refined year

unchanged from previous guidance. previous from unchanged - TeckResources Ltd. planned annual zinc roaster maintenance which is now behind us. behind is now which maintenance roaster zinc annual planned ed Dog shipping season commenced on July 19 and our Q3 sales guidance for guidance sales Q3 our and July19 on commenced season shipping Dog ed - related financial results are reported in our copper business unit. Re business our copper in reported are results financial related Company▲ for sale and h and for sale

42. Again, it is important to view this cost increase in the the in increase cost this to view is important it Again, 42. 212 d reflect higher treatment charges and a higher cost of of highercost a and charges treatment higher d reflect -

849 ide 12, and if you still remain on mute, that would be would that mute, on still remain ifand you 12, ide Ticker▲

- 4070 TECK igher unit cash costs of sales for our zinc mining mining our zinc for of sales costs cash unit igher e for Trail by 10,000 tonnes to 290,000 tonnes to tonnes 290,000 to 10,000 tonnes Trail by e for

41% and in the third quarter, we expect we expect quarter, in third the and 41%

concentrate producti concentrate Q2 2021 Earnings Call Earnings 2021 Q2

er sales volumes and our annual our annual and volumes er sales

- year guidance range, which was was which range, guidance year

Event Type▲

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CallStreet Jul. 27, 2021 Jul. 27,

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corrected transcript Jonathan Price, Senior Vice President & Chief Financial Officer, Teck Resources Ltd. Resources Teck Officer, Financial &Chief President Vice Senior Price, Jonathan million. 20 CAD were S spreads. our credit of tightening to duea operations closed for provisions restoration and decommissioning our discount used to in rates the decrease to a relates primarily This basis. ad significant most The 17. slide on adjustments earnings quarter’s second the of details the addressing by start I will Don. Thanks, for som toJonathan over pass I’ll that, with And per barrel. 44 to CAD 40 to CAD barrel per 12 CAD by range guidance cost operating adjusted our 2021 increased also We’ve year. by range guidance production our 2021 lowered have we challenges mining the and issues operational the of a As result 2022. until delayed been therefore has operation train resultin planned, than slope mine shallower a mining will that require challenges additional encountered we July, in the quarter of end to the subsequent And aquifers. subsurface deep from inflow groundwater overburden of contract up ramp planned than a slower been has mine. There the in issues operational due to production and lower costs operating higher unit offset by partially this was However last year. of Q2 with compared prices i improvement material reflected results and price realized 16, our slide on are summarized which quarter the second for unit results business our energy to Turning release. press our Q2 init to link a with teck.com, call conference our quarterly with gallery photo quarterly latest our posted have we project, Upgrade Neptune at our progress latest of the more to Andsee business. coal for oursteelmaking chain a as k Neptune with phase ramp up the site into move project see the to pleased really We’re exciting. very was loading. It the watch and it up on climb and it to see wentus of bunch a And tonnes. 200,000 up to loads and long Termi at Neptune loaded ever vessel capesize largest the 15Slide shows technology. is world class which cars the between down comes that arm the and system drive the can see you And dumper. the in trains advanced for the indexer new the of photo a 14Slide shows maintenance. preventative complete ramp wide the site affect not should wildfires. This f paused Terminal throughput per annum. tonnes million of 18.5 excess in processing of be capable will terminal the that indicating dumper, single and double the of combination the with at Neptune times handling train excellent are seeing ve and handling for train months big be to anticipated are September and August wideramp site to the on moved then and dumper double the commissioning fully on continued steel ramp the is in Project Port ourNeptune earlier, Iindicated as 13,Slide

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making coal was unloaded using using unloaded was coal making - based compensation expense was CAD 24 million in the quarter and commodity derivatives derivatives commodity and quarter the in million 24 CAD was expense compensation based www.CallStreet.com • • www.CallStreet.com

TeckResources Ltd. g in lost ore and the need for additional overburden stripping. The ramp The stripping. overburden additional for need the and lost ore in g

or the first two weeks of July as a result of the rail disruption due to to due disruption rail the of a as result July of two weeks first or the

2 million to 4 million barrels to 6.8 million to 8.1 million barrels for the for the barrels million 8.1 to million 6.8 to barrels million 4 to 2 million Company▲ justment is a CAD 44 million in environmental costs on an after on an costs environmental in million 44 CAD is a justment

ey component of our long term low term long our of component ey

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stripping as well as challenges around managing managing around challenges as well as stripping

new double rail car dumper on April 19, where April 19, on dumper car rail double new -

849 Ticker▲ - results. financial our on e comments 4070 TECK

double dumper, which is used to position position to is used which dumper, double up. And the pause gave us the opportunity to opportunity the us gave pause theAnd up.

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materials in the investor section of section investor the in materials Copyright © © Copyright Q2 2021 Earnings Call Earnings 2021 Q2 n Western Canadian Select Select Canadian Western n - - up phase and since the first first the since and phase up cost and reliable supply supply reliable and cost Event Type▲ 2001 nal, which is 300 meters meters is 300 which nal, - 2021 ssel loading. We We loading. ssel

CallStreet - work up to two to up - wide wide Jul. 27, 2021 Jul. 27,

- up, up, - tax tax Date▲

corrected transcript Donald R. Lindsay, President, Chief Executive Officer & Director, Teck Teck Director, & Officer Executive Chief President, R.Lindsay, Donald in improvements change a step to drive technologies edge cutting is harnessing which program o through carbon assets low high quality our existing to strengthen also continuing We’re transition. low carbon for the required coal quality steelmaking high the produce to while continuing business total our of a as proportion carbon reduce continue to to expect we process, the In our strategy. of cornerstone is the growth copper Accelerating industry. the in profiles growth production copper best very of onethe with forsee copper we growth demand strong pos best of is onethe Teck We believe environment. price commodity favorable current the in flow cash strongfree and results operating strong delivering and on strategy growth corporate on our focused we remain In closing, Jonathan. Thanks comments. for closing to Don back itpass will I that, With billion. 1.5 CAD almost by EBITDA annualized our increase to is estimated tonne $50 per Every prices. coal steelmaking fromcurrent generation EBITDA potential for significant we have Importantly, agencies. rating credit all four from ratings grade credit investment and 2030 to prior maturities loan significant is non loan The drawn. fully if million be $225 would share 22.5% our which of in July loan agreement term billion $1 a into new entered Antamina bil $1.8 drawn have we project, QB2 for the facility financing project limited recourse billion ourOf $2.5 27%. was ratio that 30, June at and 60% exceed cannot that ratio todebt capitalization net is a covenant financial only the fact, borrowi effect adverse material a general include not do and trigger, credit rating a include not do covenants, financial based flow orcash earnings any dohave not facilities Both in Q4 matures that billion facility $4 our on is available billion$3.5 facilities. credit revolving committed of $5 billion our on available amounts the and cash our current including billion 6.1 CAD of liquidity with current o maintained We’ve 19. slide on position financial to our turning nowAnd short and cash with quarter the ended quarterly our regular re in million 26 CAD and charges finance and interest in million 77 CAD We paid facility. credit revolving $4 billion our on million 337 CAD a net drew also we And quarter. the in million 272 of repayments net proceeds Debt COVID of a result as 2020 in Q2 activities stripping decreased to due primarily ago year a higher than was This operations. coal steelmaking at our production mil 175 CAD was stripping Capitalized capital. in sustaining million 203 CAD and project upgrade port Neptune the on million CAD 138 on QB2, million 666 CAD including growth capital and ref ago, a year million 300 CAD with compared increase a significant is which operations, from flow cash in million CAD 575 generated We 18. slide on are quarter the second during position cash in our changes Now the is which quarter, the in million CAD 339 was shareholders to attributable profit adjusted bottomline adjustments, minor other and After these

lion as of June 30 of which $224 million was drawn in the second quarter. second the in drawn was million $224 which of 30 ofas June lion www.CallStreet.com • • www.CallStreet.com TeckResources Ltd. 2024, and our $1 billion sidecar that matures in Q2 2022 remains undrawn. remains 2022 in Q2 matures that sidecar $1billion our and 2024, - based dividend of CAD 0.05 per share. After these and other minor items, we we items, minor other and After these share. per 0.05 CAD of dividend based

lecting higher commodity prices. We spent CAD 1 billion on sustaining on sustaining 1 billion CAD We spent prices. higher commodity lecting

Company▲

on our $2.5 billion project financing facility for QB2 were CAD CAD were for QB2 facility financing project billion $2.5 our on 212 - lion primarily related to the advancement of pits for future future pits for of advancement to the related primarily lion term investments of CAD 312 million. 312 of CAD investments term CAD 0.63 per share on a diluted basis. a diluted onshare per 0.63 CAD -

849 - increase in the quarterly index lag index in quarterly the increase recourse to us and matures in July in July matures to and us recourse Ticker▲ - 4070 TECK ur RACE21 technology and innovation innovation and technology RACE21 ur the on capitalize to globally companies itioned

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Jul. 27, 2021 Jul. 27, Date▲

corrected transcript you. to over operator, that With question. your will answer out who we sort while delay is a there if us bear with please So locations. other or home from lines us of most you, of Like many questions. your to answer happy be we’d that, with And our strategy. on deliver to experience and of skills mix thewith right team leadership a we have sust of standards highest the maintain to strive we time, the same at And and sustainability. safety, efficiency, productivity,

www.CallStreet.com • • www.CallStreet.com TeckResources Ltd. ainability and safety and operational excellence in everything we do. And And do. we everything in excellence operational and safety and ainability Company▲ 212 -

849 Ticker▲ - 4070 TECK

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are on phone phone are on

CallStreet Jul. 27, 2021 Jul. 27,

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corrected transcript QUESTION AND ANSWERQUESTION SECTION w space camp extra the added forward of the some you remind I’llAgain, just deploy. can we that people of amount maximum their be will it for sure, But before. planned had we what than be could ofbit luck, little a and effort good with And earlier. cited we had what count than head different be a slightly may that and frontpossible, work of every advantage pl that that And so ago. months four short three or just plan the made we since changed have that things of the all account into take that construction ment

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ioned the ioned the Red Conger Red Conger Red Conger Lindsay Don Orest Wowkodaw Wowkodaw Orest Orest Wowkodaw Wowkodaw Orest www.CallStreet.com • • www.CallStreet.com

TeckResources Ltd. multiple concentrate pipeline later. So that’s just one example of how our team has flexed flexed has team our how of example one just that’s So later. pipeline concentrate an will have the maximum employment levels possible that we can deploy, take take can deploy, we that possible levels employment maximum the have will an – – –

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line, well done. So the first part of your question, the answer is yes, yes, is answer the question, your of part So first the done. well line,

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Hi. Good morning. Nice to see the solid progress of QB2. of QB2. progress solid the to see Nice morning. Hi. Good Thanks. Thanks, Red. Just to clarify. So are you allowed allowed areyou So clarify. to Red. Just Thanks, Thanks. -

849 Good morning, Orest. Appreciate the questi the Appreciate Orest. morning, Good Here’s the way we should think about it. Don about think should we way the Here’s -

Okay. Thank you, Orest. And I see you’ve done it done you’ve AndIsee Orest. you, Thank Okay. looking things that the team has done. When we we When done. has team the that things looking Ticker▲ - 4070 TECK

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Red Conger Red Conger Red Conger Red Conger Red Conger Red Conger Matthew Murphy Murphy Matthew Murphy Matthew Wowkodaw Orest Wowkodaw Orest Wowkodaw Orest Greg Barnes Barnes Greg Murphy Matthew www.CallStreet.com • • www.CallStreet.com

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849 nk it’s going to be at completion. be toat going it’s nk Yeah. Thank you. I’m going to go back to you again, to youagain, back go to going you. I’m Thank Yeah. No. We’re We’re No. you provided we’ve that The forecast Orest. Look, Well, but here’s the way to think about it. What we’ve we’ve What it. about think toway the here’s but Well, project, entire for the progress total that’s So Yeah. of that share lion’s the Matthew, Yeah, Ticker▲ - 4070 TECK ve to achieve about 3% to 3.5% completion completion to 3.5% 3% about to achieve ve

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finally any guidance you can give us, Red, Red, us, give can you guidance any finally

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Q2 2021 Earnings Call Earnings 2021 Q2

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Don Lindsay Lindsay Don Lindsay Don Red Greg Barnes Barnes Greg Barnes Greg Lucas Pipes Pipes Lucas Barnes Greg Barnes Greg ut in the short term, when I look at your year at your I look when term, short the in ut www.CallStreet.com • • www.CallStreet.com which is a significant benefit. So those are strong positives that should help should that positives are strong So those benefit. is a significant which Conger Conger hort answer, I would say it’s cyclical. it’s say I would answer, hort TeckResources Ltd.

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849 ng head count, other work fronts that we can open up, up, open we can that fronts work other count, head ng Don, can I switch back to you? Just the pace of pace the Just to you? back switch I Don, can is the but what Red, unfair, a bit it’s maybe So Okay. Okay. Great. Thank you. Thank Great. Okay. it’s I know 2022. about not concerned too So you’re

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or do you have a pretty good line of sight to to sight line of good a pretty have do you or - date production figures, sales figures, it looks looks it figures, sales figures, production date

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CallStreet up up Jul. 27, 2021 Jul. 27, Date▲

corrected transcript while. aquite for happen going to it’s don’t think just we and dollars indu of size that on impact a material make totake would it investment kind of that and market tonne billion a 2 about it’s remember and globally produced of steel total volume itthat clear it’s pretty or three two reports research with orso year last in the bombarded been has us of each is while that wesay why theAnd reason les be there’ll that a view have So I well. as Australia in same the seen and we’ve down it turned was on, but and so years six for work hard the all done they’ve though even proposal a project where, recently, i permitting also but capital to provide willingness providers’ capital not just and newin supply investment on areconstraints there that clear pretty It’s demand. and supply the on 10 years next the in happen goingto well what’s we say then And be would it terms, pricing In today’s or not. number adjusted inflation an using you’re whether on depending in the is actually price average the And or 12years? 10 last the in been metal hot production, China mines domestic both with issues own theirsupply wh strong, really market the to see we’re continuing

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Don Lindsay Lindsay Don Foley Réal Lindsay Don Sheremeta Robin Lindsay Don Lucas Pipes Pipes Lucas . d www.CallStreet.com • • www.CallStreet.com emand is extremely strong as well. Steel prices are running at record levels. Steel Steel levels. at record arerunning prices Steel well. as strong is extremely emand pe from an operational point of view. It’s really just a matter of what kind of logistics logistics of kind what of a matter just really It’s of view. point operational an from pe $ 180 TeckResources Ltd.

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849 we ha we Yeah. I’m very happy to do that, Don. So, yeah, Lucas, Lucas, So, yeah, Don. do happy that, to very I’m Yeah.

Thanks, Robin. And Réal, do you want to add any any add to want do you Réal, And Robin. Thanks, Foley both ask Réal to going I’m question. a good It’s Yeah. So we always start an start always we So Yeah. - Ticker▲ pandemic levels. So we’re continuing to see strong strong to see continuing So we’re levels. pandemic - 4070 ssues. And we’ve seen it right here in Canada Canada in here it right seen Andwe’ve ssues. your all for you helpful. Thank very Very, TECK ve to take that in that take to ve and and onger Sure. And just to reiterate that the wildfires are the wildfires that to reiterate just And Sure. ether it’s demand in China can be can China in demand it’s ether

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Q2 2021 Earnings Call Earnings 2021 Q2

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they have have they Jul. 27, 2021 Jul. 27, , Date▲

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e guidance of 25 million to 26 million tonnes. So we did reduce the guidance by about 0.5 million 0.5 about by guidance the did reduce we So tonnes. million 26 to million of 25 e guidance

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Robin Sheremeta Sheremeta Robin Lindsay Don Lindsay Don Carlos De Alba Alba De Carlos Pipes Lucas n the cost front there but related to the water treatment, so we saw an increase of CAD 100 100 of CAD increase an saw we so treatment, water the to but related there front cost n the

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849 >: >: Thank you. Thank Okay. I think we’ll go to the first two parts of the ofparts the first two the go to we’ll I think Okay. Ticker▲

- price. And I think we can collect the cash now and and now cash the cancollect we I think And price. 4070 Very helpful. Really appreciate it and best of luck. of best and it appreciate Really helpful. Very TECK tility in commodity markets. markets. in commodity tility Thanks, Carlos. Just on the first question on first the Just Carlos. Thanks, l business, on Neptune, to what extent is extent what to Neptune, on business, l

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CallStreet Jul. 27, 2021 Jul. 27,

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Robin Sheremet Robin Lindsay Don Foley Réal Lindsay Don Foley Réal Abhi Agarwal Agarwal Abhi Alba De Carlos Abhi Agarwal Agarwal Abhi Agarwal Abhi www.CallStreet.com • • www.CallStreet.com –

the second part of your question was around quantifying RACE21 benefits? RACE21 quantifying around was of question your part second the e’re paying at other ports. other at paying e’re TeckResources Ltd. color. – –

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on? And regarding the RACE21 CapEx uplift, is it possible for possible is ituplift, CapEx RACE21 the regarding And on? 212 Morning. Morning all. Thanks a lot for the call. I have a a have I call. for the lot a all. Thanks Morning Morning. Yes. the also on is one next aThe Réal. lot, Thanks Got it. -