Mr. Jonathan Price reports

TECK REPORTS UNAUDITED THIRD QUARTER RESULTS FOR 2023

Teck Resources Ltd. has released its unaudited third quarter results for 2023.

"We made solid progress on the ramp-up of our flagship QB2 copper project, generating gross profit in the third quarter, and we remain on track to achieve design throughput by year-end," said Jonathan Price, chief executive officer. "Positive financial performance was driven by continued strong commodity prices, partially offset by lower steelmaking coal sales due to supply chain disruptions -- resulting from the B.C. port strike and wildfires -- in the quarter."

Highlights:

• Adjusted profit attributable to shareholders (1) of $399-million, or 77 cents per share, in Q3 2023;
• Profit from continuing operations attributable to shareholders of $276-million, or 53 cents per share, in Q3 2023;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) (1) was $1.2-billion in Q3 2023, driven by robust prices for copper and steelmaking coal and higher base metal sales volumes; profit from continuing operations before taxes was $589-million in Q3 2023;
• Sales volumes in the copper and zinc business units were higher than the same period last year; QB2 continued to ramp up operations with production of 18,300 tonnes of copper and sales of 14,300 tonnes, generating gross profit before depreciation and amortization (1) of $19-million in the third quarter;
• The QB2 plant is performing well, and Teck continues to expect to achieve design throughput at QB2 by the end of 2023;
• Steelmaking coal prices remain robust, driven by supply constraints and strong demand, particularly from India and China; prices rose through the third quarter and into October, with FOB premium spot prices trading at $343 (U.S.) per tonne as of Oct. 23, 2023; its high-margin steelmaking coal business unit is well positioned to continue to deliver strong financial performance in the fourth quarter;
• Teck generated cash flows from operations of $736-million, ending the quarter with a cash balance of $1.3-billion;
• Its liquidity as at Oct. 23, 2023, is $7.0-billion, including $1.5-billion of cash;
• Teck continues to advance its copper growth portfolio; in the third quarter, Teck completed the feasibility study for its HVC 2040 project and submitted the project environmental assessment to the Environmental Assessment Office of British Columbia in October, 2023.

Key updates

Executing on its copper growth strategy -- QB2, a long-life, low-cost operation with major expansion potential:

• QB2 generated gross profit before depreciation and amortization (1) of $19-million in the third quarter;
• Line 2 fully commissioned at the end of September, benefiting from the learnings from Line 1 commissioning with a faster, more effective ramp-up schedule;
• At the end of the third quarter, the plant has been operating consistently at 70 per cent of design capacity; it expects to be operating at design throughput and recovery rates by year-end although it expects to be at the lower end of its 2023 annual production guidance for QB2;
• Construction completion of the molybdenum plant is expected by the end of the fourth quarter of 2023, and the port offshore facilities completion is expected in the first quarter of 2024; existing shipping arrangements are expected to provide adequate capacity for shipping product though the first quarter of 2024;
• Delays in construction of the molybdenum plant and port offshore facilities, slower-than-planned demobilization progress, and contract claim risk have put pressure on its capital cost guidance; as a result, it has updated its capital cost guidance for QB2 to $8.6-billion (U.S.) to $8.8-billion (U.S.) from its previously disclosed guidance of $8.0-billion (U.S.) to $8.2-billion (U.S.); significant efforts are continuing to mitigate the risks and cost pressures.

Safety and sustainability leadership:

• Its high potential incident frequency remained low at a rate of 0.13 in the third quarter.
• Teck announced an agreement with Norden that is expected to reduce carbon dioxide emissions in its steelmaking coal supply chain for Teck shipments handled by Norden.

Note

(1) This is a non-generally accepted accounting principle financial measure or ratio.

Guidance:

• Its guidance is outlined in summary herein, and its usual guidance tables, including three-year production guidance, can be found on pages 28 to 32 of Teck's third quarter results for 2023.
• Its previously disclosed guidance has been updated for changes to its capital cost guidance for QB2, as outlined above, 2023 annual copper, molybdenum and steelmaking coal production guidance, noted below, and 2023 capitalized stripping guidance for its copper business unit.
• Its 2023 annual copper production guidance has decreased to 320,000 to 365,000 tonnes from 330,000 to 375,000 tonnes, driven by a localized geotechnical event at Highland Valley copper that occurred in August. Teck does not expect this geotechnical event to impact its annual production guidance beyond 2023. Its 2023 annual copper production guidance for QB2 is unchanged from its previously disclosed guidance of 80,000 to 100,000 tonnes although Teck expects to be at the lower end of this range.
• Its 2023 annual molybdenum production guidance has decreased to 3.0 million to 3.8 million pounds from 4.5 million to 6.8 million pounds due to the delay in the construction of the QB2 molybdenum plant, as outlined above.
• Due to plant challenges this year, Teck has reduced its 2023 annual steelmaking coal production guidance to 23.0 million to 23.5 million tonnes from 24.0 million to 26.0 million tonnes. Teck implemented a plant improvement initiative in the second and third quarters. Combined with the completed major maintenance outages, Teck is seeing improved plant performance in the fourth quarter, and it is well positioned for the rest of the year.

Webcast

Teck will host an investor conference call to discuss its Q3 2023 financial results at 8 a.m. Eastern Time or 5 a.m. Pacific Time on Oct. 24, 2023. A live audio webcast of the conference call, together with supporting presentation slides, will be available at the Teck website. The webcast will be archived at the Teck website.

Scientific and technical information in this quarterly report regarding Teck's coal properties was reviewed, approved and verified by Jo-Anna Singleton, PGeo, and Cameron Feltin, PEng, each an employee of Teck Coal Ltd. and a qualified person as defined under National Instrument 43-101. Scientific and technical information in this quarterly report regarding Teck's other properties was reviewed, approved and verified by Rodrigo Alves Marinho, PGeo, an employee of Teck and a qualified person as defined under National Instrument 43-101.

We seek Safe Harbor.