Teck Resources Limited Q1 FY2026 earnings call

• Strong first quarter financial results with adjusted EBITDA more than doubling to $2.1 billion, driven by record copper sales volumes, higher commodity prices, and optimized feed strategy in Trail Operations. - Merger of equals with Anglo American obtained regulatory approval from South Korea, approval from China is advancing, and integration planning is ongoing. - Strong safety performance with high potential incident frequency rate at Teck Resources Limited - controlled operations at 0.05 in Q1. - QB delivered robust performance with 56,000 tonnes production, record quarterly copper sales, and progress on TMF including completion of Rock Bench 4. - Highland Valley mine life extension project detailed engineering over 90% complete, procurement nearing completion, and $188 million invested in Q1.

Copper: In Q1 2026, gross profit before depreciation and amortization increased 158% to $1.8 billion, driven by record quarterly average copper prices, copper sales volumes, and lower net cash unit costs. Copper production increased 32% to 140,000 tonnes. Annual guidance for 2026 - 2028 is unchanged. Zinc: Gross profit before depreciation and amortization increased 72% to $387 million in Q1, driven by higher commodity prices and optimized feed strategy. Zinc production at Red Dog was 106,000 tonnes with lower grades, and refined zinc production at Trail Operations increased. Annual guidance for 2026 - 2028 is unchanged.

• No changes to previously disclosed annual guidance. - For copper segment, 2026 copper production expected to be 455,000 - 530,000 tonnes. - Zinc segment guidance unchanged, with expected zinc in concentrate production of 410,000 - 460,000 tonnes and refined zinc production of 190,000 - 230,000 tonnes in 2026. - Capital guidance for Highland Valley mine life extension project unchanged at $2.1 - $2.4 billion overall. - Net cash unit cost guidance for copper and zinc unchanged, with sensitivities to by - products and WTI prices.

• Current conflict in the Middle East results in inflationary and supply chain risks, largely from diesel prices and diesel imports into Chile. - Regulatory approvals for merger with Anglo American need to be fully secured, and any delays could impact the transaction timeline. - Progress of TMF development at QB and Highland Valley mine life extension project could face unforeseen challenges that may affect timelines and costs.

Q: On QB, outline key factors driving timing of permanent infrastructure installation and if it poses risk to production guidance.

A: Primary drivers are progression to tailings dam steady state by year - end. Once achieved, operating window for infrastructure installation will be found, likely in 2027. Poses no risk to production guidance.

Q: On Trail asset, sustainable level of EBITDA moving forward.

A: Dependent on commodity prices, TC environment, FX rates, and feedstock. By - products drive profitability in the quarter.

Q: On merger with Anglo, progress with Chinese regulators and TSX index inclusion.

A: Interactions with Chinese regulator are normal, twelve to eighteen months from announcement still expected for closing. Positive momentum on TSX index inclusion, consultation process ongoing.

Q: On QB tailings dam capacity and NPI at Fourmile.

A: Rock Bench 5 expected to be completed in Q2, unconstrained by tailings capacity thereafter. No specific plans to monetize NPI at Fourmile currently.

Q: On JV between QB and Collahuasi and Highland Valley grade cadence.

A: Lots of work on QB - Collahuasi JV with scoping studies, permitting strategies, etc. Highland Valley grades expected to have some reduction, with downtime in second half related to mine life extension project, but guidance unchanged.