Q1 2019 Earnings Call Earnings 2019 Q1

corrected transcript Resources Ltd. Resources Teck Analysis, Strategic and Relations Investor President, Vice Senior Phillips, H. Fraser Participants Other Participants Corporate MANAGEMENT DISCUSSION SECTION MANAGEMENT DISCUSSION PARTICIPANTS forward any update to the obligation assume does not Teck vary. to results actual maycause uncertainties business. forward contains presentation 2. This on slide statements forward regarding caution the your to attention draw to like would I webegin, Before call. conference results 2019 quarter you joini for Thank everyone. Good morning, Manish. very much, Thanks ahead. go Please Analysis. Strategic and Relations Investor Sen Phillips, Fraser Mr. to over call conference the to turn like now I would question Call. Earnings 2019 Resources Q1 to Teck by. you Welcome standing thank for gentlemen, and Ladies Operator: Przybylowski Jackie Brian MacArthur Pipes Lucas N. Schier Scott Cabrera Oscar Orest Wowkodaw Andres E. Dale Chris Terry Barnes Greg Woodwort Curt Korn Matthew Resource Teck Services, Christopher Nicholas Alexander A. Stonkus Andrew B.Sheremeta Robin Golding Andrew Réal Foley A. Millos Ronald R.Lindsay Donald Ltd. Resources Phillips H. Fraser

www.CallStreet.com • • www.CallStreet.com - looking statement. looking - and

This slide describes the assumptions underlying those statements. Various risks and risks Various statements. those underlying assumptions the slidedescribes This

Teck ResourcesLtd. –

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answer session. This conference call is being recorded on Tuesday, April 23, 2019. 23, April Tuesday, on being recorded is call conference This session. answer – President Vice

– Analyst, Deutsche Bank Securities, Inc. Securities, Bank Deutsche Analyst, At this time, all participants are in listen in are all participants time, At this

– Analyst, Clarksons Platou Securities, Inc. Securities, Platou Clarksons Analyst,

Inc. Securities, TD Analyst, – h – –

LLC & Co. Sachs Goldman Analyst,

Analyst, CIBC World Markets, Inc. Markets, CIBC Analyst, World – – – – Senior V Senior Analyst, B. Riley FBR, Inc. B. FBR, Riley Analyst,

–

Senior Vice President Vice Senior Chief Financial Officer & Senior VP & Senior Officer Financial Chief A Analyst, Credit Suisse Securities (USA) LLC (USA) Securities Suisse Credit Analyst,

–

Senior Vice President, Investor Relations and Strategic Analysis, Teck Teck Analysis, Strategic and Relations Investor President, Vice Senior – Analyst, Scotiabank Analyst,

nalyst, Raymond James Ltd. James Raymond nalyst,

– President –

Senior Vice President Vice Senior

Sen Analyst, BMO Capital Markets (Canada) Markets Capital BMO Analyst, s Ltd. s

ice President ice ior Vice President Vice ior - Coal Coal

Company▲

and and Base Metals Base and

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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

- - Corporate Development, Teck Resources Ltd. Teck Development, Corporate

849

- Marketing and Logistics, Teck Resources Ltd. Resources Teck Logistics, and Marketing Ticker▲ Coal Operations, Teck Resources Resources Ltd. Teck Operations, Coal - 4070 TECK

, Teck Resources Ltd. Resources , Teck

only mode. Later, we will conduct a will conduct we Later, only mode.

- • Finance, Teck Resources Ltd. Resources Teck Finance,

Q1 2019 Earnings Call Earnings 2019 Q1

Event Type▲ ng us for Teck’s first Teck’s for us ng

2001 ior Vice President, President, Vice ior

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CallStreet

Apr. 23, 2019 Apr. 23,

Date▲

1 corrected transcript Donald R. Lindsay, President and President R.Lindsay, Donald di fully on a per share 0.99 CAD bewould that and a share 1 or CAD million 568 CAD was to shareholders attributable profit lineadjusted bottom and quarter in the billion CADwas 1.3 adjusted EBITDA items, amortization and depreciation before profit gross and billion 3.1 CAD were revenues quarter, first the 4, in slide on results our financial to Turning project. the QB2 of the development billion] CAD 8.7 CAD approximately with position financial strong very a in we remain Finally, date. to spent been has million CAD348 far, C to apply management directed the board November, Last quarter. first the in in dividends million 28 CAD paid also we and shares B class of million 180 CAD purchased We to shareholders. cash significant continueto return We 1.1 CAD cancelled now have we a As result, quarter. the in agencies by grade four investment to upgraded be to arepleased We already. quarter in first the million 13 to CAD amounted revenue in increase The annually. million 90 CAD around by increase payment royalty the per tonne, $200 approximately of coal prices steelmaking benchmark At 11. February effective production, coal Greenhills of 20% share their on pay they royaltythat quarter in first Also the the at likely that’s and to shareholders returns cash additional will consider board the signing, the April. Following of end bythe agreement loan for financing project on the 2020. late untilWork under to just the project for requirements equity our reduced dramatically plan and financing transaction QB2 partnering The the of remainder the over expected is contribution million $307 a further and project to the million contribution wi M Sumitomo with transaction partnership the QB2 completed quarter. We the during milestones important of a number weachieved time, same At the guidance. 2019 our to no changes wi severe weather; challenging fairly some despite quarter in the first performance operating a delivered solid We questions. any answer to happy wouldbe our senior management of members will color. We additional some will provide who our CFO, Millos, Ron by followed I’ll be and quarter results our first highlights from with 3 some slide begin on will I everyone. morning, good you,and Fraser Thank CEO. President and our Lindsay, Don over to call turn the willthat, I With appendix. the in measures these regarding reconciliations and explanations find va use we that out to point like also I would

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refer to collectively as Sumitomo. And upon closing, Sumitomo made a CAD 1.3 billion or $966 or $966 billion 1.3 a CAD made Sumitomo closing, upon And Sumitomo. as tocollectively refer www.CallStreet.com • • www.CallStreet.com Teck ResourcesLtd. in liquidity, includi liquidity, in

year. nter weather which affected a number of our operations and as a result, we have a result, as and our operations of number a which affected weather nter luted basis. luted

, we reached agreement with Posco Canada to substantially increase the the increase substantially to Canada Posco with agreement reached we ,

conclude with a Q&A session where Ron and I and several additional additional several I and and where Ron session with Q&A a conclude

$ 700 million excluding escalation and with no cash required from Teck Teck from required cash with no and escalation excluding million 700

billion in letters of credit. credit. of letters in billion Company▲

Chief Executiv Chief AD 400 million to the purchase and cancellation of shares and so shares of cancellation and purchase the to million 400 AD

ng CAD 2.5 billion in cash, CAD 1.3 billion of which is in Chile for for which isChile in of billion 1.3 CAD cash, in billion 2.5 ng CAD

212 -

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e Officer 4070 the toexpect sign we and well progressing is QB2 TECK was CAD 1.4 billion. After adjusting for unusual unusual for adjusting After billion. CADwas 1.4 etal Mining and Sumitomo Corporation, what we what Corporation, Sumitomo and Mining etal - GAAP measures in this presentation. You can You can in presentation. this measures GAAP

at the at the Q1 2019 Earnings Call Earnings 2019 Q1 end of May. of end Event Type▲

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billion

CallStreet [ corrected: corrected: will Apr. 23, 2019 Apr. 23, Date▲

corrected transcript year.last f the in per pound by reduced in resulted moly sales lower with significantly and combined prices volumes zinc Lower sales volumes. year p ago, period same the than 9%higher that’s by before cost cash total Our plans. mine respective their in anticipated was which Valley Highland and de Andacollo at Carmen ore grades copper lower to due year primarily ago the with compared modestly down was production Copper prices. commodity lower to due primarily year that’s ago, with compared million 132 CAD by decreased ou quarter, in first the Overall consumption. of days 11.9 of average 25 estimated is belowthe that and consumption global of bedays to7.2 now estimated are stocks exchange copper global reported view.Total our in strong remain fundamentals Copper issues. production smelter and of mine number adue to $3 above trade did 2018, price the quarter of the first 11% from $2 averaged the c 7. For on slide summarized are results unit,our Q1 business our copper to Turning tonnes. 6.6 million to tonnes 6.4 million approximately of sales quarter second expect we Lookingforward, environment. pricing the current captur order to in costs incur higher to decision deliberate our decision, our reflects This anticipated. as 2018 Q1 to quarter relative first the in increased costs Operating capacity. processing improv through production Mountain’s Coal in the reduction than offset more has Elkview to closure, moving Mountain Coal with Now, the quarter. of half latter the Signif year.last quarter same to the compared lower tonnes 100,000 aroundwas production quarterFirst million. CAD 13 around by revenue quarter our first increased and 11th on February intoeffect came production s The prices. support to continue issues while supply grow, to will continue coal steelmaking for demand are that indications sound, remaining world economies and steel pricing perWith tonne. above $200 remain price coal spot Steelmaking demand. solid reflecting million tonnes, 6.2 at quarter the range for our guidance of midpoint wereat the Sales in coal. flow cash significant continueto generate We highlights some through now run I will quarter. m CAD 51 adjust Primary 5. areon slide adjustments earnings quarter’s the of Details

icant periods of cold weather negatively affected the supply chain but we saw improvement in weimprovement saw but chain the supply affected negatively weather cold of periods icant ubstantial increase in the royalty paid by Posco by paid the royalty in increase ubstantial

www.CallStreet.com • • www.CallStreet.com

illion gain on our debt prepayment option and other than that, it was a fairly clean clean a was fairly it that, than other and option prepayment debt our illion on gain

Teck ResourcesLtd. . 82 per pound in the quarter essentially unchanged from the fourth quarter and down down and thequarter fourth from unchanged essentially quarter the in per pound 82

irst quarter were higher than the $1.15 per pound achieved in the first quarter of quarter of first the in achieved per pound $1.15 the than higher were quarter irst

- product credits and as a result, cash costs after by after costs cash a result, as and credits product

- r gross profit before depreciation and amortization in copper in amortization and depreciation before profit gross r product credits in the first quarter were already $1.85 per pound, pound, per $1.85 already were quarter first the in credits product Company▲ 212 ed plant performance and the decision to utilize inter utilize to decision the and performance ed plant by business units starting with steelmaking coal on slide 6. slide coal on steelmaking with starting units business by

849 Ticker▲ - 4070 TECK rimarily due to the effect of lower production production lower of effect the to due rimarily

Canada on their 20% share of Greenhills of share 20% their on Canada

•

per pound during the quarter quarter the during pound per e additional margin, given given margin, e additional Event Type▲ 2001 - product credits of $1.55 $1.55 of credits product ment this quarter was a was this quarter ment - 2019

CallStreet - year opper price price opper - Apr. 23, 2019 Apr. 23, site s Date▲

corrected transcript curtailment production Alberta of the Government of the extension production. With lower by the affected were also Q1 in bitumen of barrel per 29.42 CAD of costs Operating day Q1. for per barrels 30,878 was production bitumen of share Our maintenance. unplanned to due also and Alberta, of Government by the imposed limits production the to due capacity design than lower was production Hills’Fort th curtailments Alberta’s of the Government to primarily due production lower by affected being is despite thisAnd 22 million. CAD at positive unitwas our energybusiness from amortization and depreciation before profit gross Overall, per barrel $42.12 of price average realized higher our in is reflected This 2018. in to Q4 compared oil crude prices benchmark global in increase an and Select Canadian for Western differentials blend heavy Canadian on slide aresummarized results unit business energy Our season. shipping the to due pattern seasonal the normal reflects that and in Q2 85,000 tonnes to 80,000 of sales zinc contain Red Dog we expect forward, Looking a Commissioning schedule. of ahead and budget under completed was Trail 2 Acidat Plant the Number of construction The 2019. of half second the in Operations on Trail impact positive a to have expected are and increased recently have charges treatment Z maintenance. byunplanned affected negatively were 2018, Q4 results the from improved Operations Trail of where profit towe Trail get you as see as around comes goes around What charges. refining and low treatment historically to due primarily from pound per $0.11 down was zinc for mined unitcosts cash our net the side, On cost tonnes. 131,000 in range our guidance in above and came unaffected were prod The production. impacted which road port the weather closed winter severe very Dog, At Red prices. zinc lower to year primarily due with ago the compared 91 million by CAD qu in first the Overall, 25 the versus 25 wellbelow the is that Shanghai the and LME levels. low historically to down drawn to be continue inventories LME as quarter the throughout steadily increased prices veryZinc tight. remains Zinc market results financial unit zinc business Our respectively. 82%and complete, 91% 85%, are currently activities procurement and contracting Engineering, mine existing the utilizing underway, arefully activities Earthworks contracts. major award and upactivities field ramp to we continued at AndQB2, start we expect and budget under and schedule of ahead progressing ball additional the of installation 2019.of The remainder the through improve gradually to are expected Valley Highland at grades copper though, forward Looking

uction recovery plan is in place and we expect to make it up in the remainder of the year. Sales Sales year. the of it remainder up the in make to weexpect and in place is plan recovery uction www.CallStreet.com • • www.CallStreet.com

Teck ResourcesLtd.

- year average of 22.3 days, that’s a tight market. market. tight a that’s days, 22.3 of yearaverage

are reported in our copper business unit. unit. business our in copper are reported arter, our gross profit before depreciation and amortization of zinc decreased zinc decreased of amortization and depreciation before profit our gross arter,

results are summarized on slide 8. As a reminder, Antamina zinc related zinc related Antamina a reminder, 8. As slide on aresummarized results

exchanges are now estimated at just 4.1 days of global consumption and and consumption global of days 4.1 at just estimated now are exchanges day which was within our guidance range of 30,000 to 32,000 barrels per 32,000 barrels to 30,000 of range guidance within our was which day - year average of 22.3 days, once again, 4.1 days of global consumption consumption global of days 4.1 again, once days, 22.3 of average year of blended bitumen. blended bitumen. of nd ramp Company▲ - up is in progress right now. up progress is in 212

849 at came into effect on January 1, 2019. on 1, January intoeffect at came

Ticker▲ - 4070 TECK

fleet and third and fleet

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Q1 2019 Earnings Call Earnings 2019 Q1

Reported zinc stocks held on the held the on zinc stocks Reported

mill at Highland Valley is Valley Highland at mill - party contractors. contractors. party - up in Q2. up Event Type▲ 2001

2019

s through June, June, through s

CallStreet

Q1 2018,Q1 Apr. 23, 2019 Apr. 23, inc Date▲

corrected transcript Donald R. Lindsay, President and President R.Lindsay, Donald VP Senior & Officer A. Financial Chief Millos, Ronald Analyst and Investor recent at our about that I talked a theme to revisit like would I wewrap up, Ron. Before Thanks, comments. closing overDon for to back call the now turn I’llAnd Hills. at Fort agreements transportation the inand Chile agreements purchase our power we’ve cancel a as result, and O to2024 prior maturities debt haveno significant this quarter. We 2020. until late Teck from is required no cash and escalation excludes that million $693 to just project on the requirements equity our reduces dramatically plan and financing transaction QB2 partnering t of development the for Chile is in billion CAD 1.3 which of cash, in billion 2.5 CAD includes that and liquidity in billion 8.7 it is CAD a was mistake, that 9.1 million CAD Don mentioned billion; 8.7 CAD is currently liquidity flow.Our cash operating stron generate to we continue slide 11, on position our financial of the summary to Turning billion. 2.5 CAD approximately now is balance cash current short and with cash quarter we the ended items, otherand these after And statements. financial the 15 to in Note and MD&A in our available is rules the new of impact the on information Further sheet. our balance on recorded being liabilities 1, that January effective we adopted which 16 IFRS rules theaccounting new of the adoption of impact the includes this and liabilities lease repay to million 31 CAD and charges financing and interest in million paid 110 CAD We our quarter of wayby million 28 CAD paying and B Class shares of million CAD 180 back buying through to shareholders million 208 returned CAD million. were 199 We CAD costs stripping and capitalized capital projects ope flowfrom cash in million 520 CAD generated We 2019. of remainder the over million $307 further a contribute to expected they’re mentioned, Don as that note and contributions and equity the two Sumi’s from two in appears and that project QB2 the to 1.3 billion or CAD million contributed $966 Sumitomo transaction, partnering the of closing on the mentioned Don as So here. 10 slide on balance our cash in changes of with summary the Don. I’ll start Thanks results. our financial comments on some for Ron Millos it to over that, pass I’ll With bitumen. of barrels million to 14 barrels 12 million of range guidance our of end to low mid the in to be expect we now curtailments, the of extension the with though our guidance to no change year, is there fullyear. the For the for bitumen of barrel yea this of quarter tothe first be similar to costs operating unit quarter second we expect the production, lower With day. per 32,000 barrels 30,000to of range the in be to quarter second the in production bitumen of our share we expect

f course, we’re pleased to be upgraded to investment grade by four agencies in the first quarter quarter in first the agencies by grade four investment to be upgraded to we’re course, pleased f

We are progressing the project finan project are progressing the We www.CallStreet.com • • www.CallStreet.com Teck ResourcesLtd. r and to remain within our original guidance range of CAD 26 to CAD 29 per per CAD 29 to 26 CAD of range guidance our original within remain to and r Day that Day ly CAD 0.05 base dividend. base 0.05 ly CAD

ed CAD 1.1 billion on letters of credit that were providing security for for security wereproviding credit that of letters on billion 1.1 CAD ed

was 2018 was truly a transformational year for Teck and the and Teck year for a transformational was truly was 2018 Company▲

Chief Executiv Chief resulted in approximately CAD 347 million of additional lease lease additional of 347 million CAD in approximately resulted 212 -

cing for QB2 and expect to sign the loan agreement later agreement loan the to sign expect and QB2 for cing 849 Ticker▲ - e Officer - 4070

term investments of about CAD 2.4 billion and our our and billion 2.4 CAD about of investments term TECK he QB2 project. QB2 project. he -

rations and we spent CAD 482 million on on million 482 CAD we spent and rations Finance, Teck Resources Teck Finance, lines on the cash flow statement as advances advances as statement flow the cash on lines

Q1 2019 Earnings Call Earnings 2019 Q1 .

Event Type▲ 2001

annual production production annual -

2019

Ltd.

CallStreet

g Apr. 23, 2019 Apr. 23,

minor minor Date▲

corrected transcript operator. who’s out we sort as a question you ask when pause brief be a may there So different locations. from in arecalling members team management our of some that say and I should your questions answer to happy be we’d that, with And compell generate and our plate on have already is well Teck we believe overall, So, the company. across coming got creation value We’ve QB3. with road down the further so more even and in construction already which is QB2 through ca additional potential including on to execute we’re poised that catalysts value of have number a We future. the for build to foundation solid incredibly on ourselves transform

sh returns to shareholders, possible further reductions in our notes outstanding, growth certainly certainly growth outstanding, our notes in reductions further possible to shareholders, returns sh www.CallStreet.com • • www.CallStreet.com

ation has continued into 2019. We achieved significant major milestones and we now find find we now and milestones major significant achieved 2019. into We ation continued has Teck ResourcesLtd.

Company▲

from Project Satellite and Satellite Project from - positioned to take advantage of the many opportunities that we that opportunities the many of advantage to take positioned 212 -

849 Ticker▲ going to be answering. Thank you back to you to you back Thank answering. be to going - ing value for shareholders. shareholders. for value ing 4070 TECK

Q1 2019 Earnings Call Earnings 2019 Q1 Event Type▲ 2001

- 2019 innovation innovation

CallStreet Apr. 23, 2019 Apr. 23, Date▲

corrected transcript QUESTION ANDANSWER SECTION QUESTION you look when assets your copper around specifically optimization, portfolio around is just question

– – – – – – l

aveco Don Lindsay Lindsay Don Lindsay Don Matt Korn Korn Matt Curt Woodwort Curt Korn Matt Korn Matt d a lot of approaches. Most people don’t have anything to develop. I mean we see I mean develop. to anything have don’t Mostpeople approaches. d aof lot www.CallStreet.com • • www.CallStreet.com

Teck ResourcesLtd. under development under – – –

Goldman Sachs & Co. LLC>: LLC>: &Co. Sachs Goldman LLC>: &Co. Sachs Goldman Gol – –

and see where we get to. But I couldn’t signal one way or the other on this on other or the way one signal I But couldn’t to. we get where and see Teck Resources Ltd.>: Ltd.>: Resources Teck Ltd.>: Resources Teck h dman Sachs & Co. LLC>: LLC>: &Co. Sachs dman

– icit that many have been calling for, for some time. But that case was not not was But case time. that some for for, calling been have that icit many

– Credit Suisse Securities (USA) LLC>: LLC>: (USA) Securities Credit Suisse

and then balancing the background in background the balancing and then Company▲ , b

ut even those those ut even

212 tural deficit starts to really, really get some traction and we’re we’re and traction get some toreally really, starts deficit tural uple of months? of uple Redcap -

849

Well, it’s a decision that will be discussed at the at the discussed will be that a it’s decision Well, It’s a good question. I would say that there was a there would that say I question. a good It’s Ticker▲ e our next question from Curt from Woodwort question e our next - will d 4070 TECK , interesting, it’s not that big that not it’s interesting,

Hello. Good day, everyone. Thanks for taking my taking for Thanks everyone. day, Good Hello. Hi, Thank you much. very Thank Hi, All right. Got it. Let me circle over to copper, you tocopper, circleover me Let it. Got All right. pretty well for that. well for pretty you know you’ve been very clear on yourview on clear you’vevery been you know take to 2021, 2022 or longer in some cases to cases some in longer to or 2021,2022 take rs. I’m interested in your take there? your take in interested I’m rs.

•

China where I think you’re seeing I think where China Hey, good morning. First First morning. good Hey,

Analyst Day, you’ve got a you’vegot Day, Analyst Event Type▲ 2001

of a of

2019 decision in terms terms in decision

this time around this time . There’s a . There’s

CallStreet h

of Credit of QB2 QB2 Apr. 23, 2019 Apr. 23, and and o Date▲

corrected transcript 8 mi to selling close were we in 2013, to the peak you back If go lot. a China to exposure our we’ve reduced China, as Goldcorp a lot interest of of near term the are in that three we have Soyear. this of half second the in also finished is Study Feasibility Nicolás San then and now about is finished study feasibility whose Zafranal are two up first coming The do. we might what door it them letting cash for sell actually either value, of realizing in terms them with w flexibilityon a more lot us you give and like if notch a down total, in eight have efficiency D Analyst the on at time of bit fair spent a

he success you had at QB2 as well as other copper transactions, it seems to suggest that the the to suggestthat it seems transactions, copper other well as you QB2 as at had success he – – – –

Réal Foley Foley Réal Lindsay Don Lindsay Don Curt Woodwort Curt te a positive environment, add to all this that capital is clearly being rationed to coal and to coal being rationed is clearly capital that addall this to environment, a positive te www.CallStreet.com • • www.CallStreet.com

I mean, in the latter part of this year or into early next year, we’d likely enter into some into some enter likely we’dyear, earlynext year into or this part of latter the in I mean, year,pre the the of end at the . And so what we do with those two, it really depends. We’re in no rush. It’s not as if we if as It’s not in rush. no depends. it We’re really two, with dothose we what so And .

that is associated with with is associated that Teck ResourcesLtd. is really helping to provide stability and then globally, we’re seeing good growth in steel steel in growth good we’re seeing globally, then and stability provide to is really helping ot of sort of speculation around what’s going on in China with respect to port to port with respect China in going on what’s around speculation of sort of ot

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Teck Resources Ltd.>: Ltd.>: Resources Teck – – llion tonnes of our production into China. Last year, we sold less than 3 million 3 million than less we sold year, China. Last into our production of tonnes llion

So we see a very good outlook for the next six to 12 months from that part of from 12 months to six the next for outlook good very we seea So Teck Resources Ltd.>: Ltd.>: Resources Teck Ltd.>: Resources Teck - h to -

up, with regards to the coking coal market, the China import data has been been has data import the China coal market, coking the to with regards up, amatically, the transparency in the market because of the change in pricing pricing in change the of because the market in transparency the amatically, – - date. The March data was up 53%. I think that came out this morning, so so outmorning, this that came think 53%. I was up data March The date.

Credit Suisse Securit Credit Suisse to other partner to other Company▲ building that after QB2 and that moved all the other projects other all the moved that and QB2 after that building

[inflation 212 -

feasibility study. I should say that NU, maybe NuevaUnión NuevaUnión maybe NU, that say I should study. feasibility ay. So QB3 has become our best project, our project, best become has So QB3 ay. - -

849 adjusted] s, NU, of course, will continue on with on will continue course, of NU, s, All right. Thanks Don. So the first point, I guess about about point, Iguess first the Don. So Thanks All right. Right. Okay, now this question is something we is something question this now Okay, Right. Okay, I’l Okay, Ticker▲ -

a quiet dialogue as to what might be possible but but be possible what might toas dialogue quiet a 4070 ies (USA) LLC>: LLC>: (USA) ies TECK

loosening monetary policy and stimulus is only stimulus and policy monetary loosening

. We’re holding very nicely and steadily. The The steadily. and nicely very holding We’re . No equity obligations on QB2 either, so we’re so either, QB2 on obligations equity No

l make a quick comment then I’ll turn it over thenturn I’ll comment a quick make l

of ports and so on, over to you, on, to over so and ports of or bringing on a partner a on or bringing Thanks. That makes a lot of That makes Thanks. measure? Event Type▲ 2001

- An hat we might do we might hat 2019 NuevaUnión NuevaUnión d then, I guess, I guess, d then,

wi th

CallStreet

the capital capital the

and and no and 2019 Apr. 23,

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corrected transcript

– – – – – – – – – – –

Don Lindsay Lindsay Don Lindsay Don Andrew Golding Andrew Golding Andrew Golding Andrew Golding Greg Barnes Barnes Greg Barnes Greg Barnes Greg Barnes Greg Barnes Greg Woodwort Curt www.CallStreet.com • • www.CallStreet.com stion about the port restrictions, there is no official policy that we’re aware of in China but in China of we’re aware that policy official is no there restrictions, port the about stion Teck ResourcesLtd. r two thirds of the steel production in China is located on the coast to have access to access have to coast the on is located China in theproduction steel of twor thirds - to - iting news for our coal division for sure. At the end of the day, Teck owns coal, the Teck day, the of end the At sure. for ourcoal division for news iting date at the end of February, they were up by about 25%. about up by were they February, of end at the date

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Teck Resources Ltd.>: Ltd.>: Resources Teck Ltd.>: Resources Teck aw to the end of February, February imports from Australia were down around around down were Australia from imports February February, of the end to aw TD Securities, Inc.>: Inc.>: Securities, TD Inc.>: Securities, TD TD Securities, Inc.>: Inc.>: Securities, TD Inc.>: Securities, TD Securities, TD h

– – – –

Teck Reso Teck Ltd.>: Resources Teck Ltd.>: Resources Teck Credit Suisse Securities (USA) LLC>: LLC>: (USA) Securities Credit Suisse Company▲ - urces Ltd.>: Ltd.>: urces Inc.>: Inc.>: year e 212

- e. I mean, if you think about it effectively what’s what’s effectivelyit about you think if e. I mean,

849 xtension period at the moment where there was a was wherethere moment at the period xtension Okay. D to the happens what wondering just you. I’m Thank So after 2022, you renegotiate the deal again or it’s... or again deal the you renegotiate 2022, after So again? ityou resets when between Agreed oes it reset every three years then? Is that how the how that the Is years then? every three reset it oes We’ll have a discussion with Posco at that time and it and at time that Posco with a discussion have We’ll Andrew go ahead. Andrew Ticker▲ - 4070 TECK

That’s correct. Yes. correct. That’s Greg. that sorry, I missed I am 2022 not from here, Golding Andrew It’s a

million tonnes of coal added to our business our business to added coal of tonnes million

which started in the north had spread north spread had in the which started Q1 2019 Earnings Call Earnings 2019 Q1

- grade hard cok grade

Okay. Thank Thank Okay. 31, 2022?

Event Type▲ -

2001 to

- date domestic raw domestic date

- you very much. 2019

ing coal for the for coal ing

CallStreet Apr. 23, 2019 Apr. 23,

Date▲

corrected transcript h we clearly is that already said I have what and to say more much there’s not sure I’m projects, theOn copper probably So that’s promoters. good they’re and case good ever actually other projects these of some whether see to watch we’ll But proposing. we people see the others of that some project economic It is a more term. near the in Quintette nofor plans There’s at Quintette. we look the part of yes,is that But a in sense. question your own answered

– – – – – –

Don Lindsay Lindsay Don Lindsay Don Lindsay Don Greg Barnes Barnes Greg Chris Terry Terry Chris Barnes Greg www.CallStreet.com • • www.CallStreet.com

Teck ResourcesLtd. ave added a lot of value since we launched Project Satellite, is it almost three years I three it almost is Satellite, Project we launched value of since a lot added ave

talking about, if it’s a swing producer? it’s if a swing about, talking and it may then impact the coal price. I’m just interested in your thoughts on that. on that. your thoughts in interested just I’m the price. coal impact then itand may –

– – – – – Deutsche Bank Securities, Inc.>: Inc.>: Securities, Bank Deutsche

Teck Resources Ltd.>: Ltd.>: Resources Teck Teck Resources Ltd.>: Ltd.>: Resources Teck Teck Resources Ltd.>: Ltd.>: Resources Teck TD Securitie TD Inc.>: Securities, TD hether it’d be you, Greg, or any of the other analysts on the line, have much much line, have on the theanalysts other of oryou, any Greg, it’d be hether be on MacKenzie Redcap. It’s in the grand scheme of things, it’s not that that not it’s things, of scheme in grand the It’s Redcap. on MacKenzie be

do get up and running. Some of them won’t even though they make a make won’t they though of even them Some running. and doup get y, balancing those kind of things, longer term sustainability factors. sustainability factors. term longer things, of kind y, those balancing Company▲ le bit on the earlier question around the different projects in your in projects different the around question earlier the on bit le s, Inc.>: s, Inc.>: 212 -

849 Okay. Okay. Got you. Just Don, can you talk a bitlittle you talk can Don, you. Just Got Okay. Okay. Okay. That’s great. Thanks Don. Thanks great. That’s Okay. We haven’t disclosed those numbers at this stage, numbers haven’t those disclosed We Well, during the second or first, I think you almost you almost I think orfirst, second during the Well, They are large customer, very important customer. If If customer. important very customer, large are They Ticker▲ - 4070 TECK e comments on MacKenzie Redcap and that that and Redcap on MacKenzie e comments ue over volume and you’ve heard me over the me you’veheard and volume over ue

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