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Third Quarter 2014 Results – Teck Resources Limited

Teck Resources Limited · Oct 29, 2014 · 18 slides

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Slides

  1. Third Quarter 2014 Results – Teck Resources Limited – slide 1
    Third Quarter 2014 Results October 29, 2014
  2. Third Quarter 2014 Results – Teck Resources Limited – slide 2
    Continuing to Execute Well Updated 2014 guidance ranges - Higher zinc mine production - Higher mid-points for coal & copper production - Lower mid-points for coal & copper costs Planned 2014 capex reduced by 375M Cost reduction…
  3. Third Quarter 2014 Results – Teck Resources Limited – slide 3
    Q3 2014 Operational Highlights Operations are performing well - Coal production increased in Q3, and 1 Mt higher year-to-date - Record coal production at Elkview and Greenhills in Q3 and year-to-date - Zinc in concentrate production…
  4. Third Quarter 2014 Results – Teck Resources Limited – slide 4
    Profitability Impacted By Significantly Lower Steelmaking Coal Prices Q3 To (M) Zinc Gross Profit1 (M) 2014 Q3 2013 270 Gross profit1 750 169 183 EBITDA 651 164 Profit attributable Benefiting from improving zinc to…
  5. Third Quarter 2014 Results – Teck Resources Limited – slide 5
    Steelmaking Coal Sales (Mt) Realized Price (C/tonne) Revenue (CM) 7.5 144 1,088 6.7 119 2nd 798 highest sales achieved in Q3 Q3 2013 Q3 2014 Q3 2013 Q3 2014 Q3 2013 Q3 2014 Production (Mt) Unit Costs (C/tonne) Gross…
  6. Third Quarter 2014 Results – Teck Resources Limited – slide 6
    Further Cuts Needed in the Steelmaking Coal Market Seaborne Metallurgical Coal Margin Curve at Spot Price of US115/t 25 Mt of production cuts announced - Lag to full implementation - Market imbalance 10 to 15 Mt Teck Margin…
  7. Third Quarter 2014 Results – Teck Resources Limited – slide 7
    Copper Sales (kt) Realized Price (US/lb) Revenue (CM) 95 3.23 3.17 714 82 628 Q3 2013 Q3 2014 Q3 2013 Q3 2014 Q3 2013 Q3 2014 Production (kt) Total Cash Unit Costs1 (US/lb) Gross Profit2 (CM) 91 318 1.73 292 78 1.64…
  8. Third Quarter 2014 Results – Teck Resources Limited – slide 8
    Zinc Zinc Sales (kt) Zinc Realized Price (US/lb) Revenue (CM) Conc1 Refined 1.04 183 823 174 78 0.84 721 70 Q3 2013 Q3 2014 Q3 2013 Q3 2014 Q3 2013 Q3 2014 Q3 2013 Q3 2014 Zinc Production (kt) Lead Production (kt) Gross…
  9. Third Quarter 2014 Results – Teck Resources Limited – slide 9
    Base Metals Markets in Deficit* 395 LME COPPER Prices 800 LME COPPER Stocks 375 2012 360.6 US/lb 2013 332.1 US/lb 600 Thousands 355 2014 314.0 US/lb 400 Copper 2013 335 ICSG forecasts 200 315 a deficit of 307 kt 295 0 for…
  10. Third Quarter 2014 Results – Teck Resources Limited – slide 10
    Fort Hills Project Update Project achieving and tracking key milestones Engineering activity 50% complete Construction manpower 3k strong 4.5B in major contracts let in the quarter - Secondary extraction: 2.6B - Utilities: 1.5B…
  11. Third Quarter 2014 Results – Teck Resources Limited – slide 11
    Cash Flow & Liquidity Cash Changes in Q3 2014 3000 +492 +62 (343) 2500 (145) (156) 2,131 (16) (259) 2000 87 1,853 Millions 1500 1000 500 0 Cash - start of Cash flow from Working capital PP&E, incl. Capitalized…
  12. Third Quarter 2014 Results – Teck Resources Limited – slide 12
    Investment Grade Credit Rating Our long-term targets are consistent with Long-Term maintaining mid-BBB credit rating Ratio Target Ratios may vary from targets periodically, Debt to Debt+Equity 30% reflecting commodity price…
  13. Third Quarter 2014 Results – Teck Resources Limited – slide 13
    Pricing Adjustments Outstanding at Outstanding at June 30, 2014 September 30, 2014 Pounds (M) US/lb Pounds (M) US/lb Copper 225 3.15 224 3.04 Zinc 75 1.00 164 1.04 Negative pricing adjustments of 28M in Q3 2014 Simplified…
  14. Third Quarter 2014 Results – Teck Resources Limited – slide 14
    Significant Reductions in Operating Costs and Capex Total of 590M of annualized operating cost reductions realized since 2H2012 Capital spending plans for 2014 reduced significantly from the start of the year, to 1.5B 15
  15. Third Quarter 2014 Results – Teck Resources Limited – slide 15
    2014 Outlook UPDATED (October 29, 2014) Production & Site Cost Guidance Guidance Steelmaking Coal Coal production 26.5-27 Mt Coal site costs C52-55 /t Coal transportation costs C37-39 /t Coal costs combined* US79-84 /t Copper…
  16. Third Quarter 2014 Results – Teck Resources Limited – slide 16
    Near-Term Priorities Cost management program continues Capital spending reduced for 2014 Executing restart of Pend Oreille 17
  17. Third Quarter 2014 Results – Teck Resources Limited – slide 17
    Investor Relations Contacts www.teck.com/investor investorsteck.com Telephone: +604-699-4257 or Toll-free (Canada & US) 1-877-759-6226 Best Investor Relations In Sector: Materials 18
  18. Third Quarter 2014 Results – Teck Resources Limited – slide 18
    Third Quarter 2014 Results October 29, 2014

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