Teck Resources (TECK) Status Update summary

Strategic focus and transformation

• Transitioned to a pure-play energy transition metals company, exiting oil sands and steelmaking coal, and focusing on copper and zinc assets in stable jurisdictions to meet global decarbonization and electrification demand.

• Strategy centers on four pillars: providing metals for the energy transition, core operational excellence, value-driven growth, and resilience through market cycles.

• Portfolio now consists of world-class copper and zinc assets in established jurisdictions, with 70% of EBITDA from Tier 1 assets (QB, Antamina, Red Dog).

• Clear path to double copper production, targeting 800,000 tonnes per year before decade's end, supported by a robust pipeline of brownfield and greenfield projects.

• Significant modernization of share structure and delivery of substantial cash returns to shareholders.

Operational excellence and sustainability

• Regional operating model and standardized management systems leverage local expertise, driving improvements in reliability, safety, and cost discipline.

• Technology adoption (autonomous haulage, machine learning, ore sorting, digital analytics) enhances productivity and cost efficiency.

• Health and safety performance improved, with a 41% reduction in recordable injury frequency and a strong safety culture.

• Sustainability leadership with all operations certified to Copper Mark and Zinc Mark, net zero Scope 1 & 2 emissions targeted by 2050, and strong Indigenous and community engagement.

• Trail Operations recognized for low-carbon zinc production and recycling initiatives, supporting vertical integration.

Growth pipeline and project execution

• Four priority copper projects: QB optimization/debottlenecking, Highland Valley mine life extension, Zafranal (Peru), and San Nicolás (Mexico), targeting sanctioning as early as 2025.

• QB optimization aims for a 15–25% throughput increase at low capital intensity ($100M–$200M), with further expansion options under study.

• Highland Valley Copper Mine life extension to mid-2040s, with estimated 137 ktpa copper post-2024.

• Zafranal and San Nicolás are lower-risk, capital-competitive greenfields, with strong local partnerships and permitting progress; Zafranal targets 126 ktpa copper, San Nicolás expects 63 ktpa copper and 147 ktpa zinc over first five years.

• Total attributable capital for these projects is $3.2B–$3.9B, with capital intensity well below recent copper sector M&A benchmarks.