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Investor and Analyst Day
March 30, 2016
Forward Looking Information
Both these slides that you will be presented today and the accompanying oral presentations 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). 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 Teck’s costs,
production, expenditures, financial projections and guidance, production targets and guidance and those other statements identified in the slides titled
“Forward Looking Information” in each of the individual presentations. The “Forward Looking Information” slide in each individual presentation is
incorporated by reference and please refer to each of those slides for further information.
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 our products, the timing of receipt of regulatory and governmental approvals
for Teck’s expansions, Teck’s costs of production and production and productivity levels, as well as those of its competitors, market competition, the
accuracy of Teck’s reserve and resources estimates and the geological, operational and price assumptions on which these are based, tax benefits, the
resolution of environmental and other proceedings, our ongoing relations with our employees and partners and joint venturers, performance by customers
and counterparties of their contractual obligations, and the future operational and financial performance of the company generally. Each of the slides
titled “Forward Looking Information” in the individual presentations describe additional assumptions for the forward-looking statements included in that
presentation.
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 interest or currency exchange rates, inaccurate geological assumptions (including with respect
to the size, grade and recoverability of reserves and resources), 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), decisions made by our partners or co-venturers, social unrest, failure of
suppliers to meet their contractual commitments and changes in general economic conditions or conditions in the financial markets. Each of the slides
titled “Forward Looking Information” in the individual presentations describe events and uncertainties that could cause actual results to differ materially.
Certain of these risks and the risks described in the slides titled “Forward Looking Information” in each of the individual presentations are described in
more detail in Teck’s annual information form available under Teck’s corporate profile at www.sedar.com and 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.
Overview and Strategy
March 30, 2016
Don Lindsay, President & Chief Executive Officer
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 a core
value
Implementing a
comprehensive
sustainability strategy
Overview and Strategy
Canada’s Largest Diversified Resources Company
3
Overview and Strategy
Senior Management Planned Retirements
Ray Reipas
Senior Vice President, Energy
Tim Watson
Senior Vice President, Project Development
Rob Scott
Senior Vice President, Zinc
Ian Kilgour
Executive Vice President & Chief Operating Officer
4
Overview and Strategy
Senior Management Update
• Continued strong leadership
• Closer reporting relationship between GMs and senior executives
• Further aligned to current business environment
Dale Andres
SVP, Base Metals
Robin
Sheremeta
SVP, Coal
Andrew Stonkus
SVP, Sales & Marketing
Copper
Operations
Zinc
Operations
Coal
Operations
Energy
Sales &
Marketing
Base Metals
Sales &
Marketing
Coal
Sales &
Marketing
Alex Christopher
SVP, Exploration, Projects
& Technical Services
Exploration
Engineering
& Related
Activities
5
Diversification to expand opportunity set
Long life assets
Low half of the cost curve
Appropriate scale
Low risk jurisdictions
Overview and Strategy
Consistent Long-Term Strategy
6
• Based in Vancouver, Canada, with
operations in the Americas
• Strategy focused on long life assets
in stable jurisdictions
• Sustainability: Key to managing
risks and developing opportunities
Strong Resource Position1
With Sustainable Long-Life Assets
Coal Resources ~100 years
Copper Resources ~30 years
Zinc Resources ~15 years
Energy Resources ~50 years
Overview and Strategy
Attractive Portfolio of Long-Life Assets
1. Reserve and resource life estimates refer to the mine life of the longest lived resource in the relevant commodity assuming production
at planned rates and in some cases development of as yet undeveloped projects. See the reserve and resource disclosure in our most
recent Annual Information Form, available on SEDAR and EDGAR, for additional detail regarding underlying assumptions.
7
Overview and Strategy
Plan to Navigate an Extended Low Price
Environment & Emerge Stronger
Strength of our diversified portfolio
of long-life assets & resources
Strong operating execution
Target for positive cash flow from core business
Finish building Fort Hills
Protect our strong financial position
8
Overview and Strategy
Core Business Free Cash Flow vs.
Development Project Cash Flow
Cost management delivering improvements
in Free Cash Flow2, despite weakening prices
Target for positive cash flow
Funding from internal sources in 2016;
Current cash balance > remaining capital1
Fort Hills Development Project Core Business
Potential future free cash flow
Teck’s total share of capital $2.94B
Remaining capital
(as of February 10th, 2016)
$1.2 B
Teck cash balance
(as of February 10th, 2016)
~$1.8 B
(100)
-
100
200
Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15
C$Millions
Free Cash Flow,
Before Fort Hills Capex
1. As of February 10, 2016. Based on Suncor’s planned project spending. Sanction 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.
2. Free Cash Flow is Net Cash from Operations, before changes in Working Capital, less Investing activity excluding Fort Hills capital
expenditures, not including proceeds from sales of investments, less interest paid and distributions to minority interests.
9
Overview and Strategy
Near-Term Priorities
10 1. Assumes current commodity prices and exchange rates, Teck’s 2016 guidance for production,
costs and capital expenditures, existing US$ debt levels and no unusual transactions.
• Target for positive cash flow from
core business
• Fund Fort Hills from internal
sources in 2016
• Protect our strong financial
position
− Target for US$3B credit facility
to remain undrawn in 2016
− Expect year-end cash balance
of >$500M1
− Evaluating opportunities to
further strengthen liquidity
Overview and Strategy
Options to Strengthen Liquidity
• Further cost & capital reductions
• Asset value realization
opportunities
− Infrastructure assets
− Non-operating assets
− Additional precious metal
streaming transactions
− Minority interests in assets
− Royalties on future cash flows
11
Finance
March 30, 2016
Ron Millos, Senior Vice President, Finance & Chief Financial Officer
Finance
Agenda
2015 Overview
Balance Sheet & Liquidity
2016 Guidance & Overview
Summary
3
Diversified gross profit
Focus on costs has delivered improvements in free cash flow
Strong balance sheet and liquidity
Extended debt maturities consistent with long-life assets
Well positioned to finance capital spending plans
4
Finance
Navigating Difficult Market Conditions
Guidance Results
Steelmaking Coal
Production1
25-26 Mt  25.3 Mt
Site costs C$49-53/t  C$45/t
Transportation costs C$37-40/t  C$36/t
Combined costs2
C$86-93 /t  C$83/t
US$64/t
Lower unit costs at all mines
Copper
Production 340-360 kt  358 kt Record mill throughput at Antamina
Cash unit costs3
US$1.45-1.55 /lb  US$1.45/lb Lower unit costs at all mines
Zinc
Metal in concentrate production4
635-665 kt  658 kt
Refined production 280–290 kt  307 kt Record production at Trail
Capital Expenditures5
$2.3B  $2.2B Lower capex
Finance
Solid Delivery Against 2015 Guidance
1. Reflects mid-year revision for temporary shutdowns.
2. Combined coal costs are site costs, inventory adjustments and transportation costs.
3. Net of by-product credits.
4. Including co-product zinc production from our copper business unit.
5. Including capitalized stripping.
5
0%
25%
50%
75%
100%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Coal Copper Zinc
Gross Profit Before Depreciation and Amortization
Finance
Diversified Gross Profit
(before depreciation & amortization)
6
Teck has good leverage to stronger zinc and copper markets,
and benefits from the weaker Canadian dollar
Finance
The Value of Our Diversified Business Model
Cash Operating Profit 2015
Production
Guidance1
Unit of
Change
Estimated
Profit 2
Estimated
EBITDA2
$C/$US C$0.01 $22M /$.01∆ $34M /$.01∆
Coal 25.5 Mt US$1/tonne $23M /$1∆ $35M /$1∆
Copper 312 kt US$0.01/lb $6M /$.01∆ $9M /$.01∆
Zinc 940 kt US$0.01/lb $9M /$.01∆ $14M /$.01∆
2016 Leverage to Commodities & FX
1. Based on mid-point of 2016 guidance ranges. Zinc includes 645 kt of zinc in concentrate and 295 kt of refined zinc.
2. Based on budgeted commodity prices and a 1.40 CAD/USD exchange rate. The effect on our profit and EBITDA will vary with
commodity price and exchange rate movements, and sales volumes.
Coal
~30%
Copper
35%
Zinc
35%
Base
Metals
~70%
7
Finance
Core Business Free Cash Flow1
Free Cash Flow, Before Fort Hills Capital
(100)
-
100
200
Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15
C$Millions
Cost management delivered improvements in
Free Cash Flow, despite a weakening price environment
1. Free Cash Flow is Net Cash from Operations, before changes in Working Capital, less Investing activity excluding Fort Hills capital
expenditures, not including proceeds from sales of investments, less interest paid and distributions to minority interests.
8
Finance
Agenda
2015 Overview
Balance Sheet & Liquidity
2016 Guidance & Overview
Summary
9
0
500
1000
1500
2000
2500
Original Guidance
for December
31,2015
Lower Prices &
FX vs. Start of
Year Forecast
Repayed Debt
From Cash
Cost Management
Program
Cut Capex Reduced the
Dividend
Proceeds from
Sale of
Investments &
Other Assets Incl.
Two Precious
Metal Streaming
Transactions
Cash Balance on
December 31,
2015
Cash Balance Improvement in 2015, Relative to Original Guidance
Finance
Strong Cash Balance
$Millions
$1,000
$1,887
$208
$100
$1,100
$259
$406 $144
Reflects management actions to conserve cash
10
$0
$250
$500
$750
$1,000
$1,250
$1,500
$1,750
$2,000
$2,250
$2,500
$2,750
$3,000
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
US$M
11
• No debt due until 2017
− Weighted average maturity ~14 years
− Weighted average coupon (interest rate) ~4.8%
− Average maturity <US$600M
• Debt to debt-plus-equity ratio 37%1
2017
Q1: US$300M
Q3: US$300M
Repaid US$300M in notes in Q4 2015
As at December 31, 2015.
Finance
Long-Dated Debt Maturity Profile
Amount
(M)
Commitment Maturity
Letters of
Credit Limit
($M)
Letters of
Credit Drawn
($M)
Total
Available
($M)
US$3,000 Committed July 2020 US$1,000 Undrawn US$3,000
US$1,200 Committed June 2017 None US$740 US$460
Expect to keep available for
letter of credit requirements
~C$1,700 Uncommitted n/a n/a ~C$1,500 ~C$200
• Unsecured; any borrowings rank pari passu with outstanding public notes
• Only financial covenant is debt to debt-plus-equity of <50%; excludes issued letters of credit
• Availability not affected by commodity price changes or credit rating actions
• Available for general corporate purposes
Ample liquidity for remaining Fort Hills capital expenditure of ~C$1.2B
Current cash balance of C$1.5B (3/4/16) and substantial credit facilities1:
1. As of December 31, 2015. Assumes a 1.38 CAD/USD exchange rate.
Finance
Strong Liquidity
12
Finance
US$1.2B Committed Credit Facility
US$740M drawn for letters of credit at Dec 31st
• US$672M for power purchase agreements for QB2
− Requirements decrease:
• If/when QB2 is sanctioned and certain project milestones are reached
− Requirements go away:
• If/when QB2 reaches commercial production, regardless of credit rating; or
• When Teck regains an investment grade credit rating
− Actively reviewing options to onsell power
• C$93M for transport service agreements related to Fort Hills
− If all counterparties request financial assurances, aggregate requirement could
increase up to C$550M by year end 2016 and C$650M by year end 2017
− Aggregate maximum requirement decreases to C$450M post the relevant
in-service date (late 2017 and beyond)
− Requirements go away when Teck regains an investment grade credit rating
13
Finance
C$1.7B Uncommitted Credit Facilities
• C$1.5B drawn for letters of
credit, mostly for reclamation
obligations
− Export Development Canada
facility renewed annually
− Other facilities are uncommitted
• Assessing surety bonds to reduce
bank exposure
Canadian
Banks
EDC
Others
Uncommitted credit facilities are with relationship banks
that have been supportive of Teck through the industry cycles
14
• Teck has no secured debt
• Ability to grant security:
− On certain specified properties (HVC, Red Dog, Elkview, Fording)
• Capped at 10% CNTA ~ C$3.2B
• Subject to partner consents where applicable
− On all non-specified properties
• No restrictions
− Subsidiaries can provide guarantees
• If certain subsidiaries provide total guarantees in excess of
US$250M, the same guarantees would need to be provided to
lenders under both committed credit facilities
Finance
Ability to Grant Security
15
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
Jan-05
Jan-06
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
Jan-14
Jan-15
Jan-16
Moody's S&P Fitch DBRS London Metal Exchange Index (Right Axis)
BBB/Baa2
BBB-/Baa3
BB+/Ba1
BB/Ba2
BB-/Ba3
BBB+/Baa1
B+/B1
B/B2
B-/B3
A+/A1
A/A2
A-/A3
InvestmentGradeNon-InvestmentGrade
Teck Credit Ratings vs. London Metal Exchange Index
Finance
Credit Ratings Reflect Commodity Prices
16
Finance
Agenda
2015 Overview
Balance Sheet & Liquidity
2016 Guidance
Summary
17
2015 Results 2016 Guidance
Steelmaking Coal
Production 25.3 Mt 25-26 Mt
Site costs $45/t $45-49/t
Capitalized stripping $16/t $11/t1
Transportation costs $36/t $35-37/t
Total cash costs2
$99/t
(US$76/t)
$91-97/t
(US$65-69/t)
Copper
Production 358 kt 305-320 kt
C1 unit costs3
US$1.45/lb US$1.50-1.60/lb
Capitalized stripping US$0.21/lb US$0.21/lb1
Total cash costs4
US$1.66/lb US$1.71-1.81/lb
Zinc
Metal in concentrate production5
658 kt 630-665 kt
Refined production 307 kt 290-300 kt
Finance
2016 Production & Site Cost Guidance
1. Approximate, based on capitalized stripping guidance and mid-point of production guidance range.
2. Steelmaking coal unit cost of sales include site costs, inventory adjustments and transport costs. Total cash costs
are unit cost of sales plus capitalized stripping.
3. Net of by-product credits.
4. Copper total cash costs include cash C1 unit costs (after by-product margins) and capitalized stripping.
5. Including co-product zinc production from our copper business unit.
18
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2012 2013 2014 2015 2016
Guidance
New Mine
Development
Major
Enhancements
Sustaining Capital
Capitalized
Stripping
$M
Finance
Achieved Capital Spending Reductions
Total Capital Expenditures 2012-2016F
19
Finance
Agenda
2015 Overview
Balance Sheet & Liquidity
2016 Guidance & Overview
Summary
20
• Core business to remain cash flow positive1
• All operations to generate positive cash flow2
• Achieve sustainable cost savings and capital reductions / deferrals
• C$500M minimum cash balance at year end, with no new debt
• Maintain sufficient liquidity
Finance
2016 Financial Objectives
1. Core business excludes the Fort Hills development project.
2. After sustaining capital and capitalized stripping.
21
Operations
March 30, 2016
Ian Kilgour, Executive Vice President & Chief Operating Officer
Robin Sheremeta, Vice President, Coal Operations
Dale Andres, Senior Vice President, Copper
Rob Scott, Senior Vice President, Zinc
Operations
Agenda
Overview
Steelmaking Coal
Copper
Zinc
Summary
3
Staying true to Teck’s values
Delivering results
Building operational excellence
Disciplined capital spending
Focused growth pipeline
4
Operations
Meeting the Challenge
Operations
Staying True to Teck’s Values
Safety
Sustainability
Integrity
Respect
Excellence
Courage
5
Operations
Safety is a Core Value
Courageous Safety Leadership
Visible Felt Leadership
Frontline Leadership Development
Incident Investigation
Health & Safety Benchmarking
Control Effectiveness Reviews
Risk Management
Standards & Best Practices
Technology Enablers
6
Operations
Managing High Potential Safety Risks
Focus on High Potential Risk Controls
• Risk identification – serious & fatal
injury potential
• Reviewing control strategies &
effectiveness
• Reducing high potential incidents
High Potential Incident Performance
0.0
0.5
1.0
1.5
2010 2011 2012 2013 2014 2015
PFO SHPI HPI
Per200,000hours
Work Team Risk Assessments
• Improved risk ownership at a team
level
• Working on identifying solutions
together
• Contributing to our culture of safety
New fall protection tower at Trail
7
Operations
Sustainability Incorporated in Operations
Sustainable practices are the “right thing to do”
and have a solid business case
Formalizing our commitment to
working with Indigenous Peoples
Enhancing air quality in areas near our
operations
Reducing GHG remissions and energy
costs through haul truck efficiency
Strengthening diversity at operations
8
Operations
LNG Haul Trucks – Status Update
9
• Six pilot trucks have been converted to “dual-fuel” - LNG and diesel (four 830E’s,
two 930E’s); first in Canada
• Current substitution rates achieved: 25 – 40% (target >35%)
• Pilot objective is to confirm the business case (cost and sustainability) for a Teck
wide application; focus is on safety, sustainability and operability
• Establishing reliability of the LNG systems
• Optimizing LNG substitution rates and monitoring GHG emissions
9
0.00
0.50
1.00
1.50
2.00
2.50
2012 2013 2014 2015 2016F*
Before by-product credits
After by-product credits
US$/lb
0
50
100
150
200
250
300
350
400
2012 2013 2014 2015
US$pertonneofproduction
0
10
20
30
40
50
60
70
80
90
2012 2013 2014 2015 2016F*
Operating
Capitalized Stripping
C$/t
Operations
Delivering Results in Unit Cost Management
Copper Cash Costs3
Achieved significant unit cost reductions,
and expect further reductions in 2016
Steelmaking Coal Total Site Costs1
2
1. Total site costs are site costs, inventory write-downs and capitalized stripping, excluding depreciation.
2. Operating costs include site costs and inventory write-downs.
3. By-product credits reduced cash costs by US$0.19/lb in 2015. Assumes US$0.19/lb in 2016.
4. Zinc cash costs are Red Dog site costs per tonne of combined zinc and lead production.
* 2016F based on mid-point of guidance range.
Zinc Cash Costs4
10
- $50 $100 $150 $200 $250 $300
Other ($1M)
Productivity - Utilization (e.g Op Delays) ($5M)
Components (life/cost) ($7M)
Freight savings ($7M)
Over time reduction ($12M)
Productivity - Enablers, multiple levers ($16M)
Plan optimization ($21M)
Pricing Improvements ($20M)
Equipment Rental Savings ($20M)
Mining Productivity - Availability ($23M)
Admin savings ($55M)
Idling & Energy Savings ($64M)
Consumables ($64M)
Employee Cost Reduction ($134M)
Contractors/Consultants Reduction ($160M)
Mining Productivity - Throughput ($215M)
2013 Initiatives 2014 Initiatives 2015 Initiatives
CAD$ millions
(all USD savings translated using CAD/USD rate of 1.384)
~$820M of Annualized Savings in 2015, from Major Cost Reduction Initiatives in 2013-2015
Annualized 2015 Savings from Major Cost Reduction Program Initiatives
Targeting an additional $300M in operating cost reductions in 2016;
A total of >$1B of annualized savings identified and included in 2016 plan
Operations
Embedding Sustainable, Ongoing
Operating Cost Reductions in the Organization
11
Planning
Blasting
Loading and Hauling
Crushing
Stockpiling
Geology and Metallurgy
Grinding
Optimizing value across the production process to breakdown silos
and drive continuous improvement
Operations
One Teck: Mine to Mill Optimization
Increased
Margin
Lower Unit
Costs
More
Product
Sharing Best Practices
12
Operations
Disciplined Project Execution
Our project delivery framework strengthens our ability
to deliver projects on time and on budget
Highland Valley Crusher Relocation Project
Teck Project
Delivery Framework
• Significant progress in
permitting practices
• Tight alignment between
permitting and
engineering
• Integrating sustainability
into project framework
Pend Oreille Restart
West Line Creek Water Treatment Plant
13
Robust People Development
Systems are Key
• Performance management systems that
align organizational goals and objectives
with personal goals
• Company-wide development programs for
all levels of supervision and management,
including operational based leadership
development
- To address the demand on increasing leadership
competence to drive business results
• Internal career opportunities
- Ensuring ‘the best people in the right jobs’ at the
right time
14
Operations
People Achieve Excellence
We attract, engage and develop people whose passion, skills and
motivation lead our journey in safety, sustainability and productivity
Program
Began
# of
Cohorts
# of
Participants
Leading for
the Future (LFF)
2011 40
844
~70% of eligible population
Leading for
Excellence (LFX)
2011 33
462
~70% of eligible population;
Includes 30 senior leaders
The Leadership
Challenge (LC)
2014 16
271
~15% of eligible population
0
200
400
600
800
1000
1200
1400
2010 2011 2012 2013 2014 2015 2016F
$M
Steelmaking Coal Copper Zinc Corporate
15
Operations
Disciplined Capital Allocation
Reductions in sustaining capex have been possible
in the medium term, due to significant past investments
Growth Capital1Sustaining Capital
1. Growth capital is major enhancement capital and new mine development, including Fort Hills.
0
200
400
600
800
1000
1200
1400
2010 2011 2012 2013 2014 2015 2016F
$M
Steelmaking Coal Copper Zinc Energy
Coal
Well established
with capital efficient
growth options
Strong platform combined with diverse portfolio of options
allows us to be selective in terms of commodity and timing
Completed In Construction Pre-Sanction
Copper
Strong platform
with substantial
growth options
Zinc
World-class resource
combined with
integrated assets
Energy
Building a new
business through
partnership
Trail #1 Acid Plant
HVC Mill Optimization
Pend Oreille Restart
Fort Hills
Elk Valley Brownfield
(4 Mpta)
Operations
Staged Growth/Value Pipeline
Red Dog Satellite
Deposit – Anarraaq
San Nicolas (Cu-Zn)
Elk Valley Brownfield
(Replacement 4Mpta)
Quintette/Mt. Duke
Frontier
Lease 421
QB Phase 2
Corridor
Mesaba
ZafranalHVC Brownfield
Galore/Schaft Creek
Cirque
Future Options
Trail #2 Acid Plant
Medium-term
Growth Options
Elk Valley Brownfield
Antamina Brownfield
Red Dog Satellite
Deposits
Neptune Terminals to
18Mtpa
16
Staying true to Teck’s values
Delivering results
Building operational excellence
Disciplined capital spending
Focused growth pipeline
17
Operations
Meeting the Challenge
Operations
Agenda
Overview
Steelmaking Coal
Copper
Zinc
Summary
18
Steelmaking Coal
Focused on Today; Prepared for Tomorrow
19
Improving efficiency
Continuing to lower costs
Maintaining future potential
Steelmaking Coal
An Integrated Long Life Coal Business
20
Prince Rupert
Ridley Terminal
Vancouver
Prince George Edmonton
Calgary
Westshore Terminal
Quintette
Cardinal River
Elk Valley
Kamloops
British Columbia
Alberta
Seattle
Elkford
Sparwood
Hosmer
Fernie
Fording
River
Greenhills
Line
Creek
Elkview
Coal
Mountain
ElcoElk Valley
1,150 km
• >1 billion tonnes of reserves support 26 Mt of production for many years
• Geographically concentrated in the Elk Valley
• Established infrastructure and capacity with mines, railways and terminals
• Only steelmaking coal mines still operating in Canada; competitive globally
Neptune Terminal
20
Coal
Mountain
Phase 2
20
Ongoing improvement in safety performance
Achieving top quartile truck and shovel productivities
Maintaining cash positive operations
Targeting opportunities to lower maintenance and procurement costs
21
Steelmaking Coal
Continued Operational Excellence
80%
87%
88%
97%
40%
50%
60%
70%
80%
90%
100%
2012 2013 2014 2015
%ofBenchmark
Teck Coal Truck Productivities
Significant annualized value in truck productivity improvements
1. All-in sustaining costs are in inclusive of cost of sales, capitalized stripping and sustaining capital expenditures.
50
75
100
125
150
175
200
2012 2013 2014 2015 2016F
$/tonne(CDN)
All-in Sustaining Costs Transport Coal Price
25% cost reduction from 2012 to 2016
Cost management delivers positive cash margin despite weakening
i
1
197
125
76
81
0
50
100
150
200
250
300
350
400
450
500
2013 2014 2015 2016
$(millions)
2013 Savings 2014 Savings 2015 Savings 2016 Target
Highlights:
• Truck productivity improvements achieved
$145M in sustainable savings
• Labour improvements resulted in $90M
savings
• $74M savings in contractor management
initiatives
Highlights:
• Reduction of 587 employees since
December 2013
• Reduction of 360 employees since the May
2015 hiring freeze
• Additional planned reduction of 99
employees in 2016
Steelmaking Coal
Cost Reduction & Workforce 2013-2015
~$400M of sustainable annual cost reductions to date;
targeting >$81M of additional savings in 2016
CoalHiringFreeze
Achieving balanced workforce profile
to manage production to market conditions
Total Annualized Savings ~$400M
4,711
4,463
4,124
4,025
5,000
5,400
5,800
6,200
6,600
7,000
3,000
3,400
3,800
4,200
4,600
5,000
Dec-13 Dec-14 Dec-15 2016
Tonnes/Employee
#Employees
Workforce Productivity
22
56
35 34
1
37
28 26
21
12
8
2012 2015 2016F
Total cash costs down US$46/t from 2012 to 2016F2
Total Cash Costs2
23
US$/t 20123 2015 2016F4 Change
Site $56 $35 $34 -39%
Inventory Adjustments $0 $1 $0 n/a
Transportation $37 $28 $26 -29%
Unit Cost of Sales (IFRS) $93 $64 $60 -35%
Capitalized Stripping $21 $12 $84 -61%
Total Cash Costs2 $114 $76 $68 -40%
Sustaining Capital $14 $2 $15 -90%
All In Sustaining Costs $128 $78 $69 -45%
1. In US dollars per tonne. Assumes a Canadian dollar to US dollar exchange rate of 1.00 in 2012, 1.28 in 2015 and 1.38 in 2016.
2. Steelmaking coal unit cost of sales include site costs, inventory adjustments and transport costs. Total cash costs are unit cost
of sales plus capitalized stripping. All in sustaining costs are total cash costs plus sustaining capital.
3. Assumes that capitalized stripping was reported from January 1, 2012.
4. Based on the mid-point of guidance ranges.
5. Approximate, based on capital expenditures guidance and mid-point of production guidance ranges.
IFRS
$114
$76
IFRS IFRS
$68
Site
Inventory
Transport
Capitalized
Stripping
Steelmaking Coal
Highly Competitive Costs1
West Line Creek Treatment Plant
• First of the water treatment facilities planned for the
Elk Valley; total cost $120M
• Operating at design flowrate (7,500 m3 per day) and
achieving design selenium and nitrate reductions
Fording River South Treatment Plant
• Facility to be operational by 2019, using learnings
from West Line Creek
• Project capital estimate of <$150M
Elk Valley Water Quality Plan Costs
• Capex as per previous guidance for both plants,
and expectation that this will continue as design
and construction improvements are incorporated
• Costs included in sustaining capital
• Continuing research and development into
alternative processes which have potential to
further reduce costs
24
Steelmaking Coal
Achieving the Elk Valley Water Quality Plan
Overview of FROAWTF-S Location and Streams
Steelmaking Coal
5 Year Planning Objectives 2016
• Evaluating options to maintain 26 Mt of
annual production
− Despite the closure of CMO and
CRO in the 5 year horizon
− Exploring lowest cost options at
remaining 4 Elk Valley operations
− Utilize assets available from
closed operations
• Maintain all operations cash positive
throughout the plan
− Embed continuous cost
improvement in each year
− Ensure plans meet short term
goals without sacrificing the long
term viability of the operations
• Future growth options remain available
but dependent on stronger coal prices -
5
10
15
20
25
30
2017F 2018F 2019F 2020F 2021F
Production(millionstonnes)
Conceptual Future Production Profile
FRO GHO (80%) EVO LCO CRO CMO Added Elk Valley
25
Steelmaking Coal
Focused on Today; Prepared for Tomorrow
26
Improving efficiency
Continuing to lower costs
Maintaining future potential
Operations
Agenda
Overview
Steelmaking Coal
Copper
Zinc
Summary
27
28
Solid assets in low-risk jurisdictions
Cost reduction
Productivity and throughput improvements
Advancing best project opportunities
Copper
Finding Opportunity in Challenges
• Operating assets with long lives
capable of multiple price cycles
• Strong resource base to leverage
- Opportunities at existing operations
to extend mine lives significantly
- Disciplined approach to greenfield
project portfolio
0
100
200
300
400
500
2012 2013 2014 2015 2016E* 2017-
2019E
Tonnes(000’s)
Cu Cathode Cu in Concentrate
Copper Production
* 2016E represents the mid-point of 2016 guidance.
Copper
Long-Life Assets Focused on the Americas
29
0.2
0.3
0.4
100
125
150
175
200
2012 2013 2014 2015 2016E* 2017-
2019E
2020+
Grade(%)
Tonnesperday(000’s)
Mill Throughput Copper Grade R&R Grade
Lower Near-Term Copper Production
Focusing on sustainable cost reduction strategies to
unlock potential expansion and extension options
* 2016E represents the mid-point of 2016 guidance.
• High-grade phase ends late-2016
• Aggressive cost reduction plans
• Options to expand production & mine life
Copper
Highland Valley Grade Decline in the Short-Term
30
0.60
0.80
1.00
1.20
50
100
150
200
2011 2012 2013 2014 2015 2016E* 2017-
2019E
Grade(%)
Tonnesperday(000s)
Mill Throughput Copper Grade
Record Throughput in 2015Strong Cost Position
* 2016E represents the mid-point of 2016 guidance.
Antamina
• New three-year collective agreement signed
• Increasing zinc production over the next 5 years
• Copper and zinc grades rising
• Strong cost position; driving further improvements
Copper
Antamina’s Resources Support a Long Mine Life
31
Copper
Removing Barriers to Unlocking Value at Andacollo
0.2
0.4
0.6
30
45
60
2012 2013 2014 2015 2016E* 2017-
2019E
Grade(%)
Tonnesperday(000’s)
Mill Throughput Copper Grade
Throughput Offsets Grade Decline1
30
60
90
2012 2013 2014 2015 2016E* 2017-
2019E
Copperproduction,t(000’s)
Copper in Concentrate Copper Cathode
Extending Cathode Production Creates Value
1. Grade represents total copper grade of ore sent to the mill only, excluding the cathode operation.
* 2016E represents the mid-point of 2016 guidance.
• Four-year labour agreements settled
• Throughput improvement projects underway
• Further cost reductions in progress
• Extending cathode production to 2020
32
Copper
Cutting Costs & Evaluating Options at Quebrada Blanca
RIPIOS
RIPIOS
DUMP
• Labour agreements settled through 2017
• Geotechnical issues mitigated
• Implementing aggressive cost reduction initiatives
• Evaluating options to supplement production
-
20
40
60
80
2012 2013 2014 2015 2016E*
UnitCosts($/lb)
Tonnes(000’s)
Cu Production Unit Costs
2
Cash Costs Maintained Against Declining Production
* 2016E represents the mid-point of 2016 guidance.
33
• Aggressive capex reduction
targets
− Compressed layout with
reduced earthworks, concrete
& steel
• New tailings location to
significantly reduce capex
− 25 year initial development
plan due to tailings capacity,
but no change in reserves
• Preparing for environmental
permit submission in 2H2016
Copper
Reducing Capital Costs at Quebrada Blanca 2
Concentrator
Cyclone
Station
New Tailings Site
Existing
Operation
Focus on advancing permitting
of the “right project”
34
35
• Committed to building strong, mutually
beneficial relationships with
stakeholders and communities
• Capital smart partnership
- Common infrastructure
- Longer mine life
- Reduced environmental footprint
- Enhanced community benefits
• Short term priorities
- Community engagement &
participatory planning
- Evaluate strategic options &
prefeasibility study
35
Before: Duplicate Infrastructure
After: Common Infrastructure
Copper
Building Partnerships: Project Corridor
• Absolute cost reduction
• Productivity improvements
• Labour force reduction
• Contractor reduction
• Managing supply contracts and usage
Copper
Intense Focus on Costs & Productivity
36
37
Solid assets in low-risk jurisdictions
Cost reduction
Productivity and throughput improvements
Advancing best project opportunities
Copper
Finding Opportunity in Challenges
Operations
Agenda
Overview
Steelmaking Coal
Copper
Zinc
Summary
38
• Red Dog has stable zinc production despite declining grade
• Pend Oreille moving to a higher proportion of secondary mining,
which improves selectivity and ore availability
• Increased refined zinc production at Trail with enhanced process
stability of a new acid plant
• Value creating roadmaps for Red Dog and Pend Oreille
39
Zinc
Poised to Capitalize on
Improving Fundamentals
Mill Throughput vs. Grade
40
Stable zinc metal production despite declining grade
• Declining zinc grade offset
by increasing mill throughput
• Increasing mill throughput
has resulted in reduced unit
cost
• Exploring opportunities to
further increase mill
throughput
Zinc
Red Dog: Maintaining Zinc Metal Production
Expected Production
2017-2019
• 500,000-550,000 tonnes of zinc
• 100,000-110,000 tonnes of lead
10
15
20
25
2,000
2,500
3,000
3,500
4,000
4,500
5,000
Grade%
MillThroughput(kt)
Grade
Throughput
41
Su-Lik
Aktigiruk
Anarraaq
Red Dog
Mine
NANA Lease
100% Teck
Red Dog District Drilling 2004-2015
Significant regional land position
• 350 km2 of highly prospective NANA and State
lands with identified exploration targets
• Ongoing drilling programs to enhance resource
certainty and define future developments
Zinc
Red Dog: Significant Exploration Potential
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Mine Regional Exploration
41
1980 – Red Dog Main and
Qanaiyaq drilled
1989 – First ore from Main
1995 – Aqqaluk and Paalaaq
discovered
2012 - First ore from Aqqaluk
2016 – First ore from Qanaiyaq
35 years of discovery and development
42
Zinc
Red Dog: Mine Area Deposits
1999 Discovery: Anarraaq
2001 Discovery: Aktigiruk
Underground targets
Plan & section at same scale as previous slide
43
Anarraaq–Aktigiruk corridor
Zinc
Red Dog: Regional Exploration Discoveries
2cm
1.1 m @ 42.2% Zn, 14.7 % Pb, 558g/t Ag
2cm
1.9 m @ 24.6% Zn, 6.3 % Pb, 53g/t Ag
Zinc
Red Dog: Anarraaq High Grade Intercepts
Demonstrate Significant Resource Potential1
DDH1718
54.7m @ 15.7%Zn, 4.0% Pb, 106g/t Ag
Incl. 11.2m @ 34.2% Zn, 11.5% Pb, 382g/t Ag
DDH1714
42m @ 18.3% Zn, 4.5% Pb, 82g/t Ag
Incl. 23.4m @ 23.2% Zn, 5.2% Pb, 74g/t Ag44
Industry Average Zinc Grades Falling
High Grade Anarraaq Intercepts
Red Dog zinc grades are much
higher than industry average
0
5
10
15
20
25
2009 2010 2011 2012 2013 2014 2015
Grade%
Weighted Average
Industry Grade
Red Dog
1. The scientific and technical information disclosed has been reviewed and approved
by Rodrigo Marinho, P.Geo., Technical Director, Reserve Evaluation, Teck who is
a Qualified Person under NI 43-101. For further information, please see Teck’s
most recent Annual Information Form.
• Underground mine
• Road access
• Power generation
• Access to Aktigurik
• Resource upside
• Resource drilling
• Development schedule
and capital
• SAG motor upgrades
• Fine grinding
• Additional flotation
• Lower ore cut-off
• Further throughput
increase
• Mill space
• Generator capacity
Components
Opportunities
Challenges
• Crushing & sorting
equipment
• Reactive ore
• Higher metal recovery
• Lower cut-off
• Increase throughput
• Screening technology
• Underground mine
• Access from Anarraaq
• Resource upside
• Resource drilling
• Development schedule
and capital
Creating value through long-term planning
45
Mill Throughput
Increase
Anarraaq
Underground
Ore Sorting
Aktigiruk
Underground
Current Life of
Mine Plan
Legend
Zinc
Red Dog: Value Creating Road Map
Ore Production from Secondary Mining
46
Stabilizes ore production, which will result in reduced unit costs
• Room and pillar stopes developed
by drift mining
• Initial ore supply entirely from
primary mining of stopes – limited
broken ore inventory
• Secondary mining increases as
stopes established and pillars can
be removed as the mining front
retreats – larger broken inventory
0
100
200
300
400
500
600
700
800
900
2004 2005 2006 2007 2008 2015 2016F
OreMined(ooo’stonnes)
Primary Mining (Drift)
Secondary Mining (Pillar)
Zinc
Pend Oreille: Increasing Secondary Mining
• Tailings back fill
• Resource in adjacent
to existing workings
• Higher grades
• Additional life
• Resource drilling
• Development schedule
and capital
• Dry stack tailings
• Resources in YH1
• Higher grades and
recovery
• Additional mine life
• Drilling required
• Permitting of tailings
Components
Opportunities
Challenges
Creating value through long-term planning
47
Possible Life
Extension
to 2028
Ongoing
Exploration to
Define Future
ResourcesOre Sorting
Current Life of
Mine Plan
Legend
Zinc
Pend Oreille: Value Creating Road Map
Acid Plant Reliability –
Unplanned Downtime and Refined Zinc Production
260
265
270
275
280
285
290
295
300
305
310
0%
1%
2%
3%
4%
5%
6%
7%
8%
2010 2011 2012 2013 2014 2015
RefinedZincProduction(000'st)
UnplannedDowntime(%)
48
Increased refined zinc production with
enhanced process stability of a new acid plant
New Acid Plant
• Commissioned May 2014;
first full year 2015
• Removes SO2 gas created
from roasting sulphide
concentrates.
• Replaced unreliable 40-year
old acid plants
Focus on Cost Reduction
• Personnel utilization
• Zinc production
Zinc
Trail: More Reliable Acid Plant
Unplanned Downtime
• Red Dog has stable zinc production despite declining grade
• Pend Oreille moving to a higher proportion of secondary mining,
which improves selectivity and ore availability
• Increased refined zinc production at Trail with enhanced process
stability of a new acid plant
• Value creating roadmaps for Red Dog and Pend Oreille
49
Zinc
Poised to Capitalize on
Improving Fundamentals
Operations
Agenda
Overview
Steelmaking Coal
Copper
Zinc
Summary
50
Staying true to Teck’s values
Delivering results
Building operational excellence
Disciplined capital spending
Focused growth pipeline
51
Operations
Meeting the Challenge
Marketing
March 30, 2016
Andrew Stonkus, Senior Vice President, Marketing & Sales
Réal Foley, Vice President, Coal Marketing
Mike Doma, Managing Director, Lee & Doma Energy Group
Marketing
Agenda
Overview
Steelmaking Coal
Base Metals
Energy
Summary
3
Marketing
World Economy in 2016
Global growth expected to increase to 2.8% in 2016, vs. 2.6% in 2015
• India will be the fastest-growing economy at 7.6%1
• China is determined to keep growth >6.5%, per the 13th Five Year Plan
− Focusing on further urbanization as a key growth driver
− Accelerating supply-side reforms, including reduction of overcapacity
in coal and steel
− Taking a more expansionary fiscal policy and monetary policy stance
− Moving towards a more consumer/service based economy, which
should provide positive fundamental support to later stage metals
Global GDP is still growing
1. CRISIL’s estimate of real GDP growth.4
Marketing
Prolonged Deep Cycle
Prices starting to improve
Source: LME, BEA, LBMA, Teck
Relative Price Changes
0.0
0.2
0.4
0.6
0.8
1.0
1.2
ZN CU Au WTI HC Coal
plotted to
March 15, 2016
Peak
2014-2016
Change
From Peak
Change From
December 2015
Oil $108/bbl -66% -3%
Zinc $1.10/lb -28% +10%
Copper $3.37/lb -34% +5%
Gold $1,385/oz -8% +16%
HC Coal $135/Mt -39% +8%
5
• Up cycles in green and down cycles in orange; plotted against duration in years on the right scale
• Peak-to-trough price moves during the cycle in blue; plotted against the left axis
• Up cycles tend to be longer, with higher percentage gains
Marketing
Price Cycles Deepest since 1920’s
Years
PeaktoTroughCycle%Change
Source: Wood Mackenzie, USGS, WBMS, Teck
* Copper prices were fixed in the 1932-1937 period.
72%
-37%
132%
-57%
3%
41%
-68%
130%
-10%
86%
-13%
115%
-37%
23%
-6%
92%
-12%
50%
-15%
54%
-28%
5%
-13%
97%
-30%
51%
-45%
16%
-14%
333%
-26%
68%
-49%
5
4
6
4
6
2
3
5
8*
3
1
7
2 2
1
9
2 2
4
2 2
1 1
5
4
2
4
1
2
5
2 2
5
0
2
4
6
8
10
12
14
16
18
20
-600%
-500%
-400%
-300%
-200%
-100%
0%
100%
200%
300%
400% Example: Copper Cycle
6
Current cycle is extreme from a historical perspective
Coal market slowly rebalancing
Minor copper surplus at risk
Structural deficits developing in zinc
Oil market rebalance and WTI >US$50/bbl expected by end 2017
Good long-term fundamentals
Marketing
Improving Commodity Markets
7
Marketing
Agenda
Overview
Steelmaking Coal
Base Metals
Energy
Summary
8
9
Steelmaking Coal Marketing
Market Slowly Rebalancing
• Steelmaking coal in longest and deepest cycle
• Pricing at unsustainably low levels
• USA supply reduced and remains under most pressure
• Good demand outside China
• Higher pricing required to incent future production
Our Market - Seaborne Hard Coking Coal2: ~200 million tonnes
1. Source: International Energy Agency 2014 data
2. Source: CRU
Global Coal Production1: 7.9 billion tonnes
Steelmaking Coal Production2: ~1,185 million tonnes
Export Steelmaking Coal2: ~325 million tonnes
Seaborne Steelmaking Coal2: ~290 million tonnes
Steelmaking Coal Marketing
High Grade Hard Coking Coal Is A Niche Market
10
60
80
100
120
140
160
$/tonne
Quarterly Contract Settlement Argus FOB Australia
Steelmaking Coal Marketing
Largest Uptick in Spot Prices Since Q3 2013
Source: Argus
Coal Prices: Quarterly Benchmark Prices and Spot Assessments
Q2 Benchmark Price?
11
Steelmaking Coal Marketing
Mixed Views on China Coking Coal Imports
2020F
China's Coking Coal Imports & Stock Changes
Stocks at ports and end users reaching low levels
China Rolling 12-Month Coking Coal Imports
2020 Forecast: 30~70 Mt
Source: GTIS, Wood Mackenzie, CRU, UBS, Mysteel
0
10
20
30
40
50
60
70
80
2009
2010
2011
2012
2013
2014
2015
Milliontonnes
Seaborne imports rolling 12mo
Mongolia imports rolling 12mo
60.0
15.4
13.2 13.1
35.3
12.7
3.4
8.0
0
10
20
30
40
50
60
70
Seaborne Landborne Stock at ports Stock at sample
end users
Milliontonnes
2013 2015
12
0
200
400
600
800
1000
1200
1400
Mt
Estimated Crude Steel Capacity Crude Steel Production
Source: Teck, Fenwei, NBS, CISA, MIIT, State Administration of Work Safety
Steelmaking Coal Marketing
China Reducing Overcapacity
Raw CoalCrude Steel
13th 5-Year Plan:
Eliminate 100-150 Mt of capacity
13th 5-Year Plan:
Eliminate 500 Mt of capacity
0
1000
2000
3000
4000
5000
Mt
Estimated Raw Coal Capacity Raw Coal Production
13
0
200
400
600
800
1000
2010 2015 2020 2025 2030 2035
Crude Steel and Hot Metal Production
Source: WSA, China Association of Metalscrap Utilization, Wood Mackenzie
Crude Steel
Steelmaking Coal Marketing
China Scrap Use to Increase Slowly
China’s Scrap Ratio Low vs. Other Countries
73%
54%
33%
88%
28%
50%
11%
36%
0%
20%
40%
60%
80%
100%
United
States
Europe Japan Turkey Russia Korea China World
Average China
Steel Use
By Sector
(2000-14)
Electric Arc Furnace
Hot Metal
Hot metal / crude steel ratio to remain >90%
and EAF share of crude steel production <10% until ~2028
14
Steelmaking Coal Marketing
Growing India Steelmaking Coal Imports
India’s Hot Metal Capacity;
Projects and Operations
Seaborne Steelmaking Coal Imports
Required to Meet India Hot Metal Production
0
10
20
30
40
50
60
70
80
0
10
20
30
40
50
60
70
80
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
HMP forecast by Wood Mackenzie
HMP forecast by CRU
Seaborne Steelmaking Coal Imports (average Wood Mackenzie and CRU)
Mt
Seaborne steelmaking coal imports forecasted to increase by >20%
Source: WSA, Wood Mackenzie, CRU15
Source: CRU, Wood Mackenzie
Steelmaking Coal Marketing
Stronger Fundamentals in Rest of the World
Seaborne Steelmaking Coal Imports
(Average Wood Mackenzie and CRU; Change 2020 vs. 2015)
16
Steelmaking Coal Marketing
Cash Margins Under Pressure
Seaborne HCC Cash Margins US Steelmaking Seaborne Coal Exports
38 Mt
0
10
20
30
40
50
60
70
Mt
2000-2009
average of 23 Mt
2010-2014
average of 55 Mt
>90% of US HCC exports are cash negative
Source: GTIS, Wood Mackenzie17
Steelmaking Coal Marketing
Australian Production Peaking
Australian Steelmaking Coal Production
Higher pricing required to incent more production
Source: CRU
100
120
140
160
180
200
220
2016 2018 2020 2022 2024 2025
Existing & Committed Production
Mt
18
Steelmaking Coal Marketing
We Are a Leading Steelmaking Coal Supplier
To Steel Producers Worldwide
North America
~5%
Europe
2015: ~20%
2013: ~15%
China
2015: ~20%
2013: ~30%
High quality, consistent, reliable, long-term supply
Asia excl. China
2015: ~50%
2013: ~45% Latin America
~5%
Proactively realigning sales with changing market
19
20
Steelmaking Coal Marketing
Market Slowly Rebalancing
• Steelmaking coal in longest and deepest cycle
• Pricing at unsustainably low levels
• USA supply reduced and remains under most pressure
• Good demand outside China
• Higher pricing required to incent future production
Marketing
Agenda
Overview
Steelmaking Coal
Base Metals
Energy
Summary
21
22
Base Metals Marketing
Strong Fundamentals
Copper
• Global mine production continues to underperform
• Small surpluses but low global stocks
Zinc
• Cutbacks/closures push market into significant deficit
• Zinc metal market working off excess inventory
• Consensus for metal deficits in 2016 & 2017
Base Metals Marketing
Slowing Copper Mine Production Growth
0
5,000
10,000
15,000
20,000
25,000
30,000
2010 2013 2016 2019 2022 2025
ThousandTonnes
Mine Production SXEW Scrap Demand
Copper Mine Production Peaks in 2017 Uncommitted Projects Increasingly Delayed
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2016F
Last Year
2016F
Today
2018F
Last Year
2018F
Today
2020F
Last Year
2020F
Today
ThousandTonnes
Highly Probable Probable Possible
Existing and Fully Committed Mines
Committed and operating mine production peaking
& replacement projects delayed
Source: Wood Mackenzie, CRU, ICSG, Teck23
Base Metals Marketing
Copper Cathode Balances Trending Down
-950
-859
-776
-851
-945
-584
-839
-973
-831
-968
-1,315
-225
-1,400
-1,200
-1,000
-800
-600
-400
-200
0
Thousandtonnes
Analysts projecting weak fundamentals still don’t show massive stock builds
Source: Wood Mackenzie, Teck
Historic Disruptions 7-9% / Year
2015 Disruptions: 8.5%
2016 YTD: 6.7%
-200
-100
0
100
200
300
400
500
WM
CRU
JPM
MS
Citi
CS
UBS
Macq
BNS
TD
Thousandtonnes
1% of Demand
Analyst 2016 & 2017 Cathode Balances
24
Base Metals Marketing
Significant Chinese Copper Demand Remains
…But Will Add Significantly
in Additional Tonnage Terms
Annual Growth Rate of Chinese Copper
Consumption to Slow Dramatically…
China expected to add almost as much to global demand
in the next 15 years as the past 25 years
Source: Wood Mackenzie, Teck
-
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.
11.9%
Annual Avg.
2.8%
Annual Avg. Growth
356 kt Annual Avg. Growth
325 kt
Thousandtonnes
25
0
200
400
600
800
1,000
1,200
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Cathode Concs Scrap Blister/Semis
000’stonnes(content)
Net Copper Imports up ~5% in 2015
Source: NBS
Updated to
January 2016
Total copper unit imports continue to climb
Base Metals Marketing
China Switching to Copper Concentrates
26
(2,000)
(1,500)
(1,000)
(500)
0
500
2012 2014 2016 2018 2020
Thousandtonnes
• At 2.3% global demand growth,
480,000t of new supply needed
annually
• Post 2016, mine production falls
~260,000t per year
• Structural deficit starts 2018
• Projects delayed today will not be
available to the market by 2018
• Market finely balanced through
2018; could materially change with
similar disruptions to 2015
Forecast Copper Refined Balance
Base Metals Marketing
Long-Term Copper Mine Production Still Needed
Source: ICSG, Wood Mackenzie, Teck27
Base Metals Marketing
Global Copper Stocks Falling
-
50
100
150
200
250
300
350
400
450
500
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2011 2012 2013 2014 2015 2016 US¢/lb
Thousandtonnes
Chinese Bonded LME COMEX SHFE LME Price
• Prices down 33% in 2015 on
surplus view
• Total reported stocks in days
of global consumption:
− Today: ~14 days
− Early 2013: ~28 days
Copper Stocks
Source: CRU, SHFE, LME, CME, Teck
plotted to
Mid-March 2016
Lower prices have not translated into increased stocks
28
29
• Mine production continues to underperform
• Small forecast surpluses relative to market size
• Production curtailments and project delays due low prices
• Global stocks are low in days of consumption
• Deficit if upside to demand or higher than forecast disruptions
Base Metals Marketing
Minor Copper Surpluses at Risk
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2016F
Last
Year
2016F
Today
2018F
Last
Year
2018F
Today
2020F
Last
Year
2020F
Today
ThousandTonnes
Highly Probable Probable Possible
Base Metals Marketing
Slowing Zinc Mine Production Growth
Zinc Mine Production Peaks in 2020 Uncommitted Projects Increasingly Delayed
Existing and Fully Committed Mines
Committed and operating mine production peaking
& replacement projects delayed
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
2010 2013 2016 2019 2022 2025
ThousandTonnes
Mine Production Secondary Demand
Source: Wood Mackenzie, CRU, ILZSG, Teck30
4,000
4,500
5,000
5,500
6,000
6,500
7,000
2012 2013 2014 2015 2016F
Thousandtonnes
Mine Supply ROW Conc Imports Australia Conc Imports Metal Imports Demand 3%
Source: NBS, GTIS, Wood Mac, Teck
Chinese Zinc Supply, Including Trade & Demand
Base Metals Marketing
Chinese Zinc Spot Market is Short
• 2016 Australian mine production will fall 43%
• Chinese concentrate imports: 40% Australia and 30% Peru in 2015
• 2016 shortage of 1.0 Mt at 0% growth, and 1.3 Mt at 3% growth
ConcentrateSupply
ConcentrateSupply
Lower concentrate supply expected in 2016
31
Spot TCs Tighten
Base Metals Marketing
Market Consensus for Tightening Zinc Market
Source: BGRIMM/Antaike, Wood Mackenzie
-1,000
-800
-600
-400
-200
0
200
400
WM
CRU
JPM
MS
Citi
CS
UBS
Macq
BNS
TD
Thousandtonnes
2016 2017
Analyst Zinc Metal Balance Comparison
$0
$100
$200
$300
$400
$500
$600
Spot Annual
32
Base Metals Marketing
Committed Zinc Supply Insufficient for Demand
Forecast Zinc Refined Balance
Source: Teck
• We expect insufficient mine supply to
constrain refined production
− From 2014-2020, refined metal supply
increase of only 792 kt
− Over the same period, refined demand
increase of 2.8 Mt
• Market was in deficit in 2014
• Ongoing, large inventory that has
funded the deficit will continue in 2016
• Metal market moving into significant
deficit with further mine closures and
depleting inventories
(2,500)
(2,000)
(1,500)
(1,000)
(500)
0
500
2012 2013 2014 2015 2016 2017 2018 2019 2020
Thousandtonnes
33
-
20
40
60
80
100
120
0
500
1,000
1,500
2,000
2,500
2011 2012 2013 2014 2015 2016
US¢/lb
Thousandtonnes
Chinese Bonded LME SHFE LME Price
Base Metals Marketing
Global Zinc Stocks Falling
• Prices fell 27% in 2015
• Total reported stocks in days
of global consumption:
− Today: ~25 days
− Early 2013: ~59 days
Zinc Stocks
Source: CRU, SHFE, LME, Teck
plotted to
Mid-March 2016
34
35
Base Metals Marketing
Structural Deficits Developing in Zinc
• Mine closures have occurred
• Supply deficit magnified by production cuts
• Spot concentrate treatment charges falling
• Chinese metal imports must increase
• Stocks declining & insufficient to meet demand
36
Base Metals Marketing
Strong Fundamentals
Copper
• Global mine production continues to underperform
• Small surpluses but low global stocks
Zinc
• Cutbacks/closures push market into significant deficit
• Zinc metal market working off excess inventory
• Consensus for metal deficits in 2016 & 2017
Marketing
Agenda
Overview
Steelmaking Coal
Base Metals
Energy
Summary
37
38
Energy Marketing
Near-Term Market Expectations
• Oil markets currently oversupplied
• Markets expected to rebalance in 2017
• >US$50/bbl WTI expected by end 2017
Energy Marketing
Market Rebalance Expected in 2017
$0
$50
$100
$150
$200
40
50
60
70
80
90
100
Nominal$US/bbl
MMb/d
Oil Demand
(left axis)
Source: IEA and EIA
Source: Wood Mackenzie Macro Oils Short-Term Outlook, February 2016
Long-Term Trend: Prices rose to create
supply to meet demand growth
• 2000–2015 demand up 16 MM b/d
− Growth from 74 to 90 MM b/d or 1.3%/yr
• 2000–2015 supply
− Higher prices required to bring on incremental supply
to meet demand growth
− Supply growth (16 MM b/d): U.S. 4.8, Russia 4.6,
Saudi Arabia 2.1, Canada 1.6, China 1.1, Brazil 1.0, Net
Others 0.8
Short-Term: Low price due to oversupply &
resultant inventory build
• 2011–2015 liquids supply up 7.9 MM b/d
− U.S. tight oil growth and Saudi policies result in current
oversupply and inventory build
− Supply growth (MM b/d): U.S. 4.8, Iraq 1.3, Saudi
Arabia 1.1, Canada 0.9, Net Others -0.2
• Supply/demand expected to rebalance in 2017
− Response to low price signals have begun
− Key 2016 trends: Demand to grow, US tight oil
production to decline and Iranian production to grow
Long-Term Global Oil Demand and WTI Price
World Liquids Supply & Demand
-2
0
2
4
6
80
85
90
95
100
MMb/d
MMb/d
Stock Change (right axis)
World Supply (left axis)
World Demand (left axis)
WTI Price
(right axis)
Forecast
39
Energy Marketing
>$US50/bbl WTI Expected by End 2017
$0
$10
$20
$30
$40
$50
$60
-2
0
2
4
6
Nominal$US/bbl
MMb/d
Stock Change
WoodMackenzie WTI Forecast
Consensus Economics Avg. Forecast
Stock Change
(left axis)
Forecast
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
4
5
6
7
8
9
10
#ofOilRigs
MMb/d
U.S. Oil Rig Count
(right axis)
U.S. Oil Production
(left axis)
Rebalancing of supply and demand expected
to raise WTI to >US$50/bbl by Q4/17
• 2016/17 world liquids demand expected to rise by
2.7 MM b/d while supply decreases by 0.9 MM b/d
• WTI price forecast for Q4/2017:
• WoodMackenzie: US$59/bbl
• Consensus Economics Avg.: US$52/bbl
Lower investment leads to lower supply
growth
• U.S. oil rig count fell from a peak of 1,609 in Oct/14 to
a low of 392 in March/16 (76% drop).
• U.S. oil production peaked in June/15 and expected
to decline by 0.6 MM b/d in 2016/17
• Global oil capital expenditures dropped from
US$540B in 2014 to US$400B in 2015, and an
expected US$330B in 2016 (40% drop in 2 years)
Source: Wood Mackenzie February 2016; Consensus Economics February 2016
WTI Price
(right axis)
Source: EIA, Baker Hughes
World Liquids Balance and WTI Price Outlook
U.S. Oil Production and Oil Rig Count
40
Energy Marketing
Higher Prices Required
For New Production Development
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
50
60
70
80
90
100
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
NominalUS$/bbl
MMb/d
Actual WoodMac IEA
Actual WoodMac McD/Spr/GLJ
Source: IEA World Energy Outlook, December 2015
Demand growth continues and prices recover
to ensure supply meets demand
• Oil demand growth to continue
− Wood Mackenzie and IEA forecasting similar demand
growth, increasing ~8 MM b/d by 2030 (0.7% growth/yr)
• Higher long-term prices required for new production
development
− 2018 to 2030 avg. WTI price forecasts (2016 dollars):
• Wood Mackenzie (Nov/15): US$80/bbl
• McDaniel/Sproule/GLJ Avg.: US$73/bbl
36 MM b/d of new oil production required to
meet demand growth & production declines
• 28 MM b/d of declines plus 8 MM b/d of oil demand
growth implying 36 MM b/d of new production by
2030
• Key contributors to production growth (MM b/d):
• Iraq 3.0, Brazil 2.3, Canada 1.5, Saudi Arabia 1.5, Iran
1.4
• US production peaks around 2022; 2030 US production
similar to 2014 levels
Oil Demand
(left axis)
WTI Price
(right axis)
0
20
40
60
80
100
120
MMb/d
Forecast
Oil Demand and WTI Price Outlook
World Oil Supply Sources
41
• US/Canadian heavy refining
capacity exceeds Canadian
heavy crude oil production
• US Gulf Coast provides
largest market for growth
• TMX and Energy East
pipelines will provide access
to deep water ports
Energy Marketing
Heavy Oil Refining Capacity Available
Estimated Disposition and Refining Capacity
for Canadian Heavy (kbbls/day)
0
600
1200
1800
2014 2019
Western Canada
0
600
1200
1800
2014 2019
US Rockies
0
600
1200
1800
2014 2019
Eastern US/Canada0
600
1200
1800
2014 2019
US West Coast
0
600
1200
1800
2014 2019
US Midwest
0
600
1200
1800
2014 2019
US Gulf Coast
0
1000
2000
3000
4000
2014 2019
kbbls/day
US/Canada Heavy Crude Refining Capacity
Additional
Capacity
Available for
Canadian Heavy
Canadian Heavy
Usage
Access to deep water ports will add market capacity and diversification
Source: CAPP, EIA, Lee & Doma Energy Group
Additional Capacity Available
for Canadian Heavy
Canadian Heavy Usage
42
Energy Marketing
Sufficient Western Canadian
Takeaway Capacity Expected
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
kbbls/day
Western Canada Crude Supply Forecast Pipeline & Local Refining Capacity
Pipeline, Local Refining & Rail Capacity
TMX & Energy East
Enbridge Expansions
Western Canadian Supply and Takeaway Capacity
Source: CAPP, Lee & Doma Energy Group
Fort Hills’ First Oil
Sufficient takeaway capacity
expected for forecast growth
• 2011–2014
− Rapid production growth resulted in
takeaway capacity challenges
− Industry added significant pipeline and
rail capacity during this time
• 2015–2030
− Existing pipeline capacity, new pipelines
(TMX and Energy East) and existing rail
capacity expected to provide sufficient
takeaway capacity
43
WTI - WCS Annual Average Price Differentials
Sufficient takeaway capacity
results in current WTI-WCS
differentials
• 2011–2014
− Takeaway capacity challenges drive
wider WTI - WCS differentials, averaging
~US$25/bbl in 2013
• 2015–2030
− Sufficient takeaway capacity developed
and WTI - WCS differential narrowed to
~US$14/bbl in 2015
− Current differentials expected to persist
with sufficient takeaway capacity
available
$14.19
$17.09
$21.01
$25.12
$19.63
$13.69 $14.00
$0
$5
$10
$15
$20
$25
$30
2010 2011 2012 2013 2014 2015 2018-2030
Real
Forecast*
NominalUS$/bbl
* In 2016 real US dollars. Assumes US$75/bbl WTI.
Source: GLJ (historicals), Lee & Doma Energy Group (forecast)
Average real price differential of US$14/bbl expected 2018-2030
Energy Marketing
Current Differentials Expected to Persist
44
45
Energy Marketing
Market Rebalance Expected in 2017
• 36 MM b/d of new oil production required by 2030
• Higher prices required for new production development
• US/Canadian heavy refining capacity can accommodate
growing Canadian heavy production
• Sufficient Western Canadian takeaway capacity expected
Marketing
Agenda
Overview
Steelmaking Coal
Base Metals
Energy
Summary
46
Current cycle is extreme from a historical perspective
Coal market slowly rebalancing
Minor copper surplus at risk
Structural deficits developing in zinc
Oil market rebalance and WTI >US$50/bbl expected by end 2017
Good long-term fundamentals
Marketing
Improving Commodity Markets
47
Energy Projects
March 30, 2016
Ray Reipas, Senior Vice President, Energy
Tim Watson, Senior Vice President, Project Development
Energy Projects
Agenda
Energy Business
Fort Hills
3
Energy Business
Building A Valuable Energy Business
4
Market strategy and market access are progressing
Fort Hills economics are robust
Significant free cash flow over 50 year project life
at expected long term oil price
Energy Business
Progress in Implementing Our
Diversified Marketing Strategy
Market Access Options for Teck’s 50 kbbls/day
of Fort Hills Diluted Bitumen Blend
Cushing
Flanagan
Houston
Kitimat
Edmonton
US
Gulf Coast
Europe
Asia
TransCanada Energy East (Proposed, Contract Carriage)
Enbridge Northern Gateway (Proposed, Contract Carriage)
TransCanada Keystone/MarketLink (Existing, Contract Carriage)
Enbridge Flanagan South (Existing, Contract Carriage)
Vancouver
TransMountain Pipeline Expansion (Proposed, Contract Carriage)
Asia
Agreements for pipelines to Hardisty in place
Agreement for Hardisty product storage in place
Monitoring production vs market access balance
Developing a portfolio of pipeline capacity
opportunities, to enable access to diversified
markets
Evaluating opportunities in the secondary market
for pipeline capacity
Developing a diversified customer base
Hardisty
Chicago
Sarnia
Patoka
Superior
Guernsey
Montreal
Saint John
Enbridge Mainline System (Existing, Common Carriage)
Spectra Express (Existing, Contract Carriage)
Teck can enter into long-term
take or pay contracts
5
East Tank Farm
Blending w/Condensate
Energy Business
Committed Logistics Solutions in Alberta
Pipeline/Terminal Operator
Pipeline
Capacity
(kbpd)
Teck
Capacity
(kbpd)
Status
Northern Courier Hot
Bitumen
TransCanada 202 40.4 Construction on schedule
East Tank Farm -
Blending
Suncor 292 58.4
Modules constructed and on site; tank construction
ahead of schedule
Wood Buffalo Blend
Pipeline
Enbridge 550 65.3 In service
Wood Buffalo Extension Enbridge 550 65.3
Pipeline 80% complete, beginning pump station
construction
Norlite Diluent Pipeline Enbridge 130 18.0 Construction on schedule: In service May 2017
Hardisty Blend Tankage Gibsons 425 kbbls 425 kbbls Construction ahead of schedule: In service Q4 2016
Wood Buffalo
Extension
Norlite
Diluent Pipeline
Cheecham
Terminal
Hardisty
Terminal
Wood Buffalo
Pipeline
Athabasca
Pipeline
Edmonton
Terminal
Fort Hills
Mine Terminal
Northern Courier
Hot Bitumen Pipeline
Teck
Options
Export Pipeline
Rail
Local Market
Pipeline Legend
Bitumen
Blend
Diluent
Existing
New
Kirby Athabasca
Twin Pipeline
6
Source: Suncor
Energy Business
Northern Courier Bitumen Pipeline Progress
Q1 2016 Q1 2016
Pipeline start at the Fort Hills tank farmPipeline construction
7
Source: Suncor
Q1 2016
Energy Business
East Tank Farm Progress
8
Source: Teck
Q1 2016 Q1 2016
Energy Business
Wood Buffalo Extension Pipeline Progress
9
Source: Teck
Energy Business
Norlite Diluent Pipeline Progress
Q1 2016 Q1 2016
10
Source: Gibson’s
Q1 2016
Q1 2016
Energy Business
Gibson’s Tank at Hardisty Progress
11
Source: Teck
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. Sanction capex 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 pre and post capital recovery periods.
5. Post-payout estimated net margin includes C$1.50 export market premium.
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
US$60 WTI
& $1.30
USD/CAD
US$75 WTI
& $1.20
USD/CAD
Pre-Payout Post-Payout
Teck’s share of annual production
(36,000 bpd)
13 Mbpa 13 Mbpa
Estimated netback2 ~$40/bbl ~$55.50/bbl
Estimated operating margin2 ~$15/bbl ~$30.50/bbl
Alberta oil royalty2 ~$1.50/bbl ~$10/bbl
Estimated net margin2,5 ~$13.50/bbl ~$22/bbl
Annual pre-tax cash flow ~$180 M ~$290 M
Teck’s share of sanction capex3 ~$2,940 M ~$2,940 M
Free cash flow yield4 ~6% ~10%
Energy Business
Fort Hills Project Economics Are Robust1
0%
5%
10%
15%
20%
25%
$40 $50 $60 $70 $80 $90 $100 $110 $120
FreeCashFlowYield
WTI $/bbl
Post-Payout
@$1.20 USD/CAD
Pre-Payout
@$1.30 USD/CAD
12
Energy Business
Building A Valuable Energy Business
13
Market strategy and market access are progressing
Fort Hills economics are robust
Significant free cash flow over 50 year project life
at expected long term oil price
Energy Projects
Agenda
Energy Business
Fort Hills
14
15
On schedule, with construction >53% complete1
On budget, with significant contingency remaining
Commissioning starting in 15 months
1. As at February 29, 2016.
Photo Source: Suncor
Fort Hills
Fort Hills Project On Track
>95% Engineering complete
approximate as at February 29, 2016
>53% Construction complete
approximate as at February 29, 2016
Project Progress
construction has surpassed the midway
point and the project continues to track
positively within schedule expectations
Global fabrication, module
and logistics program
performing well to date, delivering
positive results
All critical schedule milestones
have been achieved to date
supporting target 2017 first oil
Safety and Environment
continued positive performance
Construction hours
2 reportable environmental; 0 regulatory non-compliance
~28M
Recordable injury frequency
per 200,000 exposure hours
0.45-0.55
Fort Hills
Project Status & Progress
16
Teck’s Sanction Capital2
~$2.94
billion
Teck’s Estimated 2016 Spend
$960
million
Teck’s Remaining Capital3
~$1.2
billion
Operating & Sustaining Costs4
$25-28
per barrel of bitumen
Sustaining Capital4
$3-5
per barrel of bitumen
Teck’s Share of Production
13,000,000
bitumen barrels per year
1. All costs and capital are based on Suncor’s estimates.
2. Sanction 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. Includes earn-in of $240M.
3. As of February 10, 2016.
4. Sustaining capital is included in operating & sustaining costs.
Mine life: 50 years
Fort Hills
Key Numbers1
17
Fort Hills
Bitumen Production & Blend Supply
0
10
20
30
40
50
60
0
10
20
30
40
50
60
Kbbls/day
Kbbls/day
Estimated Fort Hills Production1 -
First 36 Months
Bitumen Diluent Available Blend
Fort Hills
• Teck Share: 20%, or 36 kbpd of bitumen
• Start-up: December 2017
• 90% production after 12 months
• Production varies based on operating
conditions and throughput
Diluent Blending Required
• Diluent required to meet pipeline viscosity
specifications
• Typical barrel of blended bitumen: 75%
bitumen and 25% diluent
• Blend requirements depend on bitumen
density, diluent quality and seasonality
Total blend for Teck: 45-50 kbpd
1. Teck’s share of production.18
Fort Hills
Site Overview
Source: Suncor
Q1 2016
Fort Hills
Ore Preparation Plant
MSE Wall & Crusher
Q1 2015
Source: Suncor19
Fort Hills
Ore Preparation Plant
Source: Suncor
Q1 2016
Fort Hills
Ore Preparation Plant
One of Two Crusher Stations
Q1 2016
Source: Suncor20
Fort Hills
Ore Preparation Plant
One of Two Crusher Stations
Source: Suncor
Q1 2016
Q1 2016
Fort Hills
Ore Preparation Plant
Surge Bin, Conveyors, Rotary Breaker Building
Source: Suncor
Q2 2015
21
Fort Hills
Extraction & Tailings
Source: Suncor
Q1 2016
Fort Hills
Extraction & Tailings
Primary Separation Cells, Flotation & Tailings Buildings
Q1 2015
Source: Suncor22
Fort Hills
Extraction & Tailings
Primary Separation Cells, Flotation & Tailings Buildings
Q1 2016
Source: Suncor23
Fort Hills
Secondary Extraction
Q2 2015
Q4 2015
Source: Suncor24
Fort Hills
Secondary Extraction
Source: Suncor
Q1 2016
Fort Hills
Secondary Extraction
Source: Suncor
Q1 2016
25
Fort Hills
Secondary Extraction
Solvent Bullets Installed
Q1 2016
Q1 2016
Source: Suncor26
Fort Hills
River Water Intake
Coffer Dam
Q2 2014 Q4 2015
Source: Suncor27
Fort Hills
River Water Intake
Mechanical Installation of Pumphouse
Q1 2016
Source: Suncor28
Fort Hills
Utilities & Offsites
Source: Suncor
Q1 2016
Fort Hills
Utilities & Offsites
Boiler Installation
Q1 2016
Source: Suncor29
Fort Hills
Utilities & Offsites
Storage Tanks
Q1 2016
Source: Suncor30
On schedule, with construction >53% complete1
On budget, with significant contingency remaining
Commissioning starting in 15 months
1. As at February 29, 2016.
Photo Source: Suncor
Fort Hills
Fort Hills Project On Track
31
Sustainability
March 30, 2016
Marcia Smith, Senior Vice President, Sustainability & External Affairs
• Six focus areas
• Community
• Biodiversity
• Our People
• Water
• Air
• Energy and Climate Change
• Achieved all 2015 goals
• Set new short-term 2020
goals
• Working towards long-term
2030 goals
Sustainability
Our Sustainability Strategy
3
Sustainability
Recent Highlights on Progress in Key Areas
Water
Our 1st water treatment facility in the Elk Valley has begun full operation & is now achieving
100% of its selenium reduction target
Biodiversity
Continued to support biodiversity initiatives including successful caribou penning project (16
calves born in protective shelter over last 2 years) and advancing land conservation initiatives
with Indigenous communities, ENGOs and other partners
Indigenous Communities
We now have 25 active agreements with Indigenous communities in areas we operate;
recently released Indigenous Peoples Policy including commitment to work towards achieving
Free, Prior and Informed Consent
Tailings Management
Multi-layered, industry best practice approach, including: surveillance technology, regular staff
inspections, annual safety inspections, internal audits, third-party reviews, Independent
Tailings Review Boards
4
Adoption of Paris Agreement
on Climate Change
• Targets an increase of no more
than 1.5°C
• 195 countries under one plan
• A framework for global action
to address climate change
• Teck is a signatory to the Paris
Pledge in support of the Paris
Agreement
Sustainability
Climate Change Context
5
• In British Columbia, Elk Valley
Steelmaking coal mines,
Highland Valley Copper mine,
Trail Operations smelter
charged at $30/t of CO2
• In Alberta, $20/t of CO2
charged over specified target
• Movement towards global
climate action will level playing
field
Sustainability
Climate Change Teck Context
6
Sustainability
Climate Change and Mining
Potential Implications of Low Carbon Economy
+_
Effect on commodity demand
• Material substitution
• Increased metals recycling
• Electric technology /
Renewable energy
• High density housing &
infrastructure
• Penalties for lower-quality
steelmaking coal
7
• Continued long term growth in
demand for core commodities
• Factors for success in a
carbon-constrained world are
likely to be:
• Commodity diversification
• Efficient, low-cost
production
• Low carbon footprint
• Our progress towards these
minimizes risk of stranded
assets
Sustainability
Climate Change and Mining
8
Sustainability
Carbon Reduction: Our Performance
Source: ICMM Report “The cost of carbon pricing”, Teck
GHG Emissions Intensity Ranges among ICMM member companies:
Teck
Teck
Copper
Coal
Over 200,000 tonnes of annual GHG reductions have been achieved
at Teck operations since 2011
Teck products among lowest carbon intensity in the world
9
Sustainability
Carbon Reduction: Our Long Term Strategy
Our strategy:
• Improve energy efficiency
• Implement low carbon
technologies
• Expand alternative energy
use
2030 GHG reduction target:
• 450,000 tonnes
Implementing specific GHG
reduction initiatives, e.g.:
• Operational efficiency
• LNG trucks
• Mine design
0
5
10
15
20
25
30
35
2011 2012 2013 2014 2015
Wintering Hills (Wind)
Waneta Expansion Plant (Hydro)
QB (Solar)
Teck Alternative Energy Implementation
(MW average annual output)
2015 goal
10
Sustainability
Summary
In the low carbon economy of the future,
successful miners will be:
 Diversified
 Low cost
 Low carbon
11
Sustainability
Questions?
Best 50 Corporate
Citizens in Canada
2015
On the Dow Jones
Sustainability World Index
six years in a row
One of top 100 most
sustainable companies
in the world and one of
Canada’s most
sustainable companies
Top 50 Socially
Responsible
Corporations in
Canada
Listed on FTSE4Good
Index in 2015
12
Investor and Analyst Day
March 30, 2016

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Teck’s Investor and Analyst Day, March 2016

  • 1. Investor and Analyst Day March 30, 2016
  • 2. Forward Looking Information Both these slides that you will be presented today and the accompanying oral presentations 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). 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 Teck’s costs, production, expenditures, financial projections and guidance, production targets and guidance and those other statements identified in the slides titled “Forward Looking Information” in each of the individual presentations. The “Forward Looking Information” slide in each individual presentation is incorporated by reference and please refer to each of those slides for further information. 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 our products, the timing of receipt of regulatory and governmental approvals for Teck’s expansions, Teck’s costs of production and production and productivity levels, as well as those of its competitors, market competition, the accuracy of Teck’s reserve and resources estimates and the geological, operational and price assumptions on which these are based, tax benefits, the resolution of environmental and other proceedings, our ongoing relations with our employees and partners and joint venturers, performance by customers and counterparties of their contractual obligations, and the future operational and financial performance of the company generally. Each of the slides titled “Forward Looking Information” in the individual presentations describe additional assumptions for the forward-looking statements included in that presentation. 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 interest or currency exchange rates, inaccurate geological assumptions (including with respect to the size, grade and recoverability of reserves and resources), 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), decisions made by our partners or co-venturers, social unrest, failure of suppliers to meet their contractual commitments and changes in general economic conditions or conditions in the financial markets. Each of the slides titled “Forward Looking Information” in the individual presentations describe events and uncertainties that could cause actual results to differ materially. Certain of these risks and the risks described in the slides titled “Forward Looking Information” in each of the individual presentations are described in more detail in Teck’s annual information form available under Teck’s corporate profile at www.sedar.com and 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. Overview and Strategy March 30, 2016 Don Lindsay, President & Chief Executive Officer
  • 4. 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 a core value Implementing a comprehensive sustainability strategy Overview and Strategy Canada’s Largest Diversified Resources Company 3
  • 5. Overview and Strategy Senior Management Planned Retirements Ray Reipas Senior Vice President, Energy Tim Watson Senior Vice President, Project Development Rob Scott Senior Vice President, Zinc Ian Kilgour Executive Vice President & Chief Operating Officer 4
  • 6. Overview and Strategy Senior Management Update • Continued strong leadership • Closer reporting relationship between GMs and senior executives • Further aligned to current business environment Dale Andres SVP, Base Metals Robin Sheremeta SVP, Coal Andrew Stonkus SVP, Sales & Marketing Copper Operations Zinc Operations Coal Operations Energy Sales & Marketing Base Metals Sales & Marketing Coal Sales & Marketing Alex Christopher SVP, Exploration, Projects & Technical Services Exploration Engineering & Related Activities 5
  • 7. Diversification to expand opportunity set Long life assets Low half of the cost curve Appropriate scale Low risk jurisdictions Overview and Strategy Consistent Long-Term Strategy 6
  • 8. • Based in Vancouver, Canada, with operations in the Americas • Strategy focused on long life assets in stable jurisdictions • Sustainability: Key to managing risks and developing opportunities Strong Resource Position1 With Sustainable Long-Life Assets Coal Resources ~100 years Copper Resources ~30 years Zinc Resources ~15 years Energy Resources ~50 years Overview and Strategy Attractive Portfolio of Long-Life Assets 1. Reserve and resource life estimates refer to the mine life of the longest lived resource in the relevant commodity assuming production at planned rates and in some cases development of as yet undeveloped projects. See the reserve and resource disclosure in our most recent Annual Information Form, available on SEDAR and EDGAR, for additional detail regarding underlying assumptions. 7
  • 9. Overview and Strategy Plan to Navigate an Extended Low Price Environment & Emerge Stronger Strength of our diversified portfolio of long-life assets & resources Strong operating execution Target for positive cash flow from core business Finish building Fort Hills Protect our strong financial position 8
  • 10. Overview and Strategy Core Business Free Cash Flow vs. Development Project Cash Flow Cost management delivering improvements in Free Cash Flow2, despite weakening prices Target for positive cash flow Funding from internal sources in 2016; Current cash balance > remaining capital1 Fort Hills Development Project Core Business Potential future free cash flow Teck’s total share of capital $2.94B Remaining capital (as of February 10th, 2016) $1.2 B Teck cash balance (as of February 10th, 2016) ~$1.8 B (100) - 100 200 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 C$Millions Free Cash Flow, Before Fort Hills Capex 1. As of February 10, 2016. Based on Suncor’s planned project spending. Sanction 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. 2. Free Cash Flow is Net Cash from Operations, before changes in Working Capital, less Investing activity excluding Fort Hills capital expenditures, not including proceeds from sales of investments, less interest paid and distributions to minority interests. 9
  • 11. Overview and Strategy Near-Term Priorities 10 1. Assumes current commodity prices and exchange rates, Teck’s 2016 guidance for production, costs and capital expenditures, existing US$ debt levels and no unusual transactions. • Target for positive cash flow from core business • Fund Fort Hills from internal sources in 2016 • Protect our strong financial position − Target for US$3B credit facility to remain undrawn in 2016 − Expect year-end cash balance of >$500M1 − Evaluating opportunities to further strengthen liquidity
  • 12. Overview and Strategy Options to Strengthen Liquidity • Further cost & capital reductions • Asset value realization opportunities − Infrastructure assets − Non-operating assets − Additional precious metal streaming transactions − Minority interests in assets − Royalties on future cash flows 11
  • 13. Finance March 30, 2016 Ron Millos, Senior Vice President, Finance & Chief Financial Officer
  • 14. Finance Agenda 2015 Overview Balance Sheet & Liquidity 2016 Guidance & Overview Summary 3
  • 15. Diversified gross profit Focus on costs has delivered improvements in free cash flow Strong balance sheet and liquidity Extended debt maturities consistent with long-life assets Well positioned to finance capital spending plans 4 Finance Navigating Difficult Market Conditions
  • 16. Guidance Results Steelmaking Coal Production1 25-26 Mt  25.3 Mt Site costs C$49-53/t  C$45/t Transportation costs C$37-40/t  C$36/t Combined costs2 C$86-93 /t  C$83/t US$64/t Lower unit costs at all mines Copper Production 340-360 kt  358 kt Record mill throughput at Antamina Cash unit costs3 US$1.45-1.55 /lb  US$1.45/lb Lower unit costs at all mines Zinc Metal in concentrate production4 635-665 kt  658 kt Refined production 280–290 kt  307 kt Record production at Trail Capital Expenditures5 $2.3B  $2.2B Lower capex Finance Solid Delivery Against 2015 Guidance 1. Reflects mid-year revision for temporary shutdowns. 2. Combined coal costs are site costs, inventory adjustments and transportation costs. 3. Net of by-product credits. 4. Including co-product zinc production from our copper business unit. 5. Including capitalized stripping. 5
  • 17. 0% 25% 50% 75% 100% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Coal Copper Zinc Gross Profit Before Depreciation and Amortization Finance Diversified Gross Profit (before depreciation & amortization) 6
  • 18. Teck has good leverage to stronger zinc and copper markets, and benefits from the weaker Canadian dollar Finance The Value of Our Diversified Business Model Cash Operating Profit 2015 Production Guidance1 Unit of Change Estimated Profit 2 Estimated EBITDA2 $C/$US C$0.01 $22M /$.01∆ $34M /$.01∆ Coal 25.5 Mt US$1/tonne $23M /$1∆ $35M /$1∆ Copper 312 kt US$0.01/lb $6M /$.01∆ $9M /$.01∆ Zinc 940 kt US$0.01/lb $9M /$.01∆ $14M /$.01∆ 2016 Leverage to Commodities & FX 1. Based on mid-point of 2016 guidance ranges. Zinc includes 645 kt of zinc in concentrate and 295 kt of refined zinc. 2. Based on budgeted commodity prices and a 1.40 CAD/USD exchange rate. The effect on our profit and EBITDA will vary with commodity price and exchange rate movements, and sales volumes. Coal ~30% Copper 35% Zinc 35% Base Metals ~70% 7
  • 19. Finance Core Business Free Cash Flow1 Free Cash Flow, Before Fort Hills Capital (100) - 100 200 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 C$Millions Cost management delivered improvements in Free Cash Flow, despite a weakening price environment 1. Free Cash Flow is Net Cash from Operations, before changes in Working Capital, less Investing activity excluding Fort Hills capital expenditures, not including proceeds from sales of investments, less interest paid and distributions to minority interests. 8
  • 20. Finance Agenda 2015 Overview Balance Sheet & Liquidity 2016 Guidance & Overview Summary 9
  • 21. 0 500 1000 1500 2000 2500 Original Guidance for December 31,2015 Lower Prices & FX vs. Start of Year Forecast Repayed Debt From Cash Cost Management Program Cut Capex Reduced the Dividend Proceeds from Sale of Investments & Other Assets Incl. Two Precious Metal Streaming Transactions Cash Balance on December 31, 2015 Cash Balance Improvement in 2015, Relative to Original Guidance Finance Strong Cash Balance $Millions $1,000 $1,887 $208 $100 $1,100 $259 $406 $144 Reflects management actions to conserve cash 10
  • 22. $0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 $2,000 $2,250 $2,500 $2,750 $3,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 US$M 11 • No debt due until 2017 − Weighted average maturity ~14 years − Weighted average coupon (interest rate) ~4.8% − Average maturity <US$600M • Debt to debt-plus-equity ratio 37%1 2017 Q1: US$300M Q3: US$300M Repaid US$300M in notes in Q4 2015 As at December 31, 2015. Finance Long-Dated Debt Maturity Profile
  • 23. Amount (M) Commitment Maturity Letters of Credit Limit ($M) Letters of Credit Drawn ($M) Total Available ($M) US$3,000 Committed July 2020 US$1,000 Undrawn US$3,000 US$1,200 Committed June 2017 None US$740 US$460 Expect to keep available for letter of credit requirements ~C$1,700 Uncommitted n/a n/a ~C$1,500 ~C$200 • Unsecured; any borrowings rank pari passu with outstanding public notes • Only financial covenant is debt to debt-plus-equity of <50%; excludes issued letters of credit • Availability not affected by commodity price changes or credit rating actions • Available for general corporate purposes Ample liquidity for remaining Fort Hills capital expenditure of ~C$1.2B Current cash balance of C$1.5B (3/4/16) and substantial credit facilities1: 1. As of December 31, 2015. Assumes a 1.38 CAD/USD exchange rate. Finance Strong Liquidity 12
  • 24. Finance US$1.2B Committed Credit Facility US$740M drawn for letters of credit at Dec 31st • US$672M for power purchase agreements for QB2 − Requirements decrease: • If/when QB2 is sanctioned and certain project milestones are reached − Requirements go away: • If/when QB2 reaches commercial production, regardless of credit rating; or • When Teck regains an investment grade credit rating − Actively reviewing options to onsell power • C$93M for transport service agreements related to Fort Hills − If all counterparties request financial assurances, aggregate requirement could increase up to C$550M by year end 2016 and C$650M by year end 2017 − Aggregate maximum requirement decreases to C$450M post the relevant in-service date (late 2017 and beyond) − Requirements go away when Teck regains an investment grade credit rating 13
  • 25. Finance C$1.7B Uncommitted Credit Facilities • C$1.5B drawn for letters of credit, mostly for reclamation obligations − Export Development Canada facility renewed annually − Other facilities are uncommitted • Assessing surety bonds to reduce bank exposure Canadian Banks EDC Others Uncommitted credit facilities are with relationship banks that have been supportive of Teck through the industry cycles 14
  • 26. • Teck has no secured debt • Ability to grant security: − On certain specified properties (HVC, Red Dog, Elkview, Fording) • Capped at 10% CNTA ~ C$3.2B • Subject to partner consents where applicable − On all non-specified properties • No restrictions − Subsidiaries can provide guarantees • If certain subsidiaries provide total guarantees in excess of US$250M, the same guarantees would need to be provided to lenders under both committed credit facilities Finance Ability to Grant Security 15
  • 27. 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Moody's S&P Fitch DBRS London Metal Exchange Index (Right Axis) BBB/Baa2 BBB-/Baa3 BB+/Ba1 BB/Ba2 BB-/Ba3 BBB+/Baa1 B+/B1 B/B2 B-/B3 A+/A1 A/A2 A-/A3 InvestmentGradeNon-InvestmentGrade Teck Credit Ratings vs. London Metal Exchange Index Finance Credit Ratings Reflect Commodity Prices 16
  • 28. Finance Agenda 2015 Overview Balance Sheet & Liquidity 2016 Guidance Summary 17
  • 29. 2015 Results 2016 Guidance Steelmaking Coal Production 25.3 Mt 25-26 Mt Site costs $45/t $45-49/t Capitalized stripping $16/t $11/t1 Transportation costs $36/t $35-37/t Total cash costs2 $99/t (US$76/t) $91-97/t (US$65-69/t) Copper Production 358 kt 305-320 kt C1 unit costs3 US$1.45/lb US$1.50-1.60/lb Capitalized stripping US$0.21/lb US$0.21/lb1 Total cash costs4 US$1.66/lb US$1.71-1.81/lb Zinc Metal in concentrate production5 658 kt 630-665 kt Refined production 307 kt 290-300 kt Finance 2016 Production & Site Cost Guidance 1. Approximate, based on capitalized stripping guidance and mid-point of production guidance range. 2. Steelmaking coal unit cost of sales include site costs, inventory adjustments and transport costs. Total cash costs are unit cost of sales plus capitalized stripping. 3. Net of by-product credits. 4. Copper total cash costs include cash C1 unit costs (after by-product margins) and capitalized stripping. 5. Including co-product zinc production from our copper business unit. 18
  • 30. $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 2012 2013 2014 2015 2016 Guidance New Mine Development Major Enhancements Sustaining Capital Capitalized Stripping $M Finance Achieved Capital Spending Reductions Total Capital Expenditures 2012-2016F 19
  • 31. Finance Agenda 2015 Overview Balance Sheet & Liquidity 2016 Guidance & Overview Summary 20
  • 32. • Core business to remain cash flow positive1 • All operations to generate positive cash flow2 • Achieve sustainable cost savings and capital reductions / deferrals • C$500M minimum cash balance at year end, with no new debt • Maintain sufficient liquidity Finance 2016 Financial Objectives 1. Core business excludes the Fort Hills development project. 2. After sustaining capital and capitalized stripping. 21
  • 33. Operations March 30, 2016 Ian Kilgour, Executive Vice President & Chief Operating Officer Robin Sheremeta, Vice President, Coal Operations Dale Andres, Senior Vice President, Copper Rob Scott, Senior Vice President, Zinc
  • 35. Staying true to Teck’s values Delivering results Building operational excellence Disciplined capital spending Focused growth pipeline 4 Operations Meeting the Challenge
  • 36. Operations Staying True to Teck’s Values Safety Sustainability Integrity Respect Excellence Courage 5
  • 37. Operations Safety is a Core Value Courageous Safety Leadership Visible Felt Leadership Frontline Leadership Development Incident Investigation Health & Safety Benchmarking Control Effectiveness Reviews Risk Management Standards & Best Practices Technology Enablers 6
  • 38. Operations Managing High Potential Safety Risks Focus on High Potential Risk Controls • Risk identification – serious & fatal injury potential • Reviewing control strategies & effectiveness • Reducing high potential incidents High Potential Incident Performance 0.0 0.5 1.0 1.5 2010 2011 2012 2013 2014 2015 PFO SHPI HPI Per200,000hours Work Team Risk Assessments • Improved risk ownership at a team level • Working on identifying solutions together • Contributing to our culture of safety New fall protection tower at Trail 7
  • 39. Operations Sustainability Incorporated in Operations Sustainable practices are the “right thing to do” and have a solid business case Formalizing our commitment to working with Indigenous Peoples Enhancing air quality in areas near our operations Reducing GHG remissions and energy costs through haul truck efficiency Strengthening diversity at operations 8
  • 40. Operations LNG Haul Trucks – Status Update 9 • Six pilot trucks have been converted to “dual-fuel” - LNG and diesel (four 830E’s, two 930E’s); first in Canada • Current substitution rates achieved: 25 – 40% (target >35%) • Pilot objective is to confirm the business case (cost and sustainability) for a Teck wide application; focus is on safety, sustainability and operability • Establishing reliability of the LNG systems • Optimizing LNG substitution rates and monitoring GHG emissions 9
  • 41. 0.00 0.50 1.00 1.50 2.00 2.50 2012 2013 2014 2015 2016F* Before by-product credits After by-product credits US$/lb 0 50 100 150 200 250 300 350 400 2012 2013 2014 2015 US$pertonneofproduction 0 10 20 30 40 50 60 70 80 90 2012 2013 2014 2015 2016F* Operating Capitalized Stripping C$/t Operations Delivering Results in Unit Cost Management Copper Cash Costs3 Achieved significant unit cost reductions, and expect further reductions in 2016 Steelmaking Coal Total Site Costs1 2 1. Total site costs are site costs, inventory write-downs and capitalized stripping, excluding depreciation. 2. Operating costs include site costs and inventory write-downs. 3. By-product credits reduced cash costs by US$0.19/lb in 2015. Assumes US$0.19/lb in 2016. 4. Zinc cash costs are Red Dog site costs per tonne of combined zinc and lead production. * 2016F based on mid-point of guidance range. Zinc Cash Costs4 10
  • 42. - $50 $100 $150 $200 $250 $300 Other ($1M) Productivity - Utilization (e.g Op Delays) ($5M) Components (life/cost) ($7M) Freight savings ($7M) Over time reduction ($12M) Productivity - Enablers, multiple levers ($16M) Plan optimization ($21M) Pricing Improvements ($20M) Equipment Rental Savings ($20M) Mining Productivity - Availability ($23M) Admin savings ($55M) Idling & Energy Savings ($64M) Consumables ($64M) Employee Cost Reduction ($134M) Contractors/Consultants Reduction ($160M) Mining Productivity - Throughput ($215M) 2013 Initiatives 2014 Initiatives 2015 Initiatives CAD$ millions (all USD savings translated using CAD/USD rate of 1.384) ~$820M of Annualized Savings in 2015, from Major Cost Reduction Initiatives in 2013-2015 Annualized 2015 Savings from Major Cost Reduction Program Initiatives Targeting an additional $300M in operating cost reductions in 2016; A total of >$1B of annualized savings identified and included in 2016 plan Operations Embedding Sustainable, Ongoing Operating Cost Reductions in the Organization 11
  • 43. Planning Blasting Loading and Hauling Crushing Stockpiling Geology and Metallurgy Grinding Optimizing value across the production process to breakdown silos and drive continuous improvement Operations One Teck: Mine to Mill Optimization Increased Margin Lower Unit Costs More Product Sharing Best Practices 12
  • 44. Operations Disciplined Project Execution Our project delivery framework strengthens our ability to deliver projects on time and on budget Highland Valley Crusher Relocation Project Teck Project Delivery Framework • Significant progress in permitting practices • Tight alignment between permitting and engineering • Integrating sustainability into project framework Pend Oreille Restart West Line Creek Water Treatment Plant 13
  • 45. Robust People Development Systems are Key • Performance management systems that align organizational goals and objectives with personal goals • Company-wide development programs for all levels of supervision and management, including operational based leadership development - To address the demand on increasing leadership competence to drive business results • Internal career opportunities - Ensuring ‘the best people in the right jobs’ at the right time 14 Operations People Achieve Excellence We attract, engage and develop people whose passion, skills and motivation lead our journey in safety, sustainability and productivity Program Began # of Cohorts # of Participants Leading for the Future (LFF) 2011 40 844 ~70% of eligible population Leading for Excellence (LFX) 2011 33 462 ~70% of eligible population; Includes 30 senior leaders The Leadership Challenge (LC) 2014 16 271 ~15% of eligible population
  • 46. 0 200 400 600 800 1000 1200 1400 2010 2011 2012 2013 2014 2015 2016F $M Steelmaking Coal Copper Zinc Corporate 15 Operations Disciplined Capital Allocation Reductions in sustaining capex have been possible in the medium term, due to significant past investments Growth Capital1Sustaining Capital 1. Growth capital is major enhancement capital and new mine development, including Fort Hills. 0 200 400 600 800 1000 1200 1400 2010 2011 2012 2013 2014 2015 2016F $M Steelmaking Coal Copper Zinc Energy
  • 47. Coal Well established with capital efficient growth options Strong platform combined with diverse portfolio of options allows us to be selective in terms of commodity and timing Completed In Construction Pre-Sanction Copper Strong platform with substantial growth options Zinc World-class resource combined with integrated assets Energy Building a new business through partnership Trail #1 Acid Plant HVC Mill Optimization Pend Oreille Restart Fort Hills Elk Valley Brownfield (4 Mpta) Operations Staged Growth/Value Pipeline Red Dog Satellite Deposit – Anarraaq San Nicolas (Cu-Zn) Elk Valley Brownfield (Replacement 4Mpta) Quintette/Mt. Duke Frontier Lease 421 QB Phase 2 Corridor Mesaba ZafranalHVC Brownfield Galore/Schaft Creek Cirque Future Options Trail #2 Acid Plant Medium-term Growth Options Elk Valley Brownfield Antamina Brownfield Red Dog Satellite Deposits Neptune Terminals to 18Mtpa 16
  • 48. Staying true to Teck’s values Delivering results Building operational excellence Disciplined capital spending Focused growth pipeline 17 Operations Meeting the Challenge
  • 50. Steelmaking Coal Focused on Today; Prepared for Tomorrow 19 Improving efficiency Continuing to lower costs Maintaining future potential
  • 51. Steelmaking Coal An Integrated Long Life Coal Business 20 Prince Rupert Ridley Terminal Vancouver Prince George Edmonton Calgary Westshore Terminal Quintette Cardinal River Elk Valley Kamloops British Columbia Alberta Seattle Elkford Sparwood Hosmer Fernie Fording River Greenhills Line Creek Elkview Coal Mountain ElcoElk Valley 1,150 km • >1 billion tonnes of reserves support 26 Mt of production for many years • Geographically concentrated in the Elk Valley • Established infrastructure and capacity with mines, railways and terminals • Only steelmaking coal mines still operating in Canada; competitive globally Neptune Terminal 20 Coal Mountain Phase 2 20
  • 52. Ongoing improvement in safety performance Achieving top quartile truck and shovel productivities Maintaining cash positive operations Targeting opportunities to lower maintenance and procurement costs 21 Steelmaking Coal Continued Operational Excellence 80% 87% 88% 97% 40% 50% 60% 70% 80% 90% 100% 2012 2013 2014 2015 %ofBenchmark Teck Coal Truck Productivities Significant annualized value in truck productivity improvements 1. All-in sustaining costs are in inclusive of cost of sales, capitalized stripping and sustaining capital expenditures. 50 75 100 125 150 175 200 2012 2013 2014 2015 2016F $/tonne(CDN) All-in Sustaining Costs Transport Coal Price 25% cost reduction from 2012 to 2016 Cost management delivers positive cash margin despite weakening i 1
  • 53. 197 125 76 81 0 50 100 150 200 250 300 350 400 450 500 2013 2014 2015 2016 $(millions) 2013 Savings 2014 Savings 2015 Savings 2016 Target Highlights: • Truck productivity improvements achieved $145M in sustainable savings • Labour improvements resulted in $90M savings • $74M savings in contractor management initiatives Highlights: • Reduction of 587 employees since December 2013 • Reduction of 360 employees since the May 2015 hiring freeze • Additional planned reduction of 99 employees in 2016 Steelmaking Coal Cost Reduction & Workforce 2013-2015 ~$400M of sustainable annual cost reductions to date; targeting >$81M of additional savings in 2016 CoalHiringFreeze Achieving balanced workforce profile to manage production to market conditions Total Annualized Savings ~$400M 4,711 4,463 4,124 4,025 5,000 5,400 5,800 6,200 6,600 7,000 3,000 3,400 3,800 4,200 4,600 5,000 Dec-13 Dec-14 Dec-15 2016 Tonnes/Employee #Employees Workforce Productivity 22
  • 54. 56 35 34 1 37 28 26 21 12 8 2012 2015 2016F Total cash costs down US$46/t from 2012 to 2016F2 Total Cash Costs2 23 US$/t 20123 2015 2016F4 Change Site $56 $35 $34 -39% Inventory Adjustments $0 $1 $0 n/a Transportation $37 $28 $26 -29% Unit Cost of Sales (IFRS) $93 $64 $60 -35% Capitalized Stripping $21 $12 $84 -61% Total Cash Costs2 $114 $76 $68 -40% Sustaining Capital $14 $2 $15 -90% All In Sustaining Costs $128 $78 $69 -45% 1. In US dollars per tonne. Assumes a Canadian dollar to US dollar exchange rate of 1.00 in 2012, 1.28 in 2015 and 1.38 in 2016. 2. Steelmaking coal unit cost of sales include site costs, inventory adjustments and transport costs. Total cash costs are unit cost of sales plus capitalized stripping. All in sustaining costs are total cash costs plus sustaining capital. 3. Assumes that capitalized stripping was reported from January 1, 2012. 4. Based on the mid-point of guidance ranges. 5. Approximate, based on capital expenditures guidance and mid-point of production guidance ranges. IFRS $114 $76 IFRS IFRS $68 Site Inventory Transport Capitalized Stripping Steelmaking Coal Highly Competitive Costs1
  • 55. West Line Creek Treatment Plant • First of the water treatment facilities planned for the Elk Valley; total cost $120M • Operating at design flowrate (7,500 m3 per day) and achieving design selenium and nitrate reductions Fording River South Treatment Plant • Facility to be operational by 2019, using learnings from West Line Creek • Project capital estimate of <$150M Elk Valley Water Quality Plan Costs • Capex as per previous guidance for both plants, and expectation that this will continue as design and construction improvements are incorporated • Costs included in sustaining capital • Continuing research and development into alternative processes which have potential to further reduce costs 24 Steelmaking Coal Achieving the Elk Valley Water Quality Plan Overview of FROAWTF-S Location and Streams
  • 56. Steelmaking Coal 5 Year Planning Objectives 2016 • Evaluating options to maintain 26 Mt of annual production − Despite the closure of CMO and CRO in the 5 year horizon − Exploring lowest cost options at remaining 4 Elk Valley operations − Utilize assets available from closed operations • Maintain all operations cash positive throughout the plan − Embed continuous cost improvement in each year − Ensure plans meet short term goals without sacrificing the long term viability of the operations • Future growth options remain available but dependent on stronger coal prices - 5 10 15 20 25 30 2017F 2018F 2019F 2020F 2021F Production(millionstonnes) Conceptual Future Production Profile FRO GHO (80%) EVO LCO CRO CMO Added Elk Valley 25
  • 57. Steelmaking Coal Focused on Today; Prepared for Tomorrow 26 Improving efficiency Continuing to lower costs Maintaining future potential
  • 59. 28 Solid assets in low-risk jurisdictions Cost reduction Productivity and throughput improvements Advancing best project opportunities Copper Finding Opportunity in Challenges
  • 60. • Operating assets with long lives capable of multiple price cycles • Strong resource base to leverage - Opportunities at existing operations to extend mine lives significantly - Disciplined approach to greenfield project portfolio 0 100 200 300 400 500 2012 2013 2014 2015 2016E* 2017- 2019E Tonnes(000’s) Cu Cathode Cu in Concentrate Copper Production * 2016E represents the mid-point of 2016 guidance. Copper Long-Life Assets Focused on the Americas 29
  • 61. 0.2 0.3 0.4 100 125 150 175 200 2012 2013 2014 2015 2016E* 2017- 2019E 2020+ Grade(%) Tonnesperday(000’s) Mill Throughput Copper Grade R&R Grade Lower Near-Term Copper Production Focusing on sustainable cost reduction strategies to unlock potential expansion and extension options * 2016E represents the mid-point of 2016 guidance. • High-grade phase ends late-2016 • Aggressive cost reduction plans • Options to expand production & mine life Copper Highland Valley Grade Decline in the Short-Term 30
  • 62. 0.60 0.80 1.00 1.20 50 100 150 200 2011 2012 2013 2014 2015 2016E* 2017- 2019E Grade(%) Tonnesperday(000s) Mill Throughput Copper Grade Record Throughput in 2015Strong Cost Position * 2016E represents the mid-point of 2016 guidance. Antamina • New three-year collective agreement signed • Increasing zinc production over the next 5 years • Copper and zinc grades rising • Strong cost position; driving further improvements Copper Antamina’s Resources Support a Long Mine Life 31
  • 63. Copper Removing Barriers to Unlocking Value at Andacollo 0.2 0.4 0.6 30 45 60 2012 2013 2014 2015 2016E* 2017- 2019E Grade(%) Tonnesperday(000’s) Mill Throughput Copper Grade Throughput Offsets Grade Decline1 30 60 90 2012 2013 2014 2015 2016E* 2017- 2019E Copperproduction,t(000’s) Copper in Concentrate Copper Cathode Extending Cathode Production Creates Value 1. Grade represents total copper grade of ore sent to the mill only, excluding the cathode operation. * 2016E represents the mid-point of 2016 guidance. • Four-year labour agreements settled • Throughput improvement projects underway • Further cost reductions in progress • Extending cathode production to 2020 32
  • 64. Copper Cutting Costs & Evaluating Options at Quebrada Blanca RIPIOS RIPIOS DUMP • Labour agreements settled through 2017 • Geotechnical issues mitigated • Implementing aggressive cost reduction initiatives • Evaluating options to supplement production - 20 40 60 80 2012 2013 2014 2015 2016E* UnitCosts($/lb) Tonnes(000’s) Cu Production Unit Costs 2 Cash Costs Maintained Against Declining Production * 2016E represents the mid-point of 2016 guidance. 33
  • 65. • Aggressive capex reduction targets − Compressed layout with reduced earthworks, concrete & steel • New tailings location to significantly reduce capex − 25 year initial development plan due to tailings capacity, but no change in reserves • Preparing for environmental permit submission in 2H2016 Copper Reducing Capital Costs at Quebrada Blanca 2 Concentrator Cyclone Station New Tailings Site Existing Operation Focus on advancing permitting of the “right project” 34
  • 66. 35 • Committed to building strong, mutually beneficial relationships with stakeholders and communities • Capital smart partnership - Common infrastructure - Longer mine life - Reduced environmental footprint - Enhanced community benefits • Short term priorities - Community engagement & participatory planning - Evaluate strategic options & prefeasibility study 35 Before: Duplicate Infrastructure After: Common Infrastructure Copper Building Partnerships: Project Corridor
  • 67. • Absolute cost reduction • Productivity improvements • Labour force reduction • Contractor reduction • Managing supply contracts and usage Copper Intense Focus on Costs & Productivity 36
  • 68. 37 Solid assets in low-risk jurisdictions Cost reduction Productivity and throughput improvements Advancing best project opportunities Copper Finding Opportunity in Challenges
  • 70. • Red Dog has stable zinc production despite declining grade • Pend Oreille moving to a higher proportion of secondary mining, which improves selectivity and ore availability • Increased refined zinc production at Trail with enhanced process stability of a new acid plant • Value creating roadmaps for Red Dog and Pend Oreille 39 Zinc Poised to Capitalize on Improving Fundamentals
  • 71. Mill Throughput vs. Grade 40 Stable zinc metal production despite declining grade • Declining zinc grade offset by increasing mill throughput • Increasing mill throughput has resulted in reduced unit cost • Exploring opportunities to further increase mill throughput Zinc Red Dog: Maintaining Zinc Metal Production Expected Production 2017-2019 • 500,000-550,000 tonnes of zinc • 100,000-110,000 tonnes of lead 10 15 20 25 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Grade% MillThroughput(kt) Grade Throughput
  • 72. 41 Su-Lik Aktigiruk Anarraaq Red Dog Mine NANA Lease 100% Teck Red Dog District Drilling 2004-2015 Significant regional land position • 350 km2 of highly prospective NANA and State lands with identified exploration targets • Ongoing drilling programs to enhance resource certainty and define future developments Zinc Red Dog: Significant Exploration Potential 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Mine Regional Exploration 41
  • 73. 1980 – Red Dog Main and Qanaiyaq drilled 1989 – First ore from Main 1995 – Aqqaluk and Paalaaq discovered 2012 - First ore from Aqqaluk 2016 – First ore from Qanaiyaq 35 years of discovery and development 42 Zinc Red Dog: Mine Area Deposits
  • 74. 1999 Discovery: Anarraaq 2001 Discovery: Aktigiruk Underground targets Plan & section at same scale as previous slide 43 Anarraaq–Aktigiruk corridor Zinc Red Dog: Regional Exploration Discoveries
  • 75. 2cm 1.1 m @ 42.2% Zn, 14.7 % Pb, 558g/t Ag 2cm 1.9 m @ 24.6% Zn, 6.3 % Pb, 53g/t Ag Zinc Red Dog: Anarraaq High Grade Intercepts Demonstrate Significant Resource Potential1 DDH1718 54.7m @ 15.7%Zn, 4.0% Pb, 106g/t Ag Incl. 11.2m @ 34.2% Zn, 11.5% Pb, 382g/t Ag DDH1714 42m @ 18.3% Zn, 4.5% Pb, 82g/t Ag Incl. 23.4m @ 23.2% Zn, 5.2% Pb, 74g/t Ag44 Industry Average Zinc Grades Falling High Grade Anarraaq Intercepts Red Dog zinc grades are much higher than industry average 0 5 10 15 20 25 2009 2010 2011 2012 2013 2014 2015 Grade% Weighted Average Industry Grade Red Dog 1. The scientific and technical information disclosed has been reviewed and approved by Rodrigo Marinho, P.Geo., Technical Director, Reserve Evaluation, Teck who is a Qualified Person under NI 43-101. For further information, please see Teck’s most recent Annual Information Form.
  • 76. • Underground mine • Road access • Power generation • Access to Aktigurik • Resource upside • Resource drilling • Development schedule and capital • SAG motor upgrades • Fine grinding • Additional flotation • Lower ore cut-off • Further throughput increase • Mill space • Generator capacity Components Opportunities Challenges • Crushing & sorting equipment • Reactive ore • Higher metal recovery • Lower cut-off • Increase throughput • Screening technology • Underground mine • Access from Anarraaq • Resource upside • Resource drilling • Development schedule and capital Creating value through long-term planning 45 Mill Throughput Increase Anarraaq Underground Ore Sorting Aktigiruk Underground Current Life of Mine Plan Legend Zinc Red Dog: Value Creating Road Map
  • 77. Ore Production from Secondary Mining 46 Stabilizes ore production, which will result in reduced unit costs • Room and pillar stopes developed by drift mining • Initial ore supply entirely from primary mining of stopes – limited broken ore inventory • Secondary mining increases as stopes established and pillars can be removed as the mining front retreats – larger broken inventory 0 100 200 300 400 500 600 700 800 900 2004 2005 2006 2007 2008 2015 2016F OreMined(ooo’stonnes) Primary Mining (Drift) Secondary Mining (Pillar) Zinc Pend Oreille: Increasing Secondary Mining
  • 78. • Tailings back fill • Resource in adjacent to existing workings • Higher grades • Additional life • Resource drilling • Development schedule and capital • Dry stack tailings • Resources in YH1 • Higher grades and recovery • Additional mine life • Drilling required • Permitting of tailings Components Opportunities Challenges Creating value through long-term planning 47 Possible Life Extension to 2028 Ongoing Exploration to Define Future ResourcesOre Sorting Current Life of Mine Plan Legend Zinc Pend Oreille: Value Creating Road Map
  • 79. Acid Plant Reliability – Unplanned Downtime and Refined Zinc Production 260 265 270 275 280 285 290 295 300 305 310 0% 1% 2% 3% 4% 5% 6% 7% 8% 2010 2011 2012 2013 2014 2015 RefinedZincProduction(000'st) UnplannedDowntime(%) 48 Increased refined zinc production with enhanced process stability of a new acid plant New Acid Plant • Commissioned May 2014; first full year 2015 • Removes SO2 gas created from roasting sulphide concentrates. • Replaced unreliable 40-year old acid plants Focus on Cost Reduction • Personnel utilization • Zinc production Zinc Trail: More Reliable Acid Plant Unplanned Downtime
  • 80. • Red Dog has stable zinc production despite declining grade • Pend Oreille moving to a higher proportion of secondary mining, which improves selectivity and ore availability • Increased refined zinc production at Trail with enhanced process stability of a new acid plant • Value creating roadmaps for Red Dog and Pend Oreille 49 Zinc Poised to Capitalize on Improving Fundamentals
  • 82. Staying true to Teck’s values Delivering results Building operational excellence Disciplined capital spending Focused growth pipeline 51 Operations Meeting the Challenge
  • 83. Marketing March 30, 2016 Andrew Stonkus, Senior Vice President, Marketing & Sales Réal Foley, Vice President, Coal Marketing Mike Doma, Managing Director, Lee & Doma Energy Group
  • 85. Marketing World Economy in 2016 Global growth expected to increase to 2.8% in 2016, vs. 2.6% in 2015 • India will be the fastest-growing economy at 7.6%1 • China is determined to keep growth >6.5%, per the 13th Five Year Plan − Focusing on further urbanization as a key growth driver − Accelerating supply-side reforms, including reduction of overcapacity in coal and steel − Taking a more expansionary fiscal policy and monetary policy stance − Moving towards a more consumer/service based economy, which should provide positive fundamental support to later stage metals Global GDP is still growing 1. CRISIL’s estimate of real GDP growth.4
  • 86. Marketing Prolonged Deep Cycle Prices starting to improve Source: LME, BEA, LBMA, Teck Relative Price Changes 0.0 0.2 0.4 0.6 0.8 1.0 1.2 ZN CU Au WTI HC Coal plotted to March 15, 2016 Peak 2014-2016 Change From Peak Change From December 2015 Oil $108/bbl -66% -3% Zinc $1.10/lb -28% +10% Copper $3.37/lb -34% +5% Gold $1,385/oz -8% +16% HC Coal $135/Mt -39% +8% 5
  • 87. • Up cycles in green and down cycles in orange; plotted against duration in years on the right scale • Peak-to-trough price moves during the cycle in blue; plotted against the left axis • Up cycles tend to be longer, with higher percentage gains Marketing Price Cycles Deepest since 1920’s Years PeaktoTroughCycle%Change Source: Wood Mackenzie, USGS, WBMS, Teck * Copper prices were fixed in the 1932-1937 period. 72% -37% 132% -57% 3% 41% -68% 130% -10% 86% -13% 115% -37% 23% -6% 92% -12% 50% -15% 54% -28% 5% -13% 97% -30% 51% -45% 16% -14% 333% -26% 68% -49% 5 4 6 4 6 2 3 5 8* 3 1 7 2 2 1 9 2 2 4 2 2 1 1 5 4 2 4 1 2 5 2 2 5 0 2 4 6 8 10 12 14 16 18 20 -600% -500% -400% -300% -200% -100% 0% 100% 200% 300% 400% Example: Copper Cycle 6
  • 88. Current cycle is extreme from a historical perspective Coal market slowly rebalancing Minor copper surplus at risk Structural deficits developing in zinc Oil market rebalance and WTI >US$50/bbl expected by end 2017 Good long-term fundamentals Marketing Improving Commodity Markets 7
  • 90. 9 Steelmaking Coal Marketing Market Slowly Rebalancing • Steelmaking coal in longest and deepest cycle • Pricing at unsustainably low levels • USA supply reduced and remains under most pressure • Good demand outside China • Higher pricing required to incent future production
  • 91. Our Market - Seaborne Hard Coking Coal2: ~200 million tonnes 1. Source: International Energy Agency 2014 data 2. Source: CRU Global Coal Production1: 7.9 billion tonnes Steelmaking Coal Production2: ~1,185 million tonnes Export Steelmaking Coal2: ~325 million tonnes Seaborne Steelmaking Coal2: ~290 million tonnes Steelmaking Coal Marketing High Grade Hard Coking Coal Is A Niche Market 10
  • 92. 60 80 100 120 140 160 $/tonne Quarterly Contract Settlement Argus FOB Australia Steelmaking Coal Marketing Largest Uptick in Spot Prices Since Q3 2013 Source: Argus Coal Prices: Quarterly Benchmark Prices and Spot Assessments Q2 Benchmark Price? 11
  • 93. Steelmaking Coal Marketing Mixed Views on China Coking Coal Imports 2020F China's Coking Coal Imports & Stock Changes Stocks at ports and end users reaching low levels China Rolling 12-Month Coking Coal Imports 2020 Forecast: 30~70 Mt Source: GTIS, Wood Mackenzie, CRU, UBS, Mysteel 0 10 20 30 40 50 60 70 80 2009 2010 2011 2012 2013 2014 2015 Milliontonnes Seaborne imports rolling 12mo Mongolia imports rolling 12mo 60.0 15.4 13.2 13.1 35.3 12.7 3.4 8.0 0 10 20 30 40 50 60 70 Seaborne Landborne Stock at ports Stock at sample end users Milliontonnes 2013 2015 12
  • 94. 0 200 400 600 800 1000 1200 1400 Mt Estimated Crude Steel Capacity Crude Steel Production Source: Teck, Fenwei, NBS, CISA, MIIT, State Administration of Work Safety Steelmaking Coal Marketing China Reducing Overcapacity Raw CoalCrude Steel 13th 5-Year Plan: Eliminate 100-150 Mt of capacity 13th 5-Year Plan: Eliminate 500 Mt of capacity 0 1000 2000 3000 4000 5000 Mt Estimated Raw Coal Capacity Raw Coal Production 13
  • 95. 0 200 400 600 800 1000 2010 2015 2020 2025 2030 2035 Crude Steel and Hot Metal Production Source: WSA, China Association of Metalscrap Utilization, Wood Mackenzie Crude Steel Steelmaking Coal Marketing China Scrap Use to Increase Slowly China’s Scrap Ratio Low vs. Other Countries 73% 54% 33% 88% 28% 50% 11% 36% 0% 20% 40% 60% 80% 100% United States Europe Japan Turkey Russia Korea China World Average China Steel Use By Sector (2000-14) Electric Arc Furnace Hot Metal Hot metal / crude steel ratio to remain >90% and EAF share of crude steel production <10% until ~2028 14
  • 96. Steelmaking Coal Marketing Growing India Steelmaking Coal Imports India’s Hot Metal Capacity; Projects and Operations Seaborne Steelmaking Coal Imports Required to Meet India Hot Metal Production 0 10 20 30 40 50 60 70 80 0 10 20 30 40 50 60 70 80 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 HMP forecast by Wood Mackenzie HMP forecast by CRU Seaborne Steelmaking Coal Imports (average Wood Mackenzie and CRU) Mt Seaborne steelmaking coal imports forecasted to increase by >20% Source: WSA, Wood Mackenzie, CRU15
  • 97. Source: CRU, Wood Mackenzie Steelmaking Coal Marketing Stronger Fundamentals in Rest of the World Seaborne Steelmaking Coal Imports (Average Wood Mackenzie and CRU; Change 2020 vs. 2015) 16
  • 98. Steelmaking Coal Marketing Cash Margins Under Pressure Seaborne HCC Cash Margins US Steelmaking Seaborne Coal Exports 38 Mt 0 10 20 30 40 50 60 70 Mt 2000-2009 average of 23 Mt 2010-2014 average of 55 Mt >90% of US HCC exports are cash negative Source: GTIS, Wood Mackenzie17
  • 99. Steelmaking Coal Marketing Australian Production Peaking Australian Steelmaking Coal Production Higher pricing required to incent more production Source: CRU 100 120 140 160 180 200 220 2016 2018 2020 2022 2024 2025 Existing & Committed Production Mt 18
  • 100. Steelmaking Coal Marketing We Are a Leading Steelmaking Coal Supplier To Steel Producers Worldwide North America ~5% Europe 2015: ~20% 2013: ~15% China 2015: ~20% 2013: ~30% High quality, consistent, reliable, long-term supply Asia excl. China 2015: ~50% 2013: ~45% Latin America ~5% Proactively realigning sales with changing market 19
  • 101. 20 Steelmaking Coal Marketing Market Slowly Rebalancing • Steelmaking coal in longest and deepest cycle • Pricing at unsustainably low levels • USA supply reduced and remains under most pressure • Good demand outside China • Higher pricing required to incent future production
  • 103. 22 Base Metals Marketing Strong Fundamentals Copper • Global mine production continues to underperform • Small surpluses but low global stocks Zinc • Cutbacks/closures push market into significant deficit • Zinc metal market working off excess inventory • Consensus for metal deficits in 2016 & 2017
  • 104. Base Metals Marketing Slowing Copper Mine Production Growth 0 5,000 10,000 15,000 20,000 25,000 30,000 2010 2013 2016 2019 2022 2025 ThousandTonnes Mine Production SXEW Scrap Demand Copper Mine Production Peaks in 2017 Uncommitted Projects Increasingly Delayed 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 2016F Last Year 2016F Today 2018F Last Year 2018F Today 2020F Last Year 2020F Today ThousandTonnes Highly Probable Probable Possible Existing and Fully Committed Mines Committed and operating mine production peaking & replacement projects delayed Source: Wood Mackenzie, CRU, ICSG, Teck23
  • 105. Base Metals Marketing Copper Cathode Balances Trending Down -950 -859 -776 -851 -945 -584 -839 -973 -831 -968 -1,315 -225 -1,400 -1,200 -1,000 -800 -600 -400 -200 0 Thousandtonnes Analysts projecting weak fundamentals still don’t show massive stock builds Source: Wood Mackenzie, Teck Historic Disruptions 7-9% / Year 2015 Disruptions: 8.5% 2016 YTD: 6.7% -200 -100 0 100 200 300 400 500 WM CRU JPM MS Citi CS UBS Macq BNS TD Thousandtonnes 1% of Demand Analyst 2016 & 2017 Cathode Balances 24
  • 106. Base Metals Marketing Significant Chinese Copper Demand Remains …But Will Add Significantly in Additional Tonnage Terms Annual Growth Rate of Chinese Copper Consumption to Slow Dramatically… China expected to add almost as much to global demand in the next 15 years as the past 25 years Source: Wood Mackenzie, Teck - 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. 11.9% Annual Avg. 2.8% Annual Avg. Growth 356 kt Annual Avg. Growth 325 kt Thousandtonnes 25
  • 107. 0 200 400 600 800 1,000 1,200 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Cathode Concs Scrap Blister/Semis 000’stonnes(content) Net Copper Imports up ~5% in 2015 Source: NBS Updated to January 2016 Total copper unit imports continue to climb Base Metals Marketing China Switching to Copper Concentrates 26
  • 108. (2,000) (1,500) (1,000) (500) 0 500 2012 2014 2016 2018 2020 Thousandtonnes • At 2.3% global demand growth, 480,000t of new supply needed annually • Post 2016, mine production falls ~260,000t per year • Structural deficit starts 2018 • Projects delayed today will not be available to the market by 2018 • Market finely balanced through 2018; could materially change with similar disruptions to 2015 Forecast Copper Refined Balance Base Metals Marketing Long-Term Copper Mine Production Still Needed Source: ICSG, Wood Mackenzie, Teck27
  • 109. Base Metals Marketing Global Copper Stocks Falling - 50 100 150 200 250 300 350 400 450 500 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2011 2012 2013 2014 2015 2016 US¢/lb Thousandtonnes Chinese Bonded LME COMEX SHFE LME Price • Prices down 33% in 2015 on surplus view • Total reported stocks in days of global consumption: − Today: ~14 days − Early 2013: ~28 days Copper Stocks Source: CRU, SHFE, LME, CME, Teck plotted to Mid-March 2016 Lower prices have not translated into increased stocks 28
  • 110. 29 • Mine production continues to underperform • Small forecast surpluses relative to market size • Production curtailments and project delays due low prices • Global stocks are low in days of consumption • Deficit if upside to demand or higher than forecast disruptions Base Metals Marketing Minor Copper Surpluses at Risk
  • 111. 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 2016F Last Year 2016F Today 2018F Last Year 2018F Today 2020F Last Year 2020F Today ThousandTonnes Highly Probable Probable Possible Base Metals Marketing Slowing Zinc Mine Production Growth Zinc Mine Production Peaks in 2020 Uncommitted Projects Increasingly Delayed Existing and Fully Committed Mines Committed and operating mine production peaking & replacement projects delayed 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 2010 2013 2016 2019 2022 2025 ThousandTonnes Mine Production Secondary Demand Source: Wood Mackenzie, CRU, ILZSG, Teck30
  • 112. 4,000 4,500 5,000 5,500 6,000 6,500 7,000 2012 2013 2014 2015 2016F Thousandtonnes Mine Supply ROW Conc Imports Australia Conc Imports Metal Imports Demand 3% Source: NBS, GTIS, Wood Mac, Teck Chinese Zinc Supply, Including Trade & Demand Base Metals Marketing Chinese Zinc Spot Market is Short • 2016 Australian mine production will fall 43% • Chinese concentrate imports: 40% Australia and 30% Peru in 2015 • 2016 shortage of 1.0 Mt at 0% growth, and 1.3 Mt at 3% growth ConcentrateSupply ConcentrateSupply Lower concentrate supply expected in 2016 31
  • 113. Spot TCs Tighten Base Metals Marketing Market Consensus for Tightening Zinc Market Source: BGRIMM/Antaike, Wood Mackenzie -1,000 -800 -600 -400 -200 0 200 400 WM CRU JPM MS Citi CS UBS Macq BNS TD Thousandtonnes 2016 2017 Analyst Zinc Metal Balance Comparison $0 $100 $200 $300 $400 $500 $600 Spot Annual 32
  • 114. Base Metals Marketing Committed Zinc Supply Insufficient for Demand Forecast Zinc Refined Balance Source: Teck • We expect insufficient mine supply to constrain refined production − From 2014-2020, refined metal supply increase of only 792 kt − Over the same period, refined demand increase of 2.8 Mt • Market was in deficit in 2014 • Ongoing, large inventory that has funded the deficit will continue in 2016 • Metal market moving into significant deficit with further mine closures and depleting inventories (2,500) (2,000) (1,500) (1,000) (500) 0 500 2012 2013 2014 2015 2016 2017 2018 2019 2020 Thousandtonnes 33
  • 115. - 20 40 60 80 100 120 0 500 1,000 1,500 2,000 2,500 2011 2012 2013 2014 2015 2016 US¢/lb Thousandtonnes Chinese Bonded LME SHFE LME Price Base Metals Marketing Global Zinc Stocks Falling • Prices fell 27% in 2015 • Total reported stocks in days of global consumption: − Today: ~25 days − Early 2013: ~59 days Zinc Stocks Source: CRU, SHFE, LME, Teck plotted to Mid-March 2016 34
  • 116. 35 Base Metals Marketing Structural Deficits Developing in Zinc • Mine closures have occurred • Supply deficit magnified by production cuts • Spot concentrate treatment charges falling • Chinese metal imports must increase • Stocks declining & insufficient to meet demand
  • 117. 36 Base Metals Marketing Strong Fundamentals Copper • Global mine production continues to underperform • Small surpluses but low global stocks Zinc • Cutbacks/closures push market into significant deficit • Zinc metal market working off excess inventory • Consensus for metal deficits in 2016 & 2017
  • 119. 38 Energy Marketing Near-Term Market Expectations • Oil markets currently oversupplied • Markets expected to rebalance in 2017 • >US$50/bbl WTI expected by end 2017
  • 120. Energy Marketing Market Rebalance Expected in 2017 $0 $50 $100 $150 $200 40 50 60 70 80 90 100 Nominal$US/bbl MMb/d Oil Demand (left axis) Source: IEA and EIA Source: Wood Mackenzie Macro Oils Short-Term Outlook, February 2016 Long-Term Trend: Prices rose to create supply to meet demand growth • 2000–2015 demand up 16 MM b/d − Growth from 74 to 90 MM b/d or 1.3%/yr • 2000–2015 supply − Higher prices required to bring on incremental supply to meet demand growth − Supply growth (16 MM b/d): U.S. 4.8, Russia 4.6, Saudi Arabia 2.1, Canada 1.6, China 1.1, Brazil 1.0, Net Others 0.8 Short-Term: Low price due to oversupply & resultant inventory build • 2011–2015 liquids supply up 7.9 MM b/d − U.S. tight oil growth and Saudi policies result in current oversupply and inventory build − Supply growth (MM b/d): U.S. 4.8, Iraq 1.3, Saudi Arabia 1.1, Canada 0.9, Net Others -0.2 • Supply/demand expected to rebalance in 2017 − Response to low price signals have begun − Key 2016 trends: Demand to grow, US tight oil production to decline and Iranian production to grow Long-Term Global Oil Demand and WTI Price World Liquids Supply & Demand -2 0 2 4 6 80 85 90 95 100 MMb/d MMb/d Stock Change (right axis) World Supply (left axis) World Demand (left axis) WTI Price (right axis) Forecast 39
  • 121. Energy Marketing >$US50/bbl WTI Expected by End 2017 $0 $10 $20 $30 $40 $50 $60 -2 0 2 4 6 Nominal$US/bbl MMb/d Stock Change WoodMackenzie WTI Forecast Consensus Economics Avg. Forecast Stock Change (left axis) Forecast 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 4 5 6 7 8 9 10 #ofOilRigs MMb/d U.S. Oil Rig Count (right axis) U.S. Oil Production (left axis) Rebalancing of supply and demand expected to raise WTI to >US$50/bbl by Q4/17 • 2016/17 world liquids demand expected to rise by 2.7 MM b/d while supply decreases by 0.9 MM b/d • WTI price forecast for Q4/2017: • WoodMackenzie: US$59/bbl • Consensus Economics Avg.: US$52/bbl Lower investment leads to lower supply growth • U.S. oil rig count fell from a peak of 1,609 in Oct/14 to a low of 392 in March/16 (76% drop). • U.S. oil production peaked in June/15 and expected to decline by 0.6 MM b/d in 2016/17 • Global oil capital expenditures dropped from US$540B in 2014 to US$400B in 2015, and an expected US$330B in 2016 (40% drop in 2 years) Source: Wood Mackenzie February 2016; Consensus Economics February 2016 WTI Price (right axis) Source: EIA, Baker Hughes World Liquids Balance and WTI Price Outlook U.S. Oil Production and Oil Rig Count 40
  • 122. Energy Marketing Higher Prices Required For New Production Development $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 50 60 70 80 90 100 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 NominalUS$/bbl MMb/d Actual WoodMac IEA Actual WoodMac McD/Spr/GLJ Source: IEA World Energy Outlook, December 2015 Demand growth continues and prices recover to ensure supply meets demand • Oil demand growth to continue − Wood Mackenzie and IEA forecasting similar demand growth, increasing ~8 MM b/d by 2030 (0.7% growth/yr) • Higher long-term prices required for new production development − 2018 to 2030 avg. WTI price forecasts (2016 dollars): • Wood Mackenzie (Nov/15): US$80/bbl • McDaniel/Sproule/GLJ Avg.: US$73/bbl 36 MM b/d of new oil production required to meet demand growth & production declines • 28 MM b/d of declines plus 8 MM b/d of oil demand growth implying 36 MM b/d of new production by 2030 • Key contributors to production growth (MM b/d): • Iraq 3.0, Brazil 2.3, Canada 1.5, Saudi Arabia 1.5, Iran 1.4 • US production peaks around 2022; 2030 US production similar to 2014 levels Oil Demand (left axis) WTI Price (right axis) 0 20 40 60 80 100 120 MMb/d Forecast Oil Demand and WTI Price Outlook World Oil Supply Sources 41
  • 123. • US/Canadian heavy refining capacity exceeds Canadian heavy crude oil production • US Gulf Coast provides largest market for growth • TMX and Energy East pipelines will provide access to deep water ports Energy Marketing Heavy Oil Refining Capacity Available Estimated Disposition and Refining Capacity for Canadian Heavy (kbbls/day) 0 600 1200 1800 2014 2019 Western Canada 0 600 1200 1800 2014 2019 US Rockies 0 600 1200 1800 2014 2019 Eastern US/Canada0 600 1200 1800 2014 2019 US West Coast 0 600 1200 1800 2014 2019 US Midwest 0 600 1200 1800 2014 2019 US Gulf Coast 0 1000 2000 3000 4000 2014 2019 kbbls/day US/Canada Heavy Crude Refining Capacity Additional Capacity Available for Canadian Heavy Canadian Heavy Usage Access to deep water ports will add market capacity and diversification Source: CAPP, EIA, Lee & Doma Energy Group Additional Capacity Available for Canadian Heavy Canadian Heavy Usage 42
  • 124. Energy Marketing Sufficient Western Canadian Takeaway Capacity Expected 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 kbbls/day Western Canada Crude Supply Forecast Pipeline & Local Refining Capacity Pipeline, Local Refining & Rail Capacity TMX & Energy East Enbridge Expansions Western Canadian Supply and Takeaway Capacity Source: CAPP, Lee & Doma Energy Group Fort Hills’ First Oil Sufficient takeaway capacity expected for forecast growth • 2011–2014 − Rapid production growth resulted in takeaway capacity challenges − Industry added significant pipeline and rail capacity during this time • 2015–2030 − Existing pipeline capacity, new pipelines (TMX and Energy East) and existing rail capacity expected to provide sufficient takeaway capacity 43
  • 125. WTI - WCS Annual Average Price Differentials Sufficient takeaway capacity results in current WTI-WCS differentials • 2011–2014 − Takeaway capacity challenges drive wider WTI - WCS differentials, averaging ~US$25/bbl in 2013 • 2015–2030 − Sufficient takeaway capacity developed and WTI - WCS differential narrowed to ~US$14/bbl in 2015 − Current differentials expected to persist with sufficient takeaway capacity available $14.19 $17.09 $21.01 $25.12 $19.63 $13.69 $14.00 $0 $5 $10 $15 $20 $25 $30 2010 2011 2012 2013 2014 2015 2018-2030 Real Forecast* NominalUS$/bbl * In 2016 real US dollars. Assumes US$75/bbl WTI. Source: GLJ (historicals), Lee & Doma Energy Group (forecast) Average real price differential of US$14/bbl expected 2018-2030 Energy Marketing Current Differentials Expected to Persist 44
  • 126. 45 Energy Marketing Market Rebalance Expected in 2017 • 36 MM b/d of new oil production required by 2030 • Higher prices required for new production development • US/Canadian heavy refining capacity can accommodate growing Canadian heavy production • Sufficient Western Canadian takeaway capacity expected
  • 128. Current cycle is extreme from a historical perspective Coal market slowly rebalancing Minor copper surplus at risk Structural deficits developing in zinc Oil market rebalance and WTI >US$50/bbl expected by end 2017 Good long-term fundamentals Marketing Improving Commodity Markets 47
  • 129. Energy Projects March 30, 2016 Ray Reipas, Senior Vice President, Energy Tim Watson, Senior Vice President, Project Development
  • 131. Energy Business Building A Valuable Energy Business 4 Market strategy and market access are progressing Fort Hills economics are robust Significant free cash flow over 50 year project life at expected long term oil price
  • 132. Energy Business Progress in Implementing Our Diversified Marketing Strategy Market Access Options for Teck’s 50 kbbls/day of Fort Hills Diluted Bitumen Blend Cushing Flanagan Houston Kitimat Edmonton US Gulf Coast Europe Asia TransCanada Energy East (Proposed, Contract Carriage) Enbridge Northern Gateway (Proposed, Contract Carriage) TransCanada Keystone/MarketLink (Existing, Contract Carriage) Enbridge Flanagan South (Existing, Contract Carriage) Vancouver TransMountain Pipeline Expansion (Proposed, Contract Carriage) Asia Agreements for pipelines to Hardisty in place Agreement for Hardisty product storage in place Monitoring production vs market access balance Developing a portfolio of pipeline capacity opportunities, to enable access to diversified markets Evaluating opportunities in the secondary market for pipeline capacity Developing a diversified customer base Hardisty Chicago Sarnia Patoka Superior Guernsey Montreal Saint John Enbridge Mainline System (Existing, Common Carriage) Spectra Express (Existing, Contract Carriage) Teck can enter into long-term take or pay contracts 5
  • 133. East Tank Farm Blending w/Condensate Energy Business Committed Logistics Solutions in Alberta Pipeline/Terminal Operator Pipeline Capacity (kbpd) Teck Capacity (kbpd) Status Northern Courier Hot Bitumen TransCanada 202 40.4 Construction on schedule East Tank Farm - Blending Suncor 292 58.4 Modules constructed and on site; tank construction ahead of schedule Wood Buffalo Blend Pipeline Enbridge 550 65.3 In service Wood Buffalo Extension Enbridge 550 65.3 Pipeline 80% complete, beginning pump station construction Norlite Diluent Pipeline Enbridge 130 18.0 Construction on schedule: In service May 2017 Hardisty Blend Tankage Gibsons 425 kbbls 425 kbbls Construction ahead of schedule: In service Q4 2016 Wood Buffalo Extension Norlite Diluent Pipeline Cheecham Terminal Hardisty Terminal Wood Buffalo Pipeline Athabasca Pipeline Edmonton Terminal Fort Hills Mine Terminal Northern Courier Hot Bitumen Pipeline Teck Options Export Pipeline Rail Local Market Pipeline Legend Bitumen Blend Diluent Existing New Kirby Athabasca Twin Pipeline 6
  • 134. Source: Suncor Energy Business Northern Courier Bitumen Pipeline Progress Q1 2016 Q1 2016 Pipeline start at the Fort Hills tank farmPipeline construction 7
  • 135. Source: Suncor Q1 2016 Energy Business East Tank Farm Progress 8
  • 136. Source: Teck Q1 2016 Q1 2016 Energy Business Wood Buffalo Extension Pipeline Progress 9
  • 137. Source: Teck Energy Business Norlite Diluent Pipeline Progress Q1 2016 Q1 2016 10
  • 138. Source: Gibson’s Q1 2016 Q1 2016 Energy Business Gibson’s Tank at Hardisty Progress 11
  • 139. Source: Teck 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. Sanction capex 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 pre and post capital recovery periods. 5. Post-payout estimated net margin includes C$1.50 export market premium. 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 US$60 WTI & $1.30 USD/CAD US$75 WTI & $1.20 USD/CAD Pre-Payout Post-Payout Teck’s share of annual production (36,000 bpd) 13 Mbpa 13 Mbpa Estimated netback2 ~$40/bbl ~$55.50/bbl Estimated operating margin2 ~$15/bbl ~$30.50/bbl Alberta oil royalty2 ~$1.50/bbl ~$10/bbl Estimated net margin2,5 ~$13.50/bbl ~$22/bbl Annual pre-tax cash flow ~$180 M ~$290 M Teck’s share of sanction capex3 ~$2,940 M ~$2,940 M Free cash flow yield4 ~6% ~10% Energy Business Fort Hills Project Economics Are Robust1 0% 5% 10% 15% 20% 25% $40 $50 $60 $70 $80 $90 $100 $110 $120 FreeCashFlowYield WTI $/bbl Post-Payout @$1.20 USD/CAD Pre-Payout @$1.30 USD/CAD 12
  • 140. Energy Business Building A Valuable Energy Business 13 Market strategy and market access are progressing Fort Hills economics are robust Significant free cash flow over 50 year project life at expected long term oil price
  • 142. 15 On schedule, with construction >53% complete1 On budget, with significant contingency remaining Commissioning starting in 15 months 1. As at February 29, 2016. Photo Source: Suncor Fort Hills Fort Hills Project On Track
  • 143. >95% Engineering complete approximate as at February 29, 2016 >53% Construction complete approximate as at February 29, 2016 Project Progress construction has surpassed the midway point and the project continues to track positively within schedule expectations Global fabrication, module and logistics program performing well to date, delivering positive results All critical schedule milestones have been achieved to date supporting target 2017 first oil Safety and Environment continued positive performance Construction hours 2 reportable environmental; 0 regulatory non-compliance ~28M Recordable injury frequency per 200,000 exposure hours 0.45-0.55 Fort Hills Project Status & Progress 16
  • 144. Teck’s Sanction Capital2 ~$2.94 billion Teck’s Estimated 2016 Spend $960 million Teck’s Remaining Capital3 ~$1.2 billion Operating & Sustaining Costs4 $25-28 per barrel of bitumen Sustaining Capital4 $3-5 per barrel of bitumen Teck’s Share of Production 13,000,000 bitumen barrels per year 1. All costs and capital are based on Suncor’s estimates. 2. Sanction 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. Includes earn-in of $240M. 3. As of February 10, 2016. 4. Sustaining capital is included in operating & sustaining costs. Mine life: 50 years Fort Hills Key Numbers1 17
  • 145. Fort Hills Bitumen Production & Blend Supply 0 10 20 30 40 50 60 0 10 20 30 40 50 60 Kbbls/day Kbbls/day Estimated Fort Hills Production1 - First 36 Months Bitumen Diluent Available Blend Fort Hills • Teck Share: 20%, or 36 kbpd of bitumen • Start-up: December 2017 • 90% production after 12 months • Production varies based on operating conditions and throughput Diluent Blending Required • Diluent required to meet pipeline viscosity specifications • Typical barrel of blended bitumen: 75% bitumen and 25% diluent • Blend requirements depend on bitumen density, diluent quality and seasonality Total blend for Teck: 45-50 kbpd 1. Teck’s share of production.18
  • 147. Fort Hills Ore Preparation Plant MSE Wall & Crusher Q1 2015 Source: Suncor19
  • 148. Fort Hills Ore Preparation Plant Source: Suncor Q1 2016
  • 149. Fort Hills Ore Preparation Plant One of Two Crusher Stations Q1 2016 Source: Suncor20
  • 150. Fort Hills Ore Preparation Plant One of Two Crusher Stations Source: Suncor Q1 2016
  • 151. Q1 2016 Fort Hills Ore Preparation Plant Surge Bin, Conveyors, Rotary Breaker Building Source: Suncor Q2 2015 21
  • 152. Fort Hills Extraction & Tailings Source: Suncor Q1 2016
  • 153. Fort Hills Extraction & Tailings Primary Separation Cells, Flotation & Tailings Buildings Q1 2015 Source: Suncor22
  • 154. Fort Hills Extraction & Tailings Primary Separation Cells, Flotation & Tailings Buildings Q1 2016 Source: Suncor23
  • 155. Fort Hills Secondary Extraction Q2 2015 Q4 2015 Source: Suncor24
  • 158. Fort Hills Secondary Extraction Solvent Bullets Installed Q1 2016 Q1 2016 Source: Suncor26
  • 159. Fort Hills River Water Intake Coffer Dam Q2 2014 Q4 2015 Source: Suncor27
  • 160. Fort Hills River Water Intake Mechanical Installation of Pumphouse Q1 2016 Source: Suncor28
  • 161. Fort Hills Utilities & Offsites Source: Suncor Q1 2016
  • 162. Fort Hills Utilities & Offsites Boiler Installation Q1 2016 Source: Suncor29
  • 163. Fort Hills Utilities & Offsites Storage Tanks Q1 2016 Source: Suncor30
  • 164. On schedule, with construction >53% complete1 On budget, with significant contingency remaining Commissioning starting in 15 months 1. As at February 29, 2016. Photo Source: Suncor Fort Hills Fort Hills Project On Track 31
  • 165. Sustainability March 30, 2016 Marcia Smith, Senior Vice President, Sustainability & External Affairs
  • 166. • Six focus areas • Community • Biodiversity • Our People • Water • Air • Energy and Climate Change • Achieved all 2015 goals • Set new short-term 2020 goals • Working towards long-term 2030 goals Sustainability Our Sustainability Strategy 3
  • 167. Sustainability Recent Highlights on Progress in Key Areas Water Our 1st water treatment facility in the Elk Valley has begun full operation & is now achieving 100% of its selenium reduction target Biodiversity Continued to support biodiversity initiatives including successful caribou penning project (16 calves born in protective shelter over last 2 years) and advancing land conservation initiatives with Indigenous communities, ENGOs and other partners Indigenous Communities We now have 25 active agreements with Indigenous communities in areas we operate; recently released Indigenous Peoples Policy including commitment to work towards achieving Free, Prior and Informed Consent Tailings Management Multi-layered, industry best practice approach, including: surveillance technology, regular staff inspections, annual safety inspections, internal audits, third-party reviews, Independent Tailings Review Boards 4
  • 168. Adoption of Paris Agreement on Climate Change • Targets an increase of no more than 1.5°C • 195 countries under one plan • A framework for global action to address climate change • Teck is a signatory to the Paris Pledge in support of the Paris Agreement Sustainability Climate Change Context 5
  • 169. • In British Columbia, Elk Valley Steelmaking coal mines, Highland Valley Copper mine, Trail Operations smelter charged at $30/t of CO2 • In Alberta, $20/t of CO2 charged over specified target • Movement towards global climate action will level playing field Sustainability Climate Change Teck Context 6
  • 170. Sustainability Climate Change and Mining Potential Implications of Low Carbon Economy +_ Effect on commodity demand • Material substitution • Increased metals recycling • Electric technology / Renewable energy • High density housing & infrastructure • Penalties for lower-quality steelmaking coal 7
  • 171. • Continued long term growth in demand for core commodities • Factors for success in a carbon-constrained world are likely to be: • Commodity diversification • Efficient, low-cost production • Low carbon footprint • Our progress towards these minimizes risk of stranded assets Sustainability Climate Change and Mining 8
  • 172. Sustainability Carbon Reduction: Our Performance Source: ICMM Report “The cost of carbon pricing”, Teck GHG Emissions Intensity Ranges among ICMM member companies: Teck Teck Copper Coal Over 200,000 tonnes of annual GHG reductions have been achieved at Teck operations since 2011 Teck products among lowest carbon intensity in the world 9
  • 173. Sustainability Carbon Reduction: Our Long Term Strategy Our strategy: • Improve energy efficiency • Implement low carbon technologies • Expand alternative energy use 2030 GHG reduction target: • 450,000 tonnes Implementing specific GHG reduction initiatives, e.g.: • Operational efficiency • LNG trucks • Mine design 0 5 10 15 20 25 30 35 2011 2012 2013 2014 2015 Wintering Hills (Wind) Waneta Expansion Plant (Hydro) QB (Solar) Teck Alternative Energy Implementation (MW average annual output) 2015 goal 10
  • 174. Sustainability Summary In the low carbon economy of the future, successful miners will be:  Diversified  Low cost  Low carbon 11
  • 175. Sustainability Questions? Best 50 Corporate Citizens in Canada 2015 On the Dow Jones Sustainability World Index six years in a row One of top 100 most sustainable companies in the world and one of Canada’s most sustainable companies Top 50 Socially Responsible Corporations in Canada Listed on FTSE4Good Index in 2015 12
  • 176. Investor and Analyst Day March 30, 2016