(TECK) Q1 2021 Earnings Call

corrected transcript Resources Ltd. Resources 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, and to results actual maycause and uncertainties risks Various statements. busines our regarding statements forward regarding caution the your to attention to draw would like I webegin, Before call. conference results 2021 you jo for Thank everyone. morning, Kate. Good very much, Thanks go ahead. Please Analysis. Strategic to turn like now I would 2021. April 28, question a will conduct Conferen Release Earnings 2021 Quarter First to Teck’s by. you Welcome standing thank for gentlemen, and Ladies Operator: Brian MacArthur Murphy Matthew Pipes Lucas N. Tanners Beth Timna Adams Bryce Chieng Emily Przybylowski Jackie Barnes Greg Orest Wowkodaw C.Rozee Peter B.Sheremeta Robin Ltd. Resources Bharmal Shehzad Réal Foley Ltd. Resources Teck Services, Christopher Nicholas Alexander Conger Milton Harry J R.Lindsay Donald Ltd. Resources Phillips H. Fraser

onathan Price onathan www.CallStreet.com • • www.CallStreet.com

Teck ResourcesLtd. –

Senior Vice President Vice Senior –

– –

Inc. Securities, TD Analyst,

– – Analyst, Goldman Sachs & Co. LLC & Co. Sachs Goldman Analyst, – Analyst, CIBC World Markets, Inc. Markets, CIBC Analyst, World -

– Senior Vice President Vice Senior looking statements on slide 2. This presentation contains forward contains presentation 2. This on slide statements looking – Analyst, B. Riley Securities, Inc. Securities, B. Riley Analyst, Senior Vice President & Chief Financial Officer, Teck Resources Ltd. Teck Officer, Financial & Chief President Vice Senior

–

– –

Analyst, Raymond James Ltd. James Raymond Analyst,

– Analyst, BarAnalyst,

Senior Vice President Vice Senior Analyst, Scotiabank Analyst,

Senior Vice President, Base Metals, North America and Peru, Teck Teck Peru, and America North Metals, Base President, Vice Senior

– President, Chief Executive Officer & Director, Teck Resources Ltd. Teck & Director, Officer Executive Chief President, – – – -

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Senior Vice Presi Vice Senior Analyst, BofA Securities, Inc. Securities, BofA Analyst, Ltd. Resources Teck Officer, Operating Chief & President Vice Executive Analyst, BMO Capi BMO Analyst, - ce Call. At this time, all participants are in listen in are allparticipants time, At this Call. ce answer session. This conference call is being recorded on Wednesday, on recorded Wednesday, is being call conference This session. answer

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Q1 2021 Earnings Call Earnings 2021 Q1

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CallStreet

Apr. 28, 2021 Apr. 28,

Date▲

1 corrected transcript Donald R. Lindsay, President, Chief President, R.Lindsay, Donald COVID of wave current the through in effectively efforts managing team’s project the of a reflection are successes These last month. the over records weekly new hitting been we have In fact, quarter. o pace seeingthe have been April. point in We halfway the surpassed progress project 6. Overall slide on QB2 project our on update an to Turning Andacollo. de at Carmen volumes lower production well as as Antamina higherat profitability resulting from expens royalty and participation workers’ higher to due is primarily costs Increasing guidance. with linein but year ago, a per pound 1.28 US$ from up quarter, the in per pound 1.38 US$ were QB and de Andacollo Carmen at by production lower offset Antamina, and Copper Valley at Highland production higher with year ago toa was similar Production prices. copper higher substantially year reflecting last period incr 205% a with Q1 a had strong unit business copper Our 5. slide on with copper starting unit business by quarter our first of highlights through now run I will minutes. a few in detail just more in results Canad and zinc, Western copper, significantly most products, ourprincipal for higher prices reflects this And basis. diluted a on share per 0.61 is CAD which million, 326 CAD 250% to almost increasing to shareholders attributable profit line adjusted bo And million. 967 60% to CAD almost increasing EBITDA adjusted with more even improved profitability And billion. 2.5 year aCAD to ago 7% from wereup Revenues 4. to slide Turning facility treatment SRF expansion Elkview The coal operations. our steelmaking around watershed our ongoing and n selenium of removal complete near achieving been has SRF Elkview The budget. below and on schedule quarter first the in Fill expansion Rock Saturated Elkview the commissioned we successfully And 18 ships. into has moved project port upgrade Neptune Our year. which is next 2022, of half thein second production first expect to we continue And 2023. by production copper our consolidated to double expected low life, long is a which project, our QB2 point halfway the are now past projects. We ourpriority for milestones major weachieved time, both st in guidance our quarterly sales met plan. with linein wasWe production our businesses, Across production. grow copper to our strategy progress and responsibly operate to we continue can that to ensure health the to protect measures place comprehensive with COVID associated challenges ongoing despite resilient be to continue operations quarter. Our first the in 2021 ver a to contributed prices commodity and higher performance operational So, strong anyquestions. answer to happy be would team our senior management of members additional re financial our color on additional will provide who CFO, our Price, bybe Jonathan followed I’ll highlights. quarter first with 3 on slide begin I’ll everyone. morning, good and Fraser, very much, Thanks CEO. and President our Lindsay, Don to over call turn the will I with that, And Appendix. the in measures these regarding reconciliations and explanations find we that out to point like also I would

eelmaking coal and zinc. And there are no changes to our annual guidance. At the same At same the guidance. our annual to changes no are there And zinc. and coal eelmaking www.CallStreet.com • • www.CallStreet.com

sults. And then we’ll conclude with a Q&A session where Jonathan and I and several Iseveral and and where Jonathan session a Q&A with we’ll conclude then And sults.

Teck ResourcesLtd. w ork to implement the to implement ork ’ s

capacity to 20 million liters of water per day. water of liters million to 20 capacity - 19. The Teck team continues to rise to meet those challenges putting in in putting those challenges meet to rise continues team to Teck The 19. itrate from up to 10 million liters of water per day since 2018. It is part of of is part It2018. since water perday of liters upmillion to 10 from itrate

as expected in our mine plans through 2021. Net cash unit costs unitcosts cash Net 2021. through plans our mine in expected as Company▲

Executive Officer & Director, Teck Resources Ltd. Resources Teck Director, & Officer Executive Elk Valley Water Quality Plan to maintain the health of the of health the to maintain Plan Quality Valley Elk Water

use various non various use 212 - cost operati cost -

849 Ticker▲ f construction trending upwards through the first first the through upwards trending construction f - 4070 TECK the the ian Select. Jonathan will review our financial our financial will review Jonathan Select. ian - on with major expansion potential. QB2 is potential. QB2 expansion major with on GAAP measures in the presentation. You can in presentation. the measures GAAP and safety of our people and our communities our communities and our people of safety and commissioni

•

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Apr. 28, 2021 Apr. 28, loaded loaded e ttom ttom

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corrected transcript maintenance. roaster zinc annual planned a by impacted will be production Q2 tonnes to 310,000 tonnes 300,000 between produce to expect continue to we while Trail, at And 2020. in production the reduced of a result as normal than lower again L tonnes. 100,000 to 90,000 of range guidance our waswhich above tonnes, were104,000 zinc in concentrate of sales year.Dog Red this half of first the salesin of cost cash volum production 2020 lower quarter, last we had flagged As expense. and royalty costs operating unit higher and volumes, lower sales dollar, Canadian by stronger a offset than were more prices zinc higher zinc Antamina reminder, a As 11. on slide are summarized quarter the first for results unit business zinc ourNext, release. press 2021 Q1 in our also quar our with these posted have gallery. We photo our in quarterly project the at of a video a look you to take encourage I at QB2, the latest of progress more see To site. theto portthe up water from desalinated into place lowered being water pipeline the of section a shows 10 Slide the pipelines. of placement and welding stringing, pipe trenching, with continue right pipeline 10.Slide The pr to the benefit significant provided has it and well, very fleet is performing mine Teck commissioned. recently were that 794 haul trucks CAT new several includes which fleet, mine current dam the of elevation the raise to continuing then and background the seenin abutments the areacompleting this in construction advanced have significantly facility. We of the management tailings dam the starter 9 shows Slide offshore. workfronts add two supporting background the in a temporaryisland from wellas as in foreground, the that shore, you cansee from advancing is jetty the where piling for works our marine 8 shows Slide installation. ta flotation blue rougher large the to adjacent are just These photo. the of right far on the in green here you canseejust which area the flotation in SFR or cells reactor flotation stage the installed have and building grinding the at steel structural th advanced have significantly also We mill. ball the fourth for place in being lowered segment shell last you the cansee here, And mills. ball fourth and the third of placement the advanced the of and five lines grinding on the progress significant have made the project. for We path or longest the critical remain middle the in shown lines grinding the area, the concentrator view of aerial an 7 provides Slide levels. staffing fur of extent in Chilethe and the pandemic of progress the on will depend costs theCOVID current of light in we are making COVID COVID of 500 million US$ to 450 million US$ disclosed have previously separately. We tracked are being which expenses, bil 5.2 US$ at remains estimate capital costs year. next Our of half second the in production for first track are stillon we earlier, Imentioned As ramp further for allow level to and workforce actively m is being situation The withtesting. PCR workforce entire the of prescreening including, weoperate which in and communities the workers our of and safety 19 in

ooking forward to Q2, we expect Red Dog zinc sales to be 35,000 to 45,000 tonnes, which is 45,000 tonnes, to 35,000 to be zinc sales Dog Red expect we Q2, to forward ooking oject. Chile. We continue to enhance our extensive COVID protocols in order to protect the health health the protect to order in protocols COVID extensive our enhance continue to Chile. We - www.CallStreet.com • • www.CallStreet.com

19 does continue to continue does 19

Teck ResourcesLtd. -

related financial results arer results related financial es at Red Dog have resulted in lower material available for sale and higher unit unit higher saleand for available material lower in resulted Dog have ates Red

- terly conference call materials at teck.com. And there are links to them to them Andare links there at teck.com. materials call terly conference - 19 of

affect project progress. And that said, we are pleased with the progress progress thewith pleased we are said, that And progress. project affect six mills are now in place. Since the start of the year, we have we have year, the of start the Since place. in arenow mills six - - related costs, of which US$ 197 million have been expensed. expensed. been have 197 million US$ which of costs, related way and platform development is now essentially complete and we and complete essentially is now development way platform and in the foreground. And for these works, we have been using Teck’s Teck’s we using been have works, these for And in the foreground. Company▲

212 -

849 eported in our copper business unit. Substantially Substantially unit. business our copper in eported - - 19 restrictions, but the final extent of COVID of extent but final the restrictions, 19 lion. That’s absent the COVID absent the lion. That’s up as soon as it’s p up soonas as nks which are well advanced in terms of of mechanical terms in well advanced which are nks Ticker▲ - 4070 TECK

and this is the pipeline that will bring will bring that pipeline is the and this

Event Type▲ 2001 - of refined zinc this year, zinc this refined of

19 - related capital capital related

ther impacts on ther impacts - 2021

CallStreet - 19 Apr. 28, 2021 Apr. 28, itional - related related e Date▲

corrected transcript Jonathan? you. Thank is ongoing. presentation the while mute on phone their to everyone keep ask please c some for to Jonathan over it pass I’ll that, with So, allow ramp to levels inventory mine building and stripping overburden is on focus The quarter. fourth the dayby two up to looking forward So, 2020. of end the at levels inventory mine available low o unit higher by was offset partially this However, 2020. Q1 with compared Select Canadian results and price realized Our unit resu business our energy to Turning business. our long of component is a key coal Neptune as steelmaking first achieve and phase commissioning the into go project to the see are reall vessel. into a We coal steelmaking loading new shiploader, our 15Slide shows confere d new the to see like you’d stacker new the by stockpile our on placed being it shows 14, on slide photo the see can You 19. April on dumper rail double new the went through coal steelmaking first the Isaid, As Neptune. of thewith status please very, very we’re So, largely complete. are all they Neptune, through volumes increased or support to Rail CN and CP bybothRail improvements rail infrastructure the upstream time, To planned. than better to or according is performing equipment all major and planned as proceeding Ramp terrific. looks It in action. all it yesterday, saw before site day visited the I 19. April 13 on ca rail the double using was unloaded coal steelmaking first phase. The commissioning the into moved has now project upgrade port Neptune our earlier, Iindicated as And month. one bylagged benc the 92% of of average the 10 than higher be materially to in Q2 price our expect realized realizations. price We in favorable to result continue to is expected which to China, volumes sales spot available prioritize t 6.4 million to 6 million of sales expect we Q2, to forward Looking budget. below and on schedule SRF Elkview the commissioned we successfully have earlier, Imentioned as And operations. Greenhills and River our Fording from 2012 in and calcite selenium of with discharges Actin connection Fisheries the under charges the we resolved inAlso Q1, forward. going flows cash strong deliver and the operations of out production to maximize well positioned are now inventories. coalWe rawsteelmaking healthy ha currently operations all and range, guidance our annual within were unitcosts challenges, these Despite year Q1. into later in the from coal production steelmaking cost higher advanced challenges, processing intermittent to due anticipated than was higher this and quarter, in the tonne per CAD 63 were sales of cost cash site adjusted Our prices. China at high CFR customers Chinese tosales re average quarter second Our guidance. quarterly our with line in tonnes, were6.2 million Sales 12. on slide coal business our steelmaking to Turning

perating costs due to lower production. Bitumen production in the first quarter was impacted by by impacted was quarter first the in production Bitumen production. lower to due costs perating - date, 18 vessels hav vessels date, 18 www.CallStreet.com • • www.CallStreet.com nce call materials at teck.com andis a therelink teck.com at materials call nce -

train production by midyear and by midyear production train

- up to a twoup to Teck ResourcesLtd.

train production. train which are largely behind us and mining sequence adjustments, which adjustments, sequence mining and us behind are largely which e already been loaded using the new outbound system. And at the same same And the at system. outbound new the using loaded been already e ouble dumper in action, we had posted a short video with our quarterly quarterly our with video a short posted wehad in action, ouble dumper

hmark, which is coming from the average of the three assessments assessments three the the averageof from whichis coming hmark, re - Company▲ term, low term, flect

a material 212

lts for the first quarter, which are summarized on slide 16. 16. on slide aresummarized which quarter, the first lts for - cost, and reliable supply chain for our steelmaking coal oursteelmaking for chain supply reliable and cost,

- to sustain production of 175,000 to 185,000 barrels per barrels per 185,000 175,000 to of production to sustain

849 Ticker▲

- improv 4070 TECK alized price reflects around 2 million tonnes of of million tonnes 2 around reflects price alized omments on our financial results. And if I could Icould if And on results. our financial omments ement in benchmark oil prices and oil prices in benchmark ement

•

Q1 20Q1 our quarterly press release. press our quarterly onnes, and we will continue to to will continue we and onnes, 21 Earnings Call Earnings 21 r dumper pictured on slide on slide pictured dumper r Event Type▲ 2001 S uncor - 2021

expects to ramp to ramp expects - reclaimer. If If reclaimer.

CallStreet y pleased - year

Western Western Apr. 28, 2021 Apr. 28,

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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 Teck Officer, Financial &Chief President Vice Senior Price, Jonathan to globally companies positioned best the is one of believe Teck budget. We below and schedule co we successfully and at Neptune, phase commissioning the point halfway surpassed quarter. first the We in key initiatives growth s prudent copper on Teck’s focused we remain to say want I closing, In Jonathan. Thanks, Okay. comments. closing to Don for it back that, pass I’ll With COVID around changes the weather to continue to us allow to position financial a strong we have Overall, agencies. credit rating all four from ratings credit grade investment and to2030 prior maturities note significant no have quarter. We thein second starting forward going contributions will be shareholder there a result, As April. in funding shareholder to total financing project of target ratio its achieved QB2 project The US$ limi billion our US$2.5 Of 26%was ratio that 31, March at And 60%. exceed cannot that ratio capitalization to debt is a net covenant financial only The condition. mater a general include do not and trigger, rating credit a doinclude not covenants, financial based flow orcash earnings any have not do Both facilities undrawn. remains billion fac 4 US$ on our is available billion 3.8 US$ credit facilities. revolving committed of billion 5 our US$ on available amounts the and cash our current includes This billion. 6.3 CAD of liquidity with current have m 19. slide on We position our financial to Now, turning short and with cash quarter the ended we items, minor other and these After per share. 0.05 CAD to dividend base quarterly regular 27 paidCAD and shares voting B subordinate Class in million CAD 6 issued charges. finance We and interest in million 113 CAD wepaid and 33 million, CAD totaled repaidnet a We projec the QB2 of development the to fund facility financing project recourse limited billion 2.5 US$ on the drawdown a million CAD 577 from were quarter first the in proceeds Net proceeds. in million we assets, other and investments For coal business. steelmaking our in ratios in strip decrease the by yeardriven ago the than lower was This coal operations. our steelmaking at production future pits for of advancement 134 CAD were activities Stripping capital. sustaining in 153 million and CAD project, port upgrade the Neptune on million 157 CAD QB2, on 523 million CAD including milli 585 generatedCAD 18. slide on We are quarter first the during position cash in our changes The basis. a diluted and a both basic on per share 0.61 is CAD which quarter, the in million 326 CADwas shareholders bott adjustments, minor other and these After basis. an after on million 15 wereCAD derivatives commodity and million, 10 CAD was expense write inventory in 6 million CAD reversed costs. remediation We i and provisions and restoration decommissioning our discount used to rates the in increase to an relating primarily tax, after 33 million CADwere costs Environmental 17. Don. I’ll Thanks,

on in cash flow from operations. We spent CAD 869 million on sustaining and growth capital, growth capital, and sustaining on million spent CAD 869 operations. from flow We in cash on 1.6 billi 1.6 www.CallStreet.com • • www.CallStreet.com trategy going into green metals, as they’re now called, and we made solid progress on our on progress solid we made and now called, they’re as green metals, into going trategy ility that matures in Q4 2024 and our US$ 1 billion sidecar that matures in Q2 2022 Q22022 in matures that sidecar 1 billion our US$ and Q42024 in matures ility that o Teck ResourcesLtd. n , of which US$460 million US$460 which of ,

CAD CAD start by addressing the details of the first quarter’s earning adjustments on slide adjustments quarter’s earning the first of details the addressing by start 44 million on our US$ 4 billion revolving credit facility. Lease payments payments Lease facility. credit revolving billion 4 our US$ on 44 million ted recourse project project recourse ted Company▲ . -

19 and to complete the QB2 QB2 the complete 19 to and 212 - paid CAD 44 million on expenditures and received CAD 11 CAD received and expenditures on million 44 CAD paid term investments of CAD 369 million. CAD 369 of investments term

was drawn in the first quarter. first the in drawn was -

849 financing facility for the QB2 project, we have drawn we drawn have project, QB2 the facility for financing Ticker▲ - 4070 TECK om line adjusted profit attributable to attributable profit line adjusted om

• mmissioned the Elkview SRF on SRF Elkview the mmissioned Copyright © © Copyright aintained our strong financial position position financial aintainedour strong Q1 20Q1 - downs, share downs, at QB2, we’ve moved in the moved we’ve QB2, at project. million, primarily related to the to related primarily million, 21 Earnings Call Earnings 21 million in respect of our of respect in million

ncreased expected ncreased ial adverse effect borrowing borrowing effect ial adverse Event Type▲ 2001

- based compensation compensation based - 2021

CallStreet

- tax tax Apr. 28, 2021 Apr. 28, Date▲ t.

corrected transcript o operator, that, with And your question. will answer who out we sort while is a delay there if us with bear Please personally today. inoffice the I’m home, although lines from on phone would be we that, with So, strategy. on our deliver to experience skillsand of mix with right the team a leadership we have And we do. everything in excellence and safety, efficiency, in productivity, improvements stepchange to drive automation and intelligence cutting is harnessing which technology, RACE21 through ou strengthen to also continuing We’re high the produce to while continuing business our total of proportion a as carbon reduce to to continue we expect metals green now called what’s towards portfolio our we rebalance production, copper our growing byAnd our strategy. of cornerstone is the growth copper Accelerating jurisdictions. attractive co verybest the of have one We copper. for particular, in and, metals green we see for growth that demand the strong on capitalize

sustainability. We strive to maintain the highest standards of sustainability and operational operational and sustainability of standards highest the to maintain strive sustainability. We www.CallStreet.com • • www.CallStreet.com Teck ResourcesLtd. - quality steelmaking coal that the world absolutely needs for alow for needs absolutely world coalthe that steelmaking quality

happy to answer your questions. And like many of you, most of are us you, most of like many And your questions. answer happy to Company▲ pper production growth profiles in the industry and located in located and industry in the profiles growth pper production

212 r high r -

849 - quality, our existing high existing our quality, Ticker▲ - 4070 TECK

• - edge technologies including artificial artificial including technologies edge Copyright © © Copyright Q1 20Q1 21 Earnings Call Earnings 21 - quality low quality Event Type▲ 2001 . And in the process, process, the in And . - 2021 - carbon assets assets carbon - carbon future. future. carbon ver to you. to ver

CallStreet Apr. 28, 2021 Apr. 28,

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corrected transcript QUESTION ANDANSWER SECTION QUESTION

– – – – – – – –

Don Lindsay Lindsay Don Red Conger Red Conger Lindsay Don Alex Christopher Orest Wowkodaw Wowkodaw Orest Orest Wowkodaw Wowkodaw Orest Wowkodaw Orest ility to move from, I say, two people per room to three people per room over time as as over time per room to three people per room I people say, two from, ility to move www.CallStreet.com • • www.CallStreet.com

- Teck ResourcesLtd. up schedule that we had. But having said that, we just had our best four weeks. In fact, In fact, weeks. four best our had we just that, said having But wehad. that up schedule

there today. That was a target for midyear. for wasatarget That today. there

– – – – sed to be in terms of of maximum? terms be in to sed

Teck Resources Ltd.>: Ltd.>: Resources Teck Ltd.>: Resources Teck

Teck Resources Ltd.>: Ltd.>: Resources Teck Teck Resources Ltd.>: Ltd.>: Resources Teck – –

well, they’ve now given now well, they’ve

– can you give me the head count one more time and what percent is that of of is that percent what and time more one count the head you me give can – – –

Teck Resources Lt Resources Teck

ort on the site. And the beauty of how the team is managing is managing team how the of beauty the And site. ort on the Scotiabank>: Scotiabank>: Scotiabank>: Scotiabank>: Scotiabank>: opment. I’m just wondering where you are with respect to head head to respect youwith are where wondering just I’m opment. Company▲ re’s no doubt that February and March were very tough, but things things but verytough, were March and February that nore’s doubt

212 Hi. Good morning Good Hi. Okay. Thank you very much. Thank Okay. you us. gave number the catch quite I didn’t Red. Thanks, -

849 Yeah. It’s 9,400 and I don’t have the percentage of of percentage the have I don’t and 9,400 Yeah. It’s the question. for thanks Orest, here. Red Yeah. Don,

d.>: Okay. I’ll make an opening comment, and then I’m I’m then and comment, an opening make I’ll Okay. And we should note that the peak workforce wasn’t workforce peak the that note should we And Ticker▲

- vaccines to 42% of their total population and nearly nearly and population total their of to 42% vaccines 4070 TECK that we published we published that Yeah. I think, Orest, our peak numbers here in numbers our peak Orest, Yeah. I think,

•

. And thanks for taking the question. question. the taking for thanks And . about 9,400 about Q1 20Q1 are

in the right position to position in right the 21 Earnings Call Earnings 21 avai

Event Type▲ on site. on as slowed us down relative relative down us slowed as lable going forward. So, forward. going lable 2001 ll in all, very, very proud proud very, very all, in ll

continue to make there make to continue -

We’ve been able to to able been We’ve 2021

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Apr. 28, 2021 Apr. 28, C hile

this Date▲

corrected transcript ahead. go Please is open. line Your Markets. BMO Capital from Jackie Przybylowski is from question next you. Our Thank Operator:

– – – – – – –

inal question maybe to Jonathan. The 42% tax rate in the quarter, what drove that and and that what drove quarter, the in rate tax 42% The Jonathan. to question maybe inal Jonathan Price Jonathan Lindsay Don Lindsay Don Greg Barnes Barnes Greg Barnes Greg Greg Barnes Barnes Greg Barnes Greg

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

Teck ResourcesLtd. . You’ve got a couple of copper projects in the pipeline potentially if you want to build build youwant to if potentially pipeline the in projects copper of couple a got You’ve . lot of talk about what the the what about talk of lot but just just but – – generally use $3 copper and, at some cases, we’ve used $3.10 or $3.15, but it but or $3.15, we’veused cases, $3.10 some at and, copper $3 use generally – – – –

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QB3 to mobilize to go after to actually develop them. There’s got to be a real a real be got to There’s them. develop toactually after go to mobilize to hat were essentially non essentially were hat

for the next 10 years, and that would be a real value adding for the for adding value a real be would years, that and 10 next the for Company▲

We’re in a very fortunate position. We have a long list of of list long havea position. We in veryfortunate a We’re

212 g iven right or long or right -

rillions of dollars to net zero. All of that is going to is going that of All zero. to net dollars of rillions 849 Okay. So, just a question for you, Don, given you have given you, Don, for a question just So, Okay. Okay. Thank Thank Okay. Ican, if And helpful. really Don. That’s Thanks, Right. Yes. Thank what’s happened in the last week between President President between week last the in happened what’s April will be our best month. And I don’t have that that have I don’t And month. will best be our April Yeah. So, I mean, that could be a very long answer, answer, a very long be could that I mean, Yeah. So, Ticker▲ - 4070

TECK Yeah. Greg, there were a couple of items, which items, of awere couple there Yeah. Greg,

- deductible for tax purposes. In the absence of of absence the In purposes. tax for deductible - term potential term

•

Q1 20Q1

i 21 Earnings Call Earnings 21 ncentive ncentive Event Type▲ 2001

ings whether they’re they’re whether ings copper price is. Do is. Do price copper - 2021

CallStreet Apr. 28, 2021 Apr. 28, x at x

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corrected transcript models on been has Valley Highland aspect, on RACE21 that add also should I per expectations. and robust as so more them making of issues technology the through working we’re but expected, than lower bit little is a utilization a them of two use weusually are, we where on depending And shovels. on three them we have and your question, other was to MineSense respect With well. really performed It has front. safety safety course, of And issues. labor and AHS utilization of from benefits our expected of top onwere which savings, and fuel maintenance life, tyre as such benefits term to seelonger work test doing we are And expected. as AH the of the performance of terms In was plan. our that and 2022 of be isplan to our And progresses. 2021 w Valley,

– – – – – – – –

Shehzad Bharmal Bharmal Shehzad Lindsay Don Foley Réal Foley Réal Lindsay Don Jackie Przybylowski Przybylowski Jackie Przybylowski Jackie Przybylowski Jackie www.CallStreet.com • • www.CallStreet.com – and

e have now converted 21 trucks and not all are in service and autonomous, but will be as will but autonomous, and service in andall are not trucks 21 converted now e have while we’re on the topic, can you talk about sort of what you’re t seeing what of aboutyou sort talk can topic, onwe’re the while Teck ResourcesLtd. the the grinding circuits, the models that we have created are bearing fruit and performing performing and fruit bearing are created wehave that models the circuits, grinding – – - million

Teck Resources Ltd.>: Ltd.>: Resources Teck Ltd.>: Resources Teck – – $ 100. FOB price this morning is down to around $109. And CFR China is at China CFR And $109. around to is down morning this price FOB $ 100.

Teck Resources Ltd.>: Ltd.>: Resources Teck Ltd.>: Resources Teck from you. from fre

- – tonne number that you had previously guided? you previously had that number tonne ight

Teck Resources Ltd.>: Ltd.>: Resources Teck ulage. Would you give us us you give ulage. Would – – – – e of the earlier ones out of the gate. And with respe And gate. the of ones out earlier the e of , which currently for us is in the low in the is us for which currently ,

being one of the best things we have had, really no issues on the on the issues no really we had, have things the best of one being

BMO Capital Markets Corp. (Canada)>: (Canada)>: Corp. Capital Markets BMO (Canada)>: Corp. Capital Markets BMO (Canada)>: Corp. Capital Markets BMO do you think that there’s any way that the coal sales into China could could China into sales coal the that anyway that youthere’s think do Company▲

stion on the coal division first. Your coal sales into China for Q1, Q1, China for into sales Your coal division first. coal the on stion - term customers in other markets customers term 212 –

to have 35 trucks fully autonomous in both the pits by Q1 Q1 by pits in the both fully autonomous trucks 35 have to -

849 Yeah. Not much more to add, Jackie, I guess. In Iguess. to add, Jackie, more much Yeah.Not Yeah. Sure can, Jackie. And so, the current pre the current so, And can, Jackie. Yeah.Sure I’ll turn it over to Réal, but toRéal, over it turn I’ll Yeah. It’s pretty good. Shehzad, why don’t you start? don’t why Shehzad, good. prettyYeah. It’s Ticker▲

- - FOB benchmark today? benchmark FOB throughs for how that might be kind of r of kind be might howthat for throughs – 4070 TECK

I’ve Sure. Thanks, Don. Jackie, on AHS at Highland Highland on at AHS Don. Jackie, Thanks, Sure.

–

been reminiscing on some old on some reminiscing been

would you mind giving me an update maybe maybe an update givingyou me mind would • Copyright © © Copyright nd we continue to utilize them. The The them. utilize to nd wecontinue Q1 20Q1 - 20s, 20s, . So, we’re still looking at a at looking we’re. So, still S, it’s performing as designed, designed, as performing it’sS, 21 Earnings Call Earnings 21 you end up with very close to close very with upyou end Event Type▲

Okay. Thank you. Can you,you. Can Thank Okay. very Thanks All right. Thank you very much. you very much. Thank I’ll just say that we thought we thought that say just I’ll 2001 - oday? I know Iknow oday? ct to our flotation to our flotation ct 2021 site visits site

CallStreet olled ersus the the ersus Apr. 28, 2021 Apr. 28, mium is mium

Date▲

corrected transcript availability. of scrap terms in just timeto there get some take will probably but that level of kind that shifting to low the around somewhere probably is scrap utilization developed markets, more at we look when then And is lower. Scrap availability countries In other EAF. of increase fast to support scrap significant generate cycle to longer is a which infrastructure and construction into is going China in steel the a lot of generation, v is still China in production around using currently is China. China in to see we’re starting utilization of that scrap terms in a shift of bitis a So, there a tonnes million 150 around were China that from exports high to record compares that And orso. tonnes million 40 around that’s So, to75%. 70% by export it those reduce like could looks it but early, pretty it’s so this morning that of announceme Estimates week. last tonnes 54 million were perspective, in this put China, to just from exports the But then exports. their to reduce China will help and its of majority on the rebate tax the is removing China that actually morning this was announcement an There regions. those of outside also and China,India, including world the of parts inall demand to recovering highst is record term short the in actually seeing we’re what

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Réal Foley Foley Réal Lindsay Don Sheremeta Robin Lindsay Don Bharmal Shehzad Emily Chieng Chieng Emily Przybylowski Jackie Przybylowski Jackie www.CallStreet.com • • www.CallStreet.com

Teck ResourcesLtd. –

like India where the majority of the growth is, going forward, story is quite similar. quite similar. is story forward, is, going growth the of majority where the India like

Teck Resources Ltd.>: Ltd.>: Resources Teck – –

– steel product exports. That will also support steel production in other countries countries other in production steel support also will That exports. product steel

Teck Resources Ltd.>: Ltd.>: Resources Teck Ltd.>: Resources Teck

Goldman Sachs & & Sachs Goldman –

– it’s in the low in it’s the –

Teck Resources Ltd.>: Ltd.>: Resources Teck acity? Teck Resources Ltd.>: Ltd.>: Resources Teck

ery low. And given the stage that China is at in terms of scrap terms in is at China that stage the given And ery low. – –

BMO Capital Markets Corp. (Canada)>: (Canada)>: Corp. Capital Markets BMO (Canada)>: Corp. Capital Markets BMO ? Company▲

few years ago. few - 30s to30s mid 212 - 20% range in terms of scrap utilization. But overall, the EAF EAF the overall, But scrap utilization. of in terms range 20% - Co. LLC>: LLC>: Co.

849 Yeah. I can do that. Thanks for the question, Emily. So, So, Emily. the question, for Thanks that. do Yeah.I can Robin, why don’t you do your version o version youryou do don’t why Robin, Okay. Réal Foley, why don’t you start on youthat? start don’t why Foley, Réal Okay. Ticker▲ - - 30% utilization. So, we So, utilization. 30% 4070

TECK t improvements in expected throughput throughput expected in improvements t Yeah. You bet. It pretty much be a repeat. be a repeat. much It pretty bet. You Yeah. Perhaps Andrew or Robin can talk. We do have talk. can We or Robin Andrew Perhaps nd we’ll have that fully converted by the end of of end the by converted fully that we’llnd have Good morning, everyone. I wanted to pivot pivot to wanted I everyone. Good morning,

term where different regions in the world, world, in the regions wheredifferent term • Copyright © © Copyright eel prices, and that is in large part due due part large is in that and prices, eel . But how do you square that off off you that square do howBut . Q1 20Q1

21 Earnings Call Earnings 21 could see eventually see could Event Type▲ Thanks very much, very much, Thanks expand to plan any there Is 2001 - type improvement, tyre tyre improvement, type nt, again, it’s just as of of as just it’s nt, again, - 2021 and curtailments and

f which I as f

CallStreet Apr. 28, 2021 Apr. 28,

Date▲

corrected transcript year 2021 by you targeting are completion tha know year by 40% completion targeting youwere I recall toupdates, 2020 goingAnd back completion. 50% past project the update, today’s one have I just Actually, questions. my taking metal green the for you’ve seen one follow just

– – – – –

Don Lindsay Lindsay Don Lindsay Don Bryce Adams Bryce Emily Chieng Chieng Emily Emily Chieng Chieng Emily www.CallStreet.com • • www.CallStreet.com t COVID is a variable, but on your updated project schedule, what percentage of of percentage what schedule, project your updated on but a variable, is t COVID cked down and I saw earlier that that’s likely to stay until September. So, the earliest earliest the So, September. until to likelystay that’s that earlier I saw and down cked Teck ResourcesLtd. - up, if I if up, ou. Our next question, Adam Bryce (sic) [Bryce Adams] (00:41:11) CIBC Capital Capital CIBC (00:41:11) [Bryce Adams] (sic) Bryce Adam question, next Our ou.

– – – – –

Teck Resources Ltd.>: Ltd.>: Resources Teck Ltd.>: Resources Teck

may. On the copper price environment and positive demand trends that trends that demand and positive environment price theOn copper may.

Goldman Sachs & Co. LLC>: LLC>: Co. & Sachs Goldman LLC>: Co. & Sachs Goldman CIBC World Markets, Inc.>: Inc.>: Markets, World CIBC

Company▲ - een when QB2 starts off next year of probably three full years of years of full three probably year of next off starts when QB2 een end, which ultimately you achieved. So, my question is question my So, youachieved. ultimately which end, -

feasibility study, which we’ll which study, feasibility 212 - term organic portfolio, is there a need to acce to a need is organic there portfolio, term ish the pre ish the - -

end? 849

, it’s a , it’s follow Let me speak to that. We don’t to seethe need to speak that. We me Let There is a consultant’s research report out a couple a couple out report research a consultant’s is There Ticker▲ -

4070 TECK

Good morning. Thanks for the update and and the update for Thanks morning. Good - feasibility study that it’s in now, then feasibility, feasibility, then now, init’s that study feasibility That’s really helpful color. And then maybe maybe then And color. helpful That’s really Great. That’s pe That’s Great. ts, there’s about four or five that are already are already that orfive four about there’s ts,

be publishing in due course. We’re course. due inWe’re publishing be - term copper price that the market market the that copper price term 21 Earnings Call Earnings 21 rfect. Thank you. Thank rfect. Event Type▲ 2001 - ng factor at this atthis ng factor 2021

lerate any of of any lerate

CallStreet – Apr. 28, 2021 Apr. 28,

and I and ing tilling Date▲

corrected transcript you. Thank better. a little timing that to understand like just I’d So, other companies. earlier than to start position you could if projects, the in gaps are the what and projection earliest us give and through you go just can But further. potentially has Nicolás to go needs Zafranal and 2026 willbe QB2 for sanctioning earliest explaine and went through you just Project, Satellite the project, the on then And that.

- od. We’re very happy with it. And yes, we wish we could sell more tonnes at the higher price, price, higher at the tonnes more sell wishyes,we could we it.And with very happy od. We’re schedule, that the project needs to be at or about 75% for year for 75% or about at be needs to project the that schedule, – – – – – – –

Don Lindsay Lindsay Don Lindsay Don Lindsay Don Timna Tanners Tanners Timna Tanners Timna Adams Bryce Adams Bryce www.CallStreet.com • • www.CallStreet.com

Teck ResourcesLtd. – as as f 2022. f

so, right now, we have a bifurcated market with two distinct prices. One is really One is really prices. distinct with two market bifurcated a wehave now, right so, to us – – –

– – .

Teck Resources Ltd.>: Ltd.>: Resources Teck Ltd.>: Resources Teck Ltd.>: Resources Teck

– – CIBC World Markets, Inc.>: Inc.>: Markets, World CIBC Inc.>: Markets, World CIBC

BofA Securities, Inc.>: Inc.>: Securities, BofA BofA Securities, Inc.>: Inc.>: Securities, BofA - term contracts. But are there any potential for revisiting those contracts? those contracts? revisiting for any potential are there But contracts. term - up to peak workforce, then the predictability and the percent per week week percent per the and predictability the then workforce, peak up to Company▲ pen. Please go ahead. go Please pen. - term situation between China and Australia. And then even if itif even then And Australia. and China situation between term

ID and we’re not through that situation yet. Once we are through through we are yet. Once situation that through not we’re ID and prices and the gap you pointed out is really wide. And I know wide.And is really out you pointed gap the and prices ood strong important customers that we’ve had long we’ve had that customers important ood strong 212 ? Because you had also said that Teck is in a favorable is in a favorable Teck that you also said had Because ? - up on the copper projects. Thanks. projects. copper on the up -

849

I think you’re trying to get too to get you’retrying I think on that youa number give to we’re going think I don’t Yeah. We certainly understand why you’re asking you’re asking why understand certainly Yeah. We Ticker▲ ence ence - - term situation, is there anything that can that situation,anything is there term 4070 Hey, hey. Good morning, guys. I have two follow two have I guys. morning, hey. Good Hey, All right. That makes a lot of sense. Thank you for Thank a lot sense. of makes All That right. TECK

we have COVID well and truly behind us, it it us, behind truly well and COVID have we Okay. So, excluding COVID, if we try to track it track we tryif to COVID, excluding So, Okay. Okay. Thank you. Thank Okay. and say that that sayand

has done the feasibility in San San in feasibility the done has 21 Earnings Call Earnings 21

Event Type▲ - 2001 track for first production production first for track

specific and we’re and specific

- . But I think it’s too think But I . 2021 d that the the d that they won’tbe they

CallStreet -

term term happen happen Apr. 28, 2021 Apr. 28, mber. Date▲ -

corrected transcript you looking? be would where so, if And specifically? project to copper comes it when side M&A on the inquisitive to be as far yougoing so be would ofgoing forward, strategy terms in wondered, I what And obviously. today, verydifferent sounds those like it seemed years back, to a few back when Ithink and etcetera, Satellite, copper, Project of lines the is along question

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Réal Foley Foley Réal Lindsay Don Lindsay Don Lindsay Don Timna Tanners Tanners Timna Lucas Pipes Pipes Lucas Pipes Lucas Tanners Timna www.CallStreet.com • • www.CallStreet.com Teck ResourcesLtd. year –

what’s the best way to handle handle way to best the what’s –

- Teck Resources Ltd.>: Ltd.>: Resources Teck – – over – – –

B. Riley Securities, Inc.>: Inc.>: Securities, Riley B. B. Riley Securiti Riley B. but they are still down on an annualized basis compared to the record high in in high record the to compared basis annualized an on down are still they but Teck Resources Ltd.>: Ltd.>: Resources Teck L Resources Teck Ltd.>: Resources Teck – –

- BofA Securities, Inc.>: Inc.>: Securities, BofA Inc.>: Securities, BofA year. That is on the backdrop of some challenges that the domestic domestic the challenges that some of backdrop the isyear. on That Company▲ –

some of those projects were a potential monetization targe monetization werea potential those projects of some 212 es, Inc.>: Inc.>: es, nt countries takes a different length of time. I think what we’ll what time.I think of length a different takes nt countries td.>: td.>: - -

March and is still ongoing to stillongoing is andMarch 849 All right. Thanks, Lucas. So, what China is doing in the doing is what China So, Lucas. Thanks, All right. Certainly appreciate the question. And we, in due due in we, And question. the appreciate Certainly question. Wha fairly detailed a That’s Réal, over to you. to over Réal, Ticker▲ bviously, the steel market is globally very strong. strong. very is globally market steel the bviously,

– - 4070

Hey. Good morning, everybody. I have questions questions I have everybody. Good morning, Hey. Thanks. Okay. Réal, I really appreciate all this detail. My second My second detail. this all appreciate I really Réal, TECK because there’s eight projects really and all and really projects eight there’s because

•

s for Q1, on an annualized basis, are up are up basis, annualized on Q1, s an for d as a result of that tight availability, of of availability, tight that of a result d as –

Q1 20Q1 not steel, sorry, domestic coal domestic sorry, steel, not

21 Earnings Call Earnings 21 - date. Event Type▲ 2001

t is putting a damper a damper putting t is -

2021 t I’m going to goingto t I’m

CallStreet y, China

Apr. 28, 2021 Apr. 28, that, that, ts. Itts.

Date▲

corrected transcript out. plays election this as about think we should you can suggest anything any recent had has Mines of or the Chamber management Antamina you or if wondering just I’m miners. foreign against aggressively fairly positioned candidate presidential leading the got Peru. you on We’ve mighthave any thoughts share

ight projects to work through. So, that’s not to say that our eyes are closed. We’re always going to going always closed. We’re are our eyes that to say not So, that’s through. work to ight projects ations and listen to the inbound calls that we’ve been receiving. And there are some interesting some are there And receiving. been we’ve that calls inbound the to listen and ations – – – –

then, given some of the things you mentioned earlier regards to the outlook for copper, what what for copper, outlook the to earlier regards you mentioned the things of some given then,

Don Lindsay Lindsay Don Lindsay Don Matthew Murphy Matthew Pipes Lucas

www.CallStreet.com • • www.CallStreet.com y much and best of luck. of best andy much with us or whatever. That’s still up in the air. Still not possible in some circumstances. So, circumstances. in some possible not Still air. the in still up That’s whatever. or us with

Teck ResourcesLtd.

– – –

B. Riley Securities, Inc.>: Inc.>: Securities, Riley B. Teck Resources Lt Resources Teck Teck Resources Ltd.>: Ltd.>: Resources Teck - term view of copper price or copper demand, which drives price, has shifted price, shifted has which drives demand, or copper view copper price of term –

Barclays Capital Canada, Inc.>: Inc.>: Canada, Capital Barclays Company▲

at the market. But as one of our board members said, why would would why said, members board our of one as But market. at the growth to 3% to 3.5%. That opens up a big gap, which means that which means gap, big a opens up That 3.5%. 3% to to growth

212 . I mean, one of the reasons we can’t really answer this is this answer we really can’t the reasons of one . I mean, d.>: d.>: -

849 able and I would expect that exploration will share in will share exploration that expect would I and able Okay. There are several questions within that. I’ll within that. questions several are Okay. There Thank you. Thank Ticker▲ - 4070 Don, I really appreciate this perspective. Thank Thank perspective. this appreciate I really Don, TECK

- term price people are using. But then also the the also then But using. people price are term

•

Copyright © © Copyright - insights into his administration. And just just And administration. his into insights COVID and that’s just a function of two of a function just that’s and COVID occur. to hat if that sneaks in between QB2 and and QB2 in between sneaks that if Hello. I was wowas I Hello. Q1 20Q1 vations. One is, clearly, the clearly, the is, One vations. 21 Earnings Call Earnings 21 Event Type▲

2001

ndering if you could if ndering

- 2021

CallStreet Apr. 28, 2021 Apr. 28, nd Date▲

corrected transcript team. satellite the created by been has value significant so But a deal. closing actually a to letter getting from way wealong it’s did, numbers, say those we say that. to do we if When chose them of couple a on billion 1 CAD over clearwe significantly could that unasked get we that things and proposals letter and inbound calls just do know from cash. in it We any of realized necessarily haven’t proje five those for that exceeded we significantly have of NAV, In value.terms of billion 3 set CAD a target of We be would monetized. them of some that thought was always it And so, forward. portfolio going the Teck part of but som them, of all would monetize we that contemplated never wasit So, cash. for outright sell or just ride cycle, the shares, back take company, another into contribute to was it whether it, with to do best what decide then and feasibility, prefeasibility, study scoping reserve resource scoping the through them we’d ismove we said what And earlyvery stage. allwere that projects lead. has he likepolls the in it looks and left fairly far he’l I see that theand result. answer the knows one No youryou question. with help to that to add can we insight that additional that much there’s think does. Butdon’t I the team of sure most and I’m commentator geopolitical professional different

l be modifying his position somewhat. But in the end, he comes from a advantage point that’s point that’s a advantage from comes he end, in But the somewhat. position his be modifying l – – – – – – –

Don Lindsay Lindsay Don Price Jonathan Lindsay Don Lindsay Don Brian MacArthur MacArthur Brian Murphy Matthew Murph Matthew www.CallStreet.com • • www.CallStreet.com Teck ResourcesLtd.

actually build it if it made sense as part of Teck’s portfolio or to partner or to partner portfolio or to Teck’s of part as sense it if it made build actually

– – – –

Teck Resources Ltd.>: Ltd.>: Resources Teck Ltd.>: Resources Teck Ltd.>: Resources Teck if we look just at Antamina, like how much CapEx you’dbe CapEx how much like at Antamina, just look we if y –

– – – Teck Resources Ltd.>: Ltd.>: Resources Teck

Raymond James Ltd.>: Ltd.>: James Raymond Barclays Capital Canada, Inc.>: Inc.>: Canada, Capital Barclays Inc.>: Canada, Capital Barclays Company▲ ding one of your projects. Can I assume that you don’t really want don’t really you that assume Can I your projects. of one ding 212

849 – I’ll turn that to Jonathan, but just saying because you because saying just but Jonathan, to turn that I’ll Okay. A cou A Okay. Yeah. Clearly, we’re all watching it and there’s there’s and it watching all we’re Yeah. Clearly,

Ticker▲ s that publish reports every day. I read some of them them of some I day. read every reports that s publish originally Project Satellite with all the monetization, monetization, all the with Satellite Project originally - 4070 TECK Sorry. Just getting off mute there. I don’t have the have I don’t there. mute off getting Just Sorry. Hi. Good morning, Don. Again, Again, Don. Good morning, Hi. we know, we know we’ve received offers that offers we’ve received we know we know,

•

e were less likely to become become likely to e wereless and obviously, you’ve got you’ve got obviously, and Event Type▲ 2001

- – 2021