Teck Resources Limited Q4 FY2024 earnings call

• 2024 Highlights: Completed sale of steelmaking coal business, returned $1.8 billion to shareholders, reduced debt by $2.5 billion, set record copper production, enhanced balance sheet, and advanced value-accretive growth projects.
• QB Performance: QB delivered strongest quarter in Q4 2024, achieved design throughput, copper production increased, and 2025 guidance is 230 to 270 thousand tons with reduced unit costs.
• Sustainability: Maintained low high potential incident frequency, released 2024 climate change and nature report, received sustainability recognitions.
• Capital Allocation: Focus on value-accretive near-term copper projects, guidance for 2025 capital expenditure, and commitment to returning cash to shareholders.

Copper Segment

• In 2024, copper production was 446,000 tons, a 50% increase from the prior year. Q4 2024 gross profit before depreciation and amortization from the copper segment more than doubled to $732 million.
• 2025 copper production is expected to grow to 490 to 565 thousand tons from 446 thousand tons in 2024, with net cash unit cost expected to be $1.65 to $1.95 US dollars per pound.

Zinc Segment

• 2024 gross profit before depreciation and amortization from the zinc segment more than doubled. Red Dog had strong performance but production declined in Q4 due to cost improvements.
• 2025 zinc in concentrate production guidance is 525 to 575 thousand tons, with net cash unit cost expected to be between US 45 cents and 55 cents per pound.

• Copper: Expected production growth to 490-565 thousand tons in 2025, net cash unit cost reduction to $1.65-$1.95 per pound.
• QB: 2025 guidance 230-270 thousand tons, net cash unit cost reduction to $1.80-$2.15 per pound.
• Zinc: 2025 zinc in concentrate production guidance 525-575 thousand tons, net cash unit cost between 45-55 cents per pound.

• Economic and Political Uncertainty: Global economic uncertainty and potential trade restrictions (e.g., US-Canada tariffs) could impact business.
• Regulatory and Permitting Delays: Delays in permitting for projects like Highland Valley mine life extension and San Nicolas could affect capital allocation and growth.

Q: Color on QB2 ramp and maintenance shutdowns A: Ramp-up progressing well, January shutdown reflected in guidance, quarterly shutdowns expected.

Q: Capital allocation and M&A A: Focus on value creation, strong balance sheet, share buybacks, and organic growth projects.

Q: QB costs and Collahuasi tie-up A: Costs to normalize with production ramp, Collahuasi discussions ongoing for value unlock.

Q: Highland Valley permit and Red Dog road A: Permitting progressing with BC support, Red Dog road permit included in growth capital.

Q: Zinc capital allocation and Trail operations A: Holistic capital allocation, Trail strategic but focused on profitability