Teck Resources (TECK) Investor Update summary

Strategic transformation and merger outlook

• Transitioned from coal and energy to a leading energy transition metals business, with copper now over 70% of production and a 55% increase in copper output since 2022.

• Announced a merger of equals with Anglo American, aiming to create a top five global copper producer with over 1.2 million tonnes of annual copper production, growing to about 1.35 million tonnes by 2027.

• The merger is expected to unlock $1.4 billion in annual EBITDA uplift and $800 million in recurring annual pre-tax synergies, with Teck shareholders holding 37.6% of the new entity.

• The combined company will have a strong balance sheet, enhanced capital markets footprint, and be positioned for a potential market re-rating.

• Merger timeline targets closing between September 2026 and March 2027, subject to regulatory and shareholder approvals.

QB operations update and value creation

• QB is a Tier 1, multi-generational copper asset with a large resource base, robust design, and high-quality, clean concentrate.

• Mill throughput and recoveries at QB are meeting expectations as of October, with strong asset utilization and throughput supporting 2026 guidance.

• TMF development is progressing with new cyclone technology, paddock redesign, and rock bench construction, targeting steady-state operations by 2026–2027.

• Shiploader repairs are on track for Q1 2026 completion, with no impact on sales or inventory.

• Ongoing initiatives focus on mine fleet efficiency, mill availability, geometallurgical testing, and advanced process control to optimize recoveries and costs.

Financial outlook and capital allocation

• Achievable operating plans and revised guidance are based on proven performance, with a focus on stabilizing and optimizing assets.

• Unit costs are expected to decline as QB ramps up, with 2026 net cash unit cost guidance of US$2.25–2.70/lb and capital expenditures set to decrease by 45% after major projects are completed.

• Strong balance sheet with over CAD 5 billion in cash, minimal net debt, and significant cash returns to shareholders totaling CAD 5.7 billion since 2022.

• At current spot prices, annual EBITDA could reach $5.5 billion, with $4.2 billion in operating cash flow; tax stability at QB through 2037 supports cash flow resilience.

• Near-term capital profile declining, with major TMF investments in 2026 and no further TMF capital expected in 2027.