BC Natural Resources Forum Rock Into the Future Mark Edwards VP Community and Government Relations
Forward-Looking Information These slides contain certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) and comparable legislation in other provinces. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Teck to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statements involve numerous assumptions, risks and uncertainties and actual results may vary materially. Certain of these risks are described in more detail in Teck s annual information form available at www.sedar.com and in public filings with the SEC. Teck does not assume the obligation to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws. Under no circumstances should the information contained herein be considered an offer to sell or a solicitation of an offer to invest in securities. 2
Canada s Largest Diversified Resources Company # 1 Producer of steelmaking coal in North America # 2 Seaborne exporter of steelmaking coal globally Top ten copper miner in the Americas #3 zinc miner in the world Building an energy business Implementing a comprehensive sustainability strategy Safety is a core value 3
Global Assets & Interests Significant presence in BC: 7 Operations 2 Projects 2 Technology/R&D facilities Interests in a port and hydro facility Strong Resource Position With Sustainable Long-Life Assets Coal Resources Copper Resources Zinc Resources Energy Resources ~100 years ~30 years ~15 years ~50 years 4
The Pursuit of Sustainability Guides our Approach Recent Highlights Partnered to develop Western Canada s biggest solar farm SunMine at our reclaimed Sullivan Mine site Exploring the use LNG as an alternative to diesel at sites to reduce GHG emissions Implementing a comprehensive area-based water quality plan developed through a one-of-a-kind multi-stakeholder process Developing environmentally superior methods for treating metal and mineral concentrates at our CESL facility Protecting biodiversity by partnering on habitat protection & land conservation initiatives Reaching groundbreaking agreements with Indigenous Peoples that reflect our commitment to work to achieve FPIC 5
Our Approach to Sustainability: Communities We actively seek engagement with Indigenous Peoples at every stage of mineral development, including: Engagement during exploration Pursuit of negotiated agreements Ongoing co-management efforts Capacity-building within Indigenous communities Recently established an Indigenous Peoples Policy Support programs to advance capacity building e.g., Indspire Teck Canadian Aboriginal Bursary 6
Financial Overview Financial Highlights 2015 Revenue: $8.3 billion Gross profit 1 : $2.6 billion Adjusted Profit: $188 million Cash flow from operations: $2.0 billion Contributions 2015 Business Unit Revenue Gross Profit 1 Steelmaking Coal 37% 34% Copper 29% 35% Zinc 34% 31% 7 1. Before depreciation and amortization
Emerging from Historical Lows in Commodity Markets Over the past couple of years we navigated: A sustained drop in commodity prices; shrinking profit margins China s slow-down An oversupply of commodities Cross global industry shutdowns, employee reductions and project deferrals To weather the storm, we tightened our belts: ~ 2,000 in employee reductions Reduced operating costs Reduced capex, including a further $350M in 2016 Withdrew permit applications Maintained high production volumes Remained committed to advancing our energy projects 8
Is Volatility is the New Normal? Spot Prices by commodity (January 3, 2017) Compared to Last Year Compared to Last Quarter Steelmaking Coal + 190% ($76.45/mt compared to $221.50/mt) Zinc + 64% ($0.7049/lb compared to $1.1576/lb) Copper + 20% ($2.11/lb compared to $2.53/lb) Oil + 59% ($23.06/brl compared to $36.63/brl) + 4% ($213/mt compared to $221.50/mt) + 8% ($1.0746/lb compared to $1.1576/lb) + 16% ($2.18/lb compared to $2.53/lb) + 5% ($34.76/brl compared to $36.63/brl) 9 A policy & regulatory environment that encourages competitiveness & growth through commodity cycles is essential
Ensuring BC Remains Competitive Taxation and Fees Eliminating PST on electricity and machinery and equipment Carbon Regulations/Tax Level playing field for Emissions Intensive Trade Exposed Industries (EITEs) Positive Relationships First Nations and communities Environmental stewardship is key Agreements Shared benefits 10
Thank You 11