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February 24, 2015
Forward Looking Information
Both these slides and the accompanying oral presentation contain certain forward-looking statements within the meaning of the United States
Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) and
comparable legislation in other provinces. Forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does
not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or
variation of such words and phrases or state that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken,
occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Teck to be materially different from any future results, performance or achievements expressed or
implied by the forward-looking statements. These forward-looking statements include statements relating to management’s expectations with
respect to our diversification and the benefits of diversification, our production, costs and sales targets and guidance, mine lives and resource
lives for our various commodities, costs for our projects, 2015 projected capital expenditures, timing of production at our Fort Hills project,
anticipated economic benefits and contributions of Fort Hills project, including, but not limited to, yield and free cash flow, our dividend policy
including our goal of paying a sustainable dividend, our investment rating, sensitivity of our profit, EBITDA and operating expenses to oil prices
and currency exchange rates, total liquidity, free cash flow examples, potential fuel cost reduction as a result of converting to LNG for trucks,
expected work and expenditures in respect of the Elk Valley Water Quality Plan, expectation that we have access to cash and credit lines
sufficient to meet our capital commitments, our expectation that we should complete 2015 with over $1 billion in cash, demand and market
outlook for commodities.
These forward-looking statements involve numerous assumptions, risks and uncertainties and actual results may vary materially. These
statements are based on a number of assumptions, including, but not limited to, assumptions regarding general business and economic
conditions, interest rates, the supply and demand for, inventories of, and the level and volatility of prices of coal, zinc, copper and gold and other
primary metals and minerals produced by Teck as well as steel, oil, natural gas and petroleum, the outcome of engineering studies currently
underway in connection with Teck’s development projects, the timing of receipt of regulatory and governmental approvals for Teck’s
development projects and other operations, receipt of permits to mine, costs of production at our operations and production and productivity
levels, as well as those of Teck’s competitors, power prices, market competition, the accuracy of Teck’s reserve and resource estimates
(including with respect to size, grade and recoverability) and the geological, operational and price assumptions on which these are based, the
assumption that our board will approve dividends, the resolution of environmental and other proceedings, our ongoing relations with our
employees and partners and joint venturers, the availability of financing for development projects and the future operational and financial
performance of the company generally. Assumptions regarding the sensitivity of EIBTDA and operating costs to oil prices are based on
assumptions regarding the amount of diesel fuel used in operations and transporting our coal products, and is also based on an assumed
Canadian/U.S. dollar exchange rate of $1.20. Assumptions regarding the impact of currency exchange are based on current commodity prices.
Examples regarding cash flow are based on the commodity and exchange assumptions disclosed therein. Statements regarding our potential
cash position at the end of the year are based on assumptions that no unusual transactions occur over the year and on current commodity
prices. The foregoing list of assumptions is not exhaustive.
2
Forward Looking Information
Events or circumstances could cause actual results to differ materially. Factors that may cause actual results to vary include, but are not limited
to: unanticipated developments in business and economic conditions in the principal markets for Teck’s products or in the supply, demand, and
prices for metals and other commodities to be produced, changes in power prices, changes in interest or currency exchange rates, inaccurate
geological or metallurgical assumptions (including with respect to the size, grade and recoverability of mineral or oil and gas reserves and
resources), changes in taxation laws or tax authority assessing practices, legal disputes or unanticipated outcomes of legal proceedings,
unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications or
expectations, cost escalation, unavailability of materials and equipment, government action or delays in the receipt of permits or government
approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters),
assumptions used to generate our economic analysis, decisions made by our partners or co-venturers, political events, social unrest, lack of
available financing for Teck or its partners or co-venturers, and changes in general economic conditions or conditions in the financial markets.
Our Fort Hills project is not controlled by us and construction, sanction and production schedules may be adjusted by our partners. Credit
agencies set our credit rating. The effect of the price of oil on operating costs will be influenced by the exchange rate between Canadian and
U.S. dollars.
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, interruption in transportation or utilities, adverse weather conditions, and that there are no material unanticipated variations
in the cost of energy or supplies. Statements regarding anticipated coal sales volumes and average coal prices for the quarter depend on timely
arrival of vessels and performance of our coal-loading facilities, as well as the level of spot pricing sales.
Certain of these risks are described in more detail in Teck’s annual information form available at www.sedar.com and in public filings with the
SEC at www.sec.gov. Teck does not assume the obligation to revise or update these forward-looking statements after the date of this document
or to revise them to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
3
Agenda
Teck Overview
Commodity Market Observations
Teck Update
4
About Us
Canada’s Largest Diversified Natural Resources Company
Top ten copper
miner in the
Americas
#3 zinc miner in the
world
Building an
energy business
# 1 Producer of steelmaking
coal in North America
# 2 Seaborne exporter of
steelmaking coal globally
Safety is our core
value
Implementing a
comprehensive
sustainability strategy
5
Attractive Portfolio Of
Long-Life Assets & Resources
Producing through multiple price
cycles after capital is recovered,
enhancing returns
Focused on the Americas
& Low Risk, Stable Jurisdictions
Strong Resource Position With
Sustainable Long-Life Assets
Coal Resources >100 years
Copper Resources >30 years
Zinc Resources >20 years
Energy Resources >50 years
6
Teck has good leverage to stronger zinc and copper
markets, and benefits from the weaker Canadian dollar
The Value of Our Diversified Business Model
Cash Operating Profit 2014
Coal
~1/3rd
Copper
~60%
Zinc
~40%
Base
Metals
~2/3rds
Production
Guidance1
Unit of
Change
Estimated
Profit 2
Estimated
EBITDA2
Coal 27 Mt US$1/tonne $21M /$1∆ $32M /$1∆
Copper 350 kt US$0.01/lb $5M /$.01∆ $8M /$.01∆
Zinc 935 kt US$0.01/lb $8M /$.01∆ $12M /$.01∆
$C/$US C$0.01 $32M /$.01∆ $52M /$.01∆
2015 Leverage to Strong Commodities
1. Mid-point of 2015 guidance ranges. Zinc includes 650,000 tonnes of zinc in concentrate and 285,000 tonnes of refined zinc.
2. Based on $1.20 USD/CAD. The effect on our profit attributable to shareholders of commodity price and exchange rate
movements will vary from quarter to quarter depending on sales volumes.
7
Agenda
Teck Overview
Commodity Market Observations
Teck Update
8
Source: NBS & CEIC
* Assuming 7.1% real GDP growth and 6.16 RMB/USD exchange rate.
Lower GDP growth rate on a higher base
= strong absolute growth
In absolute terms, China’s GDP growth is
approximately double that of 10 years ago
China’s Growth: Less is More!
9
Incremental GDP in 2015 is
expected to be similar to
last year, in absolute terms
• 2014: RMB 2.95 trillion
(~US$480 billion)
• 2015*: RMB 3 trillion
(~US$493 billion)
-1%
1%
3%
5%
7%
9%
11%
13%
15%
-
500
1,000
1,500
2,000
2,500
3,000
3,500
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015f
GDP Increment at 2005 Constant Prices in RMB
Increment of GDP, Rmb bn (lhs) GDP real growth (rhs)
RMB(Billions)
100
110
120
130
140
150
160
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
$/tonne
Stronger US dollar has increased coal prices in C$ terms
Sources: Argus, Bank of Canada
• ~30 Mt cutbacks announced, slowly
being implemented
• Require additional cutbacks to
achieve market balance
• US coal production high end of cost
curve and no currency benefit
• Continued closure announcements
promising for last half of 2015
Met Coal Market Rebalancing;
Higher Prices in C$ Terms
Coal Prices By Currency
Argus FOB Australia
AUS$
CDN$
US$
10
0
100
200
300
400
500
600
700
800
900
ThousandTonnes0
100
200
300
400
500
600
700
800
900
Apr-12
Jun-12
Aug-12
Oct-12
Dec-12
Feb-13
Apr-13
Jun-13
Aug-13
Oct-13
Dec-13
Feb-14
Apr-14
Jun-14
Aug-14
Oct-14
Dec-14
ThousandTonnes
Source: Wood Mackenzie
Copper Surplus Forecast Declining
Wood Mackenzie Forecast
Refined Copper Surplus 2015
Wood Mackenzie Forecast
Refined Copper Surplus 2014
Current surplus forecasts for 2014 & 2015 represent <2% of global demand
11
500
600
700
800
900
1,000
1,100
1,200
0¢
20¢
40¢
60¢
80¢
100¢
120¢
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Stocks Price
0
200
400
600
800
1,000
1,200
1,400
0¢
50¢
100¢
150¢
200¢
250¢
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Stocks Price
US¢/lb
thousandtonnes
plotted to
Feb 16, 2015
US¢/lb
thousandtonnes
• LME stocks down ~600 kt over 24 months
• Large inventory position still to work down
• Large, sudden increases indicate there are also significant off-market inventories
• Inventories approaching same inflection point level as in 2006
LME Zinc Stocks – Since Dec 2012
plotted to
Feb 16, 2015
LME Zinc Stocks - 11 Years
Zinc Inventories Declining
Source: LME12
Source: Baker Hughes
Falling oil rig count will eventually lead to lower oil production
North American Weekly Oil Rig Count
Declining Drilling Activity
Will Impact Oil Production
13
• Surge in supply last ~5
years primarily due to
US shale oil
• Shale oil field decline
rates ~25% to 50%,
compared to global
average of 8%
• Production correction
likely to occur relatively
rapidly
1,000
1,500
2,000
3-Jan-14
24-Jan-14
14-Feb-14
7-Mar-14
28-Mar-14
17-Apr-14
9-May-14
30-May-14
20-Jun-14
11-Jul-14
1-Aug-14
22-Aug-14
12-Sep-14
3-Oct-14
24-Oct-14
14-Nov-14
5-Dec-14
26-Dec-14
16-Jan-15
6-Feb-15
#OilRigs
Down
563 rigs
or 35%
in twelve
weeks
Agenda
Teck Overview
Commodity Market Observations
Teck Update
14
Controlling the Controllables
• Solid performance – met or exceeded guidance
- Record coal production
- Record throughput at Antamina
- Record zinc production at Red Dog
• Significantly reduced controllable operating costs
and planned capex
• Maintained a strong balance sheet
15
57 51
19
18
0
10
20
30
40
50
60
70
80
2012 2015 Guidance (Mid)
Operating Capitalized Stripping
C$/t
0.00
0.50
1.00
1.50
2.00
2.50
2012 2015 Guidance (Mid)
US$/lb
Copper Cash Costs1
Delivering Results in Cost Management
1. Before by-product credits.
2. Including inventory write-downs.
2.08
1.80
76
69
Steelmaking Coal All-In Site Costs
• Copper cash costs before by-product credits
down ~14% from peak in 2012
• By-product credits currently reduce costs by
~US$0.30.lb
• Coal total site costs including capitalized
stripping down ~9% since 2012
• Costs are down further on a US dollar basis
• Sustaining capital expenditures are also lower
Achieved significant unit cost reductions,
and expect further reductions in 2015
2
~$1.50
net of
by-
product
credits
16
Fort Hills’ Economics Robust1
Source: Teck Resources Limited
1. Estimates are based on exchange rates as shown, expected bitumen netbacks, and operating costs of C$25 per barrel, including
sustaining capital of C$3-5 per barrel.
2. Per barrel of bitumen.
3. Go-forward capital is the go-forward amount from the date of the Fort Hills sanction decision (October 30, 2013), denominated in
Canadian dollars and on a fully-escalated basis.
4. Pre-tax free cash flow yield during capital recovery period.
The Fort Hills project is expected to have significant
free cash flow yield across a range of WTI prices
Fort Hills Free Cash Flow Yield4
Sensitivity to WTI Price
Potential Contribution
from Fort Hills
$70 WTI &
$0.80
CAD/USD
$90 WTI &
$0.90
CAD/USD
Teck’s share of annual production
(36,000 bpd)
13 Mbpa 13 Mbpa
Estimated netback2 ~$54/bbl ~$63/bbl
Estimated operating margin2 ~$29/bbl ~$38/bbl
Alberta oil royalty – Phase 1
(prior to capital recovery) 2 ~$2/bbl ~$4/bbl
Estimated net margin2 ~$26/bbl ~$34/bbl
Annual pre-tax cash flow ~$350 M ~$444 M
Teck’s share of go-forward capex3 ~$2,940 M ~$2,940 M
Free cash flow yield4 ~12% ~15%
0%
5%
10%
15%
20%
25%
60 70 80 90 100 110 120
FreeCashFlowYield
WTI $/bbl
$0.90 CAD/USD
$0.80 CAD/USD
17
$0
$1,000
$2,000
$3,000
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
US$M
Cash position Debt Maturity
Liquidity of >C$5B, including C$2B cash and undrawn US$3B line of credit
~US$1.75 B
18
As at December 31st, 2014
1. Assumes current commodity prices and exchange rates, Teck’s 2015 guidance for production, costs and capital expenditures and
no unusual transactions or events.
Strong Balance Sheet & Liquidity
Investment Grade Rating
• Debt-to-debt-plus-equity of 31%
• US$300M of notes due to end of 2016
• Weighted average maturity ~14 years
• Weighted average coupon (interest rate) 4.8%
• Average maturity <US$600M
Targeting year-end 2015 cash balance of $1B1
Fort Hills Capex Well Supported
By Free Cash Flow & Liquidity
0
200
400
600
800
1000
1200
1400
1600
2014 Free Cash
Flow (before Fort
Hills Capex)
Weaker Canadian
dollar, relative to
the US dollar
Lower oil prices Lower commodity
prices (Cu, Zn,
Coal)
Implied Free Cash
Flow (before Fort
Hills Capex)
$Millions
$289
+$201 ($568)
$702
+$780
Effect of Disclosed Sensitivities
On Free Cash Flow2 (before Fort Hills Capex)1
$2.3B capex to fund over 3 years; with $5B liquidity and good free cash flow
1. Implied impact of disclosed EBITDA sensitivities on free cash flow, assuming spot commodity prices and exchange rate as disclosed
in the table above, in comparison to 2014 average prices and exchange rate, for illustration purposes only. Other factors will have a
material impact on 2015 EBITDA, and actual results will vary materially from those suggested by this simplified model.
2. 2014A free cash flow is cash flow from operating activities, minus investing activities (excluding $615M investment in Fort Hills), and
debt interest paid, before returns to shareholders.
3. Spot prices at February 13, 2015.
Sensitivity 2014A Current3 ∆ 2014A
to Spot
Estimated
EBITDA1
CAD/USD $1.10 $1.25 $0.15 $52M
/$0.01∆
Oil – WTI
(US$/bbl)
$93.00 $52.75 ($40.25) $5M
/$1∆
Copper
(US$/lb)
$3.11 $2.60 ($0.51) $8M
/$0.01∆
Zinc
(US$/lb)
$0.98 $0.98 $0.00 $12M
/$0.01∆
Coal
(US$/t realized)
$115 $110 $5 $32M
/$1∆
• Remaining share of Fort Hills capital
expenditure: C$2.3B over 3 years
• ~$5B liquidity available
• Expected higher coal/copper production
and lower costs may improve cash flow
19
Summary
Attractive portfolio of long-life assets & resources
Good leverage to strong zinc & copper markets
Executing well & controlling the controllables
Solid financial position
Investment grade credit rating
20
February 24, 2015
Additional Information
Diversified Portfolio of Key Commodities
North
America
20%
Europe
18%
Latin
America
3%
China
26%
Asia excl. China
33%
Source: Teck Resources Limited; 2014 revenue23
Diversified Global Customer Base
Coking coal CopperZinc LeadMoly SilverGermanium Indium
Original Guidance Actual Results
Steelmaking Coal
Coal production 26–27 Mt  26.7 Mt Record coal production
Coal site costs C$55-60 /t  C$54 /t1
Coal transportation costs C$38-42 /t  C$38 /t
Combined coal costs C$93-102 /t  C$92 /t
Combined coal costs US$84-92 /t  US$84 /t
Copper
Copper production 320–340 kt  333 kt Record thru-put at Antamina
Copper cash unit costs2
US$1.70-190 /lb  US$1.65 /lb
Zinc
Zinc in concentrate production3
555-585 kt  660 kt Record at Red Dog
Refined zinc production 280–290 kt x 277 kt Higher production 2H14
(1H14: 133 kt; 2H14 143 kt)
Capital Expenditures4
$1,905M  $1,498M Significant capex reduction
Solid Delivery Against 2014 Guidance
1. Including inventory adjustments.
2. Net of by-product credits.
3. Including co-product zinc production from our copper business unit.
4. Excluding capitalized stripping.
24
Actual 2014 2015 Guidance
Steelmaking Coal
Coal production 26.7 Mt 26.5-27.5 Mt
Coal site costs C$54 /t1
C$49-53 /t
Coal transportation costs C$38 /t C$37-40 /t
Combined coal costs C$92 /t C$86-93 /t
Combined coal costs US$84 ~US$69-74 /t2
Copper
Copper production 333 kt 340-360 kt
Copper cash unit costs3
US$1.65 /lb US$1.45-1.55 /lb
Zinc
Zinc in concentrate production4
660 kt 635-665 kt
Refined zinc production 277 kt 280–290 kt
2015 Production & Site Cost Guidance
1. Including inventory adjustments.
2. At $1.25 CAD/USD.
3. Net of by-product credits.
4. Including co-product zinc production from our copper business unit.
25
($M) Sustaining
Major
Enhancement
New Mine
Development Sub-total
Capitalized
Stripping Total
Coal $100 $45 $ - $145 $490 $635
Copper 200 15 105 320 225 545
Zinc 180 - - 180 60 240
Energy - - 910 910 - 910
Corporate 10 - - 10 - 10
TOTAL $490 $60 $1,015 $1,565 $775 $2,340
Total capex of ~$1.6B, plus capitalized stripping
2014A $511 $165 $822 $1,498 $715 $2,213
2015 Capital Expenditures Guidance
26
Low oil price benefits Teck overall in the near-term
• Reduces operating costs by hundreds of millions of dollars annually1
• Accompanied weaker Canadian dollar improves EBITDA by hundreds
of millions of dollars annually2
Reduces budget and schedule pressure on the Fort Hills project
• Reduces capex and drilling activity by the sector, which eases
pressure on skilled labour and contractors
• Reduces competition for pipeline capacity
Forces cutbacks in oil production and exploration
• Starts the correction to higher long-term oil prices, due to the sector’s
decline rates and cuts to capex /drilling activity
Provides positive macro-economic stimulus
• Drives additional metal consumption, benefiting Teck’s base metals
businesses
Significant Benefits from Low Oil Prices
1. Each US$1/bbl change in oil price impacts our operating costs by ~$5M on an annual basis, based on $1.20 CAD/USD.
2. Each $0.01 change in the CAD/USD exchange rate impacts our EBITDA by ~$52M on an annual basis.
27
Operation Expiry Dates
Line Creek In Negotiations - May 31, 2014
Coal Mountain In Negotiations - December 31, 2014
Antamina July 23, 2015
Carmen de Andacollo
September 30, 2015
December 31, 2015
Elkview October 31, 2015
Quebrada Blanca
October 30, 2015
November 30, 2015
January 31, 2016
Fording River April 30, 2016
Highland Valley Copper September 30, 2016
Trail May 31, 2017
Cardinal River June 30, 2017
Quintette April 30, 2018
Collective Agreements
28
Note: Based on public filings
Teck Resources Limited
March 3, 2014
Shares Held Percent Voting Rights
Class A Shareholdings
Temagami Mining Company Limited 4,300,000 45.97% 28.62%
SMM Resources Inc (Sumitomo) 1,469,000 15.71% 9.78%
Caisse de depot et placement du Quebec 1,587,600 16.97% 10.57%
Public 1,996,870 21.35% 13.29%
9,353,470 100.00% 62.26%
Class B Shares
Temagami Mining Company Limited 860,000 0.15% 0.06%
SMM Resources Inc (Sumitomo) 295,800 0.05% 0.02%
Caisse de depot et placement du Quebec 7,715,997 1.36% 0.51%
China Investment Corporation 101,304,474 17.87% 6.74%
Public 456,745,086 80.57% 30.40%
566,921,357 100.00% 37.74%
Total Shares
Temagami Mining Company Limited 5,160,000 0.90% 28.68%
SMM Resources Inc (Sumitomo) 1,764,800 0.31% 9.80%
Caisse de depot et placement du Quebec 9,303,597 1.61% 11.08%
China Investment Corporation 101,304,474 17.58% 6.74%
Public 458,741,956 79.60% 43.70%
576,274,827 100.00% 100.00%
Share Structure & Principal Shareholders
29
• Common corporate structure in
Canada
• May not confirm to typical
governance expectations, but
can still have strong
governance practices
• Family-controlled issuers can
benefit from a longer-term
outlook and unique governance
structure
Source: The Impact of Family Control on the Share Price Performance of Large Canadian Publicly-Listed Firms (1998-2012)
by Clarkson Centre for Board Effectiveness (Rotman School of Management, University of Toronto)
Canadian family-controlled issuers outperformed peers
over the past 15 years, greatly benefitting minority shareholders
Cumulative Average Growth Rate
Family-Controlled Public Issuers
30
Teck has been a strong
investment in recent years
Long-term investments in Teck have
outperformed non-family and materials firms
Family-Controlled Public Issuers;
Teck Share Price Performance
Source: The Impact of Family Control on the Share Price Performance of Large Canadian Publicly-Listed Firms (1998-2012)
by Clarkson Centre for Board Effectiveness (Rotman School of Management, University of Toronto)
31
Annualized Dividend Payout
• Aim to pay a sustainable dividend that
grows commensurate with growth in
earnings and cash flow
- Since January 2013, semi-annual
payment of $0.45; annualized $0.90
• Normal Course Issuer Bid in place for
up to 20M shares
32
Returned Cash To Shareholders
$-
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
$0.80
$0.90
Economic Outlook
Source: Dragonomics
With the right policies, China still has the potential to boost incomes
China’s GDP is ~20% of the
US’s on a per capital basis
Substantial Economic Growth
Requires Decades to Achieve
Per Capita GDP Relative to the US at PPP
China
Japan
Korea
0
10
20
30
40
50
60
70
80
90
100
1953 1958 1963 1968 1973 1978 1983 1988 1993 1998 2003 2008
%
34
Country
20-Year Period
Beginning When Country’s
Per Capital GDP Was 21% of US’s
Average Annual GDP
Growth Rate
Over a 20-Year Period
Japan 1951-1971 9.2
Singapore 1967-1987 8.6
Taiwan 1975-1995 8.3
Korea 1977-1997 7.6
China* 2008-2028 8.0
Other Asian economies show that China could
continue to grow significantly for some time
Substantial Potential For
Continuous Robust Growth in China
35
Room for Further Development in China
0
10
20
30
40
50
60
70
80
90
100
1953
1956
1959
1962
1965
1968
1971
1974
1977
1980
1983
1986
1989
1992
1995
1998
2001
2004
2007
2010
China Japan Korea
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
Eastern Central Western
RMB
China Annual Per Capita GDP by RegionPer Capita GDP, Relative to the US
Source: Penn World Table, NBS36
Room for Further Development in China 2
0%
10%
20%
30%
40%
50%
60%
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
With urban Hukou Without urban Hukou
%ofTotalPopulation
0
10
20
30
40
50
60
70
80
90
100
1950
1955
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
2015
2020
China Japan Europe US
%
China Annual Urbanization RateUrbanization Rate Comparison
Source: United Nations, NBS37
Room for Further Development in China 3
0
5
10
15
20
25
30
35
40
0
1
2
3
4
5
6
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Increase in track length, thousand kilometers, lhs
Freight traffic density, rhs
Thousandkilometers
%
$0
$20
$40
$60
$80
$100
$120
$140
2010 2010 1930 2009
China China at PPP US
US$(Thousands)
$0
$10
$20
$30
$40
$50
$60
$70
2010 at PPP 1971 at PPP 1990 at PPP
China Japan
US$(Thousands)
Source: GK Dragonomics, NBS
Chinese Railways Remain Crowded
Capital Stock Per Capita
(US$ at constant 2005 prices)
Capital Stock Per Capita
(US$ at constant 1990 prices)
38
• Despite China’s rapid urbanization over
the past decade (to 54.77% in 2014), it is
still lower than the Western world who are
all ~80%
- China’s current urbanization rate is
comparable to Japan’s in the 1950s
- China was previously a drag on Asia’s
urbanization statistics. Today, it is the
driving force, with room for further
urbanization
• India’s urbanization was 32% in 2013, up
from 26% in 1990
- It is expected to grow to 33% by 2015,
35% by 2020 and 37% by 2025
Global Urbanization
China and India Leading the Way
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
1950
1955
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
2015
2020
2025
2030
2035
2040
2045
2050
China India Asia
Europe S.America N.America
Urbanization Rates
Source: United Nations, World Bank39
Steelmaking Coal
Business Unit & Markets
• China’s hot metal production continues
to grow
- 2004: 258 Mt
- 2014: 712 Mt, representing 2.5x the 2004 level and
~60% of global output
- 2019E (CRU International) ~840 Mt
• Excluding China, global hot metal
production remains significant at ~40%
Hot Metal Production Growth
Source: WSA, based on data reported by countries annually; NBS; CRU International
Global Hot Metal Production
A Look Back and Forward
350
550
750
950
1,150
1,350
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
China
Americas
CIS
JKT
India
Europe
Other
2019f
Growth from 2014 to 2019 (CRU Nov 2014) Global ex. China China
Mt
41
Traditional Steel Markets
• China slower growth
• Japan stable
• South Korea good growth
Outside of Asia
• Europe still weak
• US good growth
Monthly Steel Production
Source: WSA, based on data reported by countries monthly; NBS
Mt
Steel Production Growing Globally
Update to December2014
45
55
65
75
China
0
2
4
6
8
10
12
14
16
Japan
USA
South Korea
EU
42
Xinjiang
Tibet
Qinghai
Sichuan
Inner Mongolia
Henan
Shanxi
Guangxi
Guandong
Fujian
Zhejiang
Jiangsu
Shandong
Laioning
Jilin
Heilongjiang
Guizhou
Hunan
Hubei
Jiangxi
Anhui
Shaanxi
Gansu
Ningxia
Qinghai
Sichuan
Yunnan
Beijing
Hebei
WISCO Fangchenggang Project
• Major infrastructure in place. WISCO Fangchenggang Steel
Company established in Sep to wholly manage the project.
• Cold roll line to be commissioned in H1 2015. Other lines are
scheduled to start successively within the year.
• Blast furnaces (BFs) in the originally approved plan. Billet
rolling line only at this time. No timeline for BFs currently.
• Targeting 5 Mt steel products in 2016 and 10 Mt in 2017.
Baosteel Zhanjiang Project
• The environment evaluation was approved in Dec 2014
(~8.8Mt crude steel, 8.2Mt pig iron and 3.2Mt coke).
• BF #1 to be commissioned in 2015.
Ningde Steel Base
• Proposed but no progress yet.
Relocation to China’s coastline facilitates access to seaborne raw materials
Sources: NBS, CISA
Ansteel Baiyunquan Project
• Phase 1 (~ 5.4 Mt pig iron, 5.2 Mt crude
steel and 5 Mt steel products) in 2013.
• Phase 2 (5.4 Mt BF) planned but no
progress yet.
Capital Steel Caofeidian Project
• Planned 20 Mtpa steel capacity.
• Phase 1 (10 Mt) completed in 2010.
• Phase 2 (10 Mt) under preparation but no
progress yet.
Shandong Steel Rizhao Project
• Planned 21.35 Mt crude steel.
• Phase 1 (8.5 Mt) approved in Feb 2013
• Construction started in Sep 2014 and
scheduled to commission by the end of
2016.
Chinese Steel Industry Moving to the Coast
43
40%
45%
50%
55%
60%
65%
70%
0
100
200
300
400
500
600
700
800
900
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Mt
Total Coastal Provinces Coastal %
China’s domestic coking coal production
is not expected to grow significantly
China’s Domestic Coking Coal
Production 2013-2014
China’s Domestic Coking Coal Production
44 Source: Sxcoal
Annual production flat at ~530 Mt
Shanxi coal production to be
limited in future
• Environment pressures
• No new projects to be permitted
before 2020
• Permitted production authorization
to be enforced
• Production expected to not exceed
1,000 Mt vs 977 Mt (raw thermal
and met) in 2014
-5%
0%
5%
10%
15%
20%
0
10
20
30
40
50
60
Jan-13
Mar-13
May-13
Jul-13
Sep-13
Nov-13
Jan-14
Mar-14
May-14
Jul-14
Sep-14
Nov-14
Mt
Chinese coking coal production Mt, lhs YTD growth %, rhs
Further Cuts Needed in the Coal Market
Source: Wood Mackenzie, Platts, TEX Report, AME, company & news reports and Teck Resources estimates
1. On an operating basis, excluding sustaining capital costs
Seaborne Metallurgical Coal Margin
Curve at Spot Price of US$115/t
Brackets indicate
producers closed or still
supplying but due to close
or deplete inventory
Teck
• ~30 Mt of production cuts announced
- Slightly less than half
implemented by year end
• Margin curve shows around one third
of seaborne met coal is operating at
negative margin1
- Implies further cuts are warranted
• Market balance dependent on
additional production cuts
45
60.0
15.4
13.2
47.7
14.8
6.6
0
10
20
30
40
50
60
70
Seaborne Landborne Stock changeMt
2013 2014
Source: GTIS, Wood Mackenzie, Mysteel
1. Wood Mackenzie forecasts total imports of 96 Mt by 2019
China Rolling 12-Month Coking Coal Imports
46
Growing Steelmaking Coal Imports to China
2019f
2019F1: 96 Mt
China's Coking Coal Imports
and Stock Change at Ports
Imports down by <10% when combined with inventory drawdowns
0
10
20
30
40
50
60
70
80
90
100
Feb-09
Jul-09
Dec-09
May-10
Oct-10
Mar-11
Aug-11
Jan-12
Jun-12
Nov-12
Apr-13
Sep-13
Feb-14
Jul-14
Dec-14
Mt
Seaborne Mongolia
North
America
~5%
Europe
~15%
Latin
America
~5%
China
~25%
High quality, consistency, reliability, long-term supply
Asia excl. China
~50%
Source: Teck Resources Limited; 201447
We Are a Leading Steelmaking Coal Supplier
To Steel Producers Worldwide
0
50
100
150
200
250
300
350
Q12010
Q22010
Q32010
Q42010
Q12011
Q22011
Q32011
Q42011
Q12012
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
Q32014
Q42014
US$/tonne
Teck Realized Price (US$) Benchmark Price
Average realized price discount to
benchmark is a function of:
1. Product mix: over 90% is hard
coking coal
2. Carry over sales volumes
3. Direction of quarterly benchmark
prices and spot prices
- Q1 2015 benchmark for
premium products is US$117/t
Hard Coking Coal Benchmark Price
Premium Steelmaking Coal Product
Average realized price discount of ~8%
96%
88%
93%
94%
92%
48
• Around the world, and
especially in China, blast
furnaces are getting larger
and increasing PCI rates
• Coke requirements for stable
blast furnace operation are
becoming increasingly higher
• Teck coals with high hot and
cold strength are ideally suited
to ensure stable blast furnace
operation
• Produce some of the highest
hot strengths in the world50 60 70 80 90 100
South Africa
Japan (Sorachl)
Japan
(Yubarl)
U.S.A.
Canada Other
Teck HCC
Australia
Japan
South Africa
Australia
(hard coking)
and Canada
U.S.A.
Australia
(soft coking)
10
20
30
40
50
60
70
80
Drum Strength Dl 30 (%)
CSR
Teck HCC
49
Coking Coal Strength
High Quality Hard Coking Coal
0
20
40
60
80
100
120
2014 2015E
US$/t
Site Costs Transportation Inventory Write-Down
Capitalized Stripping Sustaining Capital
105
89
Teck costs lower than most major competitors
Total Cash Cost 2015 vs. 2014
Steelmaking Coal Costs
50
(US$/t)
2014
($1.10
CAD/USD)
2015E*
($1.25
CAD/USD)
Site1 $49 $41
Transportation 35 $31
IFRS Total $84 $72
Capitalized Stripping $15 $15
Full Cash Cost $99 $86
Sustaining Capex $6 $3
Total Cash Cost $105 $89
* Based on the mid-point of 2015 guidance.
1. Includes inventory write-down.
IFRS
Costs
0
1
2
3
4
5
6
7
8
Q2/09
Q3/09
Q4/09
Q1/10
Q2/10
Q3/10
Q4/10
Q1/11
Q2/11
Q3/11
Q4/11
Q1/12
Q2/12
Q3/12
Q4/12
Q1/13
Q2/13
Q3/13
Q4/13
Q1/14
Q2/14
Q3/14
MillionTonnes
Capacity Grown to 28 Mt
30
40
50
60
70
80
Q2/09
Q3/09
Q4/09
Q1/10
Q2/10
Q3/10
Q4/10
Q1/11
Q2/11
Q3/11
Q4/11
Q1/12
Q2/12
Q3/12
Q4/12
Q1/13
Q2/13
Q3/13
Q4/13
Q1/14
Q2/14
MillionsofBCM
• Capacity grew from 24 Mt to 28 Mt clean production
• Not currently operating at full capacity due to market conditions
• Quintette on care and maintenance; available when market conditions improve
Material Moved Quarterly Coal Production
51
Potential for Further Capacity Growth
Potential Production Increase Scenarios
Given Teck’s large resource base,
there are a number of options
available or under study to allow
production growth as the market
requires:
• Quintette restart (up to 4 Mtpa)
• Coal Mountain Phase 2, with options
from 2 to 4 Mt to extend operations
• Brownfields expansions
- Elkview expansion
- Fording River expansion
- Greenhills expansion
• Capital efficiency and operating cost
improvements will be key drivers
-
10
20
30
40
50
Production(Mt)
FRO GHO CMO EVO LCO
CRO QCO 28 Mt 40 Mt
Time Conceptual
52
>75 Mt of West Coast Port Capacity Planned
Teck Portion at 40 Mt
• Exclusive to Teck
• Recently expanded to 12.5 Mt
• Planned growth to 18.5 Mt
Westshore Terminals
Neptune Coal Terminal
Ridley Terminals
West Coast Port Capacity
• Current capacity: 12 Mt
• Expandable to 25 Mt
• Teck contracted at 3 Mt
• Teck is largest customer at 19 Mt
• Large stockpile area
• Recently expanded to 33 Mt
• Planned growth to 36 Mt
MillionTonnes(Nominal)
Teck’s share of capacity exceeds current
production plans, including Quintette
12.5
18
33
6
7
3
0
5
10
15
20
25
30
35
40
Neptune Coal
Terminal
Ridley
Terminals
Westshore
Terminals
Current Capacity Planned Growth
53
0%
20%
40%
60%
80%
100%
CO2 NOx Particulate SOx
Diesel Natural Gas
LNG for Haul Trucks Project
• Pilot project underway to evaluate running Teck haul trucks on a blend
of diesel and LNG
- Expected to be running in 2015
• Has the potential to reduce our haul truck fleet fuel bill by $27M
annually and lower our CO2 emissions by 35,000 tonnes per year
Comparison of Fuel Cost
$-
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
LNG / Diesel Liter Diesel / Liter
Gas Cost Liquifaction Carbon Tax Delivery Diesel
PriceperLiter
Comparison of Emissions
%ofDieselEmissions
54
Copper
Business Unit & Markets
0
200
400
600
800
1000
0¢
100¢
200¢
300¢
400¢
500¢
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
LME Stocks Price
US¢/lb
thousandtonnes
plotted to
February 6, 2015
Source: LME
Copper Prices & Stocks
LME Daily Copper Prices & Stocks
56
Copper Concentrate TC/RC
0¢
10¢
20¢
30¢
40¢
50¢
60¢
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Spot Realised TC/RC
TC/RC–NominalUS¢/lb
Source: CRU
plotted to
January 2015
Copper Concentrate TC/RC
57
Copper Production Disruptions Continue
-384
-171
-950
-859
-776
-851
-945
-524
-941 -947
-831
-930
-297
-1,000
-900
-800
-700
-600
-500
-400
-300
-200
-100
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014F 2015F
Thousandtonnescontainedcopper
Source: ICSG, Wood Mackenzie Teck, company reports
Copper Disruptions
58
China Expected to Add Almost As Much to Global
Demand in the Next 15 Years as the Past 25 Years
-
200
400
600
800
1,000
1,200
1,400
1990 1994 1998 2002 2006 2010 2014 2018 2022 2026 2030
0%
5%
10%
15%
20%
25%
30%
1990 1994 1998 2002 2006 2010 2014 2018 2022 2026 2030
Annual Avg.
13%
Annual Avg.
5%
Annual Avg.
330mt/yr growth
Annual Avg.
505mt/yr growth
Thousandtonnes
Source: CRU, Wood Mac, Teck
Annual Growth Rate of Chinese Copper
Consumption to Slow Dramatically…
… But Will Add Significantly
in Additional Tonnage Terms
59
0
100
200
300
400
500
600
700
800
900
1,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Cathode Concs Scrap Blister/Semis
000’stonnes(content)
China Now Accounts for >49% of Global Copper Consumption
Source: Antaike
China’s Copper Imports Remain Strong
60
0
500
1,000
1,500
2,000
0
50
100
150
200
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0
100
200
300
400
500
600
700
0
10
20
30
40
50
60
70
80
90
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0
500
1,000
1,500
2,000
2,500
3,000
3,500
0
50
100
150
200
250
300
350
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0
500
1,000
1,500
2,000
2,500
3,000
3,500
0
50
100
150
200
250
300
350
400
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
China Copper Imports Continue to Grow
Total contained copper imports up 5.6% YTD
Copper Concentrates Net Imports Refined Copper Net Imports
Copper Anodes Net Imports Scrap Copper Net Imports
20142013
61
Zinc
Business Unit & Markets
Zinc Prices & Stocks
0
200
400
600
800
1,000
1,200
1,400
0¢
50¢
100¢
150¢
200¢
250¢
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Stocks Price
Source: LME
US¢/lb
thousandtonnes
plotted to
Feb 6, 2015
LME Daily Zinc Prices & Stocks
63
Zinc Treatment Charges
$0
$100
$200
$300
$400
$500
$600
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Spot Annual Realised
US$/dmt
Source: Teck, CRU
plotted to
January 2015
Zinc Spot TCs vs. Realized Annual TCs
64
Significant Zinc Mine Reductions;
Large Short-Term Losses, More Long Term
-600
-500
-400
-300
-200
-100
0
Century
RampuraAgucha
Lisheen
Perseverance
RedDog
Pomorzany
Brunswick
Zyryanovsk
MaeSod
Paragsha
Angas
-600
-500
-400
-300
-200
-100
0
Century
RampuraAgucha
Lisheen
Skorpion
Rosebery
RedDog
Perseverance
Pomorzany-Olkusz
Brunswick
Cayeli
Jaguar
Zyryanovsk
Akhzal(Aktogask)
KiddCreek
Bracemac-McLeod
Source: ICSG, Wood Mackenzie Teck, Company Reports
2013-2017 2013-2020
65
Future Potential for Zinc Consumption
6%
19%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
China USA
• In 2014 China produced over 822
million tonnes of crude steel and 52
million tonnes of galvanized steel
sheet
• In 2014 the US produced 88 million
tonnes of crude steel and over 16
million tonnes of galvanized steel
sheet
• If China were to galvanize crude steel
at half the rate of the US and at the
same rate of zinc per tonne of
galvanized sheet as the US, then Zinc
consumption in China could add a
further 2.1 million tonnes or 22% of
current global consumption
Source: World Steel, CRU66
% Galvanized Steel of Crude Production
Energy
Business Unit & Markets
$-
$20
$40
$60
$80
$100
$120
$-
$20
$40
$60
$80
$100
$120
$140
$160
Jan-07 May-08 Sep-09 Feb-11 Jun-12 Nov-13 Mar-15
WTI(US$/bbl)
CAD$cents/L
WTI (US/bbl) (rhs) Alberta ULSD Rack Rate (lhs)
Diesel & Crude Oil Prices
Spread has widened; Delay in changes in crude oil prices
flowing through to diesel prices
Diesel Prices vs. WTI Prices 2007-2014
Source: Alberta Transportation, OPIS.
Average Diesel Premiums:
2007-2014: C$0.22/litre
2011-2014: C$0.27/litre
68
Source: Baker Hughes
Falling oil rig count will eventually lead to lower oil production
North American Weekly Oil Rig Count
Declining Drilling Activity
Will Impact Production
69
• Surge in supply last ~5
years primarily due to
US shale oil
• Shale oil field decline
rates ~25% to 50%,
compared to global
average of 8%
• Production correction
likely to occur relatively
rapidly1,000
1,500
2,000
1/3/14
1/17/14
1/31/14
2/14/14
2/28/14
3/14/14
3/28/14
4/11/14
4/25/14
5/9/14
5/23/14
6/6/14
6/20/14
7/3/14
7/18/14
8/1/14
8/15/14
8/29/14
9/12/14
9/26/14
10/10/14
10/24/14
11/7/14
11/21/14
12/5/14
12/19/14
1/2/15
1/16/15
1/30115
#OilRigs
• Significant value created
over long term
• 60% of PV of cash flows
beyond year 5
• IRR of 50-year project is
only ~1% higher than a 20-
year project
• Options for debottlenecking
and expansion
50-year assets provide for superior returns
operating through many price cycles
The Real Value of Long-Life Assets
Fort Hills Project Indicative Rolling NPV1
1. Indicative NPV assumes US$95 WTI, $1.05 Canadian/US dollar exchange rate, and costs as disclosed with the Fort Hills sanction
decision (October 30, 2013).
70
Building An Energy Business
Strategic diversification
Large truck & shovel mining
projects
World-class resources
Long-life assets
Mining-friendly jurisdiction
Competitive margins
Minimizing execution risk
Tax effective








71
Mined bitumen is in Teck’s ‘sweet spot’
1. GLJ Petroleum Consultants, December 2013
2. There is no certainty that it will be commercially viable to produce any portion of the contingent bitumen resources. For more information
about contingent bitumen resources, see Teck’s annual information form dated March 3, 2014 available at www.sedar.com.
3. Sproule, December 2013
World-Class Energy Reserves & Resources
No Exploration Risk – No Large Finding Costs
Bitumen Reserves
Teck’s Share
(million bbl) Proved Probable Proved Plus Probable
Fort Hills
1
414 194 608
Contingent Bitumen Resources2
Project Teck’s Share
(million bbl) Low Best High Low Best High
Fort Hills
1
0 128 752 0 26 150
Frontier
3
2,360 3,047 3,465 2,360 3,047 3,465
Lease 421
Total 2,360 3,175 4,217 2,360 3,073 3,615
Still to be declared
World Class Energy Reserves & Resources
72
Fort Hills Is One of the Best
Undeveloped Oil Sands Mining Leases
Ore grade is a function of the bitumen quantity in the deposit
TV:BIP is a ratio of the total volume of bitumen in place to the total
volume of material required to be moved (like a strip ratio)
Strip Ratio vs. Ore Grade
Source: Teck
9.5
10
10.5
11
11.5
12
8910111213
OreGrade(wt%bitumen)
TV:BIP
Fort Hills
Frontier
• >3 billion bbls of proven plus probable
reserves of bitumen
- Production 180,000 barrels per day
(bpd) of bitumen
- Teck’s share is significant at 36,000
bpd; equivalent to 13 million barrels
per year (Mbpy)
• World-class resource
- Average ore grade of 11.4%
- Strip ratio of 1.5:1 and TV:BIP of 10.5
• Consistent production year-over-year
through multiple decades
- Scheduled to produce first oil as early
as Q4 2017
- Expect 90% of planned production
capacity within 12 months
73
Fort Hills Is Part Of A New Breed
Of Mineable Oil Sands Projects
Mine & Extraction
Diluted Bitumen
(Doesn’t meet commercial pipeline specs)
Heavy Crude Conversion
Refinery With Coker
Simple RefineryOn-Site Upgrader
($10-15B)
New mining projects produce clean, high-quality bitumen and receive a
heavy oil price (discounted), but don’t have to invest in an upgrader
‘PFT’ Diluted Bitumen
(Meets commercial pipeline specs)
Export Pipeline
Synthetic Oil
Legacy Oil Sands Mining Projects (~30 Years Ago)
Oil Sands Mining Projects Today
Naphtha froth
treatment process
Paraffinic froth treatment
‘PFT’ process
Mine & Extraction
74
Suncor has demonstrated strong project
execution with Firebag 4, Extraction Plant 300,
TROTM, and North Steepbank Extension
completed at or below initial projected costs
Suncor is the largest operator in the oil sands
and has been developing projects in close
proximity to Fort Hills for 50 years
▪ Leveraging Suncor’s project execution experience
and deep contractor relationships
▪ Experience in managing large workforces of
comparable size in this region
▪ Deploying existing, proven technology
Project Bitumen Capacity1
Millennium/North Steepbank Mine 310-330 kb/d
Firebag In Situ Stages 1-4 180 kb/d
MacKay River In Situ 30 kb/d
Fort Hills 180 kb/d
75
Source: Suncor
1. Capacity targets provided above do not necessarily equate to daily production.
Fort Hills’ Project Operator
Has A Proven Track Record
Minimizing Execution Risk
In The Fort Hills Project
• Cost-driven schedule
- “Cheaper rather than sooner”
• Disciplined engineering
approach
• “Shovel Ready”
• Global sourcing of engineering
and module fabrication
• Balanced manpower profileSuncor has completed 4
projects of ~$20 billion over last
5 years, all at or under budget
Benefiting from Suncor’s operational
and project development experience
76
1. All costs and capital are based on Suncor’s estimates.
2. Go-forward capital is the go-forward amount from the date of the Fort Hills sanction decision (October 30, 2013),
denominated in Canadian dollars and on a fully-escalated basis.
Competitive Costs1 for Fort Hills
Project Capital: ~C$13.5 billion
Teck Capital:
• Fully-escalated capital investment:
~C$2.94B over four years (2014-2017),
including remaining earn-in of C$240M
• Estimated spending in 2014: C$800M,
incurred costs, based on Suncor’s
planned project spending of C$3.16B
Operating & Sustaining Costs:
• C$25 to $28/bbl total
• Sustaining C$3-5/bbl (included in above)
• Excludes diluent purchase
To be financed by a combination of cash balance,
free cash flow and $3B unused line of credit
Fully Escalated
Go-Forward Capital2
$0
$20
$40
$60
$80
$100
$120
$140
Project 1 Project 2 Fort Hills
CostsinC$ThousandsperBarrel/day
Capital Cost Per Flowing Barrel
Full project cost
including spent to date:
C$84
77
Source: Alberta Energy bitumen valuation methodology (http://www.energy.alberta.ca/OilSands/1542.asp)
* Based on example exchange rate of $1.25 CAD/USD
Bitumen Netback Calculation Example*
Teck seeks to secure dedicated transportation capacity for
Fort Hills volumes to key markets to minimize WCS discount
Bitumen Netback Calculation Model
US$75.00
C$56.50
C$75.00
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
~75%
Bitumen
~25%
Diluent
Typical Diluted Bitumen
(Dilbit) Blend
Western Canadian Select
(WCS) at Hardisty
WTI
Bitumen
Netback
US$60 C$42.75
US$75 C$56.50
US$90 C$70.25
78
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15
Differential WTI-WCS
US$/barrel$0
$20
$40
$60
$80
$100
$120
Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-1
WCS Hardisty WTI Cushing
US$/barrel
Heavy Oil Price Differential
West Texas Intermediate (WTI) &
Western Canadian Select (WCS) Prices
WTI-WCS Differential
Source: Bloomberg, Teck Resources Limited
Fort Hills project economics benefit from
recent narrowing of the WTI-WCS differential
Plotted to
2/12/2014
Plotted to
2/12/2014
Long-term WTI-WCS
differential
79
Netback2
$56.50/bbl
Cash Margin
$31.50
Cash Costs
$25.00
LME Price
US$2.50/lb
Cash Margin
US$1.25
Cash Costs
US$1.25
Competitive Bitumen Margins1
Typical Bitumen Producer
56%
Margin
Low Quartile Cost Copper Mine
50%
Margin
Fort Hills’ cash margins are expected to be
comparable to the lowest cost mining operations
1. Excludes royalties.
2. Assuming US$75 WTI, $15 differential WTI to WCS and $0.80 USD/CAD
80
Wood Buffalo
Pipeline
Extension
Norlite
Diluent Pipeline
East Tank Farm
Blending w/Condensate
Cheecham
Terminal
Hardisty
Terminal
Wood Buffalo
Pipeline
Athabasca
Pipeline
Waupisoo
Pipeline
Edmonton
Terminal
Fort Hills
Mine Terminal
Northern Courier
Hot Bitumen Pipeline
Pipeline Legend
Existing New
Logistics Solutions Planned
Between Fort Hills, Edmonton and Hardisty
Pipeline/Terminal Operator
Nominal
Capacity
(kbpd)
Teck
Capacity
(kbpd)
Northern Courier
Hot Bitumen
TransCanada 202 40.4
East Tank
Farm- Blending
Suncor 292 58.4
Wood Buffalo
Blend Pipeline
Enbridge 490 58.4
Wood Buffalo
Blend Pipeline Extension
Enbridge 490 58.4
Norlite Diluent Pipeline Enbridge 130 18
Hardisty Blend Tankage TBD
Teck
Options
Export Pipe
Rail
Local Market
81
Common Carriage Pipeline
• No take or pay commitments
• When pipe capacity is constrained, access to capacity
may be apportioned and netback prices are discounted
Markets
• US Mid-
Continent
• US Gulf
Coast
• Eastern
Canada / US
East Coast
• West Coast
Exports
• East Coast
Exports
Western
Canada
Contract Carriage Pipeline
• Typically requires 10-25 year take or pay commitments
• Firm, secure access to capacity, and netbacks are linked
to international benchmark related prices
Rail
• More expensive (may require additional capital)
• Has the flexibility to alter destinations based on market
conditions
• Firm, secure access to capacity, and netbacks are linked
to international benchmark related prices
Multiple Options To Reach International
Markets From Western Canada
Teck has the capacity to enter into
long-term take-or-pay pipeline agreements
82

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BMO Capital Markets Global Metals & Mining Conference 2015

  • 2. Forward Looking Information Both these slides and the accompanying oral presentation contain certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) and comparable legislation in other provinces. Forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variation of such words and phrases or state that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Teck to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statements include statements relating to management’s expectations with respect to our diversification and the benefits of diversification, our production, costs and sales targets and guidance, mine lives and resource lives for our various commodities, costs for our projects, 2015 projected capital expenditures, timing of production at our Fort Hills project, anticipated economic benefits and contributions of Fort Hills project, including, but not limited to, yield and free cash flow, our dividend policy including our goal of paying a sustainable dividend, our investment rating, sensitivity of our profit, EBITDA and operating expenses to oil prices and currency exchange rates, total liquidity, free cash flow examples, potential fuel cost reduction as a result of converting to LNG for trucks, expected work and expenditures in respect of the Elk Valley Water Quality Plan, expectation that we have access to cash and credit lines sufficient to meet our capital commitments, our expectation that we should complete 2015 with over $1 billion in cash, demand and market outlook for commodities. These forward-looking statements involve numerous assumptions, risks and uncertainties and actual results may vary materially. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general business and economic conditions, interest rates, the supply and demand for, inventories of, and the level and volatility of prices of coal, zinc, copper and gold and other primary metals and minerals produced by Teck as well as steel, oil, natural gas and petroleum, the outcome of engineering studies currently underway in connection with Teck’s development projects, the timing of receipt of regulatory and governmental approvals for Teck’s development projects and other operations, receipt of permits to mine, costs of production at our operations and production and productivity levels, as well as those of Teck’s competitors, power prices, market competition, the accuracy of Teck’s reserve and resource estimates (including with respect to size, grade and recoverability) and the geological, operational and price assumptions on which these are based, the assumption that our board will approve dividends, the resolution of environmental and other proceedings, our ongoing relations with our employees and partners and joint venturers, the availability of financing for development projects and the future operational and financial performance of the company generally. Assumptions regarding the sensitivity of EIBTDA and operating costs to oil prices are based on assumptions regarding the amount of diesel fuel used in operations and transporting our coal products, and is also based on an assumed Canadian/U.S. dollar exchange rate of $1.20. Assumptions regarding the impact of currency exchange are based on current commodity prices. Examples regarding cash flow are based on the commodity and exchange assumptions disclosed therein. Statements regarding our potential cash position at the end of the year are based on assumptions that no unusual transactions occur over the year and on current commodity prices. The foregoing list of assumptions is not exhaustive. 2
  • 3. Forward Looking Information Events or circumstances could cause actual results to differ materially. Factors that may cause actual results to vary include, but are not limited to: unanticipated developments in business and economic conditions in the principal markets for Teck’s products or in the supply, demand, and prices for metals and other commodities to be produced, changes in power prices, changes in interest or currency exchange rates, inaccurate geological or metallurgical assumptions (including with respect to the size, grade and recoverability of mineral or oil and gas reserves and resources), changes in taxation laws or tax authority assessing practices, legal disputes or unanticipated outcomes of legal proceedings, unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, government action or delays in the receipt of permits or government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters), assumptions used to generate our economic analysis, decisions made by our partners or co-venturers, political events, social unrest, lack of available financing for Teck or its partners or co-venturers, and changes in general economic conditions or conditions in the financial markets. Our Fort Hills project is not controlled by us and construction, sanction and production schedules may be adjusted by our partners. Credit agencies set our credit rating. The effect of the price of oil on operating costs will be influenced by the exchange rate between Canadian and U.S. dollars. 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, interruption in transportation or utilities, adverse weather conditions, and that there are no material unanticipated variations in the cost of energy or supplies. Statements regarding anticipated coal sales volumes and average coal prices for the quarter depend on timely arrival of vessels and performance of our coal-loading facilities, as well as the level of spot pricing sales. Certain of these risks are described in more detail in Teck’s annual information form available at www.sedar.com and in public filings with the SEC at www.sec.gov. Teck does not assume the obligation to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws. 3
  • 4. Agenda Teck Overview Commodity Market Observations Teck Update 4
  • 5. About Us Canada’s Largest Diversified Natural Resources Company Top ten copper miner in the Americas #3 zinc miner in the world Building an energy business # 1 Producer of steelmaking coal in North America # 2 Seaborne exporter of steelmaking coal globally Safety is our core value Implementing a comprehensive sustainability strategy 5
  • 6. Attractive Portfolio Of Long-Life Assets & Resources Producing through multiple price cycles after capital is recovered, enhancing returns Focused on the Americas & Low Risk, Stable Jurisdictions Strong Resource Position With Sustainable Long-Life Assets Coal Resources >100 years Copper Resources >30 years Zinc Resources >20 years Energy Resources >50 years 6
  • 7. Teck has good leverage to stronger zinc and copper markets, and benefits from the weaker Canadian dollar The Value of Our Diversified Business Model Cash Operating Profit 2014 Coal ~1/3rd Copper ~60% Zinc ~40% Base Metals ~2/3rds Production Guidance1 Unit of Change Estimated Profit 2 Estimated EBITDA2 Coal 27 Mt US$1/tonne $21M /$1∆ $32M /$1∆ Copper 350 kt US$0.01/lb $5M /$.01∆ $8M /$.01∆ Zinc 935 kt US$0.01/lb $8M /$.01∆ $12M /$.01∆ $C/$US C$0.01 $32M /$.01∆ $52M /$.01∆ 2015 Leverage to Strong Commodities 1. Mid-point of 2015 guidance ranges. Zinc includes 650,000 tonnes of zinc in concentrate and 285,000 tonnes of refined zinc. 2. Based on $1.20 USD/CAD. The effect on our profit attributable to shareholders of commodity price and exchange rate movements will vary from quarter to quarter depending on sales volumes. 7
  • 8. Agenda Teck Overview Commodity Market Observations Teck Update 8
  • 9. Source: NBS & CEIC * Assuming 7.1% real GDP growth and 6.16 RMB/USD exchange rate. Lower GDP growth rate on a higher base = strong absolute growth In absolute terms, China’s GDP growth is approximately double that of 10 years ago China’s Growth: Less is More! 9 Incremental GDP in 2015 is expected to be similar to last year, in absolute terms • 2014: RMB 2.95 trillion (~US$480 billion) • 2015*: RMB 3 trillion (~US$493 billion) -1% 1% 3% 5% 7% 9% 11% 13% 15% - 500 1,000 1,500 2,000 2,500 3,000 3,500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015f GDP Increment at 2005 Constant Prices in RMB Increment of GDP, Rmb bn (lhs) GDP real growth (rhs) RMB(Billions)
  • 10. 100 110 120 130 140 150 160 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 $/tonne Stronger US dollar has increased coal prices in C$ terms Sources: Argus, Bank of Canada • ~30 Mt cutbacks announced, slowly being implemented • Require additional cutbacks to achieve market balance • US coal production high end of cost curve and no currency benefit • Continued closure announcements promising for last half of 2015 Met Coal Market Rebalancing; Higher Prices in C$ Terms Coal Prices By Currency Argus FOB Australia AUS$ CDN$ US$ 10
  • 11. 0 100 200 300 400 500 600 700 800 900 ThousandTonnes0 100 200 300 400 500 600 700 800 900 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 ThousandTonnes Source: Wood Mackenzie Copper Surplus Forecast Declining Wood Mackenzie Forecast Refined Copper Surplus 2015 Wood Mackenzie Forecast Refined Copper Surplus 2014 Current surplus forecasts for 2014 & 2015 represent <2% of global demand 11
  • 12. 500 600 700 800 900 1,000 1,100 1,200 0¢ 20¢ 40¢ 60¢ 80¢ 100¢ 120¢ Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Stocks Price 0 200 400 600 800 1,000 1,200 1,400 0¢ 50¢ 100¢ 150¢ 200¢ 250¢ 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Stocks Price US¢/lb thousandtonnes plotted to Feb 16, 2015 US¢/lb thousandtonnes • LME stocks down ~600 kt over 24 months • Large inventory position still to work down • Large, sudden increases indicate there are also significant off-market inventories • Inventories approaching same inflection point level as in 2006 LME Zinc Stocks – Since Dec 2012 plotted to Feb 16, 2015 LME Zinc Stocks - 11 Years Zinc Inventories Declining Source: LME12
  • 13. Source: Baker Hughes Falling oil rig count will eventually lead to lower oil production North American Weekly Oil Rig Count Declining Drilling Activity Will Impact Oil Production 13 • Surge in supply last ~5 years primarily due to US shale oil • Shale oil field decline rates ~25% to 50%, compared to global average of 8% • Production correction likely to occur relatively rapidly 1,000 1,500 2,000 3-Jan-14 24-Jan-14 14-Feb-14 7-Mar-14 28-Mar-14 17-Apr-14 9-May-14 30-May-14 20-Jun-14 11-Jul-14 1-Aug-14 22-Aug-14 12-Sep-14 3-Oct-14 24-Oct-14 14-Nov-14 5-Dec-14 26-Dec-14 16-Jan-15 6-Feb-15 #OilRigs Down 563 rigs or 35% in twelve weeks
  • 14. Agenda Teck Overview Commodity Market Observations Teck Update 14
  • 15. Controlling the Controllables • Solid performance – met or exceeded guidance - Record coal production - Record throughput at Antamina - Record zinc production at Red Dog • Significantly reduced controllable operating costs and planned capex • Maintained a strong balance sheet 15
  • 16. 57 51 19 18 0 10 20 30 40 50 60 70 80 2012 2015 Guidance (Mid) Operating Capitalized Stripping C$/t 0.00 0.50 1.00 1.50 2.00 2.50 2012 2015 Guidance (Mid) US$/lb Copper Cash Costs1 Delivering Results in Cost Management 1. Before by-product credits. 2. Including inventory write-downs. 2.08 1.80 76 69 Steelmaking Coal All-In Site Costs • Copper cash costs before by-product credits down ~14% from peak in 2012 • By-product credits currently reduce costs by ~US$0.30.lb • Coal total site costs including capitalized stripping down ~9% since 2012 • Costs are down further on a US dollar basis • Sustaining capital expenditures are also lower Achieved significant unit cost reductions, and expect further reductions in 2015 2 ~$1.50 net of by- product credits 16
  • 17. Fort Hills’ Economics Robust1 Source: Teck Resources Limited 1. Estimates are based on exchange rates as shown, expected bitumen netbacks, and operating costs of C$25 per barrel, including sustaining capital of C$3-5 per barrel. 2. Per barrel of bitumen. 3. Go-forward capital is the go-forward amount from the date of the Fort Hills sanction decision (October 30, 2013), denominated in Canadian dollars and on a fully-escalated basis. 4. Pre-tax free cash flow yield during capital recovery period. The Fort Hills project is expected to have significant free cash flow yield across a range of WTI prices Fort Hills Free Cash Flow Yield4 Sensitivity to WTI Price Potential Contribution from Fort Hills $70 WTI & $0.80 CAD/USD $90 WTI & $0.90 CAD/USD Teck’s share of annual production (36,000 bpd) 13 Mbpa 13 Mbpa Estimated netback2 ~$54/bbl ~$63/bbl Estimated operating margin2 ~$29/bbl ~$38/bbl Alberta oil royalty – Phase 1 (prior to capital recovery) 2 ~$2/bbl ~$4/bbl Estimated net margin2 ~$26/bbl ~$34/bbl Annual pre-tax cash flow ~$350 M ~$444 M Teck’s share of go-forward capex3 ~$2,940 M ~$2,940 M Free cash flow yield4 ~12% ~15% 0% 5% 10% 15% 20% 25% 60 70 80 90 100 110 120 FreeCashFlowYield WTI $/bbl $0.90 CAD/USD $0.80 CAD/USD 17
  • 18. $0 $1,000 $2,000 $3,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 US$M Cash position Debt Maturity Liquidity of >C$5B, including C$2B cash and undrawn US$3B line of credit ~US$1.75 B 18 As at December 31st, 2014 1. Assumes current commodity prices and exchange rates, Teck’s 2015 guidance for production, costs and capital expenditures and no unusual transactions or events. Strong Balance Sheet & Liquidity Investment Grade Rating • Debt-to-debt-plus-equity of 31% • US$300M of notes due to end of 2016 • Weighted average maturity ~14 years • Weighted average coupon (interest rate) 4.8% • Average maturity <US$600M Targeting year-end 2015 cash balance of $1B1
  • 19. Fort Hills Capex Well Supported By Free Cash Flow & Liquidity 0 200 400 600 800 1000 1200 1400 1600 2014 Free Cash Flow (before Fort Hills Capex) Weaker Canadian dollar, relative to the US dollar Lower oil prices Lower commodity prices (Cu, Zn, Coal) Implied Free Cash Flow (before Fort Hills Capex) $Millions $289 +$201 ($568) $702 +$780 Effect of Disclosed Sensitivities On Free Cash Flow2 (before Fort Hills Capex)1 $2.3B capex to fund over 3 years; with $5B liquidity and good free cash flow 1. Implied impact of disclosed EBITDA sensitivities on free cash flow, assuming spot commodity prices and exchange rate as disclosed in the table above, in comparison to 2014 average prices and exchange rate, for illustration purposes only. Other factors will have a material impact on 2015 EBITDA, and actual results will vary materially from those suggested by this simplified model. 2. 2014A free cash flow is cash flow from operating activities, minus investing activities (excluding $615M investment in Fort Hills), and debt interest paid, before returns to shareholders. 3. Spot prices at February 13, 2015. Sensitivity 2014A Current3 ∆ 2014A to Spot Estimated EBITDA1 CAD/USD $1.10 $1.25 $0.15 $52M /$0.01∆ Oil – WTI (US$/bbl) $93.00 $52.75 ($40.25) $5M /$1∆ Copper (US$/lb) $3.11 $2.60 ($0.51) $8M /$0.01∆ Zinc (US$/lb) $0.98 $0.98 $0.00 $12M /$0.01∆ Coal (US$/t realized) $115 $110 $5 $32M /$1∆ • Remaining share of Fort Hills capital expenditure: C$2.3B over 3 years • ~$5B liquidity available • Expected higher coal/copper production and lower costs may improve cash flow 19
  • 20. Summary Attractive portfolio of long-life assets & resources Good leverage to strong zinc & copper markets Executing well & controlling the controllables Solid financial position Investment grade credit rating 20
  • 23. Diversified Portfolio of Key Commodities North America 20% Europe 18% Latin America 3% China 26% Asia excl. China 33% Source: Teck Resources Limited; 2014 revenue23 Diversified Global Customer Base Coking coal CopperZinc LeadMoly SilverGermanium Indium
  • 24. Original Guidance Actual Results Steelmaking Coal Coal production 26–27 Mt  26.7 Mt Record coal production Coal site costs C$55-60 /t  C$54 /t1 Coal transportation costs C$38-42 /t  C$38 /t Combined coal costs C$93-102 /t  C$92 /t Combined coal costs US$84-92 /t  US$84 /t Copper Copper production 320–340 kt  333 kt Record thru-put at Antamina Copper cash unit costs2 US$1.70-190 /lb  US$1.65 /lb Zinc Zinc in concentrate production3 555-585 kt  660 kt Record at Red Dog Refined zinc production 280–290 kt x 277 kt Higher production 2H14 (1H14: 133 kt; 2H14 143 kt) Capital Expenditures4 $1,905M  $1,498M Significant capex reduction Solid Delivery Against 2014 Guidance 1. Including inventory adjustments. 2. Net of by-product credits. 3. Including co-product zinc production from our copper business unit. 4. Excluding capitalized stripping. 24
  • 25. Actual 2014 2015 Guidance Steelmaking Coal Coal production 26.7 Mt 26.5-27.5 Mt Coal site costs C$54 /t1 C$49-53 /t Coal transportation costs C$38 /t C$37-40 /t Combined coal costs C$92 /t C$86-93 /t Combined coal costs US$84 ~US$69-74 /t2 Copper Copper production 333 kt 340-360 kt Copper cash unit costs3 US$1.65 /lb US$1.45-1.55 /lb Zinc Zinc in concentrate production4 660 kt 635-665 kt Refined zinc production 277 kt 280–290 kt 2015 Production & Site Cost Guidance 1. Including inventory adjustments. 2. At $1.25 CAD/USD. 3. Net of by-product credits. 4. Including co-product zinc production from our copper business unit. 25
  • 26. ($M) Sustaining Major Enhancement New Mine Development Sub-total Capitalized Stripping Total Coal $100 $45 $ - $145 $490 $635 Copper 200 15 105 320 225 545 Zinc 180 - - 180 60 240 Energy - - 910 910 - 910 Corporate 10 - - 10 - 10 TOTAL $490 $60 $1,015 $1,565 $775 $2,340 Total capex of ~$1.6B, plus capitalized stripping 2014A $511 $165 $822 $1,498 $715 $2,213 2015 Capital Expenditures Guidance 26
  • 27. Low oil price benefits Teck overall in the near-term • Reduces operating costs by hundreds of millions of dollars annually1 • Accompanied weaker Canadian dollar improves EBITDA by hundreds of millions of dollars annually2 Reduces budget and schedule pressure on the Fort Hills project • Reduces capex and drilling activity by the sector, which eases pressure on skilled labour and contractors • Reduces competition for pipeline capacity Forces cutbacks in oil production and exploration • Starts the correction to higher long-term oil prices, due to the sector’s decline rates and cuts to capex /drilling activity Provides positive macro-economic stimulus • Drives additional metal consumption, benefiting Teck’s base metals businesses Significant Benefits from Low Oil Prices 1. Each US$1/bbl change in oil price impacts our operating costs by ~$5M on an annual basis, based on $1.20 CAD/USD. 2. Each $0.01 change in the CAD/USD exchange rate impacts our EBITDA by ~$52M on an annual basis. 27
  • 28. Operation Expiry Dates Line Creek In Negotiations - May 31, 2014 Coal Mountain In Negotiations - December 31, 2014 Antamina July 23, 2015 Carmen de Andacollo September 30, 2015 December 31, 2015 Elkview October 31, 2015 Quebrada Blanca October 30, 2015 November 30, 2015 January 31, 2016 Fording River April 30, 2016 Highland Valley Copper September 30, 2016 Trail May 31, 2017 Cardinal River June 30, 2017 Quintette April 30, 2018 Collective Agreements 28
  • 29. Note: Based on public filings Teck Resources Limited March 3, 2014 Shares Held Percent Voting Rights Class A Shareholdings Temagami Mining Company Limited 4,300,000 45.97% 28.62% SMM Resources Inc (Sumitomo) 1,469,000 15.71% 9.78% Caisse de depot et placement du Quebec 1,587,600 16.97% 10.57% Public 1,996,870 21.35% 13.29% 9,353,470 100.00% 62.26% Class B Shares Temagami Mining Company Limited 860,000 0.15% 0.06% SMM Resources Inc (Sumitomo) 295,800 0.05% 0.02% Caisse de depot et placement du Quebec 7,715,997 1.36% 0.51% China Investment Corporation 101,304,474 17.87% 6.74% Public 456,745,086 80.57% 30.40% 566,921,357 100.00% 37.74% Total Shares Temagami Mining Company Limited 5,160,000 0.90% 28.68% SMM Resources Inc (Sumitomo) 1,764,800 0.31% 9.80% Caisse de depot et placement du Quebec 9,303,597 1.61% 11.08% China Investment Corporation 101,304,474 17.58% 6.74% Public 458,741,956 79.60% 43.70% 576,274,827 100.00% 100.00% Share Structure & Principal Shareholders 29
  • 30. • Common corporate structure in Canada • May not confirm to typical governance expectations, but can still have strong governance practices • Family-controlled issuers can benefit from a longer-term outlook and unique governance structure Source: The Impact of Family Control on the Share Price Performance of Large Canadian Publicly-Listed Firms (1998-2012) by Clarkson Centre for Board Effectiveness (Rotman School of Management, University of Toronto) Canadian family-controlled issuers outperformed peers over the past 15 years, greatly benefitting minority shareholders Cumulative Average Growth Rate Family-Controlled Public Issuers 30
  • 31. Teck has been a strong investment in recent years Long-term investments in Teck have outperformed non-family and materials firms Family-Controlled Public Issuers; Teck Share Price Performance Source: The Impact of Family Control on the Share Price Performance of Large Canadian Publicly-Listed Firms (1998-2012) by Clarkson Centre for Board Effectiveness (Rotman School of Management, University of Toronto) 31
  • 32. Annualized Dividend Payout • Aim to pay a sustainable dividend that grows commensurate with growth in earnings and cash flow - Since January 2013, semi-annual payment of $0.45; annualized $0.90 • Normal Course Issuer Bid in place for up to 20M shares 32 Returned Cash To Shareholders $- $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90
  • 34. Source: Dragonomics With the right policies, China still has the potential to boost incomes China’s GDP is ~20% of the US’s on a per capital basis Substantial Economic Growth Requires Decades to Achieve Per Capita GDP Relative to the US at PPP China Japan Korea 0 10 20 30 40 50 60 70 80 90 100 1953 1958 1963 1968 1973 1978 1983 1988 1993 1998 2003 2008 % 34
  • 35. Country 20-Year Period Beginning When Country’s Per Capital GDP Was 21% of US’s Average Annual GDP Growth Rate Over a 20-Year Period Japan 1951-1971 9.2 Singapore 1967-1987 8.6 Taiwan 1975-1995 8.3 Korea 1977-1997 7.6 China* 2008-2028 8.0 Other Asian economies show that China could continue to grow significantly for some time Substantial Potential For Continuous Robust Growth in China 35
  • 36. Room for Further Development in China 0 10 20 30 40 50 60 70 80 90 100 1953 1956 1959 1962 1965 1968 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 China Japan Korea 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Eastern Central Western RMB China Annual Per Capita GDP by RegionPer Capita GDP, Relative to the US Source: Penn World Table, NBS36
  • 37. Room for Further Development in China 2 0% 10% 20% 30% 40% 50% 60% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 With urban Hukou Without urban Hukou %ofTotalPopulation 0 10 20 30 40 50 60 70 80 90 100 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 China Japan Europe US % China Annual Urbanization RateUrbanization Rate Comparison Source: United Nations, NBS37
  • 38. Room for Further Development in China 3 0 5 10 15 20 25 30 35 40 0 1 2 3 4 5 6 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Increase in track length, thousand kilometers, lhs Freight traffic density, rhs Thousandkilometers % $0 $20 $40 $60 $80 $100 $120 $140 2010 2010 1930 2009 China China at PPP US US$(Thousands) $0 $10 $20 $30 $40 $50 $60 $70 2010 at PPP 1971 at PPP 1990 at PPP China Japan US$(Thousands) Source: GK Dragonomics, NBS Chinese Railways Remain Crowded Capital Stock Per Capita (US$ at constant 2005 prices) Capital Stock Per Capita (US$ at constant 1990 prices) 38
  • 39. • Despite China’s rapid urbanization over the past decade (to 54.77% in 2014), it is still lower than the Western world who are all ~80% - China’s current urbanization rate is comparable to Japan’s in the 1950s - China was previously a drag on Asia’s urbanization statistics. Today, it is the driving force, with room for further urbanization • India’s urbanization was 32% in 2013, up from 26% in 1990 - It is expected to grow to 33% by 2015, 35% by 2020 and 37% by 2025 Global Urbanization China and India Leading the Way 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 China India Asia Europe S.America N.America Urbanization Rates Source: United Nations, World Bank39
  • 41. • China’s hot metal production continues to grow - 2004: 258 Mt - 2014: 712 Mt, representing 2.5x the 2004 level and ~60% of global output - 2019E (CRU International) ~840 Mt • Excluding China, global hot metal production remains significant at ~40% Hot Metal Production Growth Source: WSA, based on data reported by countries annually; NBS; CRU International Global Hot Metal Production A Look Back and Forward 350 550 750 950 1,150 1,350 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 China Americas CIS JKT India Europe Other 2019f Growth from 2014 to 2019 (CRU Nov 2014) Global ex. China China Mt 41
  • 42. Traditional Steel Markets • China slower growth • Japan stable • South Korea good growth Outside of Asia • Europe still weak • US good growth Monthly Steel Production Source: WSA, based on data reported by countries monthly; NBS Mt Steel Production Growing Globally Update to December2014 45 55 65 75 China 0 2 4 6 8 10 12 14 16 Japan USA South Korea EU 42
  • 43. Xinjiang Tibet Qinghai Sichuan Inner Mongolia Henan Shanxi Guangxi Guandong Fujian Zhejiang Jiangsu Shandong Laioning Jilin Heilongjiang Guizhou Hunan Hubei Jiangxi Anhui Shaanxi Gansu Ningxia Qinghai Sichuan Yunnan Beijing Hebei WISCO Fangchenggang Project • Major infrastructure in place. WISCO Fangchenggang Steel Company established in Sep to wholly manage the project. • Cold roll line to be commissioned in H1 2015. Other lines are scheduled to start successively within the year. • Blast furnaces (BFs) in the originally approved plan. Billet rolling line only at this time. No timeline for BFs currently. • Targeting 5 Mt steel products in 2016 and 10 Mt in 2017. Baosteel Zhanjiang Project • The environment evaluation was approved in Dec 2014 (~8.8Mt crude steel, 8.2Mt pig iron and 3.2Mt coke). • BF #1 to be commissioned in 2015. Ningde Steel Base • Proposed but no progress yet. Relocation to China’s coastline facilitates access to seaborne raw materials Sources: NBS, CISA Ansteel Baiyunquan Project • Phase 1 (~ 5.4 Mt pig iron, 5.2 Mt crude steel and 5 Mt steel products) in 2013. • Phase 2 (5.4 Mt BF) planned but no progress yet. Capital Steel Caofeidian Project • Planned 20 Mtpa steel capacity. • Phase 1 (10 Mt) completed in 2010. • Phase 2 (10 Mt) under preparation but no progress yet. Shandong Steel Rizhao Project • Planned 21.35 Mt crude steel. • Phase 1 (8.5 Mt) approved in Feb 2013 • Construction started in Sep 2014 and scheduled to commission by the end of 2016. Chinese Steel Industry Moving to the Coast 43 40% 45% 50% 55% 60% 65% 70% 0 100 200 300 400 500 600 700 800 900 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Mt Total Coastal Provinces Coastal %
  • 44. China’s domestic coking coal production is not expected to grow significantly China’s Domestic Coking Coal Production 2013-2014 China’s Domestic Coking Coal Production 44 Source: Sxcoal Annual production flat at ~530 Mt Shanxi coal production to be limited in future • Environment pressures • No new projects to be permitted before 2020 • Permitted production authorization to be enforced • Production expected to not exceed 1,000 Mt vs 977 Mt (raw thermal and met) in 2014 -5% 0% 5% 10% 15% 20% 0 10 20 30 40 50 60 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Mt Chinese coking coal production Mt, lhs YTD growth %, rhs
  • 45. Further Cuts Needed in the Coal Market Source: Wood Mackenzie, Platts, TEX Report, AME, company & news reports and Teck Resources estimates 1. On an operating basis, excluding sustaining capital costs Seaborne Metallurgical Coal Margin Curve at Spot Price of US$115/t Brackets indicate producers closed or still supplying but due to close or deplete inventory Teck • ~30 Mt of production cuts announced - Slightly less than half implemented by year end • Margin curve shows around one third of seaborne met coal is operating at negative margin1 - Implies further cuts are warranted • Market balance dependent on additional production cuts 45
  • 46. 60.0 15.4 13.2 47.7 14.8 6.6 0 10 20 30 40 50 60 70 Seaborne Landborne Stock changeMt 2013 2014 Source: GTIS, Wood Mackenzie, Mysteel 1. Wood Mackenzie forecasts total imports of 96 Mt by 2019 China Rolling 12-Month Coking Coal Imports 46 Growing Steelmaking Coal Imports to China 2019f 2019F1: 96 Mt China's Coking Coal Imports and Stock Change at Ports Imports down by <10% when combined with inventory drawdowns 0 10 20 30 40 50 60 70 80 90 100 Feb-09 Jul-09 Dec-09 May-10 Oct-10 Mar-11 Aug-11 Jan-12 Jun-12 Nov-12 Apr-13 Sep-13 Feb-14 Jul-14 Dec-14 Mt Seaborne Mongolia
  • 47. North America ~5% Europe ~15% Latin America ~5% China ~25% High quality, consistency, reliability, long-term supply Asia excl. China ~50% Source: Teck Resources Limited; 201447 We Are a Leading Steelmaking Coal Supplier To Steel Producers Worldwide
  • 48. 0 50 100 150 200 250 300 350 Q12010 Q22010 Q32010 Q42010 Q12011 Q22011 Q32011 Q42011 Q12012 Q22012 Q32012 Q42012 Q12013 Q22013 Q32013 Q42013 Q12014 Q22014 Q32014 Q42014 US$/tonne Teck Realized Price (US$) Benchmark Price Average realized price discount to benchmark is a function of: 1. Product mix: over 90% is hard coking coal 2. Carry over sales volumes 3. Direction of quarterly benchmark prices and spot prices - Q1 2015 benchmark for premium products is US$117/t Hard Coking Coal Benchmark Price Premium Steelmaking Coal Product Average realized price discount of ~8% 96% 88% 93% 94% 92% 48
  • 49. • Around the world, and especially in China, blast furnaces are getting larger and increasing PCI rates • Coke requirements for stable blast furnace operation are becoming increasingly higher • Teck coals with high hot and cold strength are ideally suited to ensure stable blast furnace operation • Produce some of the highest hot strengths in the world50 60 70 80 90 100 South Africa Japan (Sorachl) Japan (Yubarl) U.S.A. Canada Other Teck HCC Australia Japan South Africa Australia (hard coking) and Canada U.S.A. Australia (soft coking) 10 20 30 40 50 60 70 80 Drum Strength Dl 30 (%) CSR Teck HCC 49 Coking Coal Strength High Quality Hard Coking Coal
  • 50. 0 20 40 60 80 100 120 2014 2015E US$/t Site Costs Transportation Inventory Write-Down Capitalized Stripping Sustaining Capital 105 89 Teck costs lower than most major competitors Total Cash Cost 2015 vs. 2014 Steelmaking Coal Costs 50 (US$/t) 2014 ($1.10 CAD/USD) 2015E* ($1.25 CAD/USD) Site1 $49 $41 Transportation 35 $31 IFRS Total $84 $72 Capitalized Stripping $15 $15 Full Cash Cost $99 $86 Sustaining Capex $6 $3 Total Cash Cost $105 $89 * Based on the mid-point of 2015 guidance. 1. Includes inventory write-down. IFRS Costs
  • 51. 0 1 2 3 4 5 6 7 8 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 MillionTonnes Capacity Grown to 28 Mt 30 40 50 60 70 80 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 MillionsofBCM • Capacity grew from 24 Mt to 28 Mt clean production • Not currently operating at full capacity due to market conditions • Quintette on care and maintenance; available when market conditions improve Material Moved Quarterly Coal Production 51
  • 52. Potential for Further Capacity Growth Potential Production Increase Scenarios Given Teck’s large resource base, there are a number of options available or under study to allow production growth as the market requires: • Quintette restart (up to 4 Mtpa) • Coal Mountain Phase 2, with options from 2 to 4 Mt to extend operations • Brownfields expansions - Elkview expansion - Fording River expansion - Greenhills expansion • Capital efficiency and operating cost improvements will be key drivers - 10 20 30 40 50 Production(Mt) FRO GHO CMO EVO LCO CRO QCO 28 Mt 40 Mt Time Conceptual 52
  • 53. >75 Mt of West Coast Port Capacity Planned Teck Portion at 40 Mt • Exclusive to Teck • Recently expanded to 12.5 Mt • Planned growth to 18.5 Mt Westshore Terminals Neptune Coal Terminal Ridley Terminals West Coast Port Capacity • Current capacity: 12 Mt • Expandable to 25 Mt • Teck contracted at 3 Mt • Teck is largest customer at 19 Mt • Large stockpile area • Recently expanded to 33 Mt • Planned growth to 36 Mt MillionTonnes(Nominal) Teck’s share of capacity exceeds current production plans, including Quintette 12.5 18 33 6 7 3 0 5 10 15 20 25 30 35 40 Neptune Coal Terminal Ridley Terminals Westshore Terminals Current Capacity Planned Growth 53
  • 54. 0% 20% 40% 60% 80% 100% CO2 NOx Particulate SOx Diesel Natural Gas LNG for Haul Trucks Project • Pilot project underway to evaluate running Teck haul trucks on a blend of diesel and LNG - Expected to be running in 2015 • Has the potential to reduce our haul truck fleet fuel bill by $27M annually and lower our CO2 emissions by 35,000 tonnes per year Comparison of Fuel Cost $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 LNG / Diesel Liter Diesel / Liter Gas Cost Liquifaction Carbon Tax Delivery Diesel PriceperLiter Comparison of Emissions %ofDieselEmissions 54
  • 56. 0 200 400 600 800 1000 0¢ 100¢ 200¢ 300¢ 400¢ 500¢ 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 LME Stocks Price US¢/lb thousandtonnes plotted to February 6, 2015 Source: LME Copper Prices & Stocks LME Daily Copper Prices & Stocks 56
  • 57. Copper Concentrate TC/RC 0¢ 10¢ 20¢ 30¢ 40¢ 50¢ 60¢ 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Spot Realised TC/RC TC/RC–NominalUS¢/lb Source: CRU plotted to January 2015 Copper Concentrate TC/RC 57
  • 58. Copper Production Disruptions Continue -384 -171 -950 -859 -776 -851 -945 -524 -941 -947 -831 -930 -297 -1,000 -900 -800 -700 -600 -500 -400 -300 -200 -100 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014F 2015F Thousandtonnescontainedcopper Source: ICSG, Wood Mackenzie Teck, company reports Copper Disruptions 58
  • 59. China Expected to Add Almost As Much to Global Demand in the Next 15 Years as the Past 25 Years - 200 400 600 800 1,000 1,200 1,400 1990 1994 1998 2002 2006 2010 2014 2018 2022 2026 2030 0% 5% 10% 15% 20% 25% 30% 1990 1994 1998 2002 2006 2010 2014 2018 2022 2026 2030 Annual Avg. 13% Annual Avg. 5% Annual Avg. 330mt/yr growth Annual Avg. 505mt/yr growth Thousandtonnes Source: CRU, Wood Mac, Teck Annual Growth Rate of Chinese Copper Consumption to Slow Dramatically… … But Will Add Significantly in Additional Tonnage Terms 59
  • 60. 0 100 200 300 400 500 600 700 800 900 1,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Cathode Concs Scrap Blister/Semis 000’stonnes(content) China Now Accounts for >49% of Global Copper Consumption Source: Antaike China’s Copper Imports Remain Strong 60
  • 61. 0 500 1,000 1,500 2,000 0 50 100 150 200 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0 100 200 300 400 500 600 700 0 10 20 30 40 50 60 70 80 90 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0 500 1,000 1,500 2,000 2,500 3,000 3,500 0 50 100 150 200 250 300 350 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0 500 1,000 1,500 2,000 2,500 3,000 3,500 0 50 100 150 200 250 300 350 400 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec China Copper Imports Continue to Grow Total contained copper imports up 5.6% YTD Copper Concentrates Net Imports Refined Copper Net Imports Copper Anodes Net Imports Scrap Copper Net Imports 20142013 61
  • 63. Zinc Prices & Stocks 0 200 400 600 800 1,000 1,200 1,400 0¢ 50¢ 100¢ 150¢ 200¢ 250¢ 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Stocks Price Source: LME US¢/lb thousandtonnes plotted to Feb 6, 2015 LME Daily Zinc Prices & Stocks 63
  • 64. Zinc Treatment Charges $0 $100 $200 $300 $400 $500 $600 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Spot Annual Realised US$/dmt Source: Teck, CRU plotted to January 2015 Zinc Spot TCs vs. Realized Annual TCs 64
  • 65. Significant Zinc Mine Reductions; Large Short-Term Losses, More Long Term -600 -500 -400 -300 -200 -100 0 Century RampuraAgucha Lisheen Perseverance RedDog Pomorzany Brunswick Zyryanovsk MaeSod Paragsha Angas -600 -500 -400 -300 -200 -100 0 Century RampuraAgucha Lisheen Skorpion Rosebery RedDog Perseverance Pomorzany-Olkusz Brunswick Cayeli Jaguar Zyryanovsk Akhzal(Aktogask) KiddCreek Bracemac-McLeod Source: ICSG, Wood Mackenzie Teck, Company Reports 2013-2017 2013-2020 65
  • 66. Future Potential for Zinc Consumption 6% 19% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 China USA • In 2014 China produced over 822 million tonnes of crude steel and 52 million tonnes of galvanized steel sheet • In 2014 the US produced 88 million tonnes of crude steel and over 16 million tonnes of galvanized steel sheet • If China were to galvanize crude steel at half the rate of the US and at the same rate of zinc per tonne of galvanized sheet as the US, then Zinc consumption in China could add a further 2.1 million tonnes or 22% of current global consumption Source: World Steel, CRU66 % Galvanized Steel of Crude Production
  • 68. $- $20 $40 $60 $80 $100 $120 $- $20 $40 $60 $80 $100 $120 $140 $160 Jan-07 May-08 Sep-09 Feb-11 Jun-12 Nov-13 Mar-15 WTI(US$/bbl) CAD$cents/L WTI (US/bbl) (rhs) Alberta ULSD Rack Rate (lhs) Diesel & Crude Oil Prices Spread has widened; Delay in changes in crude oil prices flowing through to diesel prices Diesel Prices vs. WTI Prices 2007-2014 Source: Alberta Transportation, OPIS. Average Diesel Premiums: 2007-2014: C$0.22/litre 2011-2014: C$0.27/litre 68
  • 69. Source: Baker Hughes Falling oil rig count will eventually lead to lower oil production North American Weekly Oil Rig Count Declining Drilling Activity Will Impact Production 69 • Surge in supply last ~5 years primarily due to US shale oil • Shale oil field decline rates ~25% to 50%, compared to global average of 8% • Production correction likely to occur relatively rapidly1,000 1,500 2,000 1/3/14 1/17/14 1/31/14 2/14/14 2/28/14 3/14/14 3/28/14 4/11/14 4/25/14 5/9/14 5/23/14 6/6/14 6/20/14 7/3/14 7/18/14 8/1/14 8/15/14 8/29/14 9/12/14 9/26/14 10/10/14 10/24/14 11/7/14 11/21/14 12/5/14 12/19/14 1/2/15 1/16/15 1/30115 #OilRigs
  • 70. • Significant value created over long term • 60% of PV of cash flows beyond year 5 • IRR of 50-year project is only ~1% higher than a 20- year project • Options for debottlenecking and expansion 50-year assets provide for superior returns operating through many price cycles The Real Value of Long-Life Assets Fort Hills Project Indicative Rolling NPV1 1. Indicative NPV assumes US$95 WTI, $1.05 Canadian/US dollar exchange rate, and costs as disclosed with the Fort Hills sanction decision (October 30, 2013). 70
  • 71. Building An Energy Business Strategic diversification Large truck & shovel mining projects World-class resources Long-life assets Mining-friendly jurisdiction Competitive margins Minimizing execution risk Tax effective         71 Mined bitumen is in Teck’s ‘sweet spot’
  • 72. 1. GLJ Petroleum Consultants, December 2013 2. There is no certainty that it will be commercially viable to produce any portion of the contingent bitumen resources. For more information about contingent bitumen resources, see Teck’s annual information form dated March 3, 2014 available at www.sedar.com. 3. Sproule, December 2013 World-Class Energy Reserves & Resources No Exploration Risk – No Large Finding Costs Bitumen Reserves Teck’s Share (million bbl) Proved Probable Proved Plus Probable Fort Hills 1 414 194 608 Contingent Bitumen Resources2 Project Teck’s Share (million bbl) Low Best High Low Best High Fort Hills 1 0 128 752 0 26 150 Frontier 3 2,360 3,047 3,465 2,360 3,047 3,465 Lease 421 Total 2,360 3,175 4,217 2,360 3,073 3,615 Still to be declared World Class Energy Reserves & Resources 72
  • 73. Fort Hills Is One of the Best Undeveloped Oil Sands Mining Leases Ore grade is a function of the bitumen quantity in the deposit TV:BIP is a ratio of the total volume of bitumen in place to the total volume of material required to be moved (like a strip ratio) Strip Ratio vs. Ore Grade Source: Teck 9.5 10 10.5 11 11.5 12 8910111213 OreGrade(wt%bitumen) TV:BIP Fort Hills Frontier • >3 billion bbls of proven plus probable reserves of bitumen - Production 180,000 barrels per day (bpd) of bitumen - Teck’s share is significant at 36,000 bpd; equivalent to 13 million barrels per year (Mbpy) • World-class resource - Average ore grade of 11.4% - Strip ratio of 1.5:1 and TV:BIP of 10.5 • Consistent production year-over-year through multiple decades - Scheduled to produce first oil as early as Q4 2017 - Expect 90% of planned production capacity within 12 months 73
  • 74. Fort Hills Is Part Of A New Breed Of Mineable Oil Sands Projects Mine & Extraction Diluted Bitumen (Doesn’t meet commercial pipeline specs) Heavy Crude Conversion Refinery With Coker Simple RefineryOn-Site Upgrader ($10-15B) New mining projects produce clean, high-quality bitumen and receive a heavy oil price (discounted), but don’t have to invest in an upgrader ‘PFT’ Diluted Bitumen (Meets commercial pipeline specs) Export Pipeline Synthetic Oil Legacy Oil Sands Mining Projects (~30 Years Ago) Oil Sands Mining Projects Today Naphtha froth treatment process Paraffinic froth treatment ‘PFT’ process Mine & Extraction 74
  • 75. Suncor has demonstrated strong project execution with Firebag 4, Extraction Plant 300, TROTM, and North Steepbank Extension completed at or below initial projected costs Suncor is the largest operator in the oil sands and has been developing projects in close proximity to Fort Hills for 50 years ▪ Leveraging Suncor’s project execution experience and deep contractor relationships ▪ Experience in managing large workforces of comparable size in this region ▪ Deploying existing, proven technology Project Bitumen Capacity1 Millennium/North Steepbank Mine 310-330 kb/d Firebag In Situ Stages 1-4 180 kb/d MacKay River In Situ 30 kb/d Fort Hills 180 kb/d 75 Source: Suncor 1. Capacity targets provided above do not necessarily equate to daily production. Fort Hills’ Project Operator Has A Proven Track Record
  • 76. Minimizing Execution Risk In The Fort Hills Project • Cost-driven schedule - “Cheaper rather than sooner” • Disciplined engineering approach • “Shovel Ready” • Global sourcing of engineering and module fabrication • Balanced manpower profileSuncor has completed 4 projects of ~$20 billion over last 5 years, all at or under budget Benefiting from Suncor’s operational and project development experience 76
  • 77. 1. All costs and capital are based on Suncor’s estimates. 2. Go-forward capital is the go-forward amount from the date of the Fort Hills sanction decision (October 30, 2013), denominated in Canadian dollars and on a fully-escalated basis. Competitive Costs1 for Fort Hills Project Capital: ~C$13.5 billion Teck Capital: • Fully-escalated capital investment: ~C$2.94B over four years (2014-2017), including remaining earn-in of C$240M • Estimated spending in 2014: C$800M, incurred costs, based on Suncor’s planned project spending of C$3.16B Operating & Sustaining Costs: • C$25 to $28/bbl total • Sustaining C$3-5/bbl (included in above) • Excludes diluent purchase To be financed by a combination of cash balance, free cash flow and $3B unused line of credit Fully Escalated Go-Forward Capital2 $0 $20 $40 $60 $80 $100 $120 $140 Project 1 Project 2 Fort Hills CostsinC$ThousandsperBarrel/day Capital Cost Per Flowing Barrel Full project cost including spent to date: C$84 77
  • 78. Source: Alberta Energy bitumen valuation methodology (http://www.energy.alberta.ca/OilSands/1542.asp) * Based on example exchange rate of $1.25 CAD/USD Bitumen Netback Calculation Example* Teck seeks to secure dedicated transportation capacity for Fort Hills volumes to key markets to minimize WCS discount Bitumen Netback Calculation Model US$75.00 C$56.50 C$75.00 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 ~75% Bitumen ~25% Diluent Typical Diluted Bitumen (Dilbit) Blend Western Canadian Select (WCS) at Hardisty WTI Bitumen Netback US$60 C$42.75 US$75 C$56.50 US$90 C$70.25 78
  • 79. $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Differential WTI-WCS US$/barrel$0 $20 $40 $60 $80 $100 $120 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-1 WCS Hardisty WTI Cushing US$/barrel Heavy Oil Price Differential West Texas Intermediate (WTI) & Western Canadian Select (WCS) Prices WTI-WCS Differential Source: Bloomberg, Teck Resources Limited Fort Hills project economics benefit from recent narrowing of the WTI-WCS differential Plotted to 2/12/2014 Plotted to 2/12/2014 Long-term WTI-WCS differential 79
  • 80. Netback2 $56.50/bbl Cash Margin $31.50 Cash Costs $25.00 LME Price US$2.50/lb Cash Margin US$1.25 Cash Costs US$1.25 Competitive Bitumen Margins1 Typical Bitumen Producer 56% Margin Low Quartile Cost Copper Mine 50% Margin Fort Hills’ cash margins are expected to be comparable to the lowest cost mining operations 1. Excludes royalties. 2. Assuming US$75 WTI, $15 differential WTI to WCS and $0.80 USD/CAD 80
  • 81. Wood Buffalo Pipeline Extension Norlite Diluent Pipeline East Tank Farm Blending w/Condensate Cheecham Terminal Hardisty Terminal Wood Buffalo Pipeline Athabasca Pipeline Waupisoo Pipeline Edmonton Terminal Fort Hills Mine Terminal Northern Courier Hot Bitumen Pipeline Pipeline Legend Existing New Logistics Solutions Planned Between Fort Hills, Edmonton and Hardisty Pipeline/Terminal Operator Nominal Capacity (kbpd) Teck Capacity (kbpd) Northern Courier Hot Bitumen TransCanada 202 40.4 East Tank Farm- Blending Suncor 292 58.4 Wood Buffalo Blend Pipeline Enbridge 490 58.4 Wood Buffalo Blend Pipeline Extension Enbridge 490 58.4 Norlite Diluent Pipeline Enbridge 130 18 Hardisty Blend Tankage TBD Teck Options Export Pipe Rail Local Market 81
  • 82. Common Carriage Pipeline • No take or pay commitments • When pipe capacity is constrained, access to capacity may be apportioned and netback prices are discounted Markets • US Mid- Continent • US Gulf Coast • Eastern Canada / US East Coast • West Coast Exports • East Coast Exports Western Canada Contract Carriage Pipeline • Typically requires 10-25 year take or pay commitments • Firm, secure access to capacity, and netbacks are linked to international benchmark related prices Rail • More expensive (may require additional capital) • Has the flexibility to alter destinations based on market conditions • Firm, secure access to capacity, and netbacks are linked to international benchmark related prices Multiple Options To Reach International Markets From Western Canada Teck has the capacity to enter into long-term take-or-pay pipeline agreements 82