Mr. Jonathan Price reports

TECK REPORTS UNAUDITED FOURTH QUARTER RESULTS FOR 2023

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

"We had strong fourth quarter performance across our business, generating adjusted [earnings before interest, taxes, depreciation and amortization] of $1.7-billion in the quarter, returning cash to shareholders, and advancing ramp-up of our QB operations, resulting in Teck's record quarterly copper production," said Jonathan Price, president and chief executive officer. "We are well positioned to deliver on our strategic priorities in 2024 as we execute on the planned separation of our base metals and steelmaking coal businesses while significantly increasing our copper production."

Highlights:

• Adjusted EBITDA was $1.7-billion in Q4 2023 and $6.4-billion for the year, driven by robust prices for steelmaking coal and copper and higher steelmaking coal sales volumes. Profit from continuing operations before taxes was $694-million in Q4 2023 and $3.9-billion for the year.
• Adjusted profit attributable to shareholders was $735-million, or $1.41 per share, in Q4 2023, and $2.7-billion, or $5.23 per share, for the year. Profit from continuing operations attributable to shareholders was $483-million, or 93 cents per share, in Q4 2023, and $2.4-billion, $4.70 per share, for the year.
• Its liquidity as at Feb. 21, 2024, is $7.9-billion, including $2.5-billion of cash. It generated cash flows from operations of $1.1-billion in Q4, ending the year with a cash balance of $744-million.
• It returned a total of $765-million to shareholders in 2023 through the purchase of $250-million of Class B subordinate voting shares pursuant to its normal course issuer bid, and $515-million paid to shareholders as dividends. Since 2019, it has returned $3.9-billion to shareholders, including $2.5-billion of Class B subordinate voting share buybacks.
• On Feb. 21, 2024, the board authorized an up-to-$500-million share buyback, and approved the payment of its quarterly base dividend of 12.5 cents per share payable on March 28, 2024, to shareholders of record on March 15, 2024.
• Teck achieved record quarterly copper production in Q4 2023. Production and sales volumes in its copper and zinc business units were higher than the same period last year. Quebrada Blanca production of copper in concentrate was 34,300 tonnes in the fourth quarter and 55,500 tonnes for the year with QB operating near design throughput capacity at the end of 2023.
• Its steelmaking coal business generated $1.4-billion of gross profit before depreciation and amortization in Q4 with strong sales volumes of 6.1 million tonnes and realized steelmaking coal prices that averaged $270 (U.S.) per tonne.
• On Nov. 13, 2023, it announced a transformational transaction to further focus its portfolio on base metals and copper growth, with the full sale of its steelmaking coal business Elk Valley Resources (referred to as EVR). A majority stake in EVR will be sold to Glencore PLC at an implied enterprise value of $9.0-billion (U.S.), and a minority stake was sold to Nippon Steel Corp. and Posco.
• The transactions with NSC and POSCO closed on Jan. 3, 2024, with NSC paying $1.3-billion (U.S.) in cash on closing.
• Teck continued to progress its copper growth portfolio in the fourth quarter with the HVC mine life extension project completing the feasibility study and submitting the permit application to the B.C. regulatory agencies in October, 2023, and permit submission to the Mexican regulatory authorities for San Nicolas in January, 2024.

Key updates

Executing on its copper growth strategy:

• At QB, its focus in the fourth quarter was on achieving reliable and consistent operations. This took longer than expected to achieve, and, as a result, production was lower than expected. However, by the end of December, QB was operating near design throughput capacity, and ramp-up continues in 2024, with no change in its previously disclosed annual production guidance.
• At various points during the second half of 2023, each of the operations at QB, including mine operations, crushing, grinding, flotation, tailings, desalination and concentrate handling, operated at or above design capacity.
• On the QB2 project, construction of the molybdenum plant was substantially complete at the end of 2023, and commissioning is well under way. Ramp-up of the molybdenum plant is expected to be completed by the end of the second quarter of 2024. Additionally, all in-water works at the port have been concluded, and it remains on track to finalize the construction of the offshore facilities at the port by the end of the first quarter of 2024.
• Its previously disclosed QB2 project capital cost guidance is unchanged at $8.6-billion (U.S.) to $8.8-billion (U.S.) with $500-million (U.S.) to $700-million (U.S.) expected to be spent in 2024.
• Teck continues to advance its copper growth portfolio with completion of the feasibility study at its HVC mine life extension and further progression of the feasibility studies at its San Nicolas and Zafranal projects.
• It submitted the environmental permit for the HVC mine life extension to the B.C. regulator in October, 2023, and finalized a Mexican environmental impact assessment (MIA-R) for San Nicolas, which was submitted in January, 2024.
• On Feb. 14, 2024, approval of the modification of the environmental impact assessment (MEIA) for the mine life expansion at Antamina was received.

Safety and sustainability leadership:

• Its high-potential-incident frequency rate for 2023 remained low at 0.14 but was elevated compared with 2022. In response, it has investigated each incident, shared learnings across the organization and enhanced safety standards focused on managing high-potential risk and related critical controls.
• Its QB and Carmen de Andacollo operations were awarded the Copper Mark in December, and in February, 2024, its Red Dog operations were awarded the Zinc Mark in recognition of environmentally and socially responsible operating practices.
• It announced an agreement with shipping company Oldendorff Carriers GmbH & Co. KG to use wind propulsion intended to reduce carbon dioxide emissions in its steelmaking coal supply chain. The joint investment will see the vessel Dietrich Oldendorff outfitted with a Flettner Rotor sail system by mid-2024 with emission savings expected to be in the range of 53 per cent from baseline.
• Teck was named to the S&P Dow Jones Sustainability World Index for the 14th consecutive year, indicating that it is in the top 10 per cent of the largest 2,500 companies in the S&P Global Broad Market Index based on long-term economic, environmental and social criteria. It was ranked as one of Canada's top-100 employers in November and recognized in January as one of the 2024 global 100 most sustainable corporations by Corporate Knights.

Guidance:

• On Jan. 15, 2024, it disclosed its 2024 guidance, which is unchanged in this news release.
• Its guidance is outlined in summary herein, and its usual guidance tables, including three-year production guidance, can be found on pages 26 to 31 of Teck's fourth quarter results for 2023.

Webcast

Teck will host an investor conference call to discuss its Q4 2023 financial results at 11 a.m. Eastern Time or 8 a.m. Pacific Time on Feb. 22, 2024. A live audio webcast of the conference call, together with supporting presentation slides, will be available at its website. The webcast will be archived at the Teck website.

Scientific and technical information in this quarterly report regarding its 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 its 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.