Mr. Jonathan Price reports

TECK REPORTS UNAUDITED FIRST QUARTER RESULTS FOR 2024

Teck Resources Ltd. has released its unaudited first quarter results for 2024.

"All outstanding major construction at our QB operation was completed in the first quarter, including the shiploader and molybdenum plant, and we marked the first shipment of concentrate from the completed port facility," said Jonathan Price, president and chief executive officer. "We had strong first quarter performance across our business, generating $1.7-billion of adjusted [earnings before interest, taxes, depreciation and amortization] with steadily increasing quarterly copper production as QB ramp-up advances and we continued to return cash to shareholders."

Highlights:

• Adjusted EBITDA of $1.7-billion in Q1 2024 was driven by strong prices for steelmaking coal and copper, partly offset by lower zinc prices and lower steelmaking coal sales volumes. Profit from continuing operations before taxes was $741-million in Q1 2024.
• Adjusted profit from continuing operations attributable to shareholders was $392-million, or 76 cents per share, in Q1 2024. Profit from continuing operations attributable to shareholders was $343-million, or 66 cents per share, in Q1 2024.
• Liquidity as at April 24, 2024, is $7.1-billion, including $1.6-billion of cash. Excluding the payment of income taxes of $1.3-billion, primarily related to prior years that was anticipated, Teck generated cash flows from operations of $1.4-billion in Q1, ending the first quarter with a cash balance of $1.3-billion.
• Teck returned a total of $145-million to shareholders in the first quarter through the purchase of $80-million of Class B subordinate voting shares pursuant to its normal course issuer bid and $65-million paid to shareholders as dividends.
• Copper production increased 74 per cent to 99,000 tonnes in the first quarter, with QB producing 43,300 tonnes. QB production was higher than the fourth quarter of 2023, as the operation continues to ramp up. Average copper prices were $3.83 (U.S.) per pound in the first quarter, and following quarter-end, spot copper prices reached two-year highs, trading in excess of $4.40 (U.S.) per pound.
• At QB, construction was completed, and demobilization of the construction work force was substantially advanced by the end of the quarter. Teck loaded its first vessel using the shiploader, and the molybdenum plant will be ramped up in the second quarter of 2024.
• Zinc in concentrate production increased by 10 per cent to 159,800 tonnes in the first quarter, and sales from Red Dog of 84,600 tonnes were within Teck's previously disclosed guidance.
• The steelmaking coal business unit generated $1.4-billion in gross profit before depreciation and amortization in Q1, with sales volumes of 5.9 million tonnes and an average realized steelmaking coal price of $297 (U.S.) per tonne.
• Teck closed the sale of the 20-per-cent minority interest in Elk Valley Resources, its steelmaking coal business, to Nippon Steel Corp. on Jan. 3, 2024, with NSC exchanging its 2.5-per-cent interest in Elkview operations, paying $1.3-billion (U.S.) in cash on closing, plus $400-million (U.S.) to be paid to Teck from EVR cash flows. Also, on Jan. 3, 2024, Posco exchanged its 2.5-per-cent interest in Elkview operations and its 20-per-cent interest in the Greenhills joint venture for a 3-per-cent interest in EVR.

Key updates

Executing on the copper growth strategy:

• Construction of QB was completed, and demobilization of contractors was substantially advanced at the end of the quarter.
• Teck loaded its first vessel of QB concentrate using the shiploader, and the molybdenum plant will be ramped up in the second quarter of 2024.
• Its QB2 project capital cost guidance is unchanged at $8.6-billion (U.S.) to $8.8-billion (U.S.).
• Copper production at QB was 43,300 tonnes during the first quarter, an increase from the fourth quarter as ramp-up continues. Its previously disclosed annual production and unit cost guidance for QB is unchanged.
• Teck continued to advance its industry-leading copper growth portfolio, with a focus on completing feasibility studies, advancing detailed engineering work, project execution planning and progressing permitting, particularly at the HVC mine life extension, San Nicolas and Zafranal.

Safety and sustainability leadership:

• Teck's high-potential incident frequency rate was 0.06 in the first quarter, lower than the same period in 2023.
• Teck released its 23rd annual sustainability report, outlining Teck's 2023 sustainability performance, including progress in areas such as decarbonization, diversity and working toward a nature positive future.

Guidance:

• There has been no change to its previously disclosed guidance. Its guidance is outlined in summary herein, and its usual guidance tables, including three-year production guidance, can be found on pages 25 to 29 of Teck's first quarter results for 2024.

Webcast

Teck will host an investor conference call to discuss its Q1 2024 financial results at 11 a.m. Eastern Time, 8 a.m. Pacific Time, on April 25, 2024. 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 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.