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Global Metals and Mining Conference
Supplemental
Information
June 5, 2023
Global Metals and Mining Conference
2
Caution Regarding Forward-Looking Statements
Both these slides and the accompanying oral presentation contain certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to as forward-looking statements). These statements relate to future events or
our future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “should”, “believe” and similar
expressions is intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These
statements speak only as of the date of this presentation.
These forward-looking statements include, but are not limited to, statements concerning: forecast production; forecast operating costs, unit costs, capital costs and other costs; sales forecasts; all guidance included in this presentation, including production guidance, sale and
unit cost guidance, capital expenditure guidance, water treatment guidance, and the sensitivities thereto; our strategies, objectives and goals; future accounting treatment for QB2; our portfolio of copper growth options and expectations for our copper projects, including San
Nicolas, NewRange, QBME, Zafranal, Galore Creek, NuevaUnion and Schaft Creek, including expectations related to the submission and receipt of regulatory approvals, timing for completion of prefeasibility and feasibility studies, costs and timing related to construction and
commissioning and expectations relating to production levels, capital and operating costs, mine life, strip ratios, C1 cash costs and further expansions; expectations regarding mine life extensions for HVC, Antamina and Red Dog, including expectations relating to timing for
regulatory approvals and feasibility studies, production rates, life of mine extensions, required capital projects and ability to utilize existing infrastructure; expectations and planned activities relating to our zinc development options; expectation that we have the potential to be a
top 10 copper producer and that QB1 is expected to double our consolidated copper production at full capacity; expectations regarding water treatment in the Elk Valley, including the statement that we expect further reductions as treatment increases; our expectations
regarding our QB2 project; our expectations relating to the demand for and supply of copper, zinc, steelmaking coal and other products and commodities that we produce and sell; our expectations relating to future prices and price volatility for copper, zinc, steelmaking coal
and other products and commodities that we produce and sell; our expectations relating to future operating costs for our operations and those of our competitors; and all other statements relating to the outlook of the markets for copper, zinc, steelmaking coal and other
products and commodities that we produce and sell.
Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this presentation. Such statements are based on a number of assumptions that may prove to be incorrect, including,
but not limited to, assumptions regarding: general business and economic conditions; commodity and power prices; assumption that QB2 becomes fully producing within expected timeframes; the supply and demand for, deliveries of, and the level and volatility of prices of
copper, zinc, steelmaking coal, and our other metals and minerals, as well as oil, natural gas and other petroleum products; the timing of the receipt of permits and other regulatory and governmental approvals for our development projects and other operations, including mine
extensions; our costs of production and production and productivity levels, as well as those of our competitors; availability of water and power resources; credit market conditions and conditions in financial markets generally; our ability to procure equipment and operating
supplies and services in sufficient quantities on a timely basis; availability of qualified employees and contractors for our operations, including our new developments and our ability to attract and retain skilled employees; the satisfactory negotiation of collective agreements
with unionized employees; the impact of changes in Canadian-U.S. dollar exchange rates, Canadian dollar-Chilean Peso exchange rates and other foreign exchange rates on our costs and results; the accuracy of mineral and steelmaking coal reserve and resource estimates
(including with respect to size, grade and recoverability) and the geological, operational and price assumptions on which these are based; tax benefits and tax rates; the impacts of the COVID-19 pandemic on our operations and projects and on global markets; our ongoing
relations with employees and with our business and joint venture partners; the impact of climate change and climate change initiatives on markets and operations; and the impact of geopolitical events on mining operations and global markets. Assumptions regarding QB2
include current project assumptions and assumptions contained in the final feasibility study, as well as there being no further unexpected material and negative impact to the various contractors, suppliers and subcontractors for the QB2 project relating to COVID-19 or
otherwise that would impair their ability to provide goods and services as anticipated. Expectations regarding our operations are based on numerous assumptions regarding the operations. Statements concerning future production costs or volumes are based on numerous
assumptions of management regarding operating matters and on assumptions that demand for products develops as anticipated; that customers and other counterparties perform their contractual obligations; that operating and capital plans will not be disrupted by issues such
as mechanical failure, unavailability of parts and supplies, labour disturbances, COVID-19, interruption in transportation or utilities, or adverse weather conditions; and that there are no material unanticipated variations in the cost of energy or supplies. Assumptions regarding
water quality management in the Elk Valley include assumptions that additional treatment will be effective at scale, that the technology and facilities operate as expected and that required permits will be obtained.
The foregoing list of important factors and assumptions is not exhaustive. Other events or circumstances could cause our actual results to differ materially from those estimated or projected and expressed in, or implied by, our forward-looking statements. See also the risks
and assumptions discussed under “Risk Factors” in our 2022 Annual Information Form and in subsequent filings, which can be found under our profile on SEDAR (www.sedar.com) and on EDGAR (www.sec.gov). Except as required by law, we undertake no obligation to
update publicly or otherwise revise any forward-looking statements or the foregoing list of factors, whether as a result of new information or future events or otherwise. Inherent in forward-looking statements are risks and uncertainties beyond our ability to predict or control,
including risks that may affect our operating or capital plans; that are generally encountered in the permitting and development of mineral properties such as unusual or unexpected geological formations; associated with the COVID-19 pandemic; associated with unanticipated
metallurgical difficulties; relating to delays associated with permit appeals or other regulatory processes, ground control problems, adverse weather conditions or process upsets and equipment malfunctions; associated with any damage to our reputation; associated with
labour disturbances and availability of skilled labour; associated with fluctuations in the market prices of our principal commodities; associated with changes to the tax and royalty regimes in which we operate; created through competition for mining and oil and gas properties;
associated with lack of access to capital or to markets; associated with mineral reserve and resource estimates; posed by fluctuations in exchange rates and interest rates, as well as general economic conditions; associated with changes to our credit ratings; associated with
our material financing arrangements and our covenants thereunder; associated with climate change, environmental compliance, changes in environmental legislation and regulation, and changes to our reclamation obligations; associated with procurement of goods and
services for our business, projects and operations; associated with non-performance by contractual counterparties; associated with potential disputes with partners and co-owners; associated with operations in foreign countries; associated with information technology; and
risks associated with tax reassessments and legal proceedings.
Scientific and technical information in this presentation and related appendices was reviewed and approved by Rodrigo Alves Marinho, P.Geo., an employee of Teck and a Qualified Person under National Instrument 43-101.
Global Metals and Mining Conference
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Table of Contents
Guidance and Reference
Copper Growth Portfolio
Mine Life Extensions
Zinc Development Options
Business Units
Base Metals
Steelmaking Coal
Markets
Copper
Zinc
Steelmaking Coal
Non-GAAP Financial Measures and Ratios
Global Metals and Mining Conference
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Guidance and
Reference
Global Metals and Mining Conference
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Operations & Projects
(22.5%)
(60%)
(80%)
(50%)
(75%)
(50%)
(95%)
(80%)
(50%) | NorthMet (50%)
(50%)
(90%)
Global Metals and Mining Conference
Production Guidance
2022
Actual
Previous
2023
Guidance
Current
2023
Guidance1
Previous
2024-2026
Guidance
Current
2024-2026
Guidance1
Copper2,3,4
Highland Valley 119.1 110-118 110-118 120-165 120-165
Antamina 102.3 90-97 90-97 90-100 90-100
Carmen de Andacollo 39.5 40-50 40-50 50-60 50-60
Quebrada Blanca 9.6 150-180 150-180 285-315 285-315
Total 270.5 390-445 390-445 545-640 545-640
Copper
Kt, except as noted.
2022
Actual
Previous
2023
Guidance
Current
2023
Guidance1
Previous
2024-2026
Guidance
Current
2024-2026
Guidance1
Zinc in concentrate2,3,5
Red Dog 553.1 550-580 550-580 500-550 500-550
Antamina 97.4 95-105 95-105 55-95 55-95
Total 650.5 645-685 645-685 555-645 555-645
Refined zinc
Trail Operations 248.9 270-290 270-290 280-310 280-310
Zinc
2022
Actual
Previous
2023
Guidance
Current
2023
Guidance1
Previous
2024-2026
Guidance
Current
2024-2026
Guidance1
Steelmaking coal (Mt) 21.5 24.0-26.0 24.0-26.0 24.0-26.0 24.0-26.0
Steelmaking Coal
2022
Actual
Previous
2023
Guidance
Current
2023
Guidance1
Previous
2024-2026
Guidance
Current
2024-2026
Guidance1
Molybdenum2,3
(Mlbs)
Highland Valley 1.0 0.8-1.2 0.8-1.2 2.0-6.0 2.0-6.0
Antamina 1.5 2.2-2.6 2.2-2.6 2.0-4.0 2.0-4.0
Quebrada Blanca - 1.5-3.0 1.5-3.0 10.0-14.0 10.0-14.0
Total 2.5 4.5-6.8 4.5-6.8 14.0-24.0 14.0-24.0
Lead2
Red Dog 79.5 110-125 110-125 85-95 85-95
Other Base Metals
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Global Metals and Mining Conference
Unit Cost and Sales Guidance
Total cash unit costs per pound, net cash unit costs per pound, and adjusted site cash cost of sales per tonne are non-GAAP ratios. See “Non-GAAP Financial Measures and Ratios” slides.
Zinc3 Steelmaking Coal
Copper2
(US$/lb)
2022
Actual
Previous
2023
Guidance
Current
2023
Guidance1
Total cash unit costs 2.02 2.05-2.25 2.05-2.25
Net cash unit costs4
1.56 1.60-1.80 1.60-1.80
(US$/lb)
2022
Actual
Previous
2023
Guidance
Current
2023
Guidance1
Total cash unit costs 0.58 0.68-0.78 0.68-0.78
Net cash unit costs4
0.44 0.50-0.60 0.50-0.60
(C$/tonne)
2022
Actual
Previous
2023
Guidance
Current
2023
Guidance1
Adjusted site cash cost of sales 89 88-96 88-96
Transportation costs 47 45-48 45-48
Unit Costs
Sales
(kt)
Q1 2023
Actual
Current
Q2 2023
Guidance1
Red Dog zinc in concentrate 89 45-55
(Mt)
Q1 2023
Actual
Current
Q2 2023
Guidance1
Steelmaking coal 6.2 6.2-6.6
Zinc Steelmaking Coal
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Global Metals and Mining Conference
2022
Actual
Previous
2023
Guidance
Current
2023
Guidance1
Sustaining
Copper2 $ 297 $ 510 $ 510
Zinc 244 150 150
Steelmaking coal3 520 760 760
Corporate 17 10 10
$ 1,078 $ 1,430 $ 1,430
Growth
Copper4 $ 217 $ 250 $ 250
Zinc 37 80 80
Steelmaking coal 30 30 30
Corporate 1 - -
$ 285 $ 360 $ 360
Total
Copper $ 514 $ 760 $ 760
Zinc 281 230 230
Steelmaking coal 550 790 790
Corporate 18 10 10
$ 1,363 $ 1,790 $ 1,790
QB2 development capital 3,060 1,200–1,750 $1,650-2,200
Total before SMM/SC contributions 4,423 2,990-3,540 3,440-3,990
Estimated SMM/SC contributions to capital expenditures (1,090) (520)-(700) (670)-(850)
Estimated QB2 project financing draw to capital expenditures (315) - -
Total, net of partner contributions and project financing $ 3,018 $ 2,470-2,840 $ 2,770-3,140
Capital Expenditures Guidance
Sustaining and Growth Capital Capitalized Stripping
2022
Actual
Previous
2023 Guidance
Current
2023
Guidance1
Capitalized Stripping
Copper $ 336 $ 295 $ 295
Zinc 89 55 55
Steelmaking coal 617 750 750
$ 1,042 $ 1,100 $ 1,100
Teck’s share in C$ millions, except as noted. 8
Global Metals and Mining Conference
Water Treatment Guidance
C$ millions, except as noted.
2022
Actual
Previous
2023
Guidance
Current
2023
Guidance2
Previous
2023-2024
Guidance
Current
2023-2024
Guidance2
Previous
Long-Term
Guidance
(C$/tonne)
Current
Long-Term
Guidance3
(C$/tonne)
Sustaining capital for water management and water
treatment, including October 2020 Direction issued
by Environment and Climate Change Canada
$ 184 $ 220 $ 220 $ 450-550 $ 450-550 $ 2.00 $ 2.00
Steelmaking Coal Capital Expenditures Related to Water Treatment1
2022
Actual
Previous
2023
Guidance
Current
2023
Guidance2
Previous
2023-2024
Guidance
Current
2023-2024
Guidance2
Previous
Long-Term
Guidance
(C$/tonne)
Current
Long-Term
Guidance3
(C$/tonne)
Operating costs associated with water treatment $ 1.50 – – $ 3.00-5.00 $ 3.00-5.00
Steelmaking Coal Operating Costs Related to Water Treatment1 (C$/tonne)
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Global Metals and Mining Conference
Sensitivities
2023 Mid-Range
Production Estimates2 Changes
Estimated Effect on
Profit Attributable
to Shareholders3
($ in millions)
Estimated Effect
on EBITDA3
($ in millions)
US$ exchange C$0.01 $ 60 $ 98
Copper (kt) 417.5 US$0.01/lb 6 11
Zinc (kt)4 945.0 US$0.01/lb 9 12
Steelmaking Coal (Mt) 25.0 US$1/t 19 29
WTI5 US$1/bbl 3 5
EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures and Ratios” slides.
Sensitivity of our Annualized Profit Attributable to Shareholders and EBITDA1
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Operation Expiry Dates1
Line Creek May 31, 2024
Antamina July 31, 2024
Quebrada Blanca
January 31, 2025
March 31, 2025
November 30, 2025
Carmen de Andacollo
December 31, 2025
September 30, 2025
Highland Valley Copper September 30, 2026
Elkview October 31, 2026
Fording River April 30, 2027
Trail Operations May 31, 2027
Cardinal River June 30, 2027
Collective Agreements
Global Metals and Mining Conference
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Share Structure & Principal Shareholders
Teck Resources Limited as at December 31, 20221
Shares Held Percent Voting Rights
Class A Shareholdings
Temagami Mining Company Limited 4,300,000 55.4%
SMM Resources Inc (Sumitomo) 1,469,000 18.9%
Other 1,996,503 25.7%
7,765,503 100.0%
Class B Shareholdings
Temagami Mining Company Limited 525,000 0.1%
SMM Resources Inc (Sumitomo) 393,474 0.1%
China Investment Corporation (Fullbloom) 52,286,774 10.3%
Other 452,748,352 89.5%
505,953,600 100.0%
Total Shareholdings
Temagami Mining Company Limited 4,825,000 0.9% 33.6%
SMM Resources Inc (Sumitomo) 1,862,474 0.4% 11.5%
China Investment Corporation (Fullbloom) 52,286,774 10.2% 4.1%
Other 454,744,855 88.5% 50.8%
513,719,103 100.0% 100.0%
Shares held by China Investment Corporation (Fullbloom) are based on most recent publicly reported shareholdings and may not be current.
Global Metals and Mining Conference
Copper Growth
Portfolio
Global Metals and Mining Conference
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Growth Pipeline at an Advanced State of Readiness
14
Teck is positioned to maximize value from our copper growth portfolio well beyond the investments made in QB2
10+ years ago, recognized copper scarcity and long timelines to get assets into production
✓
Over 5+ years, completed lead-time development work (resource definition, engineering & design,
permitting, stakeholder engagement) across portfolio
✓
Accelerated project development and de-risked delivery with industry-leading partners,
securing +$1bn of additional value
✓
Teck is unique in the industry in pursuing an active portfolio management approach to growth pipeline –
maximizing optionality and value
✓
Teck has created the most valuable portfolio of actionable copper growth projects in the industry
✓
Global Metals and Mining Conference
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Robust Portfolio of Near-Term Development Projects
15
Teck’s Ownership
(Partner)
State of Readiness
1st 5-Year Avg.
Prod. (Cu Eq kt)1
C1 Cash Cost3
($/lb Cu Payable)
Mine Life
(Yrs.)4
QBME
60 %
(SMM & SC6 / ENAMI)
Feasibility underway and
permit submitted
1402
$1.50/lb
15 + Future Extension
Continued production
growth from massive
resource
Zafranal
80 %
(Mitsubishi Materials Corp.)
Permit imminent, detailed
engineering in H2 2023
133
$1.16/lb
19
Peru’s next
copper mine
Galore Creek
50 %
(Newmont)
Initial permit submission,
planned for H2 2023
129
$0.70/lb
21 + Future Extensions
Canada’s largest
copper development
project5
San Nicolás
50 %
(Agnico Eagle)
Feasibility and permit
preparation underway
63
($0.26)/lb
15
High grade asset with
industry leading
returns
NewRange
50 %
(PolyMet / Glencore)
Permits in hand,
re-engineering underway,
new management team
41 / 124
$0.72/lb
20 + Future Extensions
US producer of
critical battery metal
concentrates
(Initial / Expanded)
Global Metals and Mining Conference
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Readiness Maximizes Portfolio Optionality and Value
16
Engineering and Permitting Construction Production
Targeted Sanction Window
Near-Term Value Catalysts
Agnico Eagle partnership, EIA submission
and FS completion targeted for
H1 2023 & H1 2024
Permit submitted and feasibility study
completion targeted for H2 2023
SEIA approval expected in H1 2023;
detailed engineering underway
In position for sanction in
H2 2024
Targeted initial permit submission
H2 2023
2024 2025 2026 2027 2028 2029
San
Nicolás
QBME
Zafranal
NewRange
(NorthMet)
Galore
Creek
Development projects can drive further
production growth starting in 2027
Global Metals and Mining Conference
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2
5
3
1
7
8
9
Teck Greenfield Discovery
Teck Greenfield Discovery
Portfolio of Copper Growth Options
17
4
6
1
2
3
4
5
6
8
9
7
Near Term Options
San Nicolás (Cu-Zn-Au-Ag), Mexico1,2 Teck 50% | Agnico Eagle 50% (San Nicolás Joint Venture)
Prefeasibility Study complete Q1 2021; Feasibility Study completion targeted for Q1 2024
First five years (100% basis): 127 ktpa CuEq, C1 cash costs US$(0.26)/lb Cu; US$1.0-1.1Bn capex; NPV8 US$1.3-1.4Bn; IRR 26-29%
QB Mill Expansion (Cu-Mo-Ag), Chile Teck 60% | SMM/SC 30% | ENAMI 10%
Feasibility Study completion targeted for later in 2023; Targeting 50% throughput increase in addition to QB2
Competitive C1 cash costs
Zafranal (Cu-Au), Peru1,2 Teck 80% | MMC 20%
Feasibility Study complete Q2 2019; SEIA submitted Q1 2022 with targeted approval in the H1 2023
First five years (100% basis): 133 ktpa CuEq, C1 cash costs US$1.16/lb Cu; US$1.2Bn capex; NPV8 US$1.1Bn; IRR 24.6%
NorthMet (Cu-Ni-PGM), Minnesota, USA3 Teck 50% | PolyMet 50% (NewRange Copper Nickel LLC Joint Venture)
Permits received, working through litigation towards development, construction and operation of 29 ktpd mining/milling operation
262 Mt Proven & Probable Reserves at 0.290% Cu, 0.084% Ni, 0.270 g/t Pd and 0.079 g/t Pt
Medium Term Options
Galore Creek (Cu-Au-Ag), BC, Canada1 Teck 50% | Newmont 50%
Primary engineering contract for Prefeasibility awarded in Q1 2022; Prefeasibility Study targeted for completion in H2 2023
Potential 215 ktpa CuEq (100% basis); C1 cash costs of US$0.65-0.75/lb Cu
QB Future Expansions (Cu-Mo-Ag), Chile Teck 60% | SMM/SC 30% | ENAMI 10%
Conceptual study underway; options being evaluated to increase throughput beyond QB Mill Expansion
Competitive C1 cash costs
Future Potential
NuevaUnión (Cu-Au-Ag-Mo), Chile1 Teck 50% | Newmont 50%
Select technical and strategic work underway; On a 100% basis, potential 263 ktpa CuEq; C1 cash costs US$1.00-1.10/lb Cu
Mesaba (Cu-Ni, PGM-Co), Minnesota, USA1 Teck 50% | PolyMet 50% (NewRange Copper Nickel LLC Joint Venture)
Preparing for Prefeasibility Study; Ongoing environmental and social baseline studies; Potential 242 ktpa CuEq (100% basis)
Schaft Creek (Cu-Mo-Au-Ag), BC, Canada1 Teck 75% | Copper Fox 25%
Preparing for Prefeasibility Study; Potential 161 ktpa CuEq (100% basis); C1 cash costs US$0.50-0.60/lb Cu
This slide discloses the results of economic analysis of mineral resources. Mineral resources that are not mineral reserves and do not have demonstrated economic viability. Projections for Galore Creek, Mesaba and Schaft Creek
include inferred resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Inferred resources are subject to
greater uncertainty than measured or indicated resources and it cannot be assumed that they will be successfully upgraded to measured and indicated through further drilling.
C1 cash unit costs per pound is a non-GAAP ratio. See “Non-GAAP Financial Measures and Ratios” slides.
Global Metals and Mining Conference
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Prefeasibility Study Production Profile and Financial Summary with
Development Capital Estimate between US$1.0-1.1Bn1
Long Life Asset in Mexico
• One of the world’s most significant undeveloped
VHMS deposits
• Updated Resources Statement
Quality Investment
• Expect LOM C1 cash costs in the 1st quartile
• Competitive capital intensity
• Co-product Zn and by-product Au & Ag credits
Mining Jurisdiction
• Well-established mining district in Mexico
• Community engagement well underway
Path to Value Realization
• Prefeasibility and Draft EIA completed in Q1 and Q3 2021 respectively; EIA
submission targeted in first half 2023; FS completion targeted for Q1 2024
• Established partnership with Agnico Eagle unlocks value
After-Tax NPV8
Range
US$1.3-1.4Bn
After-Tax IRR Range
26-29%
Initial Capex Range
US$1.0-1.1Bn
Payback Period
Range
3.0-3.3 Years
Avg 1st 5 year2
C1 Cash Costs
US$(0.26)/lb
Avg 1st 5 year2
Head Grade
1.07% Cu
Avg 1st 5 year2
Production
63 kt Cu, 147 kt Zn,
31 koz Au
Avg 1st 5 year2
EBITDA
US$0.5Bn
Metal price assumptions: US$3.60/lb Cu, US$1.20/lb Zn, US$1,550/oz Au and US$20/oz Ag
2023 2024 2026
0%
25%
50%
75%
100%
-
25
50
75
100
125
150
175
2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041
Cu Contained in CCTs (kt) CuEq Contained in CCTs (kt) EBITDA Margin (RHS)
2027
San Nicolás Cu-Zn (Ag-Au) VHMS (50%)
Prefeasibility and Environmental Impact Assessment completed
Illustrative
Timeline
Permitting
FS Complete
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Targeted
Sanction
Window
Targeted First
Production
Detailed Engineering
Studies (FS) Construction Production
EBITDA is a forward-looking non-GAAP financial measure. San Nicolás is not an operating asset and there is no historical information with which to compare. C1 cash unit costs per pound
is a non-GAAP ratio. See “Non-GAAP Financial Measures and Ratios” slides.
Global Metals and Mining Conference
Unlocking the value of a world class undeveloped VHMS
• Agnico Eagle will subscribe for US$580 million of shares in the Teck
subsidiary that owns San Nicolás, giving Agnico Eagle a 50% effective
interest
• Combines extensive operating experience and development expertise
in the Americas to de-risk and optimize this world class VHMS deposit
• The asset is in an important mining jurisdiction with existing
infrastructure and a skilled workforce; approximately 60 km SE of the
city of Zacatecas
• Extremely competitive capital intensity, and first quartile costs
JV provides a path to permitting, development and production
• The partners complementary skillsets, relationships, and funding
capabilities will contribute to the timely and successful development
• The joint venture reduces Teck’s near-term funding and enhances
equity returns
Delivering on copper growth strategy
• The Feasibility Study is well underway scheduled for completion in
Q1 2024; data collection phase nearing completion
• EIA and ETJ permit applications ready for submission in H1 2023
San Nicolás Cu-Zn (Ag-Au) VHMS (50%)
A partnership between two international Canadian-based mining companies
C1 Cash Cost (Net of by-product credits)1
C1
Cash
Cost
(NBPC)
(US$/lb
Cu
Payable)
25% 50% 75% 100%
San Nicolás Field Operation Camp
($2.00)
($1.00)
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00 Top Decile C1 Cash Cost Performance
San Nicolás Life of Mine C1 Cash Cost $0.38/lb
San Nicolás First Five Years average C1 Cash Cost $(0.26)/lb
19
C1 cash unit costs per pound is a non-GAAP ratio. See “Non-GAAP Financial Measures and Ratios” slides.
Global Metals and Mining Conference
Defining the next expansion at QB
• Multiple expansion options considered in scoping work
• Options evaluated ranged from +50% to +200%
throughput increase
• Staged expansion with focus on earliest copper production;
near-term focus on QBME with additional expansion
opportunities to realize value from significant resource
Quebrada Blanca Expansion Cu-Mo-Ag (60%)
Fast-tracking additional near-term copper growth
Mill expansion project highlights
• Minimal additional footprint, simplifies scope of
regulatory and permitting activities
• Leverages existing tailings management facility
and other infrastructure
• Competitive C1 cost for incremental production
QB Future Potential
QB Mill Expansion (QBME) in Chile, as envisioned
First Production
2027
Throughput Increase
+50%
Cu%
Long section looking north
Resource Pit
QB2 Sanction Case Pit
Surface
500m
0.15
0.8
0.5
0.3
0.05
QB Hypogene Reserves and Resources, Teck AIF 2021
Avg First 5-Years Incremental Production
136 or 151
Ktpa Cu Ktpa CuEq
20
Global Metals and Mining Conference
Quebrada Blanca Mill Expansion Cu-Mo (60%)
Advancing permitting and feasibility study
50% concentrator expansion to increase production
• Additional third grinding circuit and flotation line increases copper
throughput by 50%
• QBME builds on established water, tailings, concentrate transport, and
port infrastructure of QB2
Significant potential for future extensions and expansions
• Only 18% of 2022 R&R in current life of mine plan
• Potential for further concentrator expansions beyond QBME
Leverages QB2 footprint, infrastructure and experience
• Low capital intensity due to use of existing pipeline and port
• Permitting and regulatory approvals in progress; feasibility study
advancing, leveraging QB2 project team experience
Concentrator
Pipelines
Port Facilities
Desalination Plant
Power Line
Mine
3rd Grind &
Float Circuit
+ Tails
Thickener &
Water Pond
2nd Crusher
Additional desalination
module, filtering, storage
Illustrative Timeline
Q1
2023 2024 2025
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2026
Q1 Q2 Q3 Q4
2027
Tailings
Facility
Production
Permitting
Studies Construction
Detailed Engineering
Targeted
Sanction Window
Targeted Production
Increase
21
Global Metals and Mining Conference
EBITDA is a forward-looking non-GAAP financial measure. Zafranal is not an operating asset and there is no historical information with which to compare. C1 cash unit costs per pound is a
non-GAAP ratio. See “Non-GAAP Financial Measures and Ratios” slides.
Feasibility Study Production Profile and Financial Summary1
Path to Value Realization
• Continue prudent investments to de-risk the project including
improving capital and operating cost estimates
• SEIA submitted Q4 2021, SEIA approval expected H1 2023
After-Tax NPV8
US$1.1Bn
After-Tax IRR
24.6%
Initial Capex
US$1.2Bn
Payback Period
2.2 Years
Avg 1st 5 year2
C1 Cash Costs
US$1.16/lb
Avg 1st 5 year2
Head Grade
0.57% Cu
Avg 1st 5 year2
Production
125 kt Cu
42 koz Au
Avg 1st 5 year2
EBITDA
US$0.7Bn/year
Long Life Asset In Peru
• 19 year mine life with mine life extension
opportunities though pit expansion and district
resource development
Quality Investment
• Attractive front-end grade profile
• Mid cost curve forecast LOM C1 cash costs
• Competitive capital intensity
Mining Jurisdiction
• Strong support from Peruvian regulators including
MINEM and SENACE
• Engaged with all communities
Metal price assumptions: US$3.60/lb Cu; US$1,550/oz Au
0%
25%
50%
75%
100%
-
25
50
75
100
125
150
175
200
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
Cu Contained in CCT (kt) CuEq Contained in CCT (kt) EBITDA Margin (RHS)
Zafranal Cu-Au Porphyry (80%)
Feasibility complete, SEIA submitted in Q1 2022
Illustrative
Timeline
Targeted First
Production
Detailed Engineering
Q1
2023 2024 2025
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q3 Q4
2027 2028
Q1 Q2
Production
Permitting
Construction
Targeted Sanction Window
22
Global Metals and Mining Conference
Zafranal Cu-Au Porphyry (80%)
Near term growth opportunity
Advancing a high-quality Cu-Au development opportunity
• Update of the capital and operating cost estimates from the Q2
2019 Feasibility Study and Q1 2020 Feasibility Study Update are
underway with detailed engineering to commence in H2 2023
• Competitive capital intensity for this scale of development due to
site and concentrator design, proximity to established road
infrastructure, and modest elevation across the project site
Permitting & community engagement activities well-advanced
• The Zafranal team are working closely with SENACE, the
Peruvian Regulator, to complete the review and approval of the
Zafranal SEIA which is expected to be received in Q2 2023
• Community engagement activities, focused on community-based
capacity building, infrastructure, health, education, and tourism
continue building on a >10 years of positive engagement
Delivering on copper growth strategy
• Completing an updated capital and operating cost estimate and
advancing detailed engineering in H2 2023 allows for a H2 2024
sanction decision
Zafranal Deposit – View to the east-northeast
Mineral Reserve and Resources Statement1
Category Tonnes Grades Contained Metal
Reserves (Mt) Cu (%) Au (g/t) Cu (kt) Au (000 oz)
Proven 408.8 0.388 0.07 1,587 939
Probable 32.0 0.216 0.05 68 47
Total P&P 440.7 0.376 0.07 1,655 986
Resources (exclusive of Reserves)
Measured 5.1 0.19 0.04 10 6
Indicated 2.3 0.21 0.05 5 4
Total M&I 7.4 0.20 0.04 15 10
Inferred 62.8 0.24 0.10 150 212
23
Global Metals and Mining Conference
Contained Metal Copper Nickel Cobalt Palladium
M&I Resource (Mt) (Mt) (kt) (Moz)
NorthMet1,2 1.6 0.5 45 4.8
Mesaba3,4 7.0 1.6 132 5.5
Total 8.6 2.1 177 10.3
Use Case Electrification
Sufficient to
produce ~1.4TW
of wind capacity5
EV Batteries
Sufficient supply
for ~20M electric
vehicles6
EV Batteries
Supply for ~12M
electric vehicles7
Clean Air
Supply for ~38M
catalytic
converters8
NewRange Cu-Ni-Co-Pd-Pt Deposits (50%)
Responsible delivery of critical metals to support the transition to a low-carbon economy
Joint venture provides enhanced asset development path
• The Teck / PolyMet 50:50 JV combines the NorthMet and
neighboring Mesaba projects in the established Iron Range
region of Minnesota under one management team and
approach
• The partners complementary skillsets and relationships will
contribute to timely and successful development of NorthMet
Two large well-defined copper-nickel-PGM projects
• At NorthMet, the JV plans to build and operate a 29,000
tonnes-per-day mine and processing facility
• Mesaba is one of the world’s largest undeveloped
copper-nickel-PGM deposits with potential for multi-generational
production
Clear path to production
• JV is committing up to US$170M to position NorthMet for project
sanction in H1 2024 and advance Mesaba development options
• Potential development optimization with existing infrastructure in
the area and region
Major source of critical metals in North America
Use existing infrastructure for processing facilities
24
Global Metals and Mining Conference
Galore Creek Cu-Au-Ag Porphyry (50%)
Advancing a large, high-quality undeveloped Cu-Au-Ag deposit in NW British Columbia
25
Quality investment and partnership
• The project is owned by the Galore Creek Partnership
(Teck:Newmont 50:50) and managed by Galore Creek Mining
Corporation (GCMC)
• Strong technical, commercial, and community expertise in
GCMC is enhanced with contributions from the Partners
• Located in Tahltan territory ~370km NW of Smithers, BC
Long-life asset
• Among the highest-grade undeveloped copper-gold porphyry
deposits in the world with significant upside potential
• Updated Resources Statement in Q1 2023
Clear path to value realization
• A prefeasibility study is expected to be completed in H2 2023
• Leverage existing camps, equipment and tunnel start to
advance early-works to de-risk and shorten development
timeline
• Long-standing partnership with the Tahltan First Nation
including a supportive Participation Agreement
Mineral Resource Statement1
Exceptional discovery potential in under-explored district
Category Tonnes Grades Contained Metal
Resources (Mt)
Cu
(%)
Au
(g/t)
Ag
(g/t)
Cu
(kt)
Au
(000 oz)
Ag
(000 oz)
Measured 425.7 0.44 0.29 4.1 1,868 4,028 55,893
Indicated 771.2 0.47 0.22 4.8 3,647 5,410 118,193
Total M&I 1,196.8 0.46 0.25 4.5 5,515 9,438 174,086
Inferred 237.8 0.26 0.19 2.6 1,386 1,430 19,869
Global Metals and Mining Conference
Mineral Reserve and Resource Statements1
NuevaUnión Cu-Mo-Ag and Cu-Au (50%)
Strategic studies in progress to optimize asset value
26
Relincho deposit area
La Fortuna deposit area
Leveraging synergies and expertise in stable jurisdiction
• The NuevaUnión partnership combines the Cu-Au La Fortuna
deposit and the Cu-Mo-Ag Relincho deposit, located
approximately 40km apart in the established mining jurisdiction
of Huasco Province, Atacama region Chile
• Synergies include a reduced environmental footprint, shared
infrastructure, lower relative costs, improved capital efficiency,
an optimized mine plan, and enhanced community benefits
Future growth options
• Prefeasibility Study completed in 2018
• Strategic studies continue to build on recent technical, social,
and environmental studies, to advance the best commercial
development strategy
• Recent project activity has focused on optimization and strategic
trade-offs and asset reviews, which have demonstrated value
improvement opportunities as well as attractive potential
alternate development configurations with lower initial capital for
the asset, underpinned by the large, high quality resource base
Relincho Reserves & Resources Grade Contained Metal
Mineral Reserves Tonnes (Mt) Cu % Mo % Ag g/t Cu (kt) Mo (kt) Ag (000s oz)
Proven & Probable 1,554 0.35 0.016 1.54 5,412 247 76,896
Mineral Resources
Measured & Indicated 782 0.23 0.008 1.12 1,800 59 28,190
Inferred 725 0.36 0.012 1.29 2,611 88 30,278
La Fortuna Reserves & Resources Grade Contained Metal
Mineral Reserves Tonnes (Mt) Cu % Au g/t Ag g/t Cu (kt) Au (000s oz) Ag (000s oz)
Proven & Probable 682 0.51 0.47 0.79 3,476 10,225 17,441
Mineral Resources
Measured & Indicated 246 0.51 0.59 1.10 1,244 4,665 8,698
Inferred 480 0.43 0.39 0.96 2,076 6,107 14,789
Global Metals and Mining Conference
Schaft Creek Cu-Mo-Au-Ag Porphyry (75%)
Large-scale, open-pit development opportunity
27
Large-scale mineral resource in mining friendly jurisdiction
• The Schaft Creek Joint Venture (SCJV), between Teck and
Copper Fox Metals Inc., with Teck holding 75% interest and
acting as the operator
• Located in Tahltan territory ~61km south of Telegraph Creek
and 37 km northeast of Galore Creek
Long life asset
• 1,293 Mt Measured and Indicated Resources supports long
mine life (>20 years) with the potential for expansion and
improved development economics
Condensed footprint resulting in cost effective development
• A Feasibility Study completed in 2013 was followed-up with a
Scoping Study in 2020 (subsequently published as a PEA by
Copper Fox in 2021) significantly improves the investment case
• Compared to the 2013 FS, the 2021 PEA reduced strip ratio
reducing the size and cost of tailings and rock storage facilities
• Planned field work includes expanded environmental baseline,
focused geotechnical investigations, and facilities siting work
Category Tonnes Grades Contained Metal
Resources (Mt) Cu (%) Mo (%) Au (g/t) Ag (g/t) Cu (kt) Au (000 oz)
Measured 166.0 0.32 0.021 0.20 1.5 530 1,084
Indicated 1,127.2 0.25 0.016 0.15 1.2 2,826 5,494
Total M&I 1,293.2 0.26 0.017 0.16 1.2 3,355 6,578
Inferred 316.7 0.19 0.019 0.14 1.1 612 1,461
Cu-Mo-Au-Ag porphyry deposit of scale in Tahltan Territory
View south along Mess Valley
Mineral Resource Statement1
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Mine Life Extensions
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HVC 2040 Mine Life Extension Cu-Mo (100%)
Feasibility study and permit application in progress
Quality brownfield extension
• Extends existing HVC copper production of ~140ktpa of copper
per year with 1st production expected in 2027
• Project includes increased grinding capacity, flotation circuit
modifications, expansion of existing tailings facility, and
expanded mine fleet
Well understood asset and experienced workforce
• Operating experience and proven asset performance
• Well-understood orebody with additional resource potential
Permitting and feasibility study advancing
• British Columbia Environmental Assessment application in
progress, submission targeted in 2023
• Feasibility Study nearing completion
Additional Tailings
Storage
Valley Pit
Expansion
Highmont Pit
Expansion
Process
Plant
Upgrades
29
Illustrative Timeline
Construction
Permitting
Targeted
Sanction
Q1
2023 2024 2025
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2026
Q1 Q2 Q3 Q4
2027
Studies
Targeted Incremental
Production
Detailed Engineering Production
Global Metals and Mining Conference
Antamina Mine Life Extension Cu-Zn-Mo-Ag (22.5%)
Mine life extension project well-underway
Project extends life of world class asset
• Expansions of pit, dump and tailings facility will extend life of mine from
2028 to 2036
• Adds >600Mt of ore, maintains current production profile
• Extension options beyond 2036 under evaluation
Low-risk investment
• No development capital, ongoing sustaining investment required over
next decade for tailings expansion and mobile equipment
• Known orebody and proven production capability
Permitting in progress
• MEIA submitted in 2022, regulatory engagement ongoing
• Anticipated permit approval in 2023
Expanded Waste
Storage Facilities
Optimization of
Processing Plant
Pit Design
Expansion
+ Tailings
Capacity
Existing Infrastructure
MEIA updates
Property Boundary
New Conveyors
Mining Phase Development Tailings Expansion
2023 2024 2025 2026 2027 2028 2029 2030
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Illustrative Timeline
Permitting
30
Global Metals and Mining Conference
Red Dog: Aktigiruq Development Project Zn-Pb-Ag (100%)
Studies and resource definition advancing
Strategic zinc asset in key jurisdiction
• Teck controlled, world-class zinc district in Alaska
• Multiple high-grade deposits, ~10 miles from Red Dog
• Focus on Aktigiruq deposit, an exploration target of 80-150 Mt
@ 16-18% Zn + Pb
Capital efficient, large-scale underground mine
• Maintains zinc production post current Red Dog operations
• Uses existing Red Dog mill and infrastructure
Long investment horizon with multiple decision points
• Studies in progress to assess development alternatives
• Surface resource drilling ongoing
Aktigiruq
Su-Lik
Anarraaq
Qanaiyaq
Main
Aqqaluk
Illustrative Timeline
Mineralization zone
Pit Outline
2023 2024 2025 2026 2027 2028 2029 2030
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2031
Q1 Q2 Q3 Q4
Targeted First
Production
Targeted
Sanction
Construction Production
Permitting
Studies (including UG development access)
31
Global Metals and Mining Conference
Zinc Development
Options
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33
Red Dog District
Anarraaq (Zn-Pb), USA Teck 100%
~11 km from Red Dog operation; scoping study complete in 2014; existing study being optimized
Inferred Resources released in 2017 of 19.4 Mt @ 14.4% Zn, 4.2% Pb1
Aktigiruq (Zn-Pb), USA Teck 100%
~14 km from Red Dog operation; scoping study in progress
Significant mineralized system with exploration target* of 80-150 Mt @ 16-18% Zn + Pb2
Su-Lik (Zn-Pb), USA Su: Teck 100%, Lik: Teck 50% | Solitario Zinc Corporation 50%
~17 km from Red Dog operation; field work in progress and leveraging historical work
Lik: Indicated Resources of 18.1 Mt @ 8.1% Zn, 2.7% Pb3 and Inferred Resources of 5.34 Mt
@ 8.7% Zn, 2.7% Pb3. Su: Resource work is underway to confirm historical data
Cirque District
Cirque (Zn-Pb), Canada Teck 50% | Korea Zinc 50%
In west-central British Columbia and proximal to existing infrastructure
Resource work is underway to confirm historical data
McArthur River – Teena District
Teena (Zn-Pb), Australia Teck 100%
~7 km from Glencore’s McArthur River operation; conceptual study in progress
Inferred Resource of 58 Mt @ 11.1% Zn, 1.6% Pb4
Portfolio of Zinc Development Options
Australia
North America
1
2
1
2
3
Sullivan Mine
McArthur River Mine
3
Trail
Zinc belt
* Potential quantity and grade of this exploration target is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
Global Metals and Mining Conference
Zinc Development Options
Adding value to our high-quality portfolio of zinc development assets
Bar height = Size of the deposit. Aktigiruq bar heights = 12.8 to 25.4 Mt2 contained Zn + Pb
= Estimated grade, Teck | Other projects
= >10% Zn+Pb
Teck has several undeveloped high-grade zinc assets1 (>10% Pb + Zn)
located in favourable low-risk jurisdictions
Largest Undeveloped Zinc Deposits
MacMillan Pass is owned by Fireweed Zinc Ltd. and includes the Tom and Jason deposits. Teck currently has a 9% equity interest in Fireweed Zinc Ltd.
Zinc outperforms market expectations
• Declining production from existing primary zinc mines
• Underinvestment in global exploration for primary zinc deposits
• Long term demand outlook for zinc is strong, driven by decarbonization
which is galvanized steel intensive
Teck’s world class zinc business
• Teck is the largest net zinc miner in the world
• Large scale, low-cost, integrated business
• Attractive portfolio of development opportunities
• A long and sustained history of exploration in premier zinc districts
Path to value
• Leveraging copper growth experience to surface value from high quality
portfolio of zinc opportunities, asset by asset, over the next 4 – 6 years
• Prudent investment to further expand our understanding of each assets'
potential and associated development options
• Define commercial path to value for each project, either as a standalone
investment, partnership or through monetization
0%
5%
10%
15%
20%
25%
30%
35%
0
5
10
15
20
25
30
35
Contained
Zn
+
Pb
(Mt)
Grade
Zn
+
Pb
(%)
34
Global Metals and Mining Conference
High Quality Zinc Projects
Well-known, attractive jurisdictions
Red Dog
Anarraaq
Aktigiruq
Su-Lik
Delong Mountain Port Cirque Akie
Sullivan Mine
Brooks Range
Vancouver
Teena
McArthur
River Mine
Carpentaria Gulf
Bing Bong Port
Chukchi Sea Kechika Trough
Belt Purcell
McArthur Basin
100 km 100 km 200 km
Zinc belt
USA – Alaska
Red Dog (Zn-Pb): outstanding high-grade
potential mine life extension in a premier district
• District know-how with extensive operational
experience
• Opportunity to extend mine life by leveraging
existing infrastructure
• Multiple high-quality opportunities
Canada – BC
Cirque (Zn-Pb): attractive deposit in
an emerging district
• Proximity to road and rail linked to port and
Trail smelting/refining operation
• Leveraging local know-how and district synergies
to assess development options
• Advance through partnership
Anarraaq and Aktigiruq: Teck 100%
Su-Lik: Su: Teck 100%, Lik: Teck 50% | Solitario Zinc Corp. 50%
Teena: Teck 100% Cirque: Teck 50% | Korea Zinc 50%
Pacific
Ocean
Trail
Australia – Northern Territory
Teena (Zn-Pb): significant discovery in
an established district
• 2013 discovery in a world-class zinc district
with excellent infrastructure
• Build upon existing Australian team to create
path to value for this high-grade asset
• Standalone or partnership opportunity
35
Global Metals and Mining Conference
36
Base Metals Business Units –
Copper and Zinc
Global Metals and Mining Conference
37
Base Metals Portfolio Underpinned By
Four Cornerstone Operating Assets
2023E
Production1
(Cu Eq kt)
C1 Cash Cost2
($/lb Cu Payable)
Reserve Life /
Current Extension
Proposal (Yrs.)3
Antamina
(22.5 % ownership)
133
$0.18/lb
6 / +9
High quality, proven
copper-zinc producer
Highland Valley
(100% ownership)
116
$1.61/lb
7 / +15
Largest base metals
mine in Canada
QB2
(60% ownership)
3202 (2024)
(QBME +140, beginning 2027)
$1.50/lb
27 / + Future
Life Extension
Scaling to top 10 copper
mine in the Americas,
potential to be
top 5 globally
Red Dog
(100% ownership)
645
(Zn Eq kt)
$0.55/lb Zn Payable
8 / + Future
Life Extension
Largest and
highest-grade zinc
mine globally
Global Metals and Mining Conference
38
Copper Business Unit
EBITDA is non-GAAP financial measure. See “Non-GAAP Financial Measures and Ratios” slides.
Production1 (kt)
Profitability ($M) Carbon Intensity Curve2 (t CO2 e/t CuEq)
2021 2022 2023E 2024-2026E
HVC Antamina Andacollo QB
1,686
603
116
248
385
438
2021 2022
EBITDA
1,289
EBITDA
2,187
D&A
Finance Expense
Profit before Tax
Cumulative production (million tonnes)
Teck
Top 20 copper producer; potential Top 101 through copper growth pipeline
• Four operating mines in the Americas
• Industry leading copper growth, with potential to add >1.5 Mt copper equivalent production, through a
mix of green and brown field development projects
• QB2 expected to double our consolidated copper production at full capacity
• Focus on operating discipline, as core for cost management
• Continuing to explore and implement innovative technologies
286 270
418
593
Global Metals and Mining Conference
39
Copper Unit Costs
Cost of Sales in 2022 (C$)
Net cash unit cost per pound is a non-GAAP ratio. See “Non-GAAP Financial Measures and Ratios” slides.
2021 2022 2023E
$1.56
$1.70
Net Cash Unit Costs2 (US$/lb)
C1+ Cash Cost Curve1 (US$/lb, 2024E)
$1.39
-100
0
100
200
300
400
500
600
700
0% 25% 50% 75% 100%
QB2
Antamina
2024 Costs Based on WM Forecast Prices Current Spot LME Price Operating
Costs
73%
Transportation
7%
Royalties
2%
Depreciation &
Amorts.
18%
Operating Cost Breakdown
Labour 27%
Contractors & Consultants 13%
Operating Supplies 16%
Repairs & Maintenance Parts 17%
Energy 21%
Other 6%
Total 100%
Global Metals and Mining Conference
40
Concentrator
Pipelines
Port Facilities
Desalination Plant
Tailings Facility
Power Line
Mine
10 km
Pit, concentrator,
and tailings facility
120 Mtpa of mine material movement
143 ktpd concentrator with two grinding and flotation lines
12 km tailings launder and reclaim water systems
1.4 Bt capacity tailings facility
4200 m3/hr desalination plant
Concentrate dewatering
Port facility and shiploader
Water production and
concentrate shipping
Mine Area
Linear Works
Port Area
165 km long water supply pipeline
165 km long concentrate transport pipeline
High voltage power transmission line
Water and
concentrate transport
Quebrada Blanca
Infrastructure spans from port to mine, and from sea level to 4400 metres elevation
Global Metals and Mining Conference
Organizational Chart
• The government of Chile owns a 10% non-funding interest in
Compañía Minera Teck Quebrada Blanca S.A. (CMTQB)
through its state-run minerals company, Empresa Nacional de
Minería (ENAMI)
• ENAMI has been a partner at QB since 1989 and is a 10%
shareholder of Carmen de Andacollo
• ENAMI is not required to fund QB2 development costs
• Project equity funding in form of:
‒ 25% Series A Shares
‒ 75% Shareholder Loans
• Until shareholder loans are fully repaid, ENAMI is entitled to a
minimum dividend, based on net income, that approximates
2.0-2.5% of free cash flow
‒ Thereafter, ENAMI receives 10% of dividends/
free cash flow
CMTQB
TRCL
ENAMI
Teck
10%
(Series B)
100%
90%
(Series A)
JVCo
SMM
66.67%
100%
33.33%
SC
83.33% 16.67%
Chile HoldCo
QB1 / QB2 / QBME
ENAMI Interest in Quebrada Blanca
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Global Metals and Mining Conference
Quebrada Blanca Accounting Treatment and
QB2 Project Finance Facility
Balance Sheet
• 100% of project spending
included in property, plant and
equipment
• Debt includes 100% of project
financing
• Total shareholder funding to
be split between loans and
equity approximately
75%/25% over the life of the
project
• Sumitomo (SMM/SC)1
contributions will be shown as
advances as a non-current
liability and non-controlling
interest as part of equity
• Teck contributions, whether
debt or equity, eliminated on
consolidation
QB2 Project Finance
Facility
• Pre-completion, senior debt is
guaranteed on a pro-rata basis
(after consideration of
ENAMI’s 10% carried interest)
‒ Teck 66.67%
‒ SMM 27.77%
‒ SC 5.56%
• Senior debt becomes non-
recourse after successfully
achieving operational
completion tests
• Semi-annual amortization
payments of US$147 million
will begin no later than
June 15, 2023; facility matures
in 2031
• The facility requires partial
debt repayment upon dividend
distribution to equity partners
Cash Flow
• 100% of project spending
included in capital
expenditures
• Sumitomo1 contribution
recorded within financing
activities and split
approximately 75%/25% as:
‒ Loans recorded as
“Advances from Sumitomo”
‒ Equity recorded as
“Contributions from Non-
Controlling Interests”
• 100% of draws on project
financing included in financing
activities
• After start-up of operations
‒ 100% of profit in cash flow
from operations
‒ Sumitomo’s1 30% and
ENAMI’s 10% share of
distributions included in
non-controlling interest
Income Statement
• Teck’s income statement will
include 100% of QB’s
revenues and expenses
• Sumitomo’s1 30% and
ENAMI’s 10% share of profit
will show as profit attributable
to non-controlling interests
42
Global Metals and Mining Conference
43
604 687
47
38
230
273
2021 2022
D&A
Finance Expense
Profit before Tax
Zinc Business Unit
EBITDA is non-GAAP financial measure. See “Non-GAAP Financial Measures and Ratios” slides.
Production1 (kt)
Profitability ($M)
Largest net zinc miner globally
• One operating mine in Alaska and one metallurgical complex in British Columbia
• Red Dog is a top-tier zinc asset, with strong production extending over the next five years
• Continuing to evaluate and advance early-stage zinc projects
Net Zinc Mining Companies2 (kt)
Cumulative production (million tonnes)
Teck
Carbon Intensity Curve3 (t CO2 e/t ZnEq)
Teck
Public Company Private Company
EBITDA
998
EBITDA
881
2021 2022 2023E 2024-
2026E
Red Dog (conc.) Antamina (conc.)
Trail (refined)
607
279
648
262
620
280
600
295
Global Metals and Mining Conference
44
2021 2022 2023E
Zinc Unit Costs
Cost of Sales in 2022 (C$)
Net cash unit cost per pound is a non-GAAP ratio. See “Non-GAAP Financial Measures and Ratios” slides.
$0.44
$0.55
Net Cash Unit Costs2 (US$/lb)
Total Cash + Capex Cost Curve 20233 (US¢/lb)
$0.30
-50
0
50
100
150
200
0% 25% 50% 75% 100%
Red Dog
Antamina
2023 Costs Based on Current Prices Current Spot LME Price
Operating Cost Breakdown
Labour 35%
Contractors & Consultants 11%
Operating Supplies 12%
Repairs & Maintenance Parts 9%
Energy 19%
Other 14%
Total 100%
Operating
Costs
24%
Transportation
8%
Royalties
11%
Depreciation &
Amorts.
5%
Raw
Material
Purchases
52%
Global Metals and Mining Conference
Red Dog Seasonality
Sales
• Operates 12 months
• Ships ~ 4 months
• Shipments to inventory in Canada and Europe;
Direct sales to Asia
• ~63% of zinc sales in second half of year
• ~100% of lead sales in second half of year
• Sales seasonality causes net cash unit cost seasonality
Unit Costs
• Seasonality of Red Dog net cash unit costs largely due
to lead sales during the shipping season
Zinc Sales1 (%)
Five-Year Average Red Dog Net Cash Unit Costs2 (US$/lb)
Lead Sales1 (%)
45
Net cash unit cost per pound is a non-GAAP ratio. See “Non-GAAP Financial Measures and Ratios” slides.
0.50 0.50
0.18
0.37
Q1 Q2 Q3 Q4
24%
13%
34%
29%
Q1 Q2 Q3 Q4
0% 1%
72%
27%
Q1 Q2 Q3 Q4
Global Metals and Mining Conference
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Steelmaking Coal
Business Unit
Global Metals and Mining Conference
47
Cumulative production (million tonnes)
50 150
100 200 250
Steelmaking Coal Business Unit
Highest quality HCC leading to amongst the lowest CO2 emissions in steelmaking coal
EBITDA is non-GAAP financial measure. See “Non-GAAP Financial Measures and Ratios” slides.
Production1 (kt)
Profitability ($M) Carbon Intensity Curve2 (t CO2e/t saleable coal)
Teck
Second largest seaborne steelmaking coal supplier
• Tier one Canadian asset portfolio with ability to generate significant cash flow through the cycle
• High quality, low emissions hard coking coal sought after by the world’s largest steelmakers
to help reduce their emissions
• Top quartile delivered operating margins supported by stable mining drivers
• Integrated operations with dedicated logistics system supports
• Proven operating resilience with >50 years continuous operations
2,847
5,952
91
86
872
963
2021 2022
D&A
Finance Expense
Profit before Tax
EBITDA
7,001
EBITDA
3,810
24.6
21.5
25.0 25.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
2021 2022 2023E 2024-2026E
Teck’s premium HCC has industry-leading
CO2 efficiency and will be increasingly
competitive with rising CO2 prices
BRITISH COLUMBIA ALBERTA
Crowsnest
Pass
Fording River
9 Mtpa
Greenhills
6 Mtpa
Line Creek
3.5 Mtpa
Elkview
9 Mtpa
Elkford
Sparwood
Fernie
Cranbrook
95
95A
93
3
43
95
Plant Capacity of 27-28Mtpa
Local Communities
Steelmaking Coal Operations
Neptune Bulk Terminals (100% of coal operations)
Global Metals and Mining Conference
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64 65
89 92
41 44
47 47
2020 2021 2022 2023E
Other Transportation Adjusted Site Cash Cost of Sales
Steelmaking Coal Margins and Unit Costs
Cost of Sales in 2022 (C$)
Unit costs per tonne and adjusted site cash cost of sales per tonne are non-GAAP ratios. See “Non-GAAP Financial Measures and Ratios” slides.
$139
Unit Costs2 (C$/tonne)
Seaborne Steelmaking Coal Delivered Operating
Margin1 (Wood Mackenzie, 2022) (US$/t)
Operating
Costs
50%
Transportation
26%
Depreciation &
Amortization
24%
Operating Cost Breakdown
Labour (Internal & External) 41%
Operating Supplies & Parts 31%
Energy 19%
SG&A and Other Costs 9%
Total 100%
$199
$193
$170
$136
$111
$108
Global Metals and Mining Conference
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High-Quality HCC Drives Premium Pricing
40% Asia (ex-China, India)
30% China
15% India
10% Europe
5% Americas
Teck achieves ~92% average realization on benchmark HCC
75%
high-quality HCC
25%
SHCC, SSCC, PCI
Varies based on mine plans
40%
quarterly indexed contracts
60%
spot FOB and CFR
Teck Product Mix Sales Mix / Pricing Mechanism
-
20
40
60
80
50% 60% 70% 80% 90% 100%
CSR %
Drum Strength DI (%)
30
15
US
Canada
Australia
South Africa
Australia
HCC and
Canada
Teck HCC1
comparable with top premium
product from Australia
US
HCC
Australia
SSCC
South Africa
Premium Pricing through Market Diversification
Teck 2022 steelmaking coal revenue %
Global Metals and Mining Conference
50
CHINA
2017: ~15%
2019: ~10%
2022: ~30%
INDIA
2017: ~10%
2019: ~15%
2022: ~10%
AMERICAS
~5%
EUROPE
2017: ~20%
2019: ~15%
2022: ~10%
ASIA EXCL.
CHINA & INDIA
2017: ~45%
2019: ~55%
2022: ~45%
2nd Largest Seaborne Steelmaking Coal Supplier
Competitively positioned to supply steel producers worldwide
50
Sales Distribution
Targeted
increased
sales to China
in 2021/2022
to capture
CFR China
price premium
Global Metals and Mining Conference
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Kamloops
Elk Valley
Vancouver
Prince Rupert
Trigon Terminals
Neptune Terminals
Westshore Terminals
USA
British Columbia
Steelmaking Coal Supply Chain Overview
Underpins resilience while providing flexibility to maximize margins
Neptune Bulk Terminals (>18.5 Mtpa)
• 100% ownership of coal-handling facilities
• Primary terminal for market access, with competitive
cost of service structure
Westshore Terminals (5-7 Mtpa)
• Provides volume flexibility
• Contract expires Q4 2027
Trigon Terminals (Ridley) (6 Mtpa)
• Alternative for sprint and recovery volume
• Contract expires Q4 2027
Rail
• Commercial arrangements in place to support fluid
movement of trains to all three Westcoast terminals
• 5% of annual volumes eastbound
• Pilot program to integrate CP Rail’s hydrogen
locomotives into Teck’s supply chain
• Agreements with CP Rail and CN Rail expire in
Q4 2026
Global Metals and Mining Conference
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• Monitoring data showing:
‒ Reducing selenium trend in the
Fording River
‒ Stabilized selenium trend in the
Elk River and Koocanusa
• Expect further reductions in
Fording, Elk and Koocanusa as
treatment increases
Water Treatment Facilities to 2027
millions of litres per day
2020 to 2022
Transitioning from
AWTF to SRF
2023 to 2027
Additional SRF treatment capacity
to meet future requirements
Pre-2020
Initial facilities
completed, successful
SRF at Elkview
Fording River
North 2
(Phase 1)
2020 2022 2027
West
Line Creek
(Phase 1&2)
Elkview
(Phase 1)
Elkview
(Phase 2)
Fording River
South
Fording River
North 1
(Phase 1&2)
North
Line Creek
Fording River
North 1
(Phase 3)
Elkview
(Phase 3)
Greenhills
Creek
+4x
+8x
7.5
10 17.5
10
20
30 77.5
10
20
15
7.5
12.5
142.5
Active Water
Treatment
Facility
Saturated Rock Fill
Complete
Under Construction
Future Facility
Achieving Water Quality Improvements
Stabilizing and reducing selenium levels in the watershed
Global Metals and Mining Conference
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Copper Market
Global Metals and Mining Conference
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Copper Outlook
• Smelter capacity increases set
for China, India, Indonesia and
Africa over next 5 years
• Refined copper production
restricted in H2 2023 on
consolidated smelter
maintenance
• Global cathode inventories
remain low, seasonal peak lowest
on record
• Physical cathode premiums
remain low on higher scrap
availability and weaker demand
• Decarbonization growth
accelerating
• Energy transition expected to
account for 60% of copper
demand growth
• Government support and
corporate initiatives fuel growth
• Renewable energy demand just
starting to roll out
• Technology lowering intensity of
use in electric vehicles just as
production growth accelerates
Consumer demand pauses; decarbonization pushes ahead
Raw material supply constrained
• European consumer market
headed for potential recession
• Government spending on energy
transition still positive
• China’s return has been slower
than expected; lockdowns
starting to ease in China
• Inflation and high interest rates
weighing on consumer demand
• Mine production expected to peak
in 2024, later and lower than
previously forecast
• Operating costs, capex rising
• Production disruptions reached
all time high in 2022
• Investment in new projects slow
to materialize
• 2022 concentrate imports by
China up 8.5%, highest on record
Global Metals and Mining Conference
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Copper Mine Outlook
Copper Mine Production and Demand1 (kt)
• Significant demand growth expected due to
energy transition to renewables
• Supply expected to peak in 2024, given declining
grades, protracted permitting timelines, and
underinvestment
• Long-term projected deficit will require significant
investment
• Mine production grew 7 Mt in the last 20 years,
market needs double that in less than 17 years
• Increasing costs will likely push price floor higher
‒ 90th percentile costs is historical support level
• Consensus forecasts suggest that at the low end
for 2023 – 2024 forecasts, prices could trend into
the 90th percentile, capping investment
0
100
200
300
400
500
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024
90th
75th
50th
25th
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2014 2019 2024 2029 2034 2039
13.2 Mt
mine supply
gap by 2040
projected
Copper Prices and Costs2 (US$/lb)
Global Metals and Mining Conference
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Copper Mine Production Remains Challenged
Mine Disruptions1 (kt)
• Guidance misses could hit record highs in 2022
• Chilean mine production off 7.2% or 350kt YTD
September, lowest since 2011
• South American mine production still below 2019
• Growth in 2023/2024 centered on small number
of large mines potentially facing start up issues
• Mine growth beyond 2023/2024 limited in scope,
but higher in risk
• >80% of current committed mine projects
sanctioned prior to pandemic
• Uncommitted nearby projects remain limited,
challenged and face increased capex
South American Mine Production2 (kt)
0
100
200
300
400
500
600
700
800 Average Monthly Operating Rate
Chile
Peru
-1,800
-1,300
-800
-300
200
2005 2007 2009 2011 2013 2015 2017 2019 2021 2023
3.6%
2.7%
4.0%
6.6%
4.5%
7.1%
5.1%
YTD
Global Metals and Mining Conference
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Copper Mine Supply Expected to Peak in 2024
Global Copper Mine Production1 (kt contained)
• Long permitting timelines and lack of investment
impacting long term supply
• Mine production expected to increase only 2.5 Mt
by 2027
• Chinese mine production expected to be flat to
2027 on lack of resources
• Six mines expected to account for 75% of the
increase to 2027
• Mine reductions and closures expected to reduce
supply post 2024
• CRU estimates $105G required to fill the 2032
supply gap
Significant mine increases to 20272 (kt contained)
17,000
19,000
21,000
23,000
25,000
2021 2022 2023 2024 2025 2026 2027
2021-2023
+2,090kt
2023-2025
+850 kt
2025-2027
(410) kt
0 50 100 150 200 250 300 350 400 450
Rajo Inca
Grasberg
Manto Verde
Timok
OK Tedi
Salobo II
Glogow Gleboki
Almalyk
Kansanshi - S3
Quebrada Blanca 2
Quellaveco
Oyu Tolgoi
Kamoa-Kakula
Expansion Greenfield
Global Metals and Mining Conference
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Annual TC/RCs Rise on Higher Smelter Costs
Spot TC/RCs rise on new mine supply and smelter delays
TC/RCs1 (US$/lb)
New Smelter Capacity2 (kt/yr)
$0
$20
$40
$60
$80
$100
$120
$140
Annual/Mid Year Spot
2022 2023 2025
2024
0
100
200
300
400
500
600
Ex-China China
• Projection of increased mine production in 2023
pushed up annual fees paid to smelters
• Spot TC/RCs moved below annual TC/RCs in
Q1 2023 on mine disruptions
• Chinese smelters expected to add 700-800kt of
smelting capacity
• Chinese scrap supply increasing in Q1 2023 as
recycling activity increasing after re-opening
• Chinese concentrate imports reach record high in
2022 up 8.1% and up further 5% in Q1 2023
• Construction started on next wave of ex-China
smelters (India/Indonesia/Africa)
Global Metals and Mining Conference
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Copper Concentrate Market Outlook
Untenable deficits post 2025 will require new supply
Concentrate Balances, excl. Uncommitted Projects1 (kt)
-1000
-800
-600
-400
-200
0
200
400
2022 2023 2024 2025 2026 2027
Teck CRU (Adj) WoodMac (Adj) S&P
• Smelter capacity expected to grow strongly from
2023
• Unlikely to absorb all concentrate from new and
existing mines
• Surpluses in 2023/2024 still relatively small,
recent events show an increase of 1.2% in mine
disruptions would eliminate surplus
• Uncommitted projects are needed to fill shortfall
• Without adjustments that either delay smelter
ramp ups or increase committed mine
production, concentrate stocks will be depleted
by 2026
Global Metals and Mining Conference
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Long Term Copper Metal Demand Growth
Driven by Energy Transition
Total Copper Demand1 (Mt)
• Metals enable decarbonization, facilitating the
reduction of GHG emissions through renewable
power and electrification
• Under an International Energy Agency (IEA)
1.5˚C scenario:
‒ Growth of >20 Mt expected by 2035 years
‒ Copper use in the energy transition will
account for 45% of copper demand by 2050
• CRU estimates that global energy transition
could account for 60% of copper demand growth
over the next 5 years
Copper First Use and End Use Demand2
67%
55%
28.8
68.5
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2020 2025 2030 2035 2040 2045 2050
Non-Energy Transition Specific Electric Vehicles
Solar Wind
Storage Chargers
Grid Related
Consumer &
General
22%
Transport
11%
Industrial
Machinery
11%
Construction
28%
Electrical
Network
28% Non-Energy
Transition
Specific
52%
Grid Related
24%
Electric Vehicles
16%
Copper End Uses (2035)
Copper First Use (2020)
Energy
Storage
1%
Charging
Stations
1%
Solar
3%
Wind
3%
28.8 Mt
Total
48.8 Mt
Total
Global Metals and Mining Conference
61
0
2
4
6
8
10
12
14
16
0
200
400
600
800
1,000
LME Stocks Comex Stocks
SHFE Stocks Bonded Estimate
Days of Consumption Total Stocks LTA Total
Copper Short Term Outlook
Copper Metal Premiums1 (US$ per pound)
• Physical demand in Europe remains supportive
‒ LME stocks at historic lows globally
‒ Russian exports shift to China
‒ Europe to import more/export less
• Operating costs, logistics costs, financing costs,
decarbonization costs, all rising – pushing
contract premiums higher
‒ 2023 European premium up 230%
‒ New green cathode premium in Europe
• Restocking required to bring market back to
balance could add >780kt to apparent
consumption
• Chinese consumer demand in 2023 incentivized
by drop in lending rates
• Green energy to drive Chinese copper demand
Global Copper Stocks2 (Mt & Days of Consumption)
750t needed
to restock
0
100
200
300 USA Mid-West Delivered Shanghai Grade A CIF
Germany Grade A - Delivered Codelco Benchmark Europe
25-year average stock days of consumption: 15 days or 1.1Mt
Global Metals and Mining Conference
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Copper Scrap is Part of the Long Term Solution
Lower prices are restricting short term scrap supply
Copper Scrap1 (kt)
• Scrap availability tends to fluctuate with copper
prices in the short term
• Copper scrap is 33%1 of total copper demand
and could rise to 40% by 2035
• However, scrap availability remains tight, as
shipments continue to be restricted by logistics
issues and trade barriers
• Over the next decade scrap availability may
increase, but trade flows are likely to change as
new secondary processing facilities are built
outside of China
• An improvement of 2% in global recycling rates
could provide up to 1.0Mt to global supply
China Copper Scrap Imports vs. New Capacity2
0
5,000
10,000
15,000
20,000
2020 2022 2024 2026 2028 2030 2032 2034
33%
40%
ROW
19%
Taiwan
4%
Korea
4%
Hong
Kong
5%
Thailand
6%
USA
14%
Japan
14%
Malaysia
17%
Europe
17%
China Imports
China
43%
India
7%
Japan
5%
Korea
3%
Germany
7%
Italy
7%
USA
10%
Mexico
3%
Others
15%
New Secondary Capacity
Clean
Scrap
Refinery
Scrap
Obsolete
Scrap
1.4 Mt
Total
1.7 Mt
Total
Global Metals and Mining Conference
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Transportation
• EV demand drove 1Mt of copper foil
investments for batteries in 2021
• Projected roll out rates for EVs have
increased 37% in the last year
• Requirements for charging stations
expected to more than double by 2035
Wind
• Copper demand from wind power expected
to more than double by 2035
• Offshore wind could grow 7x (base case)
and >13x
Electrification
• Requirements for new electric grid
infrastructure to support higher electricity
output could add an additional 4Mt to
copper demand to meet IEA 1.5˚C
scenarios
Solar
• Copper solar growth from several
components including inverters, wire and
cable, transformers, solar trackers and
more
• By 2035: Solar demand could increase by
235kt under base case assumptions and by
1.1 Mt under an IEA 1.5˚C scenario
Significant Demand Growth Expected
Due To Energy Transition To Renewables
Global Metals and Mining Conference
64
Copper Metal Outlook
Global Visible Refined Copper Stocks (kt) and LME Price1 (US$/lb)
• Global exchange stocks well below historic levels
• Stocks declining since 2013 peak, down 1.3Mt
• Stocks have fallen 300kt since end Q2 2022
• Total global stock days 3.4 days, down from
long term average of 15 days
• Market deficits on supply disruptions continue
through COVID lockdowns
• New mine supply coming in 2023 will only
partially offset lower demand growth
• Risks to supply increasing at same time as
concerns grow over demand growth
CRU Historic Global Cathode Balance2 (kt)
(400)
(300)
(200)
(100)
-
100
200
300
400
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
(est)
5-year average US$3.52/lb; 10-year average US$3.10/lb
0¢
100¢
200¢
300¢
400¢
500¢
0
200
400
600
800
1,000
1,200
1,400
1,600
LME Stocks Comex Stocks SHFE Stocks Bonded Estimate LME Price
Global Metals and Mining Conference
65
Structural Deficits Grow Post 2025
Committed projects push market into temporary surplus
Refined Global Cathode Balance Quarterly Change, excl. Uncommitted1 (kt)
-1600
-1400
-1200
-1000
-800
-600
-400
-200
0
200
400
600
2021 2022 2023 2024 2025 2026 2027
CRU (Adjust) S&P Global WM (Adjust) Teck
Still projecting deficits on weaker short term demand
• Physical demand still strong revising up
short-term growth
• New energy demand strong; regional energy
security priority over GHG emissions
• Chinese new energy vehicle production in 2022
reached 7 million units, expected to be ~10 million
in 2023
• Auto sales in Europe/N.A. up in Q1 2023 on
higher fleet sales; production still below pre-Covid
levels - strong pent-up demand remains
• Chinese copper demand picked up since March,
driven by infrastructure and new energy, which
would be the major drivers in 2023
Global Metals and Mining Conference
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Zinc Market
Global Metals and Mining Conference
67
Zinc Outlook
• Smelters suspended in Europe
on high energy prices
• Close to 30% of European annual
capacity idled
• North American smelters
struggled in 2022, improved
outlook for 2023
• Global metal inventories drawn
down to historic lows; all
rebuilding happening in Asian
warehouses
• Physical premiums rise in US and
EU to record highs
• Decarbonization growth
accelerating, benefits zinc
• Government and corporate
initiatives fuel support for
renewable infrastructure
• Wind energy, solar energy, all
supported by galv. steel
• IZA suggests additional 375kt of
demand from renewables by
2030
Consumer demand pauses; decarbonization pushes ahead
Raw material supply increasing; smelters constrained
• European consumer market
headed for potential recession
• Auto sales/production in EU
weak; accelerating in North
America.
• China continues to destock
through the zinc value chain
primarily at fabricators
• Mine production expected to peak
in 2025
• South American zinc production
still below pre-COVID levels
• Investment in new projects slow
to materialize
• Concentrate imports by China hit
record high in 2022; imports
continue through Q1 2023 up
30%
• Concentrate import gains exceed
metal import losses in last 9
months
Global Metals and Mining Conference
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0
2,500
5,000
7,500
10,000
12,500
15,000
17,500
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
Zinc Concentrate Outlook
Zinc Mine Production and Demand1 (kt)
• Long term supply lags demand, with declining
production at higher costs/lower grades from
existing mines and exploration under investment
• 60% of demand tied to protection of steel;
decarbonization is steel intensive
• Continued demand growth with reduced
inventories and strong physical premiums
• Mine costs are on the rise as TC rise and
consumable increase.
• Incremental production came from higher cost or
lower grade extensions, increasing C1 and
sustaining capital costs by 22% since 2014
• 75th percentile is historical support level
Zinc Prices and Costs2 (US$/lb)
0
25
50
75
100
125
150
175
200
225
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024
90th
75th
50th
25th
6.9 Mt
mine supply
gap by 2040
projected
Global Metals and Mining Conference
69
Zinc Mine Supply Expected to Peak in 2025
Global Zinc Mine Production1 (kt contained)
• Mine production projected to fall by nearly 1.0 Mt
by 2030
‒ Represents a potential 2.0 Mt shortfall to
expected smelter production
‒ Production from established zinc mines only
increased by 1.5% since 20131
• No shortage of zinc supply, in the short term,
as smelter cuts and mine growth will allow mine
supply to exceed smelter demand to 2024
• Beyond 2024 additional production will be
required
• However, recent record prices failed to move
significant production forward
‒ Only <0.5 Mt from <10 new projects
committed
Significant mine increases to 20272 (kt contained)
0
5,000
10,000
15,000
2021 2022 2023 2024 2025 2026 2027
2021-2023
-77 kt
2023-2025
+590 kt
2025-2027
(-488) kt
0 50 100 150 200 250 300 350 400
Neves Corvo
Aripuana
Asmara
Vares
Taifeng
Zhugongtang
Zhairem
Korbalikhinsky
Gamsberg
Buenavista
Kipushi
Ozernoye
Expansion Greenfield
China
ROW Others
Global Metals and Mining Conference
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Annual and Spot TC/RCs Rise in 2022 and 2023
TC/RCs1 (US$/lb)
• Annual TC/RCs rose in 2022 and again in 2023
• Spot TC/RCs remained started climbing in 2022
but have been falling since December
• Higher zinc prices, higher TCs and higher
physical premiums are providing strong revenues
for smelters.
• Imported concentrates back to being more
profitable. Chinese profitability up 13% YoY
• Chinese mines’ winter shutdown narrowed price
differential to imported. Imported concentrates
continue to increase up 30% in Q1
• Chinese smelters delaying routine maintenance
in fear of falling import TCs in coming months
Chinese Concentrate Import Profitability2 (RMB)
0
100
200
300
400 Spot TC Benchmark TC
2023
Q1 spot TCs up
82% vs. Q1 2022
& down -4% QOQ
Annual TCs
up 19% YoY
(4,000)
(2,000)
0
2,000
4,000
6,000
Imported Concs P&L Domestic Concs P&L
Global Metals and Mining Conference
71
Chinese Zinc Mine Growth Continues to be Limited
Chinese Zinc Mine Growth Estimates1 (kmt contained)
Zinc Ore Grades at Chinese Mines2 (Ore grade, zinc %)
100
350
270
180
300 250 237
100 100 100 50 80 100
360
200
-630
83
-38
-153
40
-50
50 0 0
-800
-600
-400
-200
0
200
400
600
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023E2024E2025E
Early-year estimate Adjusted estimate
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Operating zinc mines Zinc mine projects
• Delayed projects and decreasing ore grades
continue to impact Chinese mines
• Chinese mine production flat since 2018
• Chinese mine production growth continues to be
limited, projections by domestic analysts see
limited growth out to 2025
• New mine production growth offset by:
‒ Environmental/safety restrictions
‒ Falling grades
‒ COVID related disruptions
‒ Power restrictions
• Several large projects in the pipeline in China,
but average grade below 3.0%; high operating
costs have kept these projects offline
Global Metals and Mining Conference
72
Zinc Concentrate Market Outlook
Upcoming deficits will require new mine supply
Concentrate Balances, excl. Uncommitted Projects1 (kt)
-1200
-1000
-800
-600
-400
-200
0
200
400
600
800
2022 2023 2024 2025 2026 2027
Teck CRU (Adj) WM (Adj)
• Smelters idled in 2022 on high energy costs will
likely return by H2 2023
• Short term concentrate surpluses will create a
two-tiered market, based on quality
• Lack of investment and low metals stocks will
require additional zinc units post 2025
• Zinc-focused exploration investment has only
been 26% of copper-focused exploration
investment over the past 5 years1
• Few quality greenfield or advanced exploration
opportunities surfaced in the last 10 years
‒ Except Teck’s Teena discovery in Australia
and the Hermosa Pb-Zn project in Arizona
Global Metals and Mining Conference
73
Zinc Metal Short Term Outlook
US Net Short Position in Zinc1 (kt)
• US produces less than 25% of its demand for zinc
• North America meets only ~80% of US demand
• Over the past decade, a shortfall of 150-275 kt/yr existed
beyond N.A. output and imports
• In 2012, there was >1.2 Mt of zinc metal in the US in LME
warehouses
• Today, US LME inventories are nil and Europe is no longer in a
position to support US deficits, driving physical premiums higher
Zinc Metal Premiums3 (US$ per tonne)
0
200
400
600
800
1,000
1,200
1,400
2012 2014 2016 2018 2020 2022 2024
U.S. Production Zinc from Canada Zinc from Mexico
Zinc from Others U.S. Zinc Demand
$0
$200
$400
$600
$800
$1,000
$1,200
European US Midwest
Global stocks have been filling the void2 (kt)
0
500
1,000
1,500
LME Comex SHFE Bonded Estimate
US market remains strong
LME inventories filled shortfall since 2012 but now depleted
Global Metals and Mining Conference
74
U.S. Bipartisan Infrastructure Bill
$1 trillion investment to further galvanize U.S. demand
• Largest investment in public transportation
‒ 24,000 buses, 5,000 rail cars, 200 station,
thousands of miles of track, power systems
• Investment in passenger rail:
‒ Modernize Northeastern Corridor
‒ Expand coverage, complete maintenance
• 45,000 bridges nationwide to be overhauled or
replaced
• Expanding and diversifying energy grid
‒ Thousands of new solar and wind projects
planned and under development
Global Metals and Mining Conference
75
0
250
500
750
1,000
China Short Term De-stocking Zinc
China Domestic Zinc Stocks1 (kt)
Smelter +
consumer stocks
Domestic
commercial stocks
Bonded stocks
End 2022 stocks down ~60kt MoM; End Q1 2023 stocks down 110kt YoY
China Galvanized Plate Production (kt)2
300
400
500
600
700
800
900
1,000
Galvanized plate production remained high since Q4 2022
• Zinc demand has accelerated since Q4 2022,
especially infrastructure and auto production
• 2022 EVs production doubled YoY reaching 7 million
units. Q1 production up 28% YoY
• NEVs require more high-strength galvanized steel
pushing up zinc intensity in auto
• Infrastructure strong since Q4, major zinc demand
driver
• Negative import arbitrage led to drastic drop of
imported metal, causing the de-stocking last year
into this year
• Seasonal re-stocking started around Chinese New
Year as usual but the peak in 2023 was ~100kt lower
than 2022 and 300kt lower than 2019
Global Metals and Mining Conference
76
Global Zinc Metal Outlook
Global Visible Refined Zinc Stocks (kt) and LME Price1 (US$/lb)
• Metal inventories have fed demand for almost ten
years, and are now at historically low levels
‒ The majority has moved from warehouses in
New Orleans to Asia
• Premiums in Europe and North America remain
at record highs
‒ US relies heavily on imports, as North
American supply meets only 80% of its
demand
‒ European energy crisis curtailing zinc metal
production, now pulling metal inventories from
Asia to meet demand
• Smelter growth limited, with few projects
ex-China and only <2 Mtpa of capacity in China
that could come online within 5 years
Additional Zinc Metal Required to Fill China Gap2 (kt)
$0.00
$0.30
$0.60
$0.90
$1.20
$1.50
$1.80
$2.10
0
200
400
600
800
1,000
1,200
1,400
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
LME Comex SHFE LME Price
5-year average US$1.33/lb; 10-year average US$1.19/lb
0
400
800
1,200
1,600
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Global Metals and Mining Conference
77
Long Term Zinc Demand Growth
Tied to Protection of Steel
Zinc Demand1 (Mt)
• 60% of zinc concentrate demand from
galvanizing steel, which extends service life and
makes infrastructure more sustainable
• Decarbonization will be steel intensive
• Under an accelerated IEA 1.5˚C scenario
renewables will need to account for close to 10%
of end use demand, rising to 25% by 2050
• Demand for zinc in the energy transition could go
from 1.0Mt today to 4.7 Mt by 2050
• The IZA estimates that zinc use in wind
applications could rise to 66kt by 2030 and in
solar to 166kt
• The use of zinc in energy storage batteries could
rise to 150kt by 2030
Zinc First Use and End Use Demand2
92%
75%
0.0
5.0
10.0
15.0
20.0
25.0
2020 2025 2030 2035 2040 2045 2050
Non-Energy Transition Specific Electric Vehicles
Solar Wind
Storage
Zinc First Use (2022) Zinc End Use (2022)
Consumer
Products
6%
Construction
51%
Transport
20%
Industrial
Machinery
7%
Infrastructure
16%
Galvanizing
52%
Oxides &
Chemical
7%
Brass &
Semi Cast
16%
Semi-Manufactured
6%
Die Cast Alloys
15%
Other
4%
13.1 Mt
Total
13.1 Mt
Total
Global Metals and Mining Conference
78
Steelmaking Coal
Market
Global Metals and Mining Conference
79
Steelmaking Coal Outlook
• Decarbonization growth accelerating
• Government and corporate initiatives
fuel support for renewable
infrastructure
• Wind energy, solar energy, all
supported by steel
• New BOF (suggest using BF or
integrated) steel mills under
construction in India and S.E. Asia
Steel mill production picking up
Raw material supply constrained by logistics
• Met coal production from major producers is down
5.7% or 2.1Mt Feb YTD and down 12% or 4.8 Mt
over Feb YTD 2019
• Wet weather, labour shortages, logistical challenges
and challenging geological conditions all contribute
• Seaborne supply:
‒ Investment in new mine projects slow as
Australian companies focus on divestitures
‒ Permitting and approvals face increased
scrutiny
• Steel prices are picking up though steel
demand recovers though with slow
pace.
• >70% of blast furnace (BF) capacity that
was idled in 2022 has being announced
to restarted.
• China crude steel production is up 9 Mt
YTD February, still up 19 Mt over YTD
February 2019
• EAF (electric arc furnaces) continues to
be impacted more than BOF so far
• China is returning to normal after
reopening in December 2022
Global Metals and Mining Conference
80
Steelmaking Coal Market Facts
Seaborne Metallurgical Coal Exports (2021e)3 (Mt)
Seaborne Metallurgical Coal Market Geographic Breakdown (2021e)4 (Mt)
Seaborne Metallurgical Coal Market Size (2021e)1 (Mt)
• ~0.7 tonnes of steelmaking coal is required for
each tonne of steel2
• Blast furnace / BOF share of crude steel
production globally is about 59%
• Majority of the growth in BOF capacity is being
built in S.E. Asia and India
Hard Coking Coal (HCC) &
Semi-Hard Coking Coal (SHCC)
191 Mt (66%)
Semi-Soft Coking Coal (SSCC)
39 Mt (13%)
Pulverized Coal Injection (PCI)
61 Mt (21%)
291 Mt
Total
BHP
35 Mt (12%)
Top 10 (58%)
(shaded)
Remaining
Supply (42%)
291 Mt
Total
Japan
18%
Korea
11%
Taiwan
4%
China
16%
India
23%
S.E. Asia
6%
Europe
17%
South
America
5%
291 Mt
Total
Anglo
15 Mt (5%)
Mitsubishi
28 Mt (10%)
BMA
57 Mt (20%)
Teck
25 Mt (9%)
Teck is the #2 seaborne exporter of metallurgical coal
Global Metals and Mining Conference
81
Critical Ingredient to Global Economic Growth
Steel’s Essential Role Premium Steelmaking Coal Supports Decarbonization Strategy
Steel demand is forecast to remain
strong through to 2050
• Industrialized growth in India and
Southeast Asia
• China demand expected to
remain steady until 2030
• >70% of global steel production
through blast furnace
• 100% recyclable
Essential for economic growth
in a low-carbon world
• Steel is not substitutable for
most applications
• Essential to lifting global living
standards
• Steel is required for
infrastructure development and
to support electrification and
decarbonization
HCC a critical raw material to steel
production
• 0.7t of steelmaking coal required
for each tonne of steel
• Premium HCC generates 5–30%
lower CO2 emissions in blast
furnaces
• To meet decarbonization targets,
steelmakers are expected to
increase high-grade HCC
• Blast furnace + CCUS is the only
technology that can be adopted
with speed and scale
Supply gap forecasted by 2025
without additional supply
• Seaborne HCC demand expected
to remain resilient, driven by India
and Southeast Asia
• Supply growth largely from
existing mines, subject to
investment, labour, logistics and
permitting challenges
• 120Mt global supply gap
expected by 2040
• Material impact of green steel
technologies expected in the
second half of the century
Global Metals and Mining Conference
82
Steelmaking Coal Outlook
Fundamentals remain tight
Steelmaking Coal Mine Production and Demand1 (kt)
• Potentially small surplus / balanced market until
2024
• Supply growth constrained and expected to peak
in 2026
• Permitting for new projects and miners divesting
creating uncertainty in supply
• Demand expected to increase by 57 Mt by 2030,
driven by growth from India and Southeast Asia
• In the past 10 years:
‒ 5-year rolling average >US$170/t for 50.0% of
the time
‒ Average quarterly spot price >US$170/t for
42.5% of the time
Cost of Production2 (US$/mt)
Significant mine supply gap expected between 2025 and 2030
without additional projects
100
150
200
250
-20
-10
0
10
20
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
+/- 2% Balance Supply (RS) Demand (RS)
0
100
200
300
400
500
600
700
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024
Global Metals and Mining Conference
83
Steelmaking Coal Prices
Steelmaking Coal Prices1 (US$ per tonne)
FOB Price
5-year average US$225/t
10-year average US$184/t
CFR China Price
5-year average US$255/t
10-year average US$201/t
$0
$100
$200
$300
$400
$500
$600
$700
Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23
AVG Platts PLV, Argus, TSI Prem Avg Platts, Argus, TSI PLV CFR
Global Metals and Mining Conference
84
Australia and US Steelmaking Coal Exports
2022 Australia and US coal exports not returned to 2019 levels
US Exports1 (Mt)
Australian Exports1 (Mt)
0
20
40
60
80
100
120
140
160
180
200
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
0
10
20
30
40
50
60
70
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Global Metals and Mining Conference
85
Canadian and Mozambique Steelmaking Coal Exports
Canadian exports impacted by COVID, weather and other unexpected disruptions
Mozambique Exports2 (Mt)
Canadian Exports1 (Mt)
0
5
10
15
20
25
30
35
40
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
0
1
2
3
4
5
6
7
8
9
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Global Metals and Mining Conference
86
High Steelmaking Coal Prices not Leading to Higher Capex
Investment boom unlikely to reoccur in coal sector
• Energy investment turns toward clean energy
• Large investors more cautious on coal mine
developments in order to meet the Paris goals
• Permitting and approvals to face increased
scrutiny
• Royalty hike in Queensland, Australia
• 10% coal reservation policy with cap price in
New South Wales, Australia
Australian Coal Export Prices and Capex1
0
50
100
150
200
250
300
350
400
450
500
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Australian Capex (A$m), LHS Australian coal export prices (A$/t), RHS
Global Metals and Mining Conference
87
Chinese Domestic Supply Limited, Inventories Low
Chinese Monthly Coking Coal Production1 (Mt)
• Government continues to increase total coal
production, but coking coal increases limited
– 2022 ROM up +13% compared to 2013, the
previous record,
– Coking coal output down -3%
• Natural constraints (limited reserves, complex
geology),
• Ongoing mining accidents (leading to longer
safety inspections)
• Steel mills managing raw material inventories at
low levels due to poor margins.
– Inventories remaining at historical low levels at
both ports and plants
Chinese Monthly Mongolian Imports2 (Mt)
20
25
30
35
40
45
50
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2020 2021 2002 2023
0.0
1.0
2.0
3.0
4.0
5.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2019 (pre-covid) 2020 2021 2022 2023
Historical High
3.9 Mt in Sep/20
Coking coal production increase limited
Mongolian imports returning to pre-COVID levels
Global Metals and Mining Conference
88
Chinese Steel Margins Weak, EAF Production Restricted
-200
0
200
400
600
800 Argus PHCC CFR China China HRC Gross Margins
TSI Iron Ore 62% Fe
-20
0
20
40
60
• HRC steel spot margins have been weak since
Q3 2022 (calculated on spot coal prices)
• Large Chinese steel mills had decent profit
margins in 2022 due to lower annual terms from
domestic coal mines
• Steel demand recovery slower than expected
but a small rebound is expected for 2023 amid
improving property market and resilient
infrastructure investment
• EAF production continues to be restricted to
below 50% due to high energy costs and poor
margins
Chinese Spot Steel Margins1 (US$/t)
Chinese CISA Mills Profit Margins2 (US$/t)
Global Metals and Mining Conference
89
Steelmaking Coal Short Term Outlook for China
Blast Furnace Utilization Rates in China1 (%)
• China’s Jan-March 2023 crude steel output rose
+18 Mt due to strong infrastructure investment,
restocking and exports
• Full year production will likely remain above ~1Bt
(2022: 1.018 Bt)
• Hot metal output up +19 Mt as scrap/EAF
impacted by Covid shutdowns and continuing
poor steelmaking margins
• China lifted the Australian ban on coal imports
earlier this year; Australian import volume may
not increase due to coal supply tightness
• Zero coal import tariff extended to the end of
2023 which is favorable to ex-Australia imports
0%
20%
40%
60%
80%
100%
Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23
BF EAF
China Steel Mills Coking Coal Stocks2 (Mt)
10
15
20
25
30
35
40
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2019 2020 2021 2022 2023
Global Metals and Mining Conference
90
0
2
4
6
8
10
Jan-19
Mar-19
May-19
Jul-19
Sep-19
Nov-19
Jan-20
Mar-20
May-20
Jul-20
Sep-20
Nov-20
Jan-21
Mar-21
May-21
Jul-21
Sep-21
Nov-21
Jan-22
Mar-22
May-22
Jul-22
Sep-22
Nov-22
Jan-23
Mar-23
Coking Coal Thermal Coal
Chinese Imports from Mongolia and Russia are Increasing
Mongolian Coal Imports: Daily Coal Trucks Crossing Ganqimaodu2
Russian Coal Imports1 (Monthly, Mt)
Ukraine War
Doubling imports from Russia (2022 +96%)
• 2022 @ 21.0Mt, up +8.7Mt YoY
• Jan-Mar at record levels of 2.4Mt/month
• Now >50% of ex-Australia seaborne imports
• Heavily discounted Russian coal accounts for >50% of China
2022 imports (21Mt of 38 Mt)
Mongolian imports rise to a new high
• Jan-Feb: 6.5 Mt, a Jan-Feb record, +5.3 Mt YoY
• Daily trucks >800 since Feb, suggesting >3Mt/month
• Main border offices set higher guidance for 2023
• Mongolia pushing border rail links
0
500
1000
1500
Daily Average Annual Daily Average
Global Metals and Mining Conference
91
Seaborne HCC Demand Expected to Increase
Global Seaborne HCC Demand1 (Mt)
• Demand expected to increase by 57 Mt by 2030,
driven by growth from India and Southeast Asia
‒ India ~52% of the growth, or +29 Mt
‒ Southeast Asia ~40% of growth, or +22 Mt
‒ China expected to fall ~7% or -2 Mt
• Material impact on blast furnace operations
resulting from green steel technology not
expected until after 2050
• Strong high quality coking coals will grow in rarity
with new projects focused on weaker coals.
• Prime hard coking coal will be important to blast
furnace decarbonization efforts
Incremental Seaborne HCC Demand Growth to 2030 by Region2 (Mt)
S.E. Asia
South America
China
Europe
India
Japan/Korea/Taiwan
60
80
100
120
140
160
180
200
220
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
-10 0 10 20 30 40
Global Metals and Mining Conference
92
Low Steel Stocks in China Supporting Prices
Low seasonal build has stocks near record lows
Port Inventories being drawn down and at historical lows1 (Mt)
Steel mill inventories at historical lows2 (Mt)
• Steel production strong through March after +5.6% rise in
Jan/Feb
• Steel production curbs to keep production similar to 2022, likely
to start in the coming months
• Hot Metal production saw higher growth than EAF due to high
costs and scrap availability
• Capacity Utilization had been running over 90%, now just below
China steel production remains strong
Domestic steel prices remain weak
• Chinese steel prices continue to fall on persistent high steel
production and weak domestic demand
• Steel consumption down slightly YTD
• Steel margins remain stable on lower input costs
0
5
10
15
20
25
30
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2019 2020 2021 2022 2023
60
70
80
90
100
110
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2020 2021 2022 2023
Global Metals and Mining Conference
93
Chinese HCC Imports Expected to Remain Resilient
2022 ex-Australia seaborne imports up to new record high of 36 Mt
Chinese HCC Imports1 (Mt)
• China committed to decarbonizing steel, with a
peak by 2030 and carbon neutrality by 2060
• Domestic Chinese coal production restricted by
reserve, quality, and limited supply
• Coastal steel mills are users of high-quality HCC
and are more competitive than inland steel mills
• Zero coal import tariffs extended to the end of
2023 (started from May 1, 2022) to boost imports
• China lifted the unofficial ban on Australian coal
‒ 0.07 Mt in January-February 2023 (only four
users granted initially)
‒ The grant expanded to all in March, but the
price arbitrage has yet fully open
21
30
16
10 9 13 9 10 13
34 36
14
30
31
26 27
31
28 31
35
6 2
19
15
15
13
24
26
28
34
24
14
26
0
20
40
60
80
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Mongolia Australia Ex-Australia
Chinese Crude Steel Production (CSP),
Hot Metal Production (HMP) and Coal Production2 (Mt)
0
100
200
300
400
500
600
0
200
400
600
800
1,000
1,200
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023e
CSP (LHS) HMP (LHS) Coking Coal Production (RHS)
Global Metals and Mining Conference
94
Chinese Scrap Use Remains Low
Scrap supply and elevated power prices limit EAF share in steel output
China Steel Use By Sector3 (2000-2020)
China’s scrap ratio lower than global average of 29%1 (2022)
EAF share forecast to rise to 16% by 20272
Crude Steel
Electric Arc Furnace (EAF)
Hot Metal
Average EAF utilization 36% YTD October 2022 vs 64% in 2021
Construction
50-60%
Machinery
15-20%
Auto
5-10%
Others
15-25%
0
200
400
600
800
1000
1200
0%
20%
40%
60%
80%
100%
Türkiye US EU Russia Korea Japan China
Global Metals and Mining Conference
0
50
100
150
200
2022 2025 2030
Myanmar Vietnam Malaysia Indonesia
Cambodia Philippines India Exp. India Greenfield
0
5
10
15
20
2022 2025 2030
Detian Coke Kinrui Kinxiang Weishan
Planned Blast Furnace Capacity Set to Grow
Blast Furnace Capacity1 (Mt)
Indonesian Merchant Coke1 (Mt)
Asia committing to 20+ years of traditional steelmaking
• >50Mt of hot metal expansions/projects announced plus >20Mt
of planned coke capacity in SE Asia in the next 3 years
• India’s Steel Ministry set target to double steel capacity to
300Mt by FY2030-31
• Southeast Asia Steel Institute (SEASI) expects to see ~90Mt
of additional steel capacity in SE Asia
• In long term, planned BF capacity expansions to continue
supporting PHCC demand growth
‒ ~200Mt of hot metal expansions/projects announced to be
built vs ~45Mt of BFs announced to be shut down/replaced
with DRI-EAF route
European steel mills seek alternatives to steelmaking coal
• Hydrogen plants at pilot stage only, commercial technology
still decades away and still prohibitively expensive
• Mills seek alternative carbon abatement in CCS/CCUS
95
Global Metals and Mining Conference
96
Indian Steelmaking Coal Imports
Mid- & long-term imports supported by strong demand and government targets
Indian Seaborne Coking Coal Imports2 (Mt)
Indian Crude Steel and Hot Metal Production1 (Mt)
27 29
35
41
37
35
38
35 34
44
32
3
3
2
1
1
3
4
4 4
3
7
1
1
2
1
2 3
4
5
3
3
3
4 4
3
3
2
4
5
8
7
10
15
0
10
20
30
40
50
60
70
Australia USA Canada Other
0
20
40
60
80
100
120
140 CSP (LHS) HMP (LHS)
India crude steel production and seaborne coking coal imports surpassing 2019 levels
Global Metals and Mining Conference
97
Seaborne HCC: Summary
Global Seaborne Coking Coal Outlook1 (Mt)
• Balanced market in 2023 from a deficit in 2022; supply likely
coming to market in H2/23
• Steelmaking coal demand is supported by steel production
picking up
• The continued unexpected supply disruptions and potential
growth of China’s imports from Australia could drive the market
to deficit in 2023
0
50
100
150
200
250
300
114 Mt
Supply
Gap3
Australia Supply
Canada Supply
ROW Supply
India Demand
Total World Demand
Short Term Outlook
Medium-to-Long-Term Outlook
• Future demand growth mainly from India & SE Asia
• Material impact on BF operations resulting from green steel
technology expected post 2050
• Investment in met coal mining discouraged by carbon emission
pressure, high royalty rates and prolonged permitting process.
• Future supply growth mainly from existing mines. Limited
committed projects, despite all projects showing positive
margins at today’s prices
• Forecast market shortage by 2025, without additional production
before 2024
Global Metals and Mining Conference
Appendix
Supplemental Information
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Supplemental Information

  • 1. Global Metals and Mining Conference Supplemental Information June 5, 2023
  • 2. Global Metals and Mining Conference 2 Caution Regarding Forward-Looking Statements Both these slides and the accompanying oral presentation contain certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to as forward-looking statements). These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “should”, “believe” and similar expressions is intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These statements speak only as of the date of this presentation. These forward-looking statements include, but are not limited to, statements concerning: forecast production; forecast operating costs, unit costs, capital costs and other costs; sales forecasts; all guidance included in this presentation, including production guidance, sale and unit cost guidance, capital expenditure guidance, water treatment guidance, and the sensitivities thereto; our strategies, objectives and goals; future accounting treatment for QB2; our portfolio of copper growth options and expectations for our copper projects, including San Nicolas, NewRange, QBME, Zafranal, Galore Creek, NuevaUnion and Schaft Creek, including expectations related to the submission and receipt of regulatory approvals, timing for completion of prefeasibility and feasibility studies, costs and timing related to construction and commissioning and expectations relating to production levels, capital and operating costs, mine life, strip ratios, C1 cash costs and further expansions; expectations regarding mine life extensions for HVC, Antamina and Red Dog, including expectations relating to timing for regulatory approvals and feasibility studies, production rates, life of mine extensions, required capital projects and ability to utilize existing infrastructure; expectations and planned activities relating to our zinc development options; expectation that we have the potential to be a top 10 copper producer and that QB1 is expected to double our consolidated copper production at full capacity; expectations regarding water treatment in the Elk Valley, including the statement that we expect further reductions as treatment increases; our expectations regarding our QB2 project; our expectations relating to the demand for and supply of copper, zinc, steelmaking coal and other products and commodities that we produce and sell; our expectations relating to future prices and price volatility for copper, zinc, steelmaking coal and other products and commodities that we produce and sell; our expectations relating to future operating costs for our operations and those of our competitors; and all other statements relating to the outlook of the markets for copper, zinc, steelmaking coal and other products and commodities that we produce and sell. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this presentation. Such statements are based on a number of assumptions that may prove to be incorrect, including, but not limited to, assumptions regarding: general business and economic conditions; commodity and power prices; assumption that QB2 becomes fully producing within expected timeframes; the supply and demand for, deliveries of, and the level and volatility of prices of copper, zinc, steelmaking coal, and our other metals and minerals, as well as oil, natural gas and other petroleum products; the timing of the receipt of permits and other regulatory and governmental approvals for our development projects and other operations, including mine extensions; our costs of production and production and productivity levels, as well as those of our competitors; availability of water and power resources; credit market conditions and conditions in financial markets generally; our ability to procure equipment and operating supplies and services in sufficient quantities on a timely basis; availability of qualified employees and contractors for our operations, including our new developments and our ability to attract and retain skilled employees; the satisfactory negotiation of collective agreements with unionized employees; the impact of changes in Canadian-U.S. dollar exchange rates, Canadian dollar-Chilean Peso exchange rates and other foreign exchange rates on our costs and results; the accuracy of mineral and steelmaking coal reserve and resource estimates (including with respect to size, grade and recoverability) and the geological, operational and price assumptions on which these are based; tax benefits and tax rates; the impacts of the COVID-19 pandemic on our operations and projects and on global markets; our ongoing relations with employees and with our business and joint venture partners; the impact of climate change and climate change initiatives on markets and operations; and the impact of geopolitical events on mining operations and global markets. Assumptions regarding QB2 include current project assumptions and assumptions contained in the final feasibility study, as well as there being no further unexpected material and negative impact to the various contractors, suppliers and subcontractors for the QB2 project relating to COVID-19 or otherwise that would impair their ability to provide goods and services as anticipated. Expectations regarding our operations are based on numerous assumptions regarding the operations. Statements concerning future production costs or volumes are based on numerous assumptions of management regarding operating matters and on assumptions that demand for products develops as anticipated; that customers and other counterparties perform their contractual obligations; that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts and supplies, labour disturbances, COVID-19, interruption in transportation or utilities, or adverse weather conditions; and that there are no material unanticipated variations in the cost of energy or supplies. Assumptions regarding water quality management in the Elk Valley include assumptions that additional treatment will be effective at scale, that the technology and facilities operate as expected and that required permits will be obtained. The foregoing list of important factors and assumptions is not exhaustive. Other events or circumstances could cause our actual results to differ materially from those estimated or projected and expressed in, or implied by, our forward-looking statements. See also the risks and assumptions discussed under “Risk Factors” in our 2022 Annual Information Form and in subsequent filings, which can be found under our profile on SEDAR (www.sedar.com) and on EDGAR (www.sec.gov). Except as required by law, we undertake no obligation to update publicly or otherwise revise any forward-looking statements or the foregoing list of factors, whether as a result of new information or future events or otherwise. Inherent in forward-looking statements are risks and uncertainties beyond our ability to predict or control, including risks that may affect our operating or capital plans; that are generally encountered in the permitting and development of mineral properties such as unusual or unexpected geological formations; associated with the COVID-19 pandemic; associated with unanticipated metallurgical difficulties; relating to delays associated with permit appeals or other regulatory processes, ground control problems, adverse weather conditions or process upsets and equipment malfunctions; associated with any damage to our reputation; associated with labour disturbances and availability of skilled labour; associated with fluctuations in the market prices of our principal commodities; associated with changes to the tax and royalty regimes in which we operate; created through competition for mining and oil and gas properties; associated with lack of access to capital or to markets; associated with mineral reserve and resource estimates; posed by fluctuations in exchange rates and interest rates, as well as general economic conditions; associated with changes to our credit ratings; associated with our material financing arrangements and our covenants thereunder; associated with climate change, environmental compliance, changes in environmental legislation and regulation, and changes to our reclamation obligations; associated with procurement of goods and services for our business, projects and operations; associated with non-performance by contractual counterparties; associated with potential disputes with partners and co-owners; associated with operations in foreign countries; associated with information technology; and risks associated with tax reassessments and legal proceedings. Scientific and technical information in this presentation and related appendices was reviewed and approved by Rodrigo Alves Marinho, P.Geo., an employee of Teck and a Qualified Person under National Instrument 43-101.
  • 3. Global Metals and Mining Conference 3 Table of Contents Guidance and Reference Copper Growth Portfolio Mine Life Extensions Zinc Development Options Business Units Base Metals Steelmaking Coal Markets Copper Zinc Steelmaking Coal Non-GAAP Financial Measures and Ratios
  • 4. Global Metals and Mining Conference 4 Guidance and Reference
  • 5. Global Metals and Mining Conference 5 Operations & Projects (22.5%) (60%) (80%) (50%) (75%) (50%) (95%) (80%) (50%) | NorthMet (50%) (50%) (90%)
  • 6. Global Metals and Mining Conference Production Guidance 2022 Actual Previous 2023 Guidance Current 2023 Guidance1 Previous 2024-2026 Guidance Current 2024-2026 Guidance1 Copper2,3,4 Highland Valley 119.1 110-118 110-118 120-165 120-165 Antamina 102.3 90-97 90-97 90-100 90-100 Carmen de Andacollo 39.5 40-50 40-50 50-60 50-60 Quebrada Blanca 9.6 150-180 150-180 285-315 285-315 Total 270.5 390-445 390-445 545-640 545-640 Copper Kt, except as noted. 2022 Actual Previous 2023 Guidance Current 2023 Guidance1 Previous 2024-2026 Guidance Current 2024-2026 Guidance1 Zinc in concentrate2,3,5 Red Dog 553.1 550-580 550-580 500-550 500-550 Antamina 97.4 95-105 95-105 55-95 55-95 Total 650.5 645-685 645-685 555-645 555-645 Refined zinc Trail Operations 248.9 270-290 270-290 280-310 280-310 Zinc 2022 Actual Previous 2023 Guidance Current 2023 Guidance1 Previous 2024-2026 Guidance Current 2024-2026 Guidance1 Steelmaking coal (Mt) 21.5 24.0-26.0 24.0-26.0 24.0-26.0 24.0-26.0 Steelmaking Coal 2022 Actual Previous 2023 Guidance Current 2023 Guidance1 Previous 2024-2026 Guidance Current 2024-2026 Guidance1 Molybdenum2,3 (Mlbs) Highland Valley 1.0 0.8-1.2 0.8-1.2 2.0-6.0 2.0-6.0 Antamina 1.5 2.2-2.6 2.2-2.6 2.0-4.0 2.0-4.0 Quebrada Blanca - 1.5-3.0 1.5-3.0 10.0-14.0 10.0-14.0 Total 2.5 4.5-6.8 4.5-6.8 14.0-24.0 14.0-24.0 Lead2 Red Dog 79.5 110-125 110-125 85-95 85-95 Other Base Metals 6
  • 7. Global Metals and Mining Conference Unit Cost and Sales Guidance Total cash unit costs per pound, net cash unit costs per pound, and adjusted site cash cost of sales per tonne are non-GAAP ratios. See “Non-GAAP Financial Measures and Ratios” slides. Zinc3 Steelmaking Coal Copper2 (US$/lb) 2022 Actual Previous 2023 Guidance Current 2023 Guidance1 Total cash unit costs 2.02 2.05-2.25 2.05-2.25 Net cash unit costs4 1.56 1.60-1.80 1.60-1.80 (US$/lb) 2022 Actual Previous 2023 Guidance Current 2023 Guidance1 Total cash unit costs 0.58 0.68-0.78 0.68-0.78 Net cash unit costs4 0.44 0.50-0.60 0.50-0.60 (C$/tonne) 2022 Actual Previous 2023 Guidance Current 2023 Guidance1 Adjusted site cash cost of sales 89 88-96 88-96 Transportation costs 47 45-48 45-48 Unit Costs Sales (kt) Q1 2023 Actual Current Q2 2023 Guidance1 Red Dog zinc in concentrate 89 45-55 (Mt) Q1 2023 Actual Current Q2 2023 Guidance1 Steelmaking coal 6.2 6.2-6.6 Zinc Steelmaking Coal 7
  • 8. Global Metals and Mining Conference 2022 Actual Previous 2023 Guidance Current 2023 Guidance1 Sustaining Copper2 $ 297 $ 510 $ 510 Zinc 244 150 150 Steelmaking coal3 520 760 760 Corporate 17 10 10 $ 1,078 $ 1,430 $ 1,430 Growth Copper4 $ 217 $ 250 $ 250 Zinc 37 80 80 Steelmaking coal 30 30 30 Corporate 1 - - $ 285 $ 360 $ 360 Total Copper $ 514 $ 760 $ 760 Zinc 281 230 230 Steelmaking coal 550 790 790 Corporate 18 10 10 $ 1,363 $ 1,790 $ 1,790 QB2 development capital 3,060 1,200–1,750 $1,650-2,200 Total before SMM/SC contributions 4,423 2,990-3,540 3,440-3,990 Estimated SMM/SC contributions to capital expenditures (1,090) (520)-(700) (670)-(850) Estimated QB2 project financing draw to capital expenditures (315) - - Total, net of partner contributions and project financing $ 3,018 $ 2,470-2,840 $ 2,770-3,140 Capital Expenditures Guidance Sustaining and Growth Capital Capitalized Stripping 2022 Actual Previous 2023 Guidance Current 2023 Guidance1 Capitalized Stripping Copper $ 336 $ 295 $ 295 Zinc 89 55 55 Steelmaking coal 617 750 750 $ 1,042 $ 1,100 $ 1,100 Teck’s share in C$ millions, except as noted. 8
  • 9. Global Metals and Mining Conference Water Treatment Guidance C$ millions, except as noted. 2022 Actual Previous 2023 Guidance Current 2023 Guidance2 Previous 2023-2024 Guidance Current 2023-2024 Guidance2 Previous Long-Term Guidance (C$/tonne) Current Long-Term Guidance3 (C$/tonne) Sustaining capital for water management and water treatment, including October 2020 Direction issued by Environment and Climate Change Canada $ 184 $ 220 $ 220 $ 450-550 $ 450-550 $ 2.00 $ 2.00 Steelmaking Coal Capital Expenditures Related to Water Treatment1 2022 Actual Previous 2023 Guidance Current 2023 Guidance2 Previous 2023-2024 Guidance Current 2023-2024 Guidance2 Previous Long-Term Guidance (C$/tonne) Current Long-Term Guidance3 (C$/tonne) Operating costs associated with water treatment $ 1.50 – – $ 3.00-5.00 $ 3.00-5.00 Steelmaking Coal Operating Costs Related to Water Treatment1 (C$/tonne) 9
  • 10. Global Metals and Mining Conference Sensitivities 2023 Mid-Range Production Estimates2 Changes Estimated Effect on Profit Attributable to Shareholders3 ($ in millions) Estimated Effect on EBITDA3 ($ in millions) US$ exchange C$0.01 $ 60 $ 98 Copper (kt) 417.5 US$0.01/lb 6 11 Zinc (kt)4 945.0 US$0.01/lb 9 12 Steelmaking Coal (Mt) 25.0 US$1/t 19 29 WTI5 US$1/bbl 3 5 EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures and Ratios” slides. Sensitivity of our Annualized Profit Attributable to Shareholders and EBITDA1
  • 11. Global Metals and Mining Conference 11 Operation Expiry Dates1 Line Creek May 31, 2024 Antamina July 31, 2024 Quebrada Blanca January 31, 2025 March 31, 2025 November 30, 2025 Carmen de Andacollo December 31, 2025 September 30, 2025 Highland Valley Copper September 30, 2026 Elkview October 31, 2026 Fording River April 30, 2027 Trail Operations May 31, 2027 Cardinal River June 30, 2027 Collective Agreements
  • 12. Global Metals and Mining Conference 12 Share Structure & Principal Shareholders Teck Resources Limited as at December 31, 20221 Shares Held Percent Voting Rights Class A Shareholdings Temagami Mining Company Limited 4,300,000 55.4% SMM Resources Inc (Sumitomo) 1,469,000 18.9% Other 1,996,503 25.7% 7,765,503 100.0% Class B Shareholdings Temagami Mining Company Limited 525,000 0.1% SMM Resources Inc (Sumitomo) 393,474 0.1% China Investment Corporation (Fullbloom) 52,286,774 10.3% Other 452,748,352 89.5% 505,953,600 100.0% Total Shareholdings Temagami Mining Company Limited 4,825,000 0.9% 33.6% SMM Resources Inc (Sumitomo) 1,862,474 0.4% 11.5% China Investment Corporation (Fullbloom) 52,286,774 10.2% 4.1% Other 454,744,855 88.5% 50.8% 513,719,103 100.0% 100.0% Shares held by China Investment Corporation (Fullbloom) are based on most recent publicly reported shareholdings and may not be current.
  • 13. Global Metals and Mining Conference Copper Growth Portfolio
  • 14. Global Metals and Mining Conference 14 Growth Pipeline at an Advanced State of Readiness 14 Teck is positioned to maximize value from our copper growth portfolio well beyond the investments made in QB2 10+ years ago, recognized copper scarcity and long timelines to get assets into production ✓ Over 5+ years, completed lead-time development work (resource definition, engineering & design, permitting, stakeholder engagement) across portfolio ✓ Accelerated project development and de-risked delivery with industry-leading partners, securing +$1bn of additional value ✓ Teck is unique in the industry in pursuing an active portfolio management approach to growth pipeline – maximizing optionality and value ✓ Teck has created the most valuable portfolio of actionable copper growth projects in the industry ✓
  • 15. Global Metals and Mining Conference 15 Robust Portfolio of Near-Term Development Projects 15 Teck’s Ownership (Partner) State of Readiness 1st 5-Year Avg. Prod. (Cu Eq kt)1 C1 Cash Cost3 ($/lb Cu Payable) Mine Life (Yrs.)4 QBME 60 % (SMM & SC6 / ENAMI) Feasibility underway and permit submitted 1402 $1.50/lb 15 + Future Extension Continued production growth from massive resource Zafranal 80 % (Mitsubishi Materials Corp.) Permit imminent, detailed engineering in H2 2023 133 $1.16/lb 19 Peru’s next copper mine Galore Creek 50 % (Newmont) Initial permit submission, planned for H2 2023 129 $0.70/lb 21 + Future Extensions Canada’s largest copper development project5 San Nicolás 50 % (Agnico Eagle) Feasibility and permit preparation underway 63 ($0.26)/lb 15 High grade asset with industry leading returns NewRange 50 % (PolyMet / Glencore) Permits in hand, re-engineering underway, new management team 41 / 124 $0.72/lb 20 + Future Extensions US producer of critical battery metal concentrates (Initial / Expanded)
  • 16. Global Metals and Mining Conference 16 Readiness Maximizes Portfolio Optionality and Value 16 Engineering and Permitting Construction Production Targeted Sanction Window Near-Term Value Catalysts Agnico Eagle partnership, EIA submission and FS completion targeted for H1 2023 & H1 2024 Permit submitted and feasibility study completion targeted for H2 2023 SEIA approval expected in H1 2023; detailed engineering underway In position for sanction in H2 2024 Targeted initial permit submission H2 2023 2024 2025 2026 2027 2028 2029 San Nicolás QBME Zafranal NewRange (NorthMet) Galore Creek Development projects can drive further production growth starting in 2027
  • 17. Global Metals and Mining Conference 17 2 5 3 1 7 8 9 Teck Greenfield Discovery Teck Greenfield Discovery Portfolio of Copper Growth Options 17 4 6 1 2 3 4 5 6 8 9 7 Near Term Options San Nicolás (Cu-Zn-Au-Ag), Mexico1,2 Teck 50% | Agnico Eagle 50% (San Nicolás Joint Venture) Prefeasibility Study complete Q1 2021; Feasibility Study completion targeted for Q1 2024 First five years (100% basis): 127 ktpa CuEq, C1 cash costs US$(0.26)/lb Cu; US$1.0-1.1Bn capex; NPV8 US$1.3-1.4Bn; IRR 26-29% QB Mill Expansion (Cu-Mo-Ag), Chile Teck 60% | SMM/SC 30% | ENAMI 10% Feasibility Study completion targeted for later in 2023; Targeting 50% throughput increase in addition to QB2 Competitive C1 cash costs Zafranal (Cu-Au), Peru1,2 Teck 80% | MMC 20% Feasibility Study complete Q2 2019; SEIA submitted Q1 2022 with targeted approval in the H1 2023 First five years (100% basis): 133 ktpa CuEq, C1 cash costs US$1.16/lb Cu; US$1.2Bn capex; NPV8 US$1.1Bn; IRR 24.6% NorthMet (Cu-Ni-PGM), Minnesota, USA3 Teck 50% | PolyMet 50% (NewRange Copper Nickel LLC Joint Venture) Permits received, working through litigation towards development, construction and operation of 29 ktpd mining/milling operation 262 Mt Proven & Probable Reserves at 0.290% Cu, 0.084% Ni, 0.270 g/t Pd and 0.079 g/t Pt Medium Term Options Galore Creek (Cu-Au-Ag), BC, Canada1 Teck 50% | Newmont 50% Primary engineering contract for Prefeasibility awarded in Q1 2022; Prefeasibility Study targeted for completion in H2 2023 Potential 215 ktpa CuEq (100% basis); C1 cash costs of US$0.65-0.75/lb Cu QB Future Expansions (Cu-Mo-Ag), Chile Teck 60% | SMM/SC 30% | ENAMI 10% Conceptual study underway; options being evaluated to increase throughput beyond QB Mill Expansion Competitive C1 cash costs Future Potential NuevaUnión (Cu-Au-Ag-Mo), Chile1 Teck 50% | Newmont 50% Select technical and strategic work underway; On a 100% basis, potential 263 ktpa CuEq; C1 cash costs US$1.00-1.10/lb Cu Mesaba (Cu-Ni, PGM-Co), Minnesota, USA1 Teck 50% | PolyMet 50% (NewRange Copper Nickel LLC Joint Venture) Preparing for Prefeasibility Study; Ongoing environmental and social baseline studies; Potential 242 ktpa CuEq (100% basis) Schaft Creek (Cu-Mo-Au-Ag), BC, Canada1 Teck 75% | Copper Fox 25% Preparing for Prefeasibility Study; Potential 161 ktpa CuEq (100% basis); C1 cash costs US$0.50-0.60/lb Cu This slide discloses the results of economic analysis of mineral resources. Mineral resources that are not mineral reserves and do not have demonstrated economic viability. Projections for Galore Creek, Mesaba and Schaft Creek include inferred resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Inferred resources are subject to greater uncertainty than measured or indicated resources and it cannot be assumed that they will be successfully upgraded to measured and indicated through further drilling. C1 cash unit costs per pound is a non-GAAP ratio. See “Non-GAAP Financial Measures and Ratios” slides.
  • 18. Global Metals and Mining Conference 18 Prefeasibility Study Production Profile and Financial Summary with Development Capital Estimate between US$1.0-1.1Bn1 Long Life Asset in Mexico • One of the world’s most significant undeveloped VHMS deposits • Updated Resources Statement Quality Investment • Expect LOM C1 cash costs in the 1st quartile • Competitive capital intensity • Co-product Zn and by-product Au & Ag credits Mining Jurisdiction • Well-established mining district in Mexico • Community engagement well underway Path to Value Realization • Prefeasibility and Draft EIA completed in Q1 and Q3 2021 respectively; EIA submission targeted in first half 2023; FS completion targeted for Q1 2024 • Established partnership with Agnico Eagle unlocks value After-Tax NPV8 Range US$1.3-1.4Bn After-Tax IRR Range 26-29% Initial Capex Range US$1.0-1.1Bn Payback Period Range 3.0-3.3 Years Avg 1st 5 year2 C1 Cash Costs US$(0.26)/lb Avg 1st 5 year2 Head Grade 1.07% Cu Avg 1st 5 year2 Production 63 kt Cu, 147 kt Zn, 31 koz Au Avg 1st 5 year2 EBITDA US$0.5Bn Metal price assumptions: US$3.60/lb Cu, US$1.20/lb Zn, US$1,550/oz Au and US$20/oz Ag 2023 2024 2026 0% 25% 50% 75% 100% - 25 50 75 100 125 150 175 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 Cu Contained in CCTs (kt) CuEq Contained in CCTs (kt) EBITDA Margin (RHS) 2027 San Nicolás Cu-Zn (Ag-Au) VHMS (50%) Prefeasibility and Environmental Impact Assessment completed Illustrative Timeline Permitting FS Complete Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Targeted Sanction Window Targeted First Production Detailed Engineering Studies (FS) Construction Production EBITDA is a forward-looking non-GAAP financial measure. San Nicolás is not an operating asset and there is no historical information with which to compare. C1 cash unit costs per pound is a non-GAAP ratio. See “Non-GAAP Financial Measures and Ratios” slides.
  • 19. Global Metals and Mining Conference Unlocking the value of a world class undeveloped VHMS • Agnico Eagle will subscribe for US$580 million of shares in the Teck subsidiary that owns San Nicolás, giving Agnico Eagle a 50% effective interest • Combines extensive operating experience and development expertise in the Americas to de-risk and optimize this world class VHMS deposit • The asset is in an important mining jurisdiction with existing infrastructure and a skilled workforce; approximately 60 km SE of the city of Zacatecas • Extremely competitive capital intensity, and first quartile costs JV provides a path to permitting, development and production • The partners complementary skillsets, relationships, and funding capabilities will contribute to the timely and successful development • The joint venture reduces Teck’s near-term funding and enhances equity returns Delivering on copper growth strategy • The Feasibility Study is well underway scheduled for completion in Q1 2024; data collection phase nearing completion • EIA and ETJ permit applications ready for submission in H1 2023 San Nicolás Cu-Zn (Ag-Au) VHMS (50%) A partnership between two international Canadian-based mining companies C1 Cash Cost (Net of by-product credits)1 C1 Cash Cost (NBPC) (US$/lb Cu Payable) 25% 50% 75% 100% San Nicolás Field Operation Camp ($2.00) ($1.00) $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 Top Decile C1 Cash Cost Performance San Nicolás Life of Mine C1 Cash Cost $0.38/lb San Nicolás First Five Years average C1 Cash Cost $(0.26)/lb 19 C1 cash unit costs per pound is a non-GAAP ratio. See “Non-GAAP Financial Measures and Ratios” slides.
  • 20. Global Metals and Mining Conference Defining the next expansion at QB • Multiple expansion options considered in scoping work • Options evaluated ranged from +50% to +200% throughput increase • Staged expansion with focus on earliest copper production; near-term focus on QBME with additional expansion opportunities to realize value from significant resource Quebrada Blanca Expansion Cu-Mo-Ag (60%) Fast-tracking additional near-term copper growth Mill expansion project highlights • Minimal additional footprint, simplifies scope of regulatory and permitting activities • Leverages existing tailings management facility and other infrastructure • Competitive C1 cost for incremental production QB Future Potential QB Mill Expansion (QBME) in Chile, as envisioned First Production 2027 Throughput Increase +50% Cu% Long section looking north Resource Pit QB2 Sanction Case Pit Surface 500m 0.15 0.8 0.5 0.3 0.05 QB Hypogene Reserves and Resources, Teck AIF 2021 Avg First 5-Years Incremental Production 136 or 151 Ktpa Cu Ktpa CuEq 20
  • 21. Global Metals and Mining Conference Quebrada Blanca Mill Expansion Cu-Mo (60%) Advancing permitting and feasibility study 50% concentrator expansion to increase production • Additional third grinding circuit and flotation line increases copper throughput by 50% • QBME builds on established water, tailings, concentrate transport, and port infrastructure of QB2 Significant potential for future extensions and expansions • Only 18% of 2022 R&R in current life of mine plan • Potential for further concentrator expansions beyond QBME Leverages QB2 footprint, infrastructure and experience • Low capital intensity due to use of existing pipeline and port • Permitting and regulatory approvals in progress; feasibility study advancing, leveraging QB2 project team experience Concentrator Pipelines Port Facilities Desalination Plant Power Line Mine 3rd Grind & Float Circuit + Tails Thickener & Water Pond 2nd Crusher Additional desalination module, filtering, storage Illustrative Timeline Q1 2023 2024 2025 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2026 Q1 Q2 Q3 Q4 2027 Tailings Facility Production Permitting Studies Construction Detailed Engineering Targeted Sanction Window Targeted Production Increase 21
  • 22. Global Metals and Mining Conference EBITDA is a forward-looking non-GAAP financial measure. Zafranal is not an operating asset and there is no historical information with which to compare. C1 cash unit costs per pound is a non-GAAP ratio. See “Non-GAAP Financial Measures and Ratios” slides. Feasibility Study Production Profile and Financial Summary1 Path to Value Realization • Continue prudent investments to de-risk the project including improving capital and operating cost estimates • SEIA submitted Q4 2021, SEIA approval expected H1 2023 After-Tax NPV8 US$1.1Bn After-Tax IRR 24.6% Initial Capex US$1.2Bn Payback Period 2.2 Years Avg 1st 5 year2 C1 Cash Costs US$1.16/lb Avg 1st 5 year2 Head Grade 0.57% Cu Avg 1st 5 year2 Production 125 kt Cu 42 koz Au Avg 1st 5 year2 EBITDA US$0.7Bn/year Long Life Asset In Peru • 19 year mine life with mine life extension opportunities though pit expansion and district resource development Quality Investment • Attractive front-end grade profile • Mid cost curve forecast LOM C1 cash costs • Competitive capital intensity Mining Jurisdiction • Strong support from Peruvian regulators including MINEM and SENACE • Engaged with all communities Metal price assumptions: US$3.60/lb Cu; US$1,550/oz Au 0% 25% 50% 75% 100% - 25 50 75 100 125 150 175 200 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 Cu Contained in CCT (kt) CuEq Contained in CCT (kt) EBITDA Margin (RHS) Zafranal Cu-Au Porphyry (80%) Feasibility complete, SEIA submitted in Q1 2022 Illustrative Timeline Targeted First Production Detailed Engineering Q1 2023 2024 2025 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q3 Q4 2027 2028 Q1 Q2 Production Permitting Construction Targeted Sanction Window 22
  • 23. Global Metals and Mining Conference Zafranal Cu-Au Porphyry (80%) Near term growth opportunity Advancing a high-quality Cu-Au development opportunity • Update of the capital and operating cost estimates from the Q2 2019 Feasibility Study and Q1 2020 Feasibility Study Update are underway with detailed engineering to commence in H2 2023 • Competitive capital intensity for this scale of development due to site and concentrator design, proximity to established road infrastructure, and modest elevation across the project site Permitting & community engagement activities well-advanced • The Zafranal team are working closely with SENACE, the Peruvian Regulator, to complete the review and approval of the Zafranal SEIA which is expected to be received in Q2 2023 • Community engagement activities, focused on community-based capacity building, infrastructure, health, education, and tourism continue building on a >10 years of positive engagement Delivering on copper growth strategy • Completing an updated capital and operating cost estimate and advancing detailed engineering in H2 2023 allows for a H2 2024 sanction decision Zafranal Deposit – View to the east-northeast Mineral Reserve and Resources Statement1 Category Tonnes Grades Contained Metal Reserves (Mt) Cu (%) Au (g/t) Cu (kt) Au (000 oz) Proven 408.8 0.388 0.07 1,587 939 Probable 32.0 0.216 0.05 68 47 Total P&P 440.7 0.376 0.07 1,655 986 Resources (exclusive of Reserves) Measured 5.1 0.19 0.04 10 6 Indicated 2.3 0.21 0.05 5 4 Total M&I 7.4 0.20 0.04 15 10 Inferred 62.8 0.24 0.10 150 212 23
  • 24. Global Metals and Mining Conference Contained Metal Copper Nickel Cobalt Palladium M&I Resource (Mt) (Mt) (kt) (Moz) NorthMet1,2 1.6 0.5 45 4.8 Mesaba3,4 7.0 1.6 132 5.5 Total 8.6 2.1 177 10.3 Use Case Electrification Sufficient to produce ~1.4TW of wind capacity5 EV Batteries Sufficient supply for ~20M electric vehicles6 EV Batteries Supply for ~12M electric vehicles7 Clean Air Supply for ~38M catalytic converters8 NewRange Cu-Ni-Co-Pd-Pt Deposits (50%) Responsible delivery of critical metals to support the transition to a low-carbon economy Joint venture provides enhanced asset development path • The Teck / PolyMet 50:50 JV combines the NorthMet and neighboring Mesaba projects in the established Iron Range region of Minnesota under one management team and approach • The partners complementary skillsets and relationships will contribute to timely and successful development of NorthMet Two large well-defined copper-nickel-PGM projects • At NorthMet, the JV plans to build and operate a 29,000 tonnes-per-day mine and processing facility • Mesaba is one of the world’s largest undeveloped copper-nickel-PGM deposits with potential for multi-generational production Clear path to production • JV is committing up to US$170M to position NorthMet for project sanction in H1 2024 and advance Mesaba development options • Potential development optimization with existing infrastructure in the area and region Major source of critical metals in North America Use existing infrastructure for processing facilities 24
  • 25. Global Metals and Mining Conference Galore Creek Cu-Au-Ag Porphyry (50%) Advancing a large, high-quality undeveloped Cu-Au-Ag deposit in NW British Columbia 25 Quality investment and partnership • The project is owned by the Galore Creek Partnership (Teck:Newmont 50:50) and managed by Galore Creek Mining Corporation (GCMC) • Strong technical, commercial, and community expertise in GCMC is enhanced with contributions from the Partners • Located in Tahltan territory ~370km NW of Smithers, BC Long-life asset • Among the highest-grade undeveloped copper-gold porphyry deposits in the world with significant upside potential • Updated Resources Statement in Q1 2023 Clear path to value realization • A prefeasibility study is expected to be completed in H2 2023 • Leverage existing camps, equipment and tunnel start to advance early-works to de-risk and shorten development timeline • Long-standing partnership with the Tahltan First Nation including a supportive Participation Agreement Mineral Resource Statement1 Exceptional discovery potential in under-explored district Category Tonnes Grades Contained Metal Resources (Mt) Cu (%) Au (g/t) Ag (g/t) Cu (kt) Au (000 oz) Ag (000 oz) Measured 425.7 0.44 0.29 4.1 1,868 4,028 55,893 Indicated 771.2 0.47 0.22 4.8 3,647 5,410 118,193 Total M&I 1,196.8 0.46 0.25 4.5 5,515 9,438 174,086 Inferred 237.8 0.26 0.19 2.6 1,386 1,430 19,869
  • 26. Global Metals and Mining Conference Mineral Reserve and Resource Statements1 NuevaUnión Cu-Mo-Ag and Cu-Au (50%) Strategic studies in progress to optimize asset value 26 Relincho deposit area La Fortuna deposit area Leveraging synergies and expertise in stable jurisdiction • The NuevaUnión partnership combines the Cu-Au La Fortuna deposit and the Cu-Mo-Ag Relincho deposit, located approximately 40km apart in the established mining jurisdiction of Huasco Province, Atacama region Chile • Synergies include a reduced environmental footprint, shared infrastructure, lower relative costs, improved capital efficiency, an optimized mine plan, and enhanced community benefits Future growth options • Prefeasibility Study completed in 2018 • Strategic studies continue to build on recent technical, social, and environmental studies, to advance the best commercial development strategy • Recent project activity has focused on optimization and strategic trade-offs and asset reviews, which have demonstrated value improvement opportunities as well as attractive potential alternate development configurations with lower initial capital for the asset, underpinned by the large, high quality resource base Relincho Reserves & Resources Grade Contained Metal Mineral Reserves Tonnes (Mt) Cu % Mo % Ag g/t Cu (kt) Mo (kt) Ag (000s oz) Proven & Probable 1,554 0.35 0.016 1.54 5,412 247 76,896 Mineral Resources Measured & Indicated 782 0.23 0.008 1.12 1,800 59 28,190 Inferred 725 0.36 0.012 1.29 2,611 88 30,278 La Fortuna Reserves & Resources Grade Contained Metal Mineral Reserves Tonnes (Mt) Cu % Au g/t Ag g/t Cu (kt) Au (000s oz) Ag (000s oz) Proven & Probable 682 0.51 0.47 0.79 3,476 10,225 17,441 Mineral Resources Measured & Indicated 246 0.51 0.59 1.10 1,244 4,665 8,698 Inferred 480 0.43 0.39 0.96 2,076 6,107 14,789
  • 27. Global Metals and Mining Conference Schaft Creek Cu-Mo-Au-Ag Porphyry (75%) Large-scale, open-pit development opportunity 27 Large-scale mineral resource in mining friendly jurisdiction • The Schaft Creek Joint Venture (SCJV), between Teck and Copper Fox Metals Inc., with Teck holding 75% interest and acting as the operator • Located in Tahltan territory ~61km south of Telegraph Creek and 37 km northeast of Galore Creek Long life asset • 1,293 Mt Measured and Indicated Resources supports long mine life (>20 years) with the potential for expansion and improved development economics Condensed footprint resulting in cost effective development • A Feasibility Study completed in 2013 was followed-up with a Scoping Study in 2020 (subsequently published as a PEA by Copper Fox in 2021) significantly improves the investment case • Compared to the 2013 FS, the 2021 PEA reduced strip ratio reducing the size and cost of tailings and rock storage facilities • Planned field work includes expanded environmental baseline, focused geotechnical investigations, and facilities siting work Category Tonnes Grades Contained Metal Resources (Mt) Cu (%) Mo (%) Au (g/t) Ag (g/t) Cu (kt) Au (000 oz) Measured 166.0 0.32 0.021 0.20 1.5 530 1,084 Indicated 1,127.2 0.25 0.016 0.15 1.2 2,826 5,494 Total M&I 1,293.2 0.26 0.017 0.16 1.2 3,355 6,578 Inferred 316.7 0.19 0.019 0.14 1.1 612 1,461 Cu-Mo-Au-Ag porphyry deposit of scale in Tahltan Territory View south along Mess Valley Mineral Resource Statement1
  • 28. Global Metals and Mining Conference Mine Life Extensions
  • 29. Global Metals and Mining Conference HVC 2040 Mine Life Extension Cu-Mo (100%) Feasibility study and permit application in progress Quality brownfield extension • Extends existing HVC copper production of ~140ktpa of copper per year with 1st production expected in 2027 • Project includes increased grinding capacity, flotation circuit modifications, expansion of existing tailings facility, and expanded mine fleet Well understood asset and experienced workforce • Operating experience and proven asset performance • Well-understood orebody with additional resource potential Permitting and feasibility study advancing • British Columbia Environmental Assessment application in progress, submission targeted in 2023 • Feasibility Study nearing completion Additional Tailings Storage Valley Pit Expansion Highmont Pit Expansion Process Plant Upgrades 29 Illustrative Timeline Construction Permitting Targeted Sanction Q1 2023 2024 2025 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2026 Q1 Q2 Q3 Q4 2027 Studies Targeted Incremental Production Detailed Engineering Production
  • 30. Global Metals and Mining Conference Antamina Mine Life Extension Cu-Zn-Mo-Ag (22.5%) Mine life extension project well-underway Project extends life of world class asset • Expansions of pit, dump and tailings facility will extend life of mine from 2028 to 2036 • Adds >600Mt of ore, maintains current production profile • Extension options beyond 2036 under evaluation Low-risk investment • No development capital, ongoing sustaining investment required over next decade for tailings expansion and mobile equipment • Known orebody and proven production capability Permitting in progress • MEIA submitted in 2022, regulatory engagement ongoing • Anticipated permit approval in 2023 Expanded Waste Storage Facilities Optimization of Processing Plant Pit Design Expansion + Tailings Capacity Existing Infrastructure MEIA updates Property Boundary New Conveyors Mining Phase Development Tailings Expansion 2023 2024 2025 2026 2027 2028 2029 2030 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Illustrative Timeline Permitting 30
  • 31. Global Metals and Mining Conference Red Dog: Aktigiruq Development Project Zn-Pb-Ag (100%) Studies and resource definition advancing Strategic zinc asset in key jurisdiction • Teck controlled, world-class zinc district in Alaska • Multiple high-grade deposits, ~10 miles from Red Dog • Focus on Aktigiruq deposit, an exploration target of 80-150 Mt @ 16-18% Zn + Pb Capital efficient, large-scale underground mine • Maintains zinc production post current Red Dog operations • Uses existing Red Dog mill and infrastructure Long investment horizon with multiple decision points • Studies in progress to assess development alternatives • Surface resource drilling ongoing Aktigiruq Su-Lik Anarraaq Qanaiyaq Main Aqqaluk Illustrative Timeline Mineralization zone Pit Outline 2023 2024 2025 2026 2027 2028 2029 2030 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2031 Q1 Q2 Q3 Q4 Targeted First Production Targeted Sanction Construction Production Permitting Studies (including UG development access) 31
  • 32. Global Metals and Mining Conference Zinc Development Options
  • 33. Global Metals and Mining Conference 33 Red Dog District Anarraaq (Zn-Pb), USA Teck 100% ~11 km from Red Dog operation; scoping study complete in 2014; existing study being optimized Inferred Resources released in 2017 of 19.4 Mt @ 14.4% Zn, 4.2% Pb1 Aktigiruq (Zn-Pb), USA Teck 100% ~14 km from Red Dog operation; scoping study in progress Significant mineralized system with exploration target* of 80-150 Mt @ 16-18% Zn + Pb2 Su-Lik (Zn-Pb), USA Su: Teck 100%, Lik: Teck 50% | Solitario Zinc Corporation 50% ~17 km from Red Dog operation; field work in progress and leveraging historical work Lik: Indicated Resources of 18.1 Mt @ 8.1% Zn, 2.7% Pb3 and Inferred Resources of 5.34 Mt @ 8.7% Zn, 2.7% Pb3. Su: Resource work is underway to confirm historical data Cirque District Cirque (Zn-Pb), Canada Teck 50% | Korea Zinc 50% In west-central British Columbia and proximal to existing infrastructure Resource work is underway to confirm historical data McArthur River – Teena District Teena (Zn-Pb), Australia Teck 100% ~7 km from Glencore’s McArthur River operation; conceptual study in progress Inferred Resource of 58 Mt @ 11.1% Zn, 1.6% Pb4 Portfolio of Zinc Development Options Australia North America 1 2 1 2 3 Sullivan Mine McArthur River Mine 3 Trail Zinc belt * Potential quantity and grade of this exploration target is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
  • 34. Global Metals and Mining Conference Zinc Development Options Adding value to our high-quality portfolio of zinc development assets Bar height = Size of the deposit. Aktigiruq bar heights = 12.8 to 25.4 Mt2 contained Zn + Pb = Estimated grade, Teck | Other projects = >10% Zn+Pb Teck has several undeveloped high-grade zinc assets1 (>10% Pb + Zn) located in favourable low-risk jurisdictions Largest Undeveloped Zinc Deposits MacMillan Pass is owned by Fireweed Zinc Ltd. and includes the Tom and Jason deposits. Teck currently has a 9% equity interest in Fireweed Zinc Ltd. Zinc outperforms market expectations • Declining production from existing primary zinc mines • Underinvestment in global exploration for primary zinc deposits • Long term demand outlook for zinc is strong, driven by decarbonization which is galvanized steel intensive Teck’s world class zinc business • Teck is the largest net zinc miner in the world • Large scale, low-cost, integrated business • Attractive portfolio of development opportunities • A long and sustained history of exploration in premier zinc districts Path to value • Leveraging copper growth experience to surface value from high quality portfolio of zinc opportunities, asset by asset, over the next 4 – 6 years • Prudent investment to further expand our understanding of each assets' potential and associated development options • Define commercial path to value for each project, either as a standalone investment, partnership or through monetization 0% 5% 10% 15% 20% 25% 30% 35% 0 5 10 15 20 25 30 35 Contained Zn + Pb (Mt) Grade Zn + Pb (%) 34
  • 35. Global Metals and Mining Conference High Quality Zinc Projects Well-known, attractive jurisdictions Red Dog Anarraaq Aktigiruq Su-Lik Delong Mountain Port Cirque Akie Sullivan Mine Brooks Range Vancouver Teena McArthur River Mine Carpentaria Gulf Bing Bong Port Chukchi Sea Kechika Trough Belt Purcell McArthur Basin 100 km 100 km 200 km Zinc belt USA – Alaska Red Dog (Zn-Pb): outstanding high-grade potential mine life extension in a premier district • District know-how with extensive operational experience • Opportunity to extend mine life by leveraging existing infrastructure • Multiple high-quality opportunities Canada – BC Cirque (Zn-Pb): attractive deposit in an emerging district • Proximity to road and rail linked to port and Trail smelting/refining operation • Leveraging local know-how and district synergies to assess development options • Advance through partnership Anarraaq and Aktigiruq: Teck 100% Su-Lik: Su: Teck 100%, Lik: Teck 50% | Solitario Zinc Corp. 50% Teena: Teck 100% Cirque: Teck 50% | Korea Zinc 50% Pacific Ocean Trail Australia – Northern Territory Teena (Zn-Pb): significant discovery in an established district • 2013 discovery in a world-class zinc district with excellent infrastructure • Build upon existing Australian team to create path to value for this high-grade asset • Standalone or partnership opportunity 35
  • 36. Global Metals and Mining Conference 36 Base Metals Business Units – Copper and Zinc
  • 37. Global Metals and Mining Conference 37 Base Metals Portfolio Underpinned By Four Cornerstone Operating Assets 2023E Production1 (Cu Eq kt) C1 Cash Cost2 ($/lb Cu Payable) Reserve Life / Current Extension Proposal (Yrs.)3 Antamina (22.5 % ownership) 133 $0.18/lb 6 / +9 High quality, proven copper-zinc producer Highland Valley (100% ownership) 116 $1.61/lb 7 / +15 Largest base metals mine in Canada QB2 (60% ownership) 3202 (2024) (QBME +140, beginning 2027) $1.50/lb 27 / + Future Life Extension Scaling to top 10 copper mine in the Americas, potential to be top 5 globally Red Dog (100% ownership) 645 (Zn Eq kt) $0.55/lb Zn Payable 8 / + Future Life Extension Largest and highest-grade zinc mine globally
  • 38. Global Metals and Mining Conference 38 Copper Business Unit EBITDA is non-GAAP financial measure. See “Non-GAAP Financial Measures and Ratios” slides. Production1 (kt) Profitability ($M) Carbon Intensity Curve2 (t CO2 e/t CuEq) 2021 2022 2023E 2024-2026E HVC Antamina Andacollo QB 1,686 603 116 248 385 438 2021 2022 EBITDA 1,289 EBITDA 2,187 D&A Finance Expense Profit before Tax Cumulative production (million tonnes) Teck Top 20 copper producer; potential Top 101 through copper growth pipeline • Four operating mines in the Americas • Industry leading copper growth, with potential to add >1.5 Mt copper equivalent production, through a mix of green and brown field development projects • QB2 expected to double our consolidated copper production at full capacity • Focus on operating discipline, as core for cost management • Continuing to explore and implement innovative technologies 286 270 418 593
  • 39. Global Metals and Mining Conference 39 Copper Unit Costs Cost of Sales in 2022 (C$) Net cash unit cost per pound is a non-GAAP ratio. See “Non-GAAP Financial Measures and Ratios” slides. 2021 2022 2023E $1.56 $1.70 Net Cash Unit Costs2 (US$/lb) C1+ Cash Cost Curve1 (US$/lb, 2024E) $1.39 -100 0 100 200 300 400 500 600 700 0% 25% 50% 75% 100% QB2 Antamina 2024 Costs Based on WM Forecast Prices Current Spot LME Price Operating Costs 73% Transportation 7% Royalties 2% Depreciation & Amorts. 18% Operating Cost Breakdown Labour 27% Contractors & Consultants 13% Operating Supplies 16% Repairs & Maintenance Parts 17% Energy 21% Other 6% Total 100%
  • 40. Global Metals and Mining Conference 40 Concentrator Pipelines Port Facilities Desalination Plant Tailings Facility Power Line Mine 10 km Pit, concentrator, and tailings facility 120 Mtpa of mine material movement 143 ktpd concentrator with two grinding and flotation lines 12 km tailings launder and reclaim water systems 1.4 Bt capacity tailings facility 4200 m3/hr desalination plant Concentrate dewatering Port facility and shiploader Water production and concentrate shipping Mine Area Linear Works Port Area 165 km long water supply pipeline 165 km long concentrate transport pipeline High voltage power transmission line Water and concentrate transport Quebrada Blanca Infrastructure spans from port to mine, and from sea level to 4400 metres elevation
  • 41. Global Metals and Mining Conference Organizational Chart • The government of Chile owns a 10% non-funding interest in Compañía Minera Teck Quebrada Blanca S.A. (CMTQB) through its state-run minerals company, Empresa Nacional de Minería (ENAMI) • ENAMI has been a partner at QB since 1989 and is a 10% shareholder of Carmen de Andacollo • ENAMI is not required to fund QB2 development costs • Project equity funding in form of: ‒ 25% Series A Shares ‒ 75% Shareholder Loans • Until shareholder loans are fully repaid, ENAMI is entitled to a minimum dividend, based on net income, that approximates 2.0-2.5% of free cash flow ‒ Thereafter, ENAMI receives 10% of dividends/ free cash flow CMTQB TRCL ENAMI Teck 10% (Series B) 100% 90% (Series A) JVCo SMM 66.67% 100% 33.33% SC 83.33% 16.67% Chile HoldCo QB1 / QB2 / QBME ENAMI Interest in Quebrada Blanca 41
  • 42. Global Metals and Mining Conference Quebrada Blanca Accounting Treatment and QB2 Project Finance Facility Balance Sheet • 100% of project spending included in property, plant and equipment • Debt includes 100% of project financing • Total shareholder funding to be split between loans and equity approximately 75%/25% over the life of the project • Sumitomo (SMM/SC)1 contributions will be shown as advances as a non-current liability and non-controlling interest as part of equity • Teck contributions, whether debt or equity, eliminated on consolidation QB2 Project Finance Facility • Pre-completion, senior debt is guaranteed on a pro-rata basis (after consideration of ENAMI’s 10% carried interest) ‒ Teck 66.67% ‒ SMM 27.77% ‒ SC 5.56% • Senior debt becomes non- recourse after successfully achieving operational completion tests • Semi-annual amortization payments of US$147 million will begin no later than June 15, 2023; facility matures in 2031 • The facility requires partial debt repayment upon dividend distribution to equity partners Cash Flow • 100% of project spending included in capital expenditures • Sumitomo1 contribution recorded within financing activities and split approximately 75%/25% as: ‒ Loans recorded as “Advances from Sumitomo” ‒ Equity recorded as “Contributions from Non- Controlling Interests” • 100% of draws on project financing included in financing activities • After start-up of operations ‒ 100% of profit in cash flow from operations ‒ Sumitomo’s1 30% and ENAMI’s 10% share of distributions included in non-controlling interest Income Statement • Teck’s income statement will include 100% of QB’s revenues and expenses • Sumitomo’s1 30% and ENAMI’s 10% share of profit will show as profit attributable to non-controlling interests 42
  • 43. Global Metals and Mining Conference 43 604 687 47 38 230 273 2021 2022 D&A Finance Expense Profit before Tax Zinc Business Unit EBITDA is non-GAAP financial measure. See “Non-GAAP Financial Measures and Ratios” slides. Production1 (kt) Profitability ($M) Largest net zinc miner globally • One operating mine in Alaska and one metallurgical complex in British Columbia • Red Dog is a top-tier zinc asset, with strong production extending over the next five years • Continuing to evaluate and advance early-stage zinc projects Net Zinc Mining Companies2 (kt) Cumulative production (million tonnes) Teck Carbon Intensity Curve3 (t CO2 e/t ZnEq) Teck Public Company Private Company EBITDA 998 EBITDA 881 2021 2022 2023E 2024- 2026E Red Dog (conc.) Antamina (conc.) Trail (refined) 607 279 648 262 620 280 600 295
  • 44. Global Metals and Mining Conference 44 2021 2022 2023E Zinc Unit Costs Cost of Sales in 2022 (C$) Net cash unit cost per pound is a non-GAAP ratio. See “Non-GAAP Financial Measures and Ratios” slides. $0.44 $0.55 Net Cash Unit Costs2 (US$/lb) Total Cash + Capex Cost Curve 20233 (US¢/lb) $0.30 -50 0 50 100 150 200 0% 25% 50% 75% 100% Red Dog Antamina 2023 Costs Based on Current Prices Current Spot LME Price Operating Cost Breakdown Labour 35% Contractors & Consultants 11% Operating Supplies 12% Repairs & Maintenance Parts 9% Energy 19% Other 14% Total 100% Operating Costs 24% Transportation 8% Royalties 11% Depreciation & Amorts. 5% Raw Material Purchases 52%
  • 45. Global Metals and Mining Conference Red Dog Seasonality Sales • Operates 12 months • Ships ~ 4 months • Shipments to inventory in Canada and Europe; Direct sales to Asia • ~63% of zinc sales in second half of year • ~100% of lead sales in second half of year • Sales seasonality causes net cash unit cost seasonality Unit Costs • Seasonality of Red Dog net cash unit costs largely due to lead sales during the shipping season Zinc Sales1 (%) Five-Year Average Red Dog Net Cash Unit Costs2 (US$/lb) Lead Sales1 (%) 45 Net cash unit cost per pound is a non-GAAP ratio. See “Non-GAAP Financial Measures and Ratios” slides. 0.50 0.50 0.18 0.37 Q1 Q2 Q3 Q4 24% 13% 34% 29% Q1 Q2 Q3 Q4 0% 1% 72% 27% Q1 Q2 Q3 Q4
  • 46. Global Metals and Mining Conference 46 Steelmaking Coal Business Unit
  • 47. Global Metals and Mining Conference 47 Cumulative production (million tonnes) 50 150 100 200 250 Steelmaking Coal Business Unit Highest quality HCC leading to amongst the lowest CO2 emissions in steelmaking coal EBITDA is non-GAAP financial measure. See “Non-GAAP Financial Measures and Ratios” slides. Production1 (kt) Profitability ($M) Carbon Intensity Curve2 (t CO2e/t saleable coal) Teck Second largest seaborne steelmaking coal supplier • Tier one Canadian asset portfolio with ability to generate significant cash flow through the cycle • High quality, low emissions hard coking coal sought after by the world’s largest steelmakers to help reduce their emissions • Top quartile delivered operating margins supported by stable mining drivers • Integrated operations with dedicated logistics system supports • Proven operating resilience with >50 years continuous operations 2,847 5,952 91 86 872 963 2021 2022 D&A Finance Expense Profit before Tax EBITDA 7,001 EBITDA 3,810 24.6 21.5 25.0 25.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 2021 2022 2023E 2024-2026E Teck’s premium HCC has industry-leading CO2 efficiency and will be increasingly competitive with rising CO2 prices BRITISH COLUMBIA ALBERTA Crowsnest Pass Fording River 9 Mtpa Greenhills 6 Mtpa Line Creek 3.5 Mtpa Elkview 9 Mtpa Elkford Sparwood Fernie Cranbrook 95 95A 93 3 43 95 Plant Capacity of 27-28Mtpa Local Communities Steelmaking Coal Operations Neptune Bulk Terminals (100% of coal operations)
  • 48. Global Metals and Mining Conference 48 64 65 89 92 41 44 47 47 2020 2021 2022 2023E Other Transportation Adjusted Site Cash Cost of Sales Steelmaking Coal Margins and Unit Costs Cost of Sales in 2022 (C$) Unit costs per tonne and adjusted site cash cost of sales per tonne are non-GAAP ratios. See “Non-GAAP Financial Measures and Ratios” slides. $139 Unit Costs2 (C$/tonne) Seaborne Steelmaking Coal Delivered Operating Margin1 (Wood Mackenzie, 2022) (US$/t) Operating Costs 50% Transportation 26% Depreciation & Amortization 24% Operating Cost Breakdown Labour (Internal & External) 41% Operating Supplies & Parts 31% Energy 19% SG&A and Other Costs 9% Total 100% $199 $193 $170 $136 $111 $108
  • 49. Global Metals and Mining Conference 49 High-Quality HCC Drives Premium Pricing 40% Asia (ex-China, India) 30% China 15% India 10% Europe 5% Americas Teck achieves ~92% average realization on benchmark HCC 75% high-quality HCC 25% SHCC, SSCC, PCI Varies based on mine plans 40% quarterly indexed contracts 60% spot FOB and CFR Teck Product Mix Sales Mix / Pricing Mechanism - 20 40 60 80 50% 60% 70% 80% 90% 100% CSR % Drum Strength DI (%) 30 15 US Canada Australia South Africa Australia HCC and Canada Teck HCC1 comparable with top premium product from Australia US HCC Australia SSCC South Africa Premium Pricing through Market Diversification Teck 2022 steelmaking coal revenue %
  • 50. Global Metals and Mining Conference 50 CHINA 2017: ~15% 2019: ~10% 2022: ~30% INDIA 2017: ~10% 2019: ~15% 2022: ~10% AMERICAS ~5% EUROPE 2017: ~20% 2019: ~15% 2022: ~10% ASIA EXCL. CHINA & INDIA 2017: ~45% 2019: ~55% 2022: ~45% 2nd Largest Seaborne Steelmaking Coal Supplier Competitively positioned to supply steel producers worldwide 50 Sales Distribution Targeted increased sales to China in 2021/2022 to capture CFR China price premium
  • 51. Global Metals and Mining Conference 51 Kamloops Elk Valley Vancouver Prince Rupert Trigon Terminals Neptune Terminals Westshore Terminals USA British Columbia Steelmaking Coal Supply Chain Overview Underpins resilience while providing flexibility to maximize margins Neptune Bulk Terminals (>18.5 Mtpa) • 100% ownership of coal-handling facilities • Primary terminal for market access, with competitive cost of service structure Westshore Terminals (5-7 Mtpa) • Provides volume flexibility • Contract expires Q4 2027 Trigon Terminals (Ridley) (6 Mtpa) • Alternative for sprint and recovery volume • Contract expires Q4 2027 Rail • Commercial arrangements in place to support fluid movement of trains to all three Westcoast terminals • 5% of annual volumes eastbound • Pilot program to integrate CP Rail’s hydrogen locomotives into Teck’s supply chain • Agreements with CP Rail and CN Rail expire in Q4 2026
  • 52. Global Metals and Mining Conference 52 • Monitoring data showing: ‒ Reducing selenium trend in the Fording River ‒ Stabilized selenium trend in the Elk River and Koocanusa • Expect further reductions in Fording, Elk and Koocanusa as treatment increases Water Treatment Facilities to 2027 millions of litres per day 2020 to 2022 Transitioning from AWTF to SRF 2023 to 2027 Additional SRF treatment capacity to meet future requirements Pre-2020 Initial facilities completed, successful SRF at Elkview Fording River North 2 (Phase 1) 2020 2022 2027 West Line Creek (Phase 1&2) Elkview (Phase 1) Elkview (Phase 2) Fording River South Fording River North 1 (Phase 1&2) North Line Creek Fording River North 1 (Phase 3) Elkview (Phase 3) Greenhills Creek +4x +8x 7.5 10 17.5 10 20 30 77.5 10 20 15 7.5 12.5 142.5 Active Water Treatment Facility Saturated Rock Fill Complete Under Construction Future Facility Achieving Water Quality Improvements Stabilizing and reducing selenium levels in the watershed
  • 53. Global Metals and Mining Conference 53 Copper Market
  • 54. Global Metals and Mining Conference 54 Copper Outlook • Smelter capacity increases set for China, India, Indonesia and Africa over next 5 years • Refined copper production restricted in H2 2023 on consolidated smelter maintenance • Global cathode inventories remain low, seasonal peak lowest on record • Physical cathode premiums remain low on higher scrap availability and weaker demand • Decarbonization growth accelerating • Energy transition expected to account for 60% of copper demand growth • Government support and corporate initiatives fuel growth • Renewable energy demand just starting to roll out • Technology lowering intensity of use in electric vehicles just as production growth accelerates Consumer demand pauses; decarbonization pushes ahead Raw material supply constrained • European consumer market headed for potential recession • Government spending on energy transition still positive • China’s return has been slower than expected; lockdowns starting to ease in China • Inflation and high interest rates weighing on consumer demand • Mine production expected to peak in 2024, later and lower than previously forecast • Operating costs, capex rising • Production disruptions reached all time high in 2022 • Investment in new projects slow to materialize • 2022 concentrate imports by China up 8.5%, highest on record
  • 55. Global Metals and Mining Conference 55 Copper Mine Outlook Copper Mine Production and Demand1 (kt) • Significant demand growth expected due to energy transition to renewables • Supply expected to peak in 2024, given declining grades, protracted permitting timelines, and underinvestment • Long-term projected deficit will require significant investment • Mine production grew 7 Mt in the last 20 years, market needs double that in less than 17 years • Increasing costs will likely push price floor higher ‒ 90th percentile costs is historical support level • Consensus forecasts suggest that at the low end for 2023 – 2024 forecasts, prices could trend into the 90th percentile, capping investment 0 100 200 300 400 500 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 90th 75th 50th 25th 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 2014 2019 2024 2029 2034 2039 13.2 Mt mine supply gap by 2040 projected Copper Prices and Costs2 (US$/lb)
  • 56. Global Metals and Mining Conference 56 Copper Mine Production Remains Challenged Mine Disruptions1 (kt) • Guidance misses could hit record highs in 2022 • Chilean mine production off 7.2% or 350kt YTD September, lowest since 2011 • South American mine production still below 2019 • Growth in 2023/2024 centered on small number of large mines potentially facing start up issues • Mine growth beyond 2023/2024 limited in scope, but higher in risk • >80% of current committed mine projects sanctioned prior to pandemic • Uncommitted nearby projects remain limited, challenged and face increased capex South American Mine Production2 (kt) 0 100 200 300 400 500 600 700 800 Average Monthly Operating Rate Chile Peru -1,800 -1,300 -800 -300 200 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 3.6% 2.7% 4.0% 6.6% 4.5% 7.1% 5.1% YTD
  • 57. Global Metals and Mining Conference 57 Copper Mine Supply Expected to Peak in 2024 Global Copper Mine Production1 (kt contained) • Long permitting timelines and lack of investment impacting long term supply • Mine production expected to increase only 2.5 Mt by 2027 • Chinese mine production expected to be flat to 2027 on lack of resources • Six mines expected to account for 75% of the increase to 2027 • Mine reductions and closures expected to reduce supply post 2024 • CRU estimates $105G required to fill the 2032 supply gap Significant mine increases to 20272 (kt contained) 17,000 19,000 21,000 23,000 25,000 2021 2022 2023 2024 2025 2026 2027 2021-2023 +2,090kt 2023-2025 +850 kt 2025-2027 (410) kt 0 50 100 150 200 250 300 350 400 450 Rajo Inca Grasberg Manto Verde Timok OK Tedi Salobo II Glogow Gleboki Almalyk Kansanshi - S3 Quebrada Blanca 2 Quellaveco Oyu Tolgoi Kamoa-Kakula Expansion Greenfield
  • 58. Global Metals and Mining Conference 58 Annual TC/RCs Rise on Higher Smelter Costs Spot TC/RCs rise on new mine supply and smelter delays TC/RCs1 (US$/lb) New Smelter Capacity2 (kt/yr) $0 $20 $40 $60 $80 $100 $120 $140 Annual/Mid Year Spot 2022 2023 2025 2024 0 100 200 300 400 500 600 Ex-China China • Projection of increased mine production in 2023 pushed up annual fees paid to smelters • Spot TC/RCs moved below annual TC/RCs in Q1 2023 on mine disruptions • Chinese smelters expected to add 700-800kt of smelting capacity • Chinese scrap supply increasing in Q1 2023 as recycling activity increasing after re-opening • Chinese concentrate imports reach record high in 2022 up 8.1% and up further 5% in Q1 2023 • Construction started on next wave of ex-China smelters (India/Indonesia/Africa)
  • 59. Global Metals and Mining Conference 59 Copper Concentrate Market Outlook Untenable deficits post 2025 will require new supply Concentrate Balances, excl. Uncommitted Projects1 (kt) -1000 -800 -600 -400 -200 0 200 400 2022 2023 2024 2025 2026 2027 Teck CRU (Adj) WoodMac (Adj) S&P • Smelter capacity expected to grow strongly from 2023 • Unlikely to absorb all concentrate from new and existing mines • Surpluses in 2023/2024 still relatively small, recent events show an increase of 1.2% in mine disruptions would eliminate surplus • Uncommitted projects are needed to fill shortfall • Without adjustments that either delay smelter ramp ups or increase committed mine production, concentrate stocks will be depleted by 2026
  • 60. Global Metals and Mining Conference 60 Long Term Copper Metal Demand Growth Driven by Energy Transition Total Copper Demand1 (Mt) • Metals enable decarbonization, facilitating the reduction of GHG emissions through renewable power and electrification • Under an International Energy Agency (IEA) 1.5˚C scenario: ‒ Growth of >20 Mt expected by 2035 years ‒ Copper use in the energy transition will account for 45% of copper demand by 2050 • CRU estimates that global energy transition could account for 60% of copper demand growth over the next 5 years Copper First Use and End Use Demand2 67% 55% 28.8 68.5 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 2020 2025 2030 2035 2040 2045 2050 Non-Energy Transition Specific Electric Vehicles Solar Wind Storage Chargers Grid Related Consumer & General 22% Transport 11% Industrial Machinery 11% Construction 28% Electrical Network 28% Non-Energy Transition Specific 52% Grid Related 24% Electric Vehicles 16% Copper End Uses (2035) Copper First Use (2020) Energy Storage 1% Charging Stations 1% Solar 3% Wind 3% 28.8 Mt Total 48.8 Mt Total
  • 61. Global Metals and Mining Conference 61 0 2 4 6 8 10 12 14 16 0 200 400 600 800 1,000 LME Stocks Comex Stocks SHFE Stocks Bonded Estimate Days of Consumption Total Stocks LTA Total Copper Short Term Outlook Copper Metal Premiums1 (US$ per pound) • Physical demand in Europe remains supportive ‒ LME stocks at historic lows globally ‒ Russian exports shift to China ‒ Europe to import more/export less • Operating costs, logistics costs, financing costs, decarbonization costs, all rising – pushing contract premiums higher ‒ 2023 European premium up 230% ‒ New green cathode premium in Europe • Restocking required to bring market back to balance could add >780kt to apparent consumption • Chinese consumer demand in 2023 incentivized by drop in lending rates • Green energy to drive Chinese copper demand Global Copper Stocks2 (Mt & Days of Consumption) 750t needed to restock 0 100 200 300 USA Mid-West Delivered Shanghai Grade A CIF Germany Grade A - Delivered Codelco Benchmark Europe 25-year average stock days of consumption: 15 days or 1.1Mt
  • 62. Global Metals and Mining Conference 62 Copper Scrap is Part of the Long Term Solution Lower prices are restricting short term scrap supply Copper Scrap1 (kt) • Scrap availability tends to fluctuate with copper prices in the short term • Copper scrap is 33%1 of total copper demand and could rise to 40% by 2035 • However, scrap availability remains tight, as shipments continue to be restricted by logistics issues and trade barriers • Over the next decade scrap availability may increase, but trade flows are likely to change as new secondary processing facilities are built outside of China • An improvement of 2% in global recycling rates could provide up to 1.0Mt to global supply China Copper Scrap Imports vs. New Capacity2 0 5,000 10,000 15,000 20,000 2020 2022 2024 2026 2028 2030 2032 2034 33% 40% ROW 19% Taiwan 4% Korea 4% Hong Kong 5% Thailand 6% USA 14% Japan 14% Malaysia 17% Europe 17% China Imports China 43% India 7% Japan 5% Korea 3% Germany 7% Italy 7% USA 10% Mexico 3% Others 15% New Secondary Capacity Clean Scrap Refinery Scrap Obsolete Scrap 1.4 Mt Total 1.7 Mt Total
  • 63. Global Metals and Mining Conference 63 Transportation • EV demand drove 1Mt of copper foil investments for batteries in 2021 • Projected roll out rates for EVs have increased 37% in the last year • Requirements for charging stations expected to more than double by 2035 Wind • Copper demand from wind power expected to more than double by 2035 • Offshore wind could grow 7x (base case) and >13x Electrification • Requirements for new electric grid infrastructure to support higher electricity output could add an additional 4Mt to copper demand to meet IEA 1.5˚C scenarios Solar • Copper solar growth from several components including inverters, wire and cable, transformers, solar trackers and more • By 2035: Solar demand could increase by 235kt under base case assumptions and by 1.1 Mt under an IEA 1.5˚C scenario Significant Demand Growth Expected Due To Energy Transition To Renewables
  • 64. Global Metals and Mining Conference 64 Copper Metal Outlook Global Visible Refined Copper Stocks (kt) and LME Price1 (US$/lb) • Global exchange stocks well below historic levels • Stocks declining since 2013 peak, down 1.3Mt • Stocks have fallen 300kt since end Q2 2022 • Total global stock days 3.4 days, down from long term average of 15 days • Market deficits on supply disruptions continue through COVID lockdowns • New mine supply coming in 2023 will only partially offset lower demand growth • Risks to supply increasing at same time as concerns grow over demand growth CRU Historic Global Cathode Balance2 (kt) (400) (300) (200) (100) - 100 200 300 400 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (est) 5-year average US$3.52/lb; 10-year average US$3.10/lb 0¢ 100¢ 200¢ 300¢ 400¢ 500¢ 0 200 400 600 800 1,000 1,200 1,400 1,600 LME Stocks Comex Stocks SHFE Stocks Bonded Estimate LME Price
  • 65. Global Metals and Mining Conference 65 Structural Deficits Grow Post 2025 Committed projects push market into temporary surplus Refined Global Cathode Balance Quarterly Change, excl. Uncommitted1 (kt) -1600 -1400 -1200 -1000 -800 -600 -400 -200 0 200 400 600 2021 2022 2023 2024 2025 2026 2027 CRU (Adjust) S&P Global WM (Adjust) Teck Still projecting deficits on weaker short term demand • Physical demand still strong revising up short-term growth • New energy demand strong; regional energy security priority over GHG emissions • Chinese new energy vehicle production in 2022 reached 7 million units, expected to be ~10 million in 2023 • Auto sales in Europe/N.A. up in Q1 2023 on higher fleet sales; production still below pre-Covid levels - strong pent-up demand remains • Chinese copper demand picked up since March, driven by infrastructure and new energy, which would be the major drivers in 2023
  • 66. Global Metals and Mining Conference 66 Zinc Market
  • 67. Global Metals and Mining Conference 67 Zinc Outlook • Smelters suspended in Europe on high energy prices • Close to 30% of European annual capacity idled • North American smelters struggled in 2022, improved outlook for 2023 • Global metal inventories drawn down to historic lows; all rebuilding happening in Asian warehouses • Physical premiums rise in US and EU to record highs • Decarbonization growth accelerating, benefits zinc • Government and corporate initiatives fuel support for renewable infrastructure • Wind energy, solar energy, all supported by galv. steel • IZA suggests additional 375kt of demand from renewables by 2030 Consumer demand pauses; decarbonization pushes ahead Raw material supply increasing; smelters constrained • European consumer market headed for potential recession • Auto sales/production in EU weak; accelerating in North America. • China continues to destock through the zinc value chain primarily at fabricators • Mine production expected to peak in 2025 • South American zinc production still below pre-COVID levels • Investment in new projects slow to materialize • Concentrate imports by China hit record high in 2022; imports continue through Q1 2023 up 30% • Concentrate import gains exceed metal import losses in last 9 months
  • 68. Global Metals and Mining Conference 68 0 2,500 5,000 7,500 10,000 12,500 15,000 17,500 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Zinc Concentrate Outlook Zinc Mine Production and Demand1 (kt) • Long term supply lags demand, with declining production at higher costs/lower grades from existing mines and exploration under investment • 60% of demand tied to protection of steel; decarbonization is steel intensive • Continued demand growth with reduced inventories and strong physical premiums • Mine costs are on the rise as TC rise and consumable increase. • Incremental production came from higher cost or lower grade extensions, increasing C1 and sustaining capital costs by 22% since 2014 • 75th percentile is historical support level Zinc Prices and Costs2 (US$/lb) 0 25 50 75 100 125 150 175 200 225 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 90th 75th 50th 25th 6.9 Mt mine supply gap by 2040 projected
  • 69. Global Metals and Mining Conference 69 Zinc Mine Supply Expected to Peak in 2025 Global Zinc Mine Production1 (kt contained) • Mine production projected to fall by nearly 1.0 Mt by 2030 ‒ Represents a potential 2.0 Mt shortfall to expected smelter production ‒ Production from established zinc mines only increased by 1.5% since 20131 • No shortage of zinc supply, in the short term, as smelter cuts and mine growth will allow mine supply to exceed smelter demand to 2024 • Beyond 2024 additional production will be required • However, recent record prices failed to move significant production forward ‒ Only <0.5 Mt from <10 new projects committed Significant mine increases to 20272 (kt contained) 0 5,000 10,000 15,000 2021 2022 2023 2024 2025 2026 2027 2021-2023 -77 kt 2023-2025 +590 kt 2025-2027 (-488) kt 0 50 100 150 200 250 300 350 400 Neves Corvo Aripuana Asmara Vares Taifeng Zhugongtang Zhairem Korbalikhinsky Gamsberg Buenavista Kipushi Ozernoye Expansion Greenfield China ROW Others
  • 70. Global Metals and Mining Conference 70 Annual and Spot TC/RCs Rise in 2022 and 2023 TC/RCs1 (US$/lb) • Annual TC/RCs rose in 2022 and again in 2023 • Spot TC/RCs remained started climbing in 2022 but have been falling since December • Higher zinc prices, higher TCs and higher physical premiums are providing strong revenues for smelters. • Imported concentrates back to being more profitable. Chinese profitability up 13% YoY • Chinese mines’ winter shutdown narrowed price differential to imported. Imported concentrates continue to increase up 30% in Q1 • Chinese smelters delaying routine maintenance in fear of falling import TCs in coming months Chinese Concentrate Import Profitability2 (RMB) 0 100 200 300 400 Spot TC Benchmark TC 2023 Q1 spot TCs up 82% vs. Q1 2022 & down -4% QOQ Annual TCs up 19% YoY (4,000) (2,000) 0 2,000 4,000 6,000 Imported Concs P&L Domestic Concs P&L
  • 71. Global Metals and Mining Conference 71 Chinese Zinc Mine Growth Continues to be Limited Chinese Zinc Mine Growth Estimates1 (kmt contained) Zinc Ore Grades at Chinese Mines2 (Ore grade, zinc %) 100 350 270 180 300 250 237 100 100 100 50 80 100 360 200 -630 83 -38 -153 40 -50 50 0 0 -800 -600 -400 -200 0 200 400 600 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023E2024E2025E Early-year estimate Adjusted estimate 0.0 1.0 2.0 3.0 4.0 5.0 6.0 Operating zinc mines Zinc mine projects • Delayed projects and decreasing ore grades continue to impact Chinese mines • Chinese mine production flat since 2018 • Chinese mine production growth continues to be limited, projections by domestic analysts see limited growth out to 2025 • New mine production growth offset by: ‒ Environmental/safety restrictions ‒ Falling grades ‒ COVID related disruptions ‒ Power restrictions • Several large projects in the pipeline in China, but average grade below 3.0%; high operating costs have kept these projects offline
  • 72. Global Metals and Mining Conference 72 Zinc Concentrate Market Outlook Upcoming deficits will require new mine supply Concentrate Balances, excl. Uncommitted Projects1 (kt) -1200 -1000 -800 -600 -400 -200 0 200 400 600 800 2022 2023 2024 2025 2026 2027 Teck CRU (Adj) WM (Adj) • Smelters idled in 2022 on high energy costs will likely return by H2 2023 • Short term concentrate surpluses will create a two-tiered market, based on quality • Lack of investment and low metals stocks will require additional zinc units post 2025 • Zinc-focused exploration investment has only been 26% of copper-focused exploration investment over the past 5 years1 • Few quality greenfield or advanced exploration opportunities surfaced in the last 10 years ‒ Except Teck’s Teena discovery in Australia and the Hermosa Pb-Zn project in Arizona
  • 73. Global Metals and Mining Conference 73 Zinc Metal Short Term Outlook US Net Short Position in Zinc1 (kt) • US produces less than 25% of its demand for zinc • North America meets only ~80% of US demand • Over the past decade, a shortfall of 150-275 kt/yr existed beyond N.A. output and imports • In 2012, there was >1.2 Mt of zinc metal in the US in LME warehouses • Today, US LME inventories are nil and Europe is no longer in a position to support US deficits, driving physical premiums higher Zinc Metal Premiums3 (US$ per tonne) 0 200 400 600 800 1,000 1,200 1,400 2012 2014 2016 2018 2020 2022 2024 U.S. Production Zinc from Canada Zinc from Mexico Zinc from Others U.S. Zinc Demand $0 $200 $400 $600 $800 $1,000 $1,200 European US Midwest Global stocks have been filling the void2 (kt) 0 500 1,000 1,500 LME Comex SHFE Bonded Estimate US market remains strong LME inventories filled shortfall since 2012 but now depleted
  • 74. Global Metals and Mining Conference 74 U.S. Bipartisan Infrastructure Bill $1 trillion investment to further galvanize U.S. demand • Largest investment in public transportation ‒ 24,000 buses, 5,000 rail cars, 200 station, thousands of miles of track, power systems • Investment in passenger rail: ‒ Modernize Northeastern Corridor ‒ Expand coverage, complete maintenance • 45,000 bridges nationwide to be overhauled or replaced • Expanding and diversifying energy grid ‒ Thousands of new solar and wind projects planned and under development
  • 75. Global Metals and Mining Conference 75 0 250 500 750 1,000 China Short Term De-stocking Zinc China Domestic Zinc Stocks1 (kt) Smelter + consumer stocks Domestic commercial stocks Bonded stocks End 2022 stocks down ~60kt MoM; End Q1 2023 stocks down 110kt YoY China Galvanized Plate Production (kt)2 300 400 500 600 700 800 900 1,000 Galvanized plate production remained high since Q4 2022 • Zinc demand has accelerated since Q4 2022, especially infrastructure and auto production • 2022 EVs production doubled YoY reaching 7 million units. Q1 production up 28% YoY • NEVs require more high-strength galvanized steel pushing up zinc intensity in auto • Infrastructure strong since Q4, major zinc demand driver • Negative import arbitrage led to drastic drop of imported metal, causing the de-stocking last year into this year • Seasonal re-stocking started around Chinese New Year as usual but the peak in 2023 was ~100kt lower than 2022 and 300kt lower than 2019
  • 76. Global Metals and Mining Conference 76 Global Zinc Metal Outlook Global Visible Refined Zinc Stocks (kt) and LME Price1 (US$/lb) • Metal inventories have fed demand for almost ten years, and are now at historically low levels ‒ The majority has moved from warehouses in New Orleans to Asia • Premiums in Europe and North America remain at record highs ‒ US relies heavily on imports, as North American supply meets only 80% of its demand ‒ European energy crisis curtailing zinc metal production, now pulling metal inventories from Asia to meet demand • Smelter growth limited, with few projects ex-China and only <2 Mtpa of capacity in China that could come online within 5 years Additional Zinc Metal Required to Fill China Gap2 (kt) $0.00 $0.30 $0.60 $0.90 $1.20 $1.50 $1.80 $2.10 0 200 400 600 800 1,000 1,200 1,400 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 LME Comex SHFE LME Price 5-year average US$1.33/lb; 10-year average US$1.19/lb 0 400 800 1,200 1,600 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
  • 77. Global Metals and Mining Conference 77 Long Term Zinc Demand Growth Tied to Protection of Steel Zinc Demand1 (Mt) • 60% of zinc concentrate demand from galvanizing steel, which extends service life and makes infrastructure more sustainable • Decarbonization will be steel intensive • Under an accelerated IEA 1.5˚C scenario renewables will need to account for close to 10% of end use demand, rising to 25% by 2050 • Demand for zinc in the energy transition could go from 1.0Mt today to 4.7 Mt by 2050 • The IZA estimates that zinc use in wind applications could rise to 66kt by 2030 and in solar to 166kt • The use of zinc in energy storage batteries could rise to 150kt by 2030 Zinc First Use and End Use Demand2 92% 75% 0.0 5.0 10.0 15.0 20.0 25.0 2020 2025 2030 2035 2040 2045 2050 Non-Energy Transition Specific Electric Vehicles Solar Wind Storage Zinc First Use (2022) Zinc End Use (2022) Consumer Products 6% Construction 51% Transport 20% Industrial Machinery 7% Infrastructure 16% Galvanizing 52% Oxides & Chemical 7% Brass & Semi Cast 16% Semi-Manufactured 6% Die Cast Alloys 15% Other 4% 13.1 Mt Total 13.1 Mt Total
  • 78. Global Metals and Mining Conference 78 Steelmaking Coal Market
  • 79. Global Metals and Mining Conference 79 Steelmaking Coal Outlook • Decarbonization growth accelerating • Government and corporate initiatives fuel support for renewable infrastructure • Wind energy, solar energy, all supported by steel • New BOF (suggest using BF or integrated) steel mills under construction in India and S.E. Asia Steel mill production picking up Raw material supply constrained by logistics • Met coal production from major producers is down 5.7% or 2.1Mt Feb YTD and down 12% or 4.8 Mt over Feb YTD 2019 • Wet weather, labour shortages, logistical challenges and challenging geological conditions all contribute • Seaborne supply: ‒ Investment in new mine projects slow as Australian companies focus on divestitures ‒ Permitting and approvals face increased scrutiny • Steel prices are picking up though steel demand recovers though with slow pace. • >70% of blast furnace (BF) capacity that was idled in 2022 has being announced to restarted. • China crude steel production is up 9 Mt YTD February, still up 19 Mt over YTD February 2019 • EAF (electric arc furnaces) continues to be impacted more than BOF so far • China is returning to normal after reopening in December 2022
  • 80. Global Metals and Mining Conference 80 Steelmaking Coal Market Facts Seaborne Metallurgical Coal Exports (2021e)3 (Mt) Seaborne Metallurgical Coal Market Geographic Breakdown (2021e)4 (Mt) Seaborne Metallurgical Coal Market Size (2021e)1 (Mt) • ~0.7 tonnes of steelmaking coal is required for each tonne of steel2 • Blast furnace / BOF share of crude steel production globally is about 59% • Majority of the growth in BOF capacity is being built in S.E. Asia and India Hard Coking Coal (HCC) & Semi-Hard Coking Coal (SHCC) 191 Mt (66%) Semi-Soft Coking Coal (SSCC) 39 Mt (13%) Pulverized Coal Injection (PCI) 61 Mt (21%) 291 Mt Total BHP 35 Mt (12%) Top 10 (58%) (shaded) Remaining Supply (42%) 291 Mt Total Japan 18% Korea 11% Taiwan 4% China 16% India 23% S.E. Asia 6% Europe 17% South America 5% 291 Mt Total Anglo 15 Mt (5%) Mitsubishi 28 Mt (10%) BMA 57 Mt (20%) Teck 25 Mt (9%) Teck is the #2 seaborne exporter of metallurgical coal
  • 81. Global Metals and Mining Conference 81 Critical Ingredient to Global Economic Growth Steel’s Essential Role Premium Steelmaking Coal Supports Decarbonization Strategy Steel demand is forecast to remain strong through to 2050 • Industrialized growth in India and Southeast Asia • China demand expected to remain steady until 2030 • >70% of global steel production through blast furnace • 100% recyclable Essential for economic growth in a low-carbon world • Steel is not substitutable for most applications • Essential to lifting global living standards • Steel is required for infrastructure development and to support electrification and decarbonization HCC a critical raw material to steel production • 0.7t of steelmaking coal required for each tonne of steel • Premium HCC generates 5–30% lower CO2 emissions in blast furnaces • To meet decarbonization targets, steelmakers are expected to increase high-grade HCC • Blast furnace + CCUS is the only technology that can be adopted with speed and scale Supply gap forecasted by 2025 without additional supply • Seaborne HCC demand expected to remain resilient, driven by India and Southeast Asia • Supply growth largely from existing mines, subject to investment, labour, logistics and permitting challenges • 120Mt global supply gap expected by 2040 • Material impact of green steel technologies expected in the second half of the century
  • 82. Global Metals and Mining Conference 82 Steelmaking Coal Outlook Fundamentals remain tight Steelmaking Coal Mine Production and Demand1 (kt) • Potentially small surplus / balanced market until 2024 • Supply growth constrained and expected to peak in 2026 • Permitting for new projects and miners divesting creating uncertainty in supply • Demand expected to increase by 57 Mt by 2030, driven by growth from India and Southeast Asia • In the past 10 years: ‒ 5-year rolling average >US$170/t for 50.0% of the time ‒ Average quarterly spot price >US$170/t for 42.5% of the time Cost of Production2 (US$/mt) Significant mine supply gap expected between 2025 and 2030 without additional projects 100 150 200 250 -20 -10 0 10 20 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 +/- 2% Balance Supply (RS) Demand (RS) 0 100 200 300 400 500 600 700 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024
  • 83. Global Metals and Mining Conference 83 Steelmaking Coal Prices Steelmaking Coal Prices1 (US$ per tonne) FOB Price 5-year average US$225/t 10-year average US$184/t CFR China Price 5-year average US$255/t 10-year average US$201/t $0 $100 $200 $300 $400 $500 $600 $700 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 AVG Platts PLV, Argus, TSI Prem Avg Platts, Argus, TSI PLV CFR
  • 84. Global Metals and Mining Conference 84 Australia and US Steelmaking Coal Exports 2022 Australia and US coal exports not returned to 2019 levels US Exports1 (Mt) Australian Exports1 (Mt) 0 20 40 60 80 100 120 140 160 180 200 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 0 10 20 30 40 50 60 70 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
  • 85. Global Metals and Mining Conference 85 Canadian and Mozambique Steelmaking Coal Exports Canadian exports impacted by COVID, weather and other unexpected disruptions Mozambique Exports2 (Mt) Canadian Exports1 (Mt) 0 5 10 15 20 25 30 35 40 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 0 1 2 3 4 5 6 7 8 9 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
  • 86. Global Metals and Mining Conference 86 High Steelmaking Coal Prices not Leading to Higher Capex Investment boom unlikely to reoccur in coal sector • Energy investment turns toward clean energy • Large investors more cautious on coal mine developments in order to meet the Paris goals • Permitting and approvals to face increased scrutiny • Royalty hike in Queensland, Australia • 10% coal reservation policy with cap price in New South Wales, Australia Australian Coal Export Prices and Capex1 0 50 100 150 200 250 300 350 400 450 500 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Australian Capex (A$m), LHS Australian coal export prices (A$/t), RHS
  • 87. Global Metals and Mining Conference 87 Chinese Domestic Supply Limited, Inventories Low Chinese Monthly Coking Coal Production1 (Mt) • Government continues to increase total coal production, but coking coal increases limited – 2022 ROM up +13% compared to 2013, the previous record, – Coking coal output down -3% • Natural constraints (limited reserves, complex geology), • Ongoing mining accidents (leading to longer safety inspections) • Steel mills managing raw material inventories at low levels due to poor margins. – Inventories remaining at historical low levels at both ports and plants Chinese Monthly Mongolian Imports2 (Mt) 20 25 30 35 40 45 50 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2020 2021 2002 2023 0.0 1.0 2.0 3.0 4.0 5.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 (pre-covid) 2020 2021 2022 2023 Historical High 3.9 Mt in Sep/20 Coking coal production increase limited Mongolian imports returning to pre-COVID levels
  • 88. Global Metals and Mining Conference 88 Chinese Steel Margins Weak, EAF Production Restricted -200 0 200 400 600 800 Argus PHCC CFR China China HRC Gross Margins TSI Iron Ore 62% Fe -20 0 20 40 60 • HRC steel spot margins have been weak since Q3 2022 (calculated on spot coal prices) • Large Chinese steel mills had decent profit margins in 2022 due to lower annual terms from domestic coal mines • Steel demand recovery slower than expected but a small rebound is expected for 2023 amid improving property market and resilient infrastructure investment • EAF production continues to be restricted to below 50% due to high energy costs and poor margins Chinese Spot Steel Margins1 (US$/t) Chinese CISA Mills Profit Margins2 (US$/t)
  • 89. Global Metals and Mining Conference 89 Steelmaking Coal Short Term Outlook for China Blast Furnace Utilization Rates in China1 (%) • China’s Jan-March 2023 crude steel output rose +18 Mt due to strong infrastructure investment, restocking and exports • Full year production will likely remain above ~1Bt (2022: 1.018 Bt) • Hot metal output up +19 Mt as scrap/EAF impacted by Covid shutdowns and continuing poor steelmaking margins • China lifted the Australian ban on coal imports earlier this year; Australian import volume may not increase due to coal supply tightness • Zero coal import tariff extended to the end of 2023 which is favorable to ex-Australia imports 0% 20% 40% 60% 80% 100% Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 BF EAF China Steel Mills Coking Coal Stocks2 (Mt) 10 15 20 25 30 35 40 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 2020 2021 2022 2023
  • 90. Global Metals and Mining Conference 90 0 2 4 6 8 10 Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 May-21 Jul-21 Sep-21 Nov-21 Jan-22 Mar-22 May-22 Jul-22 Sep-22 Nov-22 Jan-23 Mar-23 Coking Coal Thermal Coal Chinese Imports from Mongolia and Russia are Increasing Mongolian Coal Imports: Daily Coal Trucks Crossing Ganqimaodu2 Russian Coal Imports1 (Monthly, Mt) Ukraine War Doubling imports from Russia (2022 +96%) • 2022 @ 21.0Mt, up +8.7Mt YoY • Jan-Mar at record levels of 2.4Mt/month • Now >50% of ex-Australia seaborne imports • Heavily discounted Russian coal accounts for >50% of China 2022 imports (21Mt of 38 Mt) Mongolian imports rise to a new high • Jan-Feb: 6.5 Mt, a Jan-Feb record, +5.3 Mt YoY • Daily trucks >800 since Feb, suggesting >3Mt/month • Main border offices set higher guidance for 2023 • Mongolia pushing border rail links 0 500 1000 1500 Daily Average Annual Daily Average
  • 91. Global Metals and Mining Conference 91 Seaborne HCC Demand Expected to Increase Global Seaborne HCC Demand1 (Mt) • Demand expected to increase by 57 Mt by 2030, driven by growth from India and Southeast Asia ‒ India ~52% of the growth, or +29 Mt ‒ Southeast Asia ~40% of growth, or +22 Mt ‒ China expected to fall ~7% or -2 Mt • Material impact on blast furnace operations resulting from green steel technology not expected until after 2050 • Strong high quality coking coals will grow in rarity with new projects focused on weaker coals. • Prime hard coking coal will be important to blast furnace decarbonization efforts Incremental Seaborne HCC Demand Growth to 2030 by Region2 (Mt) S.E. Asia South America China Europe India Japan/Korea/Taiwan 60 80 100 120 140 160 180 200 220 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 -10 0 10 20 30 40
  • 92. Global Metals and Mining Conference 92 Low Steel Stocks in China Supporting Prices Low seasonal build has stocks near record lows Port Inventories being drawn down and at historical lows1 (Mt) Steel mill inventories at historical lows2 (Mt) • Steel production strong through March after +5.6% rise in Jan/Feb • Steel production curbs to keep production similar to 2022, likely to start in the coming months • Hot Metal production saw higher growth than EAF due to high costs and scrap availability • Capacity Utilization had been running over 90%, now just below China steel production remains strong Domestic steel prices remain weak • Chinese steel prices continue to fall on persistent high steel production and weak domestic demand • Steel consumption down slightly YTD • Steel margins remain stable on lower input costs 0 5 10 15 20 25 30 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 2020 2021 2022 2023 60 70 80 90 100 110 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2020 2021 2022 2023
  • 93. Global Metals and Mining Conference 93 Chinese HCC Imports Expected to Remain Resilient 2022 ex-Australia seaborne imports up to new record high of 36 Mt Chinese HCC Imports1 (Mt) • China committed to decarbonizing steel, with a peak by 2030 and carbon neutrality by 2060 • Domestic Chinese coal production restricted by reserve, quality, and limited supply • Coastal steel mills are users of high-quality HCC and are more competitive than inland steel mills • Zero coal import tariffs extended to the end of 2023 (started from May 1, 2022) to boost imports • China lifted the unofficial ban on Australian coal ‒ 0.07 Mt in January-February 2023 (only four users granted initially) ‒ The grant expanded to all in March, but the price arbitrage has yet fully open 21 30 16 10 9 13 9 10 13 34 36 14 30 31 26 27 31 28 31 35 6 2 19 15 15 13 24 26 28 34 24 14 26 0 20 40 60 80 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Mongolia Australia Ex-Australia Chinese Crude Steel Production (CSP), Hot Metal Production (HMP) and Coal Production2 (Mt) 0 100 200 300 400 500 600 0 200 400 600 800 1,000 1,200 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023e CSP (LHS) HMP (LHS) Coking Coal Production (RHS)
  • 94. Global Metals and Mining Conference 94 Chinese Scrap Use Remains Low Scrap supply and elevated power prices limit EAF share in steel output China Steel Use By Sector3 (2000-2020) China’s scrap ratio lower than global average of 29%1 (2022) EAF share forecast to rise to 16% by 20272 Crude Steel Electric Arc Furnace (EAF) Hot Metal Average EAF utilization 36% YTD October 2022 vs 64% in 2021 Construction 50-60% Machinery 15-20% Auto 5-10% Others 15-25% 0 200 400 600 800 1000 1200 0% 20% 40% 60% 80% 100% Türkiye US EU Russia Korea Japan China
  • 95. Global Metals and Mining Conference 0 50 100 150 200 2022 2025 2030 Myanmar Vietnam Malaysia Indonesia Cambodia Philippines India Exp. India Greenfield 0 5 10 15 20 2022 2025 2030 Detian Coke Kinrui Kinxiang Weishan Planned Blast Furnace Capacity Set to Grow Blast Furnace Capacity1 (Mt) Indonesian Merchant Coke1 (Mt) Asia committing to 20+ years of traditional steelmaking • >50Mt of hot metal expansions/projects announced plus >20Mt of planned coke capacity in SE Asia in the next 3 years • India’s Steel Ministry set target to double steel capacity to 300Mt by FY2030-31 • Southeast Asia Steel Institute (SEASI) expects to see ~90Mt of additional steel capacity in SE Asia • In long term, planned BF capacity expansions to continue supporting PHCC demand growth ‒ ~200Mt of hot metal expansions/projects announced to be built vs ~45Mt of BFs announced to be shut down/replaced with DRI-EAF route European steel mills seek alternatives to steelmaking coal • Hydrogen plants at pilot stage only, commercial technology still decades away and still prohibitively expensive • Mills seek alternative carbon abatement in CCS/CCUS 95
  • 96. Global Metals and Mining Conference 96 Indian Steelmaking Coal Imports Mid- & long-term imports supported by strong demand and government targets Indian Seaborne Coking Coal Imports2 (Mt) Indian Crude Steel and Hot Metal Production1 (Mt) 27 29 35 41 37 35 38 35 34 44 32 3 3 2 1 1 3 4 4 4 3 7 1 1 2 1 2 3 4 5 3 3 3 4 4 3 3 2 4 5 8 7 10 15 0 10 20 30 40 50 60 70 Australia USA Canada Other 0 20 40 60 80 100 120 140 CSP (LHS) HMP (LHS) India crude steel production and seaborne coking coal imports surpassing 2019 levels
  • 97. Global Metals and Mining Conference 97 Seaborne HCC: Summary Global Seaborne Coking Coal Outlook1 (Mt) • Balanced market in 2023 from a deficit in 2022; supply likely coming to market in H2/23 • Steelmaking coal demand is supported by steel production picking up • The continued unexpected supply disruptions and potential growth of China’s imports from Australia could drive the market to deficit in 2023 0 50 100 150 200 250 300 114 Mt Supply Gap3 Australia Supply Canada Supply ROW Supply India Demand Total World Demand Short Term Outlook Medium-to-Long-Term Outlook • Future demand growth mainly from India & SE Asia • Material impact on BF operations resulting from green steel technology expected post 2050 • Investment in met coal mining discouraged by carbon emission pressure, high royalty rates and prolonged permitting process. • Future supply growth mainly from existing mines. Limited committed projects, despite all projects showing positive margins at today’s prices • Forecast market shortage by 2025, without additional production before 2024
  • 98. Global Metals and Mining Conference Appendix