UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of January 2024
Commission File Number: 001-13184
TECK RESOURCES LIMITED
(Exact name of registrant as specified in its
charter)
Suite 3300 – 550 Burrard Street
Vancouver, British Columbia V6C 0B3
(Address of principal executive offices)
Indicate by check mark whether
the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☐ Form
40-F ☒
EXHIBIT INDEX
SIGNATURE
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
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Teck Resources Limited |
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(Registrant) |
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Date: January 16, 2024 |
By: |
/s/ Amanda R. Robinson |
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Amanda R. Robinson |
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Corporate Secretary |
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EXHIBIT 99.1
For Immediate Release |
Date: January 15, 2024 |
24-7-TR |
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Teck
Announces 2023 Production and 2024 Guidance Update
Vancouver, B.C. – Teck Resources Limited (TSX: TECK.A and TECK.B,
NYSE: TECK) (“Teck”) today provided select unaudited fourth quarter 2023 production and sales volumes, annual production volumes
for 2023, as well as operational and capital guidance for 2024 and production guidance for 2025 to 2027.
Our fourth quarter 2023 financial results are scheduled for release on February
21, 2024.
2023 Production Results
The table below shows a summary of Teck’s share of unaudited production
and sales of principal products for the fourth quarter of 2023, and 2023 annual production as compared to our previously disclosed annual
guidance. Our 2023 annual production was impacted by a number of challenges across our operations through the year, as outlined below.
In our steelmaking coal business unit, production was higher than our previously disclosed guidance. Production in our base metals business
was lower than the bottom end of our previously disclosed guidance ranges.
| • | Copper production of 296,500 tonnes was impacted by a slower ramp-up at QB2,
as well as a localized geotechnical fault at Highland Valley Copper in August that has been stabilized. |
| • | Zinc in concentrate production of 644,000 tonnes was marginally below the
low end of guidance as a result of weather-related issues in the first quarter, and equipment failures at Red Dog. |
| • | Refined zinc production of 266,600 tonnes was slightly below guidance due
to weather-related impacts in the first quarter as well as concentrate supply issues in the third quarter and beginning of the fourth
quarter. |
| • | Steelmaking coal production of 23.7 million tonnes was higher than the top
end of guidance due to strong performance in the fourth quarter as improvements in plant performance led to an increase in production. |
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Q4 2023 |
2023 |
2023 Guidance1 |
(Units in 000’s tonnes excluding steelmaking coal) |
Sales |
Production |
Production |
Production |
Copper |
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Highland Valley Copper |
26.2 |
29.8 |
98.8 |
100 - 108 |
Antamina (22.5%) |
26.5 |
27.1 |
95.3 |
90 - 97 |
Carmen de Andacollo |
11.5 |
10.2 |
39.6 |
40 - 50 |
Quebrada Blanca2 |
37.0 |
36.4 |
62.8 |
90 - 110 |
|
101.2 |
103.5 |
296.5 |
320 - 365 |
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Zinc |
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Red Dog |
134.8 |
155.3 |
539.8 |
545 - 575 |
Antamina (22.5%) |
29.3 |
26.5 |
104.2 |
100 - 110 |
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164.1 |
181.8 |
644.0 |
645 - 685 |
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Refined zinc |
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Trail Operations |
68.1 |
69.9 |
266.6 |
270 - 290 |
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Steelmaking coal (million tonnes) |
6.1 |
6.4 |
23.7 |
23.0 - 23.5 |
Notes:
| 1. | Guidance
as of October 23, 2023. |
| 2. | Includes
copper cathode production in 2023. |
Reference: |
Fraser
Phillips, Senior Vice President, Investor Relations and Strategic Analysis |
604.699.4621 |
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Chris Stannell, Public Relations Manager |
604.699.4368 |
Additional
corporate information is available at www.teck.com.
Guidance
Our production, unit cost and capital expenditure guidance for 2024, and
annual production guidance for 2025-2027 is outlined in the tables below. The guidance ranges below reflect our operating plans, which
include known risks and uncertainties. Events such as extreme weather, unplanned operational shut-downs and other disruptions could impact
actual results beyond these estimates. Our unit costs are calculated based on production volumes and any variances from estimated production
ranges will impact unit costs.
We have included range-based guidance for all categories of guidance disclosed
and have provided further annual detail for our three-year production guidance to outline expected production fluctuations within that
period.
Annual 2024 guidance and three-year production guidance has been provided
for our steelmaking coal business. The guidance is on a 100% basis and reflects the exchange of minority interests by NSC of 2.5% in Elkview
Operations and by POSCO of 2.5% in Elkview Operations and 20% in the Greenhills joint venture. Closing of the sale of the remaining interest
(77%) in Elk Valley Resources to Glencore plc is expected to occur in the third quarter of 2024, subject to the satisfaction of customary
conditions, including receipt of approval under the Investment Canada Act and competition approvals in several jurisdictions.
We remain highly focused on managing our controllable operating expenditures.
However, in line with the broader mining industry, we continue to face inflationary cost pressures across our business, which have increased
our operating costs and capital expenditure compared to prior years. While our underlying key mining drivers such as strip ratios and
haul distances remain relatively stable, inflationary pressures on key input costs are expected to persist through 2024. Pressures
on the cost of certain key supplies, including mining equipment, labour and contractors, as well as energy costs in Chile and changing
diesel prices, are reflected in our capital expenditure and annual unit cost guidance for 2024.
Production Guidance
The table below shows Teck’s share of unaudited production of our
principal products in 2023 and our guidance for 2024 and the next three years.
2 | Teck Resources Limited 2023 Production and 2024 Guidance Update |
(Units in 000’s of tonnes excluding steelmaking coal)
|
2023 |
2024 |
2025 |
2026 |
2027 |
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Actual |
Guidance |
Guidance |
Guidance |
Guidance |
Principal products |
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Copper |
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Quebrada Blanca |
62.8 |
230 - 275 |
280 - 310 |
280 - 310 |
280 - 310 |
Highland Valley Copper |
98.8 |
112 - 125 |
140 - 160 |
130 - 150 |
120 - 140 |
Antamina (22.5%) |
95.3 |
85 - 95 |
80 - 90 |
90 - 100 |
85 - 95 |
Carmen de Andacollo |
39.6 |
38 - 45 |
50 - 60 |
50 - 60 |
45 - 55 |
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296.5 |
465 - 540 |
550 - 620 |
550 - 620 |
530 - 600 |
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Zinc |
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Red Dog |
539.8 |
520 - 570 |
460 - 510 |
410 - 460 |
365 - 400 |
Antamina (22.5%) |
104.2 |
45 - 60 |
95 - 105 |
55 - 65 |
35 - 45 |
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644.0 |
565 - 630 |
555 - 615 |
465 - 525 |
400 - 445 |
Refined zinc |
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Trail Operations |
266.6 |
275 - 290 |
270 - 300 |
270 - 300 |
270 - 300 |
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Steelmaking coal
(million tonnes) |
23.7 |
24.0 - 26.0 |
24.0 - 26.0 |
24.0 - 26.0 |
24.0 - 26.0 |
Other products |
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Lead |
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Red Dog |
93.4 |
90 - 105 |
80 - 90 |
80 - 90 |
65 - 75 |
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Molybdenum |
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Quebrada Blanca |
— |
2.9 - 3.6 |
5.0 - 6.4 |
6.4 - 7.6 |
7.0 - 8.0 |
Highland Valley Copper |
0.6 |
1.3 - 1.6 |
1.8 - 2.3 |
2.3 - 2.8 |
2.7 - 3.2 |
Antamina (22.5%) |
0.8 |
1.2 - 1.5 |
0.7 - 1.0 |
0.7 - 1.0 |
0.9 - 1.2 |
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1.4 |
5.4 - 6.7 |
7.5 - 9.7 |
9.4 - 11.4 |
10.6 - 12.4 |
Sales Guidance
The table below shows our sales guidance for the first quarter of 2024 for
select products.
|
Q1 2023 |
Q1 2024 |
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Actual |
Guidance |
Zinc (000’s tonnes)1 |
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Red Dog |
89 |
70 - 85 |
Steelmaking coal (million tonnes) |
6.2 |
5.9 - 6.3 |
Note:
| 1. | Metal contained in concentrate. |
3 | Teck Resources Limited 2023 Production and 2024 Guidance Update |
Unit Cost Guidance
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2023 |
2024 |
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Guidance |
Guidance |
Copper1 |
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Total cash unit costs4 (US$/lb) |
2.05 - 2.25 |
2.15 - 2.35 |
Net cash unit costs3 4 (US$/lb) |
1.60 - 1.80 |
1.85 - 2.25 |
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Zinc2 |
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Total cash unit costs4 (US$/lb) |
0.68 - 0.78 |
0.70 - 0.80 |
Net cash unit costs3 4 (US$/lb) |
0.50 - 0.60 |
0.55 - 0.65 |
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Steelmaking coal |
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Adjusted site cash cost of sales4 (CAD$/tonne) |
88 - 96 |
95 - 110 |
Transportation costs (CAD$/tonne) |
45 - 48 |
47 - 51 |
Notes:
| 1. | Copper
unit costs include QB operations for 2024 and are reported in US dollars per payable pound
of metal contained in concentrate. Copper net cash unit costs include adjusted cash cost
of sales and smelter processing charges, less cash margins for by-products including co-products.
Guidance for 2024 assumes a zinc price of US$1.20 per pound, a molybdenum price of US$21
per pound, a silver price of US$23 per ounce, a gold price of US$1,930 per ounce, a Canadian/U.S.
dollar exchange rate of $1.32 and a Chilean Peso/U.S. dollar exchange rate of 850. |
| 2. | Zinc
unit costs are reported in U.S. dollars per payable pound of metal contained in concentrate.
Zinc net cash unit costs are mine costs including adjusted cash cost of sales and smelter
processing charges, less cash margins for by-products. Guidance for 2024 assumes a lead price
of US$0.95 per pound, a silver price of US$23 per ounce and a Canadian/U.S. dollar exchange
rate of $1.32. By-products include both by-products and co-products. |
| 3. | After
co-product and by-product margins. |
| 4. | This
is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures
and Ratios” for further information. |
Copper
Total copper production in 2024 is expected to significantly increase to
between 465,000 and 540,000 tonnes, compared to the 296,500 tonnes produced in 2023.
QB was operating near design throughput capacity at the end of 2023, and
this has continued into 2024. Recoveries have generally been in line with expectations and head grades remain within expected levels.
The operation will focus on reliability, consistency and increasing availability and we expect to produce between 230,000 and 275,000
tonnes in 2024. This is slightly lower than our previous three-year production guidance, as that guidance assumed all typical ramp-up
reliability issues would be addressed in 2023. Due to the delay in construction, some of these issues are expected to be resolved in the
first half of 2024. We expect QB to operate at design throughput in 2025 through 2027, with annual production guidance increasing to between
280,000 and 310,000 tonnes.
Highland Valley Copper production is expected to increase in 2024 as we
move into the Lornex pit, which is higher grade, and as a result of improved mill availability. Strong production is expected to continue
into 2025-2027 with higher ore grade and throughput from treating Lornex material during this period.
Our share (22.5%) of copper production at Antamina remains stable and consistent
with our previously disclosed guidance in 2024 and the following three years.
Carmen de Andacollo continues to face extreme drought conditions, causing
water restrictions which impact production, with 2024 production expected to be similar to 2023. Steps are being taken to mitigate these
risks, with
4 | Teck Resources Limited 2023 Production and 2024 Guidance Update |
a solution likely to be in place in 2025. As a result, and with the benefit of higher grade ore, production is expected to
increase between 2025 and 2027, compared to 2024.
Copper net cash unit costs1 after by-product credits, including
QB, are expected to be between US$1.85 - 2.25 per pound in 2024. This is higher than our 2023 guidance as a result of ongoing inflationary
impacts on the cost of certain key supplies including mining equipment, tires, labor and contractors persisting into 2024 and now embedded
in our key supply contracts.
QB net cash unit costs1 after by-product credits are expected
to be US$1.95 - 2.25 per pound in 2024. Unit costs are expected to remain elevated in 2024, especially in the first half of 2024, due
to alternative logistics costs required as a result of the delay in port construction into the first half of this year, no molybdenum
production in the first quarter due to delay in the molybdenum plant construction, and lower copper production driven by the final required
shutdowns during the first quarter. Compared to previous guidance, QB has experienced inflationary pressures, including increased pass
through costs from the Chilean energy grid regulator. Once QB is at steady state of operation, we will provide additional unit cost guidance.
Zinc
Total zinc in concentrate production in 2024 is expected to be between 565,000
and 630,000 tonnes, compared to 644,000 tonnes in 2023. Production over the next three-year period is expected to decrease due to declining
grades at Red Dog and lower zinc production at Antamina.
Red Dog is expected to produce between 520,000 to 570,000 tonnes in 2024.
Annual production from Red Dog is expected to decrease between 2025 and 2027 due to declining grades as we enter the later stages of the
current mine life at Red Dog.
Our share (22.5%) of zinc production at Antamina is expected to be between
45,000 and 60,000 tonnes in 2024, compared to 104,200 tonnes in 2023. Based on Antamina’s mine plan, the ore processed in 2024 delivers
higher copper production and lower zinc production compared to that of 2023. The mine plan over 2025 to 2027 produces more zinc in 2025
with a reduction in line with the long-term mine plan in 2026 and 2027.
Refined zinc production is expected to be between 275,000 to 290,000 tonnes
in 2024, compared to 266,600 tonnes in 2023. Production is expected to increase in 2024 as a result of improved concentrate availability.
The previously disclosed KIVCET boiler replacement at our Trail Operations will progress in Q2 2024, primarily impacting the lead circuit
and with minimal impact in the zinc circuit.
Zinc net cash unit costs1 after by-products in 2024 are expected
to be US$0.55 - 0.65 per pound, slightly higher than our 2023 guidance as a result of ongoing inflationary impacts on the cost of certain
key supplies.
Steelmaking Coal
Steelmaking coal production in 2024 is expected to be between 24.0 to 26.0
million tonnes compared to 23.7 million tonnes produced in 2023. Production is expected to remain at these levels throughout 2025 to 2027.
Note:
| 1. | This
is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures
and Ratios” for further information. |
5 | Teck Resources Limited 2023 Production and 2024 Guidance Update |
We expect our 2024 steelmaking coal adjusted site cash cost of sales1
in 2024 to be between $95 - $110 per tonne. Relative to our 2023, we anticipate ongoing inflationary cost impacts of certain key supplies
to persist into 2024
including higher energy and maintenance parts, as well as higher contractor
and labour costs. Transportation unit costs are expected to be $47 - 51 per tonne in 2024.
Capital Expenditure Guidance
Our 2024 capital expenditures are expected to significantly decrease from
2023 guidance levels, primarily driven by lower spending on QB2 development capital, as we near completion of the project.
At QB2, the construction of the molybdenum plant was substantially completed
in December 2023, and commissioning has commenced. Ramp-up of the molybdenum plant is expected to be completed by the end of the second
quarter of 2024. Construction of the port offshore facilities is progressing to plan and is expected to be completed by the end of the
first quarter of 2024. The last jetty pile was completed in December, representing a major milestone in the port construction. Our previously
disclosed QB2 project capital cost guidance is unchanged at US$8.6 to $8.8 billion, with US$500 to 700 million expected to be spent in
H1 2024. There are no further capitalized ramp-up costs expected in 2024.
Sustaining capital expenditure in 2024 is expected to increase marginally
above 2023 guidance levels both in our zinc business unit as we complete boiler repairs at our Trail Operations, and in our steelmaking
coal business, as the Elkview Operations’ administration and maintenance complex project reaches the peak of its execution plan.
Capitalized stripping costs in 2024 are expected to decrease from 2023 guidance
levels, which were a notable peak period of capitalized stripping to advance the development of mine pits to support future production
in our steelmaking coal business.
Growth capital, excluding QB2 development capital, is prioritized on our
copper growth projects and as we focus on completing feasibility studies, advancing detailed engineering work, project execution planning,
and progressing permitting, particularly at the Highland Valley Copper life extension project (previously, HVC2040), San Nicolás
and Zafranal. In addition, we will work to define the most capital efficient and value-adding pathway for the expansion of QB based on
the performance of the existing asset base. We also expect to continue to progress our medium to long-term portfolio options with prudent
investments to advance the path to value.
As previously disclosed, we do not expect to sanction any growth projects
in 2024 and we are focused on advancing near-term projects for possible sanctioning in 2025. Growth projects are required to deliver an
attractive risk-adjusted return and will compete for capital in line with Teck’s capital allocation framework.
Note:
| 1. | This
is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures
and Ratios” for further information. |
The table below shows our capital expenditure guidance for 2023 and 2024.
6 | Teck Resources Limited 2023 Production and 2024 Guidance Update |
| |
2023 | |
2024 |
(Teck’s
share in CAD$ millions) | |
Guidance | |
Guidance |
Sustaining | |
| |
|
Copper1 | |
$ | 510 | |
$ | 495 - 550 |
Zinc | |
| 150 | |
| 190 - 210 |
Steelmaking coal2 | |
| 760 | |
| 800 - 1,000 |
| |
$ | 1,420 | |
$ | 1,485 - 1,760 |
Growth | |
| | |
| |
Copper3 4 | |
$ | 250 | |
$ | 400 - 460 |
Zinc | |
| 80 | |
| 100 - 130 |
Steelmaking coal | |
| 30 | |
| — |
| |
$ | 360 | |
$ | 500 - 590 |
Total | |
| | |
| |
Copper | |
$ | 760 | |
$ | 895 - 1,010 |
Zinc | |
| 230 | |
| 290 - 340 |
Steelmaking coal | |
| 790 | |
| 800 - 1,000 |
| |
$ | 1,780 | |
$ | 1,985 - 2,350 |
QB2 capital expenditures | |
| 2,200 - 2,400 | |
| 700 - 900 |
Total before SMM and SC | |
$ | 3,980 - 4,180 | |
$ | 2,685 - 3,250 |
Estimated SMM and SC contributions to capital expenditures | |
| (850) - (920) | |
| (270) - (340) |
Total, net of partner contributions | |
$ | 3,130 - 3,260 | |
$ | 2,415 - 2,910 |
Notes:
| 1. | Copper sustaining capital includes QB operations. |
| 2. | Steelmaking coal sustaining capital guidance in 2023 includes water treatment
capital of $100 million. 2024 guidance includes $150-250 million of water treatment capital. |
| 3. | Excluding QB2 development capital, as well as QB2 ramp-up capital, which was
spent in 2023 and is not expected to continue in 2024. |
| 4. | Copper growth capital guidance includes feasibility studies, advancing detailed
engineering work, project execution planning, and progressing permitting at the Highland Valley Copper life extension project, San Nicolás
and Zafranal. In addition, we will work to define the most capital efficient and value-adding pathway for the expansion of QB based on
the performance of the existing asset base. We also expect to continue to progress our medium to long-term portfolio options with prudent
investments to advance the path to value including for NewRange Galore Creek, Schaft Creek and NuevaUnión. |
Capitalized Stripping
| |
| 2023 | | |
| 2024 | |
(Teck’s share in CAD$ millions) | |
| Guidance | | |
| Guidance | |
Copper1 | |
$ | 395 | | |
$ | 255 - 280 | |
Zinc | |
| 55 | | |
| 65 - 75 | |
Steelmaking coal | |
| 750 | | |
| 550 - 750 | |
| |
$ | 1,200 | | |
$ | 870 - 1,105 | |
Note:
| 1. | Copper
capitalized stripping includes QB operations. |
7 | Teck Resources Limited 2023 Production and 2024 Guidance Update |
Use of Non-GAAP Financial Measures and Ratios
Our financial results are prepared in accordance with International Financial
Reporting Standards as issued by the International Accounting Standards Board. This document includes reference to certain non-GAAP financial
measures and non-GAAP ratios, which are not measures recognized under IFRS, do not have a standardized meaning prescribed by IFRS and
may not be comparable to similar financial measures or ratios disclosed by other issuers. These financial measures and ratios have been
derived from our financial statements and applied on a consistent basis, as appropriate. We disclose these financial measures and ratios
because we believe they assist readers in understanding the results of our operations and financial position and provide further information
about our financial results to investors. These measures should not be considered in isolation or used in substitute for other measures
of performance prepared in accordance with IFRS. For more information on our use of non-GAAP financial measures and ratios, see the section
titled “Use of Non-GAAP Financial Measures and Ratios” in our most recent Management Discussion Analysis, which is
available on SEDAR+ (www.sedarplus.ca). Additional information on certain non-GAAP ratios is
below.
Total cash unit costs – Total cash unit costs for our copper
and zinc operations includes adjusted cash costs of sales, as described below, plus the smelter and refining charges added back in determining
adjusted revenue. This document allows a comparison of total cash unit costs, including smelter charges, to the underlying price of copper
or zinc in order to assess the margin for the mine on a per unit basis.
Net cash unit costs – Net cash unit costs of principal product,
after deducting co-product and by-product margins, are also a common industry measure. By deducting the co- and by-product margin per
unit of the principal product, the margin for the mine on a per unit basis may be presented in a single metric for comparison to other
operations.
Adjusted cash cost of sales – Adjusted cash cost of sales for
our copper and zinc operations is defined as the cost of the product delivered to the port of shipment, excluding depreciation and amortization
charges, any one-time collective agreement charges or inventory write-down provisions and by-product cost of sales. It is common practice
in the industry to exclude depreciation and amortization as these costs are non-cash and discounted cash flow valuation models used in
the industry substitute expectations of future capital spending for these amounts.
Adjusted site cash cost of sales – Adjusted site cash cost
of sales for our steelmaking coal operations is defined as the cost of the product as it leaves the mine excluding depreciation and amortization
charges, out-bound transportation costs and any one-time collective agreement charges and inventory write-down provisions.
Cautionary Statement on Forward-Looking
Statements
This document contains certain forward-looking information and forward-looking
statements as defined in applicable securities laws (collectively referred to as “forward-looking statements”). These statements
relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements.
The use of any of the words “anticipate”, “plan”, “continue”, “estimate”, “expect”,
“may”, “will”, “project”, “predict”, “potential”, “should”, “believe”
and similar expressions is intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties
and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.
These statements speak only as of the date of this document.
8 | Teck Resources Limited 2023 Production and 2024 Guidance Update |
These forward-looking statements include, but are not limited to, statements
concerning: all guidance appearing in this document including, but not limited to, the production, sales, costs, unit costs, capital expenditures,
transportation costs, cost reduction and other guidance under the heading “Guidance” and elsewhere in this news release; our
expectations regarding inflationary pressures and increased key input costs, including mining equipment labour and energy costs; our production
and operating expectations through 2027 at our QB, Highland Valley Copper, Antamina, Carmen de Andacollo and Red Dog operations; expectations
for our QB project, including timing of completion of remaining construction, commissioning and ramp-up; potential pathways for the expansion
of our QB operations and development and sanctioning of any growth projects.
These statements are based on a number of assumptions, including, but not
limited to, assumptions regarding general business and economic conditions, interest rates, commodity and power prices; acts of foreign
or domestic governments and the outcome of legal proceedings; the supply and demand for, deliveries of, and the level and volatility of
prices of copper, zinc, and steelmaking coal and our other metals and minerals, as well as oil, natural gas and other petroleum products;
our ability to procure equipment and operating supplies and services in sufficient quantities and on a timely basis; the availability
of qualified employees and contractors for our operations, including our new developments and our ability to attract and retain skilled
employees; our ability to obtain, comply with and renew permits, licenses and leases in a timely manner; the timing of the receipt of
permits, licenses, leases and other regulatory and governmental approvals for our development projects and other operations, including
mine extensions; our ability to secure adequate transportation, including rail and port services, for our products; our costs of production
and our production and productivity levels, as well as those of our competitors; continuing availability of water and power resources
for our operations at an acceptable cost or at all; credit market conditions and conditions in financial markets generally; the availability
of funding to refinance our borrowings as they become due or to finance our development projects on reasonable terms; availability of
letters of credit and other forms of financial assurance acceptable to regulators for reclamation and other bonding requirements; the
satisfactory negotiation of collective agreements with unionized employees; the impact of changes in Canadian-U.S. dollar exchange rates,
Canadian dollar-Chilean Peso exchange rates and other foreign exchange rates on our costs and results; engineering and construction timetables
and capital costs for our development and expansion projects; the benefits of technology for our operations and development projects,
costs of closure, and environmental compliance costs generally, on our operations; market competition; the accuracy of our mineral and
steelmaking coal reserve and resource estimates (including with respect to size, grade and recoverability) and the geological, operational
and price assumptions on which these are based; the outcome of our steelmaking coal price and volume negotiations with customers; the
outcome of our copper, zinc and lead concentrate treatment and refining charge negotiations with customers; any continuing or resurgent
impacts of the COVID-19 pandemic on our operations and projects and on global markets; the resolution of environmental and other proceedings
or disputes; the future supply of low-cost power to the Trail smelting and refining complex; and our ongoing relations with our employees
and with our business and joint venture partners. Assumptions regarding QB Operations and the QB2 project include current project assumptions
and assumptions contained in the final feasibility study, as well as there being no further unexpected material and negative impact to
the various contractors, suppliers and subcontractors that would impair their ability to provide goods and services as anticipated. Assumptions
regarding the costs and benefits of our projects include assumptions that the relevant project is constructed, commissioned and operated
in accordance with current expectations. Expectations regarding our operations are based on numerous assumptions regarding the operations.
Our Guidance tables include disclosure and footnotes with further assumptions relating to our guidance, and assumptions for certain other
forward-looking statements accompany those statements within the document. Statements concerning future production costs or volumes are
based on numerous assumptions regarding operating matters and on assumptions that demand for products develops as anticipated, that customers
and other counterparties perform their contractual obligations, that operating and capital plans will not be disrupted by issues such
as mechanical failure, unavailability of parts and supplies, labour disturbances, interruption in
9 | Teck Resources Limited 2023 Production and 2024 Guidance Update |
transportation or utilities, adverse
weather conditions, or social unrest, and that there are no material unanticipated variations in the cost of energy or supplies. Statements
regarding anticipated steelmaking coal sales volumes and average steelmaking coal prices depend on timely arrival of vessels and performance
of our steelmaking coal-loading facilities, as well as the level of spot pricing sales. The foregoing list of assumptions is not exhaustive.
Events or circumstances could cause actual results to vary materially.
Factors that may cause actual results to vary materially include, but are
not limited to, changes in commodity and power prices; changes in market demand for our products; changes in interest and currency exchange
rates; acts of governments and the outcome of legal proceedings; inaccurate geological and metallurgical assumptions (including with respect
to the size, grade and recoverability of mineral reserves and resources); unanticipated operational difficulties (including failure of
plant, equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials
and equipment, government action or delays in the receipt of permits, licenses and leases or other government approvals, changes in tax
or royalty rates, industrial disturbances or other job action, adverse weather conditions, social unrest, or unanticipated events related
to health, safety and environmental matters); union labour disputes; any resurgence of COVID-19 and related mitigation protocols; political
risk; social unrest; failure of customers or counterparties (including logistics suppliers) to perform their contractual obligations;
changes in our credit ratings; unanticipated increases in costs to construct our development projects; difficulty in obtaining permits;
inability to address concerns regarding permits or environmental impact assessments, and changes or further deterioration in general economic
conditions. The amount and timing of capital expenditures is depending upon, among other matters, being able to secure permits, equipment,
supplies, materials and labour on a timely basis and at expected costs. Certain operations and projects are not controlled by us; schedules
and costs may be adjusted by our partners, and timing of spending and operation of the operation or project is not in our control. Certain
of our other operations and projects are operated through joint arrangements where we may not have control over all decisions, which may
cause outcomes to differ from current expectations. Current and new technologies relating to our Elk Valley water treatment efforts may
not perform as anticipated, and ongoing monitoring may reveal unexpected environmental conditions requiring additional remedial measures.
QB production and sales guidance, costs, and capital expenditures are dependent on, among other matters, our continued ability to advance
progress on remaining construction, commissioning and ramp-up as currently anticipated. QB2 project costs may also be affected by claims
and other proceedings that might be brought against us relating to costs and impacts of the COVID-19 pandemic or other matters. Red Dog
production may also be impacted by water levels at site. Unit costs in our copper business unit are impacted by higher profitability at
Antamina, which can cause higher workers’ participation and royalty expenses. Sales to China may be impacted by general and specific
port restrictions, Chinese regulation and policies and normal production and operating risks.
We assume no obligation to update forward-looking statements except as
required under securities laws. Further information concerning risks, assumptions and uncertainties associated with these forward-looking
statements and our business can be found in our Annual Information Form for the year ended December 31, 2022, filed under our profile
on SEDAR+ (www.sedarplus.ca) and on EDGAR (www.sec.gov)
under cover of Form 40-F, as well as subsequent filings that can also be found under our profile.
About Teck
As one of Canada’s leading mining companies, Teck is committed to
responsible mining and mineral development with major business units focused on copper, zinc and steelmaking coal. Copper, zinc and high-quality
steelmaking coal are required for the transition to a low-carbon world. Headquartered in Vancouver, Canada, Teck’s shares are listed
on the Toronto Stock Exchange under the symbols TECK.A and TECK.B and the New York Stock Exchange under the symbol TECK. Learn
more about Teck at www.teck.com or follow @TeckResources.
10 | Teck Resources Limited 2023 Production and 2024 Guidance Update |
Teck Investor Contact:
Fraser Phillips
Senior Vice President, Investor Relations & Strategic Analysis
604.699.4621
fraser.phillips@teck.com
Teck Media Contact
Chris Stannell
Public Relations Manager
604.699.4368
chris.stannell@teck.com
11 | Teck Resources Limited 2023 Production and 2024 Guidance Update |
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