TECK - Teck Resources Limited

Operator: Ladies and gentlemen, thank you for standing by. Welcome to Teck Resources Limited's Third Quarter 2025 Earnings Release Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question and answer session. This conference call is being recorded on Wednesday, October 22, 2025. I would now like to turn the conference over to Emma Chapman, Vice President, Investor Relations. Please go ahead. Emma Chapman: Thank you, operator. Good morning, everyone, and thank you for joining us for Teck Resources Limited's third quarter 2025 conference call. Today's call contains forward-looking statements. Actual results may vary due to various risks and uncertainties. Teck Resources Limited does not assume the obligation to update any forward-looking statements. Please refer to Slide two for the assumptions underlying our forward-looking statements. We will reference non-GAAP measures throughout this presentation. Explanations and reconciliations are in our MD&A and the latest press release on our website. On today's call, Jonathan Price, our CEO, will provide third quarter 2025 highlights. Crystal Prystai, our CFO, will follow with further details on the quarter. Jonathan will then wrap up with closing remarks and an opportunity for Q&A. Over to you, Jonathan. Jonathan Price: Thank you, Emma, and good morning, everyone. Starting with highlights from our third quarter 2025 results on Slide four. The most significant highlight of the quarter was our September 8 announcement of a merger of equals agreement with Anglo American. This is a unique opportunity to create a global leader in critical minerals and a top five copper producer, and I could not be more excited about it. Particularly about the substantial value creation that could be generated. Anglo Tech will have an industry-leading portfolio with more than 1,200,000 tons of annual copper production underpinned by six world-class copper assets and outstanding future growth optionality. This will make Anglo Tech one of the world's leading investable copper opportunities. Offering both scale and quality with over 70% copper exposure. This transformative combination will unlock significant value for shareholders through compelling adjacencies generated by integrating the resources and infrastructure of QB and neighboring Coahuasi and through meaningful corporate synergies. Anglo Tech will work with stakeholders to optimize the value of the adjacencies. We expect to produce 175,000 tons of incremental copper and generate an annual average underlying EBITDA uplift of at least $1.4 billion per year for at least twenty years on a 100% basis. Working together as Anglo Tech will materially de-risk and accelerate our ability to realize this value opportunity. With aligned incentives on both the QB and Coyoacci sites, over $800 million recurring annual synergies have also been identified, and we expect approximately 80% of that to be achieved by the end of the second year following completion. In addition, the combined company is expected to have a strong balance sheet supported by a larger, more diversified asset and cash flow base including premium iron ore and zinc. Anglo Tech's scale and balance sheet will expand the opportunity set as we optimize the approach to growth. Through the combination of two significant project pipelines that will compete for capital based on risk-adjusted returns. Both Anglo American and Teck Resources Limited believe the merger will enhance portfolio quality, financial and operational resilience, and strategic positioning and it will be highly attractive for our respective shareholders and stakeholders. Another key highlight of the quarter was the completion of our comprehensive operational review. The focus of our review was on improving performance, through a detailed QB action plan and identifying opportunities to enhance practices across the portfolio. This included a detailed assessment of operational plans for all our assets. With review and input from third-party technical experts and independent advisers and with oversight by the Safety, Operations, and Projects Committee of our Board of Directors. As a result, we now have updated risk-adjusted operational plans that are reasonable, achievable, and more conservative as we embed assumptions based on demonstrated performance rather than design rates. At QB, our revised operating operational plan reflects ongoing work on development of the tailings management facility, or TMF, and the resulting constraint on our mill. In the QB action plan, our near-term priority remains enabling safe, unconstrained production by raising the crest height of the dam and working on solutions to improve sand drainage towards design targets. We are confident that we have thoroughly assessed and understood the issues at QB we have a defined and measurable path forward. And from 2027 onwards, we expect that TMF development work will no longer be a constraint on the mill. Overall in the third quarter, our profitability improved compared to the same period last year to $1.2 billion of adjusted EBITDA. Our established operations performed well, particularly Red Dog and Trail, with Red Dog sales exceeding guidance and continued improvement in Trail's profitability. Performance also improved at Highland Valley and CDA, compared with Q3 2024. Excluding QB, our copper production increased from the same period last year. Our balance sheet remains very strong, with $9.5 billion of liquidity including $5.3 billion in cash. And the Board sanctioned the Highland Valley mine life extension in July which will extend production from a core asset to 2046. Turning to safety and sustainability on slide five. Year to date through September 30, our high potential incident frequency rate was 0.06 at Teck Resources Limited controlled operations. Safety performance is considered a key indicator of stable operating performance, and we have seen a strong improvement with our HPI rate trending 50% below the annual rate last year. And we were thrilled to see our Chilean operations reach 100% renewable power on October 1, when our long-term Clean Power Agreement for QB's electricity supply came into effect. We'd signed that agreement some time ago when there was not enough renewable in place in Chile to be able to make that switch. The agreement enabled our partner to put additional renewable capacity in place and it's great to see the benefit of that come to fruition. And with that, I will turn it over to Crystal. Crystal Prystai: Thanks, Jonathan. Good morning, everyone. I will start with our third quarter 2025 financial performance on Slide seven. Our adjusted EBITDA increased by 18% in the quarter compared to a year ago to $1.2 billion driven by higher base metals prices, byproduct revenues, and significantly lower copper smelter processing charges as well as strong performance across our established operations, most significantly in our zinc business. Red Dog zinc sales and another profitable quarter from Trail Operations drove an increase in our adjusted EBITDA although this was partially offset by higher operating costs at QB. And while we completed $144 million of share buybacks in July, we have not executed share buybacks since July 25 and will not be permitted to execute further buybacks through the closing of our proposed merger with Anglo American. Importantly, we will continue to return cash to shareholders through our annual base dividend of $0.50 per share which is paid quarterly. Slide eight summarizes the key drivers of our financial performance in the third quarter compared to the same period in 2024. Our adjusted EBITDA increased by $185 million to $1.2 billion. In Q3, we realized higher copper and zinc prices as well as higher byproduct revenue. Lower smelter processing charges, and an increase in sales volumes. This was partially offset by an increase in royalties at Red Dog, due to strong profitability and higher operating costs at QB. Our Q3 2024 EBITDA was impacted by a post-tax impairment charge on Trail operations. Now looking at each of our reporting segments in greater detail and starting with copper on slide nine. In the third quarter, gross profit before depreciation and amortization from our copper segment improved 23% to $740 million compared with the same period last year, primarily due to higher base metals prices and lower smelter processing charges. QB production was constrained due to TMF development work, but we expect to see less downtime impacting performance in the fourth quarter. Excluding QB, our production increased from Q3 2024, driven by higher throughput and grades at Highland Valley, and higher grades and recoveries at Carmen De Adecollo. Antamina's production reflects a higher proportion of copper zinc ore this year as expected in the mine plan. Our copper net cash unit costs improved by $0.16 U.S. per pound despite higher operating costs at QB, primarily due to lower smelter processing costs and increased byproduct credits including QB molybdenum. Following Board sanction of the Highland Valley mine life in July, the project has entered the execution phase. Engineering and procurement activities are well underway and site mobilization has begun. Our outlook for our Copper segment is aligned with our October 7, news release. For 2025, we expect annual copper production of 415,000 to 465,000 tons and copper net cash unit costs of $2.05 to $2.30 per pound. Turning to our zinc segment on slide 10. In the third quarter, gross profit before depreciation and for our zinc segment improved 27% to $454 million compared with the same period last year. This was primarily due to higher byproduct revenues, higher zinc prices, and lower zinc treatment charges partially offset by higher adjusted cash cost of sales and higher royalties tied to Red Dog's profitability. Red Dog and Trail Operations both had a strong quarter of performance. At Red Dog, zinc sales of 203,000 tons were above our guidance range of 200,000 to 250,000 tons following a successful shipping season as we experienced favorable weather conditions. Production reflected lower grades as expected in our mine plan. In the third quarter, Red Dog inventories were drawn down by approximately $200 million. However, this was more than offset by elevated trade receivables of $570 million at quarter end, due to the volume of sales in Q3 and higher zinc prices. We expect Red Dog's trade receivables will be substantially reduced in the fourth quarter, providing a source of cash through the reduction in working capital. As of October 21, approximately $350 million of Red Dog receivables were collected, driving an increase in our cash balance post Q3. Our zinc net cash unit cost improved by $0.08 per pound driven by lower smelter processing charges and higher byproduct credits. We reported another quarter of profitability at Trail Operations, reflecting our focus on improving Trail's profitability and cash generation through prioritizing processing of residues over maximizing refined zinc production. Processing residues enables us to reduce concentrate purchases in the low treatment charge environment. Looking forward, we expect Red Dog zinc sales to be between 125,000 to 140,000 tons in the fourth quarter, reflecting normal seasonality. Red Dog shipping season commenced on July 11 and was completed yesterday. Our outlook for our zinc segment is aligned with our October 7 news release. For 2025, as a result of Red Dog's strong year-to-date performance, we expect Red Dog zinc production to come in towards the top end of our guidance range of 430,000 to 470,000 tons. We continue to expect our total zinc to be 525,000 to 575,000 tons, including Antamina. We also expect to be at the high end of our annual refined zinc production guidance range for Trail Operations. We continue to expect zinc net cash unit costs of $0.45 to $0.55 per pound. With Red Dog's strong performance, we continue to build the NANA royalty accrual which is expected to be a source of working capital in Q4 and a use of working capital in Q1 2026. Turning to our balance sheet on Slide 11. We have maintained a strong balance sheet and currently have liquidity of $9.5 billion including $5.3 billion of cash. Our cash balance has increased by approximately $500 million in the month of October so far, particularly due to the collection of Red Dog receivables built in Q3. Our use of cash through September reflects significant cash returns to shareholders of over $1.2 billion, as well as the payment of taxes related to the sale of the steelmaking coal business and the advancement of our copper growth options, including the start of the execution of the Highland Valley mine life extension. And while we completed $144 million of share buybacks in July, we have not executed buybacks since July 25, and will not be permitted to execute further buybacks through the closing of our proposed merger with Anglo American. Importantly though, we will continue to return cash to shareholders through our annual base dividend of $0.50 per share which is paid quarterly. Overall, our very strong balance sheet ensures we maintain our resilient position. Back to you, Jonathan. Jonathan Price: Thanks, Crystal. Looking forward on Slide 13, our priorities are disciplined execution across our operations and projects, and on progressing our transformative merger of equals with Anglo American. We are advancing approvals for the transaction, and both Anglo American and Teck Resources Limited strongly believe it is a significant value creation opportunity for our respective shareholders and stakeholders. At the same time, we are laser-focused on delivering against our operational guidance provided following completion of the comprehensive operational review. This includes continuing to progress the QB action plan and the necessary work on QB's tailings management facility to complete the ramp-up of the operation. At QB, there are multiple paths to value and significant upside potential beyond our current guidance, and we aim to realize the full value of this Tier one asset. Finally, our Highland Valley mine life extension project to extend production from a core asset to 2046 has moved into the execution phase and we are progressing early works. Turning to the outlook for QB on slide 14. Significant work has been undertaken to improve sand drainage times and complete the TMF development work. We have started the implementation of the new cyclone technology in one of the cyclone stations and we are seeing positive early results. We have finished the construction of the new paddock designs, we are also seeing improvements in sand drainage. Collectively, these results give us confidence that we are on the right track to finding solutions to improve sand drainage. We currently expect to be well-positioned to catch up on the construction of the sand dam and we aim to install the permanent infrastructure that will hydraulically deposit tailings and sand, replacing the current mechanical process by 2026. This will allow us to push QB to run at steady state from 2027 onwards. Turning to Slide 15. Importantly, QB remains a world-class Tier one asset. The foundation of QB's potential is its large long-life deposit, with around 10 billion tons of reserves and resources. The operation has the advantage of a very low strip ratio. Which enables competitive all-in sustaining costs. And QB has a tax stability agreement in place through 2037. QB has previously demonstrated that it is capable of operating at design recovery and throughput levels when there is no constraint on the mill. The design, construction, and operational capability of the plant was previously validated by independent specialists through completion testing and found to be robust. Beyond our current guidance for QB, there is significant upside potential. Optimization and debottlenecking offer the potential for efficient, near-term throughput uplift to at least 165,000 tonnes per day with a potential to go to 185,000 tons per day. We are working on improving recoveries towards our design recovery rates of 86% to 92% with more consistent plant online time and geometallurgical testing to optimize reagents and drive improvements in recovery. And while we expect 2028 to be impacted by transition ores, average grades are expected to improve on average for the five years thereafter. Overall, we have multiple potential paths to create value for our shareholders through QB including the potential adjacencies with neighboring Koyoasi and the value of QB continues to be validated by Anglo American through their due diligence for our merger of equals. We look forward to welcoming many of you to QB on November and we are confident that you will see the significant progress that has already been made and that QB remains a world-class Tier one asset. Turning to slide 16, I'll wrap up where I started with the merger of equals with Anglo American. The combination is truly compelling, and will lead to significant value creation opportunities for shareholders. Together, we will become a leading critical minerals producer a top five global copper portfolio. We will deliver tangible corporate synergies of $800 million per year with a roadmap to unlock an additional $1.4 billion of annual underlying EBITDA uplift from the substantial adjacencies between QB and Koyawasi. And we will have the resilience and enhanced financial capacity to balance shareholder returns with valuable investment opportunities from this incredible suite of assets. The scale of the combined entity will increase the company's relevance in the global capital markets and could see a significant multiple rerating that will further increase the value generation of the combined Anglo Tech. Slide 17 is a reminder of the expected timeline and required approvals for the transaction. We expect completion within twelve to eighteen months from announcement. Both Boards support and recommend this merger, and there will be concurrent separate votes by the shareholders of Teck Resources Limited and Anglo American on December 9. We expect to publish our circular in mid-November. And it will be available on our website at teck.com. The transaction will then be subject to regulatory approval and customary closing conditions. Including approval under the Investment Canada Act competition and antitrust approvals, and various other applicable regulatory approvals globally. We are excited at the potential of Anglo Tech to create a global leader in critical minerals substantial value creation opportunity for shareholders. With that, operator, please open the line for questions. Operator: Certainly. To join the question queue, The first question comes from Liam Fitzpatrick with Deutsche Bank. Please go ahead. Liam Fitzpatrick: Good morning, Jonathan sorry, good afternoon. Depends where you're based. Jonathan and team, I've got two questions. The first one is just on the deal. And whether any preliminary discussions have started with Glencore. Over the JV of the two assets? And if not, any rough guidance on when that could begin? And the second question, just on the guidance or the updated guidance for 2025, it looks like you're tracking towards the low end across unit cost guidance and CapEx guidance. Just wanted to check if that's the case or whether there's something we should be looking out for in Q4. Thank you. Jonathan Price: Thanks, Liam. It is indeed morning here in Vancouver. So Starting with your first question just on the QB Koyawasi synergies. Of course, with this being structured as a friendly deal, ourselves and Anglo American, it did give us significant ability to understand the capability of both assets and comprehensively assess the potential opportunities that could be generated from cooperation both through the and, of course, through the extensive infrastructure. As we've said, much of that value comes from the processing of the higher grades softer Coahuasi ore through the QB plant and it's a very capital way to add low-cost production into the combined portfolio. These synergies of course were also reviewed and validated by external advisers in order for them to be published. So there's a good deal of rigor that's been put around that. But, you know, we think this will be the benefit to significant benefit of the owners of QB and of Koyoasi and we expect all parties to be motivated to work together to generate this value for their shareholders. And of course, much of that work in terms of the commercial agreements and the structure of the agreements going forward remains ahead of us. But as I said, we think this is a compelling opportunity, and we do expect all shareholders to be engaged here to capture that value for their shareholders. Crystal, maybe if you just like to comment on Liam's second question in terms of where we're trending on guidance. Crystal Prystai: Yeah. Sure. Hi, Liam. Good morning. Just in the context of CapEx first, I think the guidance range remains reasonable as we look at where we're trending with our growth capital as we, you know, continue to progress the MyLife extension. Program through the fourth quarter. I'd expect a come in within that range. Similarly, on the capitalized stripping side of things. And then on the sustaining capital side, of the guidance, we are obviously continuing to progress the work on the TMF and expect that spending to continue into the fourth quarter. So I would suggest you continue to use a midpoint on the aspects. Similarly on unit costs for the copper business, I would I would expect us to come in towards the middle of the range. I wouldn't use the low point. And for Zinc, I think you're probably it's probably reasonable to be using somewhere between the low and the mid-case just based on where we're tracking there. But there isn't anything, there isn't anything anomalous in those numbers. Liam Fitzpatrick: Okay. Jonathan, if I could briefly follow-up just point taken, Reed, the discussions are ahead of you. Should we be thinking that the discussions will get going post-deal completion? Which is well into next year? Or is the plan to begin those earlier? Jonathan Price: Look, there's nothing that requires the deal to be completed to enable discussions between QB and Coyoacci. I mean, I think over the past couple of months since the announcement of the merger of equals with Anglo American. We've clearly surfaced the value here that's available to all of the owners of both QB and Coyoacci, and I think that creates a good platform for engagement. Liam Fitzpatrick: Okay. Thank you. Thanks, Liam. Operator: The next question comes from Myles Allsop with UBS. Please go ahead. Myles Allsop: Great. Thank you. Maybe just bring up slightly on Liam's question first on QB Colossae. I presume that all shareholders need to agree to the joint venture to be able to execute if Glencore or another shareholder gets difficult they you can't force them into a joint venture. Jonathan Price: No. There's no way of forcing anybody into a joint venture. I think it will require the agreement of all parties. Of course, Coahuasi is an incorporated entity. So unlike QB, is unincorporated where Teck Resources Limited is clearly the operator and takes the lead. Koyoasi has to engage as a consolidated entity. We've said before, we think there's a significant advantage from the cross-ownership that will be created through this merger of equals with 60% of QB being owned by Anglo Tech and 44% of Coyoacci being owned by Anglo Tech, and we consider that to be a significant de-risking and accelerating factor. In capturing these synergies. Over time. But again, I've just said, all shareholders of both assets should be highly motivated to work together to capture what we think is significant new value for our shareholders. Myles Allsop: Yes, and it wasn't that long ago, so I was quite excited about it. Could you just on QB, where should we think normal like I guess it's hypothetical now that in when production normalizes in 2027, 2028, where will unit costs normalize? What's your best guess? Is it the $1.15 or $1.52 What's the kind of new norm based on your current best guess? Jonathan Price: So Miles, there is no structural change to the asset based on the guidance we've previously given for QB. Of course, there's the impact of inflation that is across the whole of the industry. At the moment. So we would expect that to develop over time. But structurally, as we've said, we see the asset capable of performing at the levels that we'd used previously to define unit cost guidance. And I think that's probably the best indication I can give you at this stage. Myles Allsop: All the original normalized unit cost when you did the feasibility and stuff? Jonathan Price: So we were using $1.40 to $1.60 US dollars per pound previously. Obviously, that's predicated on the plant running at full capacity on hitting the design recovery rates on the full production of molybdenum and of course operating the port through our shiploader, which is a situation we expect to return to in the first quarter of next year. And of course, as I mentioned before, they are unescalated numbers as in they don't reflect the impact of inflation over the coming years. Myles Allsop: Yeah. Cool. That's clear. Thank you. Jonathan Price: Thanks, Miles. Operator: The next question comes from Anita Sarney with CIBC. Please go ahead. Anita Sarney: Good morning, Jonathan and team. Thanks for taking my question. The first one, just I just wanted to see if you could give us some more color in terms of the improvement in sand drainage rates. Could you quantify that? And I think previously, was like we're taking about seven days for the sand to drain. Is that has that improved from could you quantify it in the number of days? Jonathan Price: Hi, Anita. Thanks for the question. I'll hand this over to Dale. We won't quantify that, but I can get Dale to give a description of the work that's ongoing and some of the progress that we have seen. Particularly in the underlying drivers of sand drainage. Thank you very much, Jonathan, and thank you for the question. Dale: I think as Jonathan mentioned earlier, we've made a few changes to the operations since our startup in October. One, we have started the replacement of Cyclone technology, and with that we are starting to see improvements in sand drainage in the paddocks. And that at the same time, as was changing some of our operational practices and design of paddocks as well. And those together are indicating some good initial results. But it's still too early to tell in terms of what magnitude of improvement is. Other than we're on the right track, and that's giving us some confidence on the path we're going forward. So that's where we sit today. Jonathan Price: I would say, Anita, of course, awesome opportunity to see this up close in weeks' time with far more detail around the work that's ongoing and how we see this developing. Anita Sarney: Yeah. I'm I will be attending the tour. And then my second question is with respect to the mill product rates. I think previously you talked about well, I can't remember off the top of my head, but the utilization and the availability, could you put it in context of what you seen over up October? October to date in terms of when you provided the guidance for Q3 results, yeah, I think it was I don't want to say incorrectly, but I think it was, like 61% availability or and 70% utilization. But can you just tell us what the old one was and what you've seen to date in October? Jonathan Price: Yeah. So year-to-date, when we communicated a couple of weeks ago, we'd seen 87% availability in the mill, but only 70% utilization because of the constraints put on the mill by the downtime associated with the TMF since starting up. In early October, we've seen very good availabilities. I won't quantify that right now, but very strong. Anita Sarney: Okay. And then am I correct in thinking when you're looking at the 87 in the 70, you should be multiplying those to get to your total capacity. Is that correct? Jonathan Price: No. It doesn't quite work like that. I mean, the utilization is a function ultimately of that availability. But we were only able to utilize the mill 70% of the time. Ultimately, you don't need to multiply the two things. Anita Sarney: Okay. Alright. Thank you. Thanks very much for clarifying that. Jonathan Price: Thanks very much. Operator: The next question comes from Lars van Wunder with Bank of America Securities. Please go ahead. Lars van Wunder: Thank you very much, operator. Good morning, Jonathan, and Crystal. Thank you for today's update. If I could come back to the merger, could I ask to what extent Teck Resources Limited and or Anglo American have engaged with Investment Canada on the transaction? Is there any indication that moving the combined head office is sufficient? And then just a follow-up to that, if you could address what you would perceive as sort of the bottleneck an antitrust and other approval point of view once the vote is done? Thank you very much. Jonathan Price: Yeah. Thanks, Lawson. Thanks for those questions. Look, we are engaging on an ongoing and collaborative basis with the Canadian government here. Those discussions have been frequent and productive. As we've said, we've put forward what we believe to be a very strong and comprehensive package of commitments to Canada in particular. You know, as you note, a key element of that is Anglo Tech having its headquarters in Canada in perpetuity, and that's in addition to the significant capital spending commitments we've made of $4.5 billion over five years and other assurances and meaningful undertakings associated with the activities of the new company. So those conversations are ongoing and we're very pleased in the way that they're unfolding at the moment. We don't see a particular bottleneck here Lawson, necessarily. You know, we'll work through the shareholder vote, of course, in early December. We'll continue in parallel to work with the Canadian government under the Investment Canada Act. And, of course, then this week, we will complete all of our filings related to antitrust and competition regulators globally. Of course, then those processes will unfold in due course. So now a lot of activity going on a lot of engagements underway, and, you know, we hope to continue that in a very productive and to the extent possible expedited fashion. Lars van Wunder: Okay. Thanks very much, Thanks, Lawson. Operator: The next question comes from Chris Lipponen with Jefferies. Please go ahead. Chris Lipponen: Thanks, operator. Hi, Jonathan. Thanks for taking my question. Just wanted to follow-up another question on the QB Kalawasi synergies. The shareholder vote is going to be on December 9, but at that time, we won't know whether the JV is certainly going to happen. We won't know what the economic split would be between Teck Resources Limited, Anglo, and your partners in those assets. And obviously, that JV is a big component of this deal. And my first question would be, whether you think it's a compelling merger even if you cannot get that JV done. I understand that it's compelling from all parties involved, under the assumption that that JV doesn't happen, it's just still a very good deal for Teck Resources Limited. That's my first question. Jonathan Price: Yeah. Thanks for that, Chris. So look. Absolutely. I mean, you know, we think the creation of this, this new company, the fifth largest copper producer in the world, sixth world-class assets, 1,200,000 tons of annual copper production, a company of both scale and quality. We expect this to trade very, very well in equity markets. In addition to that, of course, we've got the $800 million of synergies that we will work through coming through the corporate combination, coming from marketing, coming from procurement. In addition to that, of course, Teck Resources Limited shareholders will gain access to synergies being created through the agreement that Anglo American has put in place with Codelco for Los Bronces Andina. Etcetera. There are lots of sources of value creation here. We do think that the QB Koyoasi, of course, is a very meaningful component of the value creation here. And as I mentioned before, I would expect all of the owners of both QB and Koyoasi to be highly motivated on behalf of their shareholders to work collaboratively to capture that value that's ahead of us. Chris Lipponen: Right. That makes sense. Then in terms of a framework for how you value the split of the economics in that JV, have you had discussions with partners regarding just generally how to think about that? Because each partner is going to want to maximize their cap for the economics. I would that's going to be a sticking point. You think about the framework to value to each partner involved? Thank you. Jonathan Price: So that is to be worked out, Chris. That is part of the commercial agreements we have ahead of us. Of course, again, with Anglo Tech, at 60% of QB and Anglo Tech at 44% of Coyoacci, you can see a win-win. There on both sides of this transaction. We will get into the nuts and bolts of this in the period ahead of us. But, again, I would expect all owners of both to be highly motivated to capture this value on behalf of their shareholders. Chris Lipponen: Got it. Thanks, Jonathan. Good luck. Jonathan Price: Thank you very much, Chris. Operator: There being no further questions, I will now pass the call back to Jonathan for closing remarks. Please go ahead. Jonathan Price: Thank you, operator, and thanks again to everyone for joining us today. As mentioned, we look forward to seeing many of you at our QB site visit and to many others joining us via webcast on November three. Wish you all a good day. Thank you. Operator: This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a great day.

Operator: Ladies and gentlemen, thank you for standing by. Welcome to Teck's Second Quarter 2025 Earnings Release Conference Call. [Operator Instructions] This conference call is being recorded on Thursday, July 24, 2025. I would now like to turn the conference over to Emma Chapman, Vice President, Investor Relations. Please go ahead. Emma Chapman: Thank you, operator. Good morning, everyone, and thank you for joining us for Teck's Second Quarter 2025 Conference Call. Today's call contains forward-looking statements. Actual results may vary due to various risks and uncertainties. Teck does not assume the obligation to update any forward-looking statements. Please refer to Slide 2 for the assumption underlying our forward- looking statements. We will reference non-GAAP measures throughout this presentation. Explanations and reconciliations are in our MD&A and the latest press release on our website. On today's call, Jonathan Price, our CEO, will start with highlights for our second quarter. Crystal Prystai, our CFO, will follow with the financial and operational review of this quarter. Jonathan will then wrap up with closing remarks and a Q&A session. With that, over to you, Jonathan. Jonathan H. Price: Okay. Thank you, Emma, and good morning, everyone. Now before we get into the quarter, I would like to take a moment to acknowledge the incident earlier on Tuesday at one of our peers' operations in the Northwest of our home province in British Columbia. Our ports with the 3 workers that remain in the underground work area as well as their families, friends and colleagues and the emergency response teams, and we hope for their safe and speedy rescue. So turning to our second quarter 2025 results, starting with highlights on Slide 4. Overall, we are advancing our strategy of growth while returning cash to shareholders. Our profitability improved compared to the same period last year to $722 million of adjusted EBITDA. We had strong performance in our zinc segment, with Red Dog sales above our guidance range and significant improvement in our zinc net cash unit costs as well as another quarter of profitability and cash generation at Trail. Across our established operations, production is on track to meet our annual guidance. At QB, we had previously noted that we would be at the lower end of our guidance of around 230,000 tonnes for the year. While the team is working hard to achieve this, we acknowledge that there could be risk from possible external factors or of course, any delay from the TMF development work. As a result, we've revised our outlook for QB to 210,000 tonnes to 230,000 tonnes for the year, but continue to target design rates by year-end. Earlier today, we announced that the Board has sanctioned the Highland Valley Copper Mine Life Extension project in British Columbia for construction. This is foundational to our strategy to double copper production by the end of the decade. Given the strong demand for copper as an energy transition metal, the project will generate compelling returns with an IRR far surpassing our cost of capital and secure access to this critical mineral for the next 2 decades. The project extends the core asset to 2046, with average annual copper production of 132,000 tonnes over the life of mine. We are continuing to return significant cash to shareholders with elevated daily share buying levels in the quarter resulting in a total of $487 million or 9.8 million Class B shares. Year-to-date, we have returned a total of $1.1 billion to our shareholders through dividends and share buybacks, and we have completed approximately 70% of our authorized $3.25 billion buyback, which is the equivalent of $2.2 billion. Finally, we are maintaining the resilience of the business, including through our strong balance sheet, which enables us to navigate uncertainty and continue to create value. We currently have $8.9 billion in liquidity, including $4.8 billion in cash. Turning to Slide 5. We continue to be committed to safety and sustainability. Across the operations that we control, our high potential incident frequency rate remained low for the first half of the year at 0.09, below our 2024 performance of 0.12. I would like to take a moment to acknowledge the fatality occurred on April 22 at Antamina, in which Teck holds a noncontrolling interest. We are deeply saddened by this event and offer our condolences to the family, friends and colleagues of the deceased. Teck fully participated in the investigation, which was led by the team at Antamina, and learnings will be shared across our company and across the sector. We were honored to be named as 1 of Corporate Knights 2025, Best 50 Corporate Citizens in Canada. It's the 19th consecutive year that we've received this recognition, which is based on an evaluation of up to 25 sustainability indicators, including Board diversity, resource efficiency, financial management, sustainable revenue and sustainable investment. So now turning to QB on Slide 6. QB second quarter performance was impacted by the ongoing TMF development work. We're advancing multiple TMF development initiatives to improve sand dredging rates and accelerate mechanical movement of sand to achieve steady-state operations. This work impacted mill online time in the quarter, as previously disclosed. The planned post QB2 construction pace of TMF development was based on design assumptions for sand dredging rates, but have subsequently proven unachievable. Modifications to cyclones alone, while showing an improvement in sand dredging rates, were not sufficient to allow us to fully catch up on TMF development work in the quarter. As a result, we are implementing a range of additional measures to improve sand dredging rates and accelerate the mechanical movement of sand, including enhanced sand placement techniques and optimization of the grind size concentrator. Importantly, the TMF development work and the transition from starter down to regular ongoing sand list is a onetime milestone related to the ramp-up of the operation. When it is completed, the TMF development work will be behind us for the life of facility. While the TMF development work will continue in Q3, we continue to target design rates by the end of the year. Throughput increased from the prior quarter, and we expect to see consistent grades of approximately 0.61% in the second half of the year. Work is ongoing to improve recoveries by year-end, which will also be helped by more consistent mill run time. The outage of the shiploader at QB's port facility announced on June 2 is expected to be extended into the first half of 2026. We have been successfully shipping concentrate through our alternative port arrangements and have maximized shipments to local customers, so there has been no production impact. Alternative sales logistics have had some incremental impact on our net cash unit costs, which is expected to be approximately USD 0.10 per pound. We had a good step-up in molybdenum production as a result of some key process improvement initiatives implemented during the quarter. We expect to continue to see molybdenum production improvements, and we continue to target design throughput and recoveries of the moly plant by year-end. Once we have completed the TMF development work, QB will be able to run in steady state, showcasing it as a Tier 1 asset that will be a cornerstone of Teck's portfolio for generations. We continue to work on defining the most capital efficient and value-accretive path for future growth of QB through optimization of the mill and low capital debottlenecking opportunities that could collectively increase throughput by a further 15% to 25%. The foundation of QB is its large long-life deposit that can support multiple expansions, and it offers multiple potential paths to create value for our shareholders, including assessing adjacencies or synergies with Collahuasi. The operation also has the advantage of a very low strip ratio, which enabled competitive all-in sustaining costs. We successfully achieved completion testing requirement under QB's USD 2.5 billion project finance facility earlier this year, which provides independent verification, confirming the robustness of design, construction and operational capacity. And we have a tax stability agreement in place through 2037. Taking all these factors into account, we are well positioned to generate significant future cash flows from this Tier 1 asset for decades to come. Turning to the Mine Life Extension of Highland Valley on Slide 7. Highland Valley is Canada's largest copper mine and a core asset in our portfolio, and we are excited to announce the sanction of the Highland Valley Copper Mine Life Extension, or HVC MLE project. This is a lower risk and lower complexity brownfield projects that is 100% owned by Teck. The MLE is an extension of the operation to 2046 and is expected to produce 132,000 tonnes of copper per annum on average over the life of mine. Based on additional technical and engineering work, we have optimized the project. As a result, capital estimate sanction is CAD 2.1 billion to CAD 2.4 billion in nominal terms. Compared with our prior estimate of CAD 1.8 billion to CAD 2 billion, it now includes project-level contingencies, accounts for inflation, input cost escalation and the impact of potential tariffs on construction materials and reflects the accelerated procurement of mobile equipment originally planned for later project phases. It also incorporates additional scope and indirect contract requirements identified through ongoing project requirements. The MLE project consists of development of site infrastructure and facilities, grinding circuit upgrades, increased tailings storage capacity and enhancements for power and water systems, as well as the mine pushback that requires additional waste stripping to access high-quality resources within the valley pit. The project economics are attractive including generating a robust internal rate of return that is significantly above our cost of capital and a project net present value using an 8% -- sorry, a positive net present value using an 8% discount rate. The capital intensity of the project is expected to be low at USD 11,500 to USD 13,200 per tonne of copper on an annualized basis. Overall, we expect to generate significant EBITDA and cash flows over the life of mine. We have operated Highland Valley for decades and have successfully executed several Mine Life Extensions there. And importantly, project readiness for construction has been confirmed through independent assurance activities, including an external construction readiness assessment and a review of the technical scope, capital cost estimate and execution strategy and planning. We are well positioned for solid project execution of the Highland Valley Mine Life Extension with a strong and experienced team in place, all major permitting complete, engineering nearly 70% complete and all contracting and permitting well advanced. Construction mobilization is underway. We plan to start construction in a few weeks, and we look forward to delivering on this value-accretive project. We have summarized the changes to our guidance on Slide 8. Production changes driven by the revised outlook for QB based on the TMF development work. We had previously noted that we would be at the lower end of our guidance of around 230,000 tonnes for the year. While this is still possible, we acknowledge that there could be risk from possible external factors or from any delay to the TMF development work. As a result, we have revised our outlook for QB to 210,000 tonnes to 230,000 tonnes for the year, but continue to target design rates by year-end. Production guidance for all other operations is maintained. As such, the impact of the revised QB outlook is the only driver of flow- through changes to total copper production, moly production and therefore, net unit cash costs. We have also incorporated the increase in copper production in 2028 and the start of the growth capital investment associated with the sanction of the Highland Valley Copper Mine Life Extension project. Please refer to the MD&A for further details. Turning to the near-term growth on Slide 9. Our ongoing growth trajectory is underpinned by our established portfolio of operating mines. The sanction of the HVC MLE project is foundational to our copper growth strategy and a significant milestone in the growth of Teck's copper production in the future. Our high returning Greenfield projects with Zafranal in Peru and San Nicolas in Mexico are progressing as planned, and we are targeting sanction readiness by year-end. For now, we initiated advanced early works in May, following receipt of the advanced works permit in April. This will enable construction to start immediately following project sanction. We are targeting receipt of the construction permit of Stage A approval, first of 2 approvals required in Q3. And the earliest date for a potential sanction decision is late in 2025. San Nicolas engagement with government authorities and other stakeholders is ongoing to support our permit applications. We plan to complete the feasibility study in the fourth quarter, which is the earliest stage of the project to be positioned for potential sanction decision following the receipt of necessary permits. These projects are significantly less complex and smaller in scope than QB with lower capital intensities, attractive project economics and well-balanced risk return profiles. In addition, we are working to define the most capital efficient and value-accretive path of further growth of QB through optimization of the mill and low capital debottlenecking opportunities that could increase throughput by 15% to 25%. Our priority at QB remains completing the ramp-up, but optimization plans are also progressing, detailed planning for debottlenecking is underway. This should enable us to submit the declaration of environmental impact on deferment application in the second half of the year. All of our growth projects must meet stringent criteria, delivering attractive risk-adjusted returns and competing for capital in alignment with our capital allocation framework. Overall, we expect to be able to double copper production by the end of the decade with a path to annual copper production of up to 800,000 tonnes through these near-term projects. With that, I will now hand the call over to Crystal. Crystal J. Prystai: Thanks, Jonathan. Good morning, everyone. I will start with our second quarter 2025 financial performance on Slide 11. Our adjusted EBITDA increased by 3% in the quarter compared to a year ago to $722 million, primarily due to another profitable quarter from Trail Operations, lower smelter processing charges and reductions in corporate overhead costs, partially offset by lower copper and zinc prices and higher operating costs at Highland Valley due to increased production and at QB. The improved performance from Trail Operations reflects the implementation of initiatives to improve profitability and cash flows, including increasing byproduct revenue. While the current load smelter processing charges are a headwind for Trail, Teck overall has a net benefit from them. We successfully reduced our corporate overhead cost by 21%, reflecting our ongoing efforts to reduce costs across our business. We continue to expect lower annual corporate overhead costs compared to 2024. Importantly, we continue to return cash to shareholders, with $548 million returned in the second quarter. This includes $61 million of base dividends and $487 million of share buybacks, which equates to 9.8 million shares and reflects elevated daily share buying levels through the quarter. Year-to-date, we have returned over $1.1 billion to our shareholders. Turning to Slide 12, which summarizes the key drivers of our financial performance in the second quarter compared to the same period in 2024. Our adjusted EBITDA increased by $19 million to $722 million, driven by another profitable quarter from Trail Operations, lower smelter processing charges, reductions in corporate overhead costs and lower royalties. It also reflects higher sales volume and an increase in commodity prices for our byproducts and positive foreign exchange impact. Trail's improved results reflect higher by-product production volumes such as silver, germanium and indium and higher refined lead production as compared with a year ago. These factors were partially offset by a $91 million reduction in settlement pricing adjustments and higher operating costs at Highland Valley due to increased production and at QB. Now looking at each of our reporting segments in greater detail, starting with copper on Slide 13. In the second quarter, gross profit before depreciation and amortization from our copper segment declined by 3% to $673 million compared to the same period last year, primarily due to lower copper prices and higher operating costs, partially offset by increased coal product and byproduct revenues from zinc and molybdenum and lower smelter processing charges. Copper production remained similar to the same period last year at 109,000 tonnes. At QB, though online time was impacted by the TMF development work required to complete the ramp-up of the operation as expected. Our established operations are performing in line with guidance, and our outlook remains on track for the balance of the year. Production improved significantly at Highland Valley, driven by higher grades and mill throughput as we advance mining in the Lornex pit. Production at Antamina was lower, reflecting a shutdown of approximately 1 week due to the fatality, as well as the processing of a lower proportion of copper-only ore as expected in moly plant. The site returned to full production in June. Carmen de Andacollo had higher production in the quarter driven by higher grades and recoveries as water availability improved compared with the same period last year, which was impacted by drought conditions. The improved performance in Q2 of 2025 was despite maintenance at SAG mill for approximately 1 month for repairs. The operation has been running at full rate since it successfully restarted at the end of June. Our net cash unit costs improved by USD 0.14 per pound to USD 2.02 per pound. While cost of sales increased, particularly at QB and Highland Valley, this was more than offset by increased flat product credits, including significantly higher zinc revenue from Antamina and additional molybdenum revenue from Highland Valley and QB as well as much lower smelter processing costs. In the quarter, we labor agreements at QB and Carmen de Andacollo. QB's third labor union provides a new 3-year collective bargaining agreement in early April, completing all labor negotiations for QB's workforce and ensuring that labor agreements are now in place through 2028 across our QB operations. At CdA, both union contracts were ratified in June and July, with each covering a 3-year period. Looking forward, we continue to target design rates at QB by the end of this year. We also continue to expect higher quarterly copper production at Highland Valley through the balance of this year as we process increasing proportion of higher grade Lornex ore. As mentioned earlier, we've updated our annual production and unit cost guidance based on our revised QB operational outlook. Copper production has been revised to 470,000 tonnes to 525,000 tonnes. And copper net cash unit costs have been revised to USD 1.90 to USD 2.05 per pound. Turning now to our zinc segment on Slide 14. Performance in our zinc segment was very strong in the second quarter. Our profitability in zinc improved substantially with a 137% increase in gross profit before depreciation and amortization compared with the same period last year to $159 million. This improvement was driven by higher byproduct revenues as a result of our updated operating strategy at Trail and lower operating costs. Red Dog performed well despite lower grades that we expected in the mine plan. Red Dog sales of 35,100 tonnes were higher than our guidance range of 25,000 tonnes to 35,000 tonnes due to the timing of sales. Our net cash unit cost for zinc improved significantly, decreasing by USD 0.20 per pound to USD 0.49 per pound, primarily due to lower sulfur processing charges and higher byproduct credits. At Trail operations, profitability was strong in the quarter, reflecting our updated operating plan to improve profitability and cash flow generation in challenging smelter market conditions. We have curtailed our refined zinc production and increased production of byproducts such as silver, germanium and other critical metals compared to the same period last year. We also implemented cost reductions in Q4 of 2024, the benefit of which continued into Q2. Overall, this strong performance led to a 13% improvement in our gross profit margin before depreciation and amortization for our zinc segment 28% compared to the same period last year. Looking forward to the third quarter, we expect zinc and concentrate sales from Red Dog of 200,000 tonnes to 250,000 tonnes. And with Red Dog shipping season commencing on July 11, we expect reductions in Red Dog inventory in the third quarter, reflecting the normal seasonality of sales. Our annual production and unit cost guidance for our zinc segment is unchanged, as they can concentrate production of 525,000 tonnes to 575,000 tonnes; refine zinc production of 190,000 tonnes to 230,000 tonnes and net cash unit cost of USD 0.45 per pound to USD 0.55 per pound. Looking at our cash return to shareholders on Slide 15. We continue to build on our strong history of cash return to shareholders. We have returned a total of approximately $6 billion since 2020. This includes over $1.1 billion year-to-date, reflecting elevated daily share buyback levels in the second quarter. We have now completed $2.2 billion or approximately 70% of our $3.25 billion authorized buyback, leaving approximately $1 billion remaining. And with the strong cash flow generation potential of our business, we can see further cash returns to shareholders in line with our capital allocation framework. We remain committed to returning between 30% and 100% of future available cash flows to our shareholders. Looking now at our balance sheet on Slide 16. We remain focused on maintaining the resilience of our business, including the strength of our balance sheet. As of yesterday, our cash balance remained significant at $4.8 billion, and our liquidity is strong at $8.9 billion. We also continue to maintain investment-grade credit ratings. We have moved into a small net debt position in the quarter as we continued to deploy the proceeds from the sale of steelmaking coal business to shareholder return. But we do expect a release of working capital build of Red Dog inventory to unwind in the third quarter, reflecting the normal shipping season. Since 2024, we have reduced our debt by USD 2 billion and our USD 1 billion outstanding term notes are long dated. We made a semiannual repayment of USD 147 million on the QB project finance facility in the quarter. And through these payments, we are further deleveraging our balance sheet on an ongoing basis. Our near-term growth projects, including the HVC MLE project remain well funded, and we are strongly positioned for continued value creation as we execute on our strategy. With that, I'll turn it back to Jonathan. Jonathan H. Price: Thanks, Crystal. On Slide 18, we remain focused on our priorities to create value for our shareholders. Completing the TMF development work at QB and ramping up the operation, targeting design rates by year-end; driving operational excellence, including growing our copper production, reducing our unit costs and improving our margins; continuing to return cash to our shareholders through execution of our authorized share buyback program and through our base dividend and progressing our value-accretive near-term copper projects to create options for our next phase of copper growth. And maintaining the resilience of our business, including our strong balance sheet. We are committed to continuing to balance investment and growth in copper with cash returns to shareholders. Turning to Slide 19. We can continue to significantly impact the accretive growth potential of our metrics on a per share basis. Last year, with the ramp-up of QB and with a significant portion of our $3.25 billion share buyback completed, we increased our copper production per share by 54% compared to the prior year. By 2026, our copper production per share could increase by a further 33% to 50% as we stabilize QB at full production while completing the remaining authorized share buyback. And our copper production per share could increase substantially beyond that as we bring on near-term value accretive growth projects. And this does not consider the impact of any further share buybacks that could be authorized under our capital allocation framework given the strong cash flow generation potential of our business. Our copper production has the potential to increase rapidly long term on a per share basis. So thank you. And with that, operator, please open the line for questions. Operator: [Operator Instructions] The first question comes from Orest Wowkodaw with Scotiabank. Orest Wowkodaw: Some questions on QB2, please. Firstly, the tailings issue that's limiting throughput and then the new investment required here, is there any knock-on impact to 2026? I mean, will tailings still be a constraint next year? Jonathan H. Price: Hi Orest, thank you for that question. Yes, as you point out in the current quarter and to some extent as well expected in Q3, the TMF development work has been limiting online time for QB. Actually, throughput at the plant and the recoveries of the plant have been good, considering these constraints, but online time is an issue. Our expectation here, Orest, is that we can work through the TMF development issue and put that behind us so that it won't deconstrain operations on an ongoing basis. On that basis and based on what we see in terms of throughput and recoveries and grade, of course, the operation we have maintained our guidance for 2026. But of course, as we noted, we'll continue to monitor the progress of the TMF development work through the balance of this year. Orest Wowkodaw: Is there potentially more investment required in the tailings next year? Jonathan H. Price: At this point, we've guided to the incremental capital spend for this year. We don't expect additional investment next year. We expect normal operating conditions around the TMF and its ongoing development, but we don't expect to signal additional capital essentially as we have done in the current quarter. Orest Wowkodaw: Okay. And just -- I mean, given the state of the ramp-up, I mean, at this point, I'm having trouble understanding how realistic it is for QB to even reach the low end of its guidance for '26. I mean, that would imply monthly production required of 23,000 tonnes a month. The operation hasn't done that in a single month to date. At this point, what gives you confidence that you can exit the year anywhere close to that kind of run rate? Jonathan H. Price: Yes. So our view, Orest, is that when we confirm the TMF issue behind us and we can therefore improve the online time at the plant that we see from the throughputs, recoveries and grade perspective, the potential on the guidance for 2026. So these are assumptions that we are able to underpin by operating parameters that we have experienced and deliver at the plant. Of course, it requires us to run the operation consistently through the year to achieve those numbers. They're consistent with design, of course and at the low end of the range, we have seen operating results already that give us confidence that those numbers are achievable. As you can imagine, we continue to interrogate both the operational parameters at QB and we continue to interrogate the forward guidance for QB. But at this point in time, we don't see any changes to 2026 and believe with a period of consistent operation without the constraints of TMF development, that we can move forward and deliver. Operator: The next question comes from Matthew Murphy with BMO Capital Markets. Matthew Murphy: I have a question just on the pace of CapEx this year. So first half of the year, you've done almost $700 million CapEx. That's growth and sustaining not including capitalized stripping. And then your guidance is around $2.4 billion, if I'm not mistaken. So you have to spend $1.6 billion to $1.8 billion, call it, back half of the year. Am I thinking about that right? Jonathan H. Price: Yes. I'll let Crystal speak to the details behind that. Of course, we have increased our capital guidance for the second half of the year in large part based on the sanctioning of HVC MLE, which goes to both capitalized stripping, but it also, of course, goes directly to the growth capital as well as some of the additional capital that we've just discussed for TMF development at the QB. But Crystal, over to you. Crystal J. Prystai: Yes. Thanks, Matt, for the question. You're right. So year-to-date, we've spent $700 million on capital expenditures, excluding capitalized stripping and our total for the year is at the low end, $2.3 billion. So that's a reasonable run rate in terms of what you're thinking that would put us around $1.6 billion over the second half of the year. Again, a large portion of that is in relation to growth and that number, again, has increased because it previously didn't include the sanction capital associated with HPC MLE over the balance of the year. So we have now embedded that spending for the second half of the year. And that's why I think you're seeing that increase in the run rate. Of course, we also have embedded the TMF expected costs associated with that work is the plan, and you'll see some of that coming through in the third quarter as well. Matthew Murphy: Okay. Yes, it's just the magnitude of the step up. I mean, do you worry about being able to get that done this year? Or are there some big ticket items in there that you're confident you'll see that spend? And is a lot of the tailings spend, therefore yet to come in the back half of the year? Crystal J. Prystai: Yes. I think the run rate is reasonable. We've done a detailed scrub through the projects to understand exactly what is remaining, ongoing. We do have a few larger projects on the sustaining side that we expect to kick off, including the Antamina tailings lift associated with the Mine Life Extension. We have the QB truck shop that we're continuing construction on. We also have some demobilization of facilities as we begin the next phase of mining there. So with that, in addition to HVC MLE, which, of course, we have a rigorous schedule associated with the project and the CapEx that we've articulated is in line with that schedule. And then in the context of TMF, we have spent cash to date. We haven't disclosed what that figure is, but we can get that out to folks as required, but we do expect that spending to continue through the second half of the year. And really maybe to articulate a bit more about why that number is the number that it is. We did have spend associated with TMF embedded in our sustaining capital guidance for this year. But the amount and distance of mechanical movement of sand related to the TMF and the related cost of that work has increased that expected cost and guidance in relation to staff. Operator: The next question comes from Carlos De Alba with Morgan Stanley. Carlos De Alba: Just on QB, could you please provide a little bit more comments around the shiploader repairs? How long would it take if you have already started? And also if there is any -- maybe you mentioned this, but I may have missed it, if there is any impact on CapEx that are material because of the repairs? Jonathan H. Price: Yes, Carlos, thank you for that question. As you know, we disclosed the challenge with the shiploader back in June of last year is essentially the cause for that was a brake failure on the shovel, which cause an overextension of the shiploader and of course, some damage associated with that. It took some time to be able to access the shiploader. So we've even assessed the repair work, and that was because we were required to apply for and obtain some marine permits. The assessment of that damage is ongoing, and the repair plans are being finalized associated with that work as well. As we've said, we do think that's going to be an extended shutdown now that will extend in the first half of 2026. We haven't got a finalized capital number for that repair at this point in time because that assessment is ongoing. Importantly, as we've said, the work on the shiploader and the downtime of the shiploader is not impacting our production here. As you'll recall, previously, we had in place trucking arrangements while we were awaiting the completion of the shiploader originally that was allowing us to move material to either smelters in Chile or to other ports in Chile. We've just reactivated that, and we have that trucking fleet operating daily. So no production constraints, and that's allowed us to minimize any buildup in inventory at the port. Carlos De Alba: Right. Fair enough. And then just if I may, a second question, just on the sequence of the projects for Zafranal and San Nicolas, well, both are likely to be sanctioned or may be sanctioned by the end of this year at the earliest. Is it fair to think that Zafranal probably is ahead and maybe will be developed earlier? Jonathan H. Price: I mean I think it's fair to say that Zafranal is more advanced in terms of the permitting status, in terms of the construction readiness of that team, for example. However, we consider both of those to be options while we're saying we would like to get them ready for sanction by the end of the year, of course, those are decisions that are yet to be taken and the range of factors that will play into those decisions. So I wouldn't give any particular guidance now on the sequencing of those projects. Think of them as options that we have in the portfolio as we look to derisk and progress those options to the point that we could take sanction decisions when ready. Operator: Our next question comes from Craig Hutchison with TD Cowen. Craig Hutchison: Just on the Highland Valley extension. Now that you guys have made a final investment decision, is there a plan to file a technical port? And just maybe as an interim, can you give me a sense of what throughput you're looking at to achieve that annual production rate of 132,000 tonnes a year? Jonathan H. Price: Yes. So we will publish a technical report. We expect that to happen in August of this year. And of course, you'll get all the details associated with that. The throughput throughout the life of the future mine will be variable. Of course, it's going to be a product of the ore we're mining. You'll see in our disclosure that we go through various phases here, where we're mining different pits. Of course, there's different ore harnesses associated with the ore coming from those pits. So there will be variable throughput is the answer and variable grade, of course, that goes with that. Crystal J. Prystai: And Craig, we did disclose in our Investor Day in November of what a production profile would look like for HVC MLE. So I just encourage you to go back and look at that as you think about it, it shows the variability. Craig Hutchison: Crystal, I guess to get to the 132,000 tonnes per year, I would assume the throughput has to be materially higher just based on your reserve grade unless I'm missing something. Jonathan H. Price: I mean I think we are adding capacity to the circuit. We're adding mills there to increase the throughput of material and also to improve recoveries of material. I should say. I mean, last year, you saw our production at HVC come in just below 100,000 tonnes this year. Of course, that production guidance is materially higher in the sort of 140, 150 range. If you see that year-on-year, currently through the operations that HVC and that's been driven this year by the processing of additional Lornex ore. And I think that's what you should expect going forward is variability depending on the ore type that's dominating mill feed at any point in time. Craig Hutchison: Okay. And then just on QB. How are the recoveries progressing? And are you guys -- do you feel like you'll be through the transitional ore this quarter? Or is that still kind of [indiscernible] in Q4? Jonathan H. Price: Yes, I'll just ask Shehzad to talk about that in terms of the transition ore, where we are on recoveries and what we're doing there to continue to drive those higher. Shehzad Bharmal: Thanks, Craig. Craig, as we had noted last year that we did expect lower recoveries in the first half as we were dealing with more transition ores. And our recovery performance was just slightly below what we had expected due to the inconsistency in the first half of the down dates. We do expect to have better quality ore in the second half with a high grade and higher recoveries. And the transition ores will be variable. But yes, we expect lot less transition ore in the second half and in 2026. Operator: The next question comes from Myles Allsop with UBS. Myles Allsop: Yes. Just a couple of questions. Maybe first on QB and Collahuasi, as mentioned in your presentation, it sounds like discussions are not happening at the moment. Is that right? Or is there any progress in terms of looking at that option seriously? Jonathan H. Price: Look, there are discussions regarding QB-Collahuasi. I'm not going to go into those because, of course, they're confidential in nature. But as we've said before, we recognize the potential of the opportunity there for synergies. We will always do what's in the best interest of our shareholders in that regard. As you can see, right now, we have our hands full with ramping QB up to steady state, which has to be our priority here to make sure we get stable production there and then the cash generation that this asset is capable of delivering. But as I mentioned, in parallel, we continue to think about, continue to discuss the potential synergies there, but I won't unpack discussions given they're confidential. Myles Allsop: That's fair. And then just going back to the 2 issues at QB, why is it taking a year to fix the shiploader if it's overextended? It's a new shiploader. Seems an awful long time. And obviously, there is a meaningful OpEx impact. And with the tailings, when will -- when are you hoping to get that complete? Is it right to assume that, that will be sorted largely by the end of this year? Or is that going to drag? Jonathan H. Price: So I'll hand the shiploader question over to Ian Anderson in a moment. I'm just going to talk about tailings. I mean, of course, given the fact that we have maintained our guidance for 2026, our expectation is that we put the TMF issues behind us this year. And that's what we're providing for in our guidance. So as I mentioned, it's sort of a onetime event associated with ramp up. And when we get through that phase of work, we move into a steady state operation. So it's not something we expect to be plaguing this operation indefinitely at all. It's something we expect, it's a discrete piece of work, we'll get that resolved and move past it, and then we'll be able to secure the online time essentially that we need from this operation and impeded. Ian, would you like to make some comments just on the shiploader outlook, please? Ian K. Anderson: Sure. Thank you very much, Myles, for the question. So despite the fact that we said it would conclude in the first half of 2026, that's not saying that it will, in fact, take a year. At this point, we're really carefully defining the nature of that work. So as a result of the brake failure, of course, we have to assess all of the structural elements, make sure that, that shiploader has returned safely. And similarly, do we complete all the work to get it back into great condition. And so we'll progress that project as we go. Of course, we are dealing with maritime authority. That can cause permit delays, and we certainly want to be cautious about how we deal with that announcement. So I want to make sure that, that continues at pace, but at the same time, the nature of the incident [indiscernible]. Operator: The next question comes from Bill Peterson with JPMorgan. William Chapman Peterson: On the higher CapEx guide for Highland Valley Mine Life Extension relative to last year's strategy day, it looks at around 15% to 20% higher. Can you provide additional color or breakdown between materials inflation, contingencies you mentioned or any other factors? And then is there any read-through for project sanctioning for Zafranal or San Nicolas, for example, should we expect a similar sort of double-digit increase at this stage just to be prudent? Or any read-through at all? Jonathan H. Price: Yes. Look, so on the HVC piece, I mean, I won't specifically give that breakdown. But as I mentioned, there's a range of things in there. And this project level contingency, it's inflation, it's cost escalation, it's the potential for tariffs on construction materials, which we think is a real driver, of course, particularly in between the U.S. and Canada. So that is something that we've reflected here. Importantly, as I mentioned, it's also the acceleration of the procurement of mobile equipment that we've brought forward from later project phases. And that materially derisks the project and the rate at which we'll be able to essentially access the valley pit for the long term. So those are important derisking elements in our view. And I'll also ask Crystal just to comment on some of the process by which we looked at this capital spend through the investment approach here that we've taken and our determination to ensure that we give robust capital numbers that can be delivered. Crystal J. Prystai: Sure. No. Thanks, Bill. Look, we've advanced this project through the final stages of our project delivery framework as well as through our governance processes, including through our investment committee. Those processes embed the final project requirements, the construction readiness, probabilistic modeling around various facets of the estimates involved as well, we had detailed independent assurance provided on many areas of the business plan as well as in the context of construction. readiness. So all of those are learnings that we took from the QB projects that we've committed to embedding as we go forward into future projects, including in HVC MLE. And the conclusion of that work ahead of sanction has led to the capital range that we're disclosing, of course, in addition to the factors that Jon noted in the context of what's embedded in that [indiscernible]. William Chapman Peterson: So I think, it will be as read-through for future? Jonathan H. Price: Yes. I was just going to pick up on that. Look, every project has its own characteristics. We will take the same approach with future projects that Crystal just outlined in terms of using independent assurance, taking probabilistic modeling to ensure the full range of, obviously, economic outcomes associated with the project, but also the full range of potential input assumptions here which goes in capital because we need to ensure that we are reflecting uncertainties or known unknowns in the project as we're setting for the assumptions here. But again, as I mentioned, these projects has its own unique characteristics. So I don't think you should take a direct read-through from that. But what I can say if we will apply the same rigorous approach in Zafranal and San Nicolas that we've applied to HVC. William Chapman Peterson: Well understood. My next question is not something the team has talked about recently, but as new range, the potential project in the U.S. Just any update on where that project stands in terms of permitting, community engagement and I guess, an opportunity to potentially move faster than what appears to be a pretty strong support within the U.S. in terms of permitting and promoting domestic production? Jonathan H. Price: Yes. Look, I mean, that remains an interesting option for us. It's clearly further out than the Zafranal or San Nicolas here in the schedule. I think the key for us there is to define what is the right project, what is the configuration that will deliver the greatest value in the event that project is developed, and that's the work that we're doing now. And of course, you have to define that before you can start to approach the permitting process in any detail. So I think that's a conversation for later, Bill. We have our hands full with other things right now, but we do continue to work that in parallel. Operator: The next question comes from Chris LaFemina with Jefferies. Christopher LaFemina: I just wanted to ask about, first, on the incremental CapEx for QB for the TMF. How do you decide whether you're going to include CapEx and the project CapEx or in sustaining? Because I would think if you're spending money to ramp the project to full capacity for whatever reason, that would have been part of the project CapEx. I understand it's really just a question of semantics, but when we think about the capital intensity of the project, why wouldn't that be a project CapEx rather than sustaining? Jonathan H. Price: I will hand over the semantics question over to Crystal. Crystal J. Prystai: Hi, Chris. Thanks for the question. In the context of TMF, when we thought about the growth capital for the project, of course, there was construction costs associated with that built into the project capital that we reported against in our results over the first years. I think the pieces that I add to why it's sustaining, I mean, firstly, we're running the operation, and we're producing copper. So I think these things are no longer growth capital. We did expect to spend on the TMF, but that amount, as I mentioned, is more significant than we expected as we are now moving significantly more sand further distances than we expected for mechanical movement and the related cost of that is the expected cost. And I think at this point, it doesn't make sense to extend growth capital and it becomes part of the sustaining capital. Christopher LaFemina: Okay. That's fair enough. And then secondly, just on the shiploader. Do you have any insurance related to the issues there? Or is it all on you? Jonathan H. Price: Ian, do you want to comment on that as well? Ian K. Anderson: Yes. Certainly, we are investigating the root cause, and we'll understand based on that, what the next steps will be in terms of insurance. So yes, we do have insurance coverage and that includes interruptions. Operator: Thank you. We are out of time for further questions. I will now hand the call back over to Jonathan Price for closing remarks. Please go ahead. Jonathan H. Price: Thank you, operator, and thanks again to everyone for joining us today. We look forward to welcoming many of you to our QB site visit on November 3 and 4 of this year. Please reach out to Emma Chapman and our IR team for further information on the site visit or, of course, if you have any follow-up questions on the quarter. So thank you, and enjoy the rest of your day. Operator: This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

Operator: Welcome to Teck Resources Limited's first quarter 2025 results release conference call. At this time, all participants are in listen-only mode. Later, we will conduct a question and answer session. To join the question queue, this conference call is being recorded on Thursday, April 24, 2025. I would now like to turn the conference over to Emma Chapman, Vice President, Investor Relations. Please go ahead. Emma Chapman: Thank you, operator. Good morning, everyone, and thank you for joining us for Teck Resources Limited's first quarter 2025 conference call. Today's call contains forward-looking statements. Actual results may vary due to various risks and uncertainties. Teck Resources Limited does not assume the obligation to update any forward-looking statements. Please refer to slide two for the assumptions underlying our forward-looking statements. We will reference non-GAAP measures throughout this presentation. Explanations and reconciliations are in our MD&A and the latest press release on our website. Jonathan Price, our CEO, will start with an overview of our first quarter. Crystal Prystai, our CFO, will follow with a financial and operational review. Jonathan will conclude with closing remarks followed by a Q&A session. I will now turn the call over to Jonathan. Jonathan Price: Thanks, Emma, and good morning, everyone. Before we get into the quarter, I want to take a moment to acknowledge the current macro environment on slide four. As we all know, the past few months have been marked by volatility and uncertainty. Factors like the threat of a global economic downturn, geopolitical tensions, inflation, and supply chain disruptions have created an uncertain and challenging global business landscape. Despite these headwinds, we believe that the fundamentals for our key metals, copper and zinc, are robust over the medium and long term, as several macro factors continue to drive demand. These metals are essential for global manufacturing and development, industrial policy and national security, electrification infrastructure, as well as the growth of the digital economy. On the supply side, the industry continues to face constraints. At the same time, new demand opportunities are emerging as many economies seek to revitalize their industrial sector. For example, defense spending may be significantly broadened to include areas central to economic resilience, such as upgrades to and expansion of electricity grids, which remain central to copper demand. We see this providing a medium-term boost to metals demand as the world enters into a state-backed, more capital-intensive phase of growth. Even in the short term, we continue to see extreme tightness in the concentrate markets that make up nearly 90% of our revenue, with benchmark treatment charges for copper and zinc at historically low levels. In this environment, Teck Resources Limited is well-positioned for continued value creation. We are growing copper production and improving margins through disciplined operational performance. In addition, we have an active share buyback program, a portfolio of value-accretive copper growth projects, an agile commercial strategy, and a strong balance sheet. Together, these underpin the resilience of our business, which is a competitive advantage for Teck Resources Limited, enabling us to navigate uncertainty while continuing to deliver value through our strategy of balancing disciplined copper growth with returns to shareholders. Turning to slide five, we are closely monitoring the potential impact of tariffs and retaliatory trade measures between the countries we trade with and the risks of wider macroeconomic uncertainty. Although the situation is fluid and evolving rapidly, we do not expect announced tariffs to materially impact our business. That said, the global trade war could weigh on global economic growth with potential implications for metals demand. Today, we are continuing to see strong demand for our copper and zinc concentrates, and we are working closely with our customers with limited impact so far. Our copper and zinc concentrate sales are not exposed to US tariffs, as we primarily sell to Asia and Europe with no sales to the US. On the other hand, Chinese tariffs, if maintained, are expected to apply to our sales of Red Dog concentrate to China, which represent less than 20% of our zinc and lead concentrate sales. However, over the past few years, we have successfully developed a regionally diverse customer base, which gives us greater optionality while trade negotiations are ongoing. Red Dog is a highly valued concentrate in the zinc market, and we have several long-standing customers for this product. We also have other options available, including trail feed integration, delivery outside the Red Dog shipping season, and product swaps. All options support continuity of sales. Turning to trail and our metal sales, refined zinc, lead, and specialty metals such as germanium, indium, and sulfur products are sold into the US, but they are exempt from US tariffs as they are compliant with the USMCA. Overall, Teck Resources Limited has a strong business with diversified products and operations, an agile commercial strategy, and strong logistics capabilities. This enables us to quickly adapt and respond to changing market conditions to mitigate any potential impact on our business. Turning now to highlights from the first quarter of 2025 on slide six. Our profitability improved significantly compared to last year, driven by higher commodity prices and copper sales volumes. Our adjusted EBITDA more than doubled to $927 million. The ramp-up of QB operations continues, and we are seeing performance improvements in key areas such as average daily mill throughput. Production was impacted in the quarter by additional shutdowns, and I will provide more detail on this later in the presentation. During the quarter, QB successfully achieved the completion testing requirements under the $2.5 billion US dollar project finance facility. This is a significant milestone that provides independent verification confirming the robustness of the construction and the capacity of the asset to operate at design levels, providing further confidence in the ramp-up to steady state by the end of the year. In the first quarter, we had strong operational performance across our established operations, particularly Highland Valley, Carmen de Andacollo, and Trail operations, which generated strong profit in the quarter following the successful implementation of a range of initiatives to improve profitability and cash flow generation. Our annual guidance is unchanged across all operations. Our balance sheet remains strong and resilient. We ended the quarter in a net cash position of $764 million, and as of yesterday, our liquidity is $10 billion. Finally, we continue to return cash to shareholders through share buybacks and dividends totaling $568 million year to date. Turning to our ongoing commitment to safety and sustainability on slide seven. Our safety performance was strong in the first quarter. Our high potential incident frequency rate across the operations we control remained low at 0.05. I would like to take a moment to acknowledge the fatality that occurred at Antamina, in which Teck Resources Limited holds a non-operating interest earlier this week. We are deeply saddened by this event, and we offer our condolences to the family, friends, and colleagues of the deceased. As ever, we will support the Antamina team with the investigation and ensure that lessons are both learned and shared. In March, we released our 24th annual sustainability report, which details last year's environmental and social performance, including key areas such as health and safety, support for communities, indigenous peoples, diversity, and climate. A copy of the report is available on our website. Coming back to QB ramp-up on slide eight, as I just mentioned, the successful achievement of completion testing under the QB project finance facility is a significant milestone. It comprised several independently verified operational and technical tests to validate the robustness of the design, construction, and operational performance of QB. This demonstrates QB's ability to generate strong cash flows. We made significant progress in the ramp-up of QB. As you can see on the left-hand side of the slide, we have a plan to consistently achieve design throughput and recoveries and have several data points showing that we can and have already operated at these levels. That said, first-quarter production was impacted for two reasons. First, the previously disclosed 18-day extended shutdown to conduct maintenance and reliability work and progress tailings development, and second, external factors that included a nationwide power outage in Chile in February, leaving the site without power, which affected production for several days, and challenging weather. In particular, challenging weather impacted the rate of material movement for tailings lifts required for the development of the tailings management facility, which was also impacted by slower-than-expected sand drainage times. The result of this slower-than-planned TMF development is that additional mechanical movement is required prior to the installation of the permanent infrastructure, and we expect to extend planned maintenance shutdowns in Q2 and Q3 to complete this work. This is expected to impact production in the short term only, and there are no issues with dam integrity. Once this phase of TMF development is complete, we will be on track for full production ramp-up by year-end and steady-state operation into the future. Moving to slide nine, QB's plant performance continues to improve. In the first quarter, the average daily throughput, excluding the extended non-planned shutdowns, increased compared to the fourth quarter, demonstrating continued improvement in operational stability. Higher levels of transition ore were mined, leading to lower recoveries as expected, and higher-grade ore mined in March increased the average grade for the quarter. For the remainder of the year, we will continue to drive operational performance and expect to achieve higher throughput rates and higher recoveries in line with design. We continue to expect to achieve our production guidance for QB, albeit at the lower end of our previously disclosed range of 230,000 to 270,000 tons. We continue to expect QB net cash unit costs to be between $1.80 and $2.50 US dollars per pound for the full year, although commensurate with production, we expect this to be towards the higher end of guidance. Turning to slide ten, we expect significant growth in our copper production with improving margins this year. Our copper EBITDA margin increased last year from 33% to 42%. This year, current consensus estimates show further improvement to 51%. We continue to expect our copper production to grow to between 490,000 to 565,000 tons for the full year, from 446,000 tons in 2024, reflecting the ongoing ramp-up of QB and improved grades and throughput at Highland Valley. We also expect a significant reduction in our copper net cash unit costs to $1.65 to $1.95 US dollars per pound from $2.20 US dollars per pound in 2024, reflecting an increase in copper and molybdenum production as well as continued cost discipline across our installations. Slide eleven outlines our ongoing growth trajectory, underpinned by our existing portfolio of operating mines, coupled with our well-funded value-accretive near-term copper projects, including the mine life extension at Highland Valley in British Columbia, and our high-returning greenfield projects at Zafranal in Peru, San Nicolas in Mexico. Compared to QB, these greenfield projects are significantly less complex and smaller in scope with lower capital intensities. We are also working to define the most capital-efficient and value-accretive path for further growth of QB through optimization of the mill and low-capital debottlenecking opportunities that could increase throughput by 15% to 25%. With these projects, we have a clear path to increase our annual copper production to approximately 800,000 tons before the end of the decade. On slide twelve, we will cover the key progress updates and major future milestones as we work to bring these near-term projects to potential sanctioning this year. An independent review of the mine life extension project at Highland Valley was completed in the first quarter and confirmed construction readiness of the project. This means we should be positioned for a potential sanction decision after we receive the necessary permits, which potentially could be in mid-2025. At Zafranal, the project is progressing as scheduled, and we received the advanced works permit on April 10. We aim to submit the construction permit in Q2, and the project could be ready for a potential sanction decision in late 2025. At San Nicolas, engagement with government authorities and other stakeholders is ongoing to support our permit application. We expect to complete the feasibility study in the second half of 2025, positioning the project for a potential sanction decision following the receipt of necessary permits. At QB, our focus is to ramp up to steady state. At the same time, optimization is progressing, and detailed planning for debottlenecking is underway. This should enable us to submit the declaration of environmental impact or DEER permits application in the second half of the year. We look forward to progressing these well-funded near-term projects to sanction, launching the next phase of Teck Resources Limited's copper growth. I will now hand over to Crystal to provide further details on our first-quarter results. Crystal Prystai: Thanks, Jonathan. Good morning, everyone. I will start with our first quarter 2025 financial performance on slide fourteen. We more than doubled our adjusted EBITDA in the quarter compared to a year ago to $927 million. This was primarily driven by higher copper and zinc prices and increased copper sales volumes due to strong production performance across established operations. We generated increased revenue and profit from byproducts, including molybdenum from QB and Highland Valley, as well as silver, germanium, and other critical metals from Trail. We also benefited from a weaker Canadian dollar as we converted US dollar-denominated revenue into Canadian dollars. Our results reflect positive pricing adjustments of $106 million, primarily as a result of higher copper prices. Our finance income increased significantly to $91 million compared with $27 million a year ago, as our investment income increased due to our balance since the sale of the steelmaking coal business last year. In February, we paid a final 2024 Canadian income tax of $130 million, primarily related to earnings and the proceeds from the sale of the steelmaking coal business. Importantly, we continue to return cash to shareholders throughout the quarter, with $568 million returned year to date. Turning to slide fifteen, which summarizes the key drivers of our financial performance in the first quarter compared to the same period in 2024. Our adjusted EBITDA increased by 127% in the first quarter as a result of strong base metals prices, higher copper and zinc concentrate sales volumes, and the positive impact of a weaker Canadian dollar. Copper sales volumes increased by 11% from Q1 of last year, reflecting higher volumes from Highland Valley and Carmen de Andacollo. Zinc concentrate sales volumes increased by 10% due to the timing of sales from Red Dog and increased volumes from Antamina. Our strong adjusted EBITDA also reflects improved copper and zinc unit costs, reflecting cost discipline across our business. This was partially offset by an increase in royalties, primarily as a result of increased profitability at Red Dog. Now looking at each of our reporting segments in greater detail and starting with copper on slide sixteen. In Q1 2025, gross profit before depreciation and amortization from our copper segment increased 90% to $704 million compared with the same period last year, primarily due to higher copper prices and sales volumes, and increased byproduct revenues from molybdenum and zinc. This reflects strong performance across our established copper operations. Copper production increased by 7% to 106,000 tons, driven by increased grades and mill throughput at Highland Valley and Carmen de Andacollo. Production significantly improved at Highland Valley as we advanced mining in the higher-grade Lornex pit, which has softer ore leading to increased mill throughput. Carmen de Andacollo also had improved mill throughput as a result of increased water availability compared to the same period last year, which was affected by drought conditions. Antamina performed in line with expectations. Our net cash unit costs improved by 32 cents US per pound to $2.04 US per pound as a result of higher copper production, increased byproduct credits, reduced smelter processing charges, and lower transportation costs at QB. This strong performance led to an improvement in our gross profit margin before depreciation and amortization of 13% to 47% compared to the same period last year. On April 9, QB's third and final labor union ratified a new three-year collective bargaining agreement. This completes all labor negotiations for QB's workforce with labor agreements now in place through 2028. Looking forward to the rest of this year, we expect QB to continue to ramp up to steady state by year-end, as well as increased quarterly copper production at Highland Valley as we process increasing proportions of higher-grade Lornex ore through 2025. For the full year, as Jonathan mentioned, we continue to expect growth in our copper production with improving margins in line with our guidance of 490,000 to 565,000 tons at a net cash unit cost of between $1.65 US and $1.95 per pound. Turning now to our zinc segment on slide seventeen. Our profitability in zinc improved significantly in the first quarter with a 79% increase in gross profit before depreciation and amortization to $225 million. This increase was due to higher zinc prices, strong sales volumes at Red Dog, and improved profitability at our Trail operations. Our Red Dog zinc concentrate sales of 91,000 tons were higher than our guidance range for the quarter of 75,000 to 90,000 tons due to the timing of sales. Red Dog production was impacted by lower grades as expected in the mine plan. Our net cash unit cost improved to 59 cents US per pound from 67 cents US per pound in the same period last year, driven by reduced smelter processing charges, and partially offset by the impact of lower production levels. At Trail operations, we generated strong profitability in the quarter reflecting increased production of byproducts such as silver, germanium, and other critical metals, as well as the successful implementation of initiatives to improve profitability and cash flow generation at Trail. Looking forward to the second quarter, we expect zinc concentrate sales from Red Dog of 25,000 to 35,000 tons reflecting the normal seasonality of sales. Our full-year production and unit cost guidance for our zinc segment is unchanged. Our guidance for zinc concentrate production remains at 525,000 to 575,000 tons, and we continue to expect refined zinc production of 190,000 to 230,000 tons for the year. Net cash unit costs are expected to be between 45 and 55 cents US per pound. Turning to our balance sheet on slide eighteen. Our balance sheet remains strong and resilient. We were in a net cash position of $764 million at March 31, and as of yesterday, our liquidity was $10 billion, including $5.8 billion of cash. Our cash balance decreased in the first quarter, primarily due to continued return to shareholders through dividends and share buybacks, the final 2024 tax payment relating to the earnings and sale of the steelmaking coal business, and the seasonally larger royalty payment to NANA in respect of Red Dog's strong Q4 2024. Our remaining outstanding term notes of $1 billion US are long-dated. We will continue to deleverage as we make semiannual repayments on the QB project finance facility through 2031. With the achievement of the QB project financing completion testing requirements, Teck Resources Limited and the other sponsor guarantees of the project finance facility have been released. Our balance sheet strength and investment-grade credit ratings enable continued value creation in current market conditions. On slide nineteen, we remain committed to our disciplined capital allocation framework, which balances investment and value-accretive growth with returns to shareholders while maintaining a strong balance sheet through the cycle. Our capital allocation framework and project sanction requirements ensure the prudent deployment of capital. All growth projects must meet stringent criteria, delivering attractive risk-adjusted returns and competing for capital. We are continuing to execute on our $3.25 billion authorized share buyback, and we are committed to returning between 30% and 100% of available cash flows to our shareholders. Looking at our cash returns now on slide twenty. We continue to build on our strong history of cash returns to shareholders, which currently total approximately $5.4 billion since 2020. We are in the market daily, actively buying back our shares under this $3.25 billion share buyback announced last year, with more than half of the buyback now complete. We have increased the daily number of shares. As of yesterday, we've executed $1.75 billion of the $3.25 billion authorization under our normal course issuer bid, including over $500 million year to date. This leaves approximately $1.5 billion of our authorized share buybacks remaining to further improve our per-share value. With the strong cash flow generation potential of our business, we could see further cash returns to shareholders in line with our capital allocation framework. Turning to our near-term growth now on slide twenty-one. Our value-accretive near-term copper projects are well-funded. While the project capital attributable to these growth projects remains unsanctioned and uncommitted, we continue to expect to deploy between $3.2 and $3.9 billion US over the next four years for our near-term copper projects. We will continue to be disciplined in our assessment and progression of these projects to ensure value-accretive growth. As we continue to balance our growth in copper with cash return to shareholders, we can continue to significantly impact the accretive growth potential of our metrics on a per-share basis as shown on slide twenty-two. Last year, with the ramp-up of QB and with a significant portion of our $3.25 billion share buyback completed, we increased our copper production per share by 54% compared to the prior year. By 2026, as we stabilize QB at full production and complete the remaining authorized share buyback, our copper production per share could increase by a further 34% to 51%. Beyond that, our copper production per share could increase substantially as we bring our near-term value-accretive growth projects online. This does not consider the impact of any further share buyback that could be authorized under our capital allocation framework as a result of the strong cash generation potential of our business. Through the end of the decade, our copper production has the potential to increase rapidly on a per-share basis. With that, I'll now turn it back over to Jonathan. Jonathan Price: Thanks, Crystal. Turning to slide twenty-four, we remain focused on our priorities to create value for our shareholders. Completing the QB ramp-up to steady state operations, continuing to drive operational excellence across our portfolio of high-quality copper and zinc operations and projects, growing our copper production and improving our margins, remaining committed to returning cash to our shareholders by continuing to execute our authorized share buyback program and paying our base dividend, progressing our value-accretive near-term copper projects to possible sanction decisions in 2025, positioning us for our next phase of copper growth, and maintaining the resilience of our business to navigate uncertainty and create value leveraging our agile commercial strategy and strong balance sheet. To wrap up on slide twenty-five, our strategy remains delivering growth and creating value in a responsible and disciplined way. We will continue to balance investment in growth with returns to shareholders. We have the resilience to successfully navigate the current environment as well as potentially exploring evolving opportunities. As a pure-play entity transition metals company, Teck Resources Limited is uniquely positioned to deliver significant value to shareholders through the execution of our copper growth strategy. Apologies again for the disruption on the line during that portion of the call. Hopefully, you can hear us clearly now. With that, operator, please open the line for questions. Operator: Thank you. One under your touch-tone phone. You will hear a tone acknowledging your request. If you wish to remove your question, please press star then two. We ask that you limit yourself to one question and one follow-up. The first question is from Mark Wachadeau with St. Go ahead. Mark Wachadeau: Hi. Good morning. Questions on QB. It sounds like you're pushing back the target for sustainable full production at the operation from midyear to end of year, yet the guidance is unchanged. Can you give us a sense of how long these extended maintenance outages related to the tailings facility are supposed to impact Q2 and Q3? I'm curious, what gives you confidence at this point, given the pretty weak Q1, that you could still make even the low end of the range for the year? Jonathan Price: Hi, Mark. Thank you for the questions. Look, we'd always expected 2025 to be a build of production throughout the year and achieving steady state operations towards the end of the year rather than in the first part of the year. I think that's no different from what we've guided to today. We still expect to deliver the guidance of 230,000 to 270,000 tons this year, albeit now towards the bottom end of that range. Yes, there's some additional work we have to do here around the tailings facility. We're making good progress. We're implementing measures to complete that work quickly, and that includes initiatives which will allow us to speed up sand drainage and deposition of material at the dam. As we've said, completing this work will require some additional downtime in Q2 and Q3, which is why we anticipate being at that lower end. Once we get through this phase of the transition from the start of dam to ongoing sand lifts, it's essentially a one-time event. We can then operate at steady state for the life of the facility. That's the phase of work we're going through this quarter and next quarter. That's why we have confidence that we can end the year running at steady state, and that's why we believe that we will continue to deliver within the guidance range that we've set out for 2025. Knowing that this was a ramp-up year for the operation, we reflected in that guidance range the uncertainty with operations in this phase of the life of a project. That's what you're seeing in our disclosures today. But I think, critically, we remain confident of delivering production within that range. Mark Wachadeau: Sorry, can you give us detail on how long the expected outages will be for Q2 and Q3? Jonathan Price: Look, that will be a function of the work to be done, which will be determined by the operations team and will be a function of the improvements that we make in sand drainage and the pace of material deposition at the dam. It's not possible to be precise on the number of days that we will need to achieve that this year at this point in time. But I can tell you that the range of outcomes that we expect to be likely in terms of outages is reflected in the guidance. It's reflected in the fact that we continue to hold that guidance, yet we are pointing towards the lower end of that range. Mark Wachadeau: Is there anything at this point that impacts the guidance range for 2026 to 280,000 to 310,000 tons based on what you're saying? Or are all these issues expected to be solved by year-end? Jonathan Price: The short answer is no, Mark. We don't expect to see any change to the guidance for 2026 or beyond. The work that's required here on the tailings to transition into steady state, we expect to be finished in the third quarter of this year. As we move into 2026 and beyond, we don't see any ongoing impact of the work that we're undertaking today. Mark Wachadeau: Thank you. Jonathan Price: Thanks, Mark. Operator: The next question is from Patrick with Deutsche Bank. Please go ahead. Patrick: Can you hear me okay? Jonathan Price: Yes, all good. I got you, Patrick. Patrick: Okay. Alright. My question is just around the next copper project that you're highlighting now. First of all, can you realistically approve something like Zafranal in the current macro environment, or would you wait for greater clarity around the macro environment generally? It also seems that three or four of your projects are converging on a decision within the next six to twelve months or so. Can you talk about management bandwidth to manage these projects, picking off the ramping up, and how you're thinking about project phasing with all of these options potentially? Jonathan Price: Thanks for the question, Patrick. Of course, as we look at the projects that we have in the portfolio here, what we're focused on is the long-term perspective for the fundamentals of the commodities associated with those projects. We see nothing at this point in time that changes our view or our conviction on the long-term fundamentals for both copper and zinc being the key components of growth, with copper being the primary target. There's nothing in that respect that causes us to take a pause in that regard. The growth projects that we have in the portfolio are critical to the long-term strategy. As I mentioned in the call, these are projects that are smaller in scope, lower in complexity than QB, for example, with low capital intensities, which should be very competitive projects and should deliver strong returns. From that perspective, no change. Of course, we always continue to evaluate those things when we take our projects forward for sanction. We always look at a range of forward pricing scenarios to ensure that those economics and returns will be robust. Just in terms of your comment on organizational bandwidth, just to put these projects into context, Highland Valley mine life extension is a brownfield project at a site where we've been operating since the sixties, and we've undertaken numerous previous brownfield expansions of that site. The team is all in place, is ready to go, and as I mentioned, we had a very positive independent review of our construction readiness for that project. We've got a good level of confidence moving forward with that. The other greenfield project that we would deliver and Teck Resources Limited would take the lead on is Zafranal because, of course, we're 80% of that project. That's where we would be delivering. Again, we've been building a very strong team over an extended period of time now, coupled with our EPC partners, so we're well set up, subject to sanction and permits, of course, for construction and delivery of that project. San Nicolas is somewhat different because, of course, that is an incorporated joint venture with Agnico, which doesn't mean Teck Resources Limited is taking the lead on delivering that project. It's actually the joint venture that does that work. Of course, we'll be very closely involved in a range of ways in support of that project, and in particular, really taking a lead on the commercial aspects of that project when it comes to the marketing and sales of copper and zinc. But that necessarily, by virtue of the way that that's been set up, is a lower lift on the organization here. We do believe that this is manageable, Patrick. We've been preparing for this for a number of years in terms of systems, processes, procedures, etc. But most importantly, bringing in the talent, developing the teams, and getting ourselves set up for success in execution. Patrick: Thanks, Jonathan. Operator: The next question is from Carlos De Alba with Morgan Stanley. Please go ahead. Carlos De Alba: Yeah, thank you very much. Good morning. I would like to check if you received any feedback or substantial or potential improvement on the completed QB independent testing that you successfully did recently. Congratulations on that. But, you know, I am interested to know if there was any suggestion for any potential improvement that they provided. Jonathan Price: Look, I think the short answer is no. That's not really the way that process works. There's a series of tests that have to be achieved based on performance, and those tests were achieved and individually validated and certified. But it's not really an improvement-focused process, Carlos. Carlos De Alba: Alright. Thanks. How long was the QB shutdown after the power outage? It was several days, but could you provide a more precise number of days? Jonathan Price: Yeah, so Carlos, we were directly shut down for a couple of days, and then it took us a couple of days to get back up and running to full rates again. Broadly speaking, four days, half of which was downtime and then half of which was recovery. Of course, it's the first time at QB that we've had to deal with one of these events and get the site back up and running to full capacity. So that's a learning experience. Perhaps in the future, we'll be able to come back online more quickly, but we have to be prudent the first time out dealing with an event like this at that site. Thanks, Carlos. Operator: The next question is from Craig Hutchinson with TD Securities. Please go ahead. Craig Hutchinson: Hi there. Good morning. Just want to ask about the zinc case. In your remarks, you said that about 20% of sales of Red Dog is going to China. If tariffs remain in place, any indications or concerns about the sales right now, and have you redirected material? On the flip side, are you purchasing materials for Red Dog from China that are subject to tariffs, and could that be an issue for Red Dog or Teck Resources Limited? Jonathan Price: Thanks, Craig, for those questions. Look, on the outbound, as I mentioned, given the levels of tariffs being placed on imports from the US into China, that creates challenges with supply at the moment. Fortunately, at this time of the year, given the shipping seasons at Red Dog, we're not moving material from the site in any event. So we're pretty well covered at present. The commercial team is working very hard, as I mentioned on the call, with a range of options and alternatives here, which could see us placing material elsewhere through this period of time. The bottom line is, Craig, that we don't expect to face a material impact here as a result of tariffs between China and the US. As I said, we've got a number of months up our sleeve here to resolve any issues that might arise. There is no risk the other way around. We're not exposed on the inbound here in terms of imports of goods from China into the US or into Red Dog. So no risk there. Craig Hutchinson: Okay. Thank you. Jonathan Price: Yeah, look, as I said, tragic events, we will work very closely as we always do with the Antamina team here to understand what's happened and to look at learnings for the future and learnings not just for Antamina, of course, but for the industry more generally. Our understanding is that the site will be returning to operations today, so back up and running. Operator: The next question is from Myles Allsop with UBS. Please go ahead. Myles Allsop: Okay, thanks. Maybe just on QB, should you get the licenses to be able to distribute those about 242,000 tons a day? Is this the kind of optimization debottlenecking? Jonathan Price: Yeah, I mean, I think that there's a level of optimization that's allowed under the current permits, Myles, as we have it today, which is essentially a 10% allowance from nameplate. So that's something we already have in hand. In terms of the submission of the DEER, let's say that goes in in July of this year, we would expect to have an approval on that twelve months subsequent. So that would be July of the following year, which fits very well with the time frame we have for the debottlenecking. So the existing permit really allows for the optimization that we've been talking about, and this DEER or amendments to the permit allows for the debottlenecking. So we can get the optimization with what we have now, and with the DEER, we can unlock the debottlenecking. Myles Allsop: That helps. Thank you. Operator: The next question is from Lawson Winder with Bank of America. Please go ahead. Lawson Winder: Hi, good morning, Jonathan and team, and thank you for the update today. Just maybe ask again about Q2 and just going back to one of the challenges that you experienced last year, that would be stabilization of the mix of clay and the seed. Is the asset now on track to be able to deliver that consistency in the second half? And then also on that geotechnical issue of the pole and the slip on the ramp, is that work now complete, and was that in fact localized? Jonathan Price: Yeah, so there's no ongoing manifestation of that geotechnical issue. That's very much behind us, Lawson. In terms of the clays, as we go through this year, we start the year processing a lot of transition ores, which is why you've seen some lower recoveries in the first quarter. As the year progresses, we expect to have less transition ore and therefore less clay and therefore better recovery. So all of those things are connected. That's been in the plan for this year. It's why we've expected to see quarter-over-quarter improvements through the year. But nothing different from what we've communicated previously there, Lawson. Lawson Winder: Thanks, Jonathan. Operator: The next question is from Bill Peterson with JPMorgan. Please go ahead. Bill Peterson: Yeah, hi. Good morning, and thanks for taking the question. On zinc and I guess on Trail specifically, I've got a question on profitability. How should we think about the profitability in Trail for the back half of the year? Will the byproduct contribution repeat in the coming quarters? And maybe beyond that, what initiatives do you have that might be driving further improvement in profitability? Jonathan Price: Thanks for that, Bill. I'll ask Crystal to respond on the outlook for Trail for the balance of the year. Crystal Prystai: Thanks, Bill. Nice to hear from you. In Q1, as you mentioned, we had very strong performance at Trail. We generated $80 million of gross profit before depreciation and amortization. That was really the result of the implementation of initiatives to improve cash flows. Those have been fully embedded now, and we expect those to continue through the rest of the year. We'll continue to realize the benefit of those. In terms of the contribution from byproducts such as silver, germanium, and indium, and then obviously, the FX rate has an impact. We built up a stockpile of materials during the period when we had the Kivcet Boiler under repair in 2023. We are progressing treating those materials, which is where you're seeing the benefit of some of those metals coming through and supporting the profitability. We expect that to continue through this year, but of course, that's not a long-term solution. The TC environment for Trail continues to be challenging, but the cost structure changes that we've made there have led to some improvements that we're seeing come through, and we expect that to continue. Bill Peterson: Thanks for that. And then I guess for the West, any thoughts on the upcoming presidential election and the type of impact it might have on the industry? Jonathan Price: Look, nothing in particular. There's obviously an election early next week. We will know who the prime minister will be at that point in time. What we can say is that both sides of politics here are very supportive of the resource industry. That's been a key part of their platforms. Whether that's about deregulation and simplification, whether that's about actually putting in place investment vehicles to help with the development of the industry here. I think there's a lot of support for resources. Canada has a real potential competitive advantage and a great lever through which to engage with the US on something that's clearly very important to them. We hope to see that progress in the weeks and months ahead, but I think however the election works out, Canada will remain very focused on its mining industry, on its critical minerals, and we do expect to see supportive legislation to help ease the doing business essentially in the country. I think the outlook is positive from that perspective. Bill Peterson: Thanks, Jonathan. Operator: We are wrapping up time for further questions. I'd now like to hand the call back over to Jonathan Price for closing remarks. Jonathan Price: Thank you, operator. Apologies once again for the issues on the call today. I hope you were able to hear everything you needed to hear. If not, as ever, please follow up with Emma and the investor relations team. I would just close off by saying the business is in really good shape. We are very resilient. We're managing very well through these turbulent times, both through our commercial strategy and through the strong balance sheet we have. We will continue returning capital to our shareholders per our commitment of balancing that with growth, and we've discussed QB extensively on this call. We will get past this tailings situation by the third quarter of this year, move on to steady state operations, and as I said, we see no changes to guidance this year in the coming years. Thank you very much for joining us all today, and enjoy the rest of your day.

Operator: Ladies and gentlemen, thank you for standing by. Welcome to Teck Resources Limited's Fourth Quarter 2024 Earnings Release Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question and answer session. To join the question queue, press star then one on your touch-tone phone. This conference call is being recorded on Thursday, February 20, 2025. I would now like to turn the conference over to Emma Chapman, Vice President, Investor Relations. Please go ahead. Emma Chapman: Thank you, operator, and good morning, everyone, and thank you for joining us for Teck Resources Limited's fourth quarter 2024 conference call. Today's call contains forward-looking statements. Actual results may vary due to various risks and uncertainties. Teck Resources Limited does not assume the obligation to update any forward-looking statements. Please refer to slide two for the assumptions underlying our forward-looking statements. We will reference non-GAAP measures throughout this presentation, and explanations and reconciliations are in our MD&A and the latest press release on our website. Jonathan Price, our CEO, will start with an overview of our fourth quarter and full-year results, Crystal Prystai, our CFO, will follow with the financial and operational review, and Jonathan will conclude with closing remarks followed by a Q&A session. With that, I'll hand the call over to Jonathan. Jonathan Price: Thank you, Emma, and good morning, everyone. I'll start with highlights from 2024 on slide four. Last year was a transformational year for Teck Resources Limited. We made significant advancements in our value creation strategy. We completed the sale of our steelmaking coal business for value, enabling Teck Resources Limited to reposition as a pure-play energy transition metals company focused on copper and zinc. With the $8.6 billion in proceeds from the transaction, we announced the largest cash return to shareholders in our history and began executing the return immediately. In 2024, we returned $1.8 billion in cash to shareholders, including $514 million in dividends, or approximately $1 per share, and $1.25 billion in share buybacks. We also enhanced our resilience by further strengthening our industry-leading balance sheet, reducing our debt by $2.5 billion, and retaining funding for our near-term value-accretive growth projects. We currently have $11.3 billion in liquidity, including $7.1 billion in cash. This includes our sustainability-linked revolving credit facility, which we've recently reduced by $1 billion to $3 billion and extended for a five-year term to October 2029. We were in a net cash position of $2.1 billion as of December 31, 2024. We generated $2.9 billion in adjusted EBITDA, more than double the prior year. We set a record for annual copper production, with a 50% increase from the prior year to 446,000 tons. In zinc, Red Dog had strong performance, increasing zinc in concentrate production while improving our net cash unit costs by 16 US cents per pound. We continue to have a strong focus on cost management and managing the controllable costs across our business. We are starting to see the positive impact of the structural cost reductions we have implemented across our business following the sale of the steelmaking coal business in July. Over the full year, we've reduced our corporate costs by 21% or $88 million compared with 2023. We did all this safely, with a high potential incident frequency that remained low across the operations that we control. Finally, we progressed our value-accretive near-term copper growth projects. We completed construction of QB in Chile and ramped up the operation to design throughput by the end of the year. We continue to lay the foundation for our next phase of copper growth by progressing our near-term copper projects. Overall, we made significant progress across the four pillars of our strategy for responsible growth and value creation. Now looking at our fourth-quarter highlights on slide five, our strong full-year results were enabled by our fourth-quarter performance. This was our third consecutive quarter of record copper production as QB ramped up to design throughput rates by the end of the year. Our adjusted EBITDA increased by 160% to $835 million compared to the same period last year. We reduced our debt by a further $275 million and returned $549 million in cash to shareholders through share buybacks and our base quarterly dividend. We continue to advance our near-term copper growth projects towards potential sanction decisions this year. Turning now to an update on safety and sustainability on slide six. We remain committed to ensuring the health and safety of our people, operating responsibly, and building strong relationships with communities. As I mentioned earlier, we maintained a low high potential incident frequency of 0.12 across the operations that we control in 2024. With our continued focus on sustainability, we released our 2024 climate change and nature report in December. This combines the recommendations of the TCFD and the TNFD to deliver an integrated report covering our progress on climate and the nature-related aspects of our business. We will provide an update on all our sustainability performance in our 2024 sustainability report, which we expect to release in March. We continue to receive recognition for our sustainability leadership. Most recently, Media Corp named Teck Resources Limited as one of Canada's top 100 employers for the eighth consecutive year. Forbes also named us one of the world's top companies for women for 2024. Turning to our progress at QB on slide seven. In Q4, QB delivered the strongest quarter so far, with mill throughput rates increasing quarter over quarter and achieving design throughput rates. This is a plant with a robust design, and it continues to operate well. Recoveries improved to approximately 85% in the quarter and averaged 87% in November and December. As a result of our successful improvement work on the grinding and flotation circuits in early Q4, the grade was in line with the mine plan. The improvement in our mining drivers led to copper production at QB increasing quarter over quarter to 60.7 thousand tons from 52.5 thousand tons in Q3. We also achieved record daily production throughout the quarter. For the full year, QB copper production was within our revised guidance at 208,000 tons. Looking forward to 2025, we're well-positioned for further growth in copper production at lower net cash unit costs at QB, setting us up for improved margins. Our 2025 guidance range of 230 to 270 thousand tons at QB represents a significant increase from 2024. This guidance reflects an extended 18-day shutdown in January to conduct maintenance and reliability work and complete additional tailings lifts as part of the operational ramp-up. We expect to continue to have regular quarterly maintenance shutdowns per our operating plans. In 2025, we expect to see an overall increase in average grade to 0.6% in line with the mine plan as we process more transition ores, which is lower-grade material, particularly in the first quarter of the year. Grades are expected to increase into the second half of the year. Our focus is on achieving steady-state operational performance with consistent online time and design recovery rates of 86% to 92%, depending on ore feed material. We expect a significant reduction in QB's net cash unit cost in 2025 to $1.80 to $2.15 US dollars per pound, from $2.72 US dollars per pound in 2024. This reduction is primarily driven by a combination of higher copper production, cost discipline, and increased molybdenum byproduct credits as the QB molybdenum plant continues to ramp up. Overall, we are pleased with the performance of QB, and we expect to see the operation generate significant cash flows in 2025. Looking at our copper segment in 2025 on slide eight, we expect significant growth in our copper production with improving margins this year. Our copper production is expected to continue to grow to 490 to 565 thousand tons from 446 thousand tons in 2024 due to the ongoing QB ramp-up and improved grades at HBC. We also expect a significant reduction in our copper net cash unit cost in 2025 to $1.65 to $1.95 US dollars per pound, from $2.20 US dollars per pound in 2024. We already saw an increase in our copper EBITDA margin in 2024 and expect this to continue to improve to 53% in 2025 based on consensus estimates. Slide nine outlines our well-funded value-accretive near-term copper projects, including the MyLife Extension at Highland Valley in British Columbia and our low capital intensity greenfield projects at Zafranal in Peru and San Nicolas in Mexico. These are attractive projects that are simpler in scope and complexity than our QB2 project, with significantly lower capital intensities. We continue our work to define the most capital-efficient and value-accretive path for the expansion of QB, both through the optimization of the mill and low capital debottlenecking opportunities, which could increase throughput by 15% to 25%. Through the execution of these projects, we have a clear path to increase our annual copper production to approximately 800,000 tons per annum before the end of the decade. I'll now hand the call over to Crystal to provide further details on our fourth-quarter and full-year results. Crystal Prystai: Thanks, Jonathan. Good morning, everyone. I will start with our financial performance in Q4 and for the full year on slide eleven. Our adjusted EBITDA more than doubled in 2024 to $2.9 billion and increased by 160% to $835 million in the fourth quarter. We had strong cash flow generation of $1.3 billion in the quarter, benefiting from the working capital release at Red Dog and QB. Over the full year, we reduced our corporate costs by 21% or $88 million compared with 2023. This reflects our strong cost focus and structural cost reductions that we implemented across our business following the sale of the steelmaking coal business. We expect to reduce our corporate costs further in 2025, as reflected in our annual guidance. We returned a total of $1.8 billion in cash to shareholders in 2024, including $549 million in the fourth quarter. We also reduced our debt by $2.5 billion in 2024, including $275 million in the fourth quarter, with the scheduled semiannual repayment on the QB project finance facility and other debt reductions. The chart on slide twelve summarizes the key drivers of our financial performance in the fourth quarter as compared to the same period last year. As a result of the completion of the sale, the steelmaking coal business last July, our results are presented as discontinued operations for all periods reported in our Q4 financial statements and MD&A. Our adjusted EBITDA increased by 160% in the fourth quarter, driven by strong base metals prices and higher copper and zinc sales volumes, reflecting the ramp-up of QB and strong sales from Red Dog. Copper and zinc sales volumes each increased by 24% from Q4 of 2023. Our strong adjusted EBITDA also reflects improved zinc unit costs driven by our rigorous approach to cost discipline, as well as lower smelter processing charges and higher sales volumes. Now looking at each of our reporting segments in greater detail and starting with copper on slide thirteen. In the fourth quarter, gross profit before depreciation and amortization from our copper segment more than doubled to $732 million compared to the same period in 2023. The increase was primarily due to strong sales volumes and copper prices. QB ramp-up continued to support growth in copper, and we had our third consecutive record quarter of copper production in Q4. This was partially offset by lower production at Antamina due to a decline in grades from the same quarter last year, as expected in our mine plan. While Highland Valley's production was lower than the same quarter in 2023, it improved quarter over quarter as expected due to increased mining in the higher-grade Loranex pit and improved haul truck performance. Production at Carmen de Andacollo increased due to higher grades, recoveries, and mill throughput, reflecting our efforts to improve water availability in the quarter. Our net cash unit cost increased as QB continued to ramp up. In Q4 of 2023, most of the costs associated with QB continued to be capitalized as ramp-up costs. Excluding QB, our total net cash unit cost improved by 33 cents a pound US, compared to Q4 2023 as a result of higher copper production and substantially higher molybdenum production from both Antamina and Highland Valley. Finally, we were pleased to ratify new three-year collective agreements with two of the three unions at QB, representing 78% of the labor force, and for all unionized labor at Antamina. Looking forward, in the first quarter of this year, we expect QB's production to reflect the extended 18-day shutdown in January, as well as processing lower-grade material in the quarter, as Jonathan outlined earlier. Now moving to a forward look at 2025 and our copper segment on slide fourteen. Our copper production is expected to continue to grow to 490 to 565 thousand tons from 446 thousand tons in 2024. This increase is primarily due to the ramp-up of QB, as well as a significant increase in production from Highland Valley. Highland Valley's copper production is expected to increase as we continue to mine more ore from the Lornex pit, which is both higher grade and softer, leading to increased throughput. These factors combined should more than offset lower recovery rates expected from the Lornex ore. We also expect production at Carmen de Andacollo to increase, reflecting improved water availability through the year. We expect a significant reduction in our copper net cash unit cost in 2025, to $1.65 to $1.95 US dollars per pound from $2.20 US dollars per pound in 2024. This reduction reflects an increase in copper and molybdenum production, as well as continued cost discipline across our operations. We expect our molybdenum production to increase to 5.1 to 7.4 thousand tons from 3.3 thousand tons last year. This is based on the continued ramp-up of the molybdenum plant at QB and increased molybdenum production at Highland Valley as we mine in the Lornex pit. Turning now to our Zinc segment on slide fifteen. Our gross profit before depreciation and amortization from our zinc segment more than doubled from the same quarter last year to $320 million. This was driven by higher zinc prices, as well as strong Red Dog sales volumes due to the timing of sales, lower treatment charges, and higher byproduct revenues. This was partially offset by higher Nana royalty expense as a result of Red Dog's strong profitability. As expected in our mine plan and our annual guidance, Red Dog's zinc production declined in Q4 due to cost improvements significantly from Q4 2023, reflecting lower smelter processing charges, the effect of higher sales, and an increase in silver byproduct credits. At Trail operations, our refined zinc production was impacted by the localized fire in the electrolytic plant in September 2024, as previously disclosed. The repair of one of the four sections of the electrolytic plant continues to progress and is scheduled to be completed by the end of the first quarter of the year. Finally, as we progress the work required to extend the life of Red Dog, we successfully obtained a permit for the construction of an all-season exploration access road, which will enable us to progress the next phase of exploration and resource assessment. Looking forward to Q1, we expect zinc concentrate sales from Red Dog of 75 to 90 thousand tons, reflecting the normal seasonality of sales. Turning to the 2025 outlook for our zinc segment on slide sixteen. Our guidance for zinc in concentrate production is 525 to 575 thousand tons, a decrease from 616 thousand tons produced in 2024. Our Red Dog production will decline as the mine life advances. At Antamina, zinc production is expected to increase as we mine a higher proportion of copper-zinc ore relative to copper-only ore in 2025. We are focused on maximizing profitability and cash generation from Trail operations. In light of the current tightness of the zinc concentrate market, we expect to operate Trail at lower production rates in 2025, with guidance for refining production of 190 to 230 thousand tons compared with 256 thousand tons in 2024. Trail remains a strategically important asset, providing critical and strategic minerals, such as germanium and indium, as well as its valuable integration with Red Dog. Our net cash unit cost for the zinc segment in 2025 is expected to be between US 45 cents and 55 cents per pound, compared with US 39 cents per pound in 2024. The expected increase is due to lower zinc production and higher labor and consumable costs, partly offset by lower zinc treatment charges, higher byproduct credits, and a continued focus on cost discipline across our operations. Turning now to slide seventeen. We remain committed to our capital allocation framework, which balances investment in value-accretive growth with returns to shareholders while maintaining a strong balance sheet through the cycle. Our capital allocation framework commits us to return between 30% and 100% of available cash flows to our shareholders. In 2024, we deployed the proceeds received from the sale of the steelmaking coal business across the pillars of our capital allocation framework, balancing returns to shareholders with debt reductions and earmarking cash for our near-term value-accretive growth projects. Looking at our balance sheet now on slide eighteen. We currently have one of the strongest balance sheets in the sector, and we continue to maintain investment-grade credit ratings. In 2024, our cash balance increased significantly as a result of the proceeds received from the sale of the steelmaking coal business. This also resulted in higher finance income as we earned interest on the higher cash balance. With the proceeds, we reduced our debt by $2.5 billion Canadian. We currently have liquidity of $11.3 billion, including $7.1 billion in cash. We were in a net cash position of $2.1 billion as of December 31. Our remaining outstanding term notes of US $1 million are long-dated. We will continue to deleverage as we make semiannual repayments on the QB project finance facility through 2031. Our industry-leading balance sheet is a competitive advantage for Teck Resources Limited, providing us with resilience to navigate current market conditions and allowing us to execute on our copper growth strategy while returning cash to shareholders, ensuring we create value for our shareholders. Turning to slide nineteen and our track record of returning cash to shareholders. We continue to balance our investment growth with returns to shareholders, and in 2024, we returned $1.8 billion to shareholders through share buybacks and dividends. This builds on our strong history of cash returns to shareholders, which total approximately $5.1 billion since 2020. We retain our annual base dividend of 50 cents per share, and in each of the past two years, we have paid a supplemental dividend of 50 cents per share, bringing total dividends to $1 per share in 2023 and 2024. We continue to be in the market daily, actively buying back our shares with $3.25 billion in share buybacks authorized last year. As of yesterday, we had executed $1.45 billion of the $3.25 billion authorization under our normal course issuer bid, representing approximately 22.7 million class B shares. This leaves approximately $1.8 billion of our authorized share buyback remaining to further improve our per-share value. With the strong cash flow generation potential of our business, we could see further cash returns to shareholders in line with our capital allocation framework. We remain committed to returning between 30% and 100% of future available cash flows to our shareholders. Turning to our capital expenditure guidance for 2025 on slide twenty. We are focused on investing in our value-accretive near-term copper growth projects as we progress towards potential sanction decisions in 2025. Our guidance for 2025 sustaining capital and capitalized stripping remains within our expected range of $1 to $1.1 billion Canadian. Sustaining capital will remain relatively flat between $750 and $845 million, from $836 million in 2024. Capitalized stripping is expected to decline to between $260 to $300 million from $373 million in 2024, as we have largely completed the required waste stripping in the Lornex pit at Highland Valley. Our growth capital is expected to be between $875 and $980 million, or around US $625 to $700 million in 2025. This growth capital is for multiple projects across our portfolio, with our focus on advancing our value-accretive near-term copper projects to potential sanction decisions in 2025. On an attributable basis, we anticipate pre-sanction copper growth capital of approximately US $430 to $485 million in 2025. This includes approximately $100 to $110 million US for the mine life extension at Highland Valley, and US $220 to $240 million for Zafranal. Both projects are currently focused on advancing detailed engineering, design, and project execution planning, which are critical steps in meeting our investment requirements for potential project sanctioning. Zafranal already has its main permit, and we are therefore proceeding with advancement in 2025 to enable construction to start when the project is sanctioned. We also expect to spend US $25 to $30 million to progress QB debottlenecking this year. The remaining copper growth capital expenditures are focused on advancing studies for our pipeline of medium to long-term projects, including Galore Creek, Shaft Creek, Erange, and Nueva Union. These investments ensure that we are well-positioned to advance these growth projects efficiently while remaining disciplined with our capital allocation. With that, I'll turn it back to Jonathan. Jonathan Price: Thanks, Crystal. So as we look forward, I want to take a moment to acknowledge the economic and political backdrop in which we are operating on slide twenty-two. Globally, we are witnessing a period of significant economic uncertainty and change that will alter trade flows and potentially impact global supply chains and market dynamics. In this context, the outlook for our commodities remains robust, driven by the underlying demand factors of economic growth and urbanization, electrification to ensure energy security, and growth in the digital economy. These secular tailwinds underpin significant demand for both copper and zinc, and when coupled with supply-side constraints, underline the strength in our strategy as a pure-play base metals company with a deep pipeline of copper growth opportunities. Turning to slide twenty-three, we are closely monitoring the potential impact of tariffs and other restrictions between the US and Canada, which is a fluid and rapidly evolving situation. Teck Resources Limited has a resilient business driven by the diversification of our product and operations, coupled with an agile and sophisticated commercial strategy and a very strong balance sheet. To put the potential tariffs into context, any imposed tariffs by the US are not expected to have a material impact on our business. Our copper and zinc concentrate sales would not be impacted as we primarily sell to Asia and Europe and not into the US. Trail's refined zinc, lead, and specialty metals such as germanium, indium, and sulfur products are sold into the US. But in the event that tariffs are imposed, we expect trade flows to adjust. While Teck Resources Limited produces a large proportion of the China supply for this diverse group of metals, they comprise less than 15% of our revenues. We actively monitor and respond to the situation and potential impacts. We have a strong commercial strategy and logistics that allow us to quickly pivot and respond to changing market conditions. We are closely watching the situation and engaging with our customers, and we remain resilient in the current environment. So to conclude on slide twenty-four, our focus at Teck Resources Limited is to create value for our shareholders. Our priorities are focused on doing just that in 2025 and beyond. We've entered the year with QB operating at design throughput capacity rates, and our primary focus is to complete the QB ramp-up to steady-state. We will continue to drive operational excellence across our portfolio of high-quality copper and zinc operations and projects with a strong focus on cost discipline. This will ensure that we not only increase our copper production but also increase our margins. Importantly, we remain committed to returning cash to our shareholders through the execution of our authorized share buyback program and annual base dividend. We are progressing our near-term copper projects towards possible sanction decisions in 2025, positioning us for our next phase of copper growth. I feel confident that we have the resilience to navigate uncertainty and create value through our strong financial position and agile commercial strategy. Overall, I'm very excited about the opportunities ahead of us to continue to drive value creation. Thank you. With that, operator, please open the line for questions. Operator: Certainly. We ask that you limit yourself to one question and one follow-up. If you're using a speakerphone, please ensure you lift your handset before pressing any keys. If you wish to withdraw your question, press star then two. The first question is from Orest Wowkodaw with Scotiabank. Please go ahead. Orest Wowkodaw: Hi. Good morning. I'm wondering if we can get a bit more color on the QB2 ramp. Obviously, really strong performance in November, December. January was impacted by the extended 18-day shutdown. What's the performance been like since it restarted? And do you think QB2 is on track to reach that sort of steady-state full nameplate by midyear? I'm wondering if anything's come out of the shutdown that may perhaps either advance that or delay that. Jonathan Price: Hi, Orest. Thank you very much for that question. Look, overall, I would say the ramp-up is progressing well and it continues to be in line with what we would call normal course or benchmark ramp-up timetables. We have planned quarterly shutdowns that are embedded in our operating plans, and we've communicated that previously. As you highlighted, we did have an extended shutdown for 18 days in January to conduct maintenance reliability work and to complete some tailings lift as part of the operational ramp-up. That 18-day shutdown is fully reflected in the guidance range of 230 to 270 thousand tons for 2025. Post that shutdown, the plant and the operation more generally have been running very much in line with our underlying operational plans. So we do have good confidence in achieving the guidance range that we've set out. As you've seen, we've mentioned a few things, for example, having lower grades towards the start of the year and higher grades towards the back end of the year, and processing some more transition ores at the front end of the year, which can lead to lower recoveries. But all of that is fully accounted for in the guidance range that we put forward, and we're very pleased with the way that the plant and the operation as a whole is operating today. Orest Wowkodaw: Thanks. And just as a follow-up, what is the planned cadence for future maintenance shutdowns at QB2 for the rest of the year? Like, is it sort of like a week, a quarter now starting in Q2, or just what's the plan? Jonathan Price: Yeah. Look, that's a reasonable assumption. Overall, the offline time for the plant is expected to be around 92%. That does imply a shutdown of around seven days in every quarter. As we did last year, we've typically been having those shutdowns in the first month of each quarter, and going forward in 2025, we expect to maintain a similar cadence. Orest Wowkodaw: Okay. So no longer shutdowns currently planned beyond what we saw in January. Jonathan Price: That's correct. Orest Wowkodaw: Okay. Thank you very much. Jonathan Price: Thanks, Orest. The next question is from Carlos De Alba with Morgan Stanley. Please go ahead. Carlos De Alba: Yeah. Thank you. Good morning, everyone. The balance sheet is undeniably strong. How should we reconcile, Jonathan, your capital allocation framework with the fact that under our estimates and consensus outside estimates, you're going to generate anywhere between $1 billion to $2 billion Canadian or more per year in the coming years of free cash flow? How do we reconcile this strong balance sheet, your capital allocation framework, returning money to shareholders, and a potential M&A where Teck Resources Limited goes and buys smaller projects or smaller companies, even though it does have a very robust pipeline of projects? Or maybe we just see more outsized returns to shareholders as you have done in the last few years. This is a key question that we are discussing with investors, and clearly, as you know, the potential for M&A and I'll say, risk in a way is something that we would like to see how you, from your perspective and the board's perspective, are looking at this. Jonathan Price: Yeah, Carlos, thanks very much for that question. It was a fairly broad one. Look, the capital allocation approach that we take here in the business is very much focused on value creation for our shareholders. We do have a very strong balance sheet, as Crystal outlined. We reduced debt quite significantly last year, and we are currently running a net cash position on that balance sheet. Also, we do still have a very significant outstanding authorization of share buybacks that we will continue to execute through the course of this year. That's in the range of $1.8 billion of cash still to be deployed through the buyback of our shares. As Crystal mentioned, we're in the market executing on that every day in addition to the base dividend that we have and that we've maintained through this year. We've always said that if we continue to generate cash in excess of the needs of the business, that will make its way through the capital allocation framework. Under that framework, we do have the potential to return a further 30% or 100% of cash that's in excess of our needs. As you know, we also have a stable of projects in the portfolio. When we went through the use of proceeds from the sale of EBR last year, one of the things we said we would do is reserve some cash for the development of what we consider to be low capital-intensive and high-returning projects that we have in the portfolio. One of those being the Highland Valley copper mine life extension and the greenfield being the San Nicolas project in Mexico. We continue to focus on organic growth in the business because we see that as being the most value-accretive path for our shareholders. We are, of course, very aware of the M&A activity in the sector that is spoken about. From Teck Resources Limited's perspective, our focus remains on creating as much value as we can for our shareholders. We believe that the projects we have in the portfolio are a great way to achieve that. So it's a good position to be in. It gives us resilience, it gives us options, but we will maintain our focus on creating value for shareholders and executing on the plans that I think we've clearly set out. Carlos De Alba: Great. Thank you. And just a very short follow-up. Is Zafranal now arguably the greenfield project that is up next? Jonathan Price: So we are quite advanced on Zafranal, as you know, in terms of having the environmental permit associated with that. As you see from our disclosures around our copper growth spend this year, we are increasing the spend there, reflective of a project that is close to a sanction decision. We continue to work very hard on San Nicolas as well. We see that as a very attractive option. Ultimately, the economics of those projects, the progress of the other permits that are required to actually take a project through into execution, and the completion of the right level of engineering work that needs to be done prior to sanction will determine which of those projects is up for sanction first. I think you can see from our disclosures that Zafranal today is in a very strong position. Carlos De Alba: Thank you, Jonathan. Jonathan Price: Thanks, Carlos. The next question is from Liam Fitzpatrick with Deutsche Bank. Please go ahead. Liam Fitzpatrick: Hi, Jonathan. Two questions from me on QB. The first one is on the topic of a potential tie-up, some sort of JV with Collahuasi. We've seen an interesting deal announced today by Anglo and Codelco, and it would seem that from a value unlock perspective, this is a fairly obvious area for Teck Resources Limited and the other companies involved. Can you give any color on where the discussions are and other reasons why this isn't being looked at or pursued more aggressively? And my second question is on QB costs. Just looking at the absolute costs in Q4, they did go up quite significantly. Is there anything in there that you can talk to that should unwind? Because looking at it, it seems that there's a lot of cost that has to come out through 2025 for you to hit the unit cost guidance. Thank you. Jonathan Price: Liam, yeah, thank you for those questions. I'll, in a moment, hand the second question over to Crystal. But just starting with your question on QB, Collahuasi, and as we've discussed before, we do recognize the potential value of some form of tie-up between those two operations, and it's something that we've done a good deal of work on to understand the various ways in which that value could be unlocked. As we've also consistently said, our number one focus remains on optimizing value for Teck Resources Limited shareholders, and we look at all the decisions we made through that lens. Right now, our focus remains on the ramp-up of QB to full production and steady state. As we've spoken about previously, the optimization and debottlenecking of that plant will be some of the most capital-efficient unlocks of tons that we have anywhere in the portfolio. So that remains a key focus for us. We have, as you would expect, had a level of engagement around the opportunities with Collahuasi with the partners on the other side, but as you'd appreciate, those discussions are confidential in nature, and, of course, we can't say anything more about those at this point in time. Other than to reaffirm that we recognize the value potential there, and we will always act in the best interest of Teck Resources Limited shareholders in terms of how we maximize value from the portfolio that we have. With that, I'll hand over to Crystal on the cost question. Crystal Prystai: Hi, Liam. Thanks for your question. I think you've drawn out the key point just in the context of, as we look forward, expecting significant reductions in QB costs as we move to more stabilized production levels through 2025 and we complete the demobilization of contractors that supported the ramp-up through 2024. In the fourth quarter, of course, we saw an increase in volume that does drive a modest increase in operating costs as we have higher electricity and supplies. When you balance that over higher production, that should normalize. There were also some one-time costs that we incurred in the fourth quarter. We mentioned the settlement of two of three of our labor contracts, which were, of course, a good outcome. Those lead to bonuses paid to those unions as we resolved those contracts. We do continue to expect a decline in our unit cost for QB and for the copper business as we move into 2025 and we see an uptick in our production levels, as well as in the molybdenum credits we expect in 2025. Liam Fitzpatrick: Okay. Thank you, both. Jonathan Price: Thanks, Liam. The next question is from Craig Hutchinson with TD Securities. Please go ahead. Craig Hutchinson: Hi. Good morning, guys. Just a question on the Highland Valley life extension. There's a note in your MD&A just saying that there's been a challenge by one indigenous government organization that's delayed the approval process of the EA. Does that have to be resolved before the EA can be issued, or can you get the EA and then resolve these issues after the fact? And I guess just maybe as a follow-up, do you have an anticipated timeline for solving it or getting any additional impact benefit agreements with those that don't have them already? Jonathan Price: Yeah. Great. Thank you for that question. It's a good one, and as you can imagine, it's a file we're working very hard on at the moment. We are in the final phases of the EA process for the mine life extension. The dispute process that we referenced is a formal established part of that environmental assessment process, which is designed to resolve issues. As noted, we have secured agreements with other indigenous government organizations that are involved in the approval process for the Highland Valley mine life extension, and we got those coming through in December and January. We do continue to engage with SSN, who are the party that has disputed the approval of this project. We have a very long track record of working successfully with indigenous nations and sharing the benefits of the operation and future growth with those nations, and we do remain confident in our ability to move forward successfully. We also have a good track record of permitting here specifically in British Columbia. It's worth noting that the province of British Columbia recently announced that they would be working to fast-track permitting on this project. So we do have a lot of support with respect to this, and we remain confident in getting this done and getting the approvals we need. It's a project that we believe has compelling returns, and we do expect to be in a position to sanction it this year. Craig Hutchinson: Okay. Great. And maybe just a follow-up question. You guys mentioned you got the permit for the road exploration of Red Dog. The step-up in growth capital this year versus last, does that include spending on the road this year, or is that a separate line item? Jonathan Price: Yes. It does include that, Craig. You're exactly right. Craig Hutchinson: Okay. Great. Thanks. Jonathan Price: Okay. The next question is from Lawson Winder with Bank of America Securities. Please go ahead. Lawson Winder: Thank you, operator. Good morning, Jonathan and Crystal. Thanks for the update. I wanted to ask about capital allocation and zinc. So just pointing to zinc showing some signs of life in 2024 and Teck Resources Limited having a range of projects in zinc. Also noting that to maintain the current zinc business, it will require significant investment. When you think about allocating capital to various projects, are the zinc and copper segments separate buckets, or could there be a situation where zinc price points to higher IRRs and as a result, you deemphasize copper growth? Jonathan Price: Look, I think we look at capital allocation holistically across the entire organization. We're not contemplating that separately for copper and zinc. Everything has to compete for the capital we have and compete on the range of metrics that we've spoken about before, particularly returns on growth. Look, I think we see the fundamentals for zinc to be attractive. There is strong demand for zinc, and perhaps the demand growth outlook is not as compelling as it is for copper, but we've seen a dearth of new supply in zinc for many, many years. No major zinc projects coming through. At Red Dog, of course, we have a world-class tier-one operation, and while that comes to the end of current life around 2031, we have a couple of very high-quality ore bodies nearby, and that is where the spending is being directed today to understand the potential future of Red Dog and the potential for a significant life extension there. Based on those fundamentals, based on the quality of the project we have at Red Dog, we continue to see that as a core part of the portfolio. Of course, in addition to Red Dog, we do get zinc concentrate from Antamina. In the future, in the event we sanction San Nicolas, that will be a further source of zinc concentrate for us. So we hold a strong position in that market right now. Provided the fundamentals remain intact, we would continue to want to maintain a strong position in that market into the future. Lawson Winder: Okay. Thanks, Jonathan. And then just looking at another asset that has a significant zinc component, your Mexican asset, has the political situation in Mexico evolved any more favorably at this point? And what are you thinking in terms of actually making a decision to invest capital into San Nicolas? Thank you. Jonathan Price: Yeah. So we remain highly interested in the San Nicolas project. It's a relatively small, simple flow sheet. It will have a low capital intensity. It's very high grade, which means it will deliver strong margins through its life. We're closely monitoring the mining environment in Mexico. We met with President Sheinbaum and talked to her about San Nicolas and about mining more generally. While at the present time, it doesn't appear to be a priority for this legislation on mining, given it has its hands full with its neighbor to the north, we do see longer-term a focus there on foreign direct investment, a focus on building critical minerals supply chain and capability. I would say the signals we get from the administration are encouraging, particularly given the commodities that San Nicolas will be producing and particularly given the track record of being responsible in our approach to developing and operating mines that both ourselves and Agnico Eagle bring to the table. We don't see any negative immediate impacts in relation to San Nicolas, so we continue to do our study work. But it would be fair to say, of course, that we won't make a sanction decision and we won't commit significant dollars to further investments on the ground in Mexico until such time as we have certainty of permitting and the support of the government, but we remain optimistic. Lawson Winder: Fantastic. Thanks, Jonathan. Jonathan Price: Thank you, Lawson. The next question is from Myles Allsop with UBS. Please go ahead. Myles Allsop: Hi, Jonathan. Maybe just on QB. Could you remind us how much you're capitalizing at the moment? Is it just interest, or is it into other costs as well? And when will you stop capitalizing those? And then maybe second on Trail, it should be free cash flow negative last year. It's likely to be more cash flow negative this year. What does it take to decide to close Trail? I know you said it's strategically important, but it's burning cash. How long do you maintain that view of strategic importance? Jonathan Price: I'll come back to your second question on Trail in a moment. Over to Crystal for the first question on QB cost. Crystal Prystai: Yeah. Thank you. Maybe just a bit of clarification there. When I mentioned that we were capitalizing ramp-up costs associated with QB, that was in Q4 of 2023. Through 2024, we have not been capitalizing interest on the project. Of course, construction was complete in the first quarter with the port and molybdenum plant in the second quarter. So no longer capitalizing interest, depreciating the assets there, and we haven't been capitalizing ramp-up costs in 2024. The only capitalization you're seeing at QB is in relation to sustaining capital costs and, to a very minor extent, capitalized stripping. Jonathan Price: Thanks, Crystal. Moving on to Trail, Myles, a couple of comments there. We've been very focused on profitability and cash generation at Trail, and we've made a number of changes to support that. We've implemented cost reductions at the site in relation to maintenance and non-routine work. We've reduced headcount at the site, and with new leadership there, worked on a whole series of cost reduction opportunities across the operation. We have reduced our refined zinc production this year in the context of the TC environment. That again will directly improve Trail's profitability and cash generation. The Kivset plant that we did a significant amount of maintenance on is now operating very well. Our production of lead, in particular, is very strong. We do also have the option at Trail to sell excess power to generate cash flows as needed. We've taken a very commercial focus on the way that we're operating Trail right now. I'm very pleased with the early results that we are seeing there, and I think Trail is doing the things it needs to do to continue to earn its place in the portfolio from a profitability and cash flow generation perspective. The other comments I would make on Trail are that it really is, particularly in the current context, quite a strategic asset. It's key to our portfolio, particularly that integration with the Red Dog mine. It gives us optimal market access for the Red Dog concentrate. Importantly, though, it produces a number of metals that have become quite strategic and important in the current context of the relationship between Canada and the US. We estimate that Trail would be the fourth largest producer of germanium in the world and the only primary producer of germanium in North America. This is at a time when China has cut off or restricted supplies of germanium into the US, and it's a critical component for defense spending, for example, and goes directly to that national security agenda. So foundationally, it's absolutely critical that we achieve profitability and cash flow generation from Trail, and I'm confident that we're on the right path there. Secondly, there's a compelling strategic overlay with Trail being part of an integrated flow sheet we have with Red Dog. Myles Allsop: How much revenue do you get from germanium and the smaller metals? Is that becoming a meaningful stream that will surprise the upside given what's happening? Jonathan Price: Yeah. So it's relatively small in terms of the direct revenue and cash flow profitability impact of the business. It has, I think, a lot of ancillary strategic benefits from a relationship perspective in a period of time where trade relations are strained. That flows all the way back upstream to the output for the Red Dog mine, which of course is in the US in Alaska. As we look forward to the future expansions of Red Dog, the proportion of specialty metals in that concentrate will actually increase. So we think it's interesting for a number of reasons, but again, just on Trail, the core focus there is on profitability and cash generation. We're in good shape there with a number of the changes that have recently been made and the new operating strategy that the team has put in place for 2025. Myles Allsop: Right. Thank you. Jonathan Price: Thanks, Myles. The next question is from Bill Peterson with JPMorgan. Please go ahead. Bill Peterson: Yeah. Hi. Good morning. Thanks for taking the questions. Maybe on the growth projects, you spoke to the EA assessment of Highland Valley and a little bit on Mexico. But when we think about higher level, I guess at this stage for 2025, can you go through each project in terms of what's in your control versus local authorities? What should we be looking out for next steps? And I guess on Zafranal in particular, you discussed the potential sanction decision. What are the key requirements you're looking for? Whether it be market-related or expectations on cost or IRRs you're looking forward to potentially sanction by year-end? Jonathan Price: Look. I mean, I think, as ever, the things that are in our control remain the studies and the completion of those studies. There remain the engineering work that we're undertaking and, of course, there remains the engagement with vendors and contractors that ultimately will support the project. As is the case with any project, to a certain extent, permitting is beyond our control, but, of course, it's something that we engage on very heavily, and it's something where we work very closely with the regulators in a collaborative fashion through that process. I think all of these projects will have to earn their place in the portfolio and earn their place in terms of capital allocation. Of course, we have a view that that is the case, which is why we are pursuing them as near-term priorities, and the economics that we see associated with these projects are compelling, offering a combination of strong IRRs, strong cash flow generation, strong EBITDA contribution to the group, and a meaningful contribution to our product base. So all of those things must be true ultimately for a project to be sanctioned and for the risks to be appropriately managed. So we're comfortable with the portfolio that we have. HBC being a brownfield mine life extension here in BC, and then two greenfield projects with Zafranal in Peru being one that Teck Resources Limited will construct and operate, and then San Nicolas in Mexico under that 50/50 joint venture with Agnico Eagle, which will be constructed and ultimately operated by the joint venture company. So we're very happy with the shape of that portfolio. We'll continue to progress these projects to sanction decisions, and as I said, provided the financial metrics are there, we expect to sanction them and see them in their place in our portfolio going forward. Bill Peterson: Yeah. Thanks for that. And then I wanted to ask about cost maybe in a slightly different way than the prior question. First, you talked about the union. Two out of three being negotiated, one more to go. I guess, how should we think about a run rate impact to the model and cost? And then I guess tying it one step further on the cost trajectory for QB2. As we think about the exit rate, cost per pound given the expected output increases throughout the year. Crystal Prystai: Yeah. I mean, I think in the context of sort of run rate cost, of course, Emma and the team can take you through more of the details. But I think in terms of labor costs, you can continue to assume sort of lower single-digit inflation. I'll get Emma to follow up with you offline. In terms of sort of run rate, I think in the way that we've talked about production escalating as we go through the year to more stable run rates at QB, I think you can think about the cost in the same way as we've established our guidance with a lower end and a higher end, and we've continued to disclose that unit cost per QB to give you that indication. So I think I would see that as sort of a tale of two halves of the year similar to production. Bill Peterson: Thank you, Jonathan and Crystal. Jonathan Price: Thanks for those questions, Bill. That's all the time we have for questions today. I will now hand the call back over to Jonathan Price for closing remarks. Jonathan Price: Thank you, operator, and thanks again to everyone for joining us today. Before we sign off, I did want to note that it is Fraser Phillips' last quarterly conference call with Teck Resources Limited before his retirement. I'd like to sincerely thank Fraser for his many contributions to Teck Resources Limited over the past eight years and wish him and his wife Kimberly all the very best for their next chapter. Meanwhile, we look forward to seeing many of you in person at a major mining conference we are attending. If you have any further questions, please reach out to Emma Chapman and our IR team. Enjoy the rest of your day. Operator: This concludes today's conference call. You may disconnect your line. Thank you for participating and have a pleasant day.

Operator: Ladies and gentlemen, thank you for standing by. Welcome to Teck's Third Quarter 2024 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] This conference call is being recorded on Thursday, October 24, 2024. I would now like to turn the conference over to Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analysis. Please go ahead. Fraser Phillips: Thanks, Damien. Good morning, everyone, and thank you for joining us for Teck's third quarter 2024 conference call. Please note today's call contains forward-looking statements. Various risks and uncertainties may cause actual results to vary. Teck does not assume the obligation to update any forward-looking statements. Please refer to slide 2 for the assumptions underlying our forward-looking statements. In addition, we will reference various non-GAAP measures throughout this call. Explanations and reconciliations regarding these measures can be found in our MD&A and the latest press release on our website. Turning to the agenda on slide 3. Jonathan Price, our CEO, will begin today's call with an overview of our third quarter results. Crystal Prystai, our CFO, will follow with additional color on the quarter, and Jonathan will conclude today's start with closing remarks, followed by a Q&A session. With that, over to you, you, Jonathan. Jonathan Price: Thank you Fraser, and good morning, everyone. Starting on slide 5. Our shift to a pure play energy transition metals company was marked by the close of the sale our remaining interest in the steel leading car business on July 11th. And at that time, we received US$7.3 billion of cash and announced our planned use of proceeds, including the largest tax return to shareholders in the company's history. Through the remainder of the third quarter, we progress deployment to those proceeds as we returned $720 million to shareholders through dividends and share buybacks in the quarter and over $1.3 billion returns to shareholders year-to-date as of yesterday, reduced debt by US$1.5 billion, putting us in a net cash position of $1.8 billion as of September 30th, and retained funding for our value-accretive near-term project projects in preparation for our next phase of copper growth. We also achieved several operational highlights in the quarter. We continue to grow our copper production, and set another consecutive record quarter, copper production as QB continues to ramp up. And our operational focus resulted in higher zinc and concentrate production on Red Dog compared to the same period last year. We are now nearing the final stages of the QB ramp-up. We completed the QB2 project in the quarter and demobilize the construction workforce. Substantially, all our claims were closed out and accrued forward in our project capital guidance range of US$ 8.6 billion to US$8.8 billion. At the same time, we continue to progress our well-funded capital-efficient copper growth portfolio, moving on near-term projects towards potential sanction in 2025. Overall, we made significant progress in the delivery of our value-driven strategy. On to slide 6, we continue our focus on safety, health and sustainability leadership. We are deeply sad by an employee fatality at Antamina during container assembly in the warehouse area on July 24th. In response, the joint venture management team at Antamina, supported by the joint venture partners, including Teck, conducted a thorough investigation to identify recauses and implement any required actions and to share learnings across the industry to help prevent future incidents. Over the third quarter, our high potential incident frequency rate remained low at 0.10, which is a 33% reduction from the same period last year. We continue to progress the rollout with mental health first aid training for frontline leaders across our operations towards our targets of 50% completion by year-end and full completion by the end of next year. And earlier this month, we were recognized on the Forbes list of the world's best employers 2024. Meaningful as it's an employee-driven ranking of multinational companies and institutions from over 50 countries worldwide. Turning now to an update on the ramp-up of QB operations on Slide 7. Copper production at QB improved quarter-over-quarter to 52.5000 tonnes from 51.3,000 tonnes in Q2. However, production was impacted by lower grade ore mines as expected following the geotechnical issues that restricted our access to high-grade material. This degree has been consistent with prior quarters at 0.58% and based on the throughput and recovery that we achieved, our production would have been 56,000 tonnes. The localized geotechnical issue that we had identified and disclosed last quarter, there's now been a result with controls in place and we're continuing to advance the mine plan. We expect higher grades in the fourth quarter and going forward, normal growth variability is expected within any different period. Mill throughput rates increased quarter-over-quarter, confirming the robustness of our plant design. As you can see in the chart on the left, throughput has been ramping up steady quarter-over-quarter towards nameplate capacity and is currently near design throughput rents. We expect to achieve design throughput rates by the end of this year. We've also seen evidence of our ability to operate above design throughput rates. We're working hard on mill optimization to push performance part nameplate and on our plans for debottlenecking. Recoveries also continue to improve, as shown in the chart on the right, with an increase quarter-over-quarter and increasing stability. However, our monthly copper production did decline marginally in September, primarily the result of additional planned and unplanned maintenance. We've proactively taken downtime and readiness for planned test work on the grinding and flotation circuits to ensure improved continuity during the test period. The test was successful, and we've seen improved grind size coupled with selective reagents that enhance processing of ore in the transition zone between the supergene and hypergene mineralization, which has higher clay content. As a result, we expect improved recovery going forward. We also have unplanned downtime on the thickness and pervasive failure of the mill feed conveyor, reducing our tonnes milled. Our focus remains on improving recovery and increasing online time. We expect to see progress following the completion of the test work along with minor equipment modifications to improve reliability, scheduled for the first half of 2025. This is expected to gradually improve molybdenum recovery, copper class stability and equipment reliability through the first half of 2025. Overall, as we close out the QB project and look towards completing the ramp-up of QB operations to design throughput rates, we expect to generate \significant cash flows in 2025 and beyond. We have updated certain guidance targets to 2024, which is summarized on Slide 8. You can see, we've improved our net cash unit cost guidance range by $0.10 per pound to $0.45 to $0.55 per pound, reflecting the results of strong operational performance, repo. Portion of this reduction was driven by improved operating costs, which allowed us to also improve our total cash unit costs to date by $0.05 per pound to $0.65 to $0.75 per pound. There is no change to rental [ph] production guidance. We've lowered our -- sorry, to refine the zinc guidance for trial operations to 240,000 to 250,000 tons due to a localized fire at one of the units in the electrolytic zinc plant in late September. We are looking at operating the other sections in a manner that would allow us to recover some of the production loss. However, this evaluation is still underway. In copper, our total production guidance range was lower and narrowed with the bottom end of the range reduced by 15,000 tons due to lower expected production from high end value. Our revised guidance is now 420,000 to 455,000 tons from 435,000 to 500,000 tons previously. Production guidance for Antamina, Carmen de Andacollo are both unchanged. QB reflecting a slower ramp-up this year, we have narrowed our QB production guidance to 200,000 to 210,000 tons for 2024 from 200,000 to 235,000 tons. Further, we've provided our 2025 production guidance range for QB to 240,000 to 280,000 tons from 290,000 to 310,000 tons, reflecting planned activities to improve copper recovery and equipment reliability scheduled to run through the first half of 2025. Full year production at Highland Valley is now expected to be between 97,000 to 105,000 tons from 112,000 to 125,000 tons due to the delay in accessing the higher-grade [indiscernible] pits in Q3. For Molybdenum, our production guidance is reduced to 3,000 to 4,000 tons from 4,300 to 5,500 tons, in line with the changes to our copper production guidance. We have reduced our QB molybdenum production guidance to 800 to 1,200 tons for 2024 and to 4,000 to 5,500 tons for 2025 from 1,800 to 2,400 tons and 5,000 to 6,400 tons, respectively. Despite the lower total moly production guidance, our total copper unit cost guidance is unchanged, demonstrating our focus on managing costs across our operations. Turning to Slide 9. As we continue to progress on near-term copper projects for potential sanctioning in 2025, all subject to permitting and other works. At QB, the ramp-up continues and we are progressing the work on defining near-term opportunities for optimization, debottlenecking of the existing at to achieve improved throughput and recovery. Highland Valley, our revised environmental assessment and permit a negation for the mine life extension was accepted in July, and we continue to regress through the permit process. We expect substantial completion of engineering and project execution planning in Q2 2025 and the project could be ready for a sanction decision at that time if permits are received. The joint venture of San Nicolas continues to permit application process, and it gave with garments and stakeholders is ongoing. Project sanction decision is anticipated to follow a completion of the feasibility study and receipt of necessary permits in the second half of 2025. Of course, we are closely monitoring the evolving political situation in Mexico. For [indiscernible] whilst we have received the main environmental permit required, we are being disciplined in advancing works and progressing detailed engineering. We see more clarity on construction and associated capital before we sanction the project. We continue with the construction permit application development through Q3 2025. The project could be ready for sanctioning in late 2025, following receipt of construction permits and completion of detailed engineering. We look forward to creating additional value for our shareholders through these low capital intensities, high-returning copper projects.\ I'll now hand over the call to Crystal to provide further details on our third quarter results. Crystal Prystai: Thanks, Jonathan. Good morning, everyone. Starting slide 11 with financial performance in the quarter of 2024. As Jonathan noted, we began to deploy the proceeds received from the sale of our remaining interest in steelmaking coal business, to shareholders through significant cost refers only reducing debt and strengthening our balance sheet. We returned a total of $720 million to shareholders in the quarter, including $322 million in dividends and $398 million share buyback. In total, we have returned over $1.3 billion to shareholders year-to-date as of yesterday, and we continue to execute our previously announced share buyback program of $3.25 billion. As a result of the of the completion sale of our remaining interest in the steelmaking coal business on July 1, CVR results have been presented as discontinued operations for all periods reported in our Q3 financial statements and MD&A. We have strong financial performance in the quarter with our adjusted EBITDA more than doubling and our adjusted EPS nearly quadrupled compared to the same period in the previous year, due to strong copper and zinc prices and increased sales volumes, reflecting the benefit of the ramp-up of QB operations. In Q3, we had higher finance expense and depreciation and amortization compared to the same period last year as most of the QB assets were considered available for use at the end of 2023 and depreciation starts in 2024, and we are no longer capitalizing interest on the QB2 project. Our third quarter financial results were also impacted by a non-cash after-tax impairment charge of $828 million on our trail operations. As required under IFRS, we regularly assess whether impairment indicators are present and impaired usage is required. The permanent Trail is a result of a challenging environment for treatment charges due to a global age of at concentrate continued operating losses, combined with the recent fire in the electrolytic zinc plant, which is expected to affect fourth quarter operations. Importantly, we remain committed to our Trail operations as a core part of our strategy of providing critical minerals, particularly given its strong integration with Red Dot. Trail remains an important asset in our portfolio, and we remain highly focused on improving its profitability and cash generation through a range of initiatives that are currently being deployed. Overall, excluding the impairment charge, we saw significant improvement in our financial performance in the third quarter compared with the same period last year. Slide 12 summarizes the key drivers of our financial performance in the third quarter. The increase in adjusted EBITDA in the quarter compared to the same period last year was primarily driven by strong copper zinc pricing as well as higher copper sales volumes. Operating costs increased due to the inclusion of TV operating costs this year. In Q3 last year, Q2 costs were generally included in capitalized ramp-up costs. We continue to focus on managing our controllable costs across our business. Now looking at each of our reporting segments in greater detail and starting with copper on Slide 13. Our gross profit before depreciation and amortization from our copper segment more in double compared to the same period last year to $604 million as we realize the benefit of QB ramp-up. The increase was driven by higher sales volumes, higher prices and an increase in byproduct credits and partially offset by the inclusion of QB operating costs this year. We had another consecutive record quarter of copper production with increased production across all of our operations. QB ramp-up continues to support increased quarterly copper production. Higher copper production at Antamina was driven by increased copper-only ore as expected in the mine plan as well as higher mill recoveries. Water availability at promise an oil improved, resulting in higher mill throughput and production. And while have production also increased, it was lower than expected due to delays in accessing the Lornex Pit, which has higher rates. This delay was attributable to lower hall talk availability and challenges with labor availability on the autonomous system of new haul trucks. This has been largely resolved, and we expect to process more ones ore in the fourth quarter. Our cost of sales was higher year-over-year as expected and reflects the ramp-up of QB and depreciation of its operating assets. Excluding Hub, our net cash unit costs remained the same as in Q3 last year at US$1.87 per pound. As Jonathan outlined, we have updated our annual copper production guidance to 420,000 to 455,000 tonnes from 435,000 to 500,000 tonnes. At our total molybdenum production guidance to 3,000 to 4,000 tons from 43,000 to 55,000 tons. Despite the reduction in our annual copper and molybdenum production guidance, our copper net cash unit cost guidance remains unchanged. Turning now to our segment on Slide 14. Overall, our gross profit before depreciation and amortization from our game segment was $358 million, an increase of 49% in the quarter compared to the same quarter last year, reflecting higher zinc prices and substantially higher silver and lead byproduct revenues as well as lower treatment charges. Red Dog had another very strong quarter of operating performance. Higher zinc and live production was driven by higher mill throughput, reflecting our operational focus to improve mill availability and minimize unplanned maintenance. Zinc sales volumes were strong and in line with our guidance despite difficult weather conditions. In September, we achieved a monthly record for concentrate loaded onto vessels reflecting the close integration between our operations and commercial teams. The shipping season has continued into the fourth quarter with shipments dependent upon weather conditions and we expect to complete our shipping season as planned. Our zinc net cash unit costs improved compared to the same period last year, reflecting strong operating performance, lower smelter processing charges and higher solar and likewise product credits. At Trail operations, while we did record an impairment in the third quarter, our new chipset border operated well and achieved near-record online time and throughput. However, our refining at production was impacted by the fire in the electrolytic same plant in September. Looking forward, we expect the can concentrate sales from Red Dog of 155,000 to 185,000 tonnes in the fourth quarter, reflecting the normal seasonal put. For the full year, we've improved our full year guidance range resets net cash unit costs by US$0.10 per pound to US$0.45 to US$0.55 per pound from US$0.55 to US$0.65 per pound. A portion of this reduction is driven by improved operating costs. As a result, we've also improved our zinc total cash unit cost guidance flat US$0.05 per pound to US$0.65 to US$0.75 per pound from US$0.70 to US$0.80 per pound. Our guidance for zinc and concentrate production is unchanged and our guidance for refine zinc production was lower to 240,000 to 250,000 tons from 275,000 to 290,000 tons due to the fire in electrolytic zinc plant at the Trail. Turning now to slide 15 and our resilient balance sheet. Since the close of the EVR transaction on July 11th, we've made significant progress in deployment of the transaction proceeds to the balance sheet and to shareholders. We've reduced our debt by US$1.5 billion to date, including a cash tender offer for US$1.4 billion of our outstanding term notes, repayment of US$120 million of short-term loans at Carmen de Andacollo and open market repurchases of an additional US$9 million of term notes. Overall, we strengthened our balance sheet in the third quarter, and we are in a net cash position of CAD1.8 billion as of September 30th. Our finance income increased in the quarter due to interest earned on our higher cash balance, which is currently CAD7.8 billion. The quality of our balance sheet, along with confidence in our business outlook and a focus on lowering our financing costs, resulted in us reducing the size of our sustainability linked revolving credit facility by US$1 billion last week to US$3.0 billion. In the quarter, we returned significant cash to shareholders through the payment of our regular base quarterly dividend of $0.125 per share and a supplemental dividend of $0.50 per share for a total of $322 million, and a purchase of 6.3 million Class B shares or $398 under our normal course issuer bid. We have currently returned over $1.3 billion to shareholders year-to-date, including a purchase of 13.6 million Class B shares. This builds on our strong track record of shareholder returns, which totaled over $5 billion since 2019. With our resilient balance sheet, we are strongly positioned to execute on our growth strategy and create value for our shareholders. With that, I'll turn it back over to Jonathan. Jonathan Price: Thanks, Crystal. To wrap up, starting with slide 17. As we shift to a pure-play energy transition metals company, we remain true to our purpose and values, guided by our capital allocation framework that balances growth with cash returns to shareholders. Our strategy is focused around four key pillars, which drive up this huge responsible growth and value creation. On slide 18, we are delivering on our strategy. Completing the sign of EVR means that we now have a portfolio that is 100% energy transition levels. We continue to focus on driving operational performance. Our copper production continues to grow. We've closed out the QB2 project and are progressing towards the final stages of the ramp-up of QB operations as the key driver of our near-term copper growth. And our focus on operational performance enabled a reduction in our full year guidance range for zinc net cash unit costs. We continue to balance cash returns to shareholders with our highly competitive copper growth opportunities. So far this year, we've returned over $1.3 billion to shareholders and deployed $302 million towards responding our portfolio of growth projects. And we significantly strengthened our resilient balance sheet in the third quarter. With the EVR sales proceeds, we've paid down US$1.5 billion of debt we had a net cash position of $1.8 billion as of September 30. To conclude with slide 19. As an energy transition apples company, our focus remains on creating value for our shareholders. We will drive strong operational and financial performance embedded by our focus on core excellence. And we're putting part towards the final stages of the QB ramp-up, which should set us up for strong cash generation financial performance. We are maintaining the balance between growth and shareholder service. We continue to progress our record returns to shareholders to $3.25 billion authorized by the Board this year. And with our resilient balance sheet, we are well positioned to continue to progress our well-funded capital vision near-term copper projects for potential planting in 2022. Thank you. With that, operator, please open the line to questions. Operator: Certainly. [Operator Instructions] Our first question is from Orest Wowkodaw with Scotiabank. Please go ahead. Orest Wowkodaw: Hi. Good morning. Question on QB2. So second consecutive quarter of guidance cuts here for 2024. You've now cut 2025 by 12%. I mean at this point, what -- can you share what gives you any confidence that these numbers are achievable in 2025 just given all the cuts we've seen this year? And I'm curious also what you're anticipating in terms of that guidance range for 2025, how much of that improvement over 2024 is driven by throughput versus grades versus recoveries? Jonathan Price: Good morning, Orest. Thanks for the question. So just to start there with a bit of context around 2024 and then the reduction to guidance, and then I'll go on to your question around 2025. As I said, the designed at QB is robust, and we have continued to make very good progress on mill throughput. And you can see that improvement quarter-over-quarter. We do expect to be operating at design of throughput rates by the end of 2024. The key for us here is to ensure that we achieve these design rates more consistently through maximizing our online time. On recovery, we expected some challenges in Q3 as we worked through higher amounts of plays in those transitionals between supergene and hypogene. Despite that, we did make some progress through higher recovery rates quarter-over-quarter. And as I mentioned, we have completed testing of dosage and reagent mixes, which have shown both improved recoveries and better stability in the plant, will be ongoing in that regard, both through the fourth quarter of this year, and in 2025. The other component, of course, aside from throughput and recovery in grade, and we're seeing a good level of accuracy in the grade of material we mine versus what we expect in our plans. We have expected lower growth in Q3, as we said, and we do expect an improvement in grade into Q4, and as I mentioned, if all else have been equal, think if we have the same grade in Q3 as we had in Q1 and Q2 and we operate it with the throughput and recoveries that we did in the third quarter, we would have produced 56,000 tonnes than 52,000 tonnes. So growing being there is the big driver of lower production in Q3 relative to expectations. Also important to note because we discussed this in the last quarter that the geotechnical issue that we encountered is under control, and it gives us confidence to re-work the mine plan. So, we're happy with the progress we're making on throughput recoveries, are very much a work in progress with test we're continuing to advance. And that fee extending to 2025. In 2025, some of the work that we're planning to do around recovery around dosing, but also some of the work that has to be done on the plant will go through the first half of 2025. So, -- that will involve some additional downtime in 2025 to drive those improvements in the first half. But we do expect that to translate into a much stronger and more consistent recovery performance through the balance of the year. The throughput, we are very encouraged by that. We do see periods where we're operating above nameplate and as I mentioned, that's all about driving more consistency in the uptime and on line time associated with the plant -- and again, there are some modifications that will be made to areas of the plant through the back end of this year, but also through the first half of 2025. So, we've looked very hard at all the operational performance drivers here, we believe that the 2025 guidance that we put forward here is very much achievable. But you'll note in the range that we've put around that with the $240 million to $280 million is relatively broad, and that's to reflect some level of ongoing uncertainty associated with an asset that is still in the ramp-up phase. Orest Wowkodaw: Just as a follow-up, in your presentation slide, Page 7, you show design recoveries of 86% to 92%. Is that a revised life of mine assumption? Or do you still think you can get to 92% on a consistent basis? Jonathan Price: Yes, there's no revision there, Orest. That has been designed and we still think that's achievable here. I'll hand over to Shehzad to talk about that in just a moment. But to say as we benchmark the performance of the ramp-up of QB against other major ramp-ups that have occurred, we are bang in line with the ramp-up territory when it comes to throughput. Recovery is the area where, as I mentioned, we have more work to do. But even so, we're not encountering some of the recovering issues that some of the major projects have been counted over time. So, again, that's what gives us the confidence to continue to push higher. And I'll hand over to our Chief Operating Officer, Shehzad, is a to give a bit more color on recovery specifically because that's a very important point. Shehzad Bharmal: Thanks Jonathan. So, we have achieved pretty decent recoveries when we -- with our typical ore types, but have struggled with some of the transition orders which have the higher place. And I think our performance has been 83% to 84% over the last quarters, and we are seeing better numbers now. But the most important part is as we introduced the more circuit as well, that had some impact as well. And test work that Jonathan mentioned has given us a good resolution on what reagents to use, and that is being implemented here in late October and November. And we will then fine-tune that well into the first half of 2025. And the range that you mentioned of $86 million to $92 million, it depends on what types are being fit. And we do expect some transition ores well into the first half of 2025. So, we won't get to those numbers of 92% in the first half and hence, some of the impacts on the 2025 guidance. And of course, 86% to 92% over a longer-term period, not in any quarter or any year over the life of mine. So you'll see variability of that as well. Orest Wowkodaw: Thank you. Operator: The next question is from Bryce Adams with CIBC. Please go ahead. Bryce Adams : Thanks, all. Appreciate the presentation. I wanted to ask on San Nicolas in open pit mining in Mexico. Jonathan, I think you mentioned in the comments that you're monitoring the situation. Is there anything that you can add to that? Recently, it looks like the tone has shifted towards being more positive. Would you agree with that? And could the asset be reconsidered as an underground operation. Is that something that's been evaluated? Jonathan Price: Bryce, thanks very much for the question. As mentioned, we are still monitoring the situation in Mexico. I think it's fair to say there's still a level of uncertainty there, but I would agree with your assertion that the tone has moved to a slightly more positive position for alternatively a slightly less negative position, depending on how you look at -- we've done a lot of work on what is the optimal path for development of this asset. I think your question is geared around trying to avoid the open cut the open cut issue, we still think that mine is going to deliver the best returns associated with our assets. We continue on the permitting process on that basis, and we continue on our feasibility study in engineered with on that basis. And we are hopeful of a resolution for open cut mining, particularly in the context of San Nicolas due course. But I think we have to be realistic and not that there is uncertainty in regards to that still in the environment today. Bryce Adams : Okay. That's all for me. Appreciate that. And then the extra color on few details in the last few minutes. Thank you. Jonathan Price: Thanks, Bryce. Operator: The next question is from Carlos De Alba with Morgan Stanley. Please go ahead. Carlos De Alba: Yes. Thank you very much. Good morning. Two questions. One on San Nicolas and another QB. San Nicolas, maybe just a follow-up, Jonathan, can you remind us if you already have a open pit mining concession for the project? Or do you have only an exploration license? What exactly do you have yesterday one of the biggest local corporate producers mentioned that for one of their projects, they are not worried about any changes in the legislation because they already have concession. So I just wanted to understand exactly what do you have? Jonathan Price: Yes, we believe that we do have protection under the concession that we have costs associated with San Nicolas, whether or not through this consideration around the future of open cut mining, that converts into a permit to development is really the open question at present. So the extent to which there is a grandfathering of those prior rights into the current situation is something we still have to work our way through good engagement by the San Nicolas JV and then also both partners, ourselves and Agnico Eagle with the Mexican authorities as we try to figure out the appropriate path forward for projects. Carlos De Alba: All right. That may sort of sense. And then on QB, how much -- how many days in September was the operation down for the maintenance that you mentioned in the release was taken. And I think I heard you mentioned that in the first half of next year, there's going to be also some downtime. Can you maybe provide a little bit more color what month do you have a sense of how many days in those months, the operation will be down? Jonathan Price: Yes. I'll pass you to Shehzad on that. As you know, we've had a cadence of major shutdowns, if you like, every quarter. And then in addition to that, there been some additional more opportunistic shutdowns that we've taken on specific areas of plant equipment. So Shehzad, if maybe you can comment on September and then broadly speaking on next year. Shehzad Bharmal: Carlos, in September, we took an extra three days to do some of the work of belt changes and some of the minor changes that we needed to do ahead of the test work. And then also, as Jonathan mentioned, the technical issues that we had, where the mills were down, but they running at limited rates because of water issues, recovery from the tiers. So -- it's not just a matter of downtime. It's some of the limitations as well, those issues have been resolved. The thickners and we continue to address issues as an example on we found that a funnel on our mills weren’t having the lives that we were expecting. So we went around, change the design, change the material and those have been installed. Some of our belting itself did not last, so we changed the material and the design of that to get. So these are the types of things that you encounter in a startup that we are addressing. And the Q1 downtime, the extra downtime really is to address several other items that we have identified, just to increase the design life of those components of the equipment. So no fatal flaw at all. It's just a matter of including the reliability of some of the components -- so the Q1 numbers are a few percentage points below our target on availability and then start in Q2 as well, that forms the guidance for 2025. Carlos De Alba: Okay. Thank you very much. I’ll follow-up with more questions later. Thank you. Jonathan Price: Thanks, Carlos. Operator: Next question is from Chris LaFemina with Jefferies. Please go ahead. Chris LaFemina: Thanks, operator. Hi, it's Chris LaFemina. Thank you all for taking my question. And thanks for the additional insights so far in the Q&A. Just had some follow-up on the QB ramp and how we should think about incremental costs and how that's going to flow through the P&L and the cash flow statement in 2025. So I think, Jonathan, you said that project CapEx is basically done. But with production guidance to for 2025 being lower, you talked about all the additional work that you need to do to get to full capacity. When I hear work in mining, I think costs. So how do we think about the kind of the cost impact in 2025, and just also wanted to confirm, is project CapEx now done? Or is everything just kind of flowing through kind of asset-level based operating expenses and CapEx? Or am I correct in you saying that earlier? Thank you. Jonathan Price: Thanks for the question there, Chris. So for the first part, yes, the project CapEx is done like US 8.6 to 8.8. We've fallen in that range and as said, there are some claims outstanding, but they've been accrued for and are captured in that range. So -- and we fully demobilize. So we consider the project to be done and in the rearview mirror, to your point on some of the works we're talking about doing next year, I mean these things are minor in the scheme of things and so small you're unlikely to see in the tool going up in our costs. This is essentially – it's a form of preventive maintenance or minor improvement work that we'll be doing around the site. So we don't see that as any significant additional capital or cost burn. And to your final point, yes, essentially with the project closed, all of these expenditures now will run through the operation, of course, where there's capital being spent on sustaining work, those things will be capitalized, but other operating costs in the normal course will run through P&L. Crystal, if there’s anything you want to add to that? Crystal Prystai: No. I think the only thing, I guess, I would say is we've reiterated our cost guidance for the copper business as well as for QB for 2024 despite seeing some reduction in our production guidance, I think that just really reiterates the point about our focus on cost, and we're working to demobilize contractors, and we've seen some success in that as well. Chris LaFemina: Right. So the 2025 reduction in production will be associated with an increase in costs. So we should expect, all else equal, unit cost that QB will be higher for 2025 because your volumes are lower. The very at least there was that additional kind of cost headwind, is that correct? Jonathan Price: Yeah. Well, we haven't guided it yet, Chris for 2025. Obviously, if you assume that operating costs are the same and you apply a lower production cost of that, then all else being equal to get a higher operating cost, of course, but we need to assess what those costs are for next year will go through in a due course. Chris LaFemina: And I guess the key Jonathan, like you said, I mean, it's not like there's a lot of additional CapEx as a matter of ramping the thing up and the operating cost might be a bit higher in the first half of the year, but there's nothing else that we have to really worry about. I guess, the second -- the follow-up to that is you've talked in test about waiting until 2025 before sanctioning your projects. And I think part of the reason for that was we wanted to get QB2 up to full capacity. So to the extent that this is being delayed in terms of the ramp, does that push back timing on kind of sanctioning other projects? Or is it still possible to see some of those sanction projects come through in the second half of next year? Thank you. Jonathan Price: Let me come to that in a second, Chris. Just – Crystal, is there anything else you wanted to say on the unit cost piece just to close that out? Crystal Prystai: Yeah. I mean, Chris, just to really confirm we haven't put out our guidance for unit cost for 2025, I would expect them to be lower than 2024, because we had -- obviously, factors with the ramp-up with using alternative shipping arrangements. We've had lower moly production, which has an impact on our net cash unit cost because we don't get the moly credit. So those things we should see those resolved in 2025, and we'll put out our guidance as we normally do in January as Jonathan said. Jonathan Price: Thanks Crystal. On the project sanction, the remaining work we have to do on QB as Shehzad mentioned is very much in the first half of next year as we look to optimize conditions of circuit reagents for better online time and improved recoveries. They are the two things we're focused on. We expect to have those start in the first half. Even if we achieve all of the permits on the timeline we're working to and things on studies and have positive -- with the capital costs of these projects, we wouldn't be sanctioning anything before the second half of next year in any event. So we remain confident in the full ramp-up of QB in H1, and we'll look at other projects. And I'm talking about greenfield progress growing in the second half of the year. HVC Mine Life Extension being a brand field, of course, is one that we will pursue as quickly as possible. But again, I think that runs into the business may here. Chris LaFemina: Great. Thanks, again. Good luck. Jonathan Price: Thanks, Chris. Operator: The next question is from Liam Fitzpatrick with Deutsche Bank. Please go ahead. Liam Fitzpatrick: Good morning, Jonathan. First one, just on production guidance. I wanted to clarify whether the update today -- updates for your other assets in terms of 2025 guidance? Or will we be getting further revisions to those in November or January? Jonathan Price: Yes. So the -- the only update we've made for 2025 are ones we've communicated today. And of course, that just relates to QB, where for the issues we've identified. We understood clearly today that there would be a change to prior guidance for next year. All other assets as we work through the planning process and our associated guidance will be updated in the quarter of January. Liam Fitzpatrick: And then on the growth strategy, I mean you're clearly not alone in terms of the challenges in building and ramping up copper assets. Are you still convinced that going ahead with other greenfields further down the line is the right strategy for tech? Jonathan Price: We are at Liam a number of reasons. I mean, firstly, the projects that we have in the pipeline ahead of us are significantly smaller in scale, scope and have much lower complexity than the Q3. So we're also doing significantly more work around de-risking projects prior to sanction in the year in terms of the level of engineering that we'll be undertaking, for example, which will give us greater certainty to capital spend schedule and execution pathways. And we believe that the low capital -- relatively low capital intensity of these greenfield projects will offer very good returns to watch analyst. And to us, it certainly looks like a more attractive strategy than M&A, where a great deal of those the upside can be paid away through premiums to acquire assets. So we do think it's the right strategy. Of course, through going through something like QB in terms of the major construction and development effort there. And then the ramp-up process that that we're working through here, we take significant learning's from that and build enormous organizational capability we can take forward on future projects. So Liam, we do think it's the right way forward. These projects are not simple. They never are, but we're working very hard on building the capability, capacity, system processes inside the organization to underwrite success with future project development. Liam Fitzpatrick: Thank you. And my last quick one, if I may. Just on working capital. So there was a reasonably big build in Q3, about $0.5 billion. Any color on or guidance on how and when that will unwind in the course? Jonathan Price: Yes. Thanks, Liam. Well, I mean along with that some of that let relates to QB. So I'll pass over to Ian Anderson, our Chief Commercial Officer, who can explain a little bit about the production versus sales profile that we've seen in the operation. Ian Anderson: Yeah. Thank you very much for question, Liam. I may be important just to say at the beginning that, of course, sales and production don't always match and that could occur for a variety of reasons, including cutoffs for the reporting period. In system and in-transit inventory, vessel scheduling, loading windows, things like that. So, for example, we currently have just a couple of holes of cargo at the port. Those are scheduled to load imminently and there's really no excess inventory there. In terms of the working capital question, though, the difference that you see in the disclosure is attributable to material that's at the mine and they built up through the transition, claim materials challenge that we referred to in disclosure. So, this material is being transferred now to filtration plants into the port and we'll go out for loading and for sales. And we expect a good portion of that to occur in Q4 and the remainder expected in Q1. So, on that basis, the volumes were reconciled over time, but important just to come back to the fact that, of course, sales and production will last. Crystal Prystai: And then I'm sorry, I'd just add in relation to timing of sales, we did have very strong bulk copper and zinc sales in the month of September. And so you see some of that built into the ARR, which will be closed in a normal course as we go through the rest of -- into Q4. Liam Fitzpatrick: Okay. Thank you. Jonathan Price: Thanks Liam. Operator: The next question is from Myles Allsop with UBS. Please go ahead. Myles Allsop: Yes, thanks for the opportunity. So, first of all, maybe on the buyback. Could you just give us a sense, are you maxing out with the buyback during Q3, should we assume that a similar rate can be achieved in Q4 and during 2025, around $400 million a quarter? Jonathan Price: I'd just say on that, Myles, we're not maxed that. We are being value-driven in the way we execute against that buyback. So, at lower share prices, we're buying back more shares in a higher share prices with we're buying back less. There's nothing at all to indicate that we can't continue running at the same rate in Q4 that we get in Q3, in fact, would be somewhat accelerated because in July due to a blackout period, we weren't buying back shares. So, we would expect, again, all else being even to buy back more shares in Q4 than we did in Q3. Myles Allsop: Okay. That makes sense. And then just going back to QB, I'm sorry, it's obviously the key question. Obviously, you've talked a bit about optimization and debottlenecking, which is not in the guidance, but some of that upside medium term. When will we get more clarity on this? When will you start building it into guidance? Is this going to be end of next year once you hit steady state or -- how should we think about that? Should we start factoring in throughput above 143,000 tons a day? Or should we just stick at 143,000 given the track record over recent quarters? Jonathan Price: Yes. Good question, Myles. I mean, first off, I'll say that at our Investor Day a couple of weeks from now, we'll talk about this path forward for the QB asset in some more detail. I think for the time being, best to stick with the nameplate capacity because our focus is on proving that consistently by getting the online time where it needs to be. We have communicated that we think there is an opportunity to optimize above that. And then we talked about that optimization being up to 10% increase in throughput, which can be accommodated by our existing permits. Beyond that, any detail upside in the plant will really come through more debottlenecking approach, which would require some minor modifications and upgrading to certain plant and equipment. And that could potentially deliver another 15% of upside in terms of throughput. But the studies associated with that work are underway we expect to have a much better line of sight into the path forward by the end of year, but we will communicate more information and talk about this in some more detail in a couple of weeks' time in the Investor Day. Myles Allsop: Okay. Thanks. Operator: The next question is from Lucas Pipes with B. Riley Securities. Please go ahead. Lucas Pipes: Thank you very much, operator. Thank you very much for taking my question. And Jonathan, when you have your site to at Highland Valley on November 5 and still have labor needs, I might be tempted to fill out job applications. So please remind me of that. But all joking aside, I wanted to touch on Trail for a moment. You mentioned a range of initiatives that you're looking at to improve the operational stability at that asset? What will it take CapEx-wise time-wise to improve the performance there? Thank you. Jonathan Price: We were just singling and processing your job application area, we missed the asset you were referring to. Could you just repeat that, please? Lucas Pipes: That is a Trail. Jonathan Price: Trail. Okay, thank you for that. Yes, we are -- we've seen a recent improvement in performance of the Trail. Absolutely, we brought the KIVCET boiler back online, that’s performing very well, and we are looking at cost reduction approaches there to further improve. But I'll just get Shehzad to give you a little bit more color on some of the work that we're doing it for. Shehzad Bharmal: So Lucas, we've made some recent leadership changes there as well and with a renewed focus on cash generation, as Crystal mentioned earlier – as in product margins and costs reductions and particularly in the maintenance and non-routine work area. We are going through a lot of metallurgical work as well in order to improve recoveries from the residues and with real good success right now. And that will help us to be able to take different feeds while maintaining the margins from those fleets with improved recoveries. And of course, coupled that with a strong focus on cost reductions to get us back to profitability. Lucas Pipes: Thank you. And CapEx-wise, any ballpark figures to think about? Shehzad Bharmal: No major CapEx associated with these changes. Lucas Pipes: Thank you very much for that. And I wanted to touch on the balance sheet really quickly. Crystal, can you remind us how much more you're looking to allocate towards capital returns? How much more are you looking to allocate towards debt reduction from here going forward? And just kind of bigger picture, what do you think do you need in terms of cash to run the business and also be prepared for growth? So if you could comment on that, I would appreciate the color. Thank you. Crystal Prystai: Yes. No problem. Thanks, Lucas. I think in terms of -- maybe I'll start with the debt reduction piece of. When we announced the use of proceeds, we had allocated US$2 billion to that. And to date, we've completed over US$1.5 billion with the combination of the buyback of our notes as well as the reduction in the CBA short-term loans. So I think we have around maybe US$400 million remaining earmarked for debt reduction. And we're continuing to review how we may deploy that. The options obviously relate to the project financing for QB as well as some leasing that we have on the balance sheet. So we're exploring those. I think they will take a little bit more time for us to execute because we obviously have partners and things to resolve in that regard. And then in terms of the shareholder return, so we've -- obviously, we paid the supplemental dividend, the $0.50 a share in September. The Board had authorized $3.25 billion of buybacks, if you also include the $500 million from earlier in the year. Through yesterday, we had executed $882 million of that. So we'll have the remainder to execute. I think it will take us sort of 12 to 18 months longer to complete that. And as Jonathan noted, that will depend on, obviously, the price of our shares and with consideration of value. So that's on the buyback. And then in terms of the growth projects, we had -- when we issued the use of proceeds again, we had disclosed a range of capital for those projects, and that's in our order from July. And we're continuing to review those CapEx numbers and assess those as we go through the detailed engineering work and conclude the studies. And so we'll provide updates in due course as needed. But I think you can refer back I don't have the number at hand, but I -- so 2.6% to 4.3%. You can double check in July and please confirm with you offline, but -- so that's in regard to growth, and we hear our proceeds for that, and we're holding it as cash. We expect QB to generate significant cash flow as we get up to the full production into 2025. And we as per our capital allocation framework, if we generate cash in excess of our needs, we would return that to shareholders and our capital allocation framework enables us to do that with that minimum 30% of available cash returns return to shareholders. So that's generally how we think about it. And if you have, I guess, follow-up questions, happy to take that. Lucas Pipes: Thank you very much for the color and I look forward to seeing you in November. Jonathan Price : Thank you Lucas. We'll see you then. Operator: Our next question is from Timna Tanners with Wolfe Research. Please go ahead. Timna Tanners: Hey, good morning. Thanks for squeezing me in. Just had two that I hadn't heard addressed if I missed them. One is just on the updated economics of Semi and Safran. It's been a while since I've seen at least 1 cost estimate, pre-COVID and the size of the asset and all that, will that be something we can hear about in November? Or can you just remind us on the timing of any update there? Jonathan Price: Yes. Thanks for the question. Timna, yes, we will provide more updates on those projects in November. Timna Tanners: All right. We'll stay tuned. And then my other question, I just want to be appropriate to ping you on the zinc market because as much as we all talk about copper and other commodities, zinc has been this of the biggest high flyers that we've followed. I know one article I read attributed the trail fire maybe to some of those things. But anything you could provide for us in terms of color in your outlook of how sticky this strength may be would be great. Jonathan Price: Timna, thanks for asking. Ian, over to you. Ian Anderson: Yes. Thank you for the question, Timna. Interesting that in both the zinc and the copper concentrate markets, you're seeing structural deficits and concentrate. I would differentiate those two. And in zinc what we see is actually a chronic shortage and underinvestment in terms of mines. And then challenged of course, both by disruptions that have occurred within the last couple of years and shutdowns as a result of the previously low price. So looking forward, you're really relying on three mines coming online in order to improve that concentrate picture Kipushi, Ozyornoye, Antara. Kipushi of course, has been a bit slow to ramp up. They've been shipping over quarter three, and have revised their guidance. Ozernoye uncertain of the condition of that in the future in that material, of course, because the trust would go to China, and then [Indiscernible] began in Q3 and have begun with a smaller staff complement, and likely not to return to the same production levels that they had previously. So all of that speaks to us about a chronic shortage of concentrate, you're seeing that reflected in the record low TCs that are occurring. And certainly, the major research houses are looking forward to that TC in 2025 and expecting it to be at significant lows as possibly can record wells. So I think that's why you're seeing zinc responding the way that it has in terms of finished metal price. Finished metal prices in North America at least have come up a little bit in the last while, and that's positive. So we were looking to zinc for a bright future in 2025. Thanks for the questions. Jonathan Price: Thanks, Timna. Operator: I will now hand the call back over to Jonathan Price for closing remarks. Jonathan Price: Thank you, operator, and thanks again to everyone for joining us today. We look forward to seeing many of you in person in Vancouver in a couple of weeks for our Strategy Day and the Highland Valley site visit. All of those presentations will be posted to our website at teck.com, shortly after the event. So thank you once again. And as ever, if you have any further questions, please reach out to Fraser and our IR team. Enjoy the rest of your day. Operator: This concludes today's conference call. You may disconnect your lines. Thank you for participating.

Operator: Ladies and gentlemen, thank you for standing by. Welcome to Teck’s Q2 2024 Earnings Release and Investors Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] Yes, this conference call is being recorded on Wednesday, July 24, 2024. I would now like to turn the conference over to Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analysis. Please go ahead. Fraser Phillips: Thanks, Kaylene. Good morning, everyone. And thank you for joining us for Teck’s second quarter 2024 conference call. Please note today’s call contains forward-looking statements. Various risks and uncertainties may cause actual results to vary. Teck does not assume the obligation to update any forward-looking statements. Please refer to Slide 2 for the assumptions underlying forward-looking statements. In addition, we will reference various non-GAAP measures throughout this call. Explanations and reconciliations regarding these measures can be found in our MD&A and the latest press release on our website. Turning to the agenda on Slide 3, Jonathan Price, our CEO, will begin today’s call with highlights from our second quarter results. Crystal Prystai, our CFO, will follow with additional color on the quarter, as well as the sale of our steelmaking coal business and the use of proceeds from that transaction. Jonathan will then discuss the transformation of our portfolio and our value creation strategy. We’ll then take your questions. With that, over to you, Jonathan. Jonathan Price: Thank you, Fraser, and good morning, everyone. Starting with the highlights from our second quarter on Slide 5. At the very top of our list of highlights is the close of the sale of the remaining interest in the steelmaking coal business on July 11th. It’s not every day that we receive C$7.3 billion in cash proceeds and this transaction marks an exciting new era for Teck as a company focused entirely on providing metals that are central to global development and the energy transition. We believe that the copper market has strong fundamentals and we continue to see ongoing urbanization and population growth, driving increased copper intensity with additional demand driven by power generation, technology, data and increased electrification. The long-term outlook for copper is highly resilient. And with the significant proceeds from this transaction, Teck is strongly positioned to capitalize on the growing demand for copper in our new era. With substantial funding retained for our near-term value-increasing projects, which provide us with a pathway to increase total copper production once QB is at full capacity by a further 30%, starting as early as 2028, with significant debt reductions further strengthening our resilient balance sheet and with the largest cash return to our shareholders in the company’s history. Crystal will speak to the use of proceeds in greater detail shortly. Beyond the transaction, there were several highlights from our strong operational and financial performance in the second quarter. We generated C$1.7 billion of adjusted EBITDA, a 13% increase from the same period last year, reflecting record quarterly copper production, driven primarily by the ramp-up of Quebrada Blanca or QB. It was also another strong quarter of Red Dog and we had very strong production in the steelmaking coal business, despite two major planned maintenance shutdowns. At the same time, we advanced our industry-leading copper growth portfolio, having achieved several milestones in the permitting processes for the Highland Valley Mine Life Extension and for San Nicolás. And we continued to focus on sustainability leadership, including improved safety performance. Our high potential incident frequency rate was 0.11 for the first half of the year, which is a 46% reduction in HPIs from the same period last year. I’m turning to the highlights from QB on Slide 6. We continued to advance the ramp-up during the second quarter. QB copper production increased quarter-over-quarter to 51.3,000 tons from 43.3,000 tons. Robust design and construction of the plant supported the bottlenecking and we remained focused on recovery and throughput. We achieved first production and sales of molybdenum as planned and ramp-up of the molybdenum plant is progressing. And our QB net cash unit costs were in line with our expectations. QB is already starting to contribute to our strong financial results, with C$284 million in gross profit before depreciation and amortization generated in the first half of the year, while still in ramp-up. Turning now to the outlook for QB on Slide 7. We are seeing continuous improvements in throughput, which is now close to design rates. While we had recurring failures with a pulley in a key overland conveyor, these have now largely been mitigated. At the same time, recoveries have improved as we adjust the clays in the transition ores and improve slab stability. Our focus is on driving recoveries to design levels and we are confident that we will achieve our target recoveries by year-end. Most importantly, we continue to expect to reach full throughput rates at QB by year-end. However, slightly lower than planned ore grades in the second half of the year, due to short-term mine access issues related to pit dewatering and a localized geotechnical issue, have resulted in an update to our 2024 production guidance for copper and molybdenum. We’ve revised our full year QB copper production guidance to 200,000 tons to 235,000 tons, 230,000 tons to 275,000 tons and revised our full year QB molybdenum production guidance from 1.8,000 tons to 2.4,000 tons, from 2.9,000 tons to 3.6,000 tons. In line with our production guidance changes, we’ve revised our full year net cash unit cost guidance for QB to US$225 per pound to US$255 per pound from US$195 per pound to US$225 per pound. And while second quarter sales from QB were impacted by a temporary filter plant issue at the port in June, it was resolved by quarter-end and we expect to make up the sale volumes over the balance of the year. Production guidance for QB for 2025 to 2027 is unchanged. Once at full capacity, QB will double our copper production and we expect our base metals operations to generate significant EBITDA. As shown on the slide, we have the potential to generate more than C$5 billion of annual EBITDA and with sustaining capital and capitalized stripping expected to be in a range of C$1 billion per year to C$1.2 billion per year, Teck’s free cash flow generation potential is compelling. I’ll now hand the call over to Crystal to provide further details. Crystal Prystai: Thanks, Jonathan. Good morning, everyone. I’m going to start on Slide 9 with our financial performance in the second quarter. Given final regulatory approval of the sale of Elk Valley Resources or EVR, was not received until July 4th, we continue to report EVR in our operating results in the second quarter. Starting in the third quarter of 2024, EVR results will be presented as discontinued operations. There are a number of significant accounting and presentation items that impacted our first quarter results and these continue to impact our results in the second quarter. Consistent with our reporting in Q1, our second quarter financial statements reflect the 23% minority ownership in EVR by NSC and POSCO, and we continue to consolidate 100% of EVR’s production and sales volume, revenue, gross profit and EBITDA given our controlling shareholding position. Our profit attributable to shareholders is based on our 77% ownership of EVR. It’s the remainder of EVR profit attributable to non-controlling interest. It’s reduced our profit attributable to shareholders and related EPS compared to the same period last year. We continue to operate the steelmaking coal business in the second quarter and retain all cash flows from EVR until completion of the sale of our remaining 77% interest in EVR to Glencore on July 11th, 2024. Our finance expense and depreciation and amortization expense have both increased compared to the same period last year, as we are depreciating QB assets and no longer capitalizing interest on the project starting in 2024. Our solid financial performance in the second quarter reflects record copper production and strong copper prices, as well as strong steelmaking coal sales volume, which were partially offset by higher depreciation, amortization and finance expense due to the QB ramp-up and the non-controlling interest resulting from the minority sale of EVR to NSC and POSCO, as I outlined earlier. We returned a total of C$346 million to shareholders in the quarter, including C$282 million in share buybacks executed under the C$500 million return previously authorized by the Board following receipt of the NSC proceeds, and we paid C$664 million of quarterly based dividends. Through the end of June, we had executed C$363 million of the Board-authorized C$500 million share buyback. Slide 10 summarizes the key drivers of our financial performance in the quarter. The increase in adjusted EBITDA in the quarter compared to the same period last year was primarily driven by higher pricing adjustments, primarily for copper, but also for zinc, increased sales volumes for copper, with record quarterly production, as well as steelmaking coal sales volumes at the top end of our guidance range and the positive impact of a weaker Canadian dollar. These items were partially offset by higher operating costs across our business and lower steelmaking coal prices. We remain highly focused on managing our controllable operating costs. Higher overall operating costs in the quarter reflect elevated QB operating costs, as well as inflation that is expected to persist throughout 2024 and was contemplated in our guidance for sustaining capital and unit costs. As expected, QB costs were elevated in the first half of the year due to alternative shipping arrangements, ramp-up of the molybdenum plant and lower volumes as ramp-up of production continues. Now turning to each of our business units in greater detail and starting with copper on Slide 11. Overall, our gross profit before depreciation and amortization in copper increased 118% in the quarter compared with the same period last year, reflecting a significant increase in the copper price in the quarter and substantially higher sales volumes, partially offset by elevated QB operating costs as production ramp-up continues. Spot copper prices hit a record high of US$4.92 per pound at the end of May and our realized copper price in the second quarter was US$4.44 per pound, up 17% compared to the same period last year. The ramp-up of QB drove our record quarterly copper production up 71% from the same period last year and we also had higher production at Highland Valley and Antamina. This was partially offset by lower production at Carmen de Andacollo due to water restrictions as a result of ongoing extreme drought conditions. Water restrictions improved during the second quarter and are expected to continue to improve in the second half of this year. As expected, our cost of sales was higher year-over-year as QB operations ramp-up and we record depreciation of QB’s operating assets. Excluding QB, our net cash unit costs were US$1.82 per pound or US$0.10 per pound lower than the same period last year as a result of lower U.S. dollar denominated operating costs and lower smelter processing charges, partly offset by reducing by-product credits from Antamina. Looking ahead, as Jonathan outlined, we have updated our 2024 annual copper and molybdenum production guidance and our unit cost guidance for the full year, reflecting changes to QB guidance. We revised our copper production guidance to 435,000 tons to 500,000 tons from 465,000 tons to 540,000 tons, which still represents over 55% copper growth year-over-year at the midpoint. Our molybdenum production guidance is now 4.3,000 tons to 5.5,000 tons from 5.4,000 tons to 6.7,000 tons. And our net cash unit cost guidance has been revised to US$1.90 per pound to US$2.30 per pound from US$1.85 per pound to US$2.25 per pound, primarily as a result of lower molybdenum production, as well as lower copper production volumes. Looking now at our zinc business on Slide 12. We had another strong quarter at Red Dog with increased zinc and lead production, reflecting higher grade and recovery. Zinc sales of 53,000 tons were in line with guidance for the second quarter. However, Red Dog’s net cash unit costs were up US$0.04 per pound due to higher costs for consumables and an increase in smelter processing charges. At Trail, refined zinc production was impacted by unplanned maintenance, and refined lead and by-product production was significantly lower, reflecting the planned 70-day shutdown for the replacement of a KIVCET boiler. The project was completed on time and on budget, and the boiler has been operating very well since the restart. Overall, our gross profit before depreciation and amortization in zinc decreased 53% in the quarter, primarily due to reduced refined metal sales and zinc premiums at Trail and lower zinc sale volumes from Red Dog compared to the same period last year. The shipping season at Red Dog commenced on July 12, and we expect Red Dog’s zinc and concentrate sales of 250,000 tons to 290,000 tons in the third quarter, reflecting our normal seasonality of sales. Our 2024 annual zinc and concentrate production guidance of 565,000 tons to 630,000 tons and our net cash unit cost guidance of US$0.55 per pound to US$0.65 per pound are both unchanged. At Trail operations, our 2024 annual refined zinc production guidance is unchanged at 275,000 tons to 290,000 tons. Turning now to steelmaking coal on Slide 13. This marks our last full quarter of reporting on EVR and we are finishing on a high note. Sales volumes in the quarter of 6.4 million tons were at the top end of our guidance range and steelmaking coal prices declined, but they remained strong. And despite two major planned maintenance shutdowns, we achieved very strong production across all of our plants. Adjusted site cash costs of sales per ton of C$112 were higher than the same period last year, driven by higher spend on labor, contractors and diesel, and less favorable mining drivers. Given the ongoing shortage of skilled trade labor, we continue to have increased reliance on contractors. Transportation costs were C$1 per ton lower than the same period last year, due to lower demerit charges as a result of continued stable vessel queues. Overall, we generated C$1.1 billion in gross profit before depreciation and amortization, reflecting lower realized steelmaking coal prices and higher unit operating costs, partially offset by higher sales volumes and the positive impact of a stronger U.S. dollar. Turning now to the sale of EVR and our use of proceeds from the transaction. Starting on Slide 15, we completed the sale of the remaining 77% interest in EVR to Glencore on July 11, and received total transaction proceeds of US$7.3 billion, subject to customary closing adjustments. This transaction is a catalyst to transform Teck into a pure-play energy transition metals company. The proceeds position Teck for our next phase of responsible growth and value creation. And as always, we remain committed to our disciplined capital allocation framework on Slide 16. This guided our deployment of the proceeds from the transaction. We have a disciplined approach to the deployment of capital and we aim to balance our growth with cash returns to shareholders, while maintaining a strong balance sheet through the cycle. Slide 17 summarizes how we are allocating transaction proceeds. We announced the largest return of cash to shareholders in Teck history, with approximately C$3.5 billion in total share buybacks and dividends. The share buyback of up to C$2.75 billion is in addition to the C$500 million share buyback previously authorized following the minority sale of EVR to NSC and POSCO. And through the end of June, we had completed C$363 million of the C$500 million buyback. The Board also authorized a one-time supplemental dividend of C$0.50 per share for approximately C$250 million, which will be paid on September 27, in addition to our quarterly base dividend of C$0.125 per share. We announced a debt reduction program of up to US$2 billion and launched a cash tender offer of US$1.25 billion for our outstanding notes that was subsequently outsized. On July 15, we completed the purchase of approximately US$1.4 billion of our public notes and we are assessing further debt reduction opportunities. We expect to pay costs and taxes related to the transaction of approximately US$750 million in early 2025. The remaining net proceeds from the transaction will be retained to fund our near-term copper growth. Once QB is at full capacity, we have a pathway to increase our copper production by a further 30% starting as early as 2028 through our near-term projects. These include the Mine Life Extension at HVC, Zafranal, San Nicolás and QB optimization and debottlenecking. Our attributable capital cost for these projects is estimated to be US$3.3 billion to US$3.6 billion. Turning now to Slide 18 in our resilient balance sheet. Following the close of the EVR transaction, we are now in a net cash position, including US$8.7 billion in cash as of today. With the purchase of US$1.4 billion of our public notes on July 15 through the cash tender offer, we have decreased our outstanding term notes to US$1.1 billion. Our total debt outstanding following the cash tender offer is US$4.3 billion and our net cash position is currently US$2.9 billion. We remain focused on maintaining our investment grade credit metrics supported by our resilient balance sheet. And going forward, we expect to generate higher interest income by the additional cash that we’re holding on the balance sheet. At the same time, our annual requirements for sustaining capital and capitalized stripping have declined to US$1 billion to US$1.2 billion following the sale of EVR. QB is expected to generate significant additional EBITDA and free cash flow at full production, which will further build on the resilience. As demand for copper continues to rise and constraints on new supply persist, the value of high-quality, low-cost copper assets will only increase. Overall, Teck is strongly positioned to execute on our strategy for responsible growth and value creation. With that, I’ll turn it back over to Jonathan. Jonathan Price: Thanks, Crystal. So going on to our transformation on Slide 20. As I said earlier, Teck is now entirely focused on providing metals that are essential to global development and the energy transition. I would like to take a moment to reflect on some of the strategic developments that we’ve executed on over the past couple of years to get to this point. Last year, we started to refocus our portfolio towards energy transition metals through the sale of our interest in Fort Hills, marking our exit from the oil sands business. We also modernized our share structure with the introduction of a sunset for our Class A shares, reflecting our commitment to strong corporate governance and acting in the best interest of all shareholders. At the same time, we continue to advance the projects in our industry-leading copper growth pipeline. Two key milestones we’re entering into joint ventures at NewRange in partnership with PolyMet and at San Nicolás in partnership with Agnico Eagle, which help us to advance and derisk those projects. This year, we completed construction of QB, which is the driver for our near-term growth. QB is a transformational Tier 1 asset for Teck with a long life, hesitant cost position and meaningful expansion opportunities, and it will be a cornerstone of our copper portfolio for decades to come. Finally, we’ve completed the sale of our steelmaking coal business, transforming Teck into a pure-play energy transition metals company. As Crystal has just discussed, with a significant transaction proceeds in hand, we’ve announced significant cash returns to shareholders and taken steps to ensure that Teck is strongly positioned to capitalize on the growing demand for copper. And we remain committed to balancing our growth with further cash returns to shareholders. All of this evidences our willingness to both set a bold strategy and critically execute against it, always with a focus on value creation. Moving on to our current portfolio on Slide 21. With the strategic moves that we have made, our commodity mix is now 100% base metal. We have a solid foundation of long life producing copper and zinc assets that generate strong cash flow today, including Antamina in Peru, Highland Valley Copper in British Columbia and Red Dog in Alaska, and our cornerstone QB assets in Chile, which will generate strong cash flow at full production. We also have Mine Life Extension opportunities to maintain this foundation, including at Highland Valley and Antamina in the near-term. Importantly, while our portfolio mix has changed, our focus on maximizing long-term value for shareholders has not. We remain committed to operational excellence, ensuring we deliver the full value from our premium base metals portfolio. Returning to our industry-leading copper growth on Slide 22. Over a decade ago, Teck recognized the value that could be created through a robust pipeline of copper projects. As a result, we have created a highly valuable portfolio of actionable copper growth projects, diversified by jurisdiction and scale. Each of these will be a low-cost operation, with competitive capital intensities already derisked through strategic partnerships. Teck is now on track to becoming a top 10 global copper producer. Doubling copper production with QB as a pathway to further increase production by 30% starting as early as 2028. Our near-term copper projects are high-quality, capital-efficient and low-operating cost projects, which should enable us to move down the cost curve and generate strong returns. We are also exploring optimization of QB to increase production beyond design throughput capacity with minimal capital. Beyond this, by the end of the year, we will develop a definitive plan for near-term, low-capital-intensity debottlenecking at QB. We are progressing the Life Extension of Highland Valley to allow for continued production of this stable and profitable core asset for another 17 years. Export will be reviewing the Zafranal project for sanction as early as the second half of 2025. This capital-efficient growth project is expected to have a rapid payback driven by high grades in the early years. At San Nicolás, we continue to progress feasibility study work and our permitting application to position us to deliver this low-capital-intensity project that we expect to generate industry-leading returns. At the same time, we continue to progress our longer-dated projects to ensure that we retain a pipeline of future growth opportunities. Turning to Slide 23, we are continuing to create value for shareholders by driving best-in-class, safe and sustainable operational performance from project delivery, including managing costs; incorporating learnings from the completed independent review of QB2 into our future projects; assessing value-accretive opportunities to expand and optimize our high-quality operating assets; ensuring we continue our disciplined capital allocation to generate strong returns; executing on our well-funded, capital-efficient, near-term copper growth projects; balancing growth with cash returns to shareholders. Overall, I believe that Teck is uniquely positioned as a pure-play energy transition metals company with both a premium portfolio of long-life cash-generating assets in well-understood jurisdictions and industry-leading copper growth. We’re working hard to unlock the full potential of growth with a focus on value creation. I believe that there is incredible value inherent within Teck, not just in terms of the quality of our assets and the depth of our copper growth pipeline, but also our responsible and ethical approach to resource development, which is critical to our ability to realize value. So to conclude on Slide 24, while we are entering an exciting new era as a pure-play energy transition metals company, we remain strongly committed to our purpose and values, which remain personal to me and to all of us at Teck. As we pursue responsible growth, always focused on value creation, our capital allocation framework continues to guide us in balancing that growth with cash returns to shareholders. We are strongly positioned to capitalize on the growing demand for copper and we look forward to continuing to unlock significant value upside for our shareholders. With that, thank you, and Operator, please open the line for questions. Operator: Certainly. [Operator Instructions] Our first question is from Orest Wowkodaw with Scotiabank. Please go ahead. Orest Wowkodaw: Hi. Good morning. Nice to see the progress at QB2. I was wondering if you can give us some more color on this localized geotech issue, and specifically, what does it mean for grade profile for H2 on copper? And then I’m also wondering if it’ll impact 2025 grade? Jonathan Price: Yeah. Thanks, Orest. We are very pleased with the ongoing progress at QB2, the quarter-over-quarter improvement, again, as we said, is very encouraging. What I’m going to do is hand over to Shehzad Bharmal, our SVP of Operations. He’ll give you a bit of an overview as to where we are now and the outlook for the second half and beyond. Shehzad Bharmal: Thanks, Orest, and perhaps, best if I give a broad overview of the status and the accomplishments of QB to-date. As we published, QB continued to have month-over-month improvement in performance and copper production over the last quarter. April was at 14,600 tons, May came in at 17,300 tons, and then June at 19,300 tons. And then, the operations design is robust and no critical issues have been identified. Throughput, recovery, and head grades are, of course, the three factors that drive copper production. And we have continued to make excellent progress in throughput. And over the last while, we have run between 90% to 95% of design rates. So very confident of reaching full rates here over the next coming months and focus here is really on stable operations with improved online time. On recovery, we are managing through higher amounts of clays that are in the transition ores between the supergene and hypogene mineralization, and we are making good progress. And this is being done with selecting different reagents, fine-tuning the dosing, and of course, modifying some other operating parameters. And as a result, we are a few points behind on recovery, but with the adjustments and more stable operations, which also contribute to recovery issues, we expect to hit target rates in the months ahead. Talk about the head feed grade, that you mentioned with this geotech issue. Generally, the head feed grade is very consistent with our block model and that is really the key point and very reassuring. In the second half, we do expect to have more than planned feed head grades. This temporary access issues were -- was in access to the higher grade areas in the mine sequence as we had planned originally. And this localized geotechnical issue is for the access ramp to these areas. And what we are doing is we are working through reorienting the access ramp a little bit and additional support and buttressing, and that’s going to take several months. And we expect to complete this work late this year and have full access by early next year, and actually in December, we plan to have -- we expect to have access to this. The implications for 2025, 2026 is very minimal. Some of this higher grade will bleed into 2025 and will change the mine sequence and the balance of it will feed into 2026 as well. So, overall, really not a meaningful impact into 2025, 2026, but a meaningful impact in Q3 in particular and Q4 as well. Orest Wowkodaw: Thanks, Shehzad. Can you actually give us a rough guide for the copper grade in H2? Shehzad Bharmal: Yeah. We’ll follow up with that with -- Fraser will follow up with some of those details maybe offline. Operator: The next question is from Lucas Pipes with B. Riley Securities. Please go ahead. Lucas Pipes: Thank you very much, Operator. Good morning, everyone. My first question is on Slide 22, where you show your near-term growth project and I’m sure you’re putting them into a funnel, and I wondered in which order would the project kind of come out of the funnel, and what are the key attributes you’re screening for as you decide the ranking? Thank you very much. Jonathan Price: Yeah. Good morning, Lucas, and thanks very much for that question. Yes. I mean, we are managing this as a portfolio. These projects all have different risk-return characteristics, as you would expect. Of course, with QB and Highland Valley, these are both brownfield expansions, and at QB in particular, there’s a process there of optimization of the existing operation, the bottlenecking of that operation and then a potential expansion of that operation. Zafranal and San Nicolás, of course, are greenfield projects, both in jurisdictions where we don’t currently operate. We have good experience in Peru, of course, through Antamina, and at San Nicolás, bringing Agnico Eagle into that joint venture with their experience in Mexico significantly derisks our entry there. So we evaluate all of these projects. We’re progressing them in parallel through the completion of studies, through engineering and through the application for permits. We will evaluate the economics of each of these projects against the relative risk and make those decisions accordingly. The one project where, of course, we do have particular timing considerations is the Highland Valley Mine Life Extension. The current mine comes to end of life there around 2028 and we would like to see continuity of operations through the extension. So that’s one that we very much expect to take forward to sanction next year, 2025. With Zafranal and San Nicolás, as I said, of course, it will be dependent on the outcome of those studies and engineering. But in the case of Zafranal, as you know, we already have a permit, and that’s one, again, we have some confidence we’ll be ready for sanction within the second half of 2025. So, it’s great to have a portfolio like this, so we can think about the balance of risk and reward associated with each of these opportunities. And as I said, we continue to work very hard to progress all of these opportunities in parallel today. Lucas Pipes: Thank you. Thank you very much. And a quick clarification question for Slide 7 and a higher level question as well. The capital requirements of C$1 billion to C$1.2 billion, I believe that’s Canadian, in sustaining capital and capitalized stripping, I assume that would be too low for 2025, because there’s always some spending on development CapEx. So, if you kind of were to fully bake the capital spending for 2025, what would be a reasonable zip code? And then the higher level question is that from this side of the border, it appeared that the approval of the EVR sale was somewhat begrudging. And I wondered if you could maybe speak on the industry’s reaction and general appetite to invest in Canada and if this could have any impact on future interest in tech. Thank you very much for your perspective on that. Jonathan Price: Thanks, Lucas. You’ve managed to sneak in a couple of questions there. Look, on the first one, the C$1 billion to C$1.2 billion is very much within our expectations for sustaining capital and capitalized stripping for the years ahead. With the development work that we’re doing on the projects that we just discussed, of course, we are incurring spend on studies, on engineering and on permitting processes. This year, that’s amounting to around C$500 million in aggregate. And of course, projects when they’re in the advanced stages of feasibility study and engineering, it tends to be where the highest pre-execution spend occurs. So, while those projects remain at this stage, you could expect to see us spending at a similar rate through 2025 is probably the best way to articulate that at the moment. Look, in terms of the Canadian Government, we don’t see any changes there from our perspective. There’s nothing in there that prevents us from executing this organic project portfolio, which of course is the key element of our strategy for Teck. We continue to invest both within Canada and outside of Canada, as you see here through commitments in Chile and also the potential for major investments in Peru and Mexico. And I think the execution of that strategy and our focus on creating value for all shareholders remains at the front and center of what we do. So, we don’t see any immediate impacts of anything we’ve heard lately from the government here in Canada. Operator: The next question is from Jackie Przybylowski with BMO Capital Markets. Please go ahead. Jackie Przybylowski: Thanks very much. My first question, I think I’d like to follow up on Orest’s question about the geotechnical issues at QB2. I understand that you have just given us pretty rough guidance on the impact. I mean, first of all, just a comment. I would also like if you could follow up with me on those grade profiles for the second half as well. But my question is, do you expect these geotechnical issues, anything serious, faulting or anything that could impact mining operations going forward? Thanks. Jonathan Price: I’ll pass that back to Shehzad again. The high level answer is no, but I’ll let Shehzad provide a bit more color. Shehzad Bharmal: Jackie, this instability has been a known instability, so it didn’t come out of the blue. It just was a bit deeper than what we had planned. And as we are operating around that with blasting, we are taking extra precaution to make sure that we do buttress it right and reorient it for the longer term. So, really, normal operations, these things are fine. It’s early in the mine plan and if it was an advanced and mature mine, we would have other phases to be able to address this. These are not abnormal instabilities that we have in place. Jackie Przybylowski: I appreciate that. Thanks, Shehzad. And as a follow-up second question, maybe this one’s for Crystal. On the share buyback plan, I understand you’ve got two plans on the go right now. The C$500 million that was approved in January and then the new C$2.75 billion plan. Can you give us some color on when you expect the C$500 million buyback to be completed? Should we assume that’s completed in the third quarter and then the new buyback starts in the fourth quarter? And over which period do you expect to do that C$2.75 billion? Is that like a multiyear program? Thanks. Crystal Prystai: Thanks, Jackie. Welcome back. Nice to hear from you. Yeah. Good questions. I think just in relation to the buyback, we’ll be back obviously executing on the C$500 million. I’d expect us to close that in the third quarter, obviously, subject to valuation considerations, which are always what drives us when we’re considering our buyback approach. In regards to the C$2.75 billion, we’re targeting 12 months to 24 months to complete that. But again, it depends on valuation and market conditions. So, I think it’s probably sooner than the fourth quarter in terms of us getting into starting to buy on that. And then obviously we have to go through the ordinary course regulatory approval to renew our NCIB, which happens at the end of October. Jonathan Price: So, I think, Jackie, just to answer that, you don’t need to think of those really as two separate authorizations anymore. That is the total capital that we have committed to buying back our shares and we’ll undertake that on a continuous basis. Operator: The next question is from Liam Fitzpatrick with Deutsche Bank. Please go ahead. Liam Fitzpatrick: Good morning, everyone. First question is just on the independent review that’s been completed now at the Q or regarding the QB project. Can you just share some of the key findings from that and how that’s going to benefit project execution going forward? And do you think you’ve now got the right people in place across the organization to begin this next phase of growth that you’re now talking about? Jonathan Price: Yeah. Thanks very much for that, Liam. I’ll just focus on the second question. The answer is, yes, but we still will continue to build more depth and bench strength in the project team here. Of course, given the slate of activity we have ahead of us, we go to the world-class project managers. We have some of those today assigned to these projects, but we’ll need more of them to execute the growth strategy going forward. But we’re also building out other areas of the team that support those project managers. So, we have world-class people now assigned to the projects in the near-term, but we’ll continue to build that bench going forward. Talking of world-class people, I’m going to hand you on to our Head of Project, Karla Mills, who will talk a little bit about the results of the QB review and how we’re applying those in your area. Karla Mills: Sure. Thank you, Jonathan. I think it’s important to start with the fact that from the outset, we knew that QB2 was a complex and challenging project, especially given the altitude and scale of the project. Along with those factors, the project review has highlighted additional areas for improvement and learning, and we are taking them forward in our project execution. In a number of cases, it validated learnings we’d already identified and have already been actioning over the last several months. Perhaps to offer maybe a few examples, highlights from our findings. One is the need for increased geotechnical drilling. This impacted construction at the port, the tailings management facility and the pipeline. Also, being more conservative in our assumptions around things like labor productivity estimates and inflationary pressures, which of course, were exacerbated by COVID and supply chain schools when we became constrained. And of course, enhancing oversight from our Teck owners team when we switched to a time and materials execution basis. We’re taking a number of steps to ensure we are embedding all of the learnings and the best practices for our projects going forward. This includes what Jonathan’s already highlighted. We do continue to build out our project teams with additional capacity and expertise. Teck’s project team continues to grow, and we are, in fact, attracting more and more world-class talent that are really excited to work in and on our growth strategy. We’re also upgrading our project management system. This is to better identify trends and risks, to proactively analyze and interpret information, boost our efficiencies. This will lead to more informed and faster decisions. And we’re enhancing our project readiness and assurance practices in areas specifically around engineering design and capital cost estimates. I think collectively the improvement opportunities identified through this review will be baked into our project moving forward and contribute to strengthening execution as we advance our copper growth strategy. Liam Fitzpatrick: Okay. Thank you. That was -- thank you for the detail there. Just as a quick follow-up on the bottlenecking at QB, can you just remind us what additional permits you may need to get before you can progress with that? Jonathan Price: Yeah. Again, I’ll ask Shehzad just to talk to sort of the three phases we see going forward here and the associated permitting strategies that we’re deploying. Shehzad Bharmal: So, as Jonathan mentioned, we have the three phases of optimization of debottlenecking and then we will consider later after that a more robust expansion project. For the optimization, we do not expect to need any permits. That would be within our permitted ranges and we’re talking 5% to 15% throughput increase, which would include things like increasing redundancies to get better online times and some minor modifications of some equipment that might need a little bit more throughput capacity. When we come to the debottlenecking study, we will need to make some more meaningful modifications and some additional equipment and that is repowering conveyors and having bigger pumps as well to be able to handle higher capacities, whether it be of material flows or conveying systems. And this, of course, will be very low capital intensity because most of the major infrastructure, like desal, pipelines, transmission, would not need any increases. And for that, we will need a permit and we are developing that permit right now and expect to submit it before the end of the year. And then once we receive that permit, we would continue with making those changes and achieve the higher throughput rates, and that -- and for that, we’re looking at somewhere between 10% to 15% further increase. Operator: The next question is from Timna Tanners with Wolfe Research. Please go ahead. Timna Tanners: Hey. Good morning. Thanks for the detail. I wanted to clarify, please, on the guided US$3 billion to US$3.6 billion for copper growth. What exactly is in that? Is that San Nicolás and Zafranal [ph] and Highland Valley Extension? And does that already include the revisiting of the total capital cost you had told us you were going to conduct for? And then, I guess, along those same lines, when are we going to get updated costs, both on an operating basis and capital costs? Thanks. Jonathan Price: Yeah. Thanks, Timna. Essentially, that range, it does capture the projects that you mentioned. There’s some allowance in there for QB. Some of the work that Shehzad was just discussing as well. They are our best estimates, I would say, at the moment. And I don’t use estimates in the rigor of a project organization, but our best understanding of the forward capital costs associated with those projects in aggregate our attributable share, of course, taking account for the joint ventures that we have or partners that we have in these projects. Those capital costs will be finalized through the work we do in studies and engineering, of course, when we get to those definitive estimates. But we’ve done this with a view forward as to our best understanding today as to where those costs are likely to land. Timna Tanners: Okay. So, thank you for that. And then, I guess, follow up is when can we expect the further detail on the adjusted go-forward costs of production? And also, can you remind us what additional volumes and when you would expect as a result of those investments? Thanks again. Crystal Prystai: Yeah. Thanks, Timna. I think you’re just asking, you kind of mixed up maybe operating capital. So, maybe, can you just clarify whether you’re referring to an update on operating costs or capital costs? Timna Tanners: I was asking for all of the above. So, sorry for the confusion. Crystal Prystai: Oh! It’s okay. So, like as part of our normal process, we’ll provide our guidance update in January, like we’ve done in recent years and that will reflect our updated look at CapEx and OpEx for 2025, including a view on QBs, the cost once operations are ramped up at the end of the year. In regard to capital development, capital updates to what Jonathan noted already, where we’ve provided that range based on the best information we have available as of today. So, the timing of that will depend on when the engineering study work is completed. Operator: The next question is from Carlos De Alba with Morgan Stanley. Please go ahead. Carlos De Alba with Morgan Stanley, your line is open. Carlos De Alba: Hi. Hi. Hello. Good morning. Can you hear me now? Jonathan Price: Yes. Carlos De Alba: Great. Sorry, I was on mute. Yeah. Maybe a follow-up on the CapEx discussion. Do you have already a broad ballpark range of the CapEx per project? The four maybe that we have been discussing, QB expansion, Zafranal and Carmen [ph], and HVC Life Mine Extension? Jonathan Price: Well, I mean, the short answer is, yes, of course, that we use ranges associated with each of those projects to provide the range of aggregate guidance in terms of what we expect to spend over the years ahead. As said, we need to complete the work on studies, engineering and estimates, et cetera, to have more confidence in those ranges. But in aggregate, that is the best understanding of the capital profile for that. Carlos De Alba: Okay. Yeah. We’re looking forward to the breakdown when you can -- when you’re ready to provide that. And then just on San Nicolás, have you received any confirmation or indication that this project, if you decide to go ahead, would be able to be built and brought on, given the potential constitutional reform in the country that may ban open-pit mining? So, basically, the question is… Jonathan Price: Okay. Carlos De Alba: Yeah. Well, we’re not sure if the ban would be on new operating concessions or -- but those that already have exploration permit and are under development, in a way, would be okay? Jonathan Price: Yeah. Look, we acknowledge the uncertainty, Carlos, with respect to San Nicolás and that permit. Our experience to-date is that permit process continues to proceed as planned and we got over a significant milestone recently with respect to that process, so indications at that level are good. We’ll have to see how things evolve more broadly in terms of legislation, including changes in the judiciary, perhaps, in the country. So, there’s a few things at play there. But from what we can see on the ground today and our experience opposite the regulator, the data is positive. So, we continue to remain very engaged in that permitting process. We continue to work on closing out the studies and bottoming out the capital estimates associated with that and we’re hopeful we can bring that to a point where we achieve the permit and take it forward to sanction. Operator: The next question is from Bill Peterson with JPMorgan. Please go ahead. Bill Peterson: Hi. Good morning and thanks for taking the questions. I want to come back to QB2. So, on this access issue, I guess, can you provide a little bit extra color on the timeframe issue? Did this have any impact, I guess, quarter-to-date? And trying to think about the production rates through the remainder of the year, should we think of it actually taking a slight step down in the third quarter before, I guess, improving in the fourth quarter to what would appear to be, I think, you said earlier, you hope to be at full production, so around 25 kilotons. Just trying to get a sense for the trajectory here. Jonathan Price: Yeah. Just at a high level, we expect to continue to see the quarter-over-quarter improvement continue through this year and by the end of the year, we expect to be producing at full rates. But I’ll, again, add to Shehzad to give a little bit more detail on the underlying issues associated with the geotechnical problem with grade and with the transition rules. Shehzad Bharmal: Like I mentioned before, this was a known area of instability and it was late in the quarter when we understood the implications for filling a different access rather than just buttressing or reorienting the access and that would prevent access to these higher grade areas. And so, really, it’s an H2 issue mostly, and as Jonathan mentioned, it’s not to take a step down, it’s to continue the improvements that we’ve had in throughput, continue the throughput rates, continue to improve on grade and just compare to plan to have slightly lower grade. Bill Peterson: Okay. Thanks. Thanks for that. So, actually, changing the subject, on zinc, just trying to get a sense for what you’re seeing in the zinc markets, considering where TCRCs are, global smelter output, which appears to actually be contracting. And what are you assuming for supply-demand balances in the back half of the year and into next year? Jonathan Price: All right. Thanks. Thanks for that question, Bill. I’ll hand you over to Ian Anderson, our Chief Commercial Officer. Ian Anderson: Hi, Bill. Thank you for the question. So, what we’re seeing currently is that the zinc market is definitely in deficit. And the reason for that is, of course, you saw not only the mine shutdowns that occurred as a result of lower zinc pricing last year, but also some disruptions this year. There have been an initial start, for example, at Collahuasi. We’re expecting over the medium-term, a restart at Trail, for example. And of course, Ozernoye is also predictive, but really those don’t come on this year. And so, the reflection that you’re seeing in the very low TCs for zinc is as a result of that deficit. And just an interesting fact there, concentrate imports in China, for example, are down significantly this year and that is attributed with a lack of available feed. So, we are seeing, of course, support for pricing in the zinc market. We’re seeing conditions in finished metal really coming along and stable premiums there. And so, we do anticipate that it will remain in slight deficit for this year and are expecting the same thing for the first half of 2025 as well. Excellent question. Operator: And the last question we have time for today is from Brian MacArthur with Raymond James. Your line is open. Brian MacArthur: Thank you and thank you for taking my questions. My first question, just I appreciate all the guidance for EBITDA and the ongoing CapEx, but as I think about the jurisdictions you’re getting cash flow earnings from in the future, can you give any guidance for one, A, tax rates going forward, and B, I guess, cash tax rates as I try and figure out free cash flow, which is kind of the missing part of taxes in this equation? Jonathan Price: I’ll hand you over to Crystal. Crystal Prystai: Thanks, Brian, for the question. I think 2024 is going to be a bit of an anomalous year. We expect our overall effective tax rate on a continuing operations basis to be in that 41% to 43% range. That obviously includes the impact of the sale of the full business and the anatomy dividend. Beyond 2024, we still continue to think that 41% to 43% is a reasonable guideline where we’re profitable across all our business units and we have aggregate operating margins that are relatively large in comparison to corporate costs and finance costs. I think that, that doesn’t necessarily build in our growth projects and there’ll be some work that we have to do in that regard. But I think I would just encourage you to continue to use 41% to 43% and we can provide more guidance when we have it, and obviously, Fraser can provide more and team can provide more support offline on the modeling aspect. Brian MacArthur: Great. That’s very helpful. And maybe if I just ask one more and maybe it’s for Robin, obviously, you highlight the Coal business did pretty well this quarter at your runways with two big maintenance shutdowns. Can you maybe just go through what happened? And maybe a second question, are the operations now in the state that they’ll run at the 26 million tons a year? And I guess maybe a final question, I guess, with the Coal business being sold, what Robin’s plans are next? Jonathan Price: Yeah. Thanks, Brian. I’ll hand you over to Robin in a moment. We won’t give any forward-looking guidance for the Coal business, as you might expect. I’m just going to quickly make a comment on Robin. Robin will be retiring from Teck in the coming months. Robin’s been with us for 36 years, most recently as our President of Coal. He has quite literally delivered us truckloads of cash over many years through his role. And in addition to his leadership of the Coal business, he’s had a significant impact across all of Teck, particularly in respect of his safety leadership and the safety programs that he’s established here over many years. So we just want to recognize and thank Robin for his incredible contributions to the company over many, many years. And with that, Robin, I’ll hand it over to you to discuss the quarter. Robin Sheremeta: Thanks, Jonathan, and thanks for your question. I didn’t expect one this round. I think what I’d say about the quarter is the Coal business is operating as it was prepared to operate over many years and we had a strong quarter because all the operations combined are in extraordinarily good shape right now. So we’re seeing the best safety performance we’ve ever seen in history. We’ve got our water treatment plants are all performing well. All the plants ran really well through the quarter. And this is really business as usual from my perspective. So, I’m proud of the team that got us to the point that we are today and it’s up to the new owners now to take it forward. But the business is in exceptionally good shape and that was demonstrated in that quarter. Brian MacArthur: Great. Thanks very much, Jonathan. Jonathan Price: Thank you, Robin. Brian MacArthur: Good luck, Robin. Robin Sheremeta: Thank you. Jonathan Price: Thank you, Brian, and thank you to everyone for joining us today. And thank you for all the questions. Just a note, we are planning to hold the Strategy Day in Vancouver on November the 5th, followed by a site visit to Highland Valley the following day. So, please watch out for a save-the-date notice, which we expect to send out shortly. As ever, please reach out to Fraser and the IR team if you have any further questions. And with that, please enjoy the rest of your day. Operator: This brings to a close today’s conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.

Operator: Ladies and gentlemen, thank you for standing by. Welcome to Teck's First Quarter 2024 Earnings Release Conference Call. At this time all participants are in listen only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] This conference call is being recorded on Thursday, April 25, 2024. I would now like to turn the conference over to Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analysis. Please go ahead. Fraser Phillips: Thanks, Kaylene. Good morning, everyone. Thank you for joining us for Teck's first quarter 2020 conference call. Please note, today's call contains forward-looking statements. Various risks and uncertainties may cause actual results to vary. Teck does not assume the obligation to update any forward-looking statements. Please refer to slide 2 for the assumptions underlying our forward-looking statements. In addition, we will reference various non-GAAP measures throughout this call. Explanations and reconciliations regarding these measures can be found in our MD&A and the latest press release on our website. Jonathan Price, our CEO, will begin today's call with highlights from our first quarter results. Crystal Prystai, our CFO, will follow with additional color on the quarter. Price will then conclude today's session with an update on our key base metals markets and our progress on copper growth in the quarter, followed by a Q&A session. With that, I'll turn the call over to Jonathan. Jonathan Price: Thank you, Fraser, and good morning, everyone. Starting on slide 4, which highlights from a strong first quarter across our business. We completed all major construction at QB, including the ship loader and molybdenum plant. Our completed port facility, we marked the first shipments of concentrate. And I was acutely last week to see the second ship of being loaded and departing on time. It was a beautiful site. We also continue to advance the ramp-up of the molybdenum plant. In January, we closed the minority sale of our steelmaking coal business or value resources to Nippon Steel Corporation and POSCO and received US$1.3 billion in cash from NSC. Regulatory approvals for the full sale of the Glencore are progressing as anticipated closing expected no later than the third quarter of this year. Q1 was a strong quarter from both an operational and a financial perspective. The ramp-up of QB is reflected in our steadily increasing copper quarterly production and all our previously disclosed annual guidance is unchanged. We also continue to focus on sustainability leadership, including improved safety performance. Our high potential incident frequency rate was lower than the same period last year at 0.06. Together with global industry leaders, we launched the North Pacific Green Coronal Consortium, which will work together to de-carbonize the value chain for commodities between North America and Asia. Activities will be focused on pathways to optimize energy efficiency with a specific goal of advancing projects and infrastructure required to achieve meaningful emissions reductions at the near-term, and we released our 23rd annual sustainability report, which outlines our performance in 2023 in areas such as decarbonization, diversity and working towards a nature positive future. Looking now at the financial highlights from our first quarter on Slide 5. We reported adjusted EBITDA of $1.7 billion in the quarter compared to $2 billion a year ago with lower copper and zinc prices and higher unit cost in steelmaking coal and at our QB operation, partly offset by higher copper sales volumes and higher realized steelmaking coal prices compared to the same period last year. We continue to return cash to shareholders in the quarter with $80 million in share buybacks executed under the $500 million return authorized by the Board following receipt of the NSC proceeds. We also paid $65 million in quarterly base dividends. Turning to QB on Slide 6. As I mentioned earlier, we completed all outstanding major construction in the first quarter. At the port, we achieved construction completion in Q1, consistent with our guidance and successfully loaded our first vessel of QB concentrate using the ship loader. The mobilization of the construction workforce is substantially advanced, and the operational ramp-up is continuing. We are on track to complete ramp-up with the molybdenum plant in the second quarter. Our QB2 project capital cost guidance of US$8.6 billion to US$8.8 billion is unchanged. We produced higher QB copper and concentrate quarter-over-quarter at 43,300 tonnes, and we continue to expect progressively stronger production in each quarter throughout the rest of the year. Our full year copper and concentrate guidance for QB is unchanged at 230,000 to 275,000 tonnes. QB unit costs are expected to remain elevated this year, particularly in the first half, consistent with our guidance. This is driven by the cost of alternative logistics, limited molybdenum production in the first half of the year, continued ramp-up and inflationary pressures. Our full year guidance for QB net cash unit cost is unchanged at US$195 to US$225 per family. With that, I'll now turn it over to Crystal for some additional color on the quarter. Crystal Prystai: Thanks, Jonathan. Good morning, everyone. I'm going to start on Slide 8 with our financial performance in the first quarter. There are a number of significant accounting and presentation items, impacting our results compared to the same period last year. Following the minority sale of our steelmaking coal business in January, our financial statements now reflect the 23% minority interest in EVR by NSC and POSCO. With our controlling share holding, we continue to consolidate 100% of EVR's production and sales volumes revenue, gross profit and EBITDA. Our profit attributable to shareholders is now based on our reduced 77% ownership of EVR, with 23% of EVR profit attributable to non-controlling interest. This has significantly reduced our profit attributable to shareholders and related EPS compared to the same period last year. It is important to note that despite the non-controlling interest attribution of profit for EVR, we continue to receive 100% of the cash flows generated by EVR through closing of the transaction with Glencore. Our finance expense and depreciation and amortization expense have both increased significantly compared to the same period last year as construction is complete and ramp-up continues at QB. We are now depreciating most of the QB assets, and we have stopped capitalizing interest on the QB2 project as anticipated. Our adjusted EBITDA declined in the quarter compared to the same period last year. This was primarily driven by higher operating costs at EVR and at QB operations, reflecting elevated costs at QB during ramp-up. It was also driven by negative pricing adjustments, particularly for steelmaking coal. These items were partly offset by higher copper sales volumes and higher realized steelmaking coal prices compared to the same period last year. Now turning to each of our business units in greater detail and starting with copper on Slide 9. Our relaxed copper price was US$386 per pound, down 5% compared to the same period last year. We had strong quarterly copper production of 99,000 tonnes, an increase of 74% from the same period last year. This was driven by the ramp-up of QB operations, adding 43,300 tonnes of copper and concentrate production and higher copper production from Antamina due to increased copper-only ore being treated as expected in the mine plan. Our cost of sales was higher year-over-year, primarily due to the inclusion of QB operations, is also the first full quarter of depreciation of QB's operating assets, as I previously noted, with $125 million recorded in Q1. Excluding QB, our net cash unit costs were US$1.92 per pound or US$0.09 per pound higher than the same period last year, due to reduced zinc byproduct revenue at Antamina with significantly lower zinc prices. We were pleased that Antamina received approval of the MIA for its line extension from 2028 to 2036 in the quarter. Looking ahead, as Jonathan said, QB's guidance is unchanged, and we continue to expect QB production to increase each quarter through 2024. Our copper production guidance of 465,000 to 540,000 tonnes at our full year non-cat unit cost guidance of US$1.85 to US$2.25 per pound are also unchanged. Turning now to our zinc business on Slide 10. In Q1, zinc and concentrate production increased by 15% and lead in concentrate production increased by 10%, both of which were driven by higher mill throughput. At Red Dog, sales of 84,600 tonnes were within our guidance range. Net cash unit costs were lower than last year as a result of byproduct credits. At Trail operations, production of refined zinc and refined lead both improved, although both quarters were impacted by severe weather events. Our gross profit before depreciation and amortization decreased 27%, primarily due to significantly lower zinc prices and lower contracted zinc premiums on refined zinc trail operations and 2023 treatment charges applied through March 31. This was partially offset by lower nano royalties, which are tied to Red Dog profitability. Looking forward, at Red Dog, we expect thinking concentrate sales of 50,000 to 60,000 tonnes in the second quarter, reflecting normal seasonality of sales. Our full year in commentate production guidance of 565,000 to 630,000 tonnes and our full year net cash unit cost guidance of US$0.55 to US$0.65 per pound are both unchanged. At Trail operations, our refined zinc production guidance is unchanged at 275,000 to 290,000 tonnes. We have begun replacing the KIVCET boiler at trail, which will impact the let circuit in the second quarter but is expected to have minimal impact on our zinc circuit. Turning now to steelmaking coal on Slide 11. Despite an extreme freezing event in January that affected both sales and production, we generated $1.4 billion in gross profit before depreciation and amortization. The 8% decline from the same period last year was primarily due to higher unit operating costs and lower sales volumes, partially offset by higher steelmaking tool prices. Sales volumes of 5.9 million tonnes were within our guidance range and production recovered strongly later in the quarter. Adjusted site cash cost of sales per tonne of $112 was higher than last year due to higher repair parts and made it spent. Through the ongoing shortage of skilled trade labor, we also had increased reliance on contractors. In addition, weather related productivity impacts and less favorable mining drivers were factors. Transportation costs were down $2 per tonne from the same period last year, largely due to reduced demurrage charges. And we're pleased to achieve record throughput at the saturated rock fill at our LV operations in February. As our 77.5 million liters per day of constructed water treatment capacity continues to ramp up, we are on track to achieve one of the primary objectives of the Elk Valley Water Quality Plan, which is to stabilize and reduce the selenium trend in the Elk Valley. Looking forward, second quarter steelmaking coal sales are expected to be 6 million to 6.4 million tonnes, reflecting planned maintenance shutdowns at Elkview and Greenhills. Our full year production guidance of 24 million to 26 million tonnes is unchanged. And despite elevated adjusted site cash cost of sales in the first quarter, our full year guidance of $95 to $110 per tonne is also unchanged. Turning now to slide 12. Our capital allocation framework continues to guide our approach and our priority is to have a disciplined approach to the deployment of capital. Overall, we aim to balance our growth with cash return to shareholders while maintaining a strong balance sheet through the cycle. Looking at the considerations for the use of proceeds from the sale of EVR on slide 13. In total, we are expecting to receive US$8.6 billion in cash proceeds, including the US$1.3 billion already received from NSC. Our capital allocation framework guided the Board in its decision on the use of proceeds from the minority sale of our steelmaking cool business. And as we've already noted, up to $500 million of the NSC proceeds or 30% are to be returned to shareholders via a share buyback. Our capital allocation framework will also guide the Board's decision on the remainder of the proceeds. We aim to maintain investment-grade credit metrics through the cycle or getting a net debt to adjusted EBITDA ratio of one-times. We plan to reduce our gross debt and maintain or improve our credit metrics. We will also retain additional cash on our balance sheet to fund our near-term cover growth opportunities and generate strong returns. We continue to expect to pay transaction related taxes of approximately US$750 million in early 2025. And finally, we continue to expect a significant return to shareholders in addition to the $500 million buyback previously authorized by the board in relation to the NSC proceeds. The Board will determine the amount for and timing of these returns. Overall, the significant cash proceeds from this transaction will ensure we are well-capitalized to unlock the full potential of our base metals business, while maintaining a strong balance sheet and delivering significant cash returns to our shareholders. Turning now to slide 14. We are in a strong financial position with $7.1 billion in liquidity, including $1.6 billion in cash as of April 24. We ended the quarter with a net debt to adjusted EBITDA ratio of 1.1 times, and we remain focused on maintaining our investment-grade credit metrics, as I noted. As mentioned earlier, the board authorized a share buyback of up to $500 million, of which $80 million has already been executed. We also paid $65 million in quarterly base dividends in March, bringing our total cash return to shareholders to $145 million in the first quarter. This extends our track record of strong cash return to shareholders with approximately $4 million returns since 2019. With that, I'll turn it back over to Jonathan. Jonathan Price: Thanks, Crystal. Like some of you had attended Cesco in Santiago last week, and it's clear that we are at a turning point. It's an exciting time in the copper market, especially given that copper prices have run up significantly since Q1 and to about $4.40 per pound a day. We'll response turning from debating where the demand for copper would really rise so quickly to wondering where and how we're going to find more. Given that, I'll provide an update on our key base metals markets. So starting with the copper market on slide 16. Concentrate tightness has continued into the first quarter with global mine production over 2 million tonnes below the original guidance for 2023 and almost 1 million tonnes lower year-to-date based on last year's projections for 2024. This comes at a time of increased investment in smelting capacity in Asia and India in preparation for stronger demand from the energy transition. Older capacity of 3.7 million tonnes higher than three years ago. Spot TCRCs have fallen 100% from 88 to 00 in less than four months, which is now forcing cuts to refine production. Longer term, we've seen the lack of investment in mining over the past decade as potentially being a constraint for the energy transition. The industry will need to invest around $120 billion in the next five years. The energy transition could add 6.5 million to 7 million tonnes to demand in the next five years, including recognition of new demand from AI and data centers. Importantly, an additional 4.5 million to 5 million tonnes of copper demand growth will flow from green expansions and refurbishment, urbanization and a growing global middle class. Moving on to the zinc market on slide 17. Zinc prices have been under pressure for most of 2023 and into Q1 2024, with prices falling a further 2% over Q4 2023. These lower prices have forced the closure of around 500,000 tonnes of mine production, which will continue through 2024. With an additional 120,000 to 150,000 tonnes lost due to fires, floods and strikes. We expect that sun line production will return in 2024, but that net mine production will decrease to 12.6 million tonnes, which is about 1 million tonnes lower than projected last year. Similar to copper, 5% is zinc concentrate market has put TCs down from $280 per DMT to a historic level of $30 to $50 per DMT, which is now impacting refined metal production. Interim metal demand is improving in North America and Europe from a low best and in Asia due to solid automotive production and strong entity transition infrastructure spending. While we expect mine production to return as prices improve, fundamental market tightness is expected to remain until 2027. So turning to our progress in copper growth on slide 18. We continue to invest in our industry-leading copper growth portfolio in the quarter, reflecting our strategy to balance growth and return of capital to shareholders. At Highland Valley, we continue to respond to information requests from regulators on the Permian application for the mine-life extension. Gauge bridge is ongoing with indigenous governments and organizations and key communities of interest. We expect to progress engineering and design, project execution planning, and construction planning for substantial completion in Q1 of 2025. The team at San Nicolás submitted the MIAR permit application in January, and they continue to engage government and stakeholders in support of permit review. They also continue to advance feasibility study work with plans to initiate detailed engineering in the first half of 2025. In Zafranal, we continue to update capital and operating cost estimates from the 2020 feasibility study and we advanced our construction permits. Project is expected to enter detailed engineering in the second half of this year. Now we advanced towards defining debottlenecking opportunities and low capital expansions at QB. We expect to finalize project scope and advanced permitting by the end of 2024. While we do not expect to sanction any projects this year, we remain focused on advancing near-term projects for potential sanctioning in 2025. Importantly, all projects will be required to deliver an attractive risk-adjusted return and will compete the capital in line with Teck's capital allocation framework. Reviewing our priorities on Slide 19. We set up several key priorities for 2024 to ensure we can continue to demonstrate our focus on value creation. Completion of the full sale of our steelmaking coal business where Glencore will acquire a 77% controlling interest in EVR and become the operator of the Elk Valley steelmaking coal mines is a key priority this year. As I mentioned, regulatory approvals continue to progress, closing is expected no later than the third quarter. We are also driving safe operational performance across our portfolio. We have embedded known risks into our guidance to ensure we build confidence in our ability to deliver on our market commitments. At QB, we have now completed all major construction, including the ship loader and the molybdenum plant. We are working hard to achieve consistent operating performance at design capacity. At the same time, we continue to advance the development projects in our industry-leading copper growth pipeline, which are foundational to our future growth. And we will advance that growth in a disciplined way by following our capital allocation framework to ensure that our capital decisions are value maximizing for shareholders. In conclusion, on Slide 20, our focus remains on value creation. Our priorities help us to do that, and I'm excited for the opportunities ahead of us. We are committed to responsibly creating long-term value for our shareholders and stakeholders. We are in a unique position to deliver significant value through our strategy, centered on copper growth to capitalize on strong demand in the transition to a low carbon economy. We have current production from a premium portfolio of long-life, high-quality assets in stable, well-understood jurisdictions. In the near-term, we are adding to that production through the ramp-up of QB. Longer term, we seek to unlock significant value from our copper growth portfolio. And we are pursuing that value-driven growth by employing a rigorous investment framework and continuing to balance growth with cash returns to our shareholders. Thank you. Operator, please open the line for questions. Operator: Certainly. [Operator Instructions] Our first question is from Orest Wowkodaw with Scotiabank. Please go ahead. Orest Wowkodaw: Hi, good morning. With the BHP bid for – reported bid for Anglo American, I'm curious whether Teck seen any opportunities out there to add producing copper assets to the portfolio, just given your balance sheet transformation post the coal sale that's going to close in Q3. I certainly think producing assets are a lot easier to add than building as we saw with QB2. But I'm curious, how you see the landscape? Jonathan Price: Yes, Orest. Thanks for that question. Look, I think, firstly, I'd say that the proposed or potential takeover here of Anglo and volume BHP just to reinforce the attractiveness of the long-term fundamentals for the copper market. And long-term fundamentals around, which we have centered our strategy for the years ahead. For us, this announcement, this news doesn't change anything. We remain very focused on completing the transaction over EVR with Glencore, and deploying those proceeds to strengthen the balance sheet to ensure long-term resilience of the company coupled with investing in the high-quality projects that we have in our portfolio and making a significant return of capital to shareholders. So no change, Orest. We're very focused on delivering that copper growth, think the market fundamentals are compelling, and we will continue to focus on those things that we can control to deliver value for our shareholders. Orest Wowkodaw: Thank you. As a quick follow-up, can you give us an update on QB2? From the [indiscernible] data, it looked like the monthly production was pretty flat in January, February, March. Can you maybe just speak to what the current challenges are bottlenecks in terms of breaking through from a production standpoint? Jonathan Price: Yes. I'll just make some high-level comments and then hand over to Shehzad Bharmal. Look, where we expect it to be at this point in time, our guidance for this year is unchanged. We expect to increase copper production quarter-over-quarter as the year unfolds. And with that, I'll let Shehzad give you some further color on where we're up to. Shehzad Bharmal: Thanks, Jonathan. Orest, we are addressing the challenges that we have encountered in the first three months. In April, we had a planned shutdown for liner changes and several modifications that we had identified to improve reliability and stability. That shutdown was executed on time very safely. And since we have started up and made those changes, we're seeing some very encouraging results. So we fully expect to be within guidance at the end of the year. Operator: The next question is from Liam Fitzpatrick with Deutsche Bank. Please go ahead. Liam Fitzpatrick: Hi, Jonathan, I just wanted to ask a question about a few areas that you mentioned, I think, late last year and earlier this year, which was about conducting a full review of the QB2 project, just to get learnings from that before you embark on your next phase of growth potentially from next year and also about bringing the right expertise and people on board to ensure you've got the right sort of capabilities. That's the first question, can you just give us an update on where those things stand? Jonathan Price: Yeah. Thanks for the question, Liam. We do want to extract as many learnings as we can from the construction of QB2, that's going to be critical as we set ourselves up for future growth here. That review is ongoing. As we've referenced before, we are using external experts to support us with that and we expect to complete that review in the months ahead. Meanwhile, the project team under the Karla Mills continues to build capacity and capability, including working on systems and processes that will be required to help us deliver those projects reliably in the future in terms of meeting the schedule and the capital budgets that we set out. The findings from the QB review, of course, will be channeled into that team and will be reflected in the continued building of capacity and capability within that area of our business. So we're very focused on that. As I said, we won't be sanctioning any projects until 2025. And, of course, we'll only sanction those projects subject both to permits, but also to favorable economics and returns. But we are working hard now to ensure that we set ourselves up for success in the years ahead. Liam Fitzpatrick: Thank you. And as my one follow-up, I think it was partly addressed in the previous question. But just to be clear on QB2, could you maybe outline where the current kind of bottleneck or constraint is? And is there a point in the year perhaps towards -- around the middle, where there should be more of a step-up in terms of the production rates? Jonathan Price: I think as I said, we expect to see a step up quarter-over-quarter as we work our way through the year. There's not one particular bottleneck here that we would point to. It's just about establishing stability and consistency of operations day and day out. Operator: The next question is from Lucas Pipes with B. Riley Securities. Please go ahead. Nick Giles: Yeah. Thank you, operator. Good morning, everyone. This is Nick Giles on for Lucas. I wanted to ask about the remaining net proceeds of DVR. There's the US$6.9 billion from Glencore, $750 million tax payable in 2025. First one to confirm that that includes the Glencore proceeds. And can you remind us the timing of the $400 million from EVR cash flows related to NSC, and lastly, overall closing costs? Thank you very much. Jonathan Price: Sure. I'll hand you over to Crystal for an overview of our intended use of those proceeds and then to answer some of those more detailed questions. Crystal Prystai: Hi, Nick, thanks for the question. I think we've been pretty consistent with our messaging around our intended use of the proceeds that will come in from Glencore being very consistent with our capital allocation and we intend to reduce our debt levels and get to achieving a net debt to adjusted EBITDA of that of one time through the cycle. And obviously, we'll be in a net cash position on closing and CDOT trending down as we deploy cash towards our growth projects. So secondly, having cash on the balance sheet earmarked for those near-term goals projects being HBC mine life extension, San Nicolas and Zafranal; and then thirdly, returning a significant amount to shareholders. Obviously, the Board authorized the $500 million return to shareholders with the NSC proceeds received in January. And I think that's a reasonable proxy to think about as we go forward. And then I think just lastly, in response to your question about the $400 million remaining proceeds from NSC those proceeds come in through receive a 100% of the steelmaking coal cash flows through closing of the Glencore transaction. So you won't see $400 million coming in one payment on closing of that transaction, but rather you're seeing it come in now as we go through and achieve sort of receive that 100% of cash flows through closing. Lucas Pipes: Got it. Got it. Crystal, I really appreciate all that color. Maybe just one follow-up on that. I believe the prior estimate was cash flows of around US$1 billion. Has that changed at all, especially in the face of kind of weaker met coal prices? Crystal Prystai: Yes. I think that's a fair point. I think there is -- you always have to consider the timing of sales and the operating costs as well as the coal prices. So that number will be dynamic as we make our way through. But you've seen, obviously, the gross profit generated from the coal business in the first quarter was very strong at CAD 1.4 billion. So I think we're making very good progress, but that number is -- won't be a fixed number, and it depends on those factors. Operator: The next question is from Carlos De Alba with Morgan Stanley. Please go ahead. Carlos De Alba: Thanks. Good morning everyone. On QB2 I think I read in the release that the operations still had a negative gross profit, but I want to see in terms of EBITDA, if the company -- if the operation already broke even. And if not, if you can provide any color as to how do you see that, obviously, at a spot, say, assuming the spot copper prices, how do you see the path for positive EBITDA in the operation? Crystal Prystai: Thanks. Carlos, I think that in answer to your question, we don't disclose a separate number for QB EBITDA. But I think just in relation to where production levels where costs were in the quarter, we were in a loss position from an EBITDA perspective. As we ramp up production through this year, we can expect that, that should improve. If we look at the run rate projections we provided when we did the Investor Day at QB, using a range of 350 [ph] to 450 [ph] or copper price we got to CAD 1.7 billion to CAD 2.6 billion of EBITDA generation from QB once production rates were up at steady state. Carlos De Alba: All right, great. Thank you. And then the follow-up is on the coal operation. You faced some difficulties in the quarter and your adjusted site cash cost of sales were elevated basically on some equipment failures. You retain your guidance for the year, which obviously assumes or suggest that things are going to improve. But I want to see if there is any color as to how things came out in March and April, just to get a sense of the cadence on that improvement? Jonathan Price : Yes. Thanks, Carlos. So I'll hand you to Robin Sheremeta, the President of the Coal business. Robin Sheremeta: Yes, Carlos. Yes, a few issues through Q1, only exasperated by the cold snap we had. We did have a number of equipment failures that occurred, nothing major, pretty much a temporary resolve through that period. So with regards to March and April, as we go into those months, we've actually been performing quite strong. So our availabilities are back up to equipments back up. We had to get through that period of cold and then recovery from that. So I think things are well on track and review our forecast this morning, and we are well within guidance here through the rest of the year. So these are looking much better. Operator: The next question is from Bill Peterson with JPMorgan. Please go ahead. Bill Peterson: Hi. Good morning, and thanks for taking the questions. A little bit of a follow-on to earlier question about use of proceeds for some of your growth projects. I guess, if you look at it today, how would you stack rank between San Nicolas, Zafranal, the QBS expansion. And just for the even longer-term assets, given where we see positive trends in copper, any opportunity to pull these forward or even maybe conversely, with the interest in M&A broadly, especially as we see today, would there even be interest to sell some of these assets that you may have. Jonathan Price: Yeah, thanks for that question, Bill. Just picking up with some of the near-term projects here, we very much manage them as a portfolio, of course, they all have different risk and return characteristics. HBC being a brownfield and a relatively simple project here in British Columbia, Canada is certainly at the lower risk end of that portfolio. San Nicolas in Mexico, 50-50 JV with Agnico Eagle, a relatively simple greenfield project in terms of the scope with respect to us needing to add very little ancillary infrastructure to that as we can tap into available roads, power, port facilities, et cetera. And then Zafranal in Peru, a little more complex than -- than San Nicolas. But again, nothing like what we undertaken at QB2. So a portfolio, we think of both brownfield and greenfield projects, very manageable. One of those executed under a joint venture with go, and we will progress all of those to complete studies, complete engineering, obtained permits. So it will enable us to make decisions on sanctions always with a primary view on optimizing shareholder value through the decisions that we take there. To your question on the rest of the portfolio, of course, we always evaluate the long-term value of these options to us. And how we maximize value to shareholders, whether that's through the progression and de-risking of those projects, whether ultimately through the development of those projects or whether there are other alternatives for those resources and projects, as you alluded to with respect to capitalizing on strength in the copper market. So again, a portfolio approach to what we have here, the advantage we have, of course, is a fairly significant suite of options across different jurisdictions, which does give us choices, and we'll make those choices very thoughtfully with a focus on creating volume. Bill Peterson: Thanks for that, Jonathan. I want to ask a lesser discussed segment of your zinc market. You discussed your views a little bit on the supply and demand. Zinc recently just hit a 52-week high on the LME spot, albeit well off 2022 levels. You discussed some of the supply issues. But I guess, against the context of what you put in your slides, where you see a slight surplus over the next few years, how should we think about the supply-demand trends within zinc and expectations around the direction of travel in terms of pricing? Jonathan Price: Yeah, always happy to answer questions on zinc. It is one of our favorite commodities. So let me hand you over to Ian Anderson, our Chief Commercial Officer. Ian Anderson: Thank you very much for the question. As Jonathan has said, in terms of supply, we have seen mine production down over the course of this year. That, of course, is faced with a period of low pricing that we've seen. And as a result, we wouldn't expect that all of those mines would come on during the course of 2024 or 2025. So we are expecting the market to be in deficit. Chinese concentrate imports last year were up about 14%, while at the same time, as we said, mine production down. So Chinese smelters bought quite aggressively at the end of last year. That then contributed to the low TCRCs that we're seeing. And I would describe the market as in tightness right now and that's reflections. So optimistic about that, though, again, very tight supply and balance and depends both on smelters and their condition and similarly mine production. Operator: The next question is from Brian MacArthur with Raymond James. Please go ahead. Brian MacArthur: Good morning and thanks for taking my question. It again goes back to the coal cash flows. Can you maybe just talk a little bit about your stripping over the next few quarters? Because again, you give annual guidance, but if this closes in Q3, you obviously won't get annual numbers. But in the first quarter, your capitalized stripping was like at a run rate well above the high end of your guidance for the year. And conversely, your capital spend is at the low end. So as we're trying to figure out the cash flows available to you, this should close before year-end. Is it all more weighted on the capital and the capitalized stripping? Is it heavily weighted to Q1, Q2? And therefore, it's been depressed the cash relative to an annual number, or can you just talk a little bit about how that goes throughout the year? Jonathan Price: The highest level, Brian, I would say that don't assume any major differences quarter-on-quarter here for the way that the business is operating. We expect this to be fairly consistent. But I suggest you get on with Fraser post-call, and he can break you through that in a bit more detail. Brian MacArthur: Okay. Well, maybe just ask a bigger, higher question, though, there's nothing you see then that really changes that original estimate of US$1 billion cash flow over the time period from when you originally announced the deal in November for the 12 months. That's still good in numbers anything else other than maybe prices were higher. Is that a fair comment? Jonathan Price: Well, as Crystal said, prices will be a big variable in that. We've seen pressure in the unit's operating costs, at least in the first quarter not this year. And of course, ultimately, the timing of close of the transaction will be a big determinant as to what quantum of cash flow is flowing to tech ultimately there. So there are a few moving pieces there. But from an underlying operational perspective, including the key mining drivers here, nothing significantly different from what we assumed in our plans. Brian MacArthur: Great. Thanks, Jonathan. That’s all I have got here. Thank you. Jonathan Price: Thanks, Brian. Operator: The next question is from Dalton Baretto with Canaccord Genuity. Please go ahead. Dalton Baretto: Thanks. Good morning, everybody. Most of my questions have been answered. But Jonathan, I just want to circle back to M&A again. Just for a quick second. I just wanted to get your thoughts on -- I mean, you've allocated most of your proceeds from the Glencore sale to your growth pipeline. But I want to get your thought on the buy versus build argument just given valuations in the market today. Thank you. Jonathan Price: I mean, just to sort of clarify on the allocation of those proceeds, Dalton, we're allocating a fair bit of that to debt reduction and we will allocate a significant portion of that to returning cash to shareholders. You're right in that the balance then of those proceeds, we will be using to invest in organic growth. Of course, we look at the -- like everybody, you have to look at the buy versus build dynamics in the market. We think, in particular, with the projects we have ahead of us here which are smaller in scope and complexity that their capital intensities will be competitive and are likely to be more competitive than the acquisition of assets through M&A and again, which you can assess why $1 per tonne of production basis. So, that's the reason that we're pursuing the strategy we are because of the quality of the projects we have in the portfolio, the capital intensity that they can offer and therefore, the returns that will be available for value creation. Dalton Baretto: Great. Thank you. Operator: I will now hand the call back over to Jonathan Price for closing remarks. Jonathan Price: Yes, thank you. And thanks everyone for joining us today. Just to reiterate, we are operating well right now, and we've maintained guidance across all areas of the business. We're very happy to have QB construction behind us and the ramp-up of that will bus operation is proceeding to plan. We are focused on the completion of the EVR sale and the thoughtful allocation of proceeds with a focus on creating value for our shareholders. And we believe we have the right portfolio, the right people, and the right opportunities to create significant long-term sustainable value for shareholders. And then any further questions, please reach out to Fraser or the IR team, and have a great day. Operator: This brings to a close today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.

Operator: Ladies and gentlemen, thank you for standing by. Welcome to Teck's Fourth Quarter 2023 Earnings Release Conference Call. At this time all participants are in listen only mode. Later we will conduct a question-and-answer session. [Operator Instructions] This conference call is being recorded on Thursday, February 22nd, 2024. I would now like to turn the conference call over to Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analysis. Please go ahead. Fraser Phillips: Thanks Ariel. Good morning everyone and thank you for joining us for Teck's fourth quarter 2023 conference call. Please note, today's call contains forward-looking statements. Various risks and uncertainties may cause actual results to vary. Teck does not assume the obligation to update any forward-looking statements. Please refer to Slide 2 of the assumptions underlying our forward-looking statements. In addition, we will reference various non-GAAP measures throughout this call. explanations and reconciliations regarding these measures can be found in our MD&A in the latest press release on our website. Jonathan Price, our CEO, will begin today's call with highlights from our fourth quarter and full year results. Crystal Prystai, our CFO, will follow additional color on the quarter. Jonathan will then conclude today's session with a brief update on our key priorities and proper growth strategy, which will be followed by a Q&A session. With that, I will turn the call over to Jonathan. Jonathan Price: Thank you, Fraser and good morning everyone. So, starting on Slide 4. We had a strong fourth quarter performance across our business. We advanced the ramp-up of our QB operation, resulting in Teck's highest ever quarterly copper production. Adjusted EBITDA of $1.7 billion in Q4 and $6.4 million for the year reflects robust prices for steelmaking coal and copper as well as high-end steelmaking coal sale volumes. Over the course of the year, strong profitability allowed us to return a total of $765 million to shareholders by paying $550 million in dividends and completing $250 million in share buybacks and while continuing to strengthen our balance sheet through the repayment of $294 million of the QB2 project finance facility. In addition, the Board has approved the payment of our quarterly base dividend of $0.125 per share on March 28 and following the receipt of $1.3 billion in proceeds on closing of the minority sales stake in our steelmaking coal business to Nippon Steel in January, the Board has authorized up to a $500 million share buyback. This extends our track record of strong cash returns to shareholders with nearly $4 billion returned through the last five years. Now, turning to our 2023 highlights on Slide 5. 2023 was a transformational year for Teck as we continue to advance each of the four pillars in creation strategy. In addition to the strong EBITDA we delivered, we reported higher copper production and sales than the previous year, driven by the addition of QB operations. We also produced 23.7 million tonnes of steelmaking coal, above guidance and higher than the previous year. As we progress the full sale of the steelmaking coal business, we were pleased to announce the closing of the sale of our minority interest in EBR and Nippon Steel and POSCO on January 3rd. We progressed the ramp-up of our QB operations and advance to part the value for our industry-leading copper growth pipeline through joint partnerships with San Nicolás and NewRange Copper Nickel and the receipt of regulatory approval for Zafranal. As mentioned earlier, we returned significant cash to shareholders in 2023, paying $515 million in dividends as well as completing the $250 million share buyback, acting opportunistically to utilize available free cash flow. Importantly, we have maintained a strong financial position with $7.9 billion of liquidity, including $2.5 billion in cash as of February 21st. We continue to strive for sustainability leadership and make steady progress against our sustainability goals. Our reported high potential incident frequency for the full year 2023 remained low at a rate of 0.14. We've made a significant move in modernizing our governance structure by introducing the sunset clause for the dual-class share structure. We're proud that all Teck-operated base metals operations have been awarded to Copper Mark or to Zinc Mark, and we've been named to the S&P Dow Jones Sustainability Index for the 14th consecutive year. So, turning to QB on Slide 6. We remain focused on achieving reliable and consistent operations at QB. However, production was lower than planned in the fourth quarter. Routine ramp-up activities continued along with planned maintenance shutdowns through the first quarter and we have had multiple periods of operating at or above design throughput capacity. Throughout 2024, we expect to see progressively stronger production from QB and expect full year copper in concentrate production to be between 230,000 and 275,000 tonnes. On the construction side, by the end of 2023, the molybdenum plant was substantially complete and commissioning is currently well underway. All in-water works at the ports have been successfully concluded, materially de-risking our remaining construction. We are on track to finalize the construction of the offshore facilities at the port by the end of the first quarter, and ramp-up of the moly plant is expected to be completed by the end of the second quarter. As we look ahead, our QB2 project capital guidance of $8.6 billion to $8.8 billion remains in place. Our guidance for QB net cash costs is $1.95 to $2.25 per pound in 2024. QB unit costs are expected to remain elevated this year, particularly in the first half, and this is driven by the cost of alternative logistics, no molybdenum production in the first quarter as the plant is being commissioned, continued ramp-up and inflationary pressures, including increased Chilean energy costs. We will provide additional unit cost guidance when QB achieve steady-state operational performance. And I will now hand it over to Crystal for additional color on the quarter. Crystal Prystai: Thanks Jonathan. Good morning everyone joining us today on the call. I'm going to start with the key drivers for our financial performance on Slide 8. Adjusted EBITDA in the fourth quarter increased compared to the same period last year, primarily driven by higher steelmaking coal sales volumes, which were partially offset by lower steelmaking coal and zinc prices as well as higher unit costs across our operations, including elevated costs at QB as production ramp-up continues. We continue to experience inflationary pressures in the cost of key supplies, including mining equipment and tires and labor and contractors as well as higher energy costs in Chile and changing diesel prices. These inflationary pressures impacted our unit cost in 2023, and we expect this to continue into 2024. As such, we have reflected inflation in our sustaining capital expenditures and our full year unit cost guidance ranges for 2024, which are unchanged. Our underlying mining drivers remain relatively stable, and we continue to be highly focused on managing our controllable operating expenditures. Our 2024 annual guidance that we disclosed in January is unchanged across our business. Now, turning to each of our business units in more detail, and starting with copper on Slide 9. We achieved record copper production in the fourth quarter, which was 58% higher than last year. This increase was driven by the ramp-up of QB operations, adding 34,300 tonnes of copper in concentrate production, higher production from Highland Valley Copper as a result of increased mill throughput, and higher production from Antamina due to higher grades. Cost of sales was higher year-over-year, primarily due to the inclusion of QB operations in the year with costs elevated as production ramp-up continued in the fourth quarter. As a result, gross profit before depreciation and amortization decreased compared to the prior year. On the sustainability front, we are pleased to announce that our QB and Carmen de Andacollo operations were awarded to Copper Mark in recognition of their environmentally and socially responsible operating practices, joining Highland Valley, which was awarded to Copper Mark back in March of 2022. Looking ahead, copper production is expected to significantly increase in 2024 to between 465,000 to 540,000 tonnes as we expect increased production at QB and at Highland Valley Copper. Copper net cash unit costs are expected to be higher than 2023 as we incorporate QB costs, which are expected to be elevated in 2024, particularly in the first half of the year as ramp-up continues. We also faced ongoing inflationary impacts on the cost of certain key supplies, including mining equipment, tires, labor and contractors. Moving now to our zinc business on Slide 10. Despite lower year-over-year zinc prices, profitability in our zinc business unit was higher in the fourth quarter compared to a year ago. At Red Dog, zinc production increased by almost 30% and lead production increased by 41% from a year ago, both of which were driven by increased mill throughput and improved grades. We also saw improved results from our Trail operations as it returned to full production rates and benefited from higher contracted zinc premiums. These increases were largely offset by the 18% decrease in realized zinc prices and higher operating costs at our Red Dog operations, primarily due to higher energy costs. Increased operating costs at our Trail operations and at Red Dog were more than offset by substantially lower royalty costs at Red Dog. We were pleased to announce that Red Dog was awarded to Zinc Mark in recognition of its strong environmental and social performance, continuing to demonstrate our sustainability leadership. As we look forward, Red Dog zinc in concentrate sales are expected to be between 70,000 and 85,000 tonnes in the first quarter, reflecting normal seasonality of sales. Total zinc in concentrate production is expected to be between 565,000 and 630,000 tonnes in 2024. Over the next three years, production is expected to decrease due to declining grades at Red Dog. Refined zinc production at Trail is expected to increase in 2024 as a result of improved concentrate availability. The KIVCET boiler replacement will impact our lead circuit in the second quarter of 2024, but is expected to have minimal impact on our zinc circuit. Zinc net cash unit costs in 2024 are expected to be higher than 2023 due to the ongoing inflationary impacts on the costs incurred certain key supplies, as noted previously. Turning now to steelmaking coal on Slide 11. Gross profit before depreciation and amortization increased to $1.35 billion compared to just over $1 billion a year ago, primarily due to higher sales volumes and partially offset by lower steelmaking coal prices. While our realized prices in the quarter were 3% lower than the strong fourth quarter pricing last year, pricing remains robust and well above historical averages. Overall, plant reliability and performance were strong in the quarter, supported by improved plant availability at all sites and leading to production of 6.4 million tonnes in the quarter. Fourth quarter sales volume of 6.1 million tonnes were driven by the strong production rates and supported by logistics performance with the fourth quarter of 2022 impacted by a two-month outage at our Elkview operations and extreme weather conditions. Adjusted site cash cost of sales per tonne of $100 was higher than the last year due to lower capitalized stripping at Elkview when compared to the fourth quarter of 2022. We were pleased to announce an agreement with shipping company, Oldendorff Carriers, to use wind propulsion technology intended to reduce CO2 emissions in shipping vessels and reduce Scope 3 emissions in our steelmaking coal supply chain, consistent with our focus on sustainability. As we look at the year ahead, steelmaking coal sales are expected to be between 5.9 million tonnes to 6.3 million tonnes in the first quarter. Production is expected to be between 24 million tonnes and 26 million tonnes in 2024 and to remain at these levels throughout 2025 to 2027. We expect ongoing inflationary cost impacts on certain key supplies to persist into 2024, which will impact adjusted site cash cost of sales per tonne and is reflected in our guidance. Turning to Slide 12 and our capital allocation framework. Overall, our priority is to have a disciplined approach to the deployment of capital guided by our capital allocation framework. We aim to balance our growth with cash returns to shareholders while maintaining a strong balance sheet through the cycle. And I believe we can strike the right level of growth and returns to shareholders by consistently following this framework. We expect a meaningful decrease in our capital expenditures in 2024 with a reduction in committed growth capital as outlined on Slide 13. We expect a reduction in total capital expenditures of approximately $1.2 billion in 2024, as we see a significant step-down in QB2 development capital as the project nears completion. We will see a slight increase in sustaining capital as we complete the KIVCET boiler repairs at Trail and reach peak capital spending for the Elkview administration and maintenance complex project in our steelmaking coal business. Capitalized stripping costs in 2024 are expected to decrease from the peak in 2023. In 2024, growth capital, excluding QB2, will be prioritized on copper growth projects, particularly for HVC mine life extension, San Nicolás and Zafranal. As we have previously disclosed, we do not expect to make a sanction decision on any growth projects in 2024, and we are focused on advancing these near-term projects for possible sanctioning in 2025. Both projects are required to deliver an attractive risk-adjusted return and will compete for capital in line with our capital allocation framework. Turning now to our strong balance sheet and shareholder returns on Slide 14. As Jonathan mentioned earlier, we are in a strong financial position with $7.9 billion in liquidity, including $2.5 billion in cash. We ended the year with a net-debt-to-adjusted EBITDA ratio of 1.1 times and we remain focused on maintaining our investment-grade credit metrics. Over the last five years, we have completed $2.5 billion in share buybacks and paid dividends totaling $1.4 billion, demonstrating our commitment to balancing growth with returns to shareholders. The Board has approved further cash returns to shareholders this quarter, approving the quarterly base dividend of $0.125 per share, payable on March 28th. And after receiving cash proceeds of $1.3 billion from the closing of the minority sale of our steelmaking coal business to NSC, the Board has approved -- has authorized a share buyback of up to $500 million. Our capital allocation framework will inform how the Board will consider the proceeds from the sale of the steelmaking coal business, as outlined on Slide 15. In total, we are expecting to receive $9.6 billion in cash proceeds, which includes 100% of the steelmaking coal cash flows until the transaction closes, which is expected to be no later than Q3 of this year. As we have already noted, $1.3 billion was received from NSC in early January, with up to $500 million to be returned to shareholders via share buyback. With the remaining proceeds to be received, we will assess opportunities to reduce our gross debt and maintain or improve our credit metrics through the cycle, ensuring that we do that economically. We will also retain additional cash on the balance sheet to fund our near-term copper growth opportunities and generate strong returns. We will pay our cash income tax payments in respect of the 2022 and 2023 fiscal years, which total just over CAD1.2 billion at the end of February of this year and we will pay transaction-related taxes of approximately $750 million in early 2025. And finally, as we've previously stated, we expect a significant return to shareholders. The Board will determine the amount, form and timing of these returns, which will be in addition to the $500 million buyback authorized by the Board in relation to the NSC proceeds. Overall, the significant cash proceeds from this transaction will strengthen our balance sheet and ensure we are well capitalized to unlock the full potential of our base metals business while delivering significant returns to shareholders. I'll now turn the call back over to Jonathan. Jonathan Price: Thanks, Crystal. So, turning to Slide 17 and our key priorities in 2024. As we mentioned, 2023 was a transformational year for Teck. And to ensure we can continue to demonstrate our focus on value creation, we have set up several key priorities for 2024. We were very excited to announce an agreement for the full sale of our steelmaking coal business in November. Glencore will acquire a 77% controlling interest in EVR and become the operator of the Elk Valley steelmaking coal lines. As we have discussed, we closed the sale of a minority interest in EVR to Nippon Steel and POSCO on January 3rd. Completion of the sale of our steelmaking coal business is one of our key priorities for this year, and regulatory approvals are progressing. The significant cash proceeds from this transaction will strengthen our balance sheet and ensure we are well capitalized to unlock the full potential of our base metals business, while balancing significant returns to our shareholders. As I mentioned earlier, we are also driving safe operational performance across our portfolio, and we have embedded known risks into our guidance to ensure we build confidence in our ability to deliver on our market commitments. At QB, we are pushing hard to complete construction of the port and commissioning of the molybdenum plant in the first half of the year and to achieve consistent operating performance at design capacity. At the same time, we are advancing the development projects in our industry-leading pipeline, which are foundational to our future growth. We will advance that growth in a disciplined way by following our capital allocation framework to ensure that our capital decisions are value maximizing for shareholders. Looking at Slide 18 and our priority to advance our copper growth in a disciplined way. This starts with completion of construction and ramp-up of QB and driving performance across all operations, and it continued the foundational technical work around our near-term development projects, completing feasibility studies, advancing engineering work and progressing project execution planning and permitting. We are adapting our approach to project development to leverage lessons learned. With no project sanction decisions until 2025, we are taking the opportunity to undertake a detailed review of the QB2 project, utilizing third-party expertise such that we can embed relevant learnings into future projects. In the meantime, we are advancing the most important work in the near term to prepare for our potential sanctioning decisions in 2025. This means that all our projects must compete for capital with the rest of the business to ensure that we drive strong financial returns. And it is important to note that each of our near-term development options are significantly smaller in scope and less complex than QB2. Ultimately, we will follow our disciplined capital allocation framework, focused on generating strong returns for shareholders, balanced with growth and maintaining a robust balance sheet in line with investment-grade credit metrics. Slide 19 summarizes our near-term development options, which include San Nicolás, Zafranal, QB asset expansion, and the mine life extension at Highland Valley. This represents a portfolio of both greenfield and brownfield projects in stable and well-understood jurisdictions. We continue to progress the optimal path to value for each of our assets. Significant work continues to advance each of these projects with a focus on de-risking project delivery. We submitted the environmental permit for the HVC mine life extension to the British Columbia regulator in October 2023 and finalized the Mexican Environmental Impact Assessment for San Nicolás, which was submitted on January 25th. And just last week, we received the Modification of Environmental Impact Assessment approval of the mine life expansion at Antamina. We're making progress across all our near-term copper growth options and setting Teck up to progress these projects at the right time to generate significant value. Now moving to Slide 20. Teck remains committed to sustainability leadership. We continue to progress our sustainability strategy and are proving we can make a positive impact, demonstrated by a number of achievements this past year. We are proud to have received Copper Mark and Zinc Mark all Teck-operated base metal operations, an industry-leading achievement, highlighting our commitment to sustainability and transparency at our operations, verified through third-party insurers. We've received a number of accolades this year for our sustainability performance. As previously mentioned, including being named as a Constituent of the Dow Jones Sustainability Index. And we have modernized our governance structure through the introduction of the sunset clause for the dual-class share structure. We also remain committed to our long-term goals of net-zero Scope 1 and 2 emissions by 2050, net nature-positive by 2030 and collaborating with our communities and indigenous peoples with a commitment to working to achieve free, prior and informed consent for our mining activities. Of note, we were one of the first mining companies to make a commitment to support the nature-positive future. We have implemented initiatives, including conserving and reclaiming at least three hectares for every one hectare we affect through mining, ensuring we protect and restore our landscapes and ecosystems for the benefit of all. So, in conclusion on Slide 21, Teck is committed to responsibly creating long-term value for our shareholders and stakeholders. As an industry-leading base metals producer with a strategy centered on copper growth, we are in a unique position to deliver significant value. We have current production from a premium portfolio of long-life, high-quality assets in stable, well-understood jurisdictions, and we are focused on execution, driving excellence in performance across our operations and project delivery to ensure that we consistently deliver against our market commitments. We have a major near-term copper growth through the ramp-up of our flagship operation, QB in Chile; at the same time, we seek to unlock the significant value upside potential from our industry-leading copper growth portfolio. Importantly, we will pursue our growth in a disciplined way, following our capital allocation framework, balancing growth with returns to shareholders and maintaining a strong balance sheet through the cycle. And sustainability is core to who we are. Our sustainability leadership position is a competitive advantage. This strategy will ensure we will continue to responsibly generate significant value for shareholders and all stakeholders. With that, thank you, and that concludes our presentation for today. Operator, please open the line for questions. Operator: [Operator Instructions] The first question comes from Orest Wowkodaw of Scotiabank. Please go ahead. Orest Wowkodaw: Hi, good morning. With the quarter now more than half over, Jonathan, I'm wondering if you can give us an update on the first quarter operating performance at QB. Specifically, the mill, the plant, are we starting to see more consistent throughput, recoveries, et cetera? Can you give us an update? Jonathan Price: Yes. Thanks, Orest. As I mentioned, we're working through the ramp-up phase for QB right now. It's in line with our expectations. We expect, of course, to progressively increase our copper production throughout the year to meet that guidance of 230,000 to 275,000 tonnes that we've previously communicated, and we're on track to do that. But I'll hand over to Shehzad Bharmal, our SVP of Base Metals, who is responsible for the operations there, just to give you a little more color. Shehzad Bharmal: Thanks, Orest. We have worked through most of the issues that we had mentioned previously with respect to the conveyors and the pumps that we had mentioned previously, and we are currently operating at close to design throughput rates. We are often on certain days limited by some conveyor issues on two conveyors at the front end part of the plant near the primary crushers, and we are working through those issues and expect to have those results in the next month or so and get back to above design rates or at design rates. On the recovery side, again, in January and February so far, we are close to design rates, so we are a little bit below. And we're actively working through this as we bring more stability to the front end of the plant. So, the consistency that we have seen over the last month or so has helped us improve our recoveries, and we continue to work through that to get to our design rates. Orest Wowkodaw: Thank you guys. Just as a follow-up, is the plan to basically have QB operating at consistent throughput recoveries, et cetera, call it, sort of some, I guess, midway through the second quarter? Is that the way to think about it? Jonathan Price: I mean I think this is the ramp-up of the facilities. As I said, we will progressively deliver increased copper production throughout the course of the year. Of course, we're pursuing exactly what you're saying, that stability and operating at design throughput rates. But this is a ramp-up process. It will take some time to land, but we're confident in the guidance that we put forward and expect the delivery of copper to improve through the course of the year to deliver against that guidance. Orest Wowkodaw: Operator: Our next question comes from Liam Fitzpatrick of Deutsche Bank. Please go ahead. Liam Fitzpatrick: Hi there. Liam Fitzpatrick from Deutsche Bank. So, just the first one on the balance sheet structure post EVR. Just wondering if you could give us more of a steer in terms of what sort of balance sheet you're targeting as we move into 2025. I know you've mentioned this one times EBITDA as a target level, but it seems unlikely that you're going to take leverage up that high. So, is it a small net debt position? Is it a small net cash position? Any kind of guidance on that would be helpful. Jonathan Price: Yes, I'll hand you over to Crystal to talk to that. I mean the one thing I would remind is that, that is the sort of long-term position we're targeting here as we receive the proceeds and then how we allocate them in the subsequent years. But Crystal, if you want to provide some more color. Crystal Prystai: Yes, of course. Thank you. I think it's consistent with what we've been articulating in relation to reducing our gross debt levels from where they are today. I think there is an opportunity for us to do that. We will look across our debt stack when we think about that. We obviously want to do that in an economic way. So, in relation to some of the public notes we have those make-whole premium, so we want to be deliberate in how we think about that. We are committed to that investment-grade credit metrics, as Jonathan said, through the cycle 1.0 times net debt to adjusted EBITDA. We aren't necessarily focused on a set leverage level, but rather really focus on that ratio. Liam Fitzpatrick: Okay. Thank you. And if I could ask one follow-up just on potential M&A versus organic opportunities. So, you clearly got a number of internal options that you think are very interesting that you're hoping to progress in 2025. Is that enough to keep you occupied? Or are you also on the lookout for potential external opportunities? Jonathan Price: Yes. Liam, I mean, given what we have in the portfolio already, we're not sure of the things to do. As we just discussed, we're very focused on the ramp-up stabilization in full production from QB this year. We've got then a tranche of projects, which should be subject to engineering economics and permitting ready for sanction in 2025, including the HVC life extension, San Nicolás and Zafranal. So, there's a lot to be getting on with there. And as we've always said, we want to balance that investment in growth with return of capital to shareholders. So, we'll continue to focus on those things that are entirely within our control and delivering that future growth that we've been talking to. Operator: Our next question comes from Timna Tanners of Wolfe Research. Please go ahead. Jonathan Price: Are you on mute, Timna? Timna Tanners: No, I just didn't hear you. Hey good morning. How is everyone doing? Jonathan Price: Good. Thanks Timna. Timna Tanners: Can you hear me now? Operator: Yes. Timna Tanners: Okay. So, I'm asking a little bit more about the expansion projects. I know at one point, you had a permit for further QB opportunities and just want to know the updated thinking there. And then regarding Zacatecas, San Nicolás, the leadership in Mexico is looking into banning open-pit mining. And just wondered how that affects that project or if -- how you're looking at that? Jonathan Price: Yes. So, starting with QB and future expansions of that facility, we have an incredible ore body there. It's very, very long life. It clearly will enable future expansions of capacity for QB and still something that we can run as a multigenerational asset. Our immediate priority, as I said, is getting the current plant fully ramped up and operating and then really exploring the full potential of that facility in terms of what additional capacity we can get through optimizing what we already have before we make a further commitment to any significant capital expenditure at the site. Medium term, very much expect us to continue to pursue larger-scale expansions of that operation. But with what we have at San Nicolás, Zafranal and the life extension of HVC, we have a fairly full task card in the immediate term. We'll focus on that in terms of our major capital deployment, but asset optimization studies for the medium and long term at QB are ongoing. For your second question, just around some of the moving pieces we've seen in Mexico of late really as they relate to the constitution, I'll hand you over to Tyler Mitchelson, who's our Senior Vice President, to cover it. Tyler Mitchelson: Yes, we're closely monitoring an assessment and assessing the proposed changes to the constitution. There's more than 20 proposed. Obviously, the ones around open-pit mining water consumption are the key ones. We've been working with our fellow industry players as well as [Indiscernible], the chamber of mines in Mexico to really understand what is the pathway forward. Given where we are right now, it's 4 months to the main general election and the -- actually closes on April 30. So it's really too early to determine whether or not these will be approved in the timeframe they're going to be approved and as well, what the ultimate impact will be as we go forward. You put it in the context of some of the largest mines in Mexico right now and some of the most successful mining companies to use open-pit mining. So, it's obviously a very significant impact, but we're continuing to monitor through the next months. Timna Tanners: Makes sense. Thank you. I got my two in, so I'll pass it along. Thank you again. Jonathan Price: Thanks Timna. Operator: Our next question comes from Dalton Baretto of Canaccord Genuity. Dalton Baretto: Thank you, good morning Jonathan and team. Jonathan on the Glencore call, Gary was asked about synergies between Collahuasi and QB2. And in response, he talked about a number of work streams and he sort of alluded to billions in synergies. I'm just wondering if you can comment on sort of where those synergies are coming from, some of the work that's ongoing. And maybe when we can see an update on where QBME fits into all of that? Thanks. Jonathan Price: Yes. Thanks for the question, Dalton. We, along with the other parties here, are doing detailed technical evaluation of the potential synergies between QB and Collahuasi. We haven't quantified those yet. And those synergies could take a number of forms, all the way from being infrastructure related to optimizing across two very significant ore bodies in that area. It's complex. It will take time, in particular, because there's a large number of counterparties involved in this, but engagement is ongoing. We're working together to identify the opportunity here, and we'll update in due course as we get closer to landing that technical evaluation. And of course, if and when we get closer to agreeing terms with other parties. As I mentioned before, the focus for us right now is and must be on the ramp-up of QB2 and optimizing the operation that we already have. The intersection with something like the QB mill expansion, as you referenced, as I said, we are looking at future asset optimization opportunities, which include debottlenecking in the short-term and could include project expansions in the medium term. And of course, if there were to be any agreement or commercial arrangement between the parties, then that would have to factor in future expansion opportunities on both sides, of course, at QB2 and Collahuasi. But we're not at that point yet, Dalton. There's a lot of work to be done. These things are complicated, but we're committed to understanding the value potential there and working constructively and collaboratively with the other parties. Dalton Baretto: Great. Thank you. And then maybe if I can ask one more, just on the Glencore transaction in the coal business. Can you give us an update on where you're at in the regulatory approvals process and whether you've seen anything that gives you concern at all? Jonathan Price: Look, so our process is continuing. We expect that we will receive the required approvals, being both the Investment Canada approvals and the antitrust approvals. Nothing that gives us cause for concern, Dalton, that we're seeing. These things just take time. We're working through that process, and we still expect this to close no later than the third quarter of this year. Operator: Our next question comes from Carlos De Alba of Morgan Stanley. Please go ahead. Carlos de Alba: Thank you very much. Good morning everyone. So, maybe I'll just follow up on the prior question. Any more specific color, Jonathan, that you can provide on what approvals you have already received and which ones are still pending for closing the deal, the coal transaction? Jonathan Price: So I mean, the -- one of the key ones here, of course, is the Investment Canada Act approval, and that remains outstanding with respect to these various antitrust approvals across a range of jurisdictions. We've received some of those, and some of those remain outstanding. So, as I said, I think things are progressing in the normal course, and we remain confident that this close is no later than the third quarter. Carlos de Alba: All right. And then on QB2 cost trends, I understand that you're going to provide further guidance once the production is stabilized at a steady state. But how do you see at least from a current -- currently, how do you see the trends of the cost moving once you get the steady state? The cost guidance for the next three years is a little bit wide. Should we assume that you only expect to get to the lower end of that three-year guidance, by the three-year production guidance period? Or maybe that's just conservative that you could achieve a lower, more sustainable cost earlier than the third year of that period? Jonathan Price: Yes. Carlos, look, I think there are a few things here that are clearly within our control, that should see us improve the unit cost profile at QB. And they are, of course, getting our own port up and running so we can move away from the temporary logistics arrangement to the permanent solution. Of course, there's also getting the molybdenum plant up and running at full production given the byproduct credits we will get from that. And of course then, there's getting the main circuit running at full production so we get that full dilution effect on costs. So, all of those three things, as we progress, we'll see unit cost improve. So, even as we move through this year, we would expect costs in the second half of the year to be better than in the first half of the year. There are, of course, some factors that are less within our control. The inflationary environment is one of the impact that, that could have on labor costs. And the other part of that is just energy cost in Chile, which we've signaled is being higher than previously. And of course, we need to see how those things progress. So we do -- we put our guidance for 2024. That guidance reflects the phase of ramp-up that we're in today, and it reflects some of the areas that I just reflected, which we will resolve through the course of this year. So, we expect lower cost in the future. But of course, we haven't guided to those yet, and we'll have a much clearer view of that once operations are stabilized. Operator: Our next question comes from Lawson Winder of Bank of America Securities. Please go ahead. Lawson Winder: Great. Thank you very much operator and thank you for the update today, Jonathan and team. I wanted to ask about Antamina and then hopefully follow up on QB2. But on Antamina, given that Teck is just one partner of several in the JV, what is the risk that Teck will have to make an allocation decision on there prior to 2025? And what is driving the time line at Antamina in terms of an expansion decision -- or extension decision? Jonathan Price: I'll hand over to Shehzad on that one. Shehzad Bharmal: Thanks, Lawson. So as you would have read that we didn't get the MEIA approval for the mine life extension from 2020 to 2036. And that is really expansion of waste facilities and tailings facilities in the location that they are. So, between now and then 2036, that mine life extension, other permits are in place and some capital associated with this that will be spent over the next eight years or so. Post-2036 extensions and expansions, all the parties that are looking at that right now, we are working on that. We're looking at permitting strategies for that. And that will be a few years before we'll have some definitive project definition on those. So, at this point, we are focused on getting that to 2036 from 2028, which we were very happy to achieve the permit. Lawson Winder: Okay. Yes, that's great. Thanks. It's very clear. And then with QB2, I mean, you noted a very material increase in the copper resources at QB2. How does that influence the thinking on what the next expansion might be? Does it suggest that it could be something much bigger than the prior QBME mill expansion concept of a 50% increase? Thanks. Jonathan Price: Not necessarily, Lawson. I mean I think the resource there was always very, very large, and now it's very, very, very large. So, it doesn't necessarily impact our short-term thinking around how we would expand this. We'll be very focused on the capital intensity of the next expansion here, where we looked at to maximize unutilized capacity in desalination in pipelines, et cetera. And what it means, of course, is we have far greater optionality in the long term, which is a fantastic position to be in, but it doesn't really change that short-term thinking. The focus on capital intensity and returns will be the front of mind for us. Operator: Our next question comes from Lucas Pipes of B. Riley Securities. Please go ahead. Lucas Pipes: Thank you very much operator. Good morning everyone. My first question is on Slide 13 of the deck, which breaks out the CapEx over the last couple of years and into 2024, and sustaining capital and capitalized stripping in 2023, 2024 kind of a step-up from those 2020, 2022 averages. And trying to understand better what's going on here. Is that a catch-up from the pandemic? Is there something cyclical? Are there unique projects that have elevated this temporarily? Just trying to get a better sense of -- or is it mostly inflation? Would really appreciate to get a better sense of those drivers. Thank you. Jonathan Price: Yes. Thanks Lucas. I'll hand you to Crystal on that. Crystal Prystai: Thanks Lucas. I think sort of primary driver that I would focus on would be inflation. I think there we did see from that sort of 2020 to sort of, I guess, really now, a significant increase in the underlying costs that were driving our sustaining capital as well as our operating costs. So, I think that is a key piece. In relation to capitalized stripping, I would just say, in our coal business, we were moving into new mining areas in 2023. And you saw those costs being elevated in that year, I guess, 2022 and 2023, and that's coming off in our guidance for 2024. There are also a couple of projects that are larger. In the coal business, the Elkview administration and maintenance complex is a large project in -- started off in 2023, the elevated cost in 2024 as we reach peak spending on that project. And then I'd say the last point in what's included in sustaining capital is, obviously, we now have QB sustaining capital included in our figures. So, those are some of the bigger items. But I think inflation would be probably one of the largest drivers. And we can get you a bit more granular detail if you give Fraser a call after. Lucas Pipes: That would be helpful. On Slide 24, you show the kind of copper production through 2027. And you anticipate a plateau in 2025 and the decline after that mostly really driven by Highland Valley. With the spending at Highland Valley today, is there any potential for a more sustained production level off of 2025? Or is that really the outlook through 2027, the best base case even with the spending taking place today? Thank you. Jonathan Price: Yes, I'd say not within that period, Lucas. This is how we see the current mine plan progressing the capital that we'll be putting work is subject to returns. Of course, for the life extension of HVC, we'll really see the production pick up in forward years, but I wouldn't expect to see any material impact on the guidance that we put out here. Operator: Our next question comes from Bill Peterson of JPMorgan. Please go ahead. Bill Peterson: Hi, good morning everyone and thanks for taking the questions. You've discussed just now actually, again, about the returns framework for the next stage of growth projects, including learnings from QB2. But I guess on the other side, I guess, how should we think about the demand and pricing environment necessary for type of sanction growth projects, especially considering what is looking -- increasingly looking like a tightening supply environment? Jonathan Price: Yes. Thanks Bill. I mean we do see a tightening supply environment. And we think even as we progress during this year, the outlook for copper pricing could be very constructive. We've seen the shortness of concentrate and the impact that, that's had on TC/RCs and we expect at some point that to flow through into refined metal, and hence headline copper pricing. Of course, each of the projects will have its own unique economics based on the capital, the operating costs and the volumes associated with those mines. They will all need to compete for capital. We will be very returns focused in terms of the decisions that we take here. And of course, the copper price will be a key determinant of that. But as I said, we remain very confident in the copper price certainly in the medium term, but even now in the short term based on the dynamics we see playing out in the market. Bill Peterson: Okay. Thanks for that. And I guess on that coal, I guess, obviously, maybe only relevant for a few more quarters. But can you give us your thoughts on the outlook for that segment and latest developments you're seeing both on the supply and demand side globally? Jonathan Price: Yes. I'll ask Ian Anderson, our Chief Commercial Officer, to talk to that. Ian Anderson: Thank you very much for the question, Bill. So, I'd start just with where we're at in terms of overall steel consumption and production during the course of the year. Global steel production was flat at about 1.85 billion tonnes, really representing above where it was last year and really saw that taper off at the end of the year as a result of Chinese production. It rapidly dropped. We're not certain about that number. So that was one of the factors. At the same time, the Indian crude steel production went up by about 11.8%, and that was offset by some small declines in EU, Japan, and South Korean markets. So, overall, if we look back over the course of the year, the high-quality steel and coal price exceeded $295 per tonne. It really rose at the end of the year when we saw it up to about $315, and there's two factors that drove that. First of all, a tiny supply, mostly in Australia; and secondly, heightened demand from India and China primarily. So, what we've seen in terms of Australian supply is key miners, including some of our peers there have adjusted their production guidance down in 2024. Chinese domestic production is, of course, going a bit deeper than it has in the past. And Russian coals, even though they've come in to fill the gap have been lower quality and not as good. So, we've not really seen investment in terms of hard coking coal supply, and we think that really promises a future price increase. Thank you. Operator: I will now hand the call back over to Jonathan Price for any closing remarks. Jonathan Price: Yes. Thanks operator and thanks to everyone for joining us today. As we talked about we're very excited about the prospects here for 2024 and beyond. We're looking forward to the completion of the transaction with Glencore. We're looking forward to updating you then on how we intend to allocate the proceeds, including shareholder returns, and we remain very focused on the ramp-up and stability of QB and progressing and de-risking the future pipeline of projects that we have. As always, please reach out to Fraser and the IR team if you have any more detailed questions. But thank you all very much and have a good day. Operator: This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

Operator: Ladies and gentlemen, thank you for standing by. Welcome to Teck's Third Quarter 2023 Earnings Release Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] This conference is being recorded on Tuesday, October 24th, 2023. I would now turn the conference over to Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analysis. Please go ahead. Fraser Phillips: Thanks, Charisse. Good morning, everyone, and thank you for joining us for Teck's third quarter 2023 conference call. Please note, today's call contains forward-looking statements. Various risks and uncertainties may cause actual results to vary. Teck does not assume the obligation to update any forward-looking statements. Please refer to Slide 2 for the assumptions underlying our forward-looking statements. In addition, we'll reference various non-GAAP measures throughout this call. Explanations and reconciliations regarding these measures can be found in our MD&A and the latest press release on our website. Jonathan Price, our CEO, will begin today's call with highlights from our third quarter results. Crystal Prystai, our CFO, will follow with additional color on the quarter. Jonathan will conclude today's session with a brief update on our value creation strategy before we open the lines to questions. With that, I'll turn the call over to Jonathan. Jonathan Price: Thank you, Fraser, and good morning, everyone. I'm speaking to you today from Iquique in the Tarapaca region of Northern Chile, where we're gathering this week to celebrate the opening of our flagship QB2 operation. This is a momentous event for Teck with Quebrada Blanca as the cornerstone of our copper growth strategy. More on that later. So starting on Slide 4. Our positive financial performance in the third quarter reflects continued strong pricing for copper and steelmaking coal, in addition to higher base metal sales volumes. Adjusted EBITDA of $1.2 billion reflects lower than expected steelmaking coal sales in the quarter and a localized geotechnical event at Highland Valley in August. During the quarter, we made significant progress to unlock the value of our industry-leading copper portfolio. Our QB2 project continues to ramp up and is expected to achieve design throughput and recovery rates by year end. The assets are performing well and we are pleased with the strong operational performance we have seen to date. We have a line of sight to double our consolidated copper production when QB2 reaches full capacity and we continue to advance our actionable portfolio development options to position Teck for our next phase of copper growth. Importantly, we ended the quarter in a strong financial position, with $7 billion of liquidity, included $1.5 billion in cash. And we returned $65 million to shareholders through the payment of our quarterly base dividend. In the third quarter, we continued to make steady progress against our sustainability goals. We announced an agreement with Norden to reduce emissions in our steelmaking coal supply chain. The agreement is expected to reduce annual emissions from tech shipments handled by Norden by 25%. And our reported high potential incident frequency remained low at a rate of 0.13. Now turning to QB2 on Slide 5. We made solid progress on the ramp up during the quarter. And as I just mentioned, we're seeing strong asset performance with the QB2 plant performing well. At the end of the third quarter, it had been operating consistently at 70% of design capacity. Both Line 1 and Line 2 are operating well. Success so far with Line 2 reflects a faster and more effective commissioning as a result of leveraging the learnings from Line 1. As a result, we generated our first quarterly gross operating profit at QB2. Though modest, it is a key milestone in the development of the project. While we are pleased with the performance of the assets so far, we are not pleased with what we have had to increase capital guidance to US $8.6 billion to $8.8 billion from $8 to $8.2 billion previously. The increase was driven by delays in construction of both the molybdenum plant and the port offshore facilities, as well as costs associated with contract claims and slower than planned demobilization. The last two outstanding pieces of construction at QB2 are the moly plant and the port offshore facilities. The moly plant will be completed by the end of the fourth quarter and the port will be complete in the first quarter of 2024, and significant efforts are ongoing to mitigate risks and cost pressures. Importantly, we continue to expect to be operating at design throughput and recovery rates by year end, although we expect to be near the lower end of QB2's 2023 annual copper production guidance range of 80,000 tonnes to 100,000 tonnes. Turning to Slide 6, where we outline a summary of our key 2023 operational guidance updates. In our copper business unit, we decreased our annual production guidance for Highland Valley by 10,000 tons to reflect the impact of the localized geotechnical event in August. We did not expect any impact of this event to carry beyond 2023, and our unit cost guidance remains unchanged. Copper capitalized stripping guidance was revised to $395 million, up from $295 million. The increase reflects additional stripping at QB2, while the concentrator was in ramp up, as well as additional stripping at Antamena, and the change in the mine plan at Highland Valley due to the localized geotechnical event. And in steelmaking coal, we lowered our 2023 production guidance to 23 million tonnes to 23.5 million tonnes, down from 24 million tonnes to 26 million tonnes to reflect the intermittent plant challenges we've experienced this year. Our unit cost guidance remains unchanged. With major maintenance activities completed and the implementation of our plant improvement initiative, we saw an improvement in plant reliability in the third quarter relative to the first half of this year. Our steelmaking coal operations are well positioned in the fourth quarter and into 2024. Strong raw coal inventories are also expected to provide additional product flexibility and optionality going forward. Across our businesses, we remain laser-focused on execution. We intently manage our key business drivers and continuously enhance our operating practices, while rigorously managing our controllable costs. For external risks outside of our control, we have solid mitigation plans, such as supply chain recovery and strategic sourcing to mitigate inflationary cost pressures. As ever, our focus is to drive reliable operational performance and maintain our competitive low-cost position. With that, I will now hand it over to Crystal for additional color on the quarter. Crystal Prystai: Thank you, Jonathan. Starting with an overview of our third quarter financial results on Slide 8. We generated $1.2 billion in adjusted EBITDA, or $0.76 of adjusted diluted EPS with contributions from each of our business units. However, we fell short of consensus analyst estimates for adjusted EBITDA and EPS in the quarter. The variance was primarily driven by the localized geotechnical event at Highland Valley, consensus expectations for QB2's ramp up profile, the impact of lower steelmaking coal sales volume, and higher than consensus corporate costs. This is partially offset by strong sales at Red Dog in the quarter. Looking forward, we are well positioned for strong fourth quarter results for a number of reasons. First, steelmaking coal prices remain robust, driven by supply constraints and strong demand, particularly from India and China. Prices rose through the third quarter and into October, and FOB premium spot prices currently stand at $343 per ton. As a result of pricing, plant reliability improvements and inventory levels, our high margin steelmaking coal business unit is well positioned to deliver strong financial performance in Q4. And at current copper prices, we expect QB2 to generate a gross profit in the fourth quarter as we ramp up – as the ramp up continues in production rates. Turning to the key drivers for our financial performance on Slide 9. Adjusted EBITDA in the third quarter decreased compared to the same period last year, primarily driven by considerably lower commodity prices for steelmaking coal and zinc, reduced sales volumes of steelmaking coal, as well as copper at Highland Valley, and higher operating costs. These items were partially offset by higher copper prices, positive pricing adjustments, and a weaker Canadian dollar. We continue to experience inflationary pressures in the cost of key supplies, including mining equipment, tires, labour, and contractors, despite the decline in diesel and other fuel costs compared to the same period last year. This is reflected in our sustaining capital expenditures and full-year unit cost guidance ranges, which are both unchanged. Our underlying mining drivers remain relatively stable, and we remain highly focused on managing our controllable operating expenditures. Turning to each of our business units in more detail and starting with copper on Slide 11. Copper prices were up 8% year-over-year. Copper production volumes in the third quarter, including QB2, increased by 8%, while sales volumes, including QB2, increased by 3% compared to last year. At QB2, we produced 18,300 tonnes of copper and concentrate, more than half of which was produced in the month of September. Sales volumes of 14,300 tonnes drove our first quarterly growth profit before depreciation and amortization for QB2 of $19 million, in line with our expectations. However, as mentioned earlier, production at Highland Valley was impacted by a localized geotechnical event in the south end of the valley pit in August, which required processing of lower grade stockpiled ore for the remainder of the quarter. In early October, the valley pit was safely reopened and mining of higher grade ore recommenced. A complete analysis of the failure resulted in a revised mine plan to mitigate production losses for the fourth quarter. Production at Andacollo was also impacted by a 14-day unplanned shutdown in August, which was due to a conveyor failure. Copper net cash unit costs increased as a result of lower production at Highland Valley and Carmen de Andacollo, an overall increase in maintenance and repair costs, as well as lower zinc and moly cash margins for byproducts. Despite this, our full year operating cost guidance for our copper business unit is unchanged. Looking forward, we decreased our 2023 copper production guidance for Highland Valley to 100,000 tonnes to 108,000 tonnes to reflect the impact of the localized geotechnical event in August. QB2 production guidance is unchanged at 80,000 tonnes to 100,000 tonnes, although we expect to be at the lower end of this range. We have also lowered our total molybdenum production guidance for the full year due to the delay in construction of the QB2 moly plant. For QB2, as a result of recent changes to IFRS, we are required to recognize sales proceeds and related costs associated with products sold during the ramp up and commissioning phase through our earnings, rather than capitalizing these amounts. In addition, as QB2 continues to ramp up production, we incur costs that are capitalized because they relate to bringing the asset to its design capacity operating level. These costs are referred to as capitalized ramp-up costs. We have capitalized $561 million of these costs as of September 30th. For the fourth quarter, we expect capitalized ramp-up costs to be lower than those capitalized in the third quarter. As mentioned earlier, we expect QB2 to generate a gross profit in the fourth quarter as ramp-up continues and at current copper prices. Moving to zinc on Slide 11. Profitability was impacted by zinc prices, which were 26% lower compared with the same period last year. This was partially offset by higher zinc premiums on our contracted refined zinc sales. Red Dog has had a strong shipping season this year and zinc and concentrate sales increased 14% year-over-year to 269,700 tonnes, which was within our guidance range. However, Red Dog zinc concentrate production was driven by reduced mill throughput as a result of equipment failure. At trail operations, refined zinc production was impacted by reduced concentrate supply, and refined lead production continues to be impacted by the [kit set] (ph) furnace that is nearing the end of its life. A replacement is slated for 2024. Looking forward, we expect Red Dog Q4 zinc sales of 130,000 tonnes to 150,000 tonnes, reflecting the normal seasonal pattern. And while our overall full year zinc production guidance remains unchanged, we made minor revisions to our site guidance. A 5,000 tonne decrease in Red Dog guidance due to production issues is offset by a corresponding increase in Antamina's guidance due to higher than expected zinc production. Turning now to steelmaking coal on Slide 12. While prices for the quarter were lower than that particularly strong third quarter last year, prices remain robust and are well above historical averages. Production was impacted by planned maintenance outages at two of our operations, including Fording River, our largest operation. Sales of 5.2 million tonnes were below our guidance range of 5.6 million tonnes to 6 million tonnes due to a slower than anticipated supply chain recovery following the impact of B.C. wildfires, the labour disruptions at B.C. ports and intermittent plant challenges. Adjusted site cash cost of sales per ton was impacted by lower sales volume and increased maintenance activities associated with the planned outages, while transportation costs reflect higher demurrage and port charges related to lingering impacts from the labour disruptions at B.C. ports and at B.C. wildfires. Looking forward, we expect Q4 sales to be between 5.8 million tonnes to 6.2 million tonnes, maximizing use of available inventories. And as mentioned earlier, we lowered our annual coal production guidance to 23 million tonnes to 23.5 million tonnes for the remainder of the year. This lower level of production is expected to put upward pressure on our adjusted site cost of sales and transportation unit costs, and we now expect both to be at the upper end of our guidance ranges for the full year. Overall, our steelmaking coal business is well positioned to continue delivering strong financial performance for the remainder of the year with average steelmaking coal prices above $355 per tonne months to date, plant reliability improvement, and current inventory levels. Our financial position remains strong as shown on Slide 13. Our liquidity is currently $7 billion, including $1.5 billion of cash, and we continue to maintain investment grade product ratings from S&P, Moody's, and Fitch. We have no note maturities due until 2030. In the third quarter, we paid our quarterly base dividend of $0.125 per share. Year to date, and in accordance with our capital allocation framework, we have paid $451 million in dividends, purchased $85 million in Class B shares, and advanced our ongoing deleveraging with debt repayment of $457 million. We remain focused on balancing our investment and growth against returning capital to shareholders, while maintaining a strong balance sheet. With that, I'll turn it back over to Jonathan. Jonathan Price: Thanks, Crystal. Before I wrap up, I want to provide an update on separation. With responsible value creation as our North Star, we continue to engage with a number of parties that have expressed interest in our steelmaking coal business. We're evaluating a range of potential options guided by several objectives. Based on extensive shareholder feedback throughout this process, one of our core objectives is to achieve a full separation of our base metals and steelmaking coal businesses. This is key to unlocking the value of our unrivaled copper growth portfolio. We will ensure Teck is well capitalized and positioned to pursue our copper growth potential and deliver strong returns to shareholders, while maintaining a strong balance sheet. At the same time, we aim to realize the full value of our steelmaking coal business for our shareholders. An important consideration will be the certainty of achieving separation, including receipt of the required regulatory approvals. And it is also critical that the transaction allows us to maintain social and environmental commitments to stakeholders in the Elk Valley. Overall, the Board and Special Committee are pleased with the progress we have been making. Separation remains a priority, and we are moving through the process as expeditiously as possible. Driving organic growth through development of our copper project pipeline remains central to our value creation journey. Looking at Slide 16, we have made meaningful progress on our near term development projects during the quarter. We furthered the feasibility studies for San Nicolas and the Quebrada Blanca mill expansion project and we completed the feasibility study for HVC 2040 in Q3 with the submission of the project environmental assessment in October. Looking forward, we are targeting key milestones for these projects in the fourth quarter, including completion of the feasibility study for QBME, submission of the MIA-R permit application for San Nicolas and commencement of detailed engineering for Zafranal. As shown on Slide 17, we have an unrivaled suite of copper growth opportunities diversified by geography, scale, and time to development. There is significant work underway to advance development of each of these projects, including resource definition, engineering and design, permitting and stakeholder engagement. And we have de-risked project delivery financially and operationally through a partnership approach, such as in the case of San Nicolas. The projects we have in place double our copper production in the near term, with the potential to deliver 1 million tonnes of annual production by the end of the decade to drive substantial new intrinsic value. In prioritizing our growth options we take into consideration multiple investment criteria, including strong financial returns, balance sheet capacity and financing options, project readiness, project development capacity, and the social, political, and environmental context. And importantly, each of these projects will have to compete for capital with the rest of the business and generate strong returns. While permitting is a major gating factor in determining potential sanction dates, we are largely in control of project timing. And we will continue to apply our discipline capital allocation framework that balances growth with returns to shareholders. In closing on Slide 18, this is a very exciting time for Teck as we continue our pursuit of responsible value creation for our shareholders. We are continuing to evaluate options for a separation that would realize fair value for our world-class steelmaking coal business and unlock the full potential of our base metals business. And we continue to make significant progress against our copper growth strategy with the ramp up of QB2 and advancements in our near-term development projects. Guided by our capital allocation framework, we are committed to balancing our opportunities for growth with financial resilience, while providing cash returns to shareholders. At the same time, we are focused on execution and ensuring we pursue responsible value creation for shareholders. Thank you. Operator, please open the line for questions. Operator: Certainly. [Operator Instructions] The first question comes from Orest Wowkodaw with Scotiabank. Please go ahead. Orest Wowkodaw: Hi, good morning. Jonathan, some follow-up questions if I could on the planned coal separation. I mean, obviously, this has been going on now for some time. Can you give us a better idea of where you are in that process? Like are we close to the finish line or do you think this could just take a lot longer, given more interested parties coming to the table? And could it spill into next year? Jonathan Price: Yes. Hi, Orest. Thanks for the question. Look, we're making very good progress here. I'm very happy as to where we are at present. We have a competitive process, which is the most important thing here to ensure we have options ahead of us to realize a good outcome. As I've mentioned a couple of times recently, I believe we'll be in a position to make a decision before the end of the year. That hasn't changed. The key thing for us is to ensure we make the best decision here possible rather than rush the process. But as I said, we're well positioned right now. We're happy with the level of competition we have and I'm confident we can get a good outcome for shareholders. Orest Wowkodaw: Okay. And just as a follow-up, you spoke to the fact that certainty of achieving separation is a key criteria here, including regulatory approval. Do you think that a partial sale would be easier from a regulatory approval perspective than a full sale? Jonathan Price: Look, I think every different option here has its unique characteristics in terms of what that means from an approvals perspective. The overarching focus here is on the delivery of shareholder value. That has to come first and foremost. In considering that delivery of shareholder value, of course, we have to consider the certainty of execution and the risks associated with any transaction. The requirement for regulatory or other approvals is a function of the nature of any transaction. And ultimately we will do what we believe is in the best interest of our shareholders, having regard for those regulatory and approval requirements. Orest Wowkodaw: Okay. Thank you. And one more, if I could squeeze it in, just if you decide to do the partial sale option, would it be your goal to put control of EVR into the public market or control with an owner? Jonathan Price: Look, I won't be specific on that, Orest, at this point in time. I mean, I think, we've discussed the range of options that we have before us here with a full sale at one end of the spectrum and a partial sale and a spin at the other end of the spectrum with the latter providing ongoing exposure to our shareholders in respect of both the steelmaking coal market, the fundamentals of which look very attractive going forward, and of course, a quality high margin business like EVR. Ultimately, the specifics of any transaction will be a subject of the conclusion of this process. So, I won't say more on that now, other than as I mentioned before, we're happy with the options in front of us and we believe we're well set to drive a competitive outcome. Orest Wowkodaw: Thank you very much. Jonathan Price: Thanks, Orest. Operator: The next question comes from Liam Fitzpatrick with Deutsche Bank. Please go ahead. Liam Fitzpatrick: Good morning, Jonathan. Just a couple on QB2. It's clearly a hefty CapEx increase given you only reguided earlier this year and we're only talking about a three month delay for two parts of the project. So the question is, were these issues not largely known about earlier in the year? And can you outline what the major component is behind this increase? And the follow-up kind of links to that and your future growth strategy, because clearly a lot of it is based around the next copper projects. So, what sort of changes are you making or have you made to ensure that we're not going to be faced with similar issues in the future? Thank you. Jonathan Price: Thanks for the questions, Liam. I'll come back to the second question in a moment and I'll hand off the first question to Red Conger, our President and Chief Operating Officer. Just to preface that, I will say, the issues that have caused us to re-guide the QB2 CapEx as we have done today are issues that arose in the third quarter and they're issues that created impacts to both schedule and costs. But I'll hand over to Red to unpack that in greater detail. Red Conger: Yes. Good morning, Liam. We are focusing on delivering a reliable and robust copper circuit. I mean, that is first and foremost in our actions. And several unknowns presented themselves during the third quarter. Let me give you a couple examples of those and what we had to do to address them. We commissioned the tailings return water facility early in the third quarter. And we found that all 16 of these huge tailing water return pumps had an internal manufacturing defect that evidenced only when they were operating at full load, all of the pre-ops testing, et cetera, was unable to detect this default. So once we got them up and running at full load, they were overheating. So we had to do discovery work to understand what that was. We had two responses there. We had to run them at lower rated capacity to prevent the overheating. And then, once we discovered what the defect was in the original casing, we had to take out each pump, send it down to a machine shop, have it modified per design specs, then bring it back up to the site, get them installed again. And I'm happy to say they're all running appropriately now so that that fits has cured the problem. But there's a major system where you essentially had to build it twice and, and do some of the manufacturing on the pumps that should have arrived to us in working order and ready to go. So that was a major unplanned piece of work for us. And of course, you take resources off of other planned work that you had during the quarter to do that rework. So that's one example of something that we discovered and addressed and successfully completed. Additionally, the blast jetty pile that we're drilling out in the port area, the drill bit failed subsurface in the ocean floor, took us two months to get that unit out of the ground and out of our way. We were unable to drill the pile in an alternate location because of the critical nature of the load bearing requirements there. So that was just something that you had to power through and get done, no way we could forecast that or know that that was going to occur and that has delayed the port from completion from the end of this fourth quarter into the end of first quarter of next year we've hired two additional contractors to work on completion of other offshore areas, mooring buoys, et cetera, offshore. So those -- again, those are scheduled delays, overhead continues. You have to hire more contractors to cover in behind and significant cost increases associated with that. And then, we have a variety of claims that contractors have submitted that are associated with costs that they believe they've incurred due to owner-directed changes in work plans. So we've got a significant amount of work that we need to do to review all those claims, reconcile those, and determine what settlements are appropriate in order for us to be complete and truly assess the full impact of that. We've put all of those claim figures into the forecast now, even though we know some of them may not be settled for exactly what was applied for. This is -- all of this rework, et cetera, has intentionally delayed the moly plan, so that, again, in preference to the reliability of the copper circuit. And that approach has served us very well. We're seeing substantial improvements month to month in plant throughput and performance and really very excited about how the plan is performing and what the future holds for the performance of that plan. Jonathan Price: Yes. Thanks, Red. And just to sort of reiterate there, Liam, as we've said, the only major areas of construction outstanding now are the moly plant and the port. In the guidance that we provided today, we have included all known risks, as Red has said, and we've included those risks pre any mitigation. And of course, we've included some allowance in here for unknown risks. So we do believe that the guidance we've put forward today will capture all remaining CapEx through to the completion of the project at this stage. To your second question on future growth and implications here. Firstly, of course, we will undertake a detailed lessons learned process from the QB2 experience and make sure that those lessons and assumptions are carried forward to future projects, both in terms of the capital assumptions we make, but also how those projects are delivered. One example that we've referenced many times through the course of this project has been the challenges we've had with labour productivity. Now, some of that, of course, could be a function of COVID and the hangover from COVID and some of that, of course, could be a function of the environment in which this project has been built at 4,400 metres. It's a challenging place to deliver a major project. But we will take those assumptions forward and make sure that they're reflected in future projects. Otherwise, I think if you look at the projects in our portfolio, it's worth noting that they are an order of magnitude simpler in terms of their complexity, in terms of their scale, and in terms of their scope. When you look at QB2 and the full scope of that, it's really five or six major projects that are rolled into one with port, diesel, pipelines, mine, concentrator, tailings, all at world-class scale. The other projects you see in the pipeline here, some of them with capital costs, closer to $1 billion, reflect a very different proposition for the company. But that said, there's a lot to learn for QB2. We'll make sure we understand those lessons well before we sanction our next project. Liam Fitzpatrick: Thank you for the color. If I'm allowed, a very brief follow-up just on your EVR comments. I just wanted to make sure I'm understanding it correctly, because you mentioned execution risk was key. Kind of what's being implied here is that a kind of, I guess, a spin of some form is the lower execution roots or are you just outlining that it's basically a call between the execution risk on a spin versus a sale to a single party? Jonathan Price: No, look, I think, Liam, it's intended to be a general comment. It's not intended to point at anything specific here. When assessing the creation of value for shareholders, you've got to sort of look at that in the broader sense. And of course, the certainty or the risk to delivery of that value is a key consideration. And risks and approvals and those sorts of things can manifest in a number of ways. So it's not intended to be a direct comment to favour one option over another, just to sort of give some colour to the thought process here that headline price and headline value is important, but as is the certainty of the delivery of that value. Liam Fitzpatrick: Understood. Thank you. Jonathan Price: Thanks, Liam. Operator: And the next question comes from Dalton Baretto with Canaccord Genuity. Please go ahead. Dalton Baretto: Thank you. Good morning, Jonathan and team. I wanted to stay on that separation topic of conversation there. And I guess, my first question, Jonathan, is given where coal prices are, as well as the implied valuation on the BHP Whitehaven Dale. Has the thinking on valuation between you and your potential buyers changed at all relative to what was on the table earlier this year? Jonathan Price: Thanks for the question, Dalton. It's fair to say that I think the view of the market has evolved since February when we announced our prior separation. The outlook for steelmaking coal has definitely improved, I think, a recognition here of the favorable structure for that market going forward with now, I think, a greater understanding of the long-term need for the role of blast furnaces in the production of steel and limited new met coal supply expected to come to the market. And then, of course, the growth of blast furnace capacity in India as well is something that is particularly interesting for those structural dynamics. So I think the view of the market has changed long term. Whilst the spot price is very encouraging, right now we look through that and we look to the long term assumptions here that underpin the business. I think as well, post the discussions we had earlier in the year regarding separation, the appreciation for EVR as a long life, high margin producer of very high quality hard coking coal has increased in the market as well. So look, I think there has been a move in expectations over the last six or eight months as a result of those two factors. And of course, in discussions with our shareholders, which have been ongoing throughout that period, they convey to us their expectations here as well. And that's something, of course, we take on board as we think through the options in front of us. Dalton Baretto: Great, thanks for that Jonathan. And then just maybe as a follow up, in terms of getting a deal done before year end, if you do offer a partial sale as well as a [spin co] (ph), do you anticipate those happening together or could we see an announcement on a partial sale by year end. And then just some sort of a lag on the spin co that will allow you to recoup some of these high coal prices? Jonathan Price: I think, Dalton, our proposal here is, if and when we step forward with a transaction, we would expect to step forward with a complete solution for the separation of EVR from the base metals business. Dalton Baretto: Great, thanks for that. And there's maybe one last one on QB2. As you ramp it up, where is the bottleneck currently? Is it at the mine? Is it at the mill? Is it at the supporting infrastructure? And what is the primary hurdle to get to full design capacity? Jonathan Price: Yeah, Dalton, I'll hand you over to Shehzad Bharmal, our SVP, the Copper Business unit here, who is responsible for the ramp up and future operation of QB2. Shehzad Bharmal: Thanks, Jonathan. As Red mentioned, we are very pleased with the plan to design and the robustness of the design and the performance so far. And the insights and lessons from Line 1, we translated that to Line 2. And as we started treating Line 2 in August we were up and making copper within -- in less than a month, so very excited about that part. And as part of the commissioning when we took line two down to retorque the mills, check the gap and the air settings on the motors, we also took the opportunity to make some adjustments to the plant [indiscernible] conveyors and chutes and everything else. And it's that reliability of the little things that has been our focus, not the design and the throughput of each of the units in the plant. So we don't see anything that prevents us from getting to design rates. And in fact, after we started up after that shutdown, we have hit above design rates on each of the lines and of the plants together, over 140,000 tonnes, 43,000 tonnes a day. We have achieved that. And so, really to answer your question, it is the reliability and making sure that the small shutdowns are avoided and we are making great progress on that. With respect to mine operations, we have hit our target numbers regularly. So really, the autonomous fleet is operating really well. The crusher is not a bottleneck at all. And as Red mentioned on the tailing side, the return water system, which is part of the water recovery and the dilution water for sands is operating really well. The sand quality, quantity is within spec and that's been de-risked as well. So the team is really energized, we're hitting records. Every regularly we make another record on our journey towards full ramp up and it's this reliable delivery that we hope to achieve by year end. Dalton Baretto: Great. Thank you for taking my questions. Jonathan Price: Thanks, Dalton. Operator: The next question comes from Chris LaFemina with Jefferies. Please go ahead. Christopher LaFemina: Hi. Thanks for taking my question. I just wanted to ask about -- sorry, back on QB2, on the CapEx budget there. So the $8.6 billion to $8.8 billion CapEx guidance is for the project. And then you have this ramp up CapEx. And then you also have the operating costs. And presumably the copper sales that you're making in the normal course of business, the offsetting costs there are expensed and not capitalized. So I'm trying to first understand exactly what is included in the ramp up CapEx. And secondly, do you have a guidance for what that ramp up CapEx will be before all the costs are ultimately expensed? Because I'm not sure if that ramp up CapEx was ever guided to earlier on in the project. It seems like that sort of came out of nowhere and it's adding to the overall CapEx of the project. So just trying to understand what comprises that and what that number should ultimately get to before it ends? Thank you. Jonathan Price: Yes, thanks for the question, Chris. I'm going to hand you over to Crystal on this one, given the relation to the IFRS treatment of these costs during ramp up. So over to you, Crystal. Crystal Prystai: Thanks, Chris. I think maybe I'll take your question in a couple of pieces as you've sort of framed it. I think the first just being the change in IFRS that now requires us to obviously recognize cost through earnings as we sell products. So we've done that in the third quarter as we've had sales volume come through. So those amounts are in the P&L and you can see what our margins are and you can see the breakdown in our mine operations reporting that we've included in the MD&A. And then in the context of the ramp up capital, during the time where we're ramping up operational rates to designed capacity, we're trying to get to a minimum threshold and at that time we're incurring costs to operate the assets, but we aren't producing at the levels where we expect to be producing. And so, during that time, we capitalized those costs. If we were producing at higher levels, those costs would be going into inventory and then going through the P&L. We haven't guided to that amount, just given that obviously the ramp up is ongoing and it's a hard number to predict. But I can say that, as we get to higher levels of production the amounts that we capitalized in that ramp up capital bucket are lower. And so, I expect them to come down in the fourth quarter compared to what was capitalized in the third quarter. And as we get to the end of the year and we're at full production rates, we won't be seeing any further amounts capitalized in that bucket. So that amount has peaked, and I expect it's going to come down over the rest of the year. Does that answer your question? Christopher LaFemina: Well, I guess -- so if you're operating the asset and you're selling copper, I'm not sure why. I'm a little bit confused as to why expenses would then be capitalized if they're not -- if they're associated with actually operating the asset and selling copper. I mean, what exactly comprises that CapEx? Is it stripping? Is it an investment in the infrastructure? What exactly is going into that bucket? Crystal Prystai: It's all the cost of operating those assets until you reach a minimum operational threshold. So any cost associated with the products being sold is going into your cost of sales number. Christopher LaFemina: So none of the costs associated with the sales are going -- sorry, so the costs associated with the sales are going into expense or going into CapEx? Crystal Prystai: They're going into expense, that's right, into cost of sales on the income statement. Christopher LaFemina: Okay, thanks. I'll just follow up offline. Thank you for that. I appreciate it. Jonathan Price: Thanks, Chris. Yes, the answer is accounting, I think. So we'll take the next question, please. Operator: The next question comes from Bryce Adams with CIBC. Please go ahead. Bryce Adams: Good morning, and thanks for taking my question. It's one more on the ramp up. So the low end of QB2 guidance for the concentrator, 80,000 tonnes of copper, and we are guided to the low end. So that implies Q4 production of just under 60,000 tonnes. What from the ramp up so far gives you confidence that that's possible? 60,000 per quarter is not the full run rate, but it's getting closer to it. So just looking for some more color on your Q4 expectations for the ramp up? Jonathan Price: Yes. Thanks, Bryce. Back to Shehzad on that one. Shehzad Bharmal: Thanks, Bryce. So as I mentioned, early in Q4 we did the modifications and we have been running well since then. And really it's ramp up from October, getting closer to November, and then finally getting to pretty much full rates by the end of the year. And one is the throughput aspect which we are relatively bullish on. And then the other is the recovery. Our recoveries have been pretty strong as well. And as we ramp up all our analyzers and our control systems now, which is we're in the process of doing, actually this week, and then moving forward, we're looking at some good gains on recovery as well. And of course, the last factor being grade. Based on our mine sequence, we're looking in good shape there. And so, with those three things, we think we'll be able to hit that 59,000 tonnes. Jonathan Price: Yes, I think it's also worth noting that, it won't be a straight line through the next two months here that sort of week on week, we'd be expecting production rates to improve into the end of the year. Bryce Adams: Yep, got it. Okay, thanks for that. Looking forward to the Q4 updates. I think if you get that 59, 000 tonnes, 60,000 tonnes in Q4, that's a good setup for next year. So the rest of my questions are answered. That's it for me. Thanks so much. Jonathan Price: Thanks, Bryce. Operator: The next question comes from Bill Peterson with J.P. Morgan. Please go ahead. Bill Peterson: Hi. Good morning. Thanks for taking my questions. A lot of questions on QB2 and Elk Valley have been answered, but I wanted to talk more about near-term development projects. So I guess first, when do you expect the project environmental assessment for the mine extension for Highland Valley to be approved? And I was hoping to get a bit more color on the expectations for the permitting and feasibility studies for the near-term growth projects, such as [indiscernible] QBME, and so forth? Jonathan Price: Yes, thanks for that question, Bill. I'll just start with Shehzad on the HVC piece, and then I'll hand you over to Tyler Mitchelson, our SVP responsible for copper growth to talk a bit more about the other projects in the portfolio and their status. Shehzad Bharmal: So Bill, on Highland Valley, as we said, we were able to submit our EA. It was a long process and it was really quite robust. And we do expect approval by the end of 2024, before the end of 2024. And then of course, there will be a decision for the board on sanctioning that My Life extension. Jonathan Price: Okay. Thanks, Shehzad. Tyler, can you handle the balance of the question, please? Tyler Mitchelson: Sure, thanks. Look, I think, the key near-term projects, if you start with San Nicolas down in Mexico, working through the feasibility study as we speak and we're targeting [indiscernible] in the first half of 2024. The permit paperwork and everything has been prepared. We're just doing a lot of stakeholder engagement right now, ensuring that you've got the right things lined up before we submit the permit to be anticipate putting that permit in Q4 2023. On that for now, working through the CapEx and OpEx update with a little bit more engineering, we should have that done first part of 2024. We do have the permit in place for that one. We got that in May of 2023. Next step from a permitting perspective [indiscernible] would be the construction permit, which we need to do a bit of engineering for and the intent is we would apply for that mid-2024. And then the other near term one is QBME, progressing the feasibility study. We should be done that in the fourth quarter of this year and still working through the permitting process there as well. So a lot of the other longer-dated projects we're doing some of the early work on baseline work and working through some of the technical aspects of the early stage study work on that. Those are the key near-term projects we're working through. Does that answer the question? Bill Peterson: Yes, thanks for the update. I guess more on the near-term working capital. So how should we think about the cadence through the remainder of this year and then the next year as QB2 ramps more meaningfully? I guess, are you still expecting a build for the year? Jonathan Price: Crystal, can you pick up that one please on working capital for QB2? Crystal Prystai: Yes, sure. Thanks, Bill. I think we are at the working capital levels we expect to be. Obviously, we're building some inventories on-site as we produce and we move things into sales, but I don't expect there to be a material change in working capital outside of our normal sort of timing of sales and accounts payable. I think we're looking to kind of achieve about a $400 million level there. Bill Peterson: Okay. Yes, thanks for that. Jonathan Price: Thanks, Bill. Operator: The next question comes from Brian Macarthur with Raymond James. Please go ahead. Brian Macarthur: Good morning. My two questions, I apologize, are in QB2 and QB as well. So just my first one was sort of the last question. Just Crystal, that increase in CapEx for all the accounting. Does that include some of that working capital? Because originally there was a capital cost investment and then there was going to be just $400 million working capital. Is that working capital on top of the new guidance or how do I think about that? And I guess it gets a little bit back to Chris's question. Crystal Prystai: So the $400 million of working capital is not included in ramp up capital. And it's always been the amount that we've communicated. So there isn't a change in that amount based on what we've communicated today. Brian Macarthur: Okay, great. Thanks. And my second question was that, Jon, I think you talked about permanent being a challenge and we talked a little bit about QBME expansion. There was a report I think earlier this week in the Tarapaca region sort of recommending against the expansion. Does that -- can that impact the timing of your feasibility for that expected in Q4 or I don't know what you can comment on that situation. Jonathan Price: Yes. Thanks for that question, Brian. Yes, there was a report issued recently with respect to the permitting process. That process is ongoing. There hasn't been a decision taken yet. I would say that, as I've mentioned before, is sort of the normal course of the permitting of major projects. Your question around the feasibility, no, it won't impact that. We continue to progress the feasibility study and expect to have that done in the current quarter. Brian Macarthur: Great, thanks very much. Jonathan Price: Thanks, Brian. Operator: I will now hand the call back over to Jonathan Price for closing remarks. Jonathan Price: Thank you, operator. And thanks to everyone for joining us on the call today. As I mentioned, we're thrilled to be in Chile and officially opening QB2 this week, which is a momentous event for Teck. We look forward to doubling our consolidated copper production as it ramps up to design throughput and recovery rates, as well as to our next phase of copper growth beyond QB2. As always, please reach out to Fraser and our IR team if you have any further questions. Thank you all very much and have a good day. Operator: This concludes today's conference call.

Operator: Ladies and gentlemen, thank you for standing by. Welcome to Teck's Second Quarter 2023 Earnings Release Conference Call. [Operator Instructions]. This conference, this call is being recorded on Thursday, July 27, 2023. I would now like to turn the conference over to Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analysis. Please go ahead. Fraser Phillips: Thanks, Galen. Good morning, everyone, and thank you for joining us for Teck's Second Quarter 2023 Conference Call. Please note, today's call contains forward-looking statements. Various risks and uncertainties may cause actual results to vary. Teck does not assume the obligation to update any forward-looking statements. Please refer to Slide 2 for the assumptions underlying our forward-looking statements. In addition, we will reference various non-GAAP measures throughout this call and explanations and reconciliations regarding these measures can be found in our MD&A and the latest press release on our website. Jonathan Price, our CEO, will begin today's call with highlights from our second quarter results. Crystal Prystai, our CFO, will follow with additional color on the quarter. And then Jonathan will conclude the call today with an update on our copper growth strategy. And of course, we will then open the lines to questions. With that, I'll turn the call over to Jonathan. Jonathan Price: Thank you, Fraser, and good morning, everyone. Now before we get into the second quarter results, I'd like to begin by taking a moment to say that we are deeply saddened by the fatality that occurred in May 2023 at our Quebrada Blanca operations. Health and safety is a core value at Teck, and we are focused on our goal of every single person going home to their families safe and healthy each and every day. We undertook a thorough investigation and learnings from the investigation are being shared across Teck and with our industry peers to help prevent future incidents. So moving now to the highlights for the second quarter on Slide 4. Overall, we maintained positive momentum through the second quarter with achievements across all 4 pillars of our value creation strategy. First, we made significant investments in copper growth. We achieved a major milestone at QB2 with the first sale of copper concentrate, and we are advancing ramp up towards full production rates later this year. We also continue to progress our copper growth pipeline, and we achieved another major milestone with the receipt of regulatory approval from the Peruvian Environmental Authority for Zafranal project. The team did a fantastic job throughout the process, and we are very pleased to have the permit in hand. And for San Nicolas in Mexico, we closed the joint venture transaction with Agnico Eagle in the quarter, and the new project management team finalized the EIA permit application in June. Second, our continued focus on execution on our operations drove strong financial performance. We generated $1.5 billion in adjusted EBITDA and ended the quarter with $7 billion of liquidity. Third, our strong financial performance enabled us to return cash to shareholders while continuing to strengthen our balance sheet. We paid our quarterly base dividend, repurchased $85 million of Class B shares through the NCIB and repaid the first biannual installment on the QB2 project finance facility. And finally, we advanced our governance and sustainability initiatives. We made a step change in the advancement of our governance structure with the completion of the plan of arrangement to implement a sunset of the multiple voting rights attached to the Class A common shares. We also marked the 1-year anniversary of tech becoming the first mining company globally to commit to the goal of becoming nature-positive by 2030 with a $10 million donation to the Chilean Nature Fund. This will help protect a critical global biodiversity area. Since the launch of our Nature Positive program, I am particularly proud that Teck has helped conserve over 51,500 hectares, which is equivalent to 4.5x the size of the city of Vancouver. Further, we are pleased that Trail became the first stand-alone zinc processing site globally to be awarded the Zinc Mark based on 32 responsible production criteria, including GHG emissions, community health and respect for indigenous people's rights. And we were honored to be named 1 of Corporate Knights Best Corporate Citizens in Canada for the 17th consecutive year. Now looking at our progress at QB2 on Slide 5. As noted earlier, we achieved a major milestone at QB2 with the first shipment and sale of copper concentrate in the second quarter. Line 1 is operating well as per our expectations and Line 2 is now in commissioning. The concentrate pipeline concentrate filter plant and storage systems at the port and now in operation. Due to delays in construction and commissioning, we have updated our QB2 2023 production guidance to 80,000 to 100,000 tonnes, but continue to expect to be operating at full production rates by the end of the year. So total QB 2023 production guidance has been revised to 90,000 to 110,000 tonnes, which includes 10,000 tonnes of cathode. Our project capital cost guidance of USD 8 billion to USD 8.2 billion remains unchanged. And with that, I will hand it over to Crystal for additional color on the quarter. Crystal Prystai: Thank you, Jonathan. I'm going to start on Slide 7 with our financial results for the quarter. As Jonathan noted, we delivered solid financial performance in the quarter, driven by robust commodity prices and steelmaking coal sales. Overall, adjusted EBITDA was $1.5 billion, and adjusted profit attributable to shareholders was $643 million or $1.22 per share on a diluted basis. We paid $65 million in quarterly base dividends, completed $85 million in share buybacks and reduced our debt through the first semiannual repayment on our QB2 project finance facility of USD 147 million. We've outlined the key drivers of our profitability on Slide 8. Adjusted EBITDA was $1.5 billion in the second quarter. Compared to the same period in 2022, the decrease was primarily driven by lower prices for our principal products, which were at historically high levels last year, particularly for steelmaking coal. Lower prices were partially offset by a weaker Canadian dollar. Lower copper sales volumes, continued inflationary pressures on our unit costs and the sale of Fort Hills also had a negative impact on our Q2 EBITDA compared to last year. Looking ahead, we remain highly focused on managing our controllable operating expenditures. While diesel and other fuel costs have materially declined from last year, we continue to experience inflationary pressures in the cost of key supplies, including mining equipment, tires and contractors. Our underlying mining drivers remain relatively stable and the continued pressures on certain input costs are already reflected in our 2023 sustaining capital and annual unit cost guidance, which are unchanged. Looking now at each of our business units in more detail and starting with copper on Slide 9. Copper production of 64,000 tonnes was 10% lower than the same period last year, reflecting expected lower grades as well as unplanned maintenance at Highland Valley and reduced milling rates in response to cyclone impacts at Antamina. Copper production in the second half of the year is expected to be strong, with our annual copper production guidance, excluding QB2 unchanged. Net cash unit costs were higher than the same quarter last year due to lower production and higher consumable costs, particularly for power as well as higher maintenance costs. We expect copper unit costs to be within our annual cost guidance range with higher production in the second half of the year. Importantly, we achieved the first sale of copper concentrate at QB2 in the quarter. Looking forward, as Jonathan mentioned earlier, Line 1 is operating well and Line 2 is in commissioning. We continue to expect to QB2 to reach full production rates by the end of 2023. However, recent changes to IFRS require us to recognize sales proceeds and related costs associated with products sold during ramp-up and commissioning through our earnings. Historically, we and others in the industry would have capitalized these amounts during ramp-up through to commercial production. We expect this change in accounting treatment to increase our unit operating costs for QB2 during ramp up. As a result, we do not anticipate generating significant gross profit from QB2 in the third quarter despite the expected ramp-up in production rates. As Jonathan noted earlier, we updated our full year production guidance for Q2 to 80,000 to 100,000 tonnes from 140,000 to 170,000 tonnes. As a result, our total annual copper guidance has been updated to 330,000 to 375,000 from 390,000 to 445,000 tonnes. Our previously disclosed QB2 production guidance for 2024 to 2026 is unchanged. Turning now to zinc on Slide 10. Red Dog zinc production of 134,000 tonnes decreased by 7% compared to last year as a result of lower grades as expected in the mine plan as well as reduced power system availability. Red Dog zinc production is expected to improve in the second half of the year. At Trail, refined zinc production was impacted by the planned roaster shutdown and the commissioning of the automated circuit to produce zinc. Refined lead production was impacted by unplanned KIVCET boiler repairs. Net cash unit costs were higher than the same period last year and above our annual guidance range for 2023, primarily due to the timing of sales. Our annual unit cost guidance for the year is unchanged. We Red Dog shipping season commenced on July 4. And looking forward, we expect Red Dog zinc and concentrate sales of 240,000 to 280,000 tonnes in Q3, reflecting the normal seasonality of our sales. For the full year, we have updated our guidance for lead production at Red Dog to 95,000 to 110,000 tonnes from 110,000 to 125,000 tonnes. As a result of our decision to advance the KIVCET boiler replacement at Trail from 2026 into 2024, we expect lower byproduct production and related profitability next year. Turning now to Slide 11. Strong performance and cash flow generation from our high-margin steelmaking coal operations in the second quarter further reinforce the inherent value of this business. While prices decreased from all-time record highs in Q2 last year, they remain strong and significantly above the long-term average. Production of 5.8 million tonnes was 9% higher than the same period last year, reflecting the timing of maintenance outages and improvements in productivity and reliability, despite intermittent plant reliability challenges in the quarter. The logistics chain performed well during the second quarter, drawing down steelmaking coal inventories to low levels as anticipated. Second quarter sales volumes were 6.2 million tonnes within our guidance range and similar to last year. We were pleased to enter into a long-term rail agreement with Canadian Pacific, Kansas City Limited to support the efficient movement of our high-quality, low emission steelmaking coal to global customers through 2026. We also announced jointly a unique collaboration to pioneer hydrogen locomotive technology which supports our climate action plan and the objective of achieving net 0 by 2050. Looking forward, we expect Q3 sales of 5.6 million to 6 million tonnes reflecting planned shutdowns at 2 of our operations and our low inventory levels. We expect slightly elevated transportation costs in the third quarter, reflecting the utilization of alternate port capacity to minimize the impact of the BC port worker strike in July. Nonetheless, we anticipate transportation costs to decline in the second half of the year due to lower demurrage costs. As a result, our annual transportation cost guidance is unchanged. We expect our annual production to be at the lower end of our previously disclosed guidance range of 24 million to 26 million tonnes. Moving now to Slide 12. Our financial position remains strong. Our liquidity is currently $7 billion, including $1.7 billion of cash. In Q2, we purchased approximately 1.6 million Class B shares for $85 million and paid our quarterly base dividend of $0.125 per share. We also reduced our debt through the first semiannual repayment of USD 147 million on the QB2 project finance facility. We continue to maintain investment-grade credit ratings from S&P, Moody's and Fitch. Looking ahead, in accordance with our capital allocation framework, we remain focused on balancing our investment in growth against returning capital to shareholders while maintaining a strong balance sheet. And with that, I'll turn it back over to Jonathan. Fraser Phillips: Thanks, Crystal. I would like to take a moment to touch on our progress on advancing our strategy to create value for shareholders. First and foremost, the Board and senior management remains focused on delivering the tremendous value inherent in our base metals and steelmaking coal businesses. The exciting potential we see is a testament to the incredible work our teams have done to position each business for sustainable long-term success. The Board continues to evaluate paths to unlock the full potential of our unparalleled copper growth pipeline and creates significant value and opportunity for our shareholders and all stakeholders. As previously announced, Teck continues to engage with a number of parties that have expressed interest in our steelmaking coal business. These expressions of interest demonstrate the broad recognition of the quality of Teck's high-margin, long-life steelmaking coal assets. The Board and special committee are pleased with the progress we have been making to date as we continue to move through this comprehensive and competitive review, we are focused on arriving at an outcome that maximizes value for shareholders and ensures a sustainable future for the benefit of our employees, local communities and indigenous peoples. Our steelmaking coal business is best-in-class underpinned by a high-quality reserve base with top quartile margins and a record of free cash flow generation through various commodity cycles. This business is positioned to capitalize on the global supply gap from existing mine depletion and a lack of new projects coming into production. The core business fundamentals are robust. I highlight this only to underscore our commitment to delivering the right value for our highly profitable and resilient steelmaking coal operations. We will transact only if the benefits to our shareholders and other stakeholders are clear. Now we don't intend to provide any other detail regarding the ongoing review at this time, but we'll continue to provide updates as appropriate. So turning to Slide 15. I driving organic growth through development of our copper project pipeline remains critical to our value creation journey. As I mentioned earlier, we continue to ramp up our flagship QB2 project demonstrating its ability to operate consistently to plan and significantly accelerating our copper production profile. Our pipeline of additional projects is full of high-quality assets in stable jurisdictions, and the portfolio is at an advanced state of readiness given our deliberate pre-investment. We have the opportunity to double copper production in the near term and double it again by the end of the decade to drive substantial new intrinsic value. But we will always remain disciplined in balancing the pursuit of growth with returning capital to investors in line with our capital allocation framework. Now looking at our near-term copper projects in more detail on -- we have 5 significant near-term projects to drive additional copper-focused growth, all located in well-established mining San Nicolas, Zafranal, NewRange and Galore Creek. These are diversified by jurisdiction and scale with all projects significantly less complex than Q2. In addition, they are forecasted to be low-cost operations and in many cases, already derisked through strategic partnerships. As I mentioned earlier, we significantly advanced these projects in the second quarter with the receipt of regulatory approval for Zafranal and close of the JV with Agnico Eagle and finalize the permit documentation for submission for San Nicolas. On Slide 17, Teck is pursuing an active portfolio management approach to our growth pipeline, maximizing optionality and value. With numerous sanction windows within the next 3 years, we'll be in a position to drive substantial additional growth from these development projects before the end of the decade. For each of these projects, we have significant work underway to advance development, including resource definition, engineering and design and permitting and solder engagement. We are progressing projects towards the earliest possible sanction date. We have derisked product delivery financially and operationally through a partnership approach set as our approach for the development of QB. It is important to note that this is an unconstrained view of our copper growth. In prioritizing our growth options, we will consider multiple investment criteria, including financial returns, balance sheet capacity and financing options, project readiness, project development capacity and the social, political and environmental context. Importantly, each of these projects will have to compete for capital with the rest of the business and demonstrate and generate strong returns. While permitting is a major gating factor in determining potential sanction dates we are largely in control of project timing. We will continue to apply our disciplined capital allocation framework that balances growth with returns to shareholders. Overall, Teck's copper growth pipeline is well positioned to maximize optionality and value. In closing, on Slide 18, I want to reiterate our objective to responsibly create value for shareholders. That is my job, first and foremost. And if there is 1 conclusion that I hope our shareholders will take away from this call, it is that everything we do at Teck is designed to further that goal of responsible value creation. This is our North Star as we explore a range of options to unlock the full potential of our world-class base metals business and evaluate any transaction for our high-margin steelmaking coal business. It is also our focus as we continue to execute against our copper growth strategy while continuing to balance growth with cash returns to shareholders. And we remain strongly committed to our purpose and values and to being a responsible corporate actor with good business practices. We are steadfast in our belief that behaving responsibly and thoughtfully enhances value. Operating the right way makes Teck a partner of choice minimizes disruptions to our operations and opens new opportunities for our company and our stakeholders. Teck is a fantastic company with an incredibly bright future. There is undoubtedly more work to do, and we remain both confident and excited about the potential for Teck in the future. Thank you. Operator, please open the line for questions. Operator: [Operator Instructions]. The first question is from Orest Wowkodaw with Scotiabank. Orest Wowkodaw: I was wondering if we can get some more color on the QB2 progress. We saw you disclosed production of only 3,000 tonnes in Q2, yet the comment was made in the presentation that Line 1 is operating well for expectations. Can you give us an update on what the status of Line 1 is and sort of what the issues have been? Jonathan Price: Yes. Thanks very much for the question, Orest. I'm going to hand that over to Red. Harry Conger: Orest. We've had some delays in construction and commissioning in the second quarter that we've addressed things like the required rework, some adjustments and modifications not uncommon. And as you know, we've been building and commissioning this thing all along with the thought in mind of long-term reliable performance. So we've addressed things rather than a patch them. And so now that we've got actually up and running strong in June and sending concentrate down to the port, getting it filtered, getting it off to market. We have all of those things in place now. And those adjustments and modifications that we made on line 1 have all been made on Line 2. So we're commissioning Line 2 now with the full knowledge of everything that we addressed on Line 1, and that is going very smooth, very positive for us. So we're in a situation now where the second half of the year, the productions are going to be heavier weighted towards the fourth quarter than the third quarter. But very confident that we'll be at full production rates by the end of the year. Orest Wowkodaw: Just on that Red, can you give us an idea of where throughput is right now on Line 1 in terms of tonnes per day? Harry Conger: Yes. No, we've hit design capacities for periods of time. So as you commission all of this equipment like the concentrate pipeline and the filter plant, we have to adjust throughput as we're commissioning those components. We don't have a lot of storage space either at altitude or at the port. So the throttle as we commission these other components is throughput, but when everything is wide open and running it, it runs very strong according to design, and we're very excited about the performance plan. These adjustments that we made in the second quarter, not uncommon, there were no fatal flaws, everything was sized appropriately, empowered appropriately. So those are all significant checks for us that give us the confidence that this thing will perform as designed. We've seen it for periods of time performing as designed. And as we get everything else commissioned, you'll just have more and more of those days strong together, and that's how our forecast is built. Orest Wowkodaw: And just finally, Red, what gives you the confidence, though, that -- I mean, since things are delayed and you've cut guidance for this year, what gives you the confidence of the 2024 guidance which I assume it's the low end of that 3-year of 285,000 tonnes. Like are you seeing any constraints that will impact the ramp up next year? Harry Conger: No, not at all. If we did see constraints for us, we'd be flagging those, signaling those. Again, I want to repeat the plant is very well designed. It performs as designed. We've made a lot of adjustments that are for the long-term benefit of the operation. We're not patching things or leaving things to be modified in the future where we identified them in the second quarter, address them and the run of Line 1 in June and July indicates that all of that is very strong, very sound, very solid. Jonathan Price: Yes. Thanks, Rod. And Orest, just to reiterate, overall, the reduction in guidance that we've communicated today is due to delays in construction and commissioning, not ramp up it's that, that gives us the confidence that we will achieve full rates of production before the end of this year. And that, again, is why we don't expect any impact or carryover into 2024 and why we've retained that guidance. Operator: The next question is from Carlos De Alba with Morgan Stanley. Carlos De Alba: Just on QB2, also -- when do you expect the operation to turn profitable given everything that was discussed in the previous question. Jonathan Price: Yes, Carlos, thanks very much for that question. I'll turn that 1 over to Crystal, please. Crystal Prystai: Carlos, thanks for the question. I think as we've indicated, as a result of the change in accounting treatment where we have to record the results through our earnings right from sort of get go rather than waiting until we've achieved commercial production has an impact on the profitability. We haven't really commented on or guided to what that may look like. I think we do expect QB2 to be up to those full production rates by the end of the year and expect to be generating free cash flow into 2024, but that accounting treatment is really going to preclude us from generating substantial profitability in 2023. Carlos De Alba: Understood. Crystal. And so on the expansion of QB2 now, the mill expansion, given the recent changes that haven't become law yet, but might become law soon that increased the tax royalty for copper operations in Chile. Have you now under this new paradigm, this new scenario analyze the possibility of moving ahead with this operation or with this expansion. I'm not so sure and if you could remind us, that would be great if the tax stability agreement that you have for QB2 also applies to this expansion or doesn't? Jonathan Price: Yes, good question, Carlos. We assume that the bill that's been announced will be passed into law. And therefore, of course, we've modeled the impact on that across all of our operations and future projects in Chile. We have a stability agreement in place at Carmen de Andacollo, which runs through to 2027. And as you know, we have a 50-year stability agreement for QB2. Now the design for the QB mill expansion or QBME is designed to be an expansion of QB2, not a separate project. And for that reason, we think it should achieve the same tax stability protection as that will ultimately be definitively tested through our engagement with government. But either way, Carlos, as we look at the economics of QBME with or without the stability agreement, it looks attractive. Of course, it looks more attractive if we have the cover of that agreement. And that's something we're working through now. The permit application that we submitted in the first quarter of this year, 4 QBME is running along very well. And we've had questions and queries from the relevant authorities that we've reverted on, and we see that moving along exactly as we would expect. So very pleased with progress there so far. Carlos De Alba: And if I may squeeze just 1 more on QB2. Any comments on the port and jetty and when would you expect that part of the project to be ready for you to ship the concentrate out of the country? Jonathan Price: Yes. Let me pass that 1 back to Red. Harry Conger: Yes. Carlos, first of all, just a nod to our marketing and logistics team. They've got a great set of alternate programs for us to truck concentrate out of the port. We've already proved that up. It's working well. And so we've got a strong sales mechanism in place in the interim. The Jetty work is progressing. We're wrestling away this construction project from the Wild Pacific Ocean and it's been quite an interesting project for all of us, but we're making progress and should be shipping concentrate out of our own port facility by the end of the year. Operator: Next question is from Lucas Pipes with B. Riley Securities. Lucas Pipes: Jonathan, I really appreciated your comments on the strategic side earlier today. And I know there's not -- there is a process, but I just wondered if you could maybe frame up preference on the steelmaking coal side, a partial sale, where would that fit in strategically would that solve the objectives that you've laid out? Jonathan Price: Yes. Thanks for the question, Lucas. As we said previously, we were looking for a separation here of coal from the metals business, something that would be considered simpler and more direct. We have a range of parties engaged right now who have expressed interest in the steelmaking coal business. And of course, they have a range of proposed transactions that they're bringing forward. It's a good confirmation, as I mentioned before, of the value of that business. And it's great that we have a competitive process that's running into course here. Our focus will be to maximize value for shareholders, of course, while also ensuring future for the benefit of employees, communities, indigenous groups, et cetera. There will be a range of considerations that we have to bring to the table here as we make those decisions to ensure we are taking care of all of those stakeholder groups appropriately. And that is something that we're working through right now. So we have deliberately sought to keep a very open mind here with respect to what will create the greatest value. We do that through the lens of the perspectives of our shareholders, and we look forward to speaking to them again in the coming days, post the quarter, and I'm sure we'll learn more about their views in that regard. But look, we're working very diligently through this process. I don't want to say anything now to sort of prejudge or preempt what the outcome might be. We'll take the time to get this right and do the very best we can for our shareholders, but needless to say, we're not sitting on our hands, and we're progressing this as quickly as we can. Lucas Pipes: Thank you very much for that perspective. I have a market-related question on the coking coal side is real on the call as well. Jonathan Price: Yes, Lucas. I mean we made a change, as you know, recently in the organization real after many, many, many years of phenomenal contribution here at SAC and Amster's requirement -- retirement. And we appointed Ian Anderson as our new Chief Commercial Officer. But Real is on the line, and I'm sure we'd love to talk to you about the current status and outlook for the met coal market. So Real with that, over to you, please. Lucas Pipes: I will miss your comments very much, and I wish you all the best in your retirement. Réal Foley: Well, thanks, bunch, Lucas, we appreciate your comments. So just to give you a short insight into our outlook for steelmaking coal. I guess, at a high level, if you look at the demand side, this is what is happening with coproduction, hot metal production is up 60 million tonnes when you compare it to 2019, pre-pandemic. And when you do the same comparison for coal from the key exporters, it's actually down 5 million tonnes. So that kind of puts in perspective the level of tightness that we're seeing in the market. Now more specifically steel prices are improving compared to the lows of last year. That's in response to better demand from various sectors. We are seeing some indications from China as well, and we are looking at policies to support the economy. In India, steel production is also continuing to increase towards the government's target of reaching 300 million tonnes of installed capacity by 2030, 2031. And then on the coal supply side, supply is still struggling. It's still down compared to last year. That's the fourth consecutive year reduction in terms of exports. So it remains overall a tight market. And as a result, pricing is continuing to be substantially above the long-term average going back to 2010. Lucas Pipes: Real, I really appreciate that, and I hope you keep an eye on the coking coal markets even after October, again, best of luck in retirement. Réal Foley: Thanks a bunch, Lucas. Operator: The next question is from Liam Fitzpatrick with Deutsche Bank. Liam Fitzpatrick: Just 1 quick 1 from myself. Just on the EVR sale process. I appreciate it's difficult to give much color, but there's a lot of interest in this at the moment. In terms of timing, is it your hope or your expectation that before the next set of numbers in October that we could get a fuller update in terms of your next steps on this business. Jonathan Price: Yes. Thanks for the question, Liam. We are working on this very actively right now. We're engaged with multiple counterparties, as you would imagine, there's a detailed data room and due diligence process that's working its way through, which we will run to its conclusion. As I said before, we're not sort of sitting on our hands here. We're taking a very active and diligent approach to moving this forward as quickly as we can, but also ensuring that we take time as we need it to deliver the best outcome here for shareholders and stakeholders. So I won't commit right now to timing, Liam, because, of course, that's also a function of the counterparties on the other side of this process. But suffice to say, we've been very active and continue to be very active in this world. Operator: The next question is from Lawson Winder with Bank of America Securities. Lawson Winder: Jonathan, Red, Crystal and hello Real, and congratulations on your retirement. I just wanted to hopefully ask a follow-up on the coal separation again. Just based on your conversations with potential interested minority interest, is it getting to the point where the minority interest could actually add up to a majority stake in coal? Jonathan Price: Yes. Thanks for the question, Lawson. There is a lot of interest, whether that's for the whole of the business or for components of the business. As you know, previously, with the transaction we announced earlier in the year for separation. Nippon Steel, we're active and keen at that point in time with respect to their interest. Again, there are a number of structures that we're looking at here in a number of different forms of transaction that we will have to compare and trade off against 1 another. I'm not going to preempt that now by sort of commenting on what will be more or less attractive because, of course, there's far more to it than just evaluation, as you know, in these circumstances, the allocation of risk and there's the long-term implications for the business beyond the transaction, all of which we have to be cognizant of in the decision-making process. But suffice to say, there is significant interest and it's broad-based in terms of where that interest is coming from. Lawson Winder: Okay. And then maybe just my follow-up would be on Chile. So you've highlighted again that the QVM feasibility study is expected to be completed in the second half. And so my question that would be, would you expect that to be released with Q3 '23 results? And then assuming the economics are as compelling as you currently believe they are. is the regulatory environment in Chile. Are you sufficiently comfortable with that to move ahead, whether or not you have the same tax benefits as the existing agreement with QB2. Jonathan Price: Yes, Lawson, we are working through the completion of that feasibility study, which we hope to have done in the second half of this year. So -- it certainly will be done by the end of the year. In parallel, of course, we need to get the permit or the amendment to the existing permit to allow us to construct this project. So those 2 things are outstanding before we would make any sanction decision I'm actually going to hand over to Amparo just to give you a bit of a lay of the land with respect to the regulatory environment right now. Amparo is our Vice President covering South America. At the highest level, I would just say we're pretty comfortable with it based on what we see. But let me invite Amparo to add some color to that. Unidentified Company Representative: Okay. Good morning, everybody. And yes, as Jonathan said, the regulatory process of the DIA, which is declaration of impact study is growing underway. The process has been smooth. We are now preparing the second round of answers. So we don't foresee any issues impacting the approval of that DIA. Operator: The next question is from Chris LaFemina with Jefferies. Christopher LaFemina: I have actually a couple of questions on QB2. One is just maybe more of an accounting question. In the -- so the CapEx budget or guidance for the project is unchanged at $18.2 billion. In your investing activities table in the earnings release, you showed QB2 project CapEx and you show the ramp-up CapEx. Does the CapEx for the project include the ramp-up CapEx. That's my first question. Jonathan Price: Crystal, that 1 for you. Crystal Prystai: Yes. Thank you, Chris. There is a portion of project capital that is related to ramp-up, but that separate bucket of capital that we've categorized there is really in relation to the accounting treatment and how. We have to look at those costs that we're incurring during that sort of commissioning phase and breaking those out between goes into inventory versus what goes into cost of sales and what should continue to go into capital. So those aren't included in the project piece. But when we develop that project capital budget. There is obviously some capital associated with ramp-up that was built into that. But this is really in relation to the accounting treatment. Christopher LaFemina: Okay. So the ramp up CapEx, I mean, obviously, we're very close to commissioning. But if the ramp-up takes longer than you expect today, ramp up CapEx would obviously continue to rise. But we should not look at that as being additive to the project CapEx. In other words, that's just basically pre-commercial production operating costs that are being capitalized [indiscernible]. Crystal Prystai: That's -- yes, that's the right way to think about it. And we don't guide to that number, but I don't expect that number to be substantially higher than what we've incurred already given, as you know, we're largely through the ramp-up phase. Christopher LaFemina: Got it. I'm sorry, I wasn't sure exactly how that worked. My second question is if we look at -- if we look at QB2 in its entirety, and we consider the delays in some of the CapEx increases over the life of the project. With the project -- assuming that you hit all your targets going forward in terms of production, operating cost and CapEx going forward, would it meet your hurdle rate based on your capital price assumptions? Or do you need the mill expansion now, which is obviously a much higher returning project for the its entirety to actually meet your hurdle rate. So does QB2 in and of itself meet your hurdle rate based on what you've built so far and will you expect to happen going forward? Jonathan Price: Yes. Thanks, Chris. Of course, 1 of the major changes that occurred since we started building the project is the long-term outlook for copper prices. When this was sanctioned and based on the returns we communicated at the time we were using $3.15 for the long-term copper price here. Now there's a range of views as to what that price should be in the future, but I think everybody recognizes that, that wouldn't be sufficient to incentivize the capacity that we're going to need to even go some way to filling the expected gap between supply and demand a few years out. So that's a long way of saying, if you look at the additional CapEx that we've incurred if you factor in some inflation in unit costs, which we, of course, have communicated is really updated our own unit costs for the market. You can still get a very strong return on QB2 using quite a reasonable copper price. So the answer is yes. But in addition to seeing inflation in operating costs, exceedances in CapEx, you have to adjust the copper price assumption commensurately to go with that. But it is still a project that looks good in its own right and doesn't require the mill expansion to make the economics work. Operator: The next question is from Bryce Adams with CIBC. Bryce Adams: I wanted to ask on NewRange listed as a copper growth opportunity on a few slides. So just an update on the permitting process. I think the water permit was revoked in May, but was that an air permit as well? A rundown on the permits that would be appreciated. And then if permitting is a current hurdle should NewRange be moved from a near term to a longer-term opportunity? Jonathan Price: Yes. Thanks for that, Bryce, I'm going to hand you over to Tyler Mitchelson, who's our SVP of Copper Growth and of course, is very close to that situation with the permit that you're referring to. Tyler Mitchelson: Thanks for the question. Yes, the 404 permit was the wetland permit, which is essentially the water discharge permit and it was being contested in court. And in the end, we got the decision in May that, that was revoked by the Army Corps of Engineers. So right now, taking a bit of a step back to understand what is the pathway forward to get that permit reinstated. So there's multiple approach to that, including engagement with stakeholders, particularly the First Nations groups there as well as the EPA and the Army Corps of Engineering and state and federal regulators to understand what is our pathway forward from that. So we don't have a definitive answer, but it is a critical permit for us to be able to move forward with the project. Bryce Adams: So putting it all together, do you think that it would be -- that asset could be in production this decade? Or is it going to the next decade? Tyler Mitchelson: Very difficult to say at this point in time. As this as stated by a number of people, this is a bit unprecedented in the U.S. to actually revoke a permit in the context of no violations to the permit conditions or anything. We're in a bit of uncharted territory right now. So over the next few months, we're going to work through what is the pathway forward, and we'll be able to have a much better sense for what the time line is on the project. Bryce Adams: Okay. And sorry if I was paying off... Jonathan Price: No, I was just going to say, Bryce, I mean I think similar to many of the projects we have. And this is common across every operator in the industry is that the permitting piece is 1 of the greatest uncertainties that to a certain extent is beyond our control. it's an advantage, therefore, to have multiple projects because of those time lines, as you identify, we're therefore very happy to have the Zafranal permit in hand. We will submit the permit for San Nicolas shortly. And of course, we have the BMA permit in Trail, as Amparo described and is moving along well. Ultimately, even with permits in hand, we still then have to look at how we optimize the development of capital in such a way that it leaves space for return to shareholders and that we're directing the organization's project capacity, project construction capacity and those things that will generate the highest returns. So just having a permit per se does not necessarily guarantee that any project would be the first cab off the rank because we will always take a portfolio perspective to the way we deliver the greatest value. Bryce Adams: Okay. Maybe just a last one, a follow-up on these projects. But on that waterfall chart in Slide 15, how do you see like when you're preparing that chart, we're trying to put on the left, is that like the most probable project to be advanced? Or is it just more random? Jonathan Price: Yes. I mean I wouldn't read into it necessarily in that first phase where you see those 5 projects of San Nick, QB mill expansions Zafranal, et cetera, because, of course, Zafranal is the 1 where we have a permit, but it's Zafranal we're redoing feasibility and we've got some engineering to be done. San Nicolas, we haven't yet put in the application for the permit and QB mill expansion, of course, we're somewhere between the 2. So I wouldn't read into that too definitively in terms of the sequence in which these things happen. The point we're trying to communicate here is all of these things are in the mix in what we would call the near term here from a project development capability and delivery. And we will look at that on a portfolio basis across some of the range of factors I referenced in my remarks earlier. But it's a great position to be in because of the risk of things like permitting, having multiple projects here that we can accept 1 moving back in time because there'll be others that still exist in that close time frame gives us the option to continue to invest in growth, whereas if we were a single project operator or even a 2-project operator, that might be a very difficult thing to achieve. Operator: The next question is from Timna Tanners with Wolfe Research. Timna Tanners: I wanted to follow up on that last question, just to understand Slide 16 on those cash costs. If you could just remind us when they were last updated and if it wasn't that recently, like what you think they might look like roughly, if you were to update them just high level? Jonathan Price: Yes. Thanks, Timna. Tyler, do you want to comment on those? Tyler Mitchelson: Yes, those cash costs, they are from the most recent studies that we have done. Now some of those are dated. And as we're moving through, as Jonathan saying, we're moving through feasibility updates and for the majority of these projects, and we'll update those as we complete the final feasibility numbers. But as noted, you are seeing inflationary impacts across the board. So we anticipate those will go up, but I can't tell you what they are at this point in time. But we'll have much better information as we work through the feasibility and the study process and update. Timna Tanners: Okay. Fair enough. And other question is just for Crystal. I wanted to touch base on the working capital just because it continues to see pretty high inventories. And just I'm assuming, of course, that has to do with the QB2 ramp up. But how do we think about the cadence of that normalizing because the working capital use haven't reversed as much as we might have expected. So any timing guidance there would be great. Crystal Prystai: Thanks, Timna, for your question. You're correct. There is a build in working capital in relation to QE. So I think you can expect that to come down over time or the rest of the year. SP-4 Okay. Great. Thanks again. Operator: I will now hand the call back over to Mr. Price for closing remarks. Jonathan Price: Thank you, and thanks to everyone for joining us today. As ever, if you need further details or context here, please reach out to the IR team. They will be very happy to help. And we look forward to seeing you all soon. So thank you very much, and have a good day. Operator: This concludes today's conference call. You may disconnect your lines. Thank you. Thank you for participating, and have a pleasant day.

Operator: Ladies and gentlemen, thank you for standing by. Welcome to Teck's First Quarter 2023 Earnings Release Conference Call. At this time, all participants are in listen-only mode. Later we will conduct a question-and-answer session. [Operator Instructions] This conference call is being recorded on Wednesday, April 26, 2023. I would now like to turn the conference call over to Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analyst. Please, go ahead. Fraser Phillips: Thanks, Therese, and good morning, everyone, and thanks for joining us this morning for our quarterly conference call. Please note, today's call contains forward-looking statements. Various risks and uncertainties may cause actual results to vary. Teck does not assume the obligation to update any forward-looking statements. Please refer to Slide two for the assumptions underlying our forward-looking statements. In addition, we will reference various non-GAAP measures throughout this call. Explanations and reconciliations regarding these measures can be found in our MD&A and the latest press release on our website. Jonathan Price, our CEO, will begin today's call with some comments on this morning's announcement. Crystal Prystai, our CFO, will follow with our first quarter 2023 results. Then we'll conclude the call with a question-and-answer period. With that, I will turn the call over to you, Jonathan. Jonathan Price: Thank you, Fraser, and good morning, everyone. Before we get into the Q1 results, I want to start by speaking to our announcement this morning that we have withdrawn the separation proposal that was to be considered by shareholders at our annual and special meeting today. That proposal was the result of a detailed process undertaken by a special committee of the Board to review all the options and identify the best path forward for our shareholders and company. From the outset, we've been clear that the focus of that work by our Board, our senior management team and myself is maximizing value for our shareholders. And that work firmly identified that separating base metals and steelmaking coal was the best way to achieve that goal. There is no doubt in my mind all the minds of our Board and management team that there is greater value and optionality in having a stand-alone pure-play metals business, separate from the steelmaking coal business, and we are confident from our discussions with shareholders that a substantial majority of shareholders support the strategy of separating Teck Metals and EVR. At the same time, we've also heard very clearly that some shareholders would prefer a more direct approach for that separation. So our plan going forward is to evaluate alternatives for a responsible separation of our businesses, taking into account the feedback we've received. Our goal will be to pursue a simpler and more direct separation, which is the best path to unlock the full value of Teck for shareholders. My job is about responsibly creating value for our shareholders and all stakeholders. We're driving intrinsic value organically through the development of best-in-class projects and executing on our growth strategy. There is real value in being a good actor with good business practices and the approach to doing business has made Teck a partner of choice, minimizing disruptions to our operations and creating opportunities for our business and our stakeholders. Teck is a fantastic company with a strong future. We have the right assets, the right partners and the right people to capture the opportunities created by the energy transition, which we are well-positioned to realize in the near-term. And we have a number of near-term value creation milestones ahead of us. Those include the ramp-up of our flagship QB2 copper project, demonstrating QB2's ability to operate consistently to plan is a key area of focus for us and a major value inflection point. Importantly, even beyond QB2, we have a portfolio of high quality cornerstone assets in stable mining jurisdictions as well as a number of copper growth projects in our portfolio. And this is a copper growth pipeline that is the envy of the industry and in an advanced state of readiness thanks to years of strategic and deliberate pre-investment. We will be in a position to double copper production in the near-term and double it again by the end of the decade. At the same time, our steelmaking coal business is best-in-class, underpinned by an extensive reserve base with high margins, and it will be positioned to capitalize on the developing global supply gap from existing mine depletion and lack of new projects coming into production. Long-term shareholder value can be created in a variety of ways. And today, we are focused on a three-pronged approach to value creation. Firstly, through a separation of resources to unlock the value of an exceptional high growth base metals business. Secondly, through the development of our portfolio of corporate projects, to create substantial new intrinsic value. Thirdly, and all the while retaining our focus on strong cash returns to our shareholders. Beyond this focused approach, M&A can also play a role in creating value when done at the right price with the right partner at the right time. We have premium businesses. And when it comes to M&A, we firmly believe that competition for assets drives value. In M&A, you have to carefully evaluate both risk to value and timing and value. It is important to understand the consideration you would receive and the timing of when you would receive it. All of these factors inform our thinking as to how and when Teck should contemplate a transaction with anyone. Management and the Board take their duties incredibly seriously, but will not engage on something that is a distraction from our mandate to create the greatest value with the greater certainty for our shareholders. I want to emphasize that we have greatly appreciated the engagement that we have had with our shareholders leading up to today and the very strong support shown for the goal of separation to unlock value. And we look forward to working to execute on a separation approach that reflects their considered feedback and ensure we maximize the value and opportunity it creates for all of our stakeholders. So thank you. And with that, I will turn it over to Crystal to discuss our Q1 results. Crystal Prystai: Thanks, Jonathan. Starting with our financial results for Q1 on slide 8. We're pleased with the positive start to the year. We delivered strong financial performance in the quarter with strong commodity prices and steelmaking coal sales volumes. Adjusted EBITDA was $2 billion and adjusted profit attributable to shareholders was $930 million, or $1.78 per share on a diluted basis. We paid dividends of $0.625 per share in the quarter, representing a quarterly base dividend of $0.125 and a supplemental dividend of $0.50 per share. Additionally, in February, the Board authorized the purchase of up to $250 million of outstanding Class B shares. Turning now to slide 9. During the quarter, we significantly advanced our comparable strategy with the production of first bulk copper concentrate at QB2. We are just getting started on unlocking the tremendous value from QB, which is truly a world-class mine. We achieved a number of significant milestones in the quarter in the QB2 ramp-up. The desalination plant is operational and producing water, which is being delivered to the concentrator through the water pipeline. The primary crusher and conveyors are delivering ore to the stockpile. Commissioning of the grinding and flotation systems on Line 1 are ongoing. The tailings facility has received tailings from commissioning activities and the concentrate transport system is in pre-commissioning. We continue to expect to double our consolidated copper production in 2024 as QB2 is expected to reach full production rates at the end of this year. However, the result of the delay in the startup of Line 1 and recent foreign exchange impacts have put pressure on our project capital cost guidance. Significant efforts are ongoing to alleviate these cost pressures. However, total capital cost for the project could increase to US$8 billion to US$8.2 billion. Over 30% of the increase from our previously disclosed guidance relates to non-controllable foreign exchange impacts. Turning now to Slide 10 with the key highlights from our first quarter. We highlight the achievements on Slide 10 across all four pillars of our copper growth strategy in the first quarter. First, in addition to production of first copper at QB2, we meaningfully advanced the path to value for our other copper growth projects in our portfolio. In particular, we successfully closed two significant transactions relating to the joint venture partnerships for new range and San Nicolas.\ At the same time, we marked a step change towards the rebalancing of our portfolio of high-quality assets to low-carbon commodities with the closing of our previously announced sales of Quintette and our interest in Fort Hills. The latter completes our successful exit from the oil business. Third, and as I mentioned previously, we returned significant cash to shareholders through dividends and have authorization for 250 million of share buybacks. This reflects a distribution of 40% of the Fort Hills proceeds received in the first quarter. We continue to maintain a strong balance sheet with liquidity of $8 billion, including $2.6 billion of cash. And finally, we continue to build on our strong sustainability track record. We were honored to be recognized as one of the Global 100 most sustainable corporations by Corporate Knights for the fifth consecutive year, and we are pleased to be named to the Bloomberg Gender Equality Index for the sixth consecutive year. We've outlined the key drivers for our profitability on Slide 11. Adjusted EBITDA was $2 billion in the quarter and lower than the same period last year as a result of lower prices for our principal products. To a lesser extent, lower sales volumes for copper and zinc, and inflationary pressures on our unit costs also impacted EBITDA as compared to Q1 of last year. Inflationary cost pressures have moderated but continued to have an impact across our business units in the first quarter, as we expected would be the case when developing our 2023 annual cost guidance. Inflation impacted our operating cost by 6% when comparing to the same period last year. It is important to note that the primary drivers of cost increases are not related to key mining drivers such as mine productivity and strip ratio, which both remain relatively stable. We remain highly focused on managing our controllable operating expenditures, and our unit cost guidance is unchanged across our business units from our previously disclosed ranges for 2023. Turning to -- looking now at each of our business units in more detail and starting with copper on slide 12. Copper prices remained elevated despite the decline in the quarter, reflecting the continuing strong underlying market fundamentals. Copper production was lower than the same quarter last year, primarily due to harder ore and lower grades at Highland Valley and lower grades at Antamina as anticipated. An unexpected five-day suspension of operations at Antamina due to severe weather in late March impacted our Q1 production. Overall, full year production and unit cost guidance remain unchanged. Turning to zinc on slide 13. During the quarter, severe weather events impacted zinc concentrate production at Red Dog and refined zinc production at Trail. Additionally, Trail was impacted by unplanned maintenance as well as a 22-day shutdown for KIVCET boiler repairs. Both Red Dog and Trail have returned to stable operations by the end of the quarter. And looking forward, we expect Red Dog zinc in concentrate sales of 45,000 to 55,000 tonnes in the second quarter, reflecting the normal seasonality of our sales. Turning now to steelmaking coal on slide 14. Prices remained well above historic averages despite the decline in the quarter. Sales were 6.2 million tons within our guidance range and above the same quarter last year. Logistics chain performance continued to be impacted by the weather-related disruptions from the fourth quarter of last year, but had substantially recovered by the end of the first quarter. Our transportation costs in Q1 reflect higher rail rates and port costs as a result of increased utilization of third-party terminals. We expect transportation costs to normalize throughout the balance of the year, and our transportation unit cost guidance is unchanged for 2023. Looking forward, we expect Q2 sales of 6.2 million to 6.6 million tonnes as we complete the balance of deferred sales from the fourth quarter and reduce our clean coal inventories to normal levels. As illustrated on slide 15, our financial position remains very strong. Our liquidity is currently $8 billion, including $2.6 billion of cash. In the first quarter, we returned $321 million to shareholders through dividends and we reduced our debt levels by $144 million with the redemption of notes upon maturity in February. Our Board also authorized $250 million of share buybacks in February under our normal course issuer bid. Looking ahead, in accordance with our capital allocation framework, we remain focused on balancing our investment in growth against returning capital to shareholders while maintaining a strong balance sheet. And with that, I'll turn it back over to Jonathan. Jonathan Price: Thanks, Crystal. Now, on slide 17, I want to close by reiterating that our plan going forward is to evaluate alternatives for a responsible separation of our businesses, taking into account feedback we've received. Our goal will be to pursue a simpler and more direct separation, which is the best path to unlock the full value of Teck for shareholders. At the same time, we will continue to execute our copper growth strategy. We will advance our copper growth portfolio, which is the envy of our peers, commissioning and ramp-up of QB2 will, of course, be a key focus. We will rebalance our portfolio to copper while reducing the proportion of carbon in our overall business. And we will continue to follow our rigorous capital allocation framework, balancing growth and cash returns to shareholders. And at the same time, we will maintain our leadership in responsible resource development, drive best practices in sustainability and share in the benefits of mining with our stakeholders. Overall, Teck is very well positioned to drive long-term sustainable shareholder value. So thank you. And operator, please open the line for questions. Operator: Certainly. [Operator Instructions] The first question comes from Greg Barnes with TD Securities. Greg Barnes: Jonathan, now that you've been through this process, do you think investors recognize the value in the coal business and we're willing to take on our largest share individually of that coal business rather than, obviously, with the complicated transition capital structure now something that's cleaner and more direct. After you've got two, I guess, independent valuations on that business of around CAD 11 billion. So that's what the market is telling you it's worth. Do you think investors will be willing to accept that valuation directly? Jonathan Price: Thanks for the question, Greg. Look, the first thing I would say is it's very clear that the market recognizes the value of the businesses that comprise Teck resources today. One of the benefits through the engagement we've had with investors over the last few months is it has strong a light on the quality of the business we have today, but also the quality of the growth projects we have before us. The other thing we've heard clearly from our shareholders through this process is they do see the value in a separation of Elk Valley resources and Teck Metals as being the most value-creative path in terms of shareholder value. But what we've heard, as you just referenced, is that they would like to see a simpler and more direct separation. And that's exactly what we will now go away and study. We'll look at a range of alternatives there with a focus on maximizing shareholder value and work through those details. I think there's no doubt Greg, that through this process, the quality of Teck steelmaking coal business or Elk Valley Resources has been very, very well recognized in terms of the quality of the products that we produce in terms of the high margins at which that business operates and the cash flow that's generated. So yes, there is clearly now a far enhanced understanding of the value of that business. And again, we continue to believe that the best path to unlock value is the separation of that business from Teck Metals. Greg Barnes: Great. Thank you, Jonathan. That's it for me. Jonathan Price: Thanks, Greg. Operator: And the next question comes from Orest Wowkodaw with Scotiabank. Please go ahead. Orest Wowkodaw: Hi, good morning. Jonathan, just following up on Greg's questions. In terms of separating the business, can you run through the possible alternatives that you're considering? And would they include potentially a full spin out of the coal business to shareholders, or is another alternative of sale of the business? Jonathan Price: Thanks for that question, Orest. Look, I won't run through all of the options available to us today. But suffice to say, we will look very broadly at the full suite of options that would satisfy both the simpler and more direct separation of these businesses. Of course, that work has to be undertaken by the management team and with the Board. And that is the focus, as I've said now going forward. And of course, when that work is advanced and concluded we will say more about that. I think what's really important to note is that we will continue to work with our shareholders to get their perspectives and understand their feedback as that work progresses. Orest Wowkodaw: Can you -- just as a follow-up, can you give us an expected time line on how long you think the Board and management needs to review and come up with a new separation strategy? Jonathan Price: As I said, we look at a range of alternatives, Orest. I won't put a fixed date on that right now in terms of when we will communicate more about that. As you can imagine, this work will be a priority for us, but we need to ensure we take the time to engage with shareholders to understand their perspectives and come back with a proposal that meets those needs and is focused on maximizing shareholder value through unlocking that value with the separation of EVR and Teck Metals. Orest Wowkodaw: Okay. And just one more, if I could. Just given the public separation plan that's been in front of shareholders, have you been approached at all by another party to buy the coal assets. Can you give us any sort of color there? Has there been interest in the market? Jonathan Price: So look, I won't speculate in any detail on that, Orest, as you would expect. But again, suffice to say that the process we've been through over the last two months, which, of course, has been a very public one has a significant interest in both businesses, EVR and Teck Metals. And it's very clear that the value of those businesses is well recognized. And hence, the value of Teck Resources is very well recognize. So we've been greatly encouraged by that, and it really has shown a spotlight on the quality of the business that we have here as well as the growth options that we have ahead of us. Orest Wowkodaw: Thank you, Jonathan. Jonathan Price: Thanks, Orest. Operator: The next question comes from Emily Chieng - Goldman Sachs. Please go ahead. Emily Chieng: Thanks, Jonathan and Crystal. My question is around a follow-up on the separation that has been proposed. I guess, is there a sense of urgency in getting a separation done this year, or could you wait until QB2 becomes more flow generative and you've got further deleveraging at the corporate level before you could approach that next restructuring process? Jonathan Price: Yes. Thanks for that question, Emily. As we look through the alternatives here that we will have for a simple direct separation. Of course, one of the things we will consider is timing as part of that proposal in terms of what would be optimal to maximize shareholder value. Again, as I mentioned with respect to Orest question, I won't give any more details now on exactly what that timing would look like. But -- to your point, we will consider timing is a key factor here in terms of how to maximize value for our shareholders. Emily Chieng: Great. And then a follow-up on QB2 actually. I was curious around the update around the jetty construction and when we should expect to see that come online and therefore, when we would expect logistical costs start ticking down for that asset? Thank you. Jonathan Price: Yes. Thanks, Emily. On that point, I'll hand over to Red Conger, our Chief Operating Officer, to make some comments. Red Conger: Yes. Thanks, Emily. The jetty itself is the longest critical path to be completed later this year. Our logistics team has come up with a – a really creative way to sell our concentrate up until that construction is completed. So we will be able to ship and sell concentrate starting later this quarter for the remainder of the year until the jetty is completed. Emily Chieng: Great. Thank you. Operator: The next question comes from Carlos Alba with Morgan Stanley. Please, go ahead. Carlos Alba: Yes. Thank you. Good morning, everyone. The question I had is on QB2 CapEx increase. I just wanted to go back and check what are the FX assumptions that are underneath the original CapEx, I thought it was CLP775 per dollar. We have been above that level and my understanding was that a weaker peso would favor the company. So, yes, if you could provide maybe a little bit more color around that, that would be great. Jonathan Price: Thanks for the question, Carlos. I'll hand you over to Crystal for that one. Crystal Prystai: Hi, Carlos. Thanks for the question. Just in relation to the 775 that you're referencing, that was an old FX assumption. When we updated our guidance in the third quarter, we used a range of $900 million to $975 million and the new estimate of CapEx is based on an $800 million to $850 million. So you're seeing actually a strengthening of the peso, not a weakening, and that's the result of -- or the impact is the CapEx increase. Carlos Alba: That's very clear. And just a follow-up, any color on the timing of the remaining disbursement? Crystal Prystai: Yes. I mean, it will be spent over the remainder of the year that -- and probably a little bit into the next year. The to-go capital based on that updated guidance range is US$800 million to US$1 billion. So you can expect that to be spent over the rest of the year and probably some of that will move into 2024 as we finalize. Carlos Alba: Thank you very much. Got it. Thank you. Operator: The next question comes from Brian Macarthur with Raymond James. Please, go ahead. Brian Macarthur: Good morning. As you look at potential options going forward for the call, obviously, shareholder opinion is very important, but you also have partners at the end of the day. Is there anything -- and one of the unique things about EVR is you kind of restructured the call and made it a lot simpler. Is there anything you see that will be a challenge going forward in your partners as you go down this route? I mean, you talked about shareholders who want a clean split? Do your partners want a clean split too, or can you comment on that? Jonathan Price: Yes. Thanks for the question, Brian. Look, we have a very good relationship with both POSCO and NSC and of course, we worked with them for many years and including recently through the recent proposal that we put to shareholders, we'll continue to engage with them and have been doing so. Of course, we expect them to remain very supportive of the business. And, of course, we'd like to have them remain involved going forward. And those conversations, of course, will evolve as we work our way through the range of alternatives for the separation of steelmaking coal from base metals. Brian Macarthur: Great. Thanks very much. Operator: The next question comes from Shane Nagle with National Bank Financial. Please, go ahead. Shane Nagle: Just to confirm on the QB2 with the capital cost increase. Now that the concentrate is up and running, is any other further delays or cost creep going to be classified under operator to this point, or can you provide any color on maybe where things are at with commissioning the second line and how you may anticipate those costs going forward? Jonathan Price: Thanks Shane. That's a good question for Crystal. Crystal Prystai: I will probably pass the line to ramp up to Red, but I'll take your first -- the first part of your question. We do have to continue to consider costs as whether they are operating costs versus capital costs. Project capital guidance is based on what we've disclosed and the operating costs will just -- it depends on how the ramp-up goes and our allocation of those costs to the inventory that's being sold and we haven't provided guidance on that. So, maybe I'll turn it to Red to give you an update on the line to ramp-up timing. Red Conger: Yes. Shane, so where we're at right now, we've just completed run on all notes. It now requires retorque or to be ready to run long-term. So, that is to point to entail a full project shut down here to do that work and various other maintenance things that we've identified running Line 1. So, when that comes up, in a week or so, Line 1 is ready to run both ball mills are commissioned and running will be going into cleaner flotation and essentially moving that construction workforce off of Line 1 substantially and on the Line 2 and be working diligently completing Line 2 the remainder of this quarter. Shane Nagle: Okay, great. Thanks. And then just one more maybe just on the separation, the both for the dual-class sunset. I just want to confirm that that's going to be disclosed a little bit later as well. Jonathan Price: Yes. That vote will proceed, and then we'll be sited at today's annual general and special meeting. Shane Nagle: Okay, great. Thank you. Jonathan Price: Thanks Shane. Operator: The next question comes from Lawson Winder with Bank of America Securities. Please go ahead. Lawson Winder: Thank you operator. Good morning Jonathan and Crystal. I just wanted to follow-up on some comments you made in your prepared remarks, Jonathan, on value coming from a competitive process. And clearly, you indicated that you prefer that process to come after a spin. But I guess I would just ask you the question like, is why couldn't that process create the most value prior to a coal separation, like potentially, there's a buyer that could actually address the whole separation more effectively? Jonathan Price: Thanks for the question, Lawson. I mean I think we've always been clear here that there will be more options to create value post the separation than pre. And that is a function of competition. as we see the situation today, of course, we have had one proposal that we have considered that we've considered to be forward with material execution risks for shareholders. That doesn't represent a competitive environment, and that doesn't, of course, therefore, represent an opportunity to create the most value for our shareholders. As I said, we continue to believe there will be more options to enhance value post separation. That's why we continue to look through the range of alternatives to conduct a separation in a simpler and more direct fashion. Lawson Winder: Okay. Thanks for that. Maybe I'll just sort of follow-up on that and get one sort of a different way, which is, is it the case then that there was only one proposal that on the table prior to the coal spend? Jonathan Price: As you've seen in our communications, there is one proposal that we have received, evaluated, and rejected due to the flaws contained in that proposal. As we have discussed previously, we expect there would be significantly more interest in the businesses on a stand-alone basis than as component today. And that is one of the reasons we continue to believe that separation is the right path forward here. More importantly, we think there is value to be created through the separation as we can unlock the full potential of Teck Metals, in particular, with respect to the pipeline of copper growth projects that, that business contains. Lawson Winder: Fantastic. That's super helpful. And if I could just ask one simple, sort of, like accounting question. What is the CLP assumption on OpEx for the QB2 guidance for long-term? Thanks very much. Crystal Prystai: Lawson, we'll have to follow-up with you separately on that one. I don't have that one at my finger tips. Lawson Winder: Okay. Thank you. Jonathan Price: Thanks Lawson. Operator: The next question comes from Lucas Pipes of B. Riley Securities. Please go ahead. Lucas Pipes: Thank you very much, operator, and good morning everyone. Jonathan, my first question is also on the separation. I'm sure that before you went down the path with the TCS and EVR as you have proposed, you carefully evaluated like a clean spin where you would separate the coal business without cash flow, royalty, preferred equity structures, et cetera. What were the reasons you choose not to do that at that time? Would really appreciate your perspective on that. Jonathan Price: Yeah. Thanks, Lucas. I mean, I think as we've communicated over the past couple of months since announcing the proposed separation, we were trying to balance a number of competing factors here, which included the resilience of the valuation of the coal business and ensuring that was reflected and protected, looking for mechanisms to fund the very exciting pipeline of copper growth projects that we have in the base metals business, undertaking a separation in a responsible way and, of course, all the time with a focus on maximizing our value creation for our shareholders. When we looked at that proposal, we believe that the separation as we proposed back on the 21st of February provided an optimal balance of those competing factors to unlock that value long-term. Now clearly, in the engagement we've had with our shareholders and in listening to our shareholders, they have been strongly supportive of the path forward to separate EVR from Teck Metals, but they have told us that they would like to see a simpler and more direct structure to achieve that. So we take that feedback on board, and we will work that through to come forward with alternative proposals in due course. Lucas Pipes: That's very helpful. Thank you. And then turning to operations for a moment. You mentioned in the release that the workforce in the Elk Valley is still a priority. And I wondered if you could touch a little bit on the staffing levels today and what has been an impediment to reach full staffing levels to date? Thank you very much for your perspective. Jonathan Price: Thanks, Lucas. I'll hand you over to Robin Sheremeta, the SVP of our Coal business. Robin Sheremeta: Yeah, thanks. We've been actually on a pretty good track to bring our operating workforce back up to the full complement. So we've got enough operators, enough staff. I think the area that we're probably the most exposed right now is on the heavy-duty mechanics, so a very specific trade area, and we're working hard on that and making some progress. But that's probably the biggest risk we have rate loans. It's just simply the heavy-duty mechanics side to production in the future. So we supplement that with contractors, so we have some options, but that's really our biggest risk right now. Lucas Pipes: Thank you very much for all the color and again, continued best of luck. Jonathan Price: Thanks, Lucas. Much appreciated. Operator: And the next question comes from Alex Terentiew with Stifel. Please, go ahead. Alex Terentiew: Hi, everyone. So, I just wanted to go back to the separation question a bit once more. And maybe just ask a different way here. Now that you've gone through this process, really, what are your -- I understand maximizing shareholder value is key. But with that in mind, what are your objectives for separation? I mean, obviously, the past plan still had the 90% of free cash flow from the coal business going to the TCS and that was going to be there to fund the growth of the copper business. I'm just trying to think of going forward, what is kind of the main objective that you and the key shareholders that you've spoken to have decided upon would be a better alternative? And the second question, with the separation now off the table, the EST, or the original plan off the table, the Environmental Stewardship Trust that was in the prior plan, which was up to $2 billion or so in payments over the next many years and the Nippon investment. Are those -- I just want to confirm where those stand. Jonathan Price: Yes. Thanks, Alex, for those questions. So, to your first point with respect to the objectives here, it boils down to maximizing shareholder value. And there are, of course, as I mentioned before, a number of competing factors with respect to that, and it's about reevaluating that balance to ensure that any separation is progressed in a more simple and direct manner. The other thing, of course, that will always factor into our considerations around the structure of separation will be to do that in a responsible way that is taking care of all stakeholders associated with our business. So they will remain front and center, and we will look broadly at a range of alternatives that meet those criteria. With -- to the Nippon investment and the creation of the EST, they were specific components of the proposal that we put forward on February the 21. And as we undertake a review of a simpler and more direct approach to a separation here, then, of course, we will have to take those factors into account and determine what is most appropriate in a future separation. Alex Terentiew: Okay. And then just -- I'm going to ask this question to see if I can get an answer. But you noted at the beginning, you noticed substantially majority of the shareholders voted -- or sorry, were in favor of a separation. Any -- are you willing to kind of give us a few details on what the vote was looking like. Obviously, that is now not going to be completed, but curious if there's any indication where you can give us kind of what shareholders were saying before today. Jonathan Price: Look, so we didn't proceed with the vote, so we won't have final numbers on a voting result, but our tracking showed that we weren't going to achieve the 66 and two-thirds percent threshold that we needed for approval in this instance. Of course, I won't comment on the voting positions of individual shareholders through this process. However, overwhelmingly, the feedback that we've received is a separation of EVR and Teck Metals was favored as a mechanism to create value for shareholders and hence, why we've elected to go back and figure out the best way to do that, through a lens of doing this in a simpler and more direct way. Alex Terentiew: That’s great. Thank you. Jonathan Price: Thanks, Alex. Operator: And the next question comes from Timna Tanners with Wolfe Research. Please go ahead. Timna Tanners: Yes, hey thank you and good morning. Wanted to ask regarding the discussion of new mining laws in Mexico, the implications for San Nicolás as you go through your copper growth portfolio. The last version I saw had it first in line, so would love to hear the implications or your thoughts on any factor there? Jonathan Price: Thanks Timna. I'm going to pass you over to Tyler Mitchelson, SVP of Copper Growth. Tyler Mitchelson: Good morning. Thank you. Look, we continue to review the proposed legislation. Right now, it's gone through the lower house, and there's been a number of changes from the original proposal. Right now, based on our preliminary estimates, it's not going to have a material impact on the development of San Nicolás, but we continue to work through the details to understand what the implications could be. Timna Tanners: So, sorry, did I understand not expecting it to change your pipeline or your timing, but maybe the returns might be different or I'm sorry if I understand your answer. Tyler Mitchelson: No. Right now, we don't anticipate it changing any of the timing or the impacts of the returns. There's no financial implications to the proposed changes in the legislation. And we believe the fact that we've got a concession already there won't be any implications going forward. Timna Tanners: Got it. Thank you. Just want to ask kind of a simple high-level question. On the coal split, but clearly, unfortunate timing with regard to what the coal price was doing while you were in negotiations or pitching the split. How much do you think that was a factor? And what coal price do you think investors are looking at relative to where it's been historically? Thank you. Jonathan Price: Timna based on the feedback we've received, I don't think the coal price has any impact on those discussions. The focus, as I've said, has been around supporting a separation, but a desire to see that done in a simpler and more direct manner. Coal prices, as we know, will move up and down, and it hasn't been part of the conversation that we've had here over weeks and months. Timna Tanners: Okay, great. Thanks again. Jonathan Price: Thanks Timna. Operator: The next question comes from Dalton Baretto with Canaccord Genuity. Please go ahead. Dalton Baretto: Thanks. Good morning Jonathan. I want to start again by asking about the separation. This range of alternatives that you're going to work through, is this a subset of the range you've already looked at, or did something fall through the cracks that you're going to start evaluating right now? Jonathan Price: Look, we looked extensively around the best mechanism to optimize the portfolio and to create value for shareholders, and that was work done with the Board over the last two to three years. There were a number of options evaluated there. We will relook at those options again to see if they meet the criteria of doing this in a simpler and more direct manner. We'll also though to see if there are other opportunities that weren't considered previously, perhaps in light of a change in market conditions or whatever that might be. But the key driver, Dalton, behind this evaluation and the work that we will do is the feedback that we've received here from our shareholders. And we look forward to continuing to engage with our shareholders here. We'll continue to listen to their feedback and we will incorporate that into the work that we have ahead of us. Dalton Baretto: Okay. Thanks. And then maybe just following up on a previous question there and kind of in the same vein here. How important now is managing Teck Metals balance sheet and capital allocation framework as you work through this range of criteria? Jonathan Price: Look, I mean I think it's always important, of course, the balance sheet to underpin a growth portfolio. And it's always important to make sure we can continue to return cash to shareholders on an ongoing basis to reward them for their ownership in the company. So those things will remain a priority for us here as we look to build out and realize substantial intrinsic value from the pipeline of projects that we have in the portfolio. Dalton Baretto: Thank you. And maybe just one last one for me. On the assumption that you come up with a structure that passes the vote. Can you maybe speak to the appetite of the Board and the Class A's to look at bids immediately post separation versus waiting for a period until your growth pipeline progresses? Jonathan Price: Yeah. I'm not going to speculate on that, Dalton. Our focus is to find a way to work through a separate here that will maximize value for all shareholders. As I've mentioned before, the priority with Teck Metals is the development of that unrivaled suite of copper projects that we have with QB2 ramping up to full capacity this year, doubling our copper output and then a range of projects, including the QB mill expansion, San Nicolás, Zafranal, hot on the heels of that to allow for investment in high-return growth projects. So that's the focus here. Dalton, and I can't speculate on what may or may not happen beyond that. Dalton Baretto: Thanks, Jonathan. That’s all from me. Jonathan Price: Thanks, Dalton. Much appreciated. Operator: I will now hand the call back over to Mr. Price for closing remarks. Jonathan Price: Thank you very much. I'm just going to make a few brief closing comments here. This process we've undertaken over recent months has really shown a bright light on the tremendous value of Teck, both for our shareholders and other stakeholders. It's shown a light on world-class operations, an industry-leading copper growth pipeline and our focus on responsible and ethical ESG performance, all of which contribute to an incredible value proposition and a bright future ahead. I will just close then by reiterating that our plan forward is to evaluate alternatives for a responsible separation of the business, taking into account the extensive feedback that we've received from our investors and feedback that we're very appreciative of. Our goal will be to do this in a simpler and more direct way, which we believe is the best path to unlock full value for Teck shareholders. Thank you very much. Operator: This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

Operator: Ladies and gentlemen, thank you for standing by. Welcome to Teck's Fourth quarter 2022 Earnings Release Conference Call. At this time, all participants are in listen-only mode. Later we will conduct a question-and-answer session. [Operator Instructions] This conference call is being recorded Tuesday, February 21, 2023. I would now like to turn the conference call over to Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analysis. Please, go ahead. Fraser Phillips: Thanks, Ariel. Good morning or good afternoon, everyone. Thanks for joining us for Teck's fourth quarter 2022 conference call. Please note, today's call contains forward-looking statements. Various risks and uncertainties may cause actual results to vary. Teck does not assume the obligation to update any forward-looking statements. Please refer to slide two for the assumptions underlying our forward-looking statements. In addition, we will reference various non-GAAP measures throughout this call. Explanations and reconciliations regarding these measures can be found in our MD&A and the latest press release on our website. Now, we know there's a great deal to digest this morning. We've got four -- issued four press releases which you shouldn't now have. The first on the spin-off of the steelmaking coal business; second, on the sunset for the dual-class share structure; the third on the dividend and share buyback that was announced; and finally, of course, on the Q4 results. In addition, there's a copy of our presentation to go with the releases. If you do not have all five documents, they are available on our website, its www.teck.com/separation. And a long time to discuss the strategic announcements we issued this morning, Jonathan Price, our CEO, will begin today's call with a brief overview of the fourth quarter results. We'll then shift to the focus of the three strategic announcements and the separation of Teck into two independent publicly listed companies, related transactions with our steelmaking coal joint venture partners and major customers Nippon and POSCO and the six-year Sunset for Teck’s Class A shares. We will then conclude today's session with a question-and-answer period. With that, I will turn the call over to Jonathan. Jonathan Price: Thank you, Fraser, and good morning, everyone. Starting on slide five, we are pleased to have achieved several financial records in 2022, including a record $9.6 billion in adjusted EBITDA. This was driven by strong commodity prices, particularly steelmaking coal, which reached new heights during the year. Each of our business units made substantial contributions to our profitability in 2022. In the fourth quarter, the resilience of our teams was demonstrated, as we successfully managed through severe winter conditions and short-term production challenges, specifically in Elkview, Highland Valley Copper and Trail. However, we did fall short of consensus analyst estimates for fourth quarter adjusted EBITDA and EPS. Variance was driven by lower-than-consensus gross profit, which was partly because of the extended maintenance activities that trailed during the quarter, higher than consensus non-operating expenses and the timing of the removal of Fort Hills from analyst model. Importantly, strong profitability enabled us to deliver record cash returns to our shareholders in 2022, including $1.4 billion in share buybacks and $532 million in dividends, while continuing to strengthen our balance sheet through the repayment of $1.3 billion of debt during the year. And we are adding to this, with our announcement that the Board has declared a dividend of $0.625 per share to be paid on March 31. This consists of our base quarterly dividend, of $0.125 per share and a supplemental dividend of $0.50 per share. In addition, the board has authorized up to $250 million share buyback. In total, these returns to shareholders include, a distribution of 40% of the proceeds from the sale of Fort Hills received earlier this month, in accordance with our capital allocation framework. In aggregate, these returns bring total approved returns of over $2.4 billion since the start of 2022. Now looking at Slide 6, we made significant progress against each of the four pillars of our common growth strategy in 2022. We advanced our flagship QB2 copper growth projects, despite COVID-related productivity impacts and challenging weather subsurface conditions. It is currently ramping up and we look forward to, doubling our consolidated copper production when its reaches full capacity by the end of 2023. We also advanced to pass the value for our industry-leading copper growth pipeline, through joint partnerships at San Nicolás in Mexico, and a new range of copper in Minnesota. I will come back to QB2 and our progress in copper growth in just a moment. As I mentioned earlier, we closed the sale of Fort Hills in February. Our exit from the energy business provides, a step change towards the rebalancing of our portfolio And we continue to balance copper growth, and cash returns to shareholders as demonstrated by our record cash returns in 2022. As of February 20, we have $8.2 billion of liquidity including $2.8 billion of cash. We also made significant progress against our sustainability goals, during the year. We secured 100% clean renewable power at QB2 in 2025. And I'm especially, proud that we recorded our lowest ever high potential incident frequency rate last year. Full details of our performance, will be in our 2022 sustainability report, which will be released on March 16. Now, coming back to our progress on copper growth on Slide 7. Our priority for 2023, will be the ramp-up of QB2. We are in commissioning of Line 1, at a concentrator and making final preparations to feed ore to the mills. Construction and commissioning are progressing across all areas of the project. Construction is essentially complete in the pipeline, power and mining areas. We expect QB2 to reach full capacity by the end of 2023. Our CapEx guidance for the project remains unchanged to the previous disclosure. We expect QB copper production of 150,000 to 180,000 tonnes in 2023, increasing to a range of 285,000 to 315,000 tonnes 2024 to 2026. It is important to note that recent changes to IFRS, will impact unit costs for QB2 this year. We are now required to recognize sales proceeds and related costs associated with products sold, during the ramp-up in passion in Phase 2 earnings, rather than capitalizing these amounts. Once QB2 is at full capacity, we expect average net cash unit costs of US$ 1.40 to US$ 1.60 per pound. Turning to Slide 8. we are also making meaningful progress on other projects in our industry leading copper growth pipeline. We initiated a feasibility study at San Nicolás last year and expect completion in early 2024. We are targeting submission of the EIA in the first half of this year. Transaction with Agnico Eagle is expected to close in the second quarter of 2023. We are continuing to advance a feasibility study for QB Mill expansion, representing a throughput increase of approximately 50% in QB. EIA permit application was submitted to the Chilean regulator in early 2023 and the feasibility study is expected to be completed later this year. At Zafranal, we successfully completed a comprehensive public participation session and responded to the SEIA observations last year. We are expecting receipt of the SEIA permit in the first half of this year. And just last week, we closed the new range copper nickel LLC transaction with PolyMet to jointly advance both NorthMet and Mesaba. And in Galore Creek, completion of the pre-feasibility study is targeted for the second half of the year. Overall, our progress in 2022 positions us well for our very exciting next chapter. So with that, we'd like to move from the fourth quarter results and discuss the transaction we announced today. The spin-off tech steelmaking coal business to shareholders and the creation of two world-class independent companies. Starting on slide 10. This is a significant and exciting day for our company, our shareholders and our people. As we take a major step forward to unlock value to Teck shareholders by establishing a path to separate our steelmaking coal and base metals businesses. As independent companies, Teck Metals and Elk Valley Resources or EVR will have simplified portfolios, allowing for heightened strategic and financial focus and the ability to pursue their own tailored capital allocation strategy. We are confident this plan positions both companies with greater success, while supporting a sustainable future for the benefit of our employees, community and indigenous peoples in the areas where we operate. Importantly this separation will provide investors good choice for allocating their portfolios between two businesses and commodities with unique fundamentals and value proposition. We will realize our full potential at Teck Metals as a premier growth oriented producer of critical metal essential for the energy transition. And EVR will be a pure-play high margin steelmaking coal producer. Teck Metals will retain a significant portion of the steelmaking coal cash flows during a transition period to fund our profit growth. Concurrent with the separation, we announced agreements with two of our steelmaking coal joint venture partners and major customers to exchange their minority interest in the Elkview and Greenhills operations or interest in EVR. Notably, Nippon Steel's $1 billion cash investment implies an $11.5 billion enterprise value for our steelmaking coal assets. Lastly, we also announced today a sunset, a dual class share structure, which would modernize Tech Metal's governance structure. Now turning to slide 11. I want to provide some context on the rationale for this transaction and why Teck is taking this step now. We recognize that the investment landscape has changed over the last 10 to 15 years. Previously broad-based demand growth across all commodities to support global development drove investor preferences for miners with diversified strategy. So as a result we're often rewarded with premium valuation. In recent years, the investor basis for base metals and steelmaking coal businesses have become increasingly divergent. This proposed separation responds to that changing landscape. It will allow investors to optimize their exposures to each of base metals and steelmaking coal through the creation of two world-class pure-play companies with compelling different value propositions. Company's critical role in electrification and the energy transition will drive continued demand growth and premium valuation. High-quality steelmaking coal will remain an essential input of steel production necessary for decarbonization infrastructure over the long-term. Turning to Slide 12. Following the separation, Teck Resources will become Teck Metals, a premier growth-oriented base metal company. Teck Metals is focused on copper growth and we are well positioned to capitalize on the strong demand generated by the accelerating transition to the low-carbon economy. Foundation of our portfolio is our high-quality, low-cost and long-life operations, which are located in well-established mining jurisdictions in the Americas. And we have significant growth potential and resource optionality through our industry-leading pipeline of copper development projects anchored by QB2. With the ramp-up of QB2 this year, we expect our copper production to double in the near term. And the vast long-life deposit at Quebrada Blanca can support multiple expansions. We currently have a little over 8 billion tonnes of reserves and resources at QB and the ore body is open in multiple directions for further potential increases. Beyond QB2, we have an attractive suite of additional projects diversified by geography, scale and time to development. We have the potential to add more than 1.5 million tonnes of annual copper equivalent production to our current portfolio. Teck Metals has the potential to become one of the top 10 copper producers in the world. Importantly, cash flow from the transition capital structure provides Teck Metals with continued funding to make prudent investments in growth balanced with disciplined returns to our shareholders and while maintaining our financial resilience. This transaction will unlock the full potential of our industry-leading copper growth portfolio, which is significantly undervalued relative to our peers. Turning to Slide 13. EVR will be a pure-play world-class Canadian steelmaking coal company, high-quality, long-life assets that are high-margin operations focused on long-term cash generation and providing cash returns to shareholders. The existing Elk Valley operating team will continue to lead EVR and ensure continuity of operating principles and responsible environmental and social stewardship. The team will be led by President and CEO, Robin Sheremeta who is currently Teck's Senior Vice President of Coal. EVR will own four producing steelmaking coal operations in the Elk Valley of British Columbia and the recently expanded coal handling facility at Neptune Terminals in North Vancouver. Its high-quality low-emissions hard coking coal product is sought after by the world's largest steelmakers as they work to reduce their own emissions. This is demonstrated by the agreement with Nippon Steel and POSCO we announced today. The significant participation by two of our major customers emphasizes the long-term and critical importance of high-quality steelmaking coal. And as I mentioned earlier, the $1 billion investment by Nippon Steel implies an enterprise value of approximately $11.5 billion further validating the EVR value proposition. Importantly, underpinned by an extensive reserve base with over 30 years of Reserve Life, EVR has significant equity value accretion potential as the Transition Capital Structure is paid down as shown in the graph at the bottom right. Now turning to details of the transaction on Slide 14. At the highest level the separation is a spin-off that steelmaking coal business to shareholders. Teck Metals will retain substantial access to steelmaking coal cash flows in the form of a royalty and preferred shares. The separation will be implemented by way of a distribution of the equity common shares of EVR to existing Teck shareholders. Shareholders will receive one common share of EVR for every 10 shares of Teck Resources, together with the share of a total cash distribution of $200 million. Shareholders can elect to maximize the amount of cash or EVR common shares they receive subject to proration through a Dutch auction process. In consideration for the transfer of the steelmaking coal assets to EVR, EVR will issue a gross revenue royalty and preferred shares together called the Transition Capital Structure, in which Teck Metals will maintain an 87.5% interest. Further, in exchange for their minority interest in the Elkview and Greenhills operations and an additional $1.1 billion cash investment by Nippon Steel, Nippon Steel and POSCO will own a combined 12.5% interest in both EVR common shares and the Transition Capital Structure. Payable quarterly, the royalty will be based on steelmaking coal revenue, generally equivalent 90% of EVR's free cash flow and payable in later on an aggregate amount of $7 billion in royalty payments have been made or year-end 2028. EVR will also issue $4.4 billion with redeemable preference shares with a 6.5% cumulative dividend. Teck Metals will continue to be listed on the Toronto and New York Stock Exchanges. EVR has applied for a listing on the TSX. I'm looking at the planned capital structure for EVR in more detail on Slide 15. Cash flow from operations will be prioritized for use to ensure the resiliency of operations including capital investments and fixed annual contributions to a new environmental viewership trust which will provide some long-term environmental obligations. While the TCS is in place, 90% of free cash flow will go to the royalty and preferred share redemptions. Once the TCS is extinguished, 100% of free cash flow is retained by EVR. The remaining free cash flow will go towards an initial base dividend of $0.20 per share and supplemental shareholder returns by Galore Creek [ph] 50% of free cash flow after TCS payments. Importantly EVR will be well capitalized at launch with $1 billion in cash and working capital and no debt. Teck Metals is expected to retain investment-grade credit rating based on preliminary indications. Slide 16 provides detail on the sensitivity on the proceeds from the transition capital structure to changes in steelmaking coal prices. TCS has leveraged the hard coking coal prices to provide flexibility and resiliency at EVR, while also providing Teck Metals with continued access to steelmaking coal cash flows during the transition period. This will allow Teck Metals to prudently invest in our industry-leading copper growth portfolio, while delivering cash returns to shareholders. TCS is forecast to provide Teck Metals with not less than $12 billion pretax proceeds over time. Because of the leverage to hard coking coal prices a higher price environment we both accelerate payments and provide upside participation for Teck Metals through the royalty. Assuming a US$185 per tonne long-term benchmark hard coking coal price and a Canadian-US dollar exchange rate of 1.30, EPS should be fully paid in approximately 11 years. If long-term prices stayed at current spot levels, TCS could be paid in only seven years, while providing $34 billion in combined royalty payments and preferred share redemptions on a 100% basis over that time. Turning to slide 17. Another important step announced today is the proposed six-year subset for the multiple voting rights attached to the Class A shares of Teck. This will modernize Teck Metals governance and provide a simplified and competitive capital structure. On the effective date each Teck's Class A common share will be exchanged for one new Class A common share and 0.67 of a Class B subordinate voting share. In terms of the new Class A common shares we'll provide that on the sixth anniversary of the effective date of the Dual Class Amendment all new Class A common shares will be automatically exchanged for Class B subordinate voting shares, which will be renamed common shares at which point the Class A common shares carrying multiple voting rights will be eliminated. Based on the 7.8 million Class A common shares currently outstanding and the exchange premium, the additional Class B shares issued on the effective date of the amendment represents approximately 1% dilution. The separation transaction and the dual class amendment are subject to 66 and two-third percent approval by Class A and Class B shareholders voting separately by class. In addition the Dual Class Amendment is subject to approval by a majority of Class B shareholders other than Temagami Mining Company, Sumitomo Metal Mining and Dr. Keevil. Those votes are expected to be held at Teck's Annual and Special Meeting of Shareholders on or about April 26, 2023. In addition to Teck shareholder and Board approvals, the separation is subject to customary conditions including approval by the TSX. We expect that the transaction will be completed in the second quarter of 2023 at which time Teck Metals and EVR will begin operating as separate companies. So before we turn to Q&A, I want to start where I began. We could not be more excited about this transformational transaction that will unlock significant value for our shareholders. We strongly believe this transaction is the best pathway to separate and realize the full potential of the two businesses. It will increase the strategic and financial focus for both organizations allowing the two entities to pursue tailored growth and capital allocation strategies. We realize their full potential. It will enable Teck Metals to unlock the value of our world-class copper growth portfolio and capitalize on the opportunities created by the energy transition funded by steelmaking coal cash flows during the transition period and position EVR as a pure-play high-margin steelmaking coal producer with exposure to strong steel fundamentals and a significant equity value appreciation potential, fruition potential as the transition capital structure is paid. The separation will provide investors with the flexibility to optimize portfolio allocation between base metals and steelmaking coal, with each company providing exposure to different commodity fundamentals, capital return policies and value propositions. Further the Dual Class Share Sunset will modernize Teck Metals governance structure. As we move forward, our purpose and values which are deeply embedded will ensure health and safety and sustainability are at a forefront of everything we do across both businesses. This includes, our unwavering commitment to become net-zero by 2050, and nature positive by 2030, and ongoing support for the people and communities where we operate for decades to come. With that, operator, please open the line for questions. Operator: Certainly. [Operator Instructions] The first question comes from Orest Wowkodaw of Scotiabank. Please go ahead. Orest Wowkodaw: Hi. Good morning, and congratulations on the proposed transaction. I'm wondering, Jonathan, if you can give us some color in terms of some of the options that were being evaluated, and why ultimately the spin-out was the chosen, I guess, avenue to separate the business versus just an outright sale of the coal business? Jonathan Price: Yeah, Orest, thanks very much for your question. This is something that's been under consideration by the Board of Directors at Teck for a number of years now. And we've worked very hard through a range of alternatives to get to this point that we're announcing today. Ultimately, we decided that a separation via a spin-out of steelmaking coal business to Teck shareholders was the optimal means of creating these two great companies, Teck Metals and Elk Valley Resources. It sets both companies under success for Teck Metals of course this allows us to continue to use cash flows from the coal business to fund our unrivaled copper growth portfolio, and continues to go and deliver the copper to the world is going to need for electrification and de-carbonization. In the case of the steelmaking coal business or Elk Valley Resources that will be a world-class stand-alone company, with high margins long-life reserves and producing a product that the world needs for decades to come to produce steel required for the infrastructure for de-carbonization. Ultimately, the creation of these two separate companies, we believe we'll give investors a choice to allocate funds within their portfolios based on their priorities and based on the different strategies and capital allocation framework that these companies will have going forward. So Orest, it's been an extensive process as you would imagine, conducted over an extended period of time, with – to go alternatives on the table. But ultimately, the Board and the management team concluded that this was the optimal way forward. Orest Wowkodaw: Thank you. And as a follow-up on your slide 16 that talks about the illustrative sensitivities to the proceeds, how should we think about the sort of your OpEx and CapEx assumptions moving forward here? Does this assume kind of 2023 guidance levels for both stay flattish moving forward, or does this assume kind of, I guess, revision here to the norm with respect to CapEx and OpEx? I'm just wondering, in terms of backing into the 11-year TCS payment on the base case. Jonathan Price: Yes. I think what you'll see in that Orest and I'll start with referencing the coal price is used there that they reflect the consensus prices over the coming years, and then we make a long-term assumption that of US$ 185 per tonne for hard coking coals. It would be fair to say that operating costs somewhat follow that profile. In the near years, they reflect elevated costs as a result of the inflationary environment that we're working in. And as we've said in our quarterly, we expect elevated costs to retain -- to remain through 2023 and of course, potentially into 2024. But beyond that, we would expect to see some reversion and reduction in unit cost in the steelmaking coal business, which of course, is go to be required if we're going to see the sort of reversion in coal prices that we highlighted in the deck. From a capital expenditure perspective, we do expect elevated levels to remain through the current year and in the near years, in particular as we continue to make heavy investments in water management and water treatment in the coal business. However, beyond that, the investments in water management treatment should decline and we'd expect to see our sustaining capital revert back towards historical long-term levels. So, Orest, that's a long answer I know but we do see some continued elevated unit costs and capital costs in the near years, but we do expect to see something of a reversion in the years beyond that. Operator: Our next question comes from Greg Barnes of TD Securities. Please go ahead. Greg Barnes: Yes. Thank you. Jonathan, can you talk about the timelines for all of this to really unwind, and it's seven to 11 years on the TCS and six years on the sunset on the Class A. Was there some reason you push them out that long or is it just maximizing the opportunity? Jonathan Price: So starting with the TCS, Greg. What we've tried to achieve there is getting a balance between continuing to fund the copper growth portfolio for Teck Metals and of course, to realize the full value of the EVR business against the desire to ultimately to separate the two companies, and that's a balance that I think struck well through the timelines here. Of course, as you note ultimately that will be a function of predominantly hard coking coal prices but also the underlying cash flow generation of the EVR business. With respect to the sunset provision of the Class A share, ultimately that would be subject of a negotiation between the majority Class A shareholders and a special committee of Teck’s Board of Directors. We think that the six years sunset provides Teck Metals with good cover to continue to deliver on our unrivaled copper growth pipeline, but ultimately provides a fixed timeline for emerge into a capital government structure. Greg Barnes: And secondarily, both these transactions require votes from shareholders as either one of votes dependent on the other or they go ahead independently of each other? Jonathan Price: Yes. The votes for the separation Greg and for the changes to the A Class share structures are independent of one another. Greg Barnes: So, one will go ahead if the other is not approved? Jonathan Price: That's correct. Yes. Greg Barnes: Okay. Thank you. Operator: Our next question comes from Lucas Pipes of B. Riley Securities. Please go ahead. Lucas Pipes: Thank you, very much. Good morning, everyone. My first question is on the capital return profile of Teck Metals. You mentioned discipline. How do you envision balancing capital returns at Teck Metals with the desire to grow that business? Thank you, very much. Jonathan Price: Yes. Thanks for the question, Lucas. And essentially the approach to capital allocation will remain unchanged. At Teck Metals as it has been intact for the last number of years. We will continue to advance our copper growth pipeline and we will continue to invest in the development of those copper projects throughout the Americas. However, we will continue to focus on balancing that investment in growth against strong cash in terms of shareholders, as well as maintaining the foundation of a strong balance sheet. I think that's something we did very well through 2022, where we invested significant capital in QB2 and then bringing that to a to completion, whilst ultimately approving and announcing around $2.4 billion of returns to shareholders through a combination of dividends and buybacks. And also buying back $1.3 billion of our debt to improve the balance sheet transaction that we have. So that will remain unchanged. Just as a reminder, the way the capital allocation framework operates is that the first 30% of available cash flow is automatically returned to shareholders by way of dividends and buybacks. And beyond that, the balance of 70% could also be returned to shareholders or could be allocated to new growth options in the portfolio and that will be the same allocation going forward. Lucas Pipes: That's very helpful. Thank you. And then, a quick follow-up on Nippon Steel and POSCO respectively, well, 10% and 2.5% of both the EVR and TCS gone on to separation. Is that right? Jonathan Price: Yes. That's absolutely correct, Lucas. And look, we couldn't be more excited by the investments that we've had here from Nippon Steel and from POSCO, they are both world-class steelmakers. They have been long-term customers of our business. It's great to continue to have their involvement in the business here. In particular, the $1 billion of cash received from Nippon, I think is such a strong endorsement, both for the quality and valuation of EVR equivalent to an enterprise value of $11.5 billion, but also, the long-term outlook for the steelmaking coal business. So, as I said, we couldn't be happy with the investments that we receive. Operator: Our next question comes from Brian MacArthur of Raymond James. Please go ahead. Brian MacArthur: Good morning, and thank you for taking my questions. Can you just tell me what happened in this scenario? I realize, it's a minimum 250 in the coal business and I understand there's a sunset in 2028. But what happens if coal business has a really tough year go down to the 250, so you don't kick out anything for the quarter, then the coal price goes up a lot. Is there a catch-up mechanism to get back that cash flow in the quarter you missed or do you just play, but because you tap out at the low end? Does that make sense to you, if you see what I'm saying? Jonathan Price: Yes. I wasn't quite sure, Brian about the 250 that you were referencing here. But essentially, there wouldn't be a catch-up in the quarter. The cash flows will flow to the TCS to Teck Metal when available -- sorry, you mean the cash balance in the… Brian MacArthur: Yes. The cash balance the 250. So 150, right, and technically for a quarter, I guess, I assume you pay the prep, but you don't pay the royalty. In the next quarter, your cash balance goes up, because the coal price is volatile, do you actually make up that lost payment, I guess, is what my question is, or is it just the time clock keeps moving to 2028 and then what -- or the $7 billion that you either make it or you don't make it? Jonathan Price: Absolutely, you would still operate on the $7 billion of royalty and the $4.4 billion of they would be unchanged. So I guess in the scenario you're taking it would just take slightly longer to recover those cash flows. Once the coal business has recovered, its cash position back could be $250 million. So there's no permanent loss of recovery of cash flows to tech metals it really just extends the duration. Brian MacArthur: Perfect. Thank you. And the second question just to be very clear on the A shares, you're spinning out these new shares in coal. They don't have As or Balance sheet, right? They're just common shares in the new vehicle. So there's no protective right there. Jonathan Price: That's exactly right. It will just be a single class of common shares at EVR. Brian MacArthur: Thank you very much. I’ll get back in line Jonathan Price: Thanks, Brian. Operator: Our next question comes from Timna Tanners of Wolfe Research. Please go ahead. Timna Tanners: Hey, good morning everyone. Thanks for the detail. Just trying to process it all still, but I wondered on the coal spin if you could talk a little bit more about, could there be further partners any offtake agreements or is this just purely a stake? Why does Toronto listed. And is there any price embedded in the $11.5 billion or is that simply in the conclusion from the amount that was paid by -- or that will be paid by Nippon Steel? Jonathan Price : Yes. Thanks for the questions, Tim. I mean, it is just a straight spin of the coal business here. We don't have plans for further investment into that business and we don't have plans for further offtake associated with that business. As I said, we're incredibly excited by the investments we have secured from Nippon and POSCO, but nothing in the words beyond that at this point in time. The $11.5 billion enterprise value, of course, reflects the long-term outlook for the business based on typical production operating cost and capital assumptions. And of course, there is an embedded steelmaking coal price in that as well. We think it's an absolutely fair valuation for the business and we were very happy to see Nippon Steel with their $1 billion investment for 9%. Timna Tanners: Okay. Thanks. And just on the last question just wondering if it would be just Toronto listed or why that decision? And the second question was just on QB2. Just to clarify, it sounds like there's really not any update on QB2 from when we heard from you last in terms of aside from the comment on the accounting for costs. Is there anything we're missing or is it exactly the same guidance as before in terms of volumes and cadence? Jonathan Price : Yes. Sorry just -- yes, sorry, I missed your question on the TSX. Yes, EVR will be listed on the TSX. Only there's no magic behind that. That's just where we've elected to have that. It's the Canadian company, and whilst mining company and well on the TSX. With respect to QB2, that's in very good shape. We are in touching distance to this production. And I'm going to hand over to Red Conger briefly who can just give you a slightly more data -- detailed update on status and when that production is expected. Red Conger: Yes, good morning Timna. We're really in an exciting part of the project right now. We're commissioning all of the equipment from the seashore all the way up to the concentrator at elevation. We're really happy with the desalinization plant and how that's running and we're pushing water up the hill now to the concentrator. At the concentrator, we've run all of the motors, the big mills, a lot of those pieces and commissioning require lengthy runs of eight, 12 hours consistently. We've done all of those successfully. There were a couple of items with key conveyor belts where one we're re-splicing it right now we weren't happy with that configuration. And another conveyor where we're doing a little extra work on the tensioning mechanism. So, it's ready to go. We've already crushed rock in the primary crusher and we're -- it's imminent pushing rock through those grinding mills and getting all the rest of the equipment going. So, very, very exciting time for us on the project. Timna Tanners: Okay, great. Thank you. Operator: Our next question comes from Emily Chieng of Goldman Sachs. Please go ahead. Emily Chieng: Good morning Jonathan and thanks for taking my question. My first is around the Teck Metals business. It sounds like there's going to be a lot of copper growth there in the portfolio. But how are you thinking about the zinc assets? They at some point become non-core or is there still investment there ahead? Jonathan Price: Hi Emily, thanks very much for that question. No, zinc remains absolutely core to Teck Metals going forward as it is today in the portfolio. What we've said about zinc is we don't expect that to be an area of growth at the same extent that we're focused on copper. But certainly, we'd like to maintain our current levels of production there or thereabouts in Teck Metals going forward. Obviously, we have a large position in which we expect to continue to operate for a long time. As we've said before the current open cut mine comes towards end of life in the early 2030s. And we're working now on the extension beyond that which would involve us going on the ground at is that is something that looks very attractive given the quality of the resources that we have there. And we would fully intend to maintain the trail and refining operations that we have. So, it will remain very much a core business for us. It's a very strong cash-generative business for us. Give or take you to about $1 billion of EBITDA a year and don't consume a great dealer capital. So, it's a solid contributor to the group and will continue to be a core part of Teck Metals going forward. Emily Chieng: Great. That makes sense. And a follow-up is just around the dual class share structure collapse discussion there. During the sunset period, does this mean -- what does this mean for the voting rights of the Class A shareholders? Does this essentially preclude Teck from any M&A during this period? Jonathan Price: So, there will be no change to the voting rights until we ended the six-year period. So, as is today. Emily Chieng: Great, very clear. Thank you. Operator: Our next question comes from Lawson Winder of Bank of America. Please go ahead. Lawson Winder: Hi. Good morning, Jonathan and team. Thanks for the update and congratulations on an interesting transaction. I wanted to get your thoughts on the way that the Class A shares, are being converted. So effectively each class share being converted, plus you're getting 0.67% of Class B. And I'd love to hear your views on, how that kind of valuation gets arrived at? Jonathan Price: Yeah. Look, ultimately, Lawson that was a negotiation between the majority holders of the Class A shares and the special committee of the Board. It reflects consideration for valuable voting rights essentially, that will be foregone through this sunset. But importantly, this represents only 1% dilution of Teck shares overall. So in that context, we think that the valuations struck here benchmarks very well against present. Lawson Winder: Okay. That's fair. Obviously I understood that you can't say a lot there. And I also wanted to follow-up on QB2 and just get an idea for how the ramp-up to first concentrate production might look. So the -- from when you feed first ore to the mill to when you have first concentrate like, how long will it take for that to flow through the process? Jonathan Price: Sorry, the timing from first ore to the mill, the first concentrate. Lawson Winder: Yeah. Exactly, thank you. Jonathan Price: Greg, do you want to add a bit of color to that? Greg Brouwer: Yeah, Lawson, think about the first half of this year is the ramp-up period, and as we get towards the end of the year, the facility will be running at full speed, and that guidance range that we provided would have copper production commensurate with that. Lawson Winder: Okay. So maybe I ask another way, do you expect to produce concentrate in Q1? Greg Brouwer: Yeah. We'll make first copper in Q1, for sure. Lawson Winder: Okay. Okay, fantastic. Thanks for clearing that up. Operator: Our next question comes from Carlos De Alba of Morgan Stanley. Please go ahead. Carlos De Alba: Yeah. Thank you. Good morning, Jonathan and team. Just on the transaction EVR, given the potential environmental and remediation considerations of that business, those authorities in Canada you have to approve the transaction or have you discussed with them this -- the spin-off plan so that they are aware and there's no potential issues down the road? And the second question is just to clarify, the EVR will start with no debt, right, so basically debt-free going forward. Jonathan Price: Yeah. So I'll just address the second question. First, you're exactly right. EVR will be debt-free. Talking then just about the environmental and external approvals you asked about, there are no required approvals for the separation. There is an approval required for the TSX for the listing for the size of my shareholder approval we don't require anything from regulators or government. We have engaged with both Provincial and Federal Government, regarding this transaction and we've also critically engaged with the indigenous groups who are present in the Elk Valley and very much involved with our steelmaking coal business there. We don't require approvals from them but of course, we will continue to maintain very strong and productive relationships with that going forward. Carlos De Alba: All right. Great. Thank you. Operator: Our next question comes from Dalton Baretto of Canaccord. Please go ahead. Dalton Baretto: Thanks. Good morning, Jonathan and team and congratulations. My first question is on the proceeds from EVR into Teck Metals. Jonathan, can you tell me if there are any restrictions on the use of proceeds in Teck Metals or do you have full carbon launch, how you use those margins? Jonathan Price: Yes. Hi, Dalton. Thanks for the question. No restriction at all on the use of proceeds that Teck Metals receives from EVR. As mentioned previously, our focus will be to deploy those to assist with the growth of our copper portfolio while balancing returns to shareholders and maintaining a strong balance sheet. So we will use those proceeds in a manner that's very consistent with our strategy. Dalton Baretto: Okay. And then when you're running Teck Metals, does the strategy remain the same or will you look to be more aggressive on things like M&A to accelerate the growth profile? Jonathan Price: So the strategy will remain the same, Dalton. The focus is on copper growth and the focus of our copper growth is through our organic pipeline of projects whilst returning cash to shareholders, so no change in that respect. And of course, we maintain for a number of years what has been a key part of our strategy which is to use cash flows from the steelmaking coal business to support that capital allocation strategy. Dalton Baretto: Okay. Thanks. And then maybe one last one. You're harvesting call it 90% of the free cash flow back into Teck Metals from EVR. So Teck Metals doesn't really look very different than the business today when you consider where those funds are coming from. So what kind of gives you comfort that you will rerate on the back of this? Jonathan Price: Just I mean one point of clarification there, whilst 90% of the free cash flow from EVR goes to the Transition Capital Structure, 87.5% of that goes to Teck Metals and 12.5% goes there to Nippon and POSCO just a clarification there. Look, we are creating two entirely separate businesses here with separate listings, with separate management teams and separate Boards. We do recognize of course that through the transition capital structure this is as it's described a transition, which will go on for a number of years until we see a complete separation or financial independence of the two companies. And of course, we think as that is paid down then that will create value accretion or equity accretion for EVR and will increasingly have Teck Metals been as an entirely independent of base metals company. Dalton Baretto: Thanks, Jonathan. That’s all for me. Operator: Our next question comes from Chris LaFemina of Jefferies. Please go ahead. Chris LaFemina: Thank you, operator. Thanks for taking my questions. I have a couple of questions about change in control provisions. I think I read somewhere that in the case of EVR and a change of control the – the royalty payment that Teck Metals would receive would increase from 90% to 92.5% of the free cash flow. What happens in the event that Teck Metals becomes a potential acquisition target? Is there any change of control around Teck's ownership and EVR? Any sort of poison pill there that would reduce the value to a potential buyer of Teck, if you would to be acquired? And then sorry, so first question is around am I right about the change in control on EVR and then secondly change your control on Teck, if Teck where to be acquired? Thank you. Jonathan Price: Yes, you're correct on both fronts. It mean, the first instance there is a step-up from 90% to 92.5%. And there would be no implications with respect to any acquisition or sale of the Teck Metals. Chris LaFemina: Okay. Thank you. Operator: Our next question is a follow-up from Orest Wowkodaw, Scotiabank. Please go ahead. Orest Wowkodaw: Hi. Thanks for taking the follow-up. Jonathan just curious given the spin-out of the coal business do you -- you obviously have a lot of copper growth options internally. Do you see advancing those -- some of those growth options quicker than you would have previously? I'm just wondering if given now you've got a very clear focus on coal cash flow coming into the business to fund copper whether we should anticipate that you may bring forward some of those internal copper projects? Jonathan Price: Look, Orest, I mean, I think in one sense here there's no real change to the strategy for Teck Metals, which is to develop that copper growth pipeline and this transaction per se doesn't signal a change or an acceleration of that. Of course, we're always looking at the optimal pace of development of the projects we have in the portfolio and the optimal sequence of those projects recognizing that we can't do everything at once. As you know well permitting could be one of the greatest restrictions in terms of the timing of the development as I mentioned that the top of the call we're advanced focus on study that permit across a range of our projects here. And given the focus on critical minerals from a number of governments around the world, it could be that permitting timelines are reduced somewhat, but as I mentioned this transaction in and off itself doesn't change the strategy because we've already been very focused on the development of copper projects in the portfolio. Orest Wowkodaw: That's perfect. Thanks. And can you just remind us, what's your current plan for the timing of the QB mill expansion? Jonathan Price: So we have submitted a permit application this quarter and we are in the process of completing a feasibility study, which will be done by the end of this year. And therefore we said that there's some potential for an approval for the QB mill expansion in early 2024. Orest Wowkodaw: Great. Thank you so much. Jonathan Price: Welcome. Operator: Our next question comes from Alex Terentiew of Stifel. Please go ahead. Alex Terentiew: Good morning, everybody. I know there's a lot of details in here and I so appreciate you guys be doing this call earlier today. But a question for you on the Teck coal spin-out EVR. I know, you mentioned that you expect Teck Metals to retain investment-grade credit rating. But how do we think about the or how will the cash flows from that be allocated to Teck? I'm just trying to think of in terms of EBITDA calculations and any covenants or any ratios that we could think of for Teck going forward? Jonathan Price: Yes. I will invite our CFO, Crystal Prystai to just talk a little bit about how those cash flows will be treated. We have had received preliminary indications from the three credit rating agencies that cover us Fitch, Moody's and S&P and the preliminary indications are that we will maintain investment-grade ratings for Teck Metals, but I'll let Crystal will briefly explain how those cash flows will be treated. Crystal Prystai: Hi, Alex. Thanks for your question. Just in the context of the treatment on our financial statements maybe that's the most important place to start. We will, in Teck Metals, deconsolidate our interest in the coal business unit on closing of the transaction. So, in our unadjusted profit figures, you won't see the results from the coal business unit reflected there. But given the recurring nature of the cash flows coming in to Teck Metals, we are planning to adjust our EBITDA for both the royalty and the structure dividends and redemption. So, you should expect to see those coming through our adjusted EBITDA calculations as well as adjusted EPS and you could model it that way. Alex Terentiew: Okay, great. Thank you. Operator: Our next question comes from Lucas Pipes of B. Riley Securities. Please go ahead. Lucas Pipes: Thank you very much operator. Thank you for taking my question follow-up question. I believe Nippon and POSCO are receiving rights to the coal, is that in exchange for their prior interest? How should we think about the offtake rates? Thank you very much. Jonathan Price: Yes. So, both Nippon and POSCO has been joint venture partners in and POSCO as well in Greenhill, so it's part of what's happened here is a conversion of those interests to their interests in equity and the transition capital structure here. They will retain off-take agreements long-term off-take agreements with EVR. I want to talk about commercial in terms of those contracts, but substantially similar to the sort of agreements that we've had with that in the past. So, no significant change there. Lucas Pipes: All right. I appreciate it. Thank you and again, best of luck. Jonathan Price: Thanks Lucas. Operator: This concludes the question-and-answer session. I will now hand the call back over to Mr. Phillips for closing remarks. Fraser Phillips: Thanks Ariel and thanks everyone. Just before I hand it over to Jonathan for his closing remarks, I just want to say that again lots to digest. I'm sure there will be plenty of other questions. Please reach out to me or Helen or indeed anybody on the IR team. We'll be happy to do our best to get in touch with you and have a conversation and we will be delighted to help out. With that, Jonathan, over to you for any final remarks. Jonathan Price: Yes. Thanks Fraser and thanks everyone for joining the call today and for the good questions. We at Teck couldn't be more excited about this transformational transaction that we've announced today. We believe it will unlock significant value for our shareholders. And we do believe that this transaction structure is the best pathway that separates and realizes the full potential of both of these great businesses. As I mentioned, it will increase strategic and financial focus from both organizations, allowing the two entities to pursue tailored growth and capital allocation strategies into the future. Teck Metals, this is about unlocking the value of the world-class copper growth portfolio and capitalizing on the opportunities presented by the energy transition continuing to be funded by steelmaking coal cash flows through the transmission period. And of course, we set up EVR as a pure-play high-margin steelmaking coal producer, exposed to strong long-term steel fundamentals and we have the potential for strong equity value accretion as the capital structure is paid down. Critically, the separation provides our investors flexibility to choose and optimize their portfolio allocation between base metals and steelmaking coal given that both companies provide exposure to different commodity fundamentals and capital return policies. And finally, of course, Dual Class Share Sunset will modernize the Teck Metals governance structure. So with that, thank you very much. We look forward to following up this conversation with you beyond this call. And yes, once again, thank you, a very exciting day today. Operator: This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

Operator: Ladies and gentlemen, thank you for standing by. Welcome to Teck's Third Quarter 2022 Earnings Release Conference Call. [Operator Instructions]. This conference call is being recorded today, Thursday, October 27, 2022. I would now like to turn the conference over to Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analysis. Please go ahead. Fraser Phillips: Thanks, Ariel. Good morning, everyone. Thank you for joining us for Teck's Third Quarter 2022 Results Conference Call. Please note today's call contains forward-looking statements. Various risks and uncertainties may cause actual results to vary. Teck does not assume the obligation to update any forward-looking statements. Please refer to Slide 2 for the assumptions underlying our forward-looking statements. In addition, we will reference various non-GAAP measures throughout this call explanations and reconciliations regarding these measures can be found in our MD&A and the latest press release on our website. Jonathan Price, our CEO, will begin today's call with comments on the strategic focus and priorities. Red Conger, our President and Chief Operating Officer, will follow with operational highlights from the quarter, including a progress update on our flagship QB2 copper growth project in Chile; Crystal Prystai, our Interim CFO, will then provide additional color on financial and operational highlights. We will conclude today's session with a question-and-answer period to address any remaining questions. With that, I'll turn the call over to Jonathan. Jonathan Price: Thank you, Fraser, and good morning, everyone. It's a pleasure to address you today as the CEO of Teck. I'm excited by the opportunity ahead for Tech to build on our existing strong foundation and position the company for long-term success. In recent meetings with investors, I've been asked whether they should expect any changes to tech strategy as I assume the role of CEO. Having been part of the development and articulation of the Teck strategy for the past 2 years, I can confidently say our current strategy is the right one to drive long-term sustainable shareholder value. Now turning to Slide 4. The heart of our strategy is copper growth. We remain focused on generating value from our industry-leading copper growth profile. QB2 will double our consolidated copper production when it reaches full production next year. And together with the remainder of our portfolio of attractive growth options has the potential to add 5x the amount of our current copper equivalent production. Secondly, we are rebalancing our portfolio of high-quality assets towards low-carbon metals, in particular, copper, where demand is expected to double by 2050, driven in large part by electrification and the low carbon transition. We intend to capitalize on this market opportunity while at the same time, reducing the proportion of carbon in our overall portfolio. Third, as we have demonstrated this year, we will balance our investment in growth against returning capital to our shareholders while maintaining a strong balance sheet. To this end, I remain fully committed to our capital allocation framework. By growing responsibly, I believe we can strike the right balance between growth and cash returns to shareholders while ensuring we are well positioned to weather periods of market uncertainty and volatility. And finally, we will continue to build on our strong sustainability track record. Sustainability is core to our purpose and values, and we view it as a competitive advantage. Sustainability will continue to be fully integrated into our activities and business processes at all levels of our organization. Together with the entire Teck team, we are focused on the execution of this strategy as we navigate the backdrop of global economic uncertainty. Now recently, I've also been asked by investors about my priorities as CEO. As outlined on Slide 5, my top priority is to continue to advance our long-term copper growth strategy. Our immediate priority is completion and ramp-up of the QB2 project as we build capacity in the organization to advance our suite of high-quality copper projects. In doing so, we will rebalance our portfolio to low-carbon metals and reduce the overall proportion of carbon in our portfolio. Second, we remain laser-focused on operational excellence, including through the deployment of autonomy and digital technologies. And finally, we're committed to maintaining our industry-leading sustainability performance as we work to deliver on our short- and long-term targets. And collectively, these priorities will position us to meet growing demand for copper driven by the global net zero transition while returning significant capital to our shareholders. Now to that end, we executed on a number of important transactions in the quarter. On July 20, we announced an agreement with PolyMet in which Glencore retains a majority equity interest to advance their North Met project and our Masaba mineral deposit in Minnesota. And on September 16, we announced an agreement with Agnico Eagle to advance our San Nicolas copper zinc project in Zacatecas, Mexico. Agnico Eagle will subscribe for the first USD 580 million of shares in the Teck subsidiary, that San Domain Nicolas, giving Agnico Eagle a 50% effective interest in San Nicolas. Together, these transactions derisk our positions provide a pathway to development and will crystallize significant value from our copper growth pipeline. Closing is subject to customary closing conditions, including receipt of regulatory approvals. Further, just yesterday, we announced an agreement to sell our 21.3% interest in Fort Hills to Suncor, the gross proceeds of approximately $1 billion in cash. The sale of our energy assets advances our strategy of pursuing industry-leading copper growth and rebalancing our portfolio of high-quality assets to low-carbon metals. It is the culmination of an extensive process we undertook to evaluate all options to realize the highest value for our shareholders. The transaction value is consistent with the current outlook for the Fort Hills business reflected in the most recent in-depth review conducted by Suncor and the resulting long-range plan for the project and is in line with comparable transactions. As a result of the sales agreement, we recorded an after-tax noncash impairment charge of approximately $950 million in the third quarter. We will review the use of proceeds in accordance with our capital allocation framework in February of 2023. The sale agreement will be effective November 1. Closing is subject to customary conditions, including the receipt of regulatory approvals. Now turning to our third quarter results, starting with key highlights on Slide 6. Overall, our third quarter financial results remained strong, primarily due to the continued strength in commodity prices despite the overall economic slowdown. Gross profit before depreciation and amortization was $2.4 billion, a meaningful increase from $2.1 billion in Q3 of 2021. Adjusted EBITDA was $1.9 billion and adjusted profit attributable to shareholders was $923 million or $1.74 per share on a diluted basis. Year-to-date, we have returned $1.4 billion to shareholders through buybacks and $468 million through dividends, all the while paying down $1.2 billion of our debt outstanding. During the quarter, we achieved a number of important milestones at QB2, including commissioning of our power transmission system, significantly advancing commissioning of the desalination plant and beginning preoperational testing of the Line 1 grinding mills, all of which are on the critical path of first copper. Subsequent to the quarter, we announced plans to deploy 2 electric tug boats at our Neptune Terminals. Collaborating with transportation providers to develop green transportation corridors is part of our climate action strategy and supports our goal of net zero emissions by 2050. Crystal will provide a detailed run-through of our business performance and guidance updates in a few minutes. However, I want to highlight 3 key changes on Slide 8. First, for QB2, we have revised our construction capital cost guidance to USD 7.4 billion to USD 7.75 billion. Based on our current foreign exchange assumptions cost pressures related to weather and subsurface conditions and other factors. This is an increase from our prior guidance of USD 6.9 billion to USD 7 billion. We continue to target first copper from line 1 late this year. However, if productivity impacts persist, this will be delayed into January 2023. First copper production is part of the continuous commissioning plan for mechanical completion of Line 1, which will be followed by mechanical completion of Line 2 and ramp up through 2023. abrade blanket copper production is expected to ramp up over 2023 following commissioning of QB2. We now expect QB copper production to range between 170,000 and 300,000 tonnes per year in 2023 to 2025, and compared with the previous range of 245,000 to 300,000 tonnes per year with 2023 at the lower end of the guidance range. Second, for steelmaking coal, we have updated our 3-year production guidance. Our steelmaking coal production capacity across our 4 operating mines in the Elk Valley is approximately 26 million to 27 million tonnes, and we had operated at those levels for most of the period between 2014 and 2019. However, over the past 3 years, external challenges largely out of our control and more recently, reliability challenges at our upview plant have impacted our ability to operate at those levels. These challenges include severe weather-related events including rain, flooding, extreme coal and wildfire events in 2021 as well as the COVID pandemic and the associated ongoing disruption to supply chains and labor availability. As a result, to better reflect the increasing frequency of these adverse events and associated risk of impacts to our operations, we have reduced our 3-year production guidance commencing in 2023 to 25 million to 26 million tonnes from 26 million to 27 million tonnes previously. Third and finally, our outlook for 2023 CapEx. While we continue to expect our capital expenditures for 2023 to be lower than 2022, with the increase in QB2 capital guidance and continued inflationary pressures, we no longer anticipate a reduction of $2 billion as compared to 2022 projected spending levels. We will issue our 2023 capital expenditure guidance in February as usual. Overall, thanks to our resilience and financial strength, we remain well positioned to manage through any near-term pressures while staying focused on our copper growth strategy. With that, I will now pass it over to Red to provide some operational highlights from the third quarter. Harry Conger: Thank you, Jonathan. It's a pleasure to address you today as President and COO of Teck. I want to give you an update today on the unplanned plant outage at Elk View, the inflationary pressures that we are seeing and what we are doing about them, building organizational capacity to deliver on our copper growth strategy; and our progress at QB2, including a [indiscernible] Moving to Slide 10. We announced a structural failure of the plant conveyor belt on September 20. While this has halted steelmaking coal processing at the site, mining activities have continued. Most importantly, there were no injuries as a result of this incident. A multidisciplinary team has been assembled from across the organization, and we have some of our best people working 24/7 on this -- we are well on our way to getting this plant back up and running. Emulation of the feed tube and supports is complete and access has been reinstated to all areas of the plant. We have substantially completed the sourcing of materials and labor to conduct a replacement. The team was able to source a refabricated conveyor tube sections and all tube sections have now been transported to a fabrication shop in Montana and are undergoing the necessary modifications. Delivery of the ore conveyor tube and support components is on schedule to take place over the next 2 weeks, and we are on schedule and plan to complete commissioning and restart production at the plant in late November. We continue to estimate the impact of steelmaking coal production to be a reduction of approximately 1.5 million tonnes in 2022. Moving to Slide 11. We are -- like others in the industry, we continue to operate in a period of uncertainty. Across the business, inflationary pressures have increased our operating cost by 14% compared to the same period last year with similar and persistent pressures on our capital costs. While the rate of inflation appears to be slowing, we continue to experience significant inflation in the price of many of our key supplies when compared to the same period last year. Increases in the cost of key supplies, including mining equipment, explosives, grinding media are being driven largely by price increases for underlying commodities census steel, crude oil and natural gas as well as rate increases for labor and transportation. While our underlying mining drivers remain relatively stable, inflationary pressures on diesel prices and other input costs have increased our unit costs. As we adapt to higher input prices, we're keenly focused on managing our controllable costs. We have realized tangible results to date from our continuous improvement and race programs, reducing unit costs and increasing productivities in the mines and our processing plants across our business. In our mines, we have successfully driven efficiencies through load enteral improvement initiatives, predictive maintenance initiatives by utilizing equipment sensors to reduce equipment downtime and operational interruptions and a cost savings initiative related to our drill and blast operations. From a logistical perspective, digital planning applications of interconnect operations with logistics teams has reduce costs and maximize throughput between tech steelmaking full operations and our Neptune Terminal. In addition, automated train loading at Forty River has increased floating per car by 2% and loading speed by 40%. Going forward, we will continue to drive further improvements, which will enable us to achieve our current and future production targets to reduce the impact of inflationary cost pressures and healthy more costs structurally stable for the long term. Turning to Slide #12. As we actively progress work to realize value from our suite of copper growth process, we are building organizational capacity ahead of the next wave of project delivery. To that end, we appointed Tyler Mitchelson as our Senior Vice President, Copper Growth, effective July 4. Tyler reports directly to me with a dotted line to Nick Hooper, our Senior Vice President of Corporate Development and Exploration. In this new role, Tyler has broad responsibility over the execution of Teck's worldwide copper development, he is responsible for prioritizing project execution, construction and commissioning of our copper gold assets as well as the expansion or mine life extension of existing operations. This new role and the experience that Tyler brings to it will be a key enabler to advance our copper growth strategy. Turning to an update on QB2 starting on Slide 13. We are very proud of the steady progress we have made through the quarter and remain focused on system completion and over. In terms of key milestones achieved, we have completed commissioning of the 220 kV transmission system and the final testing of the main substations switch gear at the concentrator. In terms of water, we are well advanced in commissioning of the pretreatment area and pre-ops testing of the reverse osmosis units in the desalinization plant, and we have completed the hydro testing of the water supply pipeline and the water pump stations, which is no small accomplishment 156 kilometers of pipeline have now been all fiber tested. At the mine area all subsystems for Ball Mill No. 1 and SAG Mill No. 1 are in 3 operational testing, and we have completed the ore stockpile dome installation of all the implant conveyor belts and the 12-kilometer long tailings launder. Given the delay in completion of the jetty and ship loader seen here on the right, alternate concentrate shipping arrangements are well advanced as a temporary measure until the ship loader is commissioned. As Jonathan noted earlier, we have updated our capital cost guidance for the project, and we continue to target first copper from Line 1 in the latter part of this year, followed by completion of Line 2 and ramp up through 2023. On slide 14, you see the pretreatment tanks at the desalinization plant where we continue the commissioning process. Slide 2 shows the overland conveyor that will transport ore from the primary pressures of the stockpile of the concentrator. Installations and splicing of the bills was completed during this last quarter. Slide 16 shows the concentrator area where the ore stacker is in the foreground with the stockpile down than with the mill building and the grinding lines there on the lab. Slide 17, to the grinding mills themselves, as we mentioned previously, all the subsystem for Ball Mill No. 1 and SAG Mill No. 1 are in preoperational testing. Slide 18 shows the flotation area of the concentrator where we are focused on completing the piping and electrical systems. On Slide 19, you can see the concentrate tears, which are undergoing hydro testing as part of the 3 operational works. Slide 20 shows the tailing launder that goes out to the tailings storage facility, 12 kilometers of the launder have now been completed and are ready to be used. On the -- on Slide 19, you can see the concentrate. So in summary, we continue to be very pleased with the progress we are making and are excited about building on our construction and commissioning success to date with a focus on delivering to the project's key milestones. I encourage you to visit the Investors section of our website to watch the latest progress video and view the most recent photo gallery. I will now pass it over to Crystal for additional color on financial and operating highlights. Crystal Prystai: Thank you, Red. We've outlined the key drivers for our profitability in the third quarter on Slide 22, including our adjusted EBITDA of $1.9 billion in the quarter. The inflationary cost pressures discussed by Red increased our Q3 operating costs by 14% compared to last year, approximately half of the increase relates to diesel costs at our operations and in our transportation costs. The primary cost increases are not related to key mining drivers such as mine productivity and strip ratio, which remained relatively stable. In fact, looking at the items that were under our control during the quarter, including production and operating costs, we generated a net positive impact on adjusted EBITDA compared to Q3 of 2021. We expect inflationary pressures on diesel prices and other key input costs as well as profit-based compensation and royalties to continue to put upward pressure on our unit cost guidance through the balance of the year and into next year and on our capital cost into next year. Turning now to our operations and starting with our copper business unit on Slide 23. Gross profit in the third quarter decreased by 50% compared to last year, primarily driven by an 18% decline in realized copper prices and a 9,000 tonne reduction in sales volumes resulting from the timing of shipments. Realized copper prices decreased to USD 3.49 per pound from USD 4.28 per pound last year, but remain above historic averages. Production decreased by 6% to 66,000 tonnes compared to last year, primarily due to a significant precipitation event in July that reduced production at Carmen de Andacollo. This was partially offset by higher production from Antamina due to higher mill throughput. Total cash unit costs increased by $0.28 to $1.96 per pound. This was primarily driven by higher consumable costs particularly diesel, maintenance and repair costs and contractor expenses. Looking forward, our 2022 copper production guidance remains unchanged. We reduced our 3-year Highland Valley copper production guidance range to 110,000 to 170,000 tonnes per year as a result of delayed pre-stripping in the Lornex pit, which reflects maintenance-related issues and high rates of absenteeism, particularly in the skilled trades. Our 2022 net cash unit cost guidance for copper remains unchanged. Moving now to our zinc business unit on Slide 24. Gross profit increased by 9% from last year to $311 million. The increase was primarily driven by higher zinc prices and a 45% increase in zinc and concentrate sales volumes, which was partially offset by higher unit operating costs at our Red Dog operations. In the quarter, zinc concentrate production increased by 34% at Red Dog due to increased mill throughput and higher zinc grades. The 13% Q3 refined zinc production at our Trail operations, reflects major work underway to replace the KSAT furnace heart and zinc roaster dome. We expect the maintenance work, which started in September to be completed in November. Finally, Total cash unit costs in our zinc business unit increased by $0.08 to $0.64 per pound. This increase is reflective of higher steel -- sorry, higher diesel and consumable costs, transportation costs as well as smelter processing charges. As we look forward, we have reduced our refined zinc production guidance to 257,000 to 276,000 tonnes due to extended plant maintenance and lower than planned production through the year. We expect Red Dog zinc in concentrate sales of 130,000 to 150,000 tonnes in Q4. Our 2022 net cash unit cost guidance for zinc remains unchanged. Turning now to Slide 25. Our steelmaking coal business unit delivered a strong quarter with gross profit increasing by 37% to $1.2 billion compared with $901 million last year. The increase was primarily driven by higher steelmaking coal prices and was partially offset by the effect of lower production and sales volumes and increased unit operating costs due to inflationary pressures. Notwithstanding a decline of 33% from the second quarter of this year, realized steelmaking coal prices increased by 28% to USD 304 per tonne compared to last year. FOB Australia price assessment for steelmaking coal averaged USD 287 per tonne in the third quarter after a record high of USD 527 per tonne in Q2 of this year. Sales to our customers in China are based on the CFR China price, which averaged USD 310 per tonne. Third quarter steelmaking coal production decreased by 5% to 5.7 million tonnes compared to last year. The decrease was primarily driven by the Elkview plant outage outlined by Red earlier. Sales volumes decreased by 5% to 5.6 million tonnes, which was within our disclosed guidance range. The decrease was driven by the impact of the Elkview plant outage and the recently resolved labor disruption at Westshore Terminal. Our significant investment in the Neptune port materially reduced the impact that the Westshore Terminal shutdown would otherwise have had on our Q3 steelmaking coal sales volumes. Neptune operated at design capacity in the month of September. Compared to last year, adjusted site cash cost of sales increased by 46% to $92 per tonne from $63 per tonne due to lower production and inflationary cost pressures across all major operating cost input categories, a 30% increase in the WTI oil price accounted for 24% of our cost increase year-over-year. And finally, transportation costs increased to $48 per tonne from $46 per tonne last year due to higher rail fuel surcharges and partially offset by lower demurrage costs. As we look forward, the LC outage is expected to impact production and sales in the fourth quarter. Our 2022 steelmaking coal production guidance has been decreased to 22 million to 22.5 million tonnes from 23.5 million to 24 million tonnes, and we expect Q4 sales of 5 million to 5.4 million tonnes. The LC plant outage is also expected to impact our site and transportation costs. We expect upward pressure on our full year guidance for adjusted site cash cost of sales of $87 to $92 per tonne, and we increased our transportation cost guidance to $46 to $49 per tonne due to the expected impact on volumes and demurrage costs. The LQ plant is expected to restart production in late November and opportunistic plant maintenance is being completed during the outage. Turning now to Slide 26. Our Energy business unit delivered gross profit of $84 million in the quarter, up from a loss of $28 million a year ago. The increase was driven by significantly higher WCS prices, increased sales volumes and lower unit operating costs as a result of 2 trained production rates. As Jonathan noted earlier, we announced the sale of our interest in Fort Hills, for gross proceeds of approximately $1 billion in cash and recorded an after-tax noncash impairment charge of approximately $950 million in Q3. The sale agreement is expected to be effective November 1 and is subject to customary closing conditions and regulatory approvals. Our interest in Fort Hills will be reported as a discontinued operation beginning in the fourth quarter of 2022. Slide 27 outlines our updated guidance for capital investments. As a result of the revised QB2 capital cost guidance, we increased our 2022 capital guidance by $100 million to $200 million. And as Jonathan noted earlier, while we continue to expect our capital expenditures for 2023 to be lower than 2022, we no longer expect a reduction of $2 billion given the increase in QB2 capital and continued inflationary pressures across our business. Looking now at Slide 28. We continue to maintain our strong financial position. We currently have $8.3 billion of liquidity, including $2.9 billion of cash and an undrawn USD 4 billion sustainability-linked revolving credit facility. We have a net debt to adjusted EBITDA ratio of 0.5x, investment-grade credit ratings from all 4 credit rating agencies and no major debt maturities prior to 2030. We are very confident in our ability to complete QB2 while successfully weathering this period of macroeconomic uncertainty, given our balance sheet strength. And adhering to our disciplined capital allocation framework, Teck continues to uphold our track record of significant cash returns to shareholders as demonstrated by strong returns in the third quarter. With that, I'll turn it back to Jonathan for closing comments. Jonathan Price: Thank you, Crystal. Our continued investment in resource development and acquisition has resulted in an outstanding copper growth pipeline, which is something that many of our peers simply do not have. Turning to Slide 30. -- we have updated our copper growth pipeline to reflect recently announced transactions, which is subject to customary closing conditions, including receipt of regulatory approvals. Cumulatively, these projects have the potential to add new copper equivalent production of more than 1.5 million tonnes per year. QB2 is the first step in our transformational copper growth. The next phase of development of QB will be the CrebradaBlanka mill expansion. The QBME feasibility study, including all environmental baseline activities, is expected to be completed in 2023. The is expected to be a significant contributor to our near-term copper growth portfolio with first production targeted for 2026. We are also continuing to progress our other copper growth projects. At the North Met project, updated feasibility and detailed engineering is underway. At San Nicolas, we are targeting completion of the feasibility study work in Q1 2024 and first production in late 2026. And in Zafranal, the feasibility study was completed in mid-2019, and we are in the final stage of the permitting process. We will continue advancing Zafranal on a path to realizing value in 2023. In closing, Teck is well positioned to drive long-term, sustainable shareholder value. There are meaningful opportunities ahead as global growth and the transition to a lower carbon economy, drive new copper metal demand and we have a portfolio of high-quality copper growth options that is the envy of our peers. As we move forward, we'll continue to rebalance our portfolio to copper while reducing the proportion of carbon in our overall business. We will continue to follow our rigorous capital allocation framework, balancing growth and cash returns to shareholders. At the same time, we will maintain our leadership in responsible resource development. drive best practices in sustainability and share in the benefits of mining with our stakeholders. This is consistent with Teck's purpose and the very core of our strategy and vision, setting us up for an incredibly exciting future. Thank you. I will now turn the call back over to Fraser. Fraser Phillips: Thanks, Jonathan. Just before we go to Q&A, I just wanted to note for everyone if -- if we don't happen to get time on the call today, we have a fair amount of time left, but we don't happen to get to your questions. We're available, myself and my team afterwards to -- for any follow-ups that are required. With that, then, Ariel, I'll just hand it over to you to conduct question and answers. . Operator: [Operator Instructions]. The first question comes from Greg Barnes of TD Securities. Greg Barnes: Jonathan, I just want to get a better handle on CapEx going forward, obviously, with a higher CapEx for QB2 coming into 2023. Sustaining capital, given the inflationary pressures that you've experienced over the past year or so. Should we be looking at a number that's somewhere between or as high as $2 billion on sustaining capital in Canadian dollar terms? Jonathan Price: Thanks, Greg, for the question. I'll hand over to Crystal in a moment just to provide some more detail. Generally speaking, we discussed previously the step-down of $2 billion from circa just above $5 billion to just above $3 billion. Clearly, from the updated guidance we've given you for QB2, there's more capital to be spent in 2023 now on that project specifically. To your question on inflation, broadly the same factors that have been driving inflation in our unit costs are driving inflation within our sustaining capital costs. These are the sort of factors that would be fuel, for example, or labor-related where that goes to sort of profit-linked costs. But let me just hand to Crystal to see if she has anything to add on our expectations for CapEx, which, as we said, we will guide to in the normal course in early 2023. Crystal Prystai: Thank you, Greg, for your question. As Jonathan mentioned, we are working towards our guidance in February, consistent with our normal practices, and we are still making our way through our budgeting process. So I can't answer your specific question on where sustaining capital will be in 2023, but I can say across our capital portfolio for expenditures. We are still expecting it to be lower than where we came in for 2022, but we'll have to wait until we've finalized our guidance in February. Greg Barnes: Okay. I thought I'd give it a try. Just as a follow-on. -- again, Jonathan, on the coal business, the reduction in the 3-year guidance to 25 million to 26 million tonnes. So have you permanently lost the ability to get to 26 million to 27 million tonnes given all of the issues that you've outlined in the M&A -- or do you think you can get back to that level at some point? Jonathan Price: So certainly, the plants and the mines are capable of achieving 26 to 27. However, as mentioned over recent years, we've had a series of events, many of them external factors, which have caused us to produce below that level. And therefore, from a planning perspective and to assist the market in understanding a reasonable outlook for production expectations. We've started to factor that in to how we think about this business. Now if you had a year absent any sort of external events, then the 26 million to 27 million tonnes per annum remains achievable. But what I'll do is just hand over to Robin Sheremeta, the President of our Coal business. He will just give you a little bit more color on some of the factors that we've included in our thinking here and why we've decided to guide future production the way we have. Robin Sheremeta: Just, Greg, I kind of want to walk you back through, say, the last 3 years because I think it kind of gives you a sense of where we're at. and maybe why that opportunity is not lost. But if you go back to 2020, obviously, COVID-19 was the headliner through that year. That -- we went through all the different issues with that. At the same time, we had a couple of environmental events. And really in 2020 was the start of what became higher absenteeism in the operations due to COVID and due to some of the steps we've taken. In 2021, we had a lot of mitigation steps in place for COVID-19. We actually saw a strong rebound in our production and logistics performance compared to '20, despite having continued high absenteeism, which we also saw today, -- and so we were able to drive inventories down. We got our store plant capacity prioritized, and we actually took advantage of a good strong market. And then we got taken out by the wildfire events in the summer, which took out logistics and a small production curtailments. And we're just recovering from the wildfires through the summer, and we got hit with the atmosphere river rain and flooding events in November and that again caused logistics and inventory-related production impacts. So those 2 years were fraught with things well out of our control. Coming into '22, we ended up starting the year with maximum inventories again due to the rain event. And then early in the year, we had extreme freezing that caused additional production challenges. So we didn't get a strong start to the year. Now fortunately, for the most part, the remaining year has been less eventful from an environmental perspective, but we do continue to have challenges with labor. We're still trying to rebuild from 2 years of pandemic, and we're still trying to establish levels that help offset that. So that takes time. It takes time to train people, to attract people to the operations. And I will say we're seeing considerable improvement in that over the last couple of months. So I'm getting more and more confident that we've -- that we're able to rebuild the capacity that we had before. So -- and this latest issue with the LQ plant, it's a one-off incident. We'll get through it. The team is working really hard to get that plant back. We've got most of the difficult pieces of the reconstruction, I guess, behind us, the foundations are going in now, and we've got some of the new tube arriving. So all that remains on track, and we should be back in good shape by the end of the month. So if you take all these things into account, many of which are pandemic related, we felt it was important to recommend a range that was more reflective of some of the uncertainty that happens around environmental conditions and things like that. if we have a year where the world doesn't conspire against us, I think we would be quite confident in hitting that upper historical levels of production. So the plots are capable. It's just a matter of -- you have a bit of luck on our side, I guess. Operator: Our next question comes from Orest Wowkodaw of Scotiabank. Orest Wowkodaw: Jonathan, your number two priority seems to be rebalancing the portfolio to low carbon metals. I'm wondering if that -- if your strategy there is solely around growing the copper business, and i.e., diluting the coal business? Or do you see the potential for accelerating that transformation perhaps by either divesting some of the coal business? Jonathan Price: Orest, thanks for the question. There's a number of approaches that we've been taking to that. The first, as you've seen overnight is the announced divestment of Fort Hills. Clearly, oil sands, carbon an opportunity there to reduce weight in the portfolio through that divestment, something we're very pleased to agreed and have gotten the way Secondly, as you highlight, really, the key approach for us is the growth around copper with the doubling of copper production as we bring QB2 online next year. And then with the projects I mentioned being new range being San Nicolas, being the QV mill expansion or bring more copper units into the portfolio, which further swing us towards green metals and away from carbon. As we've said before, we always remain very active and thoughtful in reviewing the shape of the portfolio and the composition of our portfolio. But right now, those factors I've mentioned are the key execution priorities, and that's what the team is focused on and that's what we're gearing up to deliver. Orest Wowkodaw: Okay. And as a follow-up, a question for Red, probably here. right? We've seen significant escalation on the CapEx for QB2 in the last 2 quarters in total, about USD 1.2 billion. I've been surprised just at the magnitude of that increase. Can you give us more color on what you're seeing there in terms of what's driving because I just can't be simply inflation. Harry Conger: No. No, we're not attributing it to entirely to inflection forestry great to be on the line with you again. There's a variety of things that we've been dealing with. They're keeping you up to date on all of those quarter-to-quarter. First, I just want to emphasize, we've got a very robust system with capital where we track all of the trends, contractors and then everybody involved turn in what's happening to them, where costs are going, what are variances from the initial plans that we made. And we bring -- we bring that forward every quarter, true it up. We do everything that we can to address issues that occur and don't just incur us, but what can we do to change the outcome. Here's an example of a cost that we incurred yet overall, it's going to be very financially advantageous for us. The 12 kilometers of tailing launder that I mentioned in the presentation, earlier this year, late last year, we were very concerned that the method of construction that the contractor was using was not going to allow that piece of the construction to be completed in time for us to get started here at the end of the year, which if that happens, it would be a huge cost impact. So we reviewed all of that with them, came up with a different method of construction, redid the financial terms of their contract in order to acknowledge the different construction approach. And now we have a tailing launder that's complete, ready to go. So good an outcome there. We're making adjustments like that here in the past quarter significantly. Another example would be -- on the Jetty, we've now put the electrical room for that on land and out on the peer. It's allowed us to accelerate commissioning of the desalinization plant, et cetera. And then throughout all of this, you've got all of the inefficiencies associated with count I just want to remind everybody we're flying in 13,000 people in and out of this remote location every 2 weeks. We're running 5 charter planes a day to do that. And at 10% absentee rates and you don't have key employees showing up like crane operators, supervisors, whatever. You have to reconstitute your crews on the fly and do what you can with the skills and the craft that you have. So we've been adjusting and dealing with all of those things. And let me just end with I was there last week, I was crispers now they're on site this week. It's really exciting to see this thing come together. I want the entire critical path. You saw the pictures today. It's coming together. We've done it under extremely adverse circumstances the last couple of years, everybody stays in healthy doing it. We now, for the first time in October, all of our employees were on site where masks are optional. They don't have to wear a mask associated with virus protocols, et cetera. So first time I've seen people's faces up there in 2 years. And it's all very encouraging, and we're going to finish this thing strong and it will be up and running here by the end of the year. Orest Wowkodaw: Just finally, Red, what's your confidence level in this updated number, the 7.4 to 7.75. Do you think this is it? Harry Conger: Well, the qualifier is knowing what we know today, all trends everything that we know of today are included in that. And we've assumed that we continue to have this high absentee rate that we're incurring right now and the inefficiencies associated with that are all calculated in. So those -- everything we know of is in there and trended [indiscernible] for the current what's happening on the ground today. So we're confident that it's a good number and a good estimate. Operator: Our next question comes from Lawson Winder of Bank of America Securities. Lawson Winder: If I may, I'd like to ask about the alternate concentrate shipping options for QB2. If you could maybe discussed to the extent possible what those arrangements are, what they look like in terms of costs and what they look like in terms of capacity? So for example, if the processing facility were fully ramped up, would that alternate concentrate shipping arrangement be sufficient to handle that volume? Jonathan Price: Lawson, thanks for the question. I'll pass that to Real Foley, our SVP of Marketing and Logistics. Real Foley: All right. Thanks, Lawson, for the question. Yes, we're working hard on those alternative shipping arrangements and we actually have retainers in place there and they're actually containers will live for shipping bio trucks to alternate ports. There are arrangements in place with alternate ports, working also with trucking companies in order to enable that. So we're confident that we have the capacity to ship the concentrate that will be reduced by QB during the year. We're also looking at domestic sales within Chile to the copper smelters that are in Chile. And transportation arrangements are also being worked on to get the concentrate to those concentrators. Jonathan Price: Yes. Thanks, Réal. The other thing I'd just add to that, Lawson, is some of these arrangements are very common in Chile, and they're used to handle supply chain disruptions and interruptions of ports due to weather events. So establishing some of this now will likely be advantageous for us anyway in the medium term. Lawson Winder: Makes a lot of sense. And then just any indication as to the cost of this alternative versus the [indiscernible] Real Foley: Yes, Lawson, I think it's early days for that. We'll provide guidance as we go into next year if this is something that we do give guidance on. Lawson Winder: Okay. Fair. And then I also wanted to follow up on the oil sands sale. Congratulations on completing that now. So you're now effectively out of the business of operating oil sands or sharing an operating oil sands asset, but you still have a substantial oil sands project in the portfolio. Has there been any thought to the potential sale of Frontier, has there been any interest in -- from potential buyers and maybe purchasing that? Jonathan Price: Yes. Lawson, I'll just make a couple of comments first on the divestment of Fort Hills. We have run a competitive process on that -- on our nonoperated interest in that for some time. We did have multiple parties actively bidding on the asset. The valuation we've achieved here, the $1 billion of cash from Suncor reflects the assumptions that underpin the long-range plan that were provided by the operator. And if you look at Suncor's press release, they will talk to some of the medium-term challenges associated with that asset as they're now understood, and they will give more detailed guidance at the end of November. So I think that will be helpful in getting a better understanding of the potential value of this asset now on a forward-looking basis, perhaps relative to prior expectations. The final thing I would say about that is the multiple that we've transacted at is actually competitive relative to recent precedent transactions for similar assets for oil sands assets. So we're very satisfied with the valuation achieved here, and we think it's a good deal for our shareholders, we think it improves our investability because we know oil sands has been an overhang for us and it's consistent with our strategy of moving away from carbon towards green metals in the portfolio. Now to your specific question on Frontier and Lease 421. We do believe that they are valuable options. They are not options for us to execute and develop. As you highlight, we won't be operators in the energy sector and nor in Oil Sands specifically. And therefore, we will evaluate options to transact on those over time. Fort Hills though being an asset in operation was the priority for us and hence, we chose to deal with that upfront. Operator: Our next question comes from Jackie Prelovszky of BMO Capital Markets. Jackie Przybylowski: My first question, I think, will be on -- to follow up on the question about Fort Hills. And Jonathan, I know you sort of alluded to this at the beginning of the call, but I would love to hear just some thoughts about what you're planning to do with the $1 billion that you'll be bringing in from that asset sale? And even just this really broadly, is that thought of as a potential for a fairly large onetime capital return to shareholders? Or do you require that for QB2 or other parts of the business? Or is there going to be some combination of those things? Jonathan Price: Yes. Great question, Jackie. The proceeds when we receive them upon the completion of the transaction, will be put towards the capital allocation framework. That's how we've talked about this previously. As you know, through the capital allocation framework, the first 30% of available cash flow is automatically returned to shareholders, and then we retain of course, based on consultation with our Board, the discretion to return additional amounts if we believe that's warranted based on other uses of cash at that point in time. So Key message there will be a return to shareholders as a result of this due to the operation of the capital allocation framework, minimum 30%, but potential for upside on that. Jackie Przybylowski: And that would be -- just to be clear, that would be a special dividend? Or could it be a buyback? Or like do you have thoughts about sort of the format of that? Jonathan Price: It could be either, Jackie. We make that determination at the time based on the share price, for example, based on discussions with our shareholders and any particular view on preferences at a point in time, but it could go either way. Jackie Przybylowski: Understood. And maybe another question, just I noticed in the last couple of quarters, your MD&A has talked about income tax is going to be starting to be charged on Canadian assets starting in 2022 with maybe cash tax payments in 2023 and 2024. Can you give us a little bit of help -- modeling help. How should we expect to see your income statement change maybe in the beginning of 2023 as a result of that? Jonathan Price: Yes. Thanks. Good question. I'll hand that directly over to Crystal. Crystal Prystai: Thanks, Jackie. That's a good question. You're correct. We are cash taxable on our 2022 earnings. However, we have -- with the tax installment rules and there are some income inclusion timing rules relating to our partnerships. That's where most of our Canadian coal and copper operations are held. That allows for us to defer the cash tax payments associated with the 2022 earnings into 2023 and the majority of which actually would be deferred into 2024. So the determination of the amount of those cash taxes will depend on our full year earnings for '22, and we would -- we can take offline the proportion to allocate. But I think you can assume the majority of it goes into 2024 in terms of the payment timing. Jackie Przybylowski: Okay. That's great. I might follow up with you online -- offline. And if I could just maybe sneak one last question. And hopefully, this is a quick one. I'm guessing it will be the revised budget that you've given us for QB2, can you -- can you give us any indication on how much there is contingency remaining in the budget for QB2 now that you've changed the bookends? Jonathan Price: Crystal or Red, do you want to pick that one up? . Harry Conger: Yes, Jackie, the way I would characterize it is all known variances that we've faced and things going forward are all included in that estimate. We've also made a an estimate on foreign exchange rate, et cetera. So I think I would tell you that all things that we know, all contingencies are covered at this point. Operator: Our next question comes from Brian MacArthur of Raymond James. Brian MacArthur: Just two follow-ups. First, Red or Jonathan, for the QB numbers, when you say everything is in, does that include working capital build as well? Or is there another cash call for that as we go through 2023, given all the timing changes on this now? Jonathan Price: Red, have you got that? Harry Conger: Yes, Brian, there was -- when we talk about construction capital, there's no working capital built into that. we're budgeting on the operations side for the start-up of the mining operations and all that goes on there. That's where any working capital that are going to be accounted for. Brian MacArthur: That's how I thought you were doing it. Second question, you talked about on Fort Hills gross proceeds and back to the tax discussion that was out there. Is there a significant tax on that sale. What I'm trying to get at is, obviously, the potential proceeds available for capital return? Jonathan Price: Crystal? Crystal Prystai: Thanks, Brian. Great question. In short, the answer to that is there is no material tax impact. There is a small capital loss that we expect on the transaction, but it isn't material in nature in relation to the $1 billion. Jonathan Price: So I'm going to say, yes, no capital gain, Brian, as Crystal highlighted. Brian MacArthur: Perfect. And my third question just relates -- and Jonathan, I think the long-term copper slide is great to show all your options. But you sort of have Zafarnal in there now. Is the -- are you still now maybe changing your view that you're maybe going to develop this as opposed to have a partner, which was maybe the way it was discussed before financing. Has anything changed there just given the divestiture of Fort Hills or anything? Is there any change in the strategy with Zafranal going forward? Jonathan Price: We're still looking at the optimization of that. Brian, we have a number of options there, of course. You know in the past, we were looking to divest that. We've continued to ensure that, that is fully permitted with the feasibility study behind us, so it will be completely derisked. We could look at the introduction of another partner given we have Mitsubishi in there for 20% at the moment, and we have the balance of 80%. And we could just move ahead with the development on a 100% basis. It's -- all options are still on the table for us on that one. We have a lot else in the pipeline in that same time frame to be grappling with. So I would say we are certainly long options in that period. And part of the determination we need to make is what is the right sequence of development here for these assets based on their risk and return profile. So all part of the optimization all still in the next and all options on the table. Brian MacArthur: Great. Operator: This concludes the question-and-answer session. I will now hand back the call over to Mr. Price for closing remarks. Jonathan Price: I think we'll probably hand it to Mr. Phillips for closing remarks. Fraser Phillips: Yes. Absolutely. So thanks, everybody, for joining us. If you didn't get your questions addressed, and I know there are some that did not, please let us know and we'll follow up and set something up so we can chat or do it over e-mail. Thanks again for joining us and look forward to speaking to everybody again a quarter from now. Operator: This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

Operator: All participants, thank you for standing by. Welcome to Teck’s Second Quarter 2022 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. This conference call is being recorded on Wednesday, July 27, 2022. I would now like to turn the conference call over to Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analysis. Please go ahead. Fraser Phillips: Thanks, Patrick. Good morning, everyone, and thank you for joining us for Teck’s second quarter 2022 results conference call. Please note today’s call contains forward-looking statements. Various risks and uncertainties may cause actual results to vary. Teck does not assume the obligation to update any forward-looking statements. Please refer to slide 2 for the assumptions underlying our forward-looking statements. In addition, we will reference various non-GAAP measures throughout this call. Explanations and reconciliations regarding these measures could be found in our MD&A, the latest press release on our website. Today’s conference call is not quite an ordinary call. Not only have we reported our fourth consecutive quarter of record-setting profitability, as you know, we’ve announced President and CEO succession. So, our format will be slightly different today. To begin, Don and then Jonathan will make some opening comments. They will then take us through our regular quarterly results presentation, followed by Q&A. We’ll then end with Don’s closing remarks. With that, for one last time, I will hand the call over to Don Lindsay, our President and CEO. Don Lindsay: Well, thank you very much, Fraser, and good morning, everyone. Welcome to the second quarter call. As I guess you all know, yesterday, I announced my retirement from Teck. This will officially be the 71st quarterly earnings call that I’ve led since 2005 and my final one with Teck. And as such, I’m going to make a few opening comments about my decision and the transition and then a little bit of reflection about my last 17-plus years in the industry and at Teck. And then, I’ll turn it over to Jonathan Price, our new CEO elect, for him to make some remarks. And when we get to the Q&A today, since this is my last time, you’re welcome to ask me anything. This is your ask me anything moment, and I will try to answer, though, as you will understand, I may be precluded from answering some questions. So, it’s tough to say goodbye to a company and to a team that you’ve been a part of this long and that you admire so much. And there is no perfect time. The fact is a lot of planning and preparation, all led up to this point. The Board, in fact, established a succession committee 2.5 years ago. And as you know, from a big picture point of view, at Teck, we are reshaping and rebalancing our portfolio to have a bigger focus on copper and less on carbon. And with that shift to a new phase of growth for Teck, it is important to shareholders, in particular, that the strategy is owned and led by the CEO who will be around and accountable for it in the longer term and I clearly wasn’t going to be the one to be around. I will be 64 later this year. So, I knew that this was the right time to make this decision to get the new team in place and to just get on with it. Board and I have been working closely together on transition planning for several years with the goal of having a seamless transition as possible. We’re also, of course, drawing close to completion of QB2 and first copper. We’re all very excited about it. And that marks a major shift in Teck’s trajectory towards becoming a major global copper player. And it isn’t just QB2. We have not 1, not 2, but 4 projects that could be in production as early as 2026. This announcement also comes as we mark our fourth consecutive record-setting quarter in a row, $3.3 billion in EBITDA, $1.8 billion in adjusted earnings. And in the last 12 months, we reported $5.7 billion in earnings. And these results really speak to the strength of not just Teck’s assets and certainly commodity prices were a big contributor, but also to the strength of the incredible team of people that we have here. Now, looking back, when I joined Teck on January 1, 2005, my initial focus was on rejuvenating our resource base to ensure that we could maintain production over the long term and to position us for future growth. We were, I would say, at the time, resource challenged. In fact, Highland Valley Copper was scheduled to close forever in 2008, just as an example. So, the early years were all about getting a hold of resources. We delivered on that through some key acquisitions such as Ore Resources, Global Copper, Fort Hills and ultimately, the full ownership of the Fording Coal Trust, in addition to investing year in and year out in exploration. And ore resources, of course, gave us QB. In QB at the time, we knew about 8 deep drill holes, the oxides that suggested that sulfides would be there. But they might not have been. It was a bit of a risk. But by the end of this year, we are on track to report 11 billion tons of resources, and that is 1 of the top 10 resources in the world. And as a result, Teck’s total resources -- reserves and resources across all commodities, on a copper equivalent basis have increased over 3.5 times since 2005. So today, we are resource-rich, and the new team has a lot to work with. Next, we transitioned into converting those resources into production and cash flow to realize that potential through the construction of key projects like the Highland Valley mill optimization, which combined with various pushbacks have to extend the life out to 2027, and we’ll extend it again out past 2040. The VIP2 project at Red Dog, which meant that instead of the production dropping from 550,000 tons to something starting with the 3, it stayed over 500,000. So, it was like building a whole new zinc mine. There was the construction at Fort Hills, rebuilding key assets at Trail, the 2 acid plants, which were so important and helped actually increase production. There was rejuvenating the Elk Valley steelmaking coal operations to drop them from the high third quartile, in fact, edging into the fourth quartile on the cost curve right down to the second quartile, and then, of course, commencing construction of QB2. With the upcoming completion of QB2, consolidated copper production capacity will double, and we are uniquely positioned to double again. And that includes the planned QB mill expansion, which could add a further 150,000 tons of production, and we have numerous other assets through Project Satellite, including the advanced Zafranal, San Nicolas projects and our recently announced Mesaba PolyMet joint venture with PolyMet backed by Glencore. Together, these projects could add 5 times the amount of our current copper equivalent production and make Teck a very significant copper producer. At the same time, as we did all this, we worked hard to foster a culture of safety and sustainability in every corner of the company, including reducing total recordable injury frequency by 80% compared to 2005 and reducing high potential incident frequency by 90% since 2010. Our people really live those values day in and day out, demonstrating that it truly is possible to provide essential metals and minerals with the smallest footprint possible, all the while creating jobs and prosperity for people and communities. I am very proud of how far we’ve come and where this company is today. Teck is in an enviable position in our industry with unparalleled copper growth optionality, strong production for world-class operations, leading sustainability performance and a purpose and values-driven employee culture that is second to none. I’m looking forward to supporting the transition to Jonathan and Red’s leadership over the next few months. I’ll also be staying on to support them in an advisory capacity in the role of Executive Vice Chair into the second quarter of 2023. But most of all, I’m very much looking forward to seeing Teck transition into this next phase of growth and value creation and very importantly, listen carefully and returning substantial capital to shareholders. With that, I’ll pass it to Jonathan for comment, and then we’ll move on to the actual earnings presentation and Q&A. Jonathan, over to you. Jonathan Price: Thanks, Don. First, I would like to recognize Don’s exceptional leadership of Teck for more than 17 years. As mentioned, we’ve just announced our fourth consecutive set of record financial results, an outcome, which is the product of many years of building a great team and a great culture, both of which were central to what attracted me to Teck. Second, I want to reinforce the strength of Teck’s strategy and growth foundation. We have a portfolio comprising some of the industry’s best mining assets and we have a track record of operational excellence and leadership as a responsible and sustainable miner. And we’re continually striving to improve through innovation and the deployment of digital technologies. We also have a suite of copper growth options without parallel amongst our peers. This is all the product of long-term strategic thinking, a clear eye to focus on value and creative commercial deal-making. As Don has indicated, and this is important, there is tremendous additional value to be unlocked in our portfolio. And I and my team are fully committed to working to realize that value for shareholders. Finally, I want to personally thank Don for the trust he has placed in me over the past two years. He has been generous in the time he has spent helping to build my knowledge and appreciation of Teck’s legacy, our values and the opportunities we have ahead of us. And it is a great honor to be appointed as Tech next CEO. Of course, I’m also very fortunate to have Red Conger working closely with me in the role of President and COO. And I know his leadership track record and depth of industry experience will be invaluable. I’m very excited for the opportunities ahead and to be leading tech through the next chapter. Now back to Don to take us through the quarterly results presentation. Don Lindsay: Okay. Thank you very much, Jonathan. So, I’ll now turn to slide 4 on the presentation, and we’ll go through the highlights. We’re pleased to report our second quarter 2020 results, which marked Teck’s fourth consecutive quarter of record-setting EBITDA and profitability. We delivered record adjusted profit attributable to shareholders of $1.8 billion, which is more than 5 times higher than Q2 last year and record adjusted EBITDA of $3.3 billion, driven by strong profitability across each of our businesses. At QB2, we achieved a number of exciting milestones during the second quarter, including the completion of construction of our transmission system, getting the starter dam to its design elevation and beginning the flow of seawater into the pretreatment area of the desal plant, which is on the critical path for first copper. And while we execute on this transformational growth, our strong financial performance in the quarter enabled us to further strengthen our balance sheet and return significant cash to shareholders. During Q2, we redeemed US$650 million of outstanding term notes. We paid $67 million in dividends and we completed $572 million in share buybacks. Yesterday, we declared a $0.125 per share dividend, and we authorized a further US$500 million in share buybacks. And this brings our total authorized share buyback program to approximately C$1.4 billion year-to-date. I’m pleased with our commitment to and continued progress in safety and sustainability leadership. Year-to-date, our high potential injury frequency remained low at 0.1 and building on our long-standing commitment to biodiversity, Teck became the first mining company to set an ambitious goal of becoming a nature-positive company by 2030. Our sustainability efforts reflect the passion of our employees for caring for the land where they live and work. We are proud of the ongoing recognition by the outside industry. We were named to the best 50 corporate citizens of Canada for the 16th consecutive year. Overall, our solid operational performance and strong balance sheet put Teck on a very strong footing as we manage through the current inflationary pressures and the slowdown in the global economy. Turning to slide 5. As stated earlier, we delivered record adjusted EBITDA of $3.3 billion, which was more than 3 times higher than Q2 of 2021. Our results reflect meaningful contributions from each one of our business units, particularly steelmaking coal, of course, which delivered record EBITDA of $2.7 billion in the quarter. Not unlike others in the industry, persistent global inflationary pressures increased our overall Q2 operating costs by 14% compared to last year, and half of that is attributable to the price of diesel. Turning to our operations, starting with the copper business on slide 7. Gross profit in the second quarter increased by 5% compared to last year, driven by a 10,000 ton increase in sales that shifted forward from the third quarter as production remained flat year-over-year. This was partially offset by higher consumables, particularly diesel and transportation costs. Our total cash unit costs increased by US$0.23 to $2.03 per pound. Q2 EBITDA of $210 million included a $251 million negative set of settlement price adjustment, resulting from the decline in copper price towards the end of the quarter. Notwithstanding that, copper prices in Q2 remained well above historic averages at US$4.32 per pound. During the quarter, we signed a new three-year collective agreement at Carmen de Andacollo. And looking forward, our 2022 copper production guidance remains unchanged. We increased our 2022 net cash unit cost guidance for copper to $1.48 to $1.58 per pound from the $1.40 to $1.50 we were before, primarily due to inflationary cost pressures and lower byproduct price forecasts. Moving on to zinc on slide 8. EBITDA on our zinc business tripled compared to Q2 last year, to $236 million. The increase was primarily due to substantially higher zinc prices, a 40% increase in zinc and concentrate sales and higher byproduct contributions. Q2 total cash unit costs are $0.13 or 21% lower compared to last year, largely due to lower smelter processing charges which more than offset the inflationary cost pressures on consumables and labor. At Trail, the increase in Q2 refined zinc production reflects the zinc roaster maintenance in 2021, but we also recorded a $32 million inventory write-down due to the decrease in zinc prices at the end of the quarter. Subsequent to quarter end, on July 8th, we reached a new 5-year collective agreement at Trail. Looking ahead, the Red Dog shipping season commenced on July 4th, and we expect sales of Red Dog zinc and concentrate to be 215,000 to 240,000 tons in Q3, reflecting the normal seasonal pattern. Major maintenance activities are planned at Trail from September to November, which will impact production. Our 2022 zinc production guidance remains unchanged. We increased our 2022 net cash unit cost guidance from mined zinc to $0.37 to $0.43 per pound from $0.32 to $0.38 per pound previously. The increase is primarily due to higher smelter processing charges expected in the second half of the year as well as higher diesel prices and increased profit-based compensation. On slide 9, our steelmaking coal business unit delivered yet another record quarter with gross profit of $2.5 billion, surpassing the record set last quarter at $1.8 billion. Steelmaking coal EBITDA was $2.7 billion, which was a six-fold increase compared to $435 million last year. FOB Australia price assessments for steelmaking coal hit a record high of US$527 per ton in the quarter. While prices pulled back in May to exit the quarter at $300 per ton, they remain higher than historical averages. Sales to our customers in China are based on the CFR China price, which averaged $461 per ton in Q2. As a result of strong prices, our realized price reached a record high of US$453 per ton, more than triple Q2 of last year. Production of 5.3 million tons was lower than a year ago due to planned maintenance shutdowns and some plant reliability challenges. Sales were 6.3 million tons in the quarter, which were within guidance. Importantly, our upgraded rail infrastructure and Neptune Terminal performed very well through the quarter and demonstrated their value by reducing mine inventories to near historic low levels, enabling us to capitalize on high steelmaking coal prices in the quarter. Looking forward, we expect sales of 5.8 million to 6.2 million tons in the third quarter to closely match production as mine clean coal inventories at record low levels. Given the plant reliability and workforce challenges, we lowered our full year production guidance to 23.5 million to 24 million tons from 24.5 million to 25.5 million tons previously. We increased our adjusted site cash cost sales guidance for the full year to $87 to $92 per ton from $79 to $83 per ton as a result of reduced annual production and higher inflationary cost pressures. Transportation unit costs are expected to decline in the second half of the year, and our full year guidance though remains unchanged. Our 2022 sustaining capital guidance for steelmaking coal was reduced by $100 million due largely to a shift in timing of water project spending. Turning to slide 10. Our energy business generated $174 million of EBITDA in the second quarter, driven by strong Western Canadian Select prices, and higher sales. Realized blended bitumen prices in the second quarter averaged US$98.42 per barrel, which was a 72% increase compared to last year. Sales were 3.1 million barrels in the quarter compared to 1.6 million last year when Fort Hills operated on one train only. The ramp-up to a two-train operation in Fort Hills drove increased production and lowered unit operating costs compared to last year. Further, a planned 20-day maintenance outage was successfully completed in the quarter. And in addition to its positive contribution to the bottom line, Fort Hills provides us with a natural hedge against increasing WTI and diesel prices. Looking forward, adjusted operating cost guidance for the full year increased to $33 to $36 per barrel from $28 to $32 per barrel previously due to higher natural gas and diesel input costs as well as an increase in contractor costs, but production guidance remains unchanged. Moving on to slide 11. At QB2, we now have approximately 13,000 workers on the project, and we are proud of the steady progress that we have made through the quarter. In terms of key milestones achieved, we have completed construction of the 220 kV transmission system and are sequentially energizing the electrical substation. In terms of water, we began pumping seawater into the pretreatment area for commissioning, and we are 50% complete the hydro testing of the water supply pipeline in pump stations. At the mine, we completed the starter dam to its design elevation. We began system turnovers to preoperational testing at the concentrator. We transferred the truck shop to operations. Our capital cost guidance remains unchanged, while our COVID-related costs have increased to $1.4 billion to $1.5 billion due to the impact of inflation on labor costs, the ultimate impacts of the Omicron wave that we experienced in Q1 and ongoing inefficiencies, including as a result of COVID-19-related absenteeism, which continues to run at approximately 10% levels. We continue to target first copper from line 1 in the latter part of this year with a focus on system completion and handover. However, if COVID-19 absenteeism and related vendor specialty craft availability continues into the fourth quarter, this may be delayed into January of 2023. Slide 12 shows the progress on the Main Jetty where we continue to advance the piling and deck construction that will support the ship loader. Construction progress here has been impacted by marine weather and subsurface conditions, necessitating alternate concentrate shipping arrangements until the ship loader is commissioned in the first half of 2023. On slide 13, you can see the desalination plant in the foreground where we are completing the high-pressure testing. In the background, you can see the pretreatment area, where we have introduced seawater for commissioning activities. Slide 14 shows the completed truck shop that was transferred to operations in the quarter. Slide 15 shows the gas-insulated switch gear inside one of the completed electrical substations that are being sequentially energized, and this substation provides power to water supply pump station 3, one of the key systems that’s needed for first copper. Slide 16 shows the completed power transmission lines and the water supply Pump Station 5, which is one of the stations for pumping water up from the desal plant to the concentrator. We’ve now completed more than 50% of the pipeline of pump station hydro testing that’s required to advance the system into commissioning. On slide 17, you can see a photo from May of the stockpile dome assembly, and as of today, it is almost fully enclosed. On slide 18, you can see an overall view of the concentrator area with the grinding building on the right in the flotation area on the left. The focus in this area is on completion of line 1 in preparation for first copper. And in the quarter, we began turnover of key systems in this area to preoperational testing. On slide 19, you can see the installation of the liners inside of SAG mill at the grinding building. The slide 20 shows a portion of the tailings launder, which is a concrete channel that conveys the tailings from the concentrate area to the tailings facility. Finally, slide 21 shows the starter dam, where we completed all of the earthworks and associated concrete works to bring the dam to its design height. So, in summary, we continue to be very pleased with the progress that we are making. We’re excited about building on our construction successes to date with a focus on delivering to the project’s key milestones. I encourage you to visit the Investors section of our website to watch the latest progress video and view the most recent photo gallery. With that, I’ll now pass it over to Jonathan to discuss our financial results. Jonathan Price: Thanks, Don. As illustrated on slide 23, strong commodity prices drove Teck’s fourth consecutive quarter of record EBITDA and profitability in Q2. Record high realized steelmaking coal prices increased by nearly $100 per ton quarter-over-quarter to $453 per ton in the second quarter. While prices have weakened since May, both the FOB Australia and CFR China prices remain above historical averages. Western Canadian Select, the heavy oil benchmark price averaged $96 per barrel in Q2, up 20% quarter-over-quarter and 75% year-over-year. Zinc prices increased by $0.08 to an average of $1.78 per pound in Q2 compared to Q1. And while copper prices declined from the all-time quarterly average record of $4.53 per pound in Q1, they remain well above historic averages with an average of $4.32 per pound in the second quarter. We’ve outlined the key drivers for our record profitability on slide 24. Adjusted EBITDA of $3.3 billion in the quarter represents an increase of $2.3 billion compared to last year, largely attributable to the strong commodity prices I mentioned. Like others in the industry, we continue to face inflationary cost pressures, which increased our Q2 operating cost by 14% compared to last year. The 75% increase in diesel prices over the same period drove approximately half of the increase. Additionally, increases in the cost of a number of our key supplies, including mining equipment, fuel, tires and explosives continue to be driven by price increases in underlying commodities, such as steel, crude oil and natural gas. It’s important to note that the primary cost increases are not related to our key mining drivers, such as mine productivity and strip ratios, which remained relatively stable. In fact, looking at those items that were under our control during the quarter, production and operating costs, we generated a net positive impact on adjusted EBITDA versus Q2 2021. However, inflationary pressures on diesel prices and other key input costs as well as profit-based compensation and royalties continue to put upward pressure on our unit cost guidance through 2022. Now moving to slide 25. In the second quarter, we generated significant cash flow from operations of $2.9 billion compared with $575 million a year ago, driven by record steelmaking coal prices. Our capital investments totaled $1.1 billion, including $819 million for QB2 and $212 million in sustaining capital. We also incurred $255 million for capitalized stripping, primarily related to the advancements of pits for future production at our steelmaking coal operations. Once again, higher diesel prices were the main driver of higher-than-planned capitalized stripping expenditure. Importantly, as Don outlined earlier, our record financial performance enabled us to strengthen our balance sheet and return significant cash to shareholders during the quarter. We reduced our debt outstanding by US$650 million through a waterfall tender of our 2035, 2040 and 2041 notes, further ensuring our ability to maintain solid investment-grade ratings through the cycle and reducing our annual debt interest expense by approximately US$40 million on a pretax basis. We completed $572 million in share buybacks through the purchase of a total of 11.5 million Class B shares under our normal course issuer bid, and we paid our regular base quarterly dividend of $0.125 per share, totaling $67 million. We ended the quarter with a strong cash position of $2.7 billion and as of the date of reporting, this now stands at $3.3 billion. Now, looking at slide 26, we are pleased to have enhanced our already strong financial position. We have $8.4 billion of liquidity with a net debt to adjusted EBITDA ratio of 0.4 times, investment-grade credit ratings from all four credit rating agencies, and no significant debt maturities due prior to 2030. We are very confident in our ability to complete QB2, while successfully weathering this period of macroeconomic uncertainty. Adhering to our disciplined capital allocation framework, Teck continues to uphold our track record of significant cash returns to shareholders. Year-to-date to June 30th, we returned to shareholders a total of $404 million in dividends and $662 million in share buybacks, while paying down $1.2 billion of our debt outstanding. And as Don noted earlier, further to our previously announced C$100 million and US$500 million in Class B share buybacks, we announced an additional US$500 million share buyback program yesterday. This demonstrates both, our confidence in the long-term outlook for our business and our commitment to balance growth with shareholder returns. Slide 27 outlines our updated guidance for capital investment. For 2022, we have increased CapEx for QB2 by approximately $200 million to a range of $2.7 billion to $2.9 billion from $2.5 billion to $2.7 billion previously. At the same time, we have reduced our steelmaking coal sustaining CapEx guidance by $100 million. With the completion of QB2, 2022 is expected to be the high watermark in our capital spend profile. We continue to expect a significant decrease in capital investments in 2023 with a reduction of approximately $2 billion. The decrease is driven by significantly lower QB2 CapEx. With first copper from QB2 now only months away in the operation and ramping up to full capacity, we are approaching a major cash flow inflection point where we shift from a period of significant capital investment to a period of significant cash generation. With that, I will now pass it back to Don for closing remarks. Don Lindsay: Thanks, Jonathan. Despite the short-term volatility and uncertainty related to the macroeconomic environment, we are confident in the long-term outlook for Teck and our key commodities. The COVID-19 pandemic has accelerated demand for metals and minerals that are essential for a low-carbon world, including copper, zinc and steelmaking coal. Let’s take a look at renewable power as an example. Each megawatt of installed generation capacity for an offshore wind turbine requires up to 9.6 tons of copper, 0.5 ton of zinc and 50 tons of steelmaking coal. Each megawatt requires that. So, each of today’s largest 13-megawatt offshore wind turbines with rotor diameters spanning 200 meters and up to 260 meters in height, they require approximately 125 tons of copper, 7 tons of zinc and 700 tons of steelmaking coal. So, you can really look at Teck as the procurement arm for the clean energy wind power companies. Teck is uniquely positioned as a major supplier of these critical materials required for the development of wind power and also for other renewable energy technologies. In closing, 2022 is a transformational year for Teck and our strong performance year-to-date has set us on a very strong footing as we manage through the inflationary pressures and a slowdown in the global economy. In the near term, our growth is being driven by QB2, which is months away from producing first copper and is expected to double our consolidated copper production by next year. As we bring on QB2 and advance our copper growth strategy, we will rebalance our portfolio and reduce the proportion of carbon in our overall business. And all of this is in combination with our track record as an industry leader in sustainability and it positions Teck to deliver meaningful long-term value to shareholders. And with that, I’ll turn the call over to the operator to open it up for questions. Operator: Thank you. [Operator Instructions] The first question is from Greg Barnes from TD Securities. Please go ahead. Greg Barnes: First off, Don, I just want to commend you on the track record at Teck over the past 17 years has been quite a ride. And secondly, how you positioned the Company heading into the QB2 construction, I think you did a great job on that front. My question for you is the long-term outlook from your perspective for the coking coal business, the steelmaking coal business within Teck, as you highlighted, is a key element of the decarbonization drive. And clearly, supply is going down, demand is going up, it looks like a pretty attractive business over the long term. Don Lindsay: Yes. No, I very much agree with you. And let me say congratulations on getting to ask the first question, Greg. The supply-demand situation, you’re quite right. I think that supply is going to be constrained that there aren’t that many players who want to invest in new capacity, and even if they did, it’s very difficult to finance it or to get it permitted. So, I think, in the longer term, supply will be challenged, whereas really demand for steelmaking coal will continue to grow as the steel industry continues to grow, reflecting the growth in the overall global population, mostly in developing markets, which will mostly get their steel from blast furnaces. The new green steel technologies are quite a few years away and we were talking decades. So, yes, I think the outlook for the business is pretty good from that point of view. That said, there’s no doubt that assets under management of something like $40 trillion have declared policies about investing in companies that produce coal. And while more and more people are starting to realize that steelmaking coal is absolutely required for a low-carbon future, more and more people are realizing that, but still, there’s some restrictions out there, and the Board has to be cognizant of that. As I said before, the Board has studied this issue intensely for a couple of years now on how best to reshape the portfolio. And that’s happening on its own with the growth in copper. And we have a lot of growth in copper. It takes a few years for that to occur, but somewhere in there will be the right answer. And I’ll leave that to the Board to decide. Operator: The next question is from Orest Wowkodaw from Deutsche Bank. Please go ahead. It’s look like we cannot hear you. Orest Wowkodaw from Deutsche Bank, might be on mute. We’ll go to the next question from Dalton Baretto from Canaccord Genuity. Please go ahead. Dalton Baretto: Thanks operator. And Don, Jonathan and Red, all the best to you guys as you go forward. My first question, I guess, is for Jonathan. I’m just wondering what might change in terms of the strategy going forward, particularly as it relates to things like portfolio construction, M&A and capital allocation? Thanks. Jonathan Price: Yes. Thanks for the question, Dalton. Look, the strategy that Teck has put together now over many years is an incredibly robust one. And it’s a strategy that’s not built on hope. It’s a strategy that’s built on the resources that have been put together in this company over many years. And as you know, it’s a strategy centered on copper growth. We are incredibly committed to that. As Don has just discussed, we continue to contemplate the balance and the shape of the portfolio overall and the direction remains moving that towards the metals required for decarbonization. Finally, your point on -- your question on capital allocation. Again, that’s unchanged. We are determined to strike a balance of growing our copper business while returning significant cash to shareholders and maintaining a foundation of a strong balance sheet. So, all of those elements, Dalton, remain very much intact. The focus of this team going forward will be continuing to execute on that strategy. Dalton Baretto: Okay, great. Thank you for that. And then, just maybe an operational question or two. You’ve announced two separate labor agreements here. And I’m just wondering, given the current cost of living environment globally, are you at liberty to discuss what kind of increases are being demanded and what this means for your other operations? Don Lindsay: Well, we generally don’t disclose the details of those contracts. I can say that we’re pleased with the resolution, a tough negotiation as they always are, but it provides us with labor stability going forward, so. And we’re very fortunate in that last year at our two largest operations -- our three largest operations, Highland Valley, Fording River and Elkview all settled long-term five and, in some cases, six-year contracts. So generally, for the core of the operations of company, we have labor stability at regional agreements going forward. Red Conger: Dalton, if I could just add one thing. This is -- actually completes the cycle of all of our labor agreements. So, we’ve been through the whole raft of them in the last several years. In my experience to settle for maximum contract durations, like Don mentioned, five years, six years is a real testimony to the working relationship that this company has with the union with the workforce. So, it sets us up very well for the future. Dalton Baretto: That’s great to hear. And maybe if I can squeeze one last one in. With the decline in the Chilean peso, is there an opportunity to hedge over the next 12 months as you finish QB2 and ramp it up? Don Lindsay: I’ll make an opening comment and then turn it to Jonathan. But I just want to tell you, we discussed this probably every hour of every day, so. And that’s all I’m going to say. You go, Jonathan. Jonathan Price: Yes. Dalton, it’s something we’re very much alive to. If you can tell us with some conviction which way the Chilean peso is going to go next would be welcome to get that feedback. Look, it’s something we’re comfortable to keep floating as we do with all of our commodity price exposures as well as our foreign exchange exposures. There’s a lot of uncertainty still in Chile with respect to the constitution and the process that will play out in the months ahead. And therefore, it’s very difficult to get a good read on which way the peso will go in the medium term. Right now, of course, that’s a tailwind for us with respect to both, operating costs in Chile and construction costs in Chile, but no hedging action at this point in time. Operator: Next question is from Lawson Winder from Bank of America. Please go ahead. Lawson Winder: Hello. Good morning. Thank you for the update, Don. Congratulations on a remarkable tenure at Teck. And Jonathan and Red, congratulations on your new roles. I would like to ask two questions. So first would be about the QB2, COVID-19 CapEx increase. So, it sounds as though there are some non-COVID-19 elements included in the explanation for the higher CapEx estimate for QB2. So, namely, inflation on labor costs. And I’d just be curious to know what proportion of the increase would be the sort of like non-COVID-specific related costs. And then, looking forward, what does that sort of non-COVID inflation component imply for QB and the CapEx expectations? Thanks. Red Conger: Yes. I appreciate the question, Larson. Just let me just hit on a couple of the highlight points before I answer your question directly. We’re really excited about, first of all, being able to get our employment levels up to roughly 13,000 per shift. That’s quite an accomplishment after COVID and gives us lots of optimism about getting this thing built and completed this year. A lot of those are key crops that we need at this point, welders and electricians, we continue to have world-class health and safety performance on the project. And of course, that’s a big contributor to our success as well. When Don talks about milestone of first energization of the transmission line, there’s a whole lot behind that. I mean, we’ve been commissioning parts of the desal plant using temporary power portable gen sets. We now have the substation actually officially on the Chilean grid. So, it’s thoroughly checked out, 100% functional, and that gives us a step change in ability and performance right now. We have all of the electrical rooms now outside of all of the electrical rooms that we need to not only make desalinated water at the port, but push it all the way up to 14,500 elevation. All of those electrical rooms are actually set in place, cabling is being pulled and terminated for all of those. So, those are huge milestones for us that have been achieved in this last quarter, 145 weeks of construction to complete the starter dam to its ultimate height. We’re now hydro testing throughout the system. We’ve got the pipeline from the coast up to the concentrator divided into about 10 logical sections where we do the hydro testing. We’ve completed four of those. We actually have water in flotation cells up at the concentrator now testing -- 100 testing vessels like flotation cells, other water tanks, et cetera. So, we’re really proud of the team making all that progress in the face of these challenges that you mentioned. So, to specifically go at your question, the increases have come in several different categories, one of which has been this labor inflation that you mentioned. When we look at that specifically, that’s a Chilean labor practice that’s reporting the law, at midyear, you adjust based on CPI, et cetera. But for these delays that we’ve been talking about, the last 1.5 years, we wouldn’t even be here with doing construction right now. So, the inefficiencies that have happened, the social distancing, all the things that we’ve had to do to keep people safe and healthy on the job have caused this thing to run much longer time wise, and that is related to the pandemic, and that’s the way we’ve called that. So, as we go forward, we’re doing a myriad of things to manage the current situations. We now have the opportunity to take Teck personnel that we’ve hired to run and maintain the operations. They’re now participating in commissioning efforts. We’ve seconded some of them to Bechtel to help with field supervision, productivity oversight those kinds of things. So, we’re being very creative, very collaborative with all entities to mitigate these things that we’re dealing with and continue to get this thing built. And the biggest thing to preventing cost overruns is to get it built and get the contractors of the project, and that’s what we’re focusing on. Operator: The next question is from Carlos De Alba from Morgan Stanley. Carlos De Alba: Don, congratulations; Jonathan and Red, all the best in the new positions. Maybe the question I have is if you could give us an update on the latest thinking about the oil sands energy business within Teck? And also, any update that you may have in the corporate Project Satellites and different process that you are pursuing there? Thank you. Don Lindsay: Okay. Sure. We’re very pleased with how Fort Hills is running now with its two trains up and running, and it has been performing above plan on many days and weeks. So, it’s good to see that that happening and that will only get better from here and continue to drop the costs. As we’ve said for a couple of years now, once we headed up at full production, we would consider a transaction where it would be held differently, so shareholders could choose whether they want to continue to participate in the energy cycle or not. We’re conscious that there are quite a few investors that cannot buy Teck when we have a certain proportion of our revenues coming from oil sands. And so, that suggests that it should be held in a different way outside of the Teck Resources portfolio. We are working on that. And I think you just have to stand by and see what evolves in due course. In terms of Project Satellite, we announced a deal last week on Mesaba, our project in Minnesota, joint venture with PolyMet, which is backed by Glencore. So, we’re very pleased with that. And we continue to advance Zafranal through the permitting process, and we continue to have detailed discussions with partners, potential partners on San Nicolas, and I expect something to evolve on that in the balance of this year. And then, of course, QBME is advancing, and we’re all very excited about that one. And we’ll be able to announce something related to sort of a combined prefeasibility and feasibility study effort that’s going on now, and I think in December, we’ll have something to say about that. Operator: The next question is from Matthew Murphy from Barclays. Please go ahead. Matthew Murphy: Hi. Congrats Don, Jonathan, Red. I have a question on met coal. Just wondering maybe Réal can share some thoughts on what he’s seeing, this unusual dynamic of thermal coal prices being so much higher than that? And what you’re seeing with steel markets slowing down in China? Would there ever be a strategy to divert some sales to thermal applications or are you pretty much set for the foreseeable outlook with your current customers? Réal Foley: Yes. Thanks for the question, Matthew. Maybe start with the end of your questions first. So, when we look at thermal, I mean, there are technical and operational limits as to using steelmaking coal for power generation. So typically, our coals are high coking properties. So, they’re not so suitable for thermal application. We do sell a little bit of oxidized met coal, steelmaking coal into thermal applications, but that is usually less than 0.5 million tons a year. Now, with respect to what is happening in the overall market, if you look at the steel and the hot metal production overall, it is still up -- granted, it’s a drop year-over-year compared to 2021 that was running very high, but it is still higher than when we were in 2019. So, when you look at exact numbers, the crude steel production and hot metal production versus 2019 on an annualized basis year-to-date is still running around 70 million tons higher for crude steel and 50 million tons higher for hot metal production. At the same time, the steelmaking coal exports year-to-date for the major exporters is down around 31 million tons versus 2019. So, availability continues to be tight despite the demand slowdown that we’re seeing on the steel side. And then, when you look at overall what has happened in the first half of this year, with the record high prices, miners were focused on getting sales to market just like we did. So, there is little in inventories out there. So, the expectations from those low inventories and the continuing high thermal prices is as soon as demand improves on the steelmaking coal side, we will see the price turn up again. Matthew Murphy: Got it. Okay. Thank you for that. Maybe just as a follow-up, second question. Don, I can’t resist the “ask me anything” window here. Just having gone through the construction of QB2, obviously, it’s not done yet, but it seems to me the sort of most challenging thing in this industry right now is investor dislike of major projects. And so, I guess, I’m wondering any reflections on how this industry deals with sort of a current slowdown but an awareness that there’s got to be more production growth in copper when you look at capital markets that don’t necessarily like these projects. Don Lindsay: The classic buy versus build question, and it gets debated internally and amongst our industry colleagues frequently. I share your observation that it’s getting tougher and tougher to build anything anywhere and different jurisdictions get the spotlight from time to time. But you can look in Canada, you look within Canada different provinces, you can look in the United States, you can look at Chile, Peru, you look in the Congo, Mongolia, any jurisdiction is getting tougher, not easier. And I’d also say that the management teams that allocate the capital are less willing to engage in that long-term adventure or a misadventure as trying to build something. QB2 will be 15 years from when we bought ore resources, knowing they’re -- drill holes, now there had to be a lot of drilling done and so on, but between -- from the start to finish is 15 full years. That’s a long time. And I think the willingness of teams to do that is not that high. And the barriers to doing that are getting higher and higher. So, what that means in the long term, of course, is that demand will exceed supply and pricing will be good. For those that have recurrent assets, they should do well. I have sense to shift partly related to the pandemic, partly related to the tragic war, Russia-Ukraine war that people, the highest levels of government are starting to recognize the critical minerals that really are critical and they are needed and they are scarce supply and that they have to change their policies and their attitude to encourage the mining industry to go on and develop more production. Pretty significant shift in Ottawa, positive, very positive, but that takes a long time to have an effect, long time. So, the projects that are already underway, like our QB2 and Anglo’s [indiscernible] ramping up, they’ll come on. But if you look two years out after that, I don’t see much. But the world will fix itself in terms of global recession, those sort of things, and demand will come back, and there just won’t be enough supply available. So, that’s how I see it. If it’s a classic build versus buy, I think most of us would rather buy because like the bigger deal closes, you’re starting getting cash returned right away and it’s difficult to buy. You always want to buy at the low and have quick can. But I think most of the industry has a bias to do that. Those are just some thoughts to share. Operator: The next question is from Orest Wowkodaw from Scotiabank. Your line is open. If you’re on mute, can you unmute your line please? We cannot hear you Mr. Wowkodaw from Scotiabank. Can you unmute, please? Don Lindsay: Orest, we’re worried about you. We can’t have a quarterly call without a question for Orest. So, Orest, if you can hear me -- maybe he can text on to you. Fraser Phillips: We could do that. Orest, you could do that if you’d like. If you want to send me an e-mail or text. Orest has been trying for a while to get on and can’t, whatever reason. Don Lindsay: All right. Let’s move on to the next question. Operator: Next question is from Emily Chieng from Goldman Sachs. Please go ahead. Emily Chieng: Good morning. Don, congratulations on your retirement, and to Jonathan and Red on your new roles here today. My first question is just around perhaps getting the latest update on the changing fiscal regime in Chile and what you’re seeing there as it relates to both the mining royalty and also the constitution rewrite? Don Lindsay: Okay. We have Amparo on the line who could answer that question. Please, Amparo? Amparo Cornejo: Yes. Good morning, Emily. Well, as you may be aware, the government of Chile introduced some changes in the mining royalty bill that was being discussed at the Senate. There has been some comments about these changes and this proposal of the government. It is important to mention that now the process will continue. This is a discussion that will take place at the Senate. We have shared in the last days that the Minister of Finance has indicated that the government is open to listen to the industry and potentially introduce some changes into this bill. So basically, this is a process that has not yet finished and will continue a discussion, and we hope that the industry will be part of that conversation. Nevertheless, it is important to reinforce that we do have stability agreements for QB2 and also for CdA. And those stability agreements are not at risk, and there are no indications that this could take. So, in relation with the constitutional process, the commission that was preparing the constitution presented the constitution to the President early in July. Today, there is a very open process of dialogue and campaigns and sharing different positions from people that would like the new constitution to be approved and those that have concerns and don’t want that process to be approved. What most of analysts are seeing today in Chile is that despite the result, the discussion on the constitution will continue. It is highly possible that changes will be made if the new constitution is approved and also, if it’s not approved, there is the intention to also conduct reforms. So, we believe that Chile will continue a disciplined process of discussion and institutional process in order to approve and to change the constitution in the future. So, in regards with the mining industry, at this moment, we don’t see any additional levels of concern. If the current draft is approved, a lot of discussion will need to continue at the Senate level. So, we will continue having this institutional discussion in the short term in Chile. Emily Chieng: Great. That’s very clear. My follow-up question is just around CapEx and more focused on sustaining CapEx and what that could potentially look like in 2023. It looks like there have been about $100 million of sustaining CapEx from the coal segment maybe reduced or potentially deferred into 2022, but any early reads on what that number could potentially look like? And also what sort of the water treatment CapEx could look like for ‘23 as well? Jonathan Price: Yes. Emily, we haven’t guided specifically to sustaining capital for 2023 at this point. We did communicate in the last quarter that we expected to see sustaining capital trend back down towards long-term levels and give or take, including in future sustaining capital for QB2. We said that would be around the $1 billion mark annually. In the short term, we do still have some water treatment capital commitments over the next two to three years. They reduce over time, which is what helps bring us back into that $1 billion range. But we’ll communicate the specifics for 2023 in due course. Fraser Phillips: Patrick, it’s Fraser. I think we’re going to have to just take one more question. And I did get it actually on the email from Orest Wowkodaw. He says my question is on the coal business. Q3 production sales guidance of 5.8 -- 6.2 tons is only 24.8 million tons annualized on high end. What gives you confidence that the business can still yield 26 million to 27 million tons moving forward as per your three-year guidance? Coal hasn’t produced above 26 million tons since 2018. Don Lindsay: So, I think, we’ll turn that over to Robin Sheremeta to start. And Red, if you want to add any comments as well. Robin? Robin Sheremeta: Thanks, Orest. There’s been a number of things that have occurred over the last couple of years for sure, not the least of which has been the COVID pandemic, and that’s certainly stressed the business. And then more recently, we’ve gone through a number of plant challenges here through the first half. So, Nicholas spoke about that in the last quarter, I believe. But, we took our two largest operations down for plant maintenance here in the second quarter. So going forward, they -- we’re pretty confident that they’re going to be back up to normal reliability situation. But the single biggest thing that’s affecting us right now -- and it’s going across pretty much all aspects of the business is just the shortage of labor that we have, which isn’t any different, really than any of our peers are facing in both our industry and any other industry right now. So again, we’re seeing the impact of COVID with higher absenteeism. We’ve got higher turnover, limited availability of new skilled hires and all that put constraints on our production capacity in the short term. And we have to work through that. We are seeing increasing success in hiring. So, we’ve ramped up our efforts significantly, and we’re starting to see uptick in that. But again, it takes time. We have to train and integrate those new employees into the operations. All that said, we still have an extraordinary resource. We’ve got all the capacity established for that 26 million to 27 million at our plants and our operations. And we really just need to get the labor force in place to deliver on that. We’ve got enough equipment. We’ve got, again, good plant facilities. So, it’s really just a matter of getting the labor reestablished here and get back up to those limits -- levels. Fraser Phillips: That’s great. Thanks, Rob, and thanks for the question, Orest. Back to Don for closing remarks. Don Lindsay: Okay. Well, thank you, everyone, for joining our second quarter call, my 71st call and final one. I want to close today with some important thank yous. Nobody gets anywhere working alone. I’ve had a lot of support from a lot of wonderful people, and I’m going to take the risk of naming some of them, which always carries the danger that I might forget someone and I apologize in advance to whatever that might be. I want to start with Dr. Norman B. Keevil, without whom I would never have had the job in the first place, and more importantly, thank him for his support in November 2008 in the midst of the global financial crisis, without which I would never have been able to launch the 12-step plan to work our way out the challenging situation following the port and coal acquisition. Fortunately, since that acquisition, the steelmaking coal business has generated about $34 billion in average EBITDA and about $22 billion of free cash flow which allowed us to build our base metals business and finance QB2. I also want to thank Norman B. Keevil III, who is Vice Chair of our Board and one of the most decent people I know and a huge support of the business. I also have a special place in my heart for everyone in Sumitomo Metal Mining that I’ve ever dealt with. This is one of the class acts in the global mining industry. And every leader, I’ve had the privilege to work with and every Board member who’s joined us has contributed and done nothing but be helpful and professional. A quick thank you to two of the longest serving analysts, Orest and Greg, very much appreciate all of your insights and questions. And Orest, I have to say after you being the first question for so many calls and always kind of fun to have Greg be first and you were last. So, seems fitting for some reason. I want to say some thank yous to the global mining team at CIBC, which I was the founder, and I did that with a very special partner name, Warren Gilman. I wish him well as he builds up his own investment business. And I mentioned Andy Quinn, Neil Johnson, David Scott and Paul Stafford, who are all incredible professionals and great partners, and John Hunkin, who is Chairman and CEO of the bank and a great mentor of mine and from whom so many of us learned about inspiring leadership. And back to Teck. And it’s so hard as there are so many to recognize but I’ll name a few, a few names from the past, Doug Horswill, Greg Waller, Ron Vance. Ron Millos and Dale Andres, who have retired over the years, but made tremendous contributions to the company. Some of the past and present Board members, Bob Wright, who is 90 years old, who I heard from last night and who was originally involved in recruiting me in the first place. Jack Cockwell, who is a very, very important mentor of mine, Warren Seyffert who was Vice Chair of the Board. And the hardest working directors, we currently have Ed Dowling, Tim Snider and Sheila Murray, thank you to all. I want to acknowledge my team because, boy, what a team, we’ve got. I gave them all copper pens last year saying best team, I see Red’s holding his. But current teammate members from operations are Robin Sheremeta, Shehzad Bharmal, Kieron McFadyen, running our metals and coal and energy divisions. Alex Christopher on Projects; Andrew Milner on our whole TDS and RACE21. On the corporate side, some pretty special people, Dean Winsor, who I’ve worked with so closely on putting the team together, so much appreciate your support. Marcia Smith. We wouldn’t be number one in ESG without her team and everything she’s done for us. Peter Rozee has was been there through thick and thin, through everything, all the transactions, all the issues that we’ve had to deal with. Nick Hooper, a whole new brain trust in our company, now looking at all things going on in the world. Réal Foley has become like the guru of commodities, commodities for the whole street. And it’s just been great working with you. Fraser Phillips whose wisdom and understanding of shareholders just second to none. Ralph Lutes, one of my great partners, who’s done so much for us in Asia and now in China. And of course, my support team, Mona Hat [ph] and Stephanie Dunlop, over the last 22 years, I wouldn’t have been able to survive without them. And Connie Wong who steps in on the Matley for the third time now here to help out. I have a special gratitude to them, for sure. Finally, I want to wish Jonathan Price and Red Conger, nothing but the greatest success. They are both tremendously capable individuals with complementary experiences skills. And I know that they will be focused on creating tremendous new value and taking the company to even greater heights. So believe me, when I say, under this team, the best is yet to come. Thank you all. Over and out. Operator: The conference has now ended. Please disconnect your lines at this time, and we thank you for your participation.

Operator: All participants, thank you for standing by. Welcome to Teck's First Quarter 2022 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. This conference call is being recorded on Wednesday, April 27, 2022. I would now like to turn the conference call over to Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analysis. Please go ahead. Fraser Phillips: Thanks very much, Patrick. Good morning, everyone. Thank you for joining us for Teck's first quarter 2022 results conference call. Please note today's call contains forward-looking statements. Various risks and uncertainties may cause actual results to vary. Teck does not assume the obligation to update any forward-looking statements. Please refer to Slide 2 for the assumptions underlying our forward-looking statements. In addition, we will reference various non-GAAP measures throughout this call. Explanations and reconciliations regarding these measures could be found in our MD&A the latest press release on our website. Don Lindsay, our President and CEO, will begin today's call with first quarter highlights, followed by Jonathan Price, our CFO, who will provide additional color on our financial results. We will conclude today's session with a question-and-answer period to address any remaining questions. With that, I will turn the call over to Don. Don Lindsay: Thank you, Fraser, and good morning, everyone. We are pleased to report an exceptional start to the year and our record-setting financial results in the first quarter and what is going to be a transformational year for all of us here at Teck. Solid operational performance and continued strong commodity prices drove a quarterly record of $3 billion in adjusted EBITDA, which is more than triple the same period last year. We delivered adjusted diluted earnings of $2.96 per share compared to $0.61 in Q1 of 2021. And importantly, our strong financial performance enabled us to both strengthen our balance sheet and return significant cash to shareholders. We continue to advance our flagship QB2 copper project with overall progress now surpassing 82% completion. We have to say we're very proud of this achievement, especially in light of the significant impact the Omicron wave had on workforce absenteeism, which exceeded 20% early in the quarter. Our QB2 capital cost guidance remains unchanged, and our teams are focused on systems completion and handover as we expect first copper from line 1 in Q4 of this year, assuming no further COVID waves or other major disruptions. During the quarter, we made meaningful progress towards our commitment to safety and sustainability leadership. On safety, our high potential injury frequency remained low at 0.14 in the quarter. On climate, as you will have seen, we expanded our climate action strategy building on our existing commitment to net 0 across our operations by 2050, we included a new short-term goal to achieve net 0 scope to GHG emissions by 2025. And we also have an ambition to achieve net 0 Scope 3 emissions by 2050. We are pleased to see our continued sustainability efforts being recognized by the industry. And during the quarter, we were named to the 2022 Bloomberg Gender Equality Index and recognition of a high level of disclosure and performance in gender quality and Highland Valley was the first Canadian mine site to be awarded the Copper Mark verification for its responsible mining practices. Turning to Slide 4. As stated earlier, we delivered $3 billion in adjusted EBITDA in the quarter, notwithstanding global inflationary pressures, which increased our overall operating cost by 13% compared to last year. Our results reflect meaningful contributions from each one of our business units. Solid operational performance, combined with the strong commodity price environment, enabled us to further strengthen our balance sheet and accelerated our ability to return capital to shareholders. In the first quarter of 2022, we redeemed USD 150 million of our maturing notes, and we also paid CAD 337 million in dividends to shareholders. And subsequent to quarter end, we completed $100 million of buybacks. Just last night, we announced our intention to repurchase a further USD 500 million in Class B support and voting shares. We think this demonstrates both our confidence in the outlook for our business and our commitment to balance growth with shareholder returns. Going forward, we will consider additional buybacks in the context of market conditions at the time. And with the startup of QB2, we are quickly approaching an inflection point where the potential for further increased cash returns to shareholders will be then there possible. Turning to our operations. Starting with our copper business unit on Slide 6. Record quarterly copper prices of $4.53 per pound and higher contributions for byproducts drove EBITDA of $523 million in the first quarter, which is an increase of 25% from last year. At Highland Valley, production was impacted by unplanned maintenance that reduced mill throughput. However, copper sales exceeded production as the logistics change recovered from the weather-related disruptions at the end of 2021 and inventory was drawn down. Overall unit operating costs were in line with our annual guidance. The increase year-over-year was primarily the result of higher diesel prices and profit-based compensation. In April, Antamina submitted an application for an amendment to its currently approved environment impact study to extend the mine life from 2028 to 2036. And looking ahead, we continue to expect strong performance from all of our copper operations in 2022. Our annual guidance is unchanged. However, there continues to be upward pressure on cash unit costs. Moving on to zinc on Slide 7. EBITDA on our zinc business increased by 71% compared to Q1 last year to $298 million. The increase was driven by higher concentrate sales volumes and zinc prices, which were up 32% and partly offset by substantially higher royalty costs related to profitability at Red Dog. The higher zinc and concentrate sales volumes in Q1 were primarily a result of the late start of the 2021 shipping season and the historic weather-related delays resulting in the deferral of a portion of 2021 sales into Q1 2022. Unit costs are down as a result of lower smelting processing charges which more than offset inflationary pressures. At Trail, refined zinc production was impacted by nonrecurring operational challenges, which are now behind us. Looking ahead, we expect Red Dog zinc and concentrate sales of 50,000 tons to 70,000 tons in the second quarter, which reflects normal seasonality and our annual guidance is unchanged. On Slide 8, our steelmaking coal business unit delivered yet another record quarter, generating $2.1 billion in EBITDA, a fivefold increase compared to $415 million last year. Pricing for steelmaking coal increased significantly through the quarter, resulting in record quarterly realized price of USD 357 per ton. Sales to our customers in China are based on the CFR China price, which was at a discount to FOB Australia during this quarter. Sales in the quarter were 6 million tons, exceeding production but slightly below guidance, and that was as a result of the CP rail work stoppage in late March. Production was impacted by processing challenges and curtailments early in the quarter associated with high mine inventories, which were carried over from the various weather disruptions in late 2021. Our rail infrastructure and complementary port capacity upgrade at our Neptune terminal demonstrated its value by mitigating the impact of major weather events. The rapid recovery of the logistics chain and the ability to recover deferred sales allowed us to capture higher margins and sales in a high-price environment. Adjusted site cash cost of $77 per ton and transportation costs of $46 per ton in the quarter reflect continued inflationary cost pressures, including substantially higher diesel prices profit-based compensation, demurrage costs and fuel surcharges. These increases were partially offset by lower port costs at Neptune. Looking forward, we expect sales of 6.3 million tons to 6.7 million tons in the second quarter. Given our lower production in Q1, we expect 2022 production to be in the lower half of our guidance range of 24.5 million tons to 25.5 million tons. As a result of the same factors that impacted our first quarter costs, we now expect 2022 adjusted site cash costs between CAD 79 and CAD 83 per ton. Additionally, we increased our capitalized stripping cost guidance by $50 million, which reflects the inflationary mining cost pressures in 2022. And it's important to note that the primary cost increases are not related to key mining drivers such as mine productivity and strip ratio, which remain relatively stable. Notwithstanding recent volatility in steelmaking coal prices, the FOB and CFR benchmarks are currently trading at significantly higher levels compared to our record average realized price in the first quarter, which points to continued strong results in Q2. Turning to Slide 9. Our energy business delivered $119 million of EBITDA in the first quarter, driven by the significant increase in the price of Western Canadian Select and Fort Hills ramp up to a two-train operation. In addition to its positive contribution to our bottom line, our investment in Fort Hills provides us a natural hedge against increasing WTI and diesel prices. Lower adjusted operating cost per barrel reflect higher production which is partially offset by higher costs for natural gas and diesel. The increase in WTI price also impacted costs for diluent, which is required for blending with the bitumen. And looking forward, a 20-day planned maintenance outage in the second quarter is expected to reduce production to one train during this period. But we continue to expect Fort Hills to operate at an average utilization of 90% in 2022. As we have previously stated, adjusted operating costs are expected to continue to decrease throughout the year. However, given increases in the price of natural gas and diesel, we now expect adjusted operating costs for 2022 to be in the range of CAD 28 to CAD 32 per barrel. And moving on to QB2 on Slide 10. We now have 12,500 workers on site, which is the highest to date, evidencing the recovery from the impacts of Omicron virus early in the quarter when absenteeism exceeded 20% of times with hundreds of workers in isolation. Despite these challenges, steady progress has been made since our last report just two months ago, and QB2 is now over 82% complete. And we expect first copper from Line 1 in Q4 this year, while our capital cost guidance remains unchanged. We are proud of this progress. We are also pleased to report the QB2 project has been named by Bechtel as their Global Construction Project of the Year. We completed a number of key milestones in Q1, including the completion of the power transmission line tower construction and in terms of water supply, the seawater intake and the outlet pipes are now in place on the sea floor in preparation for water extraction pipes. And we have entered the hydro testing phase for the water supply pipeline. I'm proud to say that the QB mine fleet has completed their master work scope for the tailings starter dam construction, which is now over 85% complete and the mind fleet has transitioned to open pit activities. Our focus going forward is on system completion and handover of key facilities as we drive towards first copper. Looking into Q2, key milestones include energization of the high-voltage power transmission system which is in progress, completion of the mine are infrastructure that is required for pre-stripping, and we will begin turning over key systems at the concentrator to preoperational testing, including the Line 1 mills. The photo on the right side of the slide, of Slide 10 shows workers installing the siding on the building, which houses mills. Slide 11, and shows the preparation for launching and placement of the second and final seawater intake pipe on the seafloor. And this pipe is a key component of our water supply system and was successfully deployed during the quarter. On the next slide, Slide 12, you can see the placement of one of the last modules for the electrical room at the desalination plant and the reverse osmosis units on the left side of the photo. On Slide 13, it shows preparations for the hydro testing phase of the water supply pipeline, which is a key step in construction and pre-commissioning of the pipeline for supplying water to the project for commissioning and operations. On Slide 14, you can see workers mounting the Concave inside the primary crusher. The major mechanical components associated with the primary pressure are now all installed. And next, you see the transfer station on the overland conveyor that will transport ore between the crusher and crude oil stockpile, and we will begin shortly the installation of the conveyor belts in this area. The Slide 16 illustrates the progress we are making on the assembly of the stockpile dome, which is well advanced in approaching its final height. The approximately 15-story high stacker structure can be seen feeding into the dome. On Slide 17. Here, we have an overall view of the concentrator area from February with the stack or structure and the grinding building and the background and the flotation area in foreground. The focus in this area is on completion of Line 1 in preparation for first copper. And as mentioned earlier, in Q2, we will begin turnover of key systems this area to preoperational testing, including the Line 1 mills. On Slide 18, you can see the progress on the Cyclone station, which sits above the future tailings impoundment area, Cyclone station will be used to classify the tailings once we are in operation. And finally, on Slide 19, you can see the starter dam, where we continue to make excellent progress. As I said, the Teck mine fleet has completed the master work scope for the starter dam, and it has transitioned back to the mine area. So in summary, we continue to be very pleased with the progress we are making and we are excited to build on our construction successes to date with a focus on delivering to the project's key milestones. And I encourage all of you to visit the Investors section of our website to watch the latest progress video and view the most recent photo gallery. And with that, I will now pass it over to Jonathan to discuss our financial results. Jonathan Price: Thanks, Don. Teck delivered record-setting profitability in the first quarter, largely as a result of continued strength in the prices for all of our principal products as illustrated on Slide 21. Copper prices reached an all-time quarterly record average of USD 4.53 per pound in the first quarter, while zinc prices increased by 36% to an average of $1.70 per pound. Western Canadian Select, the heavy oil benchmark price increased sharply due to the impact of the Russian war in Ukraine. FOB Australia coal prices reached peak levels in the first quarter averaging a record high of USD 395 per ton for the quarter lagged by one month and a record high of USD 487 per ton for the calendar quarter. CFR China prices traded at an average of USD 405 per ton in the quarter. As you may have noted, we published a press release on April 10 and announcing the sales volume, average realized price and pricing adjustments for our steelmaking coal business unit in the first quarter. We intend to continue pre-releasing these data points each quarter going forward given the lack of visibility and publicly available information. We've outlined the key drivers for our record profitability on Slide 22. Adjusted EBITDA of $3 billion in the quarter represents an increase of more than $2 billion compared to last year, predominantly driven by strong commodity prices. Like others in the industry, we continue to face inflationary cost pressures which increased our Q1 operating costs by 13% compared to last year. Approximately half of this increase relates to diesel costs at our operations and in our transportation costs. The diesel prices increased by 52% compared to the same period last year. Further increases in the cost of a number of our key suppliers, including mining equipment, fuel, tires and explosives are being driven by price increases in underlying commodities such as steel, crude oil and natural gas. While our underlying key mining drivers remain relatively stable, key input costs and profit-based compensation continue to put upward pressure on our unit costs and capitalized stripping guidance in 2022. Now we generated cash flow from operations of $2.3 billion in the first quarter compared to $585 million in the same period last year. This is largely a reflection of the positive impact of substantially higher commodity prices most significantly steelmaking coal. Debt proceeds from the QB2 project financing facility were $260 million in the quarter. The USD 2.5 billion facility was fully drawn in April. In the first quarter, our capital investments totaled $867 million, including $654 million for QB2 and $186 million in sustaining capital. In addition, we incurred $233 million for capitalized stripping, primarily related to the advancement of pitch for future production at our steelmaking coal operations. This was higher than a year ago as a number of development mining areas transition from sustaining preproduction capital to early stages of operations. As Don outlined earlier, solid operating performance and strong commodity prices enabled us to pay down debt and return meaningful cash to shareholders in the quarter. In January, we repaid $236 million in debt, including USD 150 million of our maturing 4.75% term notes. In the quarter, we paid out $337 million in dividends, consisting of our quarterly base dividend of $12.05 per share and a supplemental dividend of $0.50 per share. In addition, we paid out another $100 million through the purchase of 2 million Class B shares under our normal course issuer bid, 1.8 million shares or $90 million of which was completed in the first quarter. As shown here on Slide 24, our balance sheet remains strong with a net debt to adjusted EBITDA ratio of 0.6 times, investment-grade credit ratings and no significant debt maturities due prior to 2030. As of April 26, we had $8 billion of liquidity. Importantly, our record profitability and strong balance sheet has enabled us to deliver meaningful cash returns to shareholders. As Don noted earlier, in accordance with our capital allocation framework, we announced our intention to repurchase a further USD 500 million in Class B subordinate voting shares. This demonstrates both our confidence in the outlook for our business and our commitment to balance growth with shareholder returns. Going forward, we will consider additional buybacks in the context of market conditions at the time. Supplemental distributions will continue to be considered annually by the Board in February when we have the final results for the full year. Slide 26 outlines our guidance for capital investments. With the completion of QB2, 2022 will be the high watermark in our capital spend profile. As previously noted, we expect a significant decrease in capital investments into 2023 to a total of approximately $3 billion. With first production from QB2 in the fourth quarter of this year and the operation in ramping up to full capacity, we are approaching a major cash flow inflection point, where we shift from a period of significant capital investment to a period of significant cash generation. And I will now pass it back to Don for closing remarks. Don Lindsay: Thank you, Jonathan. So in closing, I have to say we are very pleased with how Teck is positioned to drive long-term shareholder value. Our first quarter results gave us an exceptional start to 2022. And as I said, this is a transformational year for Teck as we rebalance our portfolio towards copper. And as we bring on QB2 and advance our overall copper growth strategy we will rebalance and reduce the proportion of carbon in our overall business. As we've done to date, we'll continue to further strengthen our existing high-quality assets through our RACE technology transformation program and our sustainability strategy. Strong commodity prices over the last few months have accelerated our ability to return capital to shareholders. So looking ahead, we have the ability to generate even greater cash flows and returns. And with that, I'll turn the call over to the operator to open it up for questions. Operator: [Operator Instructions] The first question is from Orest Wowkodaw from Scotia Bank. Please go ahead. Orest Wowkodaw: Don, obviously, cost inflation is impacting the mining industry across the board. I'm not surprised to see your higher cost guidance in coal. But I am a little surprised that you're maintaining cost guidance in copper and zinc even when you look at it before by-product credits. Can you maybe give us a bit of color on how you're managing that and whether that's related to perhaps some hedging done for fuel or something that's keeping costs at a lower level for some period of time? Don Lindsay: I'm going to turn that question over to Shehzad. I'll just make a comment that one of the contributing factors, not just in one, but across the business is the success of our RACE21 program and will be we'll be issuing a release summarizing some of the key accomplishments there in the next short while. But Shehzad, over to you. Shehzad Bharmal: Orest, I'll start with the zinc business unit. Our higher production is part of the reason compared to last year as to -- that helps in maintaining the cost guidance and also the sensitivity to diesel, which has gone up significantly. There's a lot less in copper and zinc than it would be in coal. And of course, as Don mentioned, we have done a fair bit of work on RACE21, both Highland Valley and Red Dog, have been very active on the RACE21 side, which has helped on cost management. And as you -- and you mentioned before byproduct hedge and after byproduct credits in copper, zinc credits at Antamina have been very helpful after byproduct credits. And the same thing in the zinc business unit with lower TCs have also helped from last year. Orest Wowkodaw: Is there any -- are there any hedges or callers that are helping kind of contain costs for a certain period of time? Or is this your updated guidance reflecting full market cost? Jonathan Price: No. The -- this is Jonathan here, Orest. No, the guidance reflects the prices you see in the market. We haven't hedged any of our key input costs. Orest Wowkodaw: And then just quickly, if I may, on the capital return program, pleasantly surprised the new USD 500 million buyback. Is this something now that the Board plans to look at on a quarterly basis? Don Lindsay: I'll draw your attention to our release in February, where we said that the Board would be reviewing it regularly. We deliberately didn't use the word quarterly because regularly, it could be shorter than quarterly or it could be longer. But I think this does demonstrate that that's exactly what so. Operator: The next question is from Lawson Winder from Bank of America Securities. Please go ahead. Lawson Winder: Could I ask about the copper project pipeline? And whether or not your sort of order of preference has shifted at all, particularly with some of the smaller projects, such as Zafranal, San Nicolas and Schaft Creek. And then finally, with San Nicolas and Zafranal, would that be comfortable building those two projects alone, should they not -- should you guys not find a partner? Don Lindsay: So the way we look at it is we have three projects that are in mining terms near term, meaning that they could all be in production by 2026. And those are QB mill, the QB mill expansion Zafranal and San Nicolas. In each of those cases, we have -- the team is working away advancing the projects. In Zafranal case, the hearing and Lima and Peru took place at the end of March was very successful, very impressive. I managed to get there myself and see it in action, and we've got very positive feedback from actually the regulator that time, and San Nicolas, a lot of work on there. And I should say on both of those projects, we still have a preference to have a partner. Of course, we have a partner on Zafranal is 80% are interested 20% with MFC. But we are in discussions with different parties on San Nicolas as well. And at some point, we'll put the pin in. But what's important to us is getting the right partner. It's really like an interview process more so than a valuation process. And I think all the parties involved are excited about the project, and at some point, we'll put the opinion. We do want to stay on that schedule to have it in production by 2026. So those are the three near-term. Galore Creek would then be what we would think of as medium term. It's a 50-50 joint venture with Newmont. We're working together updating the studies on that. And of course, it has a lot of gold in it. So it is got the real advantage of grade. So something for sure that's going to be a great mine. And then the other two are longer-dated Mesaba and Schaft Creek. But even with Mesaba, we're looking at different partner and development options there as well. So I expect different announcements throughout the year. I can't tell you exactly when. But certainly, there's a lot of activity in the copper growth in, for sure. And we're also, I should say, in the market, hiring people and building the team internally. And so that if we ended up choosing to do it on our own, we'll have the capability to do so. But we really like what we've done with QB2 and our partnership with Sumitomo Metal Mining and Sumitomo Corp. I think the market really liked to it derisks the project, both financially and from a market point of view and great customers, great partners. So we think that's a pretty good model. So while we're at this stage, I think it's still worth pursuing. Sorry, a bit of a long answer, but there's a lot in there. Lawson Winder: And then on your updated goal to achieve net 0 Scope 2, I'm curious, are there any potential substantial CapEx investment that might be required on behalf of Teck in order to achieve that? And what are sort of like the main points that have to get achieved to ultimately reach that Don Lindsay: Yes. So I'm going to turn this over to Shehzad actually, but the short answer is no on the big capital. It's really all about clean power of it. Shehzad? Shehzad Bharmal: So in Chile [Audio Gap] Scope 2 purchase agreements. And remember, a couple of years ago, we converted two contracts that we had to renewable, and we have one contract left right now at 122 megawatts with the provider. And we are in the process of looking at options and working on development of new renewable projects to be able to convert that coal-fired contract over to renewable. Don Lindsay: I want to get it done faster than 2025, so I'm putting a lot of pressure on Shehzad. Shehzad Bharmal: We'll do. Operator: The next question is from Carlos De Alba from Morgan Stanley. Please go ahead. Carlos De Alba: So on QB2, congratulations on the continuous progress. I noticed that tagline 1 to start producing in the fourth quarter. But yet on the copper outlook corporate production guidance, you have not included any volumes there. Could you elaborate a little bit more why that is the case and give us a range as to how much volumes maybe just minimum, and that is the reason you are not including in your guidance, any color on that regard would be great. As well as I noticed that there was no comment related to QB2 COVID capital cost. So I just wonder if the guidance remains between USD 900 million and USD 1 billion for that. And then if I may, on the coal side, could you comment on the Chinese market and your expectations for shipments into that -- in that market in Q2 or for the remainder of 2022? Don Lindsay: Carlos, I think we've got four questions there. I'm going to take the one on guidance, I'm going to turn it to Jonathan on the copper production guidance. I'm going to ask Red to talk about QB2 since you are sit and he's on the line and can give you some insights on how things are going there. And last, it'd be real fully on the China and whole size. So on guidance, we've been quite clear, there's no change to guidance on either the definitive investment capital cost that we had put out before or on the COVID cost. So no change there at all on production forecast. Jonathan Price: Yes. On the production guidance, we haven't guided to volumes at this point in time. As you highlight, we will do so, of course for 2023 in due course. But for the time being, we continue to just follow the progress of the project, and we'll provide updates throughout the remainder of the year. Don Lindsay: And then Red is on the line and Red since QB2 is on the table, maybe turn it over to you to share your thoughts. Red Conger: Yes. Thanks for the question, Carlos. Just in general, we're really excited about where we're at right now. Our team has come through this Omicron wave extremely well. We're very proud of how they've managed the health and safety of our employees. They weathered through these really high absentee rates that we had earlier in the year, large hundreds of people in quarantine as many as 800 that at one point. And we've got a really clear path now to first copper in the fourth quarter. So all of that is really positive for us, momentum's building and we're having a very good month right now in April. When you talk about volumes of production during particularly the first couple of months of ramp up, let me just give you some color on what that looks like on the ground. You start this equipment and start putting load in, rock in it. And then the first thing you do is you turn it off and your retorque folds and check tolerances and clearances and those kinds of things, and you turn it on and you put more rock in it. One of the next things that you do is adjust the shoots that all have to be kind of custom fit and formed as you get the larger volumes of material going in there. So it's really herky-jerky up down, up down shakeout process that you go through. So we're very comfortable with where we're headed in the fourth quarter and just are not going to make guesses about how that up down, up down, goes in the first couple of months getting this thing really tightened up and fine-tuned and ready to run for decades. Don Lindsay: And then Real Foley for the coal. Real Foley: Yes. Thanks for the question, Carlo. So on coal sales to China for 2022, we're expecting they'll be between 25% and 30%. Keep in mind that we always reserve tons for spot sales, and we'll be placing these tons in markets where we achieve the best returns. Operator: The next question is from Lucas Pipes from B. Riley Securities. Please go ahead. Lucas Pipes: And Don, I have a higher high-level question. So QB2, kind of home stretch there, much lower CapEx next year. You're generating an incredible amount of free cash flow in the coal business here in Q2 and possibly longer given the global backdrop. And I'm reminded of the book never rest on your ore. So what are you going to do next year in the years to come, you have a really strong hand of cards here. What are your priorities? Don Lindsay: I'd like to buy the whole company back myself. We think we're in a great position. We think the company is in really strong shape. We have great optionality to continue to grow the copper business. There are seven different projects, three of which were are, as I just mentioned, reasonably near term, and they can be developed on a capital-light basis, right? That's our objective. That's one of the reasons why we want to partner and so on. And so if we keep going down that path, that's going to put us in a very good position to continue to return capital to shareholders and whether it's by buybacks or dividends, it gets decided at the time. And so that's a pretty clean strategy, easy for people to understand great cash flows from our steelmaking coal business, our energy business now and zinc business and that cash going into the copper growth, which reflects what's going on in the world. We've got a very serious global commitment to decarbonization which means electrification, which means copper. And so that's -- we're basically reflecting what's going on in the world. So I think we keep executing. As you can tell from listening to Red Conger in his color on the project as the project is in very good hands. The whole team is pulling together here. And so we think the next few years are going to be very exciting. Lucas Pipes: And my second question is higher level on the coal side. I'd say the one area where the greatest concerns from investors announcements in China with regards to increased coal production. Do you have expectations for your success in alleviating some of the coal pressures. And what this could mean for global coking coal prices in the quarters to come? Don Lindsay: Yes. I'll turn that over to Real. But I'd make sort of this big picture observation. Throughout the years, there have been different announcements and events in different markets, china included. And it's one thing to make announcement. It's another thing to see what actually happens. And if you track the steelmaking production in China over the last year, it's pretty stable. But Real, over to you. Real Foley: Yes. Thanks, Lucas. So yes, China increased overall coal production during the quarter. When you look at it just for coking coal, the increase is very small. And local consultants in China are expecting that the increase in production this year could be maybe up to 4 million tons, that would bring it up to about 494 million tons compared to 490 million tons last year. Now I say up to 4 million because there's a number of challenges with safety inspections that are continuing. There's also the 20th party Congress that will take place in October, November this year. Those increased safety inspections at the coal mines are expected to go on from now right through to the 20th party Congress. So there's going to be pressure actually to maintain even production at the level that it's at right now. Operator: The next question is from Brian MacArthur from Raymond James. Please go ahead. Brian MacArthur: Can I just follow up on Slide 26, you talked about the $2 billion decrease in capital next year, which is obviously very positive. But then you go on to say sustaining capital, capitalized strip all coming back down. So if I just by ball that, that's maybe, I don't know, $500 million of that. The other $1.5 billion decrease. Some of that's QB2, obviously, but are there other growth projects built in there? And where I'm going with it a little bit is, obviously, the QB2 cash is different than the corporate cash, just given your relative percentage ownership. So I'm just trying to figure out -- I actually thought it might have gone down a little bit more on a corporate basis. I'm just trying to figure out what else is in there if you can give us any color. Jonathan Price: Yes. Thanks for the question there. So we will see a reduction in sustaining capital year-over-year into 2023. We've guided this year to 1.4 sustaining. We think a longer-term sustainable level is closer to $1 billion, including QB2, but we're not going to get all the way there by 2023. So you'll see some step down in sustaining capital. We'll also see a step down in capitalized stripping, as you mentioned. With respect to QB2, it's important to note here that all of these numbers are on 100% basis for QB2 because we consolidate that. If you look at our guidance in terms of to go capital and you look at the guidance for 2022, you'll see there's a reasonable amount of capital carried over into the first half of next year, and that could be $600 million or $700 million. So that as well explains what you don't see sort of a cliff in the QB2 capital year-over-year. And then finally, I'd say, if you look at our guidance for this year, we've guided to 300 million in other growth across the business, and that goes to a bunch of studies that we're doing across many of our base metals assets and we expect that to continue as well. As Don mentioned, we have this pipeline of projects ahead of us. We're readying a number of those for near-term development decisions. And therefore, the studies and sort of pre-execution work continues to ramp up. So there's a lot of growth activity still in the portfolio in 2023, both QB2 and future options, which explains why the number perhaps isn't falling as much as you might assume. Don Lindsay: I was going to say, if you want to further break down on that, just contact Fraser and he can help with the numbers. Brian MacArthur: Because that's very helpful. That's exactly what I was trying to get at. And can I just ask QB working capital, does that get counted in that $700 million as well carryover? Jonathan Price: No. The working capital is not in there. Operator: The next question is from Jackie Przybylowski from BMO Capital Markets. Please go ahead. Jackie Przybylowski: I just want to follow up on the question Orest asked earlier in the call on the share buyback. So I guess there's a lot of moving parts. I just want to make sure I'm clear. Can you maybe talk a little bit about how quickly you expect to complete this new USD 500 million in share buyback. And can you just maybe remind us if you finish the CAD 100 million that you announced in February and also the 40 million share NCIB that was approved in November, is there where you're at in all of those programs, if you don't mind, things. Don Lindsay: Yes, sure. So the November announcement is the annual announcement of the renewal of the NCIB and you pick a total possible numbers, and there is a regulated maximum. And so we put 40 million shares there, which is a big number. That doesn't guarantee that you're going to do all 40 million shares, but it gives you then the room to start. And then, of course, you have to authorize a dollar amount. The Board gives myself and Jonathan amount to work with. When we were doing the special dividend and increasing the base dividend, we just started with a small amount to get the NCIB going. And we completed that amount a while back. So we just reloaded last night. As we had said in February, the Board will be reviewing it regularly. And so USD 500 million gives us something to work with. I couldn't tell you how long it's going to take to execute. That really depends on market conditions and so on. And then the Board will review it again. They reviews it again, our export meeting is actually at the end of May, there's different for me scheduled. And generally, we would review it as a scheduled board meeting. But if Jonathan and I feel that we want to reload sooner. We can call a quick call or something. So it will be reviewed regularly, and that's basically our position. And that sort of matches as we continue to generate all this cash, we don't know what the commodity prices are going to be next quarter or the quarter after. We've seen a lot of volatility, as you know. And so -- but while the prices are reasonably high where they are now. We're general this cash. We probably want to review that buyback very regularly. And then if the prices happen to fall off, then that may be sort that. So I think that's about all we can tell you. Jackie Przybylowski: And sorry, Don, this is probably a really dumb question, but the authorization -- the normal annual authorization of 40 million shares in the fall. I mean that possibly would kind of get gobbled up by that Q1 $100 million announcement in this new announcement. So would you need to go back and add to that blanket NCIB approval if you wanted to do another buyback at some point later this year? Don Lindsay: Yes. So NCIB is a core is bid. I encourage you to go and read the rules on that. We are buying back stock under that authorization. If we get to the maximum allowed by the regulators under that, we would then have to actually do a tender offer something more formal. So right now, rating under that 40 million shares, and I suspect that will be enough for now. Jonathan Price: And Jackie, just for context, we bought back CAD 100 million through to April, and that was 2 million shares, and the NCIB is 40. So there's plenty of headroom under that right now, even accounting for the USD 500 million that was authorized yesterday. Jackie Przybylowski: And then maybe I could just ask about the QB mill expansion. I know you mined in the release that you've got a pre-feasibility that you're working on. I mean that sort of means different things at different companies sometimes. So can you maybe talk a little bit about what level of detail you're expecting to include in that pre-feasibility study? Don Lindsay: I'll turn that 1 over to Red Conger, please. Unless you want to jump in. Red over to you. Red Conger: We're really excited about this development. We've checked roughly 12 key calculations for fatal flaws. One example would be can the tailing dam that we currently have constructed accommodate the rate of rise that we would -- that we would incur from increasing the capacity by 50%. So we've gone through those kinds of things, got positive engineering results on all of those. So that's what's really triggered us to be bullish about this particular approach. And we're actually working on combining the elements of the feasibility study into the work that we're doing right now to fast track this thing. So we're trying to get all of that in place to do permitting, et cetera, here at the end of the year. Operator: This concludes today's question-and-answer session. I would like to turn the meeting back over to Mr. Lindsay. Don Lindsay: Okay. Well, thanks all for attending today. We're very excited about position we're in, very pleased with the results in Q1. Q2 is looking even better. And so we look forward to discussing that with you at the next call in July. Thanks very much. Operator: Thank you. The conference has now ended. Please disconnect your lines at this time, and thank you for your participation.

Operator: Ladies and gentlemen, thank you for standing by. Welcome to Teck's Fourth Quarter 2021 Earnings Release Conference Call. At this time all participants are in listen-only mode. Later, we will conduct a question-and-answer session. This conference call is being recorded on Thursday, February 24, 2022. I would now like to turn the conference call over to Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analysis. Please go ahead. Fraser Phillips: Thanks very much, Patrick, and good morning, everyone, and thank you for joining us for Teck's fourth quarter 2021 results conference call. Please note, today's call contains forward-looking statements. Various risks and uncertainties may cause actual results to vary. Teck does not assume the obligation to update any forward-looking statements. Please refer to slides two and three for the assumptions underlying our forward-looking statements. In addition, we will reference various non-GAAP measures throughout this call. Explanations and reconciliations regarding these measures can be found in our MD&A in the latest press release on our website. Don Lindsay, our President and CEO, will begin today's call with full year and fourth quarter highlights. He'll be followed by Jonathan Price, our CFO, who will provide additional color on our financial results. We will conclude today's session with Q&A period to address any remaining questions. With that, I'll turn the call over to Don. Don Lindsay: Thank you, Fraser, and good morning, everyone. Well, 2021 was a great year for Teck. We are pleased to close out the year by setting a number of financial records despite what was a very challenging backdrop. Solid operational performance and strong commodity prices drove $6.6 billion in adjusted EBITDA in 2021 and the highest ever quarterly adjusted EBITDA of $2.5 billion in Q4, which was more than triple last year's level. I am incredibly proud of the tremendous resiliency demonstrated by our team all across the company, who continued to operate our assets safely and sustainably through heat waves; a heat dome, I've never heard that turn before; wildfires; incredibly heavy rains, deep freeze, freezing temperatures, record cold temperatures and the continued impacts, of course, of the global pandemic. Unprecedented floods brought on by three atmospheric rivers, a term I also hadn't heard, three of them in four days in the fourth quarter, tested the resiliency of our steelmaking coal supply chain in British Columbia. And despite major rail and infrastructure damage caused by what is now referred to as one of the worst natural disasters in Canadian history, there was no material impact on our production. We reached multi-year collective agreements at Antamina, QB, Fording River and Elkview in 2021 and also at Highland Valley subsequent to year-end. So we now have long-term stable agreements at our three largest mines. We continue to advance our priority projects in the fourth quarter and overall progress at our flagship QB2 copper project has reached 77%. We are focused on delivering on the projects' key milestones, including the commissioning of systems as they are completed. And we continue to expect first production in the second half of this year. Teck is already one of the world's lowest carbon-intensity producers, rich of copper or zinc and steelmaking coal, but we are taking further action to support global efforts to combat climate change. We continue to reduce the carbon footprint of our operations as we progress towards our target of net zero by 2050. And in November, we announced an agreement with Oldendorff Carriers to employ energy-efficient bulk carriers, which is expected to reduce our Scope 3 emissions on a portion of our assuming coal shipments by up to 40%. The estimated savings can be up to 45,000 tonnes of CO2 annually, which is the equivalent to removing nearly 10,000 passenger vehicles from the road. In January, we announced our partnership with Caterpillar to deploy 30 zero-emission large haul trucks at our mining operations. And this is exciting progress because the decarbonization of our fleet, represents the single largest opportunity to reduce our Scope 1 emissions. And overall, we're very pleased to see our continued efforts in ESG are being recognized by the industry. So for the third year in a row, we are ranked number one in the metals and mining industry on S&P's Corporate Sustainability Assessment. We are also ranked number one among North America's metals and mining companies by Moody's ESG, and number 2 in diversified metals by Sustainalytics and rated AA by MSCI for our ESG performance. Turning to Slide 5. Annual adjusted EBITDA of $6.6 billion in 2021 was a record, reflecting strong contributions from each of our copper, zinc and steelmaking coal business units. And importantly, our record profitability enabled us to deliver meaningful cash returns to shareholders. Yesterday, the Board approved an amended dividend policy and declared a dividend and authorized a repurchase of up to $100 million of Class B subordinate loan shares in 2022. Under the new dividend policy, the annual base dividend has been increased from $0.20 a share to $0.50 a share. And in accordance with the new dividend policy, our capital allocation framework, the Board declared a dividend of $0.625 per share, consisting of $0.125 of a quarterly base dividend and a supplemental dividend of $0.50 per share. In addition, the Board authorized annual share buybacks up to $100 million and additional buybacks on top of that will be considered regularly. Taking into account the new annual base dividend in 2022 and the supplemental dividend and assuming the $100 million in share repurchases, these initiatives represent a total of approximately $635 million in aggregate of dividends and share repurchases. Our ability to deliver a supplemental dividend in 2021 and the increased annual base dividend and the new annual share buyback demonstrate both our confidence in the outlook for our business and our commitment to balance growth and returns to shareholders. So turning to our operations on Slide 7. Fourth quarter EBITDA for our copper business unit increased by 64% compared to last year supported by copper prices, which reached an all-time quarterly record. Production was in line with plan, although copper sales were impacted by heavy rains and extreme winter conditions, which affected rail service and shipment schedules. Net cash unit costs after cash margins for byproducts were USD 1.52 per pound. That's $0.25 higher than last year. We continue to experience inflationary cost pressures. And we also are seeing increases in our profitability, based payments at Antamina, and that's included in that 25% increase. As I've already noted, we are pleased to have reached multiyear collective agreements in Antamina, Quebrada Blanca and subsequent to quarter end at Highland Valley. So looking ahead, we expect strong performance from all of our copper operations in 2022. Moving on to zinc on slide 8. Our zinc business generated $290 million in EBITDA in the fourth quarter, and that's an 80% increase compared to last year. The increase was driven by higher zinc prices and partly offset by higher royalty costs related to profitability at Red Dog. Lower Red Dog zinc and concentrate production was primarily due to lower mill throughput and recoveries as a result of unplanned maintenance, which is now behind us. Refined zinc production at our Trail operations was 11,800 tonnes lower than a year ago due to issues we encountered in the commissioning of new equipment as well as unplanned maintenance. Looking ahead, Trails 2022 production will be impacted by major maintenance activities from September to November, when the KIVCET furnace hearth and the dome of one of the zinc roasters will be replaced after 25 years of operation. And our Red Dog royalty will increase to 40% in October from 35% currently based on our operating agreement with Mana, which outlines a 5% increase every fifth year to a maximum of 50%. In 2022, we expect a significant increase in zinc production at Red Dog and a decline in total cash unit cost before byproduct credits despite ongoing cost inflation pressures. Turning to slide 9. Our steelmaking coal business unit had a record fourth quarter, generating $1.7 billion of EBITDA in the quarter, and that compares with $118 million last year. Realized prices averaged US$351 a tonne, which was $244 higher compared to a year ago. And to capitalize on this premium pricing, we maximized available processing capacity to meet additional sales opportunities to China in the fourth quarter. Thanks to our Neptune facility, which had ramped up and was exceeding design capacity during the quarter, we ended the first half of November with historically low levels of clean coal inventory at the mine sites. This allowed us to continue operations with minimal production impacts despite the logistics disruptions that occurred in the latter half of the fourth quarter. Sales in the quarter were 5.1 million tonnes, which was slightly below our revised guidance. We sold 1.8 million tonnes of steelmaking coal to customers in China in the quarter. That was pretty similar to the three previous quarters. And annual sales to customers in China totaled 7.6 million tonnes or approximately 30% of our annual sales volumes. Sales to our customers in China are, of course, at CFR China prices, which reached a record high of more than US$610 during October. And although, the steelmaking coal price in China decreased quite a bit during the fourth quarter, the average CFR China price for the quarter exceeded FOB Australia price assessments. The remainder of our sales are still based on the FOB Australia price, which also averaged at a record level through the fourth quarter. And fourth quarter adjusted site cash cost of sales of $72 per tonne were higher due to inflationary pressures, including higher diesel prices, profit-based compensation and our investment in RACE21. Our annual adjusted site cash cost of $65 per tonne was within our previously disclosed guidance range of $64 to $66. Fourth quarter transportation costs of $49 per tonne reflect the extraordinary vessel demerged in the quarter as a result of port service disruptions and higher rail fuel surcharges and the higher costs were partially offset by lower port costs as higher volume of sales run through Neptune. And as a result of prolonged supply chain disruptions, we entered 2022 with very high mine site steelmaking coal inventories with CN and CP Rail making progress towards fully restoring rail service to our cold terminals, we expect to be able to largely recover delayed fourth quarter sales within the first half of 2022. And assuming full recovery of the rail network, we expect sales to be between 6.1 million and 6.5 million tons for Q1. We expect 2022 steelmaking coal production between 24.5 million and 25.5 million tons. Our 2022 production estimate is reflective of prudential production curtailments in the first quarter due to higher inventory levels, but we see that starting to decline now and have made some good progress recently. Further, while the recent surge in Omicron cases has not had a major impact on productivity to-date, continued absenteeism has the potential to have a negative impact on our operations. So, despite unprecedented logistics challenges and continued inflationary pressures, our steelmaking coal business unit delivered record financial results in 2021 and is well to deliver very strong financial performance again in 2022. And I note that Australia FOB prices are up again today, and they are currently over $450 per ton back, closer to $459 per ton, up about $18 in the last 3 days. Turning to our Energy business unit on slide 10. Our results improved from the fourth quarter 2020 largely due to the 88% increase in the Western Canadian Select oil price, which resulted in a positive operating netback. In the fourth quarter, the focus was on ramp-up to full rates. We were pleased to see Fort Hills safely and successfully resumed to a two-train operation in December. The facility is expected to operate at an average utilization rate of 90% throughout 2022. The midpoint of our guidance represents an increase of approximately 85% compared to 2021 for our share of the annual production. And with higher production and productivity, adjusted operating costs are expected to come down by approximately 40% to between $26 and $30 per barrel in 2022. Underpinned by strong global energy prices, we expect to see a meaningful improvement in Fort Hills EBITDA in the first half of 2022. And I note that WTI is $97.33 as we speak and with differentials fairly stable, that means that we have a Western Canadian Select price in the mid-$80s or well over CAD100. Moving on to slide 11. As I mentioned earlier, we continue to advance construction at QB2 with overall progress now having reached 77%. We are very proud of Q4, by the way, that we achieved 11% completion in that quarter and 35% for the whole year. We are proud of this achievement especially in light of the challenges that we have faced around COVID-19. The number of cases in Chile rose very rapidly in January and early February. So, we weren't able to continue the rate of progress that we were making in Q4 during that time. We are continuing to aggressively mitigate the impact of the pandemic on QB2 and we believe that we're past the peak there, and this has improved quite significantly from the worst of it. Construction continues to progress, and we remain focused on delivering key systems as we position for first copper later this year. We have completed more than 90% of the water supply pipeline welding, and the tailings starter dam is more than 85% constructed. We've also energized the port area substations, and we are continuing with our preoperational testing of the desalination plant. Our operations and commissioning teams are working in close collaboration with the construction teams and are busy commissioning systems as they are completed and handed over. And this includes commissioning the port substations, the mine electrical loop and the first two electric shovels. We've also completed commissioning and testing of the autonomous haul truck system, and these trucks are now doing productive work in the mine area. And I was able to visit and see them in action in December. A number of us will be going again next month. Turning to Slide 12, which shows the testing and commissioning of the electrical systems associated with the mine electrical loop. Energization of the mine loop was an important step in completing commissioning of our mining fleet. With the mine loop energized, you can see the two new electric shovels that we've commissioned on Slide 13, and these shovels will be used for pre-stripping mining activities. Slide 14 is a view of the 15-storey-high ore stack restructure, which transfers ore from the crusher to the ore stockpile. And you can also see the commencement of the erection of the ore stockpile dome in the center of the photo. Slide 15 is showing the grinding building where we have all the mills in place. We're working on the mechanical and electrical systems and we've commenced the installation of the siding. The next slide, Slide 16, shows one of the 85-meter-diameter tailing thickenings, where we are completing the installation of the internal mechanical components now. And from here, Slide 17, we go to the starter dam at the tailings management facility, where we continue to make excellent progress and are now over 85% constructed. The Teck mining fleet has done a great job in providing materials for construction. On the right, probably you can see the pond liner, which is in place in preparation for receiving water. Work on the main jetty is progressing well. It will support both the ship loader and the seawater intake system. And the subsea work including the 440-meter-long brine outfall pipe and the first to two water in tank pipe systems are now in place in preparation for seawater extraction. As we head back onshore, you can see we've energized the four substations there on Slide 19. And this energization is an important step towards commissioning of the infrastructure at the port area. And finally, Slide 20 shows the roof structure in place for the 75,000-tonne capacity concentrated storage building at support. So in summary, we continue to be very pleased with the progress that we are making. And we are excited about building on our construction successes to date with a focus on delivering to the project's key milestones. And I'd encourage you to visit the Investors section of our website to watch a video of the project and view our latest quarterly photo gallery. So with that, I will now pass it over to Jonathan to discuss our financial results. Jonathan Price: Thanks, Don. Profitability in the fourth quarter improved significantly from a year ago as a result of higher prices for all of our principal products as shown on Slide 22. Copper prices reached an all-time quarterly record of US$4.40 per pound in the fourth quarter, up 35% from last year, while zinc prices increased by 29%. Western Canadian Select, the heavy oil benchmark price was 88% higher compared to the fourth quarter last year and has continued to increase through the first quarter of 2022, as Don outlined. Similarly, we benefited from record-high steelmaking coal prices. Realized prices in the fourth quarter were US$351 per tonne, more than a threefold increase from $107 a tonne a year ago. As Don noted, high realized prices reflected our strategy to increase our sales to customers in China in 2021, which was priced at a premium to FOB Australia price assessments. A large increase in steel making coal prices from Q3 to Q4 resulted in pricing adjustments of approximately $69 million in the fourth quarter or $44 million on an after-tax basis. Now we've outlined the key drivers of our record profitability on slide 23. We generated $2.5 billion of adjusted EBITDA in the quarter, an increase of more than $1.6 billion compared to the same period last year. This was largely driven by higher prices across all of our principal commodities, partially offset by lower sales volumes, higher operating costs and the strengthening of the Canadian dollar. It was also impacted by asset impairment and impairment reversal related to Fort Hills and [Indiscernible] respectively, in the quarter. We continue to experience inflationary cost pressures, notably in diesel prices, mill steel and replacement parts, driven largely by price increases for underlying commodities such as steel, crude oil and natural gas. The inflationary pressures reflected in fourth quarter operating results across our business are expected to continue in 2022. Cash flow from operations in the fourth quarter was $2.1 billion compared with $594 million a year ago. Our capital investments in the quarter totaled $1.1 billion, including $715 million on QB2 and $300 million in sustaining capital. Capitalized stripping was $186 million, primarily related to the advancements of pits for future production at our steelmaking coal operations. This was higher than a year ago, primarily due to decreased stripping activities in Q4 2020 as a result of COVID-19 restrictions. Debt proceeds were primarily driven by $303 million from our US$2.5 billion project financing facility in the quarter. Net-net, we also repaid $268 million on our revolving credit facility, bringing our balance on this facility to nil. Including these and other minor items, we ended the quarter with cash and cash equivalents of $1.4 billion, an increase of approximately $1 billion as compared to the end of the last quarter and the same period last year. Now turning to slide 25. We're pleased to have enhanced our already strong financial position. Our solid operating performance, combined with strong commodity prices, resulted in a 49% adjusted EBITDA margin and $6.6 billion in adjusted EBITDA for the year. Our net debt-to-adjusted EBITDA ratio was one-time. During the quarter, we converted our US$4 billion committed credit facility into a sustainability link facility with zero amounts drawn at this time. Subsequent to the end of the quarter, on January 18, 2022, we redeemed US$150 million of our maturing 4.75% term notes. As of February 23rd, we had $7 billion of total liquidity. Importantly, our strong financial performance enabled us to return meaningful cash to shareholders. Applying our capital allocation framework on slide 26 to our cash flow from operations of at $4.1 billion in 2021, we deducted sustaining and committed growth capital of roughly $3 billion, net of QB2 project financing and partner contributions, $106 million of base dividends and $335 million of debt repayments to improve our capital structure. This left us with over $730 million of available cash flow. As you know, the first 30% of any available cash flow is automatically returned to shareholders, and this totaled approximately $220 million. According to our framework, the balance of 70% can also be returned to shareholders or otherwise used for investment in growth or debt reduction or a combination of these. As Don noted at the start of the call, the Board made the decision to pay a supplemental dividend of $0.50 per share, or $267 million, representing 37% of available cash flow above the minimum stipulated in our capital allocation framework. And going forward, the Board approved a 150% increase in the annual base dividend to $0.50 per share per year from $0.20 per share and authorized an annual share buyback that allows us to repurchase up to $100 million. Additional buybacks will be considered regularly. The increased base dividend is indicated by our confidence in the outlook for Teck, reflecting both the near-term strong cash flow generation of our business units and our anticipation of the transition of QB2 from construction to operations. The annual share buyback provides management with a discretion to repurchase our Class B shares, such that we can offset the impact of dilution created by issuance of shares resulting from the exercise of employee stock options, as well as ensuring the flexibility to time repurchases in the context of market conditions. As shown, we have amended our capital allocation framework to reflect this additional regular return mechanism, with the cash used for share repurchases during the year to be deducted from our calculation of available cash flow. Slide 28 outlines our guidance for capital investments for 2022 and our outlook for a dramatic decrease in spending in 2023. We are approaching a major cash flow inflection point in 2023, driven by the completion of QB2. Sustaining capital spending is expected to increase in 2022, relative to 2021 levels, due to one-time projects, including the Harmer project to relocate maintenance and office facilities at the Elkview steelmaking coal mine to allow access to the next phase of mining, a major smelter turnaround with Trail, a haulage truck rebuild program and the inclusion of sustaining capital for QB2 for the first time. In total, we expect these factors to increase 2022 sustaining capital by approximately $500 million over 2021 levels. We expect to spend in Canadian dollar terms C$2.2 billion to C$2.5 billion of QB2 development capital on a consolidated basis in 2022. With the completion of QB2 and a normalization of other categories of spend, such as capitalized stripping, we expect our total capital expenditures to decline by roughly $2 billion into 2023. And with that, I will pass it back to Don for closing remarks. Don Lindsay: Thank you, Jonathan. So as you can see, this is an exciting year for Teck. This is the year of transformation where we rebalance our portfolio and really start ramping up our copper production. We are months away from the startup of QB2 in the second half. We're particularly excited by this position, because we find ourselves as QB2 ramps up to full capacity, we expect to shift from a period of significant capital investment to what will be a period of significant cash generation. And at between US$350 a pound and US$450 a pound copper prices and with QB2 at full production, we believe that we can generate somewhere between $6 to $7 per share of what we call available cash flow for shareholders, which we can use to grow our copper business, while returning significant cash to shareholders at the same time and also maintaining a strong investment-grade balance sheet. And as a result of Teck's long-term and consistent commitment to seek out high-quality long-life base metals resources, we have a portfolio of high-quality growth options that is the envy of our peers. And after carefully assessing multiple configurations for the further expansion of QB beyond QB2, we have determined that the next phase of development will be the QB mill expansion or as it will be known, QBME. The mill expansion is expected to increase concentrate throughput by 50%, with the addition of one identical, semi-autogenous grinding line, that's one SAG mill and two ball mills. And we believe this configuration optimizes the time line to obtain approval, the permitting process and to progress the development of this world-class ore body well, leveraging the existing infrastructure that we're building right now for maximum capital efficiency. The QBME feasibility study has already started, including all of the environmental baseline activities. And with completion targeted for the fourth quarter of this year, QBME will be a significant contributor to our medium-term copper growth portfolio. At the same time, we are also continuing to progress the project satellite assets. At Zafranal, a feasibility study has been completed, and we have now received confirmation of our SEIA admissibility in Q1 2022. So that's a very, very important milestone. At San Nicolás, we've commenced work on a pre-feasibility study and -- that was in Q1 and with completion targeted for Q3 of 2023, and we are deeply in partnering negotiations right now. At Galore Creek, Fluor has been appointed to undertake a pre-feasibility study starting in Q1 with completion targeted in the first half of 2023. So that's another notable step with our partner, Newmont. Finally, strategic technical and commercial assessments for the advancement of NuevaUnión, Mesaba and Schaft Creek are ongoing. So in closing, we're pleased with how Teck is positioned to drive long-term shareholder value. There are meaningful opportunities ahead as global growth and the transition to a lower-carbon economy drive new copper and metal demand. And as a result of Teck's long-term and consistent commitment to seek out high-quality long-life base metal resources through mineral exploration, discovery, acquisition, partnership and development, we have a portfolio of high-quality growth options that is the envy of our peers. And as we move forward, will rebalance our portfolio to copper, while reducing the proportion of carbon in our overall business. The strong performance in the commodity prices over the last few months has accelerated our ability to return capital to shareholders. And looking ahead, we have the ability to generate even greater cash flow and returns. And as we've always done, we will continue to strengthen how we operate, both through cutting-edge innovation to improve productivity and through our leading ESG performance. And with that, I'll turn the call over to our operator to open up for questions. And I should say that we're all doing this call remotely. And so we have people in different time zones on lines all over the place. So after your questions, we ask it may take a moment or two to till we sort of who's going to answer it. Operator, over to you. Operator, over to you. Operator: [Operator Instructions] The first question is from Greg Barnes from TD Securities. Please go ahead. Greg Barnes : Thank you. Good morning. Can you give any comments about the coal sales into China in 2023 as you had last year? Don Lindsay: Okay. And congratulations, Greg. So I'll turn that question over to Réal. We've done a lot of thinking but as you know, the CFR price and the FOB price do not necessarily move in sync, sometimes one side or sometimes the other side. But Réal, over to you. Réal Foley: All right. Thanks, Greg. So overall, looking at 2022, we're expecting our sales distribution to be similar to 2021. As we've discussed previously, we're continuing to maintain our supply to our ex-China customers because those are long-term relationships. And we're confident as well in China as the steel production recovers. Actually, we've seen steel production already come back very strongly right after the Olympics. So, we see that as continuing to support CFR China pricing as China continues to be short hard coking coal. So – and the last point is, we keep a portion of our book for spot sales. And of course, these spot sales will be placed in markets where we achieve the highest returns for Teck. Greg Barnes: Great. Thanks Real. A follow-up question again for you, Don, on coal. Your thinking around the near-term future of coal in your portfolio seems to be evolving. Can you talk about how you're positioning the business, in your mind, from this point forward? Don Lindsay: And when you say the business, you mean the overall portfolio? Greg Barnes: Yes. Coal in the overall portfolio and how you see that... Don Lindsay: Nothing has changed from what we've said before that we're on the journey to rebalance our portfolio so that carbon -- both coal and oil sands will be a lower percentage of the portfolio, whether you measure it in terms of revenue or EBITDA. And this is a big year of transformation for that because we double the consolidated copper production in QB2. But as we're going to start featuring throughout the year, the other projects in our portfolio are probably coming a little sooner than people might have expected. And then we hope to announce the partner on say -- in due course. It's taken a little longer than we thought, but we're certainly deep into it. And we're giving more information today in the next few weeks on QBME and moving at a pace. So the coal part of it will reduce in proportion naturally as copper grows. But we still had the same position on oil sands on the Fort Hills project that I've talked about before, so nothing has changed in that. But we're in the midst of our first quarter operating with 2 trains running. And so while -- that was a long time in coming, but it's up and running now. It was tough in the first couple of weeks of January, when temperatures were so cold and so on. But it seems to be going smoothly now. So that will give us some financial results and allow us to move forward on whatever strategic action we take on that. So we believe that the carbon part of portfolio will be reduced in that step. And then we'll take a look and say, well, can we get down to a level that shareholders find acceptable by keeping the whole coal business or do we need to reduce our exposure there somewhat. We love the business. As you can see, it's a tremendous cash generation business. And I just want to give a shout-out to our whole team that works in the coal division because there's a lot of ESG pressures and so on. But -- they are so dedicated, so determined and innovative in addressing issues. We've now got tremendous water treatment capacity up and running in the highest minimum concentrate area. It's really going well. Fish population has been increasing and so on. So I am just so proud of everything we do there. So I call it one of the best mining businesses in the world. And I say that frequently to our people. I should say it publicly, too. That said, we know that with all the ESG pressures and movements, there's a lot of people that shy away from anything called coal even though it's the good coal, steelmaking coal that the world absolutely needs for a low-carbon future. And so we have to take that in consideration. But the Board has been studying this intensely for a couple of years and even more intensely recently. But whether any specific action is taken in the next few months. I don't know. Nothing is imminent, that's for sure, but we sure look at it a lot. I do want to say that our coal, our steelmaking coal is amongst the highest quality in the world. And if you produce a tonne of steel with our coal, there's between 5% and 30% lower carbon emissions than the coals from the US, Australia, Mongolia and so on. So it's a very valuable business, and it's certainly doing extremely well, especially with coal prices having jumped $18 a tonne in the last three days. So sorry, that's a lot, Greg, but that's how I'm thinking about it. Greg Barnes: That’s great. Thanks, Don. Just wanted to clear that up. And I’ll pass it on. Operator: Thank you. The next question is from Orest Wowkodaw from Scotiabank. Please go ahead. Orest Wowkodaw: Good morning. Couple of questions for me, if I could, Don. First one, I've noticed that the languaging around the share buyback seems to suggest that the Board may consider buybacks a lot more often than just annually. Is that the right way to interpret it, that we could actually see something reviewed quarterly? Don Lindsay: We didn't say quarterly, but we said regularly. But the direction of your question is correct that -- where we're at now, we're 77% complete of QB2. But there's still a lot of capital this year. And so we're taking a prudent measured approach. We wanted to increase the base dividend. We wanted to implement the capital allocation framework. And we put in a pretty decent supplemental dividend on top of that, which in total gives you $1 for the year and then start the buyback. We wanted to have the approvals in place so that if events in the world happen as they seem to be happening in the last 24 hours, and there's moments of weakness or -- we can be ready and we can start any time. But we didn't want to go too far right now until we get further on QB2. But if you roll the clock forward a quarter or two, and we're over -- 90% or something and there's no particular disruption, we're generating the -- that these commodity prices can generate, then why would we wait all the way until next February or something? So we wanted to signal that the Board is very attuned to this issue. And it will be a subject of discussion frequently as cash is generated. But month-by-month, these prices makes a huge difference to this company. Like every month, there's a lot of cash that comes in. So we would look at how best to deploy it. And I think when you see QBME and how that would be financed it St. Nick and how that would be financed, you'll see the ability to still grow copper while generating a lot of cash that's available for return to shareholders will start to unfold more. And then the Board can make those decisions in that context. Sorry, I missed the first question but-- Orest Wowkodaw: Thanks Don. Just as a follow-up on QB2, you gave us a fair amount of status updates on the key pieces, but what about the concentrator? Where is that at with respect to completion? And is that now the critical path to start up? Don Lindsay: Very good question, and I look at pictures of it every day. So, I'm going to ask Red Conger to take that question and he may work with Alex Christopher as well. But Red, over to you. Red Conger: Good morning Orest appreciate the question. Yes, it's been a busy time for us on the project and we're pleased with progress as Don had mentioned. Just specifically on the concentrator, when we talk about critical path through grinding line 1, that still remains the critical path. So, that work is key to getting the first copper production. We did a lot of work with our contractors late last year to, as you have seen, reassess what the COVID capital cost impacts are going to be. We renegotiated the contract with them, taking all of the current circumstances into account, hiring additional people, et cetera, getting everybody aligned on the construction plans as they are today and the completion date. So -- and I'll tell you, we've -- Alex has been down there. I've been down there December, January, and February, working closely with the team on these issues. And when I walk that concentrate in that grinding line and compare it to other things that we've done elsewhere in the world, the debt to go on and the cost to go on. This is all very practical, very doable, and we're excited the milestones coming up, the first one being the first water to commission the desalinization plan. And at the time all of that's going on, we're completing the first grinding line at the concentrator. So that's ready to run when the water is there. And then all of those employees just naturally go to grinding line 2 and another aspects of the project to complete it. So, we're excited about where we're at. The grinding line number 1 remains the critical path first for this. Orest Wowkodaw: And just to be clear, can you give us a percentage of completion on that? Red Conger: Yes, we're at 77% now. And all of that effort is around the sequence that it takes to complete all of those things. So they're complete at a time when you can actually make something. And it's not about bulk construction completion at this point. The thing that's most critical for us right now are the key milestones that we need to achieve and the order that we need to achieve them in. For instance, it doesn't do us any good to complete grinding line 1 before we have water to put in it. So, all of the work plans, work effort, intensity is around that proper sequence to get us to first copper as safely and rapidly as we can. Orest Wowkodaw: Okay. Thank you, Red. Operator: The next question is from Matthew Murphy from Barclays. Please go ahead. Matthew Murphy: Hi. It's probably too early, but I can't resist asking about capital on the QB expansion. Any kind of like ballpark bracketing of possibility you could give us? Don Lindsay: Well, it's like half of QB2, but without a lot of the infrastructure, the pipeline transmission lines, ports, stuff, so less than that. But then you got to roll the clock forward a number of years for whatever cost inflation happens over that time. I think it would be too early to give you an actual number. But to your question, ballpark order bank to, that's how I think about it. Matthew Murphy: So if I said something like $2 billion, that's like not ridiculous? Don Lindsay: Well, it's in that range, but you've got to think that when this gets started, we've had – like the $5.26 billion of QB2, that was in 2019, I think and so you got to roll the clock forward six, six years and whatever cost increases have happened in steel and all different things. So I'd take that in serious consideration. Matthew Murphy: Yeah. No, fair enough. That's helpful. And then I had another question just on tax pools. There was a note in the earnings of an expectation to be accruing for current Canadian corporate income taxes starting this quarter. So could you just remind us where the tax pools are and how much further you have to go on those? Don Lindsay: Jonathan, over to you. Jonathan Price: Yeah. So those tax pools are held in Canada, of course. We – as for the guidance we've given, expect to fully consume those pools early in this year. And therefore, we start to recruit Canadian income taxes. And that will convert, of course, into cash taxes in due course. Matthew Murphy: Okay. So that's like the pool amount? Jonathan Price: Yeah. And we do – we've held these pools for a long time, of course. But we have significant profits being generated right now in the business, in particular, of course, from the coal business here in British Columbia. And that will see the end of those tax pools essentially and us paying corporate income tax on those profits. Matthew Murphy: Yeah. Okay. Thank you. Jonathan Price: You’re welcome. Operator: The next question is from Carlos De Alba from Morgan Stanley. Please go ahead. Carlos De Alba: Yeah. Thank you. Good morning, everyone. So coming back to QB2, so given where we are and sort of the run rate that you mentioned down of 11% progression in the fourth quarter was really good, but some slowdown in the first quarter, is it fair to say then that your first production will really come most likely during the fourth quarter perhaps until the end of the year? And then the second question on QB2 was on CapEx. Could you give us a reminder of that 5% of additional contingency on the original CapEx of $5.62 billion? What is the FX that is embedded in that 5% additional contingency expanding? Is it still trading at 7.75 peso per dollar, or has it moved closer to spot? Don Lindsay: Okay. I'll take the first one and then turn it over to either Red or Jonathan or Alex for the second. But the present [ph] completion in Q4 was our best quarter. And I can tell you, January and February with Omicron is nowhere near that. It was pretty rough going at one stage. We had over 800 people isolated, the absenteeism has been really high. And so you can't sort of project that. And so we keep saying just second half because, we don't know if we'll get back to that Q4 rate, which would be great. And obviously, two quarters like that, you'd be in good shape, or it could carry on where it's been in the last six or seven weeks. And we've been through a few phases like this just as there have been phases of the coronavirus, the Alpha, Delta, Omicron and on. So we're trying to stay away from predicting too specifically. And we're just going to say, look, we're going to get this thing done in the second half, first crop is going to be produced. And then we're going to drive forward with a tremendous new asset that's going to be around for generation. So we're looking forward to it. Now on the exchange rate, Red or Jonathan? Red Conger: Yeah, Don. Red here, Carlos. The capital to go, the spend to go on this, we've used more current rates than we were seeing at the time, 8.25 to 8.50 exchange rate on capital to go, spend to go. It's mostly labor based in Chilean peso expense to go. Jonathan Price: Just to add to that, Red, if you look through our previous expenditure for QB2 and the guidance we've given, both for the underlying estimate, the contingency and now the COVID spend of $900 million to $1.1 billion, and you look at all of that in US dollar terms, it will give you a -- you can pretty accurately figure out what we're going to spend this year based on the guidance we've given and what would be carried over into 2023. So as Red says, you spot FX rates for what we're spending right now given that's predominantly labor costs that we're incurring. Carlos De Alba: All right. Thank you very much, everyone. Operator: Thank you. The next question is from Lawson Winder from Bank of America Securities. Please go ahead. Lawson Winder: Yeah. Thank you operator. Good morning, everyone, and thank you for the update. I'd like to ask about the Chilean Constitutional Convention and how that might factor into your decision to proceed with QBME. And do you expect to have the ability to obtain a stability agreement, or might it be even potentially grandfathered in with QB2? Don Lindsay: I'll make some preliminary comments. And then I'll turn it over to Amparo Cornejo, I believe she's on the call from Chile. So in terms of making a final sanction decision for QBME, we've got a fair bit of work to go there. We've got to finish the pre-feasibility this year. And there is some work on the final feasibility going on in parallel with that. But the time you get to sanction, we should have much better clarity on what's going on in Chile with the constitution, with the different tax and royalty proposals and that sort of thing. And then the Board can make a decision whether they're comfortable with the risk. We believe that the proposal we're making falls under the current taxability agreement, and within current permitting for some the infrastructure that's already there. So that's one of the reasons. There are two of the reasons why going with a 50% expansion like the one line, one SAG and two ball mills, just expansion of the current mill, the QBME, QB mill expansion makes sense because it's sort of the least regulatory challenging and or tax or whatever. Just a lot less risk or uncertainty and a lot faster. Like when I say faster, it's faster by somewhere between two and four years compared to doing a larger expansion. And if for some reason, Chile decides to impose taxes that are just too high and make us come to a conclusion that we don't want to commit what is clearly going to be $2 billion or north of as our previous question was showing, then we wouldn't do it, right? So it's in Chile's hands to put together a good investment environment. And it has done that for decades, frankly, Chile has been one of the best countries in the world to the mining copper. And I'm a big believer that, it will continue to be so. But we'll be able to wait and see what the final rules are, before we make any sanction decision. Amparo, if you're there, please feel free to comment on the latest developments and constitutional discussions. Amparo Cornejo: Okay. Thank you, Don. Good morning, everybody. Yes, I'm here. Sorry, I have had some issues with the connection. So hopefully, I can continue. And what Don explained is correct. There is no indication that the mining royalty deal that is currently under discussion will have any impact on our stability agreement that has been expected by all the parties. So international agreements and commitments will be respected. In relation to the constitutional convention process, which is, of course, very important for the future of Chile in order to establish a new social pack and ensure future stability, we believe that the process has not finished. It's too early to really comment. Up to this moment, they have only been approved by the convention. Two blocks of – parts of the constitution, all the discussion about environmental issues or others that could have an impact on the mining activity has not yet been voted. We expect that both of the convention will take place around mid-March. And it's important to remind everybody that those standards require two-thirds of approval. So at this moment, we don't really have enough information. There is not a draft of the constitution, where we can say that the outcomes are going to generate additional risk. Of course, we are following the process very closely. And there is a lot of national debate and a lot of information around the constitution. But it's important to mention that those standards related to the industry have not yet been voted. Lawson Winder: Thank you, both. That's extremely helpful perspective. And a follow-up, if I might, on HVC 2040. What's your latest view on the time line to approval? And just thinking to the evolution of the overall portfolio towards more copper, I mean, is it possible that HVC 2040 could become an expansion and throughput? Thanks. Don Lindsay: I'll turn that one over to Shehzad Bharmal. Shehzad Bharmal: Thank you. So HVC 2040, our plan is to submit our permitting documentation, the full after consultation with indigenous groups and other communities in the first quarter of next year and then with the 12-month permitting time line. And remember, that it is mostly an extension with a little bit of expansion as well. So there is more grinding capacity being installed. And our throughput should be higher by about 10% or so, 10% to 15%. So it's an extension, as well as a minor expansion. Lawson Winder: That’s all very helpful. Thank you so much. Fraser Phillips: Patrick. Operator, it's Frazer. I think we have time for one more question, please. Operator: Certainly. The last question will be from Lucas Pipes from B. Riley Securities. Please go ahead. Lucas Pipes: Thank you very much and good morning, everyone. I wanted to follow up on the portfolio management, obviously, Fort Hills here in this energy price environment is a nice hedge. And I wondered if you can update us on where you see that asset fitting in longer term. Thank you very much. Don Lindsay: Yes. So we've been very public about our position on that. It's been a long road to get to full production. But we said once we got to full production and it was really down in operating well, then the Board would look to see whether we felt we were getting paid for Fort Hills in Teck Resources share price. As you know, with all the ESG focus, there are many institutions that are interested in buying a company involved in oil sands. And the asset itself looks like it can generate tremendous EBITDA and cash flow, particularly at these prices. So if it's not valued within Teck Resources, then we may conclude that it should be held differently and allows shareholders to continue to participate if they so choose. And that could be any one of three general directions. And one would be sale to another partner. We are in partnership with Suncor and Total. One would be contributing into a mid-size company and taking back shares and distributing those shares to shareholders as part of the consolidation play. Or it could be just spun out directly as a yieldco and it would be a pretty healthy yield at a -- in these circumstances. So -- but we do need to get at least a quarter's financial results while it's running at full production. And so we're in that quarter now, although, it was pretty tough for the first couple of weeks. So the Board will be considering this in the not-too-distant future, but that's how we think about it. You're quite right. It is a good hedge on oil prices. That was one of the reasons why we went into it years ago. There are a bunch of other good reasons as well. First of all, we are in the mining part of the business, large open pit, shovel truck operations. And we have thousands of people within an hour's drive of the Alberta border who do just that and do it very, very well. Second, the province of Alberta is pretty good geopolitical jurisdiction to invest in. If you sit in my chair and you look at the choices you have around the world, and Alberta looks pretty good. Third, it was very tax efficient. The capital that we invested provided a shelter against the cash flows from Highland Valley and the coal operations in Trail and so on. The technology risk was minimal. We do have the advantage of some new technology. The paraffinic froth treatment process has improved. It means it's a much lower carbon footprint. And the original oil sands has been one-third of original operations. So that was good. Oil itself is something you could hedge a long way out. You could hedge as far out as 15 years, if you wanted to, whereas copper and zinc are certainly not core you can’t do that. So there are a whole bunch of -- and there's not particularly a lot of geological risk. The resource has been drilled over there. So there's a whole bunch of really good reasons to have it in the portfolio back then, but the world has changed. And so to the extent that our investability is affected by having that within Teck Resources, then the Board is going to look at how to deal with that. But first, let's get through this quarter and get some financial results. Lucas Pipes: That's very helpful. Thank you for that. And then a quick second question on Slide 28. You're looking at a reduction of CapEx of $2 billion in 2023. So it looks like an increase of $200 million to $500 million. Any particular driver on that? Is that sustaining capital of QB2 that gets rolled in inflationary pressures? Any perspective you can share on that? Thank you very much. Don Lindsay: Jonathan, over to you. Jonathan Price: Yes. Thanks for the question. As I mentioned previously, there will be some carryover of QB2 capital into 2023. And as I mentioned, you can sort of figure that out by looking at our guidance in aggregate for a total spend there versus what we've spent on our guidance for 2022. So you'll see there’s sort of a stud year 2023. Things like sustaining capital will start to come down. Capitalized stripping will come down to be more consistent with prior years. And therefore, when we wrap up QB2, all else being equal, then we would see a further reduction again into 2024. But they're some of the key drivers in that capital number. Lucas Pipes: Terrific. Very helpful. Thank you very much and best of luck. Don Lindsay: Thank you. Operator: I would like to turn the meeting back over to Mr. Lindsay. Don Lindsay: Okay. Well, thank you very much, everybody, for attending today. In closing, I want to say how excited we are about 2022 in this transformational year in QB2 and starting down that copper growth trail and rebalancing the portfolio. I just want to bring people's attention to Page 33 in our quarterly release because there you’ll find a chart on the sensitivities to the various commodities and, in particular, to the exchange rate. I know we've got some tough dues happening in the Ukraine. And we hope that things can be resolved for benefit of all the people, peacefully in some. In the meantime, the world is quite concerned on risk off. And the Canadian dollar has moved to full penny today, and the sensitivity shows that for every $0.01 to Canadian dollar declines, that increases our EBITDA by $143 million. And then just a little further down the chart on steelmaking coal, as I noted, steelmaking coal is around $459, up $18. For every dollar it increases, that's another $28 million in EBITDA to Teck. So I think these are important. And even just below that, you see WTI and WCS sensitivities as well. So while it's a tough day in the markets, for sure, in terms of the things that drive our financial results, it's actually very, very positive. And with that, thank you very much. We look forward to speaking to you in April. Bye now. Operator: Please disconnect your lines at this time, and thank you for your participation.

Operator: Ladies and gentlemen thank you for standing by. Welcome to Teck’s Third Quarter 2021 Earnings Release Conference Call. At this time all participants are in listen-only mode. [Operator Instructions] This conference call is being recorded on Wednesday, October 27, 2021. I would now like to turn the conference call over to Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analysis. Please go ahead. Fraser Phillips: Thanks very much, Lourie. Good morning, everyone and thank you for joining us for Teck’s third quarter 2021 results conference call. Before we begin, I would like to draw your attention to Slide 2. This call contains forward-looking statements regarding our business. This slide describes the assumptions underlying those statements. Various risks and uncertainties may cause actual results to vary. Teck does not assume the obligation to update any forward-looking statements. I’d also like to point out that we use various non-GAAP measures in the presentation. You can find explanations and reconciliations regarding these measures in the appendix. With that, I will turn the call over to Don Lindsay, our President and CEO. Don Lindsay: Thanks very much Fraser and good morning, everyone. I will begin with third quarter highlights on Slide 3 followed by Jonathan Price our CFO, who will provide additional color on our financial results. Then we’ll conclude today’s session with a Q&A, Jonathan and additional members of our senior management team will join me in answering your questions. So, I’m pleased to report that our solid operational performance combined with an extremely favorable commodity price environment in third quarter, resulted in a record adjusted EBITDA and record adjusted profit. Third quarter adjusted EBITDA of $2.1 billion is more than triple the same period last year. And note that September alone contributed to approximately half of the total as strong realized pricing continued across all of our principle products, particularly steelmaking coal, but also copper, zinc and energy. And if you look at the pricing we’ve experienced in October, it’s higher than it was in September, right across the board. So, if you have pretty good indication how we did in the month of October. Despite the continued impact of COVID-19, as well as the impact of forest fires in British Columbia in July, Q3 production was in line with plan across our business units and our annual production guidance remains unchanged. However, as we previously mentioned, we are seeing inflationary cost pressures, notably in the price of diesel supplies and labor costs and not unlike our peers these cost increases impacted third quarter operating results across our businesses and we are expecting upward pressure on our cash unit costs through the balance of the year and into 2022. Despite this, we have not changed our full year cash unit cost guidance, as we anticipate higher utilization and efficiency gains to partially offset some of the current pressures. Looking ahead, we are well positioned to capture the significant cash flow generation opportunities are rising from current steelmaking coal prices in Q4 and into 2022. During the third quarter, we continue to advance our priority projects, overall progress on our flagship QB2 copper growth project has surpassed the two thirds mark as our team continues to aggressively manage the conditions resulting from COVID-19. Vaccination rates amongst the project workforce are high and more recently we have been able to ramp up staffing levels with a focus on delivering on the projects key milestones. We continue to expect first production at QB2 and the second half of next year. And QB2 is expected to double our consolidated corporate production by 2023. We are though experiencing some upward cost pressures and we expect to issue updated capital cost guidance on the project in February with our Q4 results. And I’ll come back to this in a moment. To see more of the latest progress on QB2, I encourage you to watch a video of the project and view our latest quarterly photo gallery, which is in the investor section of our website. And as a reminder, we are hosting a virtual site visit of QB2 on November 1. So, please mark the date in your calendar and we hope you will join us. Our Neptune facility continue to ramp up during the third quarter successfully demonstrating the ability to perform at design capacity, and just a couple of the days ago, it actually loaded 91,000 tons a new all time record. But don’t get out your calculators, you can’t annualize that number, but suffice you to say is it’s going very well. The facility is expected to achieve a run rate at its design capacity of 18.5 million tons or higher in the fourth quarter. Our steelmaking coal supply chain transformation is contributing significantly improved optionality and reliability. And with record high prices for steelmaking coal, it is an excellent time to be in charge of your own destiny. Last week, we announced the conversion of our US$4 billion committed credit facility into a sustainability linked credit facility to support our sustainability goals. And to that end, we are also very proud to see our efforts recognized with an upgrade in our ESG rating from MSCI to AA from A, which put its Teck in the top decile of our sector and the head of most of our diversified competitors. We were also named to the Forbes World’s Best Employers list for the second year in a row and heading into the fourth quarter, we are focused on continuing to optimize sales and production to capitalize on high commodity prices and advancing our priority QB2 copper project. Turning to an overview of our third quarter 2021 financial results in Slide 4. Our revenues improved significantly from a year ago, driven by increases in the prices of all of our principle products, particularly steelmaking coal. Adjusted EBITDA as I mentioned earlier, more than tripled from the same period last year. Profit attributable to shareholders was $816 million or $1.53 per share, and adjusted profit attributable shareholders was a $1 billion or a $1.91 per share, which is more than seven times higher than the same period last year. Slide 5 provides a snapshot of third quarter performance across our business units compared to last year, notwithstanding the effects of wildfires on our operations in B.C. and some minor unplanned maintenance at Red Dog, solid operational performance and high realized prices drove meaningful gross profit increases across the board in each of our business units. And Jonathan will review our financial results in more detail in just a few minutes. Turning to copper on Slide 6. EBITDA for our copper business unit increased by 95% compared to the same period last year, driven primarily by the 43% increase in our realized price of US$4.28 per pound. Production was in line with plan despite the temporary suspension of our Highland Valley operations in mid-August due to wildfires. Net cash unit costs reflect higher cash margins for by-products due to substantially higher zinc prices. We have maintained our annual production operating cost guidance and copper, despite upward pressure on cash unit costs primarily due to higher consumable costs, a stronger Canadian dollar and profit-based payments at Antamina. Moving on to Slide 7. As I mentioned earlier, we continue to advance construction at QB2 with overall progress now past the two thirds mark. We have maintained our extensive COVID-19 protocols in order to protect the health and safety of our workers and our communities. Working closely with the Chilean government, we successfully rolled out a vaccination campaign. The proportion of workers who have been fully vaccinated now exceeds 88% and in fact, 93% of workers have been administered at least one dose of the vaccine. So that’s good. Pre-screening and onsite testing have been key to our success in managing case rates at site while effectively advancing construction, but it’s not over. As COVID-19 cases in Chile declined in the third quarter, we have continued to ramp up towards peak workforce levels to maximize camp occupancy, where we are now able to house three employees to a room. Chile has cited our efforts as a model for managing workplace health and safety during these unprecedented times. And Bechtel indicates that QB2 is one of their best performing projects worldwide for managing the spread of the virus. Now, we are reviewing our capital cost guidance and an updated cost estimate will be provided with our Q4 2021 results in February. We are now though seeing some COVID-19 related pressures on contingency and on our capital estimate of US$5.26 billion that we published on April 1, 2020. We are continuing to review and manage these costs and expected an increase to our capital estimate of up to 5% could be required for additional contingency. COVID-19 related capital costs are also seeing ongoing cost pressures as a result of continued absenteeism and labor inefficiencies. We are managing these costs and to put in place a variety of mitigation measures to counter the many adverse effects associated with construction in this environment, many of which are aimed at attractive talent, employee retention and minimizing absenteeism. The final extent of COVID-19 related impacts on the project schedule and budget will depend on our ability to establish and maintain adequate workforce levels and productivity. Looking ahead, we remain focused on delivering two key project milestones and positioning for successful startup. We continue to expect first production in the second half of 2022. The critical path is the grinding circuit, which remains on track. And in addition, our teams remain focused on the important port to pond infrastructure, which will provide water for the concentrator. The photo on the right shows, the truck shot, which is one of the really components being commissioned along with the mine electrical loop to support pre-stripping activities. Other systems such as the power substations are also nearing completion to support overall commissioning activities. Our operations and commissioning teams are working in close collaboration with our construction and corporate groups to ensure a successful startup and to drive value through linking people, process and workplace design. Our priority is to ensure a seamless transition to operations with our leadership team already in place as we wrap up the operations workforce. Slide 8 shows our progress in the port onshore area, including the concentrate storage building, the filter plant and water pump station in the background and the desalination plant in the foreground. Slide 9 provides an overall view of the steelwork for the grinding building in the background and the pebble crusher in the foreground. And the grinding lines currently remain the critical or longest path for the project and we continue to make significant progress here. Slide 10 shows the upstream side of the starter dam at the tailings management facility, where we have raised the dam elevation significantly in the quarter. And we continue to utilize the Teck mine fleet and some of our new fleet of CAT 794s and they are performing very well. We continue to be pleased with the progress we’re making and our excited about building on our construction success of today with a focus on delivery to the project’s key milestones. We look forward to sharing more of our progress with you at our QB2 virtual site tour on November 1. Next, we’ve summarized our zinc business unit results for the third quarter on Slide 11. And as a reminder, Antamina zinc related financial results are reported in our copper business unit. EBITDA generated from our zinc business increased by 24% compared to last year, primarily due to higher prices, partly offset by higher royalty costs related to increased Red Dog profitability. A Red Dog zinc in concentrate sales of 162,000 tons was above our guidance range, despite a late start to the shipping season due to weather and ice conditions and a record weather related shipping delays in July and August. Lower Red Dog zinc in concentrate production was primarily due to lower mill throughput and recoveries as a result of some unplanned maintenance, which is now behind us. As previously announced refined zinc production at our Trail operations reflects a temporary four-day shutdown of the oxygen plant due to wildfires in August. And looking forward, we expect to ship all zinc concentrates from Red Dog during the current shipping season, assuming normal weather conditions for the next few days. However, as a result of the late start to the season is various weather related delays a portion of our fourth quarter sales has been deferred to the first quarter. So it’s just a timing issue. We expect Q4 sales of zinc and concentrate to be in the range of 140,000 tons to 155,000 tons. And our annual guidance for the zinc business unit remains unchanged. Turning to our steelmaking coal business on Slide 12. Our steelmaking coal business unit had a strong third quarter, reflecting prices that are at unprecedented level and a 16% increase in sales volumes relative to Q3 last year. Sales were 5.9 million tons in line with guidance, including approximately 1.9 million tons of sales to customers in China that are priced at premium CFR China prices, which increased to US$402 per ton from US$257 in the second quarter. And we exited the third quarter at a record high of US$602 per ton and as I said earlier, today’s prices are doing even higher. The remainder, roughly 70% of our sales was sold based on the FOB Australia price, which averaged US$263 per ton, compared with US$137 in the second quarter. And we hit a record price about US$400 per ton in late September. Given strong commodity prices, we maximize the utilization of available processing capacity to meet additional sales opportunities into China. While, also completing a substantial proportion of our maintenance out just for the year during the quarter, so that sets up really well for Q4. Adjusted site cash cost of sales was C$63 per ton, which was within our guidance range as anticipated. And it was C$4 per ton lower than a year ago. Our transportation cost of C$46 per ton reflect higher vessel to emerge, rail and port charges that were incurred as a result of the July rail service disruption caused by wildfires. By putting contracts in place to be able to shift through all three west coast ports. We had the flexibility to ops to divert some trains and vessels to Ridley Terminals during the disruption. And while this increased our transportation costs somewhat, it enabled market access for our steelmaking coal, during this period of record high prices. So incurring these extra transportation costs to continue shipping was clearly the right thing to do for the business, because it was very minor amount compared to the margins per ton, that we were making. Looking forward, our fourth quarter steelmaking coal sales are expected to be 6.4 million tons to 6.8 million tons. We will continue to prioritize available spot sales volumes to China, which is expected to result in favorable price realizations. And we continue to target 7.5 million tons of sales to China in 2021 unchanged from our previous guidance. We anticipate our 2021 production to come in at the lower end of our guidance range of 25 million tons to 26 million tons, as the wildfire impacts are not expected to be fully recoverable by year end. As a result of inflationary pressures, including higher diesel costs reliance on overtime to offset increased absenteeism due to COVID-19, as well as ongoing global supply chain constraints and disruptions. We expect to be at or slightly above the upper end of our full year adjusted site cash costs of sales guidance range in the quarter. Further due to inflationary pressures, wildfire disruptions in the third quarter and increased ocean freight rates, vessel demurrage and rail surcharges, we expect to be at the high end or slightly above our full year transportation cost guidance ranges. I should note that at this point, we have priced nearly two thirds of our fourth quarter sales based on FOB and CFR China prices that have averaged US$370 FOB and US$561 per ton since September 1, just to repeat those numbers since September 1, the Ausi FOB price has averaged US$370 per ton. And the China CFR price has averaged US$561 per ton. And you’ll note, those are substantially above what we averaged in the month of September. Our upgraded Neptune facility, which is a crucial component of our steelmaking coal supply chain transformation is now ramped up. Our equipment is performing according to or exceeding plan. As a result, we are starting to see the benefit of meaningfully lower port costs with a higher percentage sales volumes loaded at net Neptune. And while throughput was impacted by the B.C. wildfires in July, Neptune demonstrated its ability to perform its design capacity, during the second half of September as planned. In the fourth quarter, Neptune is expected to achieve a run rate at design capacity of 18.5 million tons or higher. Overall our efforts to transform our steelmaking coal supply chain has and will continue to play an instrumental role in maximizing our operational reliability and market access optionality to capture strong commodity pricing. Turning to our energy business unit results for the third quarter on Slide 14. Our results improved from Q3 2020, primarily due to an increase in Western Canadian Select prices. However, this is partially offset by higher unit operating costs. Production at Fort Hills increased by 20% compared to the same quarter last year, which was impacted by extremely wet weather conditions. We have been working closely with Suncor, the operator to address the operational issues reported last quarter, particularly in dealing with the mining challenges, where we have extensive experience, and we are seeing signs of improvements in mine productivity now, and Fort Hills is now expected to transition to a two-train operation and operate at full production rates by year end. So our full year guidance for 2021 is unchanged. And with that, I’ll pass it over to Jonathan for some comments on our financial results. Jonathan Price: Thanks, Don. I’ll start by addressing our third quarter earnings adjustments on Slide 15 to reconcile our profit and adjusted profit attributable to share holders. The most significant adjustment in the quarter is $97 million in QB2 variable consideration owing to IMSA a former owner. This is a derivative financial liability that arose from our 2018 acquisition of an additional 13.5% interest in QBSA through the private Chilean company. This liability is carried at fair value and any change in fair value is recognized on our income statement. The purchase price included additional amounts that may become payable in the event that average copper prices exceed US$3.15 per pound in each of the first three years, following commercial production up to a cumulative maximum of US$100 million, if commencement of commercial production occurs prior to January 21, 2024. A nominal value was attributed to the additional payments at the time of acquisition. As of September 30, 2021, the fair value of this financial liability increased by C$97 million reflecting the discounted value of the maximum consideration. The second largest adjustment in the quarter is $49 million in environmental costs on an after tax basis. This primarily relates to a decrease in the rates used to discount our decommissioning and restoration provisions for closed operations. Share based compensation expense was $28 million in the quarter and commodity derivatives were $10 million. After these and other minor adjustments bottom-line adjusted profit attributable to shareholders was $1 billion in the quarter or $1.88 per share on an adjusted diluted basis. Excluded from our earnings adjustments, our results include gains and losses due to changes in market prices in respective pricing adjustments, which resulted in $73 million of after tax gains in the third quarter or $0.14 per share. Notably the large increase in steelmaking coal prices from Q2 to Q3 resulted in pricing adjustments of approximately $162 million in the third quarter or $103 million on an after tax basis. Now, the changes to our cash position during the third quarter are illustrated on Slide 16. We generated strong cash flow from operations of $1.5 billion in the quarter, an increase of more than $1.1 billion compared to the same period last year, reflecting substantially higher commodity prices most significantly in steelmaking coal. We invested $1 billion on sustaining and growth capital, including $676 million on the QB2 project, $48 million on the Neptune facility upgrade and $247 million in sustaining capital. Capitalized stripping was $172 million, primarily related to the advancement of pits for future production at our steelmaking coal operations. This was higher than a year ago, primarily due to decreased stripping activities in Q3 2020 as a result of COVID-19 restrictions. Debt proceeds on our US$2.5 billion project financing facility for QB2 were $224 million in the quarter. We also repaid a net $360 million on our revolving credit facility. In addition, we paid $120 million in interest and finance charges and $27 million with respect to our regular quarterly based dividend of $0.05 per share. Including these another minor items, we ended the quarter with cash and short-term investments of $390 million. Now turning to Slide 17. We are very pleased to maintain our strong financial position with current liquidity of C$5.4 billion, including cash and the amounts available on our committed revolving credit facilities. We ended Q3 with US$218 million drawn on our US$4 billion committed credit facility and with strong commodity prices we have since reduced this balance to zero. As Don noted at the beginning, last week we converted our US$4 billion committed credit facility into a sustainability linked facility in support of Teck sustainability strategy goals and extended its maturity to October 2026. It is currently undrawn. The sustainability linked facility involves pricing adjustments that are aligned with our sustainability performance over the term of the facility measured by greenhouse gas intensity, percentage of women in Teck’s workforce and safety. This further underlines the integration of sustainability performance into everything we do now including financing. At the same time, we canceled our US$1 billion credit facility maturing in June, 2022. As a reminder, this site car facility was established in June, 2020 in the initial months of COVID-19. Market conditions and commodity prices have improved significantly since then and consistent with our confidence in the outlook. It is no longer needed. As of September 30, we have drawn $2 billion from our $2.5 billion limited recourse project financing facility for the QB2 project of which $178 million was drawn in the third quarter. We have no significant note maturities prior to 2030 and we have investment grade credit ratings from all four credit rating agencies. And then, finally a brief reminder on our capital allocation framework on Slide 18. In the event, our cash flow from operations exceeds our sustaining and committed growth capital, our base dividend payments and any cash required to maintain our capital structure. We generate what we refer to as available cash flow. The first 30%, if any available cash flow is returned to shareholders and the balance of 70% can also be returned to shareholders or otherwise used for investment in growth or debt reduction for a combination of these. The board considers supplemental shareholder distributions each February when the full results of the year are known. And with that, I will pass it back to Don for closing comments. Don Lindsay: Thanks Jonathan. So in summary, this is a very exciting time for our industry and for Teck in particular. There are opportunities ahead as global growth and a transition to a lower carbon economy drive new copper metal demand. And in the near term, given the current commodity outlook, we have the ability to generate significant EBITDA and free cash flow. Looking ahead, we have an industry leading copper growth profile and a very attractive copper pipeline. We’re strengthening how we operate both through cutting edge innovation to improve productivity as well as our leading ESG performance. And we have a leadership team with the right mix of skills and experience to deliver on our strategy. So with that, we would be happy to answer your questions and like many of you, most of us are on phone lines from home. So please bear with us if there’s delay while we sort out who will answer your question. Thank you and operator over to you for the questions. Operator: Thank you. [Operator Instructions] And the first question is from Orest Wowkodaw from Scotiabank. Please go ahead. Orest Wowkodaw: Hi, good morning. In your release, you disclosed that, there’s several challenges related to the port entailing facility at QB2. Can you please give us more detail on what the issues are and whether you see any potential impact to the schedule from these issues? Or is it strictly a CapEx issue and can you catch up here? Don Lindsay: Okay. Well first congratulations Orest. You do it again. First up, so I’ll turn this question over to Red Conger. Red, you might be on mute. Operator: Actually, I do apologize. His line has disconnected. Don Lindsay: Okay. So, what we’re going to do is, is track Red down because I’d like you to hear it straight from the man in-charge. And we’ll come back to your question, and operator, if we could go then to the next question, while I think Fraser’s team will track down Red. Operator: Perfect. And Mr. Wowkodaw, you’ll have to re-queue up once I clear you from the queue right now, please. So the next question is from Greg Barnes from TD Securities. Please go ahead. Greg Barnes: Thank you. Don, can you give us some color around the inflation pressures you are seeing into 2022 other companies or the mining companies saying it’s in the range of outputs 5% to 7%? Don Lindsay: Yes. So two or three comments and I’ll turn it over to Jonathan, and can even have Robin or Shehzad from the directly from the operations, give you some more insight. So, first of all, it’s not what we would call structural inflation. It’s more broad based inflation from different input items, such as the diesel and supplies, things related to supply chain problems that we all hear about it. And it’s in terms of order of magnitude. It’s not in the range that, you’ll be aware of some of our major competitors in coal for example, calling for 20% increases. This is something that in total takes us, perhaps $2 to $3 of ton in coal, higher than where we were. So the percentage would be in the 5% or less right now. We don’t know how it’s going to evolve. Obviously there is some supply disruptions in the global economy all over the place. And so we want to make sure that we flag that and I think you all anyway, but that, yes, we’re getting hit with it too, but it’s probably more moderate than some of our major competitors. How about Jonathan, any additional insight from you and then let’s give Robin and Shehzad chance to give more color. Jonathan? Jonathan Price: Yes, thanks Don. I think if we look at some of the underlying indices here and particularly the changes from 2020 flowing into 2021, you look at crude up by 64%, gas up 39%, steel up 55%. This flows through all range of categories of spend, including diesel explosives, grinding media, mobile equipment, plant, tires, chemicals, et cetera, et cetera. There’s also of course some pressure coming through a whole range of other small consumables right across the business. And one of the things that’s impacting cost there, is supply chains, the cost of transportation and the way and which, these cost pressures are flowing through into the economy. So the sort of range, that Don just quoted is consistent with what we’re seeing in the business right now. We do expect, that pressure as, we’ve signaled in the release to be maintained into 2022. But we don’t see these as, necessarily structural changes to the underlying cost of the business. They are driven by movements in these indices and therefore to a certain extent, some of this pressure will be transitory. And as Don said, I don’t know if Robin or Shehzad want to provide any particular business context? Don Lindsay: Maybe it’s Robin. Yes, go ahead Robin. Robin Sheremeta: I just, I was going to add that there’s no question that some of the costs or inflationary, but I think one of the things to recognize is, we’ve had considerable success with some of our RACE21 initiatives. They’ve reduced costs in many cases and increased their productivity, particularly in the process plants and in the mines. So, we’re actually seeing some offset to that pressure as well. So, you’ve got to kind of look at both sides of that equation. Don Lindsay: Shehzad? Shehzad Bharmal: The majority of it that translates really is the energy complex with gas and crude and steel. And of course, we enjoy some of the margins from that as well in terms of the amount of margin that has gone up in for all of our products as well. And as Robin said in copper, Don mentioned earlier in spite of the pressures, we have been able to maintain our guidance both in copper and zinc to be within our previous guidance as we work through efficiency gains and find new ways to reduce consumption, when pricing is so high, and we’ve been fairly successful in that. Greg Barnes: Yes. Great. Thank you. Sorry, go ahead. Don Lindsay: It gives you some color and I mentioned at the beginning that it isn’t structural, but what is structural is that we’re gaining the benefits from the investments we made in the LQ [ph] expansion to 9 million tons and the Neptune port we’re just going to the quarter, we’ll see lower port costs, so actually cash cost in Canadian dollars, were $4 lower this quarter than a year ago. So on balance, so getting some control from those investments and the RACE21 experience while at the same time flagging that all these different inputs worldwide, are showing some increases. So maybe your follow-on question, and then I do want to highlight, I’ve got Red Conger back. So, I want to get back to Orest question as well. So Greg you first. Greg Barnes: Okay. Yes, just as you touched on, it was given you’ve got some experience now with Neptune operating at close to full capacity. What kind of tonnage loading rates are you seeing on a per ton cost basis? Don Lindsay: Sorry, cost basis? We haven’t reported cost for like a full quarter running full capacity. That would be this quarter coming like before right now. Greg Barnes: But obviously they’re going in the right direction, not 11, 12, all of ton like they’re paying less [ph]. Don Lindsay: Yes, but you’ll be familiar with this Greg, but what’s even more important as you know thermal coal prices are very high and you’ll remember what happened the last time, thermal coal prices. If we did not have – haven’t done that, we would’ve been at the mercy of the other provider where they shortchanges to a million tons last time at margins of $200 a ton. If that happened again to us this time, the margins are $400 a ton. So just by having it, the avoiding that potential cost is huge. So that’s why I said the optionality to have that optionality was strategically so important. And I’ll also say that, by dividing the business between CP and CN and keeping them both very competitive that has worked really well, both from a cost point of view and service point of view that we’re getting the coal delivered to the port very well. So, we’re looking forward to, the next year or two and getting the benefit from that. And we’re very, very pleased with Neptune. Greg Barnes: Okay. Thanks all. Don Lindsay: Red, I could call on you to answer Orest question which I believe you now have, which is about the port? Red Conger: Yes, thanks Don. Good morning Orest, apologies to everybody from my phone dropping off. So, we’ve had several things that we’re dealing with in the third quarter starting at the port. The sea for conditions are actually softer now where we’re driving the pilings into extend the jetty out into the sea. And initially you’d think, well, that’s great. It’s going to go faster. But to meet the structural criteria that the facilities been designed to, we’re actually having to drive those piles now deeper down into the sea for to achieve that structural integrity. So that requires us, we’ve already ordered the pilings they’re at a designed length. So, now we pound them down and then well done an extension onto them to drive them, farther down into the ocean floor to achieve the structural integrity. So, we burned additional effort hours in the third quarter doing that. We have the material on hand now to proceed in that matter, if it continues this way. And when we think about first copper, the critical path that we’ve talked about, we really have a relatively short distance to connect is, and we’re going to show more of this in detail, on Mondays virtual tour. But we put a temporary island out in the sea and we’re actually driving pilings back toward the shore, as well as driving pilings from the shore out. So, that’s the critical path to get the water from the ocean up into the desalinization plant. And so, that continues to remain on track. As you indicated in your question, it’s going to be more expensive to build that as long as this condition endures, but as far as the schedule goes, we’re going to be able to accommodate that within the schedule. Likewise, up at the tailing management facility, we had a pump station where we had just completed the earthworks to just start doing the foundation work. We discovered some geotechnical instabilities and the wall that was remaining there. And we have redesigned and relocated that pump station. So, now that work is ongoing and we can accommodate that within the critical past startup schedule that we’ve been tracking to for next year. So those are two of the biggest items that are contributing to that upward cost pressure right now and some idea of how we’re dealing with those. Greg Barnes: Thank you. Operator: Thank you. The next question is from Curt Woodworth from Crédit Suisse. Please go ahead. Your line is now open. Curt Woodworth: Yes. Thanks. Good morning, Don and team. First question is for Réal in past cycles where we’ve seen, very extreme escalation and met coal oftentimes there was not significant liquidity at that price. And I know Teck didn’t always capture the full spot realization. So, can you just comment on your ability to capture the $600 China CFR price and what the net back would be for you today? Given ocean freight? Réal Foley: Yes. So thanks for the question, Curt. Yes, we are capturing those higher prices as they are occurring. We’ve got number of pricing mechanisms actually and we’ve made some sales at pricing, fixed pricing above $600. And we’ve also got some sales that are index linked and reflect the average of the index in the month of shipment. So yes, we are capturing those prices. On the FOB side, we have a combination of sales that are either price on the quarterly, on the average of the quarterly indexes lagged by a month. And those indexes, the average is now tracking at about US$370 as Don was saying. And we’re halfway through the quarter. If we go back to China, your question as to what is the FOB equivalent today? So freight has increased I mean, this is one place where we are seeing inflationary pressures, freight rates to China are currently around $33 to $35. So, we’re getting roughly between US$577 to US$580, if you compare to the spot price today, which is sitting at US$630 per ton. Curt Woodworth: Great. Thank you. And then just on QB2, can you frame some of the buckets, I guess, around the 5% increase in the contingency and would you feel that beyond the 5% increase, it’s fairly derisk at this point? And then can you confirm? I think my understanding is that Bechtel was taking most of the raw material price risk with respect to steel and whatnot and Teck was more kind of on the blocking and tackling operationally labor. Thank you. Don Lindsay: Red, back to you. Red Conger: Yes, Curt. So, let me talk about the material risk first. We continue to procure all the material for this project throughout the pandemic. So even though, we idled construction during the early onset of the pandemic, we continued to procure materials. So all the material that we require for to complete this project is actually procured. And most of it is onsite at this point. So that’s a huge advantage for us given what’s going on globally today. This issue, that I just mentioned of requiring additional piling material. And in order to relocate this pump station that I just talked about, we need some additional pipe runs and cable runs. Those materials have been procured, secured and are on the way to site. So, we have little or no risk associated with the things that are going on with global supply chain right now, as far as construction is concerned. And the buckets that I would put the additional contingency in that were of signaling to you today with upward pressure on the capital cost of the project itself are primarily related to geotechnical issues. The C4 condition, requiring additional pilings, so you can imagine the, if we have to pound those deeper, it just requires more, more effort hours, more construction hours per unit of progress than we had engineered and forecast. So it’s a pretty straightforward calculation. And we’re already have, we have a fit in hand and are underway proceeding with that modification. And then likewise, this pump station up at the dealing management facility, same set of circumstances. We’ve re-engineered that the constructions well underway. One of the advantages that we have having a operating mine site there, our mine team is doing a lot of that earth work. So, they were immediately available to respond to that. The one other bucket we’ve had is weather related where high sea conditions of support for safety reasons, we don’t put divers in the water. When we have high sea conditions, we had an inordinate amount of that exposure in the third quarter, and we also had some high wind conditions of the altitude that kept us from making some of the lifts that we needed to make in the afternoons that, that caused us some setbacks, but by those are the categories and what we would include in that additional contingency we’re talking about today. Curt Woodworth: Okay. Thanks very much. Operator: Thank you. The next question is from Abhi Agarwal from Deutsche Bank. Please go ahead. Your line is now open. Abhi Agarwal: Yes. Thanks operator. Good morning Don and Dean. And thanks a lot for taking my question. I have a couple of questions. So the first one is, is it fair to assume that you could look to target another 7.5 million tons of met coal into China depending on the premium between CFR and FOB persisting. And also, can you look to increase this as you plan for the next year? That’s my first question. Don Lindsay: Okay. I’ll turn that over to Réal. Réal Foley: All right. Thanks for the question, Abhi. Yes, we are still targeting at some changed around 7.5 million tons of sales to China for 2021. And as we’re looking at our book for 2022, our objective is the same to maximize sales into China. Keep in mind as we do that, that we have a number of long-term well established and stable customers that we’re continuing to deliver into as well and demand in that market is also very strong. So it took a long time to develop and build those relationships acquired those contracts. And we don’t know how long the import restrictions in China will last. So, we need to balance between our sales to long-term customers and also to China. Abhi Agarwal: Thanks. Réal. My next question is on Neptune. With these ramp up progressing in line with expectations to the guidance to get to below, I think the guidance was lower end of $36 to $39 per ton by 2022. Does that still stand, or do you think that given the inflationary pressures, it could hit into majority of those gains? Thank you. Don Lindsay: Go on Réal. Réal Foley: Yes. So, we haven’t provided guidance yet for 2022 Abhi. This is something that we will be doing when we report Q4 results in February. What we’re seeing for Q3 and actually in the market currently, the inflationary pressures that we’re seeing on diesel price and therefore rail fuel surcharge on ocean freight rates and also on vessel to emerge. Those are probably the main areas. The benefits in the savings that we’re achieving with the increase throughput through Neptune is helping to offset those inflationary pressures. So, you can just imagine that if we did not do Neptune, we would be impacted by the full on effect of those cost inflations. And keep in mind too, that for Q3 the impact from the wildfires with the tons that we were able to divert to Ridley Terminals also increased our cost, because Ridley is a much longer distance and therefore more expensive to get the call there. But as Don explained, it provides the benefits of getting the call to market reliably and more importantly, realizing the benefits of the current very high prices and the steelmaking coal market. Abhi Agarwal: Thanks, Réal. Operator: Thank you. The next question is from Lawson Winder from Bank of America Securities. Please go ahead. Your line is now open. Lawson Winder: Good morning and thank you for the update. I’d like to ask about the energy business if I might. Even the past suggested that business could potentially be divested, given a strong oil price environment and improving in operations. So certainly the first criteria, seems to be met. And it looks like there scope for the operations to turn around in the fairly near future. Could you maybe comments on whether or not now might be the right time to divest, and how would you assess the marketplace of potential buyers at this point? Thank you. Don Lindsay: Yes. No, I agree with the way you’ve phrased the question. We do see strong pricing, and if Fort Hills was running at full capacity today, it would be very profitable and the board would be able to make a decision. What we’ve said in the past, and it hasn’t changed is that once Fort Hills is at full production and then generating the kind of EBITDA we think it can. And particularly at these prices, then the board would assess whether we’re getting paid for it in Teck Resources shares and if not, then it would entertain a transaction to have it held differently, but still to have Teck shareholders benefit. So, what we mean by that is, possibly contributing it into a midcap and taking back shares, distributing those to Teck shareholders. We could do a direct Teck energy spin-out. We could sell to another party for shares in that company. And it looks like, the ramp up will occur this quarter. So, we’re very pleased with that, but it hasn’t happened yet. But if it does hit full production by January 1, then Q1 like next quarter would be the first full quarter where we could demonstrate financial results with it running at full production. So coming soon, yes, but not quite there yet will be a time when the Board can make a decision. Lawson Winder: And then if I might just follow-up on QB2, you’ve mentioned before and in the release today, mitigation measures with the aim of attracting new talent, and improving retention and minimizing absenteeism, and how should we think about the cost associated with those programs vis-à-vis the offsetting costs of potentially less overtime. I mean, if you’re successful with those measures, would the really the risk of that $600 million going much higher or would that actually help keep the $600 million of COVID-related costs under control? Thanks. That’s it for me? Don Lindsay: Excellent question. And back to Red. Red Conger: Yes. And the way to think about it is, we’re – in many ways we’re moving heaven and earth to minimize the impacts of COVID-19. So if the right thing to do now is to not be so cautious about staying away from the job that not when you’re sick, but we need everybody to come to work and we incent them to do that, those people are getting paid when they’re off. We need them getting paid when they’re on the job. So it’s going to minimize the upward pressure on these COVID-related capital costs, same thing with attracting talent and retention. So those, anytime someone leaves and goes somewhere else, or we have a spot unfilled that that’s just more pressure for us on what it’s going to cost to get all this done. So this is the time now to be aggressive with getting, as many people outside as we can. We have material. We have work fronts. We’ve got a very solid work plan to get all of this done, and we need to get as many people on site and not laying off of who work to get this thing built. Lawson Winder: Yes. Thank you. Operator: Thank you. The next question is from Jackie Przybylowski from BMO Capital Markets. Please go ahead. Jackie Przybylowski: Thanks very much. I don’t normally ask the bond question, but I just wanted to ask you about the sustainability bonds that you reported the other day. And if you could give us a sense on roughly what the cost of borrowing on those bonds would be, if there’s any kind of range and maybe a little bit of color on what changes in terms of text behavior, if anything to take advantage of more favorable terms with the sustainability aspect of those bonds? Don Lindsay: Okay, Jonathan, over to you unless we have Justine on the line. I’m not sure we do. Jonathan Price: I’ll pick it up, Don, if you like. Jackie, just to be clear, they weren’t bonds. It was our committed, revolving credit facility. The pricing on that at LIBOR plus 150 basis points is exactly the same as the prior facilities that we had. However, in this instance, what we have is, essentially discounts or penalties based on the performance of the underlying sustainability metrics that we have. As I sort of said previously, the intent here is to ensure that we embed sustainability in everything we do in the organization, now including our financing. We’re already heavily motivated to meet the commitments and the targets that we’ve made in the market. And this is just a further confirmation of that and shows our willingness to connect that to the pricing of our borrowing where, of course, if we fail to meet those targets, there would be a penalty, albeit not material in terms of cost of the organization. But I don’t think to directly answer your question, it changes our motivation, because we’re already very highly motivated, but it does create that direct connection between the cost of borrowing and off performance. Jackie Przybylowski: Thank you. That sounds great. And maybe another question for you, Jonathan, in the Capital Markets Day, you guys did recently, you talked about RACE21. And I thought in a really helpful way in terms of what that program is and the benefits that you’re seeing. I kind of got the sense from the Capital Markets Day presentation that that there may be additional phases. I don’t know if you’re going to change the name to RACE22 or something. Can you talk about that, is there additional objectives or goals for that program that you can kind of contemplate announcing sometimes soon? Or is this just maybe just more of an ongoing initiative at this point? Jonathan Price: Don, do you want me to talk to that? Happy to do so. Don Lindsay: Sure. Go ahead. Go ahead. Yes. Jonathan Price: Yes. I mean, Jackie really, it’s a continuum of activity that will continue to be embedded in Teck and through all of our operations. So whilst, we coined RACE21 to sort of bring together a series of targets and goals for a defined period of time, which we will report on in February 2022, when we give you our fourth quarter results. The work carries right on through that there are new initiatives being developed all the time inside the organization, looking for that next leg of performance and further embedment of the digital transformation, the cultural transformation, the empowerment of the workforce is centrally that comes with that. So it’s certainly not a case of we hit the end of this year and we stop. We very much keep going. But we will tell you in February, what’s been delivered up to the end of 2021. Jackie Przybylowski: Sorry. Are you going to maybe put new targets out for, excuse me, subsequent years or not so much published targets? Jonathan Price: I think the importance with any program or program of transformation, like this is really to see the benefit coming through the businesses, coming through our production, coming through our safety, coming through our unit operating costs rather than necessarily creating new targets for RACE. I think, you increasingly every time you’ll hear from Robin, you hear from Shehzad, they’re talking to the benefit that RACE is having for their operations and for their business. That’s a sign of success of a transformation program, because that’s where the that’s ultimately where the benefits would show up and, I think that’s probably how we can continue to communicate going forward. Jackie Przybylowski: Great. Thank you. Am I allowed to ask one last question? Don Lindsay: Go ahead. Jackie Przybylowski: Thank you. I just wanted to ask, we’ve heard from other companies that freight and shipping has been increasingly challenged, and I was wondering if you can comment on how that affects your CFR priced coal going into China, is the freight rates going up or are you having issues finding vessels? Don Lindsay: That one is for you Réal. Réal Foley: Yes. Thanks, Jackie. Yes, freight rates are going up. If you compare to what they were at the beginning of 2021. They would’ve been in the mid-to-high teams, maybe as high as US$20 per ton. They’re currently in the $33 to $35 range, so substantial increase. But at the same time, the coal price has increased so much more that the margins are highly beneficial. In terms of vessel availability, we have not had issues finding vessel availability, and we actually have COA as well for part of our business, a contract, a fragment for part of our business that covers some of our sales too. So that helps to balance some of the increases. Jackie Przybylowski: Great, thank you very much Réal, and everybody thanks. Don Lindsay: And Jackie, just add some first to what Jonathan was talking about with RACE21 and to refresh what we said in the Capital Markets Day in case there’s those on the line that weren’t there. RACE21 has already completed more than a 100 projects, and we will report on those and the measurement of how much EBITDA sort of gained, what the value of that was. But they have identified another 450 initiatives divided into 40 different digital squads to go after those. So it truly is a transformation across the company into the digital world. And we’re very, very excited about it and look forward to giving you the report in February. Jackie Przybylowski: Thanks very much, Don. It was a great presentation of the Capital Markets Day. I really enjoyed that one. Fraser Phillips: Operator, Laurie it’s Fraser Phillips. I think we’ve reached end of time, Don, if you want to make a few closing comments? Don Lindsay: Okay. Well, thanks very much. Once again, that was the record quarter, but it will likely be exceeded like Q4 and if you translate what we showed you in September, and we’ve already completed in October and recognizing that we priced two thirds of the coal for the quarter already. And in fact for the benchmark, the 90-day calculation period, we’re almost two thirds of the way through that as well. So Q4 is shaping up to be pretty good. We hope to see you at the virtual site visit of our flagship QB2 copper growth project on November 1 from 1:00 PM to 2:00 PM Eastern time. And the live webcast link will be available on our website and further details are also available in the October press release. So once again, thank you for joining us and we very much look forward to talking to you in February. Thank you all. Operator: Thank you. The conference is now ended. Please disconnect your lines at this time. And we thank you for your participation.

Operator: Ladies and gentlemen, thank you for standing by. Welcome to Teck's Second Quarter 2021 Earnings Release Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. This conference call is being recorded on Tuesday, July 27, 2021. I would now like to turn the conference call over to Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analysis. Please, go ahead. Fraser Phillips: Thanks very much, Laurie. Good morning, everyone, and thanks for joining us for Teck's second quarter 2021 call. Before we begin, I would like to draw your attention to the caution regarding forward-looking statements that's on slide two. This presentation contains forward-looking statements regarding our business. This slide describes the assumptions underlying those statements. Various risks and uncertainties may cause actual results to vary. Teck does not assume the obligation to update any forward-looking statement. But I'd also like to point out that we use various non-GAAP measures in this presentation. You can find explanations and reconciliations regarding these measures in the appendix. With that, I will turn the call over to Don Lindsay, our President and CEO. Don Lindsay: Well, thank you, Fraser, and good morning, everyone. I will begin on slide three, with our second quarter highlights, followed by Jonathan Price, our CFO, who will provide additional color on our financial results and we'll then conclude with a Q&A session, where Jonathan and myself and several additional members of our senior team will be happy to answer any questions. So, solid performance at our operations and our priority projects against the backdrop of improving market conditions made for a very positive second quarter of 2021. At our QB2 project, we had our best quarterly progress to date and this is despite the largest COVID-19 case surge so far in Chile. Let me review a few numbers just to describe how it was. During the second quarter, the number of COVID-19 cases skyrocketed to a high of around 8,900 per day in Chile. Thankfully, recently the number of cases has declined, is now averaging about 1,500 per day. Critical care bed occupancy is still high though at 88%, but it is down from the peak of 99%. And in the Tarapaca region where QB2 is located, that number is 49%. And there is currently a daily average of 30 cases compared with a high of 251. Chile has done a very commendable job with their vaccination program. Of its total population of 19 million people, around 85% have had their first dose and 74% have had their second dose. And at QB2 itself, more than 60% of the project workforce is fully vaccinated, with over 80% of the workers having received at least one dose. Most recent wave of the pandemic has had a much larger impact on QB2 than the first wave. When construction restarted last year following the temporary suspension, we had nowhere near the challenges that we have had in these past three months. All of the restrictions, protocols and testing that have been so important in the prevention of the spread of COVID-19 are also a large burden that has put the QB2 team to the test, but our team has risen to that challenge. The substantial progress in the second quarter has been a hard one and is remarkable under these challenging conditions. Just a bit more color on what it's like for those of you who may be sitting in an investment center, perhaps in New York, where it's wide open. What we're dealing with now is when an individual has symptoms that are taken off their project and they're taking the hotels on the coast where we've secured them permanently for quarantine purposes. They are PCR tested. The results are returned in about four days. They are then contact traced and the contact individuals are also taking off the project and put in quarantine hotels. And they are PCR tested. If they test negative, they return to work, they test positive, they quarantine for 14 days. At the peak, in Q2, we had 350 individuals in quarantine. And monthly averages were very high. So you can imagine what that does to your crew consistency, to your productivity, and the construction weekly plans, especially when the affected individuals are mission-critical people like, supervisors, or crane operators, or welders. And then, you combine that with absenteeism, running at 12% during the quarter. It is a huge challenge. And so that is why we are immensely proud, of the progress that we made during that quarter. And now we are very excited, because just in the last couple of weeks, we've now got things down to just about three active cases. And we are able already putting three people to a room, and increase in resources in sight, and finally getting a chance to go to full strength. So this will be a tale of two projects. The project is up to date, heavily influenced by COVID and we hope for the next 12 months an entirely different project, where we can make full progress. We continue to expect first production at QB2 in the second half of 2022 which is next year and QB2 is expected to double our consolidated copper production by 2023. At the same time, our Neptune facility upgrade is ramping up to full capacity across the site. The equipment there is performing according to or better than planned. I was there week before last it is exciting to see. And this upgrade is a key component of securing a long-term low cost much, much lower cost and reliable supply chain, for our steelmaking coal business. We saw a significant improvement in our financial results in the second quarter, reflecting spot price increases in all of our key commodities. Adjusted EBITDA was up 104%, compared with Q2 last year. Our operations performed well during the second quarter. Production was in line with plan across our business units. And we met our quarterly sales guidance in steelmaking coal and in zinc. At the very end of the quarter though, our rail logistics were impacted, by the wildfires in British Columbia. And the situation remains very difficult. And the provincial government declared a state of emergency last week. We extend our deepest condolences to all those who have been directly affected. While the wildfires did not impact our second quarter results, they are currently impacting transportation at our operations in B.C. Rail services have been disrupted, which is expected to negatively impact our steelmaking coal business. Our third quarter, steelmaking coal sales are now expected to be reduced by 500,000 to 800,000 tonnes with guidance revised to 5.7 million to 6.1 million tonnes for the quarter. Our annual production guidance has that range has been lowered by 500,000 tonnes to between 25 million and 26 million tonnes. And we have increased our annual transportation cost guidance range by CAD3 per tonne to CAD39 to CAD42 per tonne. And I think it's important to view that increase in context and in our transportation cost as a result of the wildfires within the context of current steelmaking coal prices. While we're raising our cost guidance range by CAD3, the Australian FOB price during the quarter, rose by US$100. So that's just a little bit of context for you. And it is due to the wildfires, the cost increased. We do have contracts in place to ship through all three West Coast ports, and that gives us the flexibility to divert some trains in vessels to Ridley Terminals which is clearly very economic for us. At the same time, like others in the industry, we are seeing signs of cost inflation across the business more generally. We have noted increases in the cost of certain key supplies, including mining equipment, fuel, tires and explosives, driven largely by price increases for underlying commodities such as steel, crude oil and natural gas. For our operations the largest impact is on our fuel costs. While the impact on our second quarter results was slight as we delivered an adjusted EBITDA margin of 39%, we expect these price increases to put modest upward pressure on our cash unit costs in the second half of the year. Despite this we have not changed our guidance for full year total cash unit costs in copper and zinc, and adjusted site cash costs of sales and steelmaking coal, and we have lowered our guidance for full year net cash unit costs in zinc. Finally, we were very proud to be named to the Best 50 Corporate Citizens in Canada, which is the 15th consecutive year that we have been ranked as one of the top 50 companies in Canada for corporate citizenship. Now, turning to an overview of our second quarter 2021 financial results on slide 4. Our financial results are significantly improved compared to Q2 last year, supported by improved commodity prices. Copper prices reached all-time record highs in the quarter with average prices 81% higher than in Q2 last year. Our realized steelmaking coal prices benefited from around two million tonnes of sales to customers in China that were priced at premium CFR China prices. Revenues were up by almost 50% from a year ago to $2.6 billion. Profitability improved even more with adjusted EBITDA increasing 104% and to $989 million and bottom line adjusted profit attributable to shareholders increased 281% to $339 million, which is $0.63 per share on a diluted basis. And Jonathan will review our financial results in more detail in a few minutes. I'll now run through some second quarter highlights by business units starting with copper on slide 5. Our copper business unit had a strong Q2 with a 385% increase in EBITDA compared to the same period last year, driven by substantially higher copper prices. Production was higher than in the same period last year when Antamina had temporarily suspended operations due to COVID-19. Total cash unit costs were US$1.80 per pound, which was $0.23 per pound higher than a year ago. But the increase in cost is primarily due to higher workers' participation and royalty expense, resulting from increased profitability at Antamina and this had a US$0.20 per pound impact compared to a year ago as well as higher consumables costs and the strengthening of the Canadian dollar. Despite those cost pressures we delivered an adjusted EBITDA margin for the copper business unit of 67%. We've maintained our annual production and operating cost guidance in copper. Turning to an update on our QB2 project on slide 6. As I mentioned earlier, the project has continued to effectively advance construction with the best quarter of progress to date despite the significant ongoing wave of COVID-19 in Chile. We continued to maintain and enhance our extensive COVID-19 protocols in order to protect the health and safety of our workers and the communities in which we operate. Prescreening and on-site testing have been key to our success in managing COVID. In fact we have screened out 1,300 positive cases, more than 1300 positive cases that otherwise would have gone to site. Additionally in coordination with the government we've successfully rolled out a vaccination campaign for our workers right on site. With COVID-19 cases in Chile declining, coupled with the countries and the project workforces high rates of vaccination, we are aggressively ramping up towards peak workforce levels. The critical path, which is the grinding circuit remains on plan and we are still on track for first production in the second half of next year. And based on the solid pace of construction through that last quarter, we expect to achieve 60% overall completion in early August, so next week or very late part of the week after. Our capital cost estimate remains at US$5.26 billion including contingency and escalation. And our estimate for COVID-19 capital impacts, which are tracked separately, has been updated to US$600 million, as a result of the forecasted impact of the second wave of COVID-19. Slide 7, provides an aerial view of the concentrator area, where we are making strong weekly construction in progress, the grinding lines shown in the background, currently remain the critical or the longest path for the project and we have made significant progress here with all six mills now in place. And behind that you can see the tower for the core or stacker, that has been erected, where the stockpile dome will go up and we continue to advance the structural steel of the grinding building and the mechanical installation of the stage flotation reactor cells, which you can see in the middle left of the photo in green, just to the after the 14 large, 650 cubic meter flotation cells in blue. In the foreground, you can see where we've advanced construction and mechanical installation of the copper and bulk concentrator thickeners and the regrinding facilities. And lastly, in the middle right, you can see the advanced stage of the on-site power substitution. Slide 8, shows the starter dam of the tailings management facility, where we have raised the dam elevation significantly in the quarter. We are continuing to utilize the tech mine fleet and some of our new fleet of CAT 794s, which are performing well. Slide 9, shows our progress in advancing the jetty from the onshore work fund and we have two additional offshore work fronts now to advance the Jetty from a jack-up barge and temporary island, where we've commenced pile driving. As the pipeline right of way and platform development is now effectively complete, we are focused on advancing the pipe stringing, welding placement and backfill. And Slide 9, shows the pipeline trench with the welded water pipe on the right and the string concentrate pipeline on the left, ready for welding in the back right, now you'll see our port workings. To see more of the latest progress on QB2, I, encourage you to watch a video of the project and view our latest quarterly photo gallery, which we have posted with our quarterly conference call materials in the Investors section of teck.com and you will find links to them in our Q2 press release. Next, our zinc business unit results for the second quarter are summarized on Slide 11. And as a reminder Antamina zinc-related financial results are reported in our copper business unit. Red Dog, has strong performance in the quarter with production increasing by 67% compared with the same period last year, as we had previously flagged lower 2020 production volumes at Red Dog resulted in lower material available for 2020 for sale and higher unit cash cost of sale for our zinc mining operations in the first half of this year. But we are now through that. Red Dog sales of zinc and concentrate were 39,000 tonnes, which was in line with our guidance and total cash unit cost of US$ 0.61 per pound reflect higher treatment charges and the higher cost of inventory for sale related to the lower 2020 production volumes. And Trail, was impacted longer than planned annual zinc roaster maintenance, which is now behind us. Looking forward Red Dog's shipping season commenced on July 19 and our Q3 sales guidance for Red Dog zinc and concentrate is 180,000 to 200,000 tonnes. For 2021 we expect higher production at Red Dog. We've increased our full year zinc and concentrate production guidance range by 20,000 tonnes to 605,000 to 630,000 tonnes. And we've lowered our full year net cash unit cost guidance range by $0.05 per pound to $0.35 to $0.40 per pound. We've also lowered our full year refined zinc production guidance range for Trail by 10,000 tonnes to 290,000 to 300,000 tonnes due to lower availability of quality zinc concentrate feed sources and the longer than planned roaster maintenance down during the quarter. Turning to our steelmaking coal business on Slide 12. And if you all remain on mute that would be appreciated. In the second quarter sales were 6.2 million tonnes in line with our guidance range and our average realized price includes around 2 million tonnes of sales to Chinese customers similar to the first quarter at high CFR China prices. And just as earlier the CFR China prices are around $314, $315 a tonne. And our LPO operations set a new all-time quarterly production record thanks to the expansion that we did last year. Adjusted site cash cost of sales were CAD 64 per tonne which was at the high end of our guidance range as anticipated and CAD 4 per tonne lower than a year ago. Our transportation costs of CAD 42 per tonne were above our full year guidance range which was expected and higher than a year ago as a result of higher fuel surcharges and tariffs. And as I mentioned earlier wildfires are currently impacting our operations in B.C., rail services have been disrupted which is expected to negatively impact our third quarter sales volumes and our annual production volumes and annual transportation costs in steelmaking coal. Our third quarter steelmaking coal sales are now expected to be reduced by 500,000 to 800,000 tonnes and we expect 5.7 million to 6.1 million tonnes of sales in the third quarter. We will continue to prioritize available spot sales volumes to China which is expected to continue to result and favorable price realization. We continue to target 7.5 million tonnes of sales to China in 2021 and that is unchanged from previous guidance. Our annual production guidance range has been lowered by 500,000 tonnes to 25 million to 26 million tonnes. And we have increased our annual transportation cost guidance range by CAD 3 per tonne to between $39 and $42. Again, it is important to view this cost increase in the context of current steelmaking coal prices which have risen by $100 during the quarter. We have not increased our adjusted cash cost of sales guidance for the full year. However upward pressure on input cost due to cost inflation and the impact of the B.C. wildfires are expected to result in costs coming in at the higher end of the range. In the second quarter, our steelmaking coal business unit delivered an adjusted EBITDA margin of 41%. And in the third quarter, we expect our financial performance to reflect the sharp increase in prices that occurred in the latter half of Q2. Slide 13. As I indicated earlier, our Neptune port project is in the ramp-up phase. And since the first steelmaking coal was unloaded using a new double railcar number on April 19, we've continued on fully commissioning the double dumper and then moved on to the site-wide ramp-up. August and September are anticipated to be big months for train handling and vessel loading. We are seeing excellent train handling times at Neptune with the combination of the double and single dumper, indicating that the terminal will be capable of processing in excess of 18.5 million tonnes per annum. Terminal throughput paused for the first two weeks of July as a result of the rail disruption due to wildfires. This should not affect the site-wide ramp-up and the pause gave us the opportunity to complete preventative maintenance. Slide 14 shows a photo of the new indexer for the double dumper, which is used to position advanced trains in the dumper. And you can see the drive system and the arm that comes down between the cars which is world-class technology. Slide 15 shows the largest cape-size vessel ever loaded at Neptune Terminal, which is 300 meters long and loads up to 200,000 tonnes and a bunch of us went to see it and climb up on it and watched the loading. It was very exciting. We're really pleased to see the project move into the site-wide ramp-up phase, as Neptune is a key component of our long-term low-cost and reliable supply chain for our steelmaking coal business. And to see more of the latest progress at our Neptune upgrade project, we have posted our latest quarterly photo gallery with our quarterly conference call materials in the Investors section of teck.com with a link to it in our Q2 press release. Turning to our Energy business unit. Results for the second quarter which are summarized on slide 16. Our realized price and results reflect a material improvement in Western Canadian select prices compared with Q2 last year. However, this was partially offset by higher unit operating costs and lower production, due to operational issues in the mine. There has been a slower-than-planned ramp-up of contract overburden stripping, as well as challenges around managing groundwater inflow from deep subsurface aquifers. And subsequent to the end of the quarter in July, we encountered additional challenges that will require mining a shallower main scope than planned, resulting in lost ore and the need for additional overburden stripping. The ramp-up to two-train operation has therefore been delayed until 2022. As a result of the operational issues and the mining challenges, we have lowered our 2021 production guidance range by 2 million to 4 million barrels to 6.8 million to 8.1 million barrels for the year. We've also increased our 2021 adjusted operating cost guidance range by CAD 12 per barrel to $40 to $44 per barrel. And with that, I will pass over to Jonathan for some comments on our financial results. Jonathan Price: Thanks, Don. I will start by addressing the details of the second quarter's earnings adjustments on slide 17. The most significant adjustment is a $44 million in environmental costs on an after-tax basis. This primarily relates to a decrease in the rates used to discount our decommissioning and restoration provisions for closed operations, due to a tightening of our credit spreads. Share-based compensation expense was $24 million in the quarter and commodity derivatives were $20 million. After these and other minor adjustments, bottom line adjusted profit attributable to shareholders was $339 million in the quarter, which is $0.63 per share on a diluted basis. Now the changes in our cash position during the second quarter are on slide 18. We generated $575 million in cash flow from operations, which is a significant increase compared with $300 million a year ago, reflecting higher commodity prices. We spent $1 billion on sustaining and growth capital including $666 million on QB2, $138 million on the Neptune port upgrade project and $203 million in sustaining capital. Capitalized stripping was $175 million, primarily related to the advancement of pits for future production at our steelmaking coal operations. This was higher than a year ago, primarily due to decreased stripping activities in Q2 2020, as a result of COVID-19. Debt proceeds, net of repayments on our US$2.5 billion project financing facility for QB2 were $272 million in the quarter and we also grew a net $337 million on our US$4 billion revolving credit facility. We paid $77 million in interest and finance charges and $26 million in respect of our regular quarterly base dividend of $0.05 per share. After these and other minor items, we ended the quarter with cash and short-term investments of $312 million. And now turning to our financial position on Slide 19. We've maintained our strong financial position with current liquidity of CAD6.1 billion including our current cash and the amounts available on our US$5 billion of committed revolving credit facilities. US$3.5 billion is available on our US$4 billion facility that matures in Q4 2024 and our US$1 billion sidecar that matures in Q2 2022 remains undrawn. Both facilities do not have any earnings or cash flow-based financial covenants, do not include a credit rating trigger and do not include a general material adverse effect borrowing condition. In fact, the only financial covenant is a net debt to capitalization ratio that cannot exceed 60%. And at June 30, that ratio was 27%. Of our US$2.5 billion limited recourse project financing facility for the QB2 project, we have drawn US$1.8 billion, as of June 30, of which US$224 million withdrawn in the second quarter. Antamina entered into a new US$1 billion term loan agreement in July, of which our 22.5% share would be US$225 million if fully drawn. The loan is non-recourse to us and matures in July 2026. We have no significant note maturities prior to 2030 and investment-grade credit ratings from all four credit rating agencies. Importantly, we have significant potential for EBITDA generation from current steelmaking coal prices. Every US$50 per tonne increase in the quarterly index lagged by one month is estimated to increase our annualized EBITDA by almost CAD 1.5 billion. With that I will pass it back to Don for closing comments. Don Lindsay: Thanks, Jonathan. In closing, we remain focused on our copper growth strategy and on delivering strong operating results and strong free cash flow in the current favorable commodity price environment. We believe Teck is one of the best positioned companies globally to capitalize on the strong demand growth we see for copper with one of the very best copper production growth profiles in the industry. Accelerating copper growth is the cornerstone of our strategy. In the process, we expect to continue to reduce carbon as a proportion of our total business while continuing to produce the high-quality steelmaking coal required for the low carbon transition. We're also continuing to strengthen our existing high-quality low-carbon assets through our RACE21 technology and innovation program, which is harnessing cutting-edge technologies to drive a step change improvements in productivity, efficiency, safety and sustainability. At the same time, we strive to maintain the highest standards of sustainability and safety and operational excellence in everything we do. And we have a leadership team with the right mix of skills and experience to deliver on our strategy. And with that, we'd be happy to answer your questions. Like many of you, most of us are on phone lines from home or other locations. So, please bear with us if there is a delay while we sort out who will answer your questions. And with that, operator, over to you. Operator: Thank you, Mr. Lindsay. [Operator Instructions] And the first question is from Orest Wowkodaw from Scotiabank. Please go ahead. Your line is now open. Orest Wowkodaw: Hi, good morning. Nice to see the solid progress at QB2. I was just curious. Did I hear correctly that you're now able to take the headcount up from 10,000 approximately up to the planned 12,000? And then, I'm wondering if that is the case, how we should think about the COVID-related escalation costs at QB2? I mean they were $150 million higher this quarter. Is that -- I'm just wondering, if we should anticipate those coming down materially. Any color would be very helpful. Don Lindsay: Okay. Thank you, Orest. And I see you've done it again getting first in line well done. So, the first part of your question the answer is yes that too, but I'm going to turn it over to Red Conger for details. Red, over to you. Red Conger: Good morning, Orest. I appreciate the question. We are absolutely aggressively increasing the headcount on site. We're going to three to a room as Don had mentioned. So that had been a constraint up until now. And as we're able to change the work rules associated with all of that protocols, et cetera, we're going to have less and less effect from the pandemic that you saw in the second quarter. So, the better we can manage all of that and the higher vaccination rates, et cetera, then the less additional COVID expenses we will have. So we're very optimistic that we've seen the peak of those protocols that we've had to take that have affected cost and productivity. And just to add one thing to Don's comments earlier, he showed a picture of the pipeline, the small one for the concentrate, the big one for the water. One of the things that our team has done to keep us on schedule during this unprecedented second quarter that we just came through, we've -- when people report out and we have those problems that Don described, we reconstitute the crews to keep working on the most critical items. And so, in that particular photo, the most critical item is the water pipe, not the concentrate pipe. We've got to get the water pipe complete, so we can do commissioning, hydro testing, et cetera. And we can finish the concentrate pipeline later. So that's just one example of how our team has flexed and responded during this, and now with more headcount on site more consistent work crews, et cetera, we can do that work in parallel. Again, we had originally planned to do. Orest Wowkodaw: Thanks Red. Just to clarify, so are you allowed to take the head count up to the maximum plan sort of peak levels now? Red Conger: Here's the way we should about it. Don mentioned the sales projects. So, we are now setting up work plans for the remainder of the construction that take into account all of the things that have changed since we made the plan just three or four short months ago. And so that plan will have the maximum employment levels possible that we can deploy take advantage of every work front possible and that may be a slightly different head count than what we had cited earlier. And with good effort and a little bit of luck it could even be higher than what we had planned before. But for sure it will be the maximum amount of people that we can deploy. Again, I'll just remind you some of the forward-looking things that the team has done. When we added the extra camp space when the pandemic first hit that now allows us to do some different things with three to a room. And like I said we're going to take full advantage of all of that and be very creative with these work plans. Orest Wowkodaw: Okay. And just finally any guidance you can give us Red on sort of a run rate of COVID cost increases moving forward as you ramp up? Red Conger: Orest the forecast that we've provided you now is our very best estimate of what we think it's going to be at completion. Orest Wowkodaw: What that 150 is to completion that's not just a catch-up? Red Conger: No, we're -- the forecast that we have given you we believe will be the total cost at completion. Orest Wowkodaw: Great. Thank you, Red. Operator: Thank you. The next question is from Matthew Murphy from Barclays. Please go ahead, your line is now open. Matthew Murphy: Hi. Just a follow-up on that last one. The $600 million estimate, how much of that would have been realized to date? And how much are you leaving for the rest of the project? Red Conger: Yes, Matthew the lion's share of that has not been incurred. So, those are our estimates of how this is going to be played out. Matthew Murphy: Okay. Okay. So, yet mostly yet to be realized. Okay. And I'm just wondering when you talk about the 60% complete, that's physical progress. And from here on? I mean how does the pace of the project compared to your original pre-COVID budget? Red Conger: Yes. So, that's total progress for the entire project to 60% number. So, that includes engineering and everything. And again, just to reiterate what Don said the pace of this will be different here forward than it has been. So, we intend to increase the pace of construction completion. And a good example of that Matthew the second quarter that we just completed was the best pace project to-date. That was our best quarter for construction completion to-date. And we intend to continue to beat those – this third quarter that we're in now will be better than the second, and we'll get a peak here in the fourth quarter, fourth quarter to early next year. Matthew Murphy: Okay. Thank you. Operator: Thank you. The next question is from Greg Barnes from TD Securities. Please go ahead. Your line is now open. Greg Barnes: Yeah. Thank you. I'm going to go back to you, again, Red. Just on a piece of completion, obviously, there's a critical point to get the project done by second half of next year. Just easy numbers you have to achieve about 3% to 3.5% completion rate per month from August on. Does that sound about right? And I guess, what was the number for Q2? Red Conger: Well, here's the way to think about it. What we've been able to do is maintain the critical path through the grinding lines on schedule. So again, just using that same example, I used on the two pipelines a minute ago when we had all of these report of issues quarantine issues, critical personnel not present, particularly in the last quarter. We made sure that we re-consisted – reconstituted crews to do everything possible on the critical path. So those – those about critical path through the grinding lines has maintained the schedule. And so now, when I mentioned, increasing headcount, other work fronts that we can open up et cetera that will be picking up those other pieces that we very appropriately de-prioritized, if you will during these challenges. So it's not just what is the percent complete, because like you said, that's kind of a mathematical thing, this has all been very targeted at, okay, we're going to get the first grinding line of the concentrator running in the second half of 2022. And the second one right after that and that's the program. That's how we're doing it. And that's why we're making such a big deal about keeping the critical path on schedule. Greg Barnes: Okay. So maybe this is a bit unfair read, but what is the target completion date for the first grinding line then? Red Conger: Second half of 2022. Greg Barnes: Don, can I switch back to you. Just the pace of inflation that you're seeing cost inflation on consumables, reagents equipment from what you're seeing is this cyclical, or is it – or is there a structural element of this going on? Don Lindsay: I would say, it's cyclical, I mean, as I said in my comments that there's – the source of this is the underlying increase in different commodities that make up things. So steel and fuel oil, of course, driven by your WTI price, the kind of cost that I would think of in the structural category might be for example, if you had labor agreements that we're locked in for several years at numbers that were a dramatic change. And the good news is we've just settled at our two large mines for six years in a reasonable range higher than last time the workers benefit. But in a way that we think will be quite productive and have stability for six years. So -- the short answer over to is cyclical. Greg Barnes: Well, you're not too concerned about 2022. I know it's early but not too concerned about higher costs at this point next year? Don Lindsay: Not really because we'll still be benefiting from the investments that we made at Elkview trying [ph] down Cardinal River. Neptune running at full capacity out stage which is a significant benefit. So those are strong positives that should help balance the increases in other inputs. Greg Barnes: Okay. Great. Thank you. Operator: Thank you. The next question is from Lucas Pipes from B. Riley Securities. Please go ahead. Your line is now open. Lucas Pipes: Hi. Good morning, everyone, and while it is tempting to continue to ask questions on QB2, I'll try to switch to the topic. First on met coal one, kind of, shorter-term question and then my follow-up will be a longer-term one. But in the short term when I look at your year-to-date production figures sales figures. It looks like a midpoint of guidance is baking in a ramp-up in the second half of the year. And is that -- is that a kind of stretch goal given what's going in the province, or do you have a pretty good line of sight to get to those levels set? Thank you very much for that. Don Lindsay: Yes. It's a good question. I'm going to ask both Real Foley and Robin Sheremeta to give an answer the overview, if you have to take that into the context with what the dramatic effect of the wildfires in the last two weeks or three weeks and that's a big factor and we're not depleting through that yet. So anyone's guess when that will be past us. But Robin, why don't you start? Robin Sheremeta: Sure. And just to reiterate that the wildfires are certainly causing us some uncertainty. I mean on the bright side as we came into this period we actually had considerable room at the sites. We -- logistics was strong through the first half. So we were able to move most of our rock – sorry, cleancoal to port. So that gives us some flexibility to get through this period. We can't run as fast when we're running to ground. So as we stockpile we have to slow production rates down a little bit. But the majority of our shutdowns are behind us now. There's some left to go in Q3, but we're well over half done through the maintenance process here through the first half. So we're in really good shape from an operational point of view. It's really just a matter of what kind of logistics constraints we see going forward now with rail. But we're in good shape to hit our new guidance range of 25 to 26. Don Lindsay: Thanks, Robin. And Real do you want to add any market color for the second half of the year? Real Foley: Yes. Happy to do that Don. So, yes, Lucas we're continuing to see the market really strong whether it's demand in China and they have their own supply issues with both domestic mines in Mongolia and on markets outside of China demand is extremely strong as well. Steel prices are running at record levels. Steel production, hot metal production is back to pre-pandemic levels. So we're continuing to see strong demand across the board for our products. Lucas Pipes: Very helpful. Thank you all for your perspective. Don, my follow-up I mentioned a longer-term question on the met coal market. And we -- in the past it seemed like we seems like a lifetime ago we spent more time thinking about what is a reasonable met coal price. And Don as you kind of survey that market from both the supply and demand vantage point. What's your view today, what is a reasonable price to underwrite as you do your internal planning or in conversations with investors? Thank you very much for your perspective. Don Lindsay : Yes. So we always start and say, well, where has it been in the last 10 or 12 years and the average price is actually in the 170, 180 range depending on whether you're using an inflation-adjusted number or not. In today's pricing terms it would be 180. And then we said, well, what's going to happen in the next 10 years on supply and demand. And it's pretty clear that there are constraints on investment in new supply and not just capital providers' willingness to provide capital, but also permitting issues. And we've seen it right here in Canada where recently a project proposal even though they've done all the hard work for six years and so on, but it was turned down and we've seen the same in Australia as well. So I have a view that there'll be less supply, but roughly the same demand. And the reason why we say that is, while each of us has been bombarded in the last year or so with research reports two or three weeks on green steel and hydrogen-based technologies and so on, it's pretty clear that it's going to take a long, long time for that to have a meaningful impact on the total volume of steel produced globally. And remember it's about a 2 billion tonne market, and the kind of investment it would take to make a material impact on that size of industry is trillions of dollars. And we just don't think it's going to happen for quite a while. So meanwhile, our core customers in Japan and Korea and China and India are seeing strong demand. India's steel industry, of course, is planned by the government to basically triple in the next 10 years. So we think that the outlook from a price point of view is actually quite strong. We've thankfully seen the recirculation in the market that we had the disruption between China and Australia and that whole issue. And it took a while to sort that out in the global markets, but it seems to have done that now. So it's much more stable for a commodity FOB price. And I think we can collect the cash now and see some stability. There's always going to be volatility in commodity markets, I do make coal is not an exception, but for our planning purposes we're the higher numbers. And we're not planning to grow our steelmaking coal business either, right? So -- and we don't see that happening at our major competitors, and new projects is just difficult to permit. So I think supply is going to be tight if that helps. Lucas Pipes: Very helpful. Really appreciate it and best of luck. Don Lindsay : Thank you. Operator: Thank you. The next question is from Carlos De Alba from Morgan Stanley. Please go ahead. Your line is now open. Carlos De Alba: Great. Thank you very much. Good morning. So on the coal production, we heard about the temporary mining ban this weekend in B.C. So I wonder if that add any additional incremental risk to call volumes in the third quarter or if that is in a way already incorporated in your latest guidance? And on the cost front there, but related to the water treatment, so we saw an increase of 110 million per year you expected between 2021 and 2030. What drove that? And what should we expect going forward? And then finally, I guess on the other end of the core business on Neptune. To what extent is Neptune helping you offset the higher coal transport cost? Because we also read in the release that you expect to see a little bit reduced throughput through Neptune and that is contributing to the higher cost transportation guidance? Don Lindsay: Okay. I think we'll get the first two parts of the question to Robin Sheremeta and I believe the last part for Real Foley or yes, I guess Real Foley. Robin Sheremeta: Thanks, Carlos. Just on the first question around production, pretty much the same answer, I walked through that, really, we've got to get through this fire situation and see how we come out the other side, but we've tried to reflect that in the guidance of 25 to 26. So we did reduce the guidance by about 0.5 million. So that's pretty much the issue on water treatment. The main reason for the increase in water CapEx over the period of 2022 to 2024 is really just a change in project time lines. So we're advancing some water treatment strategies as a result of consultation and some that can actually enhance our mine planning options. So just for an example, a few Phase 3 of the SRF that we've got there. We've advanced that from 2025 to 2023. So we pulled that in earlier and that supports potentially lower cost boiling options over that time period. So it's really just a shift in the time line on those developments. Real Foley: All right. And Carlos, your question on Neptune. So the increase in the transportation cost is really due mainly to the forest fires in BC. So as a result of this the train service to Vancouver was completely halted for over two weeks. And it's starting to come back to normal now. So what we did during that period is we diverted trains and vessels to Ridley terminals in order to continue delivering our coal to market. The fact that we have capacity through the three West Coast ports actually allowed us to do that and to capture the high pricing that we see in the market now with above 200 and CFR China above 300. And overall, when we look at Neptune, yes, the site is ramping up. It is doing well. We're expecting that by the end of Q3, we'll be running at above 18.5 million tonnes of capacity. And as such delivering the cost savings that we're expecting to see going forward for the long-term. Carlos De Alba: All right. Thank you. That’s very clear. And I appreciate the color. Operator: Thank you. The next question is from Abhi Agarwal from Deutsche Bank. Please go ahead. Your line is now open. Abhi Agarwal: Morning. Morning, well thanks a lot for the call. I have a couple of questions please. The first one is on Neptune. As Real just mentioned, the transportation costs for the second half have been impacted by the ongoing wildfires. But post that, once the situation has normalized, is it fair to assume that transportation costs stepped down over the course of next year to the lower end of the CAD 35 to CAD 40 per tonne range? Don Lindsay: Go ahead, Real. Real Foley: Yes. So if you look at the previous guidance that we had, it was at 36 to 39 for this year. We're expecting to be at least in that range for next year and possibly lower, as the volume going through Neptune will be much higher than what we would have seen this year. To put this in perspective, we're expecting volume through Neptune this year to still be somewhere around the 13 million to 14 million tonnes range. Next year should be about 18.5 million tonnes. So we will see the benefits of the fact that Neptune is a cost of throughput, as opposed to commercial rate that we're paying at other ports. Abhi Agarwal: Got it. Thanks a lot, Real. The next one is also on the steelmaking coal division. Can you give us a bit more color on the growth CapEx and the stripping CapEx increase at the -- for the division? And regarding the RACE21 CapEx uplift, is it possible for you to quantify the quantum of improvement in productivity and the reduction on costs going forward? Thank you. Don Lindsay: Robin, over to you. Robin Sheremeta: Just want to -- I think, you were talking about capitalized stripping. On the first part of the question. Just not simply a -- again, it's just the timing of mine sequence activities. So on occasion we mine in higher strip ratio areas and it sets us up for future production. So that's really just the change in capitalized stripping. And then, I apologize, what was the second part of your question, was around quantifying RACE21 benefits? Abhi Agarwal: Yes. Robin Sheremeta: I mean, it's a little difficult to give you a quantification and any kind of specifics, because it's across a broad -- very broad range of initiatives. So I can tell you that everything that we have invested from the capital side is leading to actually quite short term and strong economic benefit. And maybe, the one way to illustrate it is, we've maintained our cost guidance despite a number of different inflationary pressures with fuel and things like that and some of the reduction in production. And yet, we're still seeing strong cost performance. And, I think, when you roll all that up, that's in a large part a reflection on the RACE21 initiatives that are in play right now. So we are seeing good response on those, but I can't break that down into any kind of detail for you. Don Lindsay: What I would add -- Abhi Agarwal: Thank you very much. Don Lindsay: What I would add on that one is, at the beginning of RACE21, we were reporting the incremental EBITDA gains quarter-to-quarter, but it became difficult to do that during -- first of all, the COVID effects and having to take some pretty dramatic actions in the initial stages of the pandemic and then the volatility of the prices. And so, we're really focused on all the different projects themselves and we will report on the incremental benefits at year-end at the commodity prices at that time, so you can get a good feel for the value that is brought to the table. But suffice it to say, that people have been pretty excited by the progress we've made. Abhi Agarwal: Thank you. Thanks a lot for the color. Operator: Thank you. The next question is from Brian MacArthur from Raymond James. Please go ahead. Your line is now open. Brian MacArthur: Good morning. So, can I just go back to the capitalized stripping on the coal that's up $105 million this year, is that you're just being proactive because you have to ramp back production because of the sales and you're trying to get ahead of the game and that will benefit us next two years, or is there anything structurally really changed? Because I thought we sort of got the stripping down to a lower level. If you could just elaborate on that? And second Don I don't know if you can make any comments on project satellite. Don Lindsay: Sure. Robin, you go ahead and I'll come back on sale. Robin Sheremeta: Yes you bet. There's nothing structural has changed. We're still operating right around that 10:1 strip ratio. And really the situation we are a little lower on production. We've got strong raw coal inventories. And so, this allows us to do stripping in areas that don't release as much coal at the front end. but are going to set us up very strongly over the next couple of years. So it's really just shifting some of the stripping around. Brian MacArthur: So we have – can we expect – I mean that will be one of the things that just sort of offsets I assume or cost inflation going forward? Is that sort of how you're looking at it right now? Don Lindsay: As far as... Brian MacArthur: Sorry? Don Lindsay: Go ahead. Robin Sheremeta: Well just any time you can you can get ahead on stripping to some extent and set yourself up with that kind of flexibility on the mine planning side is it just puts you in a much stronger position in the future. So, we have that capability and it's allowed us to make that kind of move. Don Lindsay: Okay. And then back on satellite which we're really internally starting to think of it more as a copper growth division. Satellite of course has five projects. And on top of that we have QB3 and U. And so, in the last major investor conference we did publish some details and IRRs and NAVs and so on, on the key projects. So, if you look in the appendix of our IR presentation to get those. We divide it into near-term medium-term and longer-term options. The two near-term ones of course are Zafranal and San Nicolas. And Zafranal's case as we've said before, we need to wait to see how things landed in Peru. We now know that Castillo is President and we still need to wait to see as his cabinet gets appointed into firm. So, we don't think we'll be in a position to move forward in whichever direction, probably until the fall sometimes as we see how things go in Peru. We own 80% of that project. One thing for sure is that, if we partner in some way that we'll be doing it in such a way that we retain an interest in that copper exposure whether it's by taking back shares or, or selling less than 80% or that sort of thing. But that project -- that process is all ready to go, but it's also clear that you can't start it yet until Peru gets a little further along in their transition. And then San Nicolas obviously, you'll see the numbers in a very high-quality project. We've had a lot of interest. It's very exciting and we're sorting that sorting through that now dealing with different parties and their proposals. So, you'll see more of that in the second half of the year. And then QB3 as well, we're making good progress there. And I would hope that we would be reporting to the market that will have narrowed the options for that project. Can give some more detail on it between now and the end of the year as well. So, you could see incremental decisions on all three of those between now and the end of the year. And I think Fraser, if I'm not mistaken that's the last question. We're past the hour. Is that right? Operator: Yes. Don you can give some closing remarks if you would like to. Don Lindsay: Okay. I do want to draw people's attention that we will be holding our Annual Investor and Analyst Day. It will be a virtual session on September 21. So please mark the date in your calendar and we look forward to joining us. And we will send out say the date notices shortly and a press release with further details will be issued closer to the date. And just as a final comment, I have to tell you that last week Red and I visited five of our sites and we were at the port before the week before and we took a number of people with us. And I can only say, I wish all of you could have been with us see the exciting projects that are going on. We have so much talent, so many really bright hard-working people who are so passionate about what they're doing. It was just inspiring to be there and see all the progress we're making. So, we hope to share that with you on Investor Day and we look forward to speaking with you on September 21. Thanks very much everybody for joining us today. Bye now. Operator: The conference has now ended. Please disconnect your lines at this time and we thank you for your participation.

Operator: Ladies and gentlemen, thank you for standing by. Welcome to Teck's First Quarter 2021 Earnings Release Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. This conference call is being recorded on Wednesday, April 28, 2021. I would now like to turn the meeting over to Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analysis. Please go ahead. Fraser Phillips: Thanks very much, Kaye, and good morning everyone. Thank you for joining us for Teck's first quarter 2021 results conference call. Before we begin, I would like to draw your attention to the caution regarding forward-looking statements on Slide 2. This presentation contains forward-looking statements regarding our business. This slide describes the assumptions underlying those statements. Various risks and uncertainties may cause actual results to vary. Teck does not assume the obligation to update any forward-looking statements. I would also like to point out that we use various non-GAAP measures in the presentation. You can find explanations and reconciliations regarding these measures in the Appendix. And with that, I'll turn the call over to Don Lindsay, our President and CEO. Don Lindsay: Thanks very much, Fraser, and good morning, everyone. I'll begin on Slide 3 with first quarter highlights; I will be followed by Jonathan Price, our CFO who will provide additional color on our financial results. And then we'll conclude with a Q&A session where Jonathan and I and several additional members of our senior management team would be happy to answer any questions. So strong operational performance and higher commodity prices contributed to a very solid start to 2021 and the first quarter. Our operations continue to be resilient despite ongoing challenges associated with COVID-19. Teck team continues to rise to meet those challenges, putting in place comprehensive measures to protect the health and safety of our people and our communities to ensure that we can continue to operate responsibly and progress our strategy to grow copper production. Across our businesses, production was in line with plan. We met our quarterly sales guidance in both steelmaking coal and zinc, and there are no changes to our annual guidance. At the same time, we achieved major milestones for priority projects. We're now past the halfway point of construction at our QB2 project, which is a long right low cost operation with major expansion potential. QB2 is expected to double our consolidated copper production by 2023 and we continue to expect first production in the second half of 2022, which is next year. Our Neptune port upgrade project has moved in the commissioning phase. We've now loaded 18 ships. We successfully commissioned the Elkview saturated rock fill expansion in the first quarter on schedule and below budget. The Elkview SRF has been achieving near complete removal for Selenium and nitrates from up to 10 million liters of water per day since 2018. It is part of our ongoing work to affect the value water quality plan to maintain the health of the watershed around our students and cooperations. The Elkview SRF expansion doubles the water treatment facilities capacity to 20 million liters of water per day. Turning to Slide 4, revenues were up 7% from a year-ago to $2.5 billion. The profitability improved even more, with adjusted EBITDA increasing almost 60% to $967 million and bottom line adjusted profit attributable to shareholders increasing almost 250% to $326 million which is $0.61 per share on a daily basis. This reflects higher prices for our principal products most significantly copper, zinc, and Western Canadian select. Jonathan will review our financial results in more detail in just a few minutes. I'll now run through highlights of our first quarter by business units starting with copper on Slide 5. Our copper business unit had a strong Q1 with a 205% increase in EBITDA compared to the same period last year, reflecting a substantially higher copper prices. Production was similar to a year-ago, with higher production at Highland Valley Copper and Antamina offset by lower production at Carmen de Andacollo and QB as expected in our mining plan through 2021. Net cash unit costs were US$1.38 per pound in the quarter up from US$1.28 per pound a year ago, but in line with guidance. The increase in costs is primarily due to higher workers participation in royalty expense, resulting from higher profitability at Antamina as well as lower production volumes at Carmen de Andacollo. Turning to an update on our QB2 projects on Slide 6. Overall project progress surpassed the halfway point in April. We have been seeing the pace of construction trending upwards through the first quarter. In fact, we have been hitting new weekly record over the last month. These successes are a reflection of the project team's efforts in effectively managing through the current wave of COVID-19 in Chile. We continue to enhance our extensive COVID protocol in order to protect the health and safety of our workers and the communities in which we operate, including prescreening of the entire workforce with PCR testing. The situation is being actively managed to maintain the current workforce level and to allow for further ramp-up as soon as possible. As I mentioned earlier, we're still on track for first production in the second half of next year. Our capital cost estimate remains at US$5.2 billion that's absent the COVID-19 related capital expenses, which are being tracked separately. We have previously disclosed US$450 million to US$500 million of COVID-19 related cost of which US$197 million have been expensed. COVID-19 does continue to affect project progress. That said, we're pleased with the progress we're making in light of the current COVID-19 restrictions but the final extent of COVID-19 related costs will depend on the progress of the pandemic in Chile and the extent of further impacts on staffing levels. Slide 7 provides an aerial view of the concentrator area. The grinding line shown in the middle remain the critical or longest path for the project. We have made significant progress on the grinding lines in five of the six mills that are now in place. Since the start of the year, we have advanced the placement of third and fourth ball mills. And here you can see the last shell segment been lowered in place for the fourth ball mill. We've also significantly advanced the structural steel of the grinding building and have installed the stage filtration reactor or SFR installed in the flotation area, which you can see just here in green on the far right of the photo. These are just adjacent to the large blue flotation tanks which were well advanced in terms of mechanical installation. Slide 8 shows our marine works. We're piling for the Jetty is advancing from shore, if you got in the foreground, as well as from a temporary Highland in the background as supporting two additional work front offshore. Slide 9 shows the Starter dam of the Tailings Management Facility. We have significantly advanced construction in this area, completing the abutment seen in the background and continuing to raise the elevation of the dam in the foreground. And for these words, and we have been using Teck's current mining fleet, which includes several new Teck 794 haul trucks that were recently commissioned. Teck mining fleet is performing very well and has provided significant benefit to the project. Slide 10, the pipeline right away and platform development is now essentially complete and we continue with trenching, pipe stream, welding, and placement of the pipelines. Slide 10 shows a section of the water pipeline being lowered in place. This is the pipeline that will bring desalinated water from the port to the site. To see more of the latest progress at QB2, I'll encourage you to take a look at a video of the project in our quarterly photo gallery. We've posted these with our quarterly conference call materials at teck.com. And there are links to them also in our Q1 2021 press release. Next our zinc business unit results for the first quarter are summarized on Slide 11. As a reminder, Antamina's zinc related financial results are reported in our corporate business units. Substantially higher zinc prices were more than offset by a stronger Canadian dollar, lower sales volumes and higher unit operating costs and royalty expense. As we have said last quarter, lower 2020 production volumes at Red Dog have resulted in lower material available for sale and higher unit cash cost of sales in the first half of this year. Red Dog's sales in concentrate were 104,000 tonnes which was above our guidance range of 90,000 to 100,000 tonnes. Looking forward to Q2, we expect Red Dog's in sales to be 35,000 to 45,000 tonnes which again lower than normal as a result of the reduced production in 2020. And at Trail, while we continue to expect to produce between 300,000 to 310,000 tonnes of refined zinc this year, Q2 production will be impacted by planned annual zinc roaster maintenance. Turning to our steelmaking coal business on Slide 12. Sales were 6.2 million tonnes in line with our quarterly guidance. The second quarter average realized price reflects around 2 million tonnes of sales to Chinese customers at high CFR China prices. Our adjusted site cash cost of sales were $63 per tonne in the quarter. This was higher than anticipated due to internet and processing challenges which are largely behind us and mining sequence adjustments which advanced higher costs, steelmaking coal production from later in the year into Q1. Despite these challenges, unit costs were within our annual guidance range and all operations currently have healthy steelmaking coal and returns. We're now well positioned to maximize production out of the operations and deliver strong cash flows going forward. Also in Q1, we resolved the charges under the Fisheries Act in connection with discharges of selenium and calcite in 2012; for the Fording River and Greenhills operations. As I mentioned earlier, we have successfully commissioned the Elkview SRF on schedule and below budget. Looking forward to Q2, we expect sales of 6 million to 6.4 million tonnes. And we will continue to prioritize available spot sales volumes to China, which is expected to continue to result in favorable price realizations. We expect our realized price in Q2 to be materially higher than the 10-year average of 92% at the benchmark, which is coming from the average of the three assessments lagged by one month. And as I indicated earlier, our Neptune Port Upgrade project has now moved into the commissioning phase. The first steelmaking coal was unloaded using the double railcar dumper pictured on Slide 13 on April 19, I visited the site the day before yesterday saw it all in action, it looks terrific. The ramp-up is proceeding as planned and all major equipment is performing according to or better than planned. Today 18 vessels have already been loaded using the new outbound system. And at the same time the upstream rail infrastructure improvements by both CP Rail and CN Rail to support our increased volume through Neptune, they are all largely complete. So we're very, very pleased with the status of Neptune. As I said the first steelmaking coal went through the new double rail dumper on April 19. And you can see photo on Slide 14 shows it being placed on our stockpile by the new stacker reclaimer. If you'd like to see the new double dumper in action, we have posted a short video with our quarterly conference call materials at teck.com and there's a link to it in our quarterly press release. Slide 15 shows our new shiploader loading steelmaking coal into the vessel. We're really pleased to see the project moving to the commission phase and achieve first steelmaking coal as Neptune is a key component of our long-term, low cost and reliable supply chain for steelmaking coal business. Turning to our energy business unit results for the first quarter, which are summarized on Slide 16. Our realized price and results reflect a material improvement in benchmark rail prices in Western Canadian Select compared with Q1 2020. However, this was partially offset by higher unit operating costs due to lower production. Estimated production in the first quarter was impacted by little available mine inventory levels at the end of 2020. So looking forward though, Suncor expects to ramp-up to two train production by mid-year and to same production of 175,000 to 185,000 barrels per day by the fourth quarter. The focus is on overburden stripping and building mine inventory level to allow ramp-up to achieve train production. And with that, I'll pass it over to Jonathan for some comments in our financial results. And I could please ask everyone to keep their phone on mute while the presentation is ongoing. Thank you. Jonathan? Jonathan Price: Thanks, Don. I'll start by addressing the details of the first quarter earnings adjustments on Slide 17. Environmental costs were $33 million after-tax, primarily relating to an increase in the rates used to discounts on decommissioning and restoration provisions and increased expected remediation costs. We reversed $6 million in inventory write-downs, share-based compensation expense was $10 million and commodity derivatives were $15 million on an after-tax basis. After these and other minor adjustments, bottom line adjusted profit attributable to shareholders was $326 million in the quarter, which is $0.61 per share on both a basic and a diluted basis. The changes in our cash position during the first quarter are on Slide 18. We generated $585 million in cash flow from operations. We spent $869 million on sustaining and growth capital, including $523 million on QB2, $157 million on the Neptune port upgrade projects, and $153 million in sustaining capital. Stripping activities were $134 million primarily related to the advancement of pits for future production of our steelmaking coal operation. This was lower than a year-ago, driven by the decrease in strip ratios in our steelmaking coal business. For investments and other assets, we paid $44 million on expenditures, and received $11 million in proceeds. Net proceeds in the first quarter were from a $577 million drawdown on the US$2.5 billion limited recourse project financing facility to fund the development of the QB2 project. We repaid a net $44 million on our US$4 billion revolving credit facility. Lease payments totaled $33 million and we paid $113 million in interest and finance charges. We issued $6 million in Class B subordinate voting shares, and paid $27 million in respect of regular quarterly base dividend of $0.05 per share. After these and other minor items, we ended the quarter with cash and short-term investments of $369 million. Now turning to our financial position on Slide 19. We have maintained a strong financial position with current liquidity of CAD$6.3 billion. This includes our current cash and the amounts available on our US$5 billion of committed revolving credit facilities. US$3.8 billion is available on our $4 billion facility that matures in Q4 2024 and our US$1 billion sidecar that matures in Q2 2022 remains undrawn. Both facilities do not have any earnings or cash flow based financial covenants, do not include a credit rating figure, and do not include a general material adverse effect borrowing conditions. The only financial covenant is a net debt to capitalization ratio that cannot exceed 60%. And at March 31, that ratio was 26%. Financing facility for the QB2 project. We have drawn -- US$1.6 billion was drawn in the first quarter. The QB2 project exceeds its target ratio of project financing the total shareholder funding in April. As a result, there will be shareholder contributions going forward starting in the second quarter. We have no significant note maturities prior to 2030 and investment grade credit ratings from all four credit rating agencies. Overall, we have a strong financial position to allow us to continue to weather the changes around COVID-19 until the fleet to QB2 project. With that, I'll pass it back to Don for closing comments. Don Lindsay: Okay, thanks, Jonathan. In closing, I want to say we remain focused on Teck's prudent copper growth strategy going into green metals as they're now called. And we made solid progress on our key initiatives in the first quarter, we surpassed the halfway point of construction at QB2, we've moved in the commission phase at Neptune and we successfully commissioned the Elkview SRF on schedule and below budget. We believe Teck is one of the best positioned companies globally to capitalize on the strong demand growth that we see for green metals and in particular, for copper. We have one of the very best copper production growth profiles in the industry, and located in attractive jurisdictions. Accelerating copper growth is the cornerstone of our strategy and by growing our copper production; we rebalance our portfolio towards what's now called green metals. And in the process, we expect to continue to reduce carbon as a proportion of our total business while continuing to produce the high quality steelmaking coal that the world absolutely needs for a low-carbon future. We're also continuing to strengthen our high quality or existing high quality low-carbon assets to RACE21 technology, which is harnessing cutting-edge technologies, including artificial intelligence and automation to drive step change improvements in productivity, efficiency, safety, and sustainability. We strive to maintain the highest standards of sustainability and offer operational excellence in everything we do. And we have a leadership team with the right mix of skills and experience to deliver on our strategy. So with that, we will be happy to answer your questions. And like many of you, most of us are on phone lines from home, although I'm in the office personally today. Please bear with us if there is a delay while we sort out who will answer your question and with that operator, over to you? Operator: Thank you. We'll now take questions from the telephone lines. [Operator Instructions]. Our first question, Orest Wowkodaw from Scotiabank. Your line is open. Please go ahead. Orest Wowkodaw: Hi, good morning, and thanks for taking the question. So I was wondering if I could get some more color on the QB2 development here, just in the context of what's happening with the COVID outbreak in Chile. You did say that the COVID is having an impact on the pace of development. Just wondering where you are with respect to headcount, have you been able to get to the full rate? And also where is the project with respect to consuming the contingency that was embedded in the original $5.2 billion CapEx number? Don Lindsay: Okay, I'll make an opening comment. And then I'm going to turn it over to Red Conger and Alex Christopher whichever one wants to follow me. So we have been affected by COVID. No question about that. And so that has slowed us down relative to the ramp-up schedule that we had. But having said that, we just had our best four weeks. In fact, we just had our best two weeks. So it continues to improve. And we're quite encouraged by the progress the last month, there's no doubt that February, March were very tough. But things are coming along well. But COVID is still with us, it is still an ongoing challenge. In terms of the contingency, we still have most of the contingency that we published, available going forward. So with that, I'll turn it over to Red or Alex whoever wants to go. Red Conger: Yes, Don, Red here. Orest, thanks for the question. Again, we're really proud as a team and all the accomplishments that they continue to make their in place to be circumstances; headcount right now is about 9,400. We've been able to hold that level here the last couple of months and continue to make the progress that we would expect just that level of effort on the site. And the beauty of how the team is managing that numbers but we faced with COVID continue to get better, we were in a great position to springboard off of that and increase additional personnel on the site. All in all, very, very proud of where we're at. Orest Wowkodaw: Thanks, Red. I didn't quite catch the number you gave us. Sorry, the headcount can give you the headcount one more time, and what percent is that where you're supposed to be in terms of maximum? Red Conger: Yes, it's 9,400. And I don't have the percentage of total, but it's I'm guessing 10% less Alex, if you want to add more precision to that. Alex Christopher: Yes, I think Orest, our peak numbers here has been at around, I plan [ph] coming over definitive estimate that we were going to hit just shy of I think 12,000 workers on site. So it's sort of 9,400 well, sort of 20% there or so below that in that order. And this is really moved from I would say two people for instance, two people were [indiscernible] actually come through with some current wave of COVID things. And I think there's lots of positives here with respect to Chile on that some of the levels now, given I think vaccine 42% of their total population and nearly 32% of the population or 7 million people actually have two vaccines doses. So this is a really positive there, I think one of the leading countries in the world in terms of vaccination. So this gives us lots of a view towards what's going to happen over the next few months and our ability to start to ramp back up to that [indiscernible]. Don Lindsay: No, the peak workforce wasn't intended to be there today, that was the target for mid-year. Operator: Thank you. Our next question is from Greg Barnes. Your line is open. Please go ahead. Greg Barnes: Yes, thank you. Lot of delay with this point, but what completion rate per month are you achieving. Thank you. Jonathan Price: April will be our best month and I don't have that number yet. It was not quite finished. I think we're going to have to leave that Greg because it varies quite a bit week-to-week, but we're very pleased with April hasn't had a tough February month. Greg Barnes: Okay. So just a question for you, Don, given you have QB2 in slide, you've got a couple of projects in the pipeline potential if you want to build in, there's a lot of talk about what the long-term incentive copper price is. Do you have a view on that? And could you give us your ideas on that? Don Lindsay: Yes, so that could be a very long answer, but I'll just fill in. So in our planning, I'll give like what we do as a company, then personal view, if you like. In our planning, we generally use $3 copper. And in some cases we've used $3.10, or $3.15, but it has been down in those ranges. I see quite a few research reports now coming up saying kind of price has to be at least $3.50. So you always have to look at these things, whether they're inflation adjusted or not, relative to sort of real prices. My own view is that COVID has accelerated copper demand from what would have been a long-term rate of about 2%. And it's probably gone up a four percentage point to three would max 3.2 or 3.5. And that's probably right. If you see the activity in the world, if you see what's happened in the last week between President Biden hosting the Climate Summit, President Xi making his announcements and Mark Carney getting the banks and insurers to mobilize trillions of dollars to net zero, all of that is going to accelerate decarburization and accelerate demand for copper. So I think the prices are going to be there. We're seeing that in the market. Now, I just don't think the resources are there to develop. We're in a very fortunate position. We have a long list of projects at different stages, some of which could be built quite shortly, or built by partners quite shortly. And then QB -- QB itself is massive with over 8 billion tonnes now headed to 10 billion tonnes. So we could do nothing, but just add the next 10 years, and that would be a real value adding for the company. So I think given the nature of the resources that are out there, you're probably going to need 3.50 copper, to get companies to mobilize to go after to actually develop and there's got to be a real reward for going through the 10 to 15 years of pain to get something built. Greg Barnes: Thanks Don, that's realty helpful. And if I can, one final question maybe to Jonathan, the 42% tax rate in the quarter. What drove that, significantly above what the normalized rate would be? Jonathan Price: Yes, Greg, there were a couple of items, which were unique to the quarter that were essentially non-deductible for tax purposes. In the absence of that it will probably have been at 37% so consistent with our usual range. But nothing significant and nothing that's structural. Operator: Thank you. Our next question is from Jackie Przybylowski from BMO Capital Markets. Your line is open. Please go ahead. Jackie Przybylowski: Hi, thanks very much. I want to just ask you a question on the coal, the coal division first, your performance for Q1, are they seem quite strong 2 million tonnes and the guidance you have given previously was for the year 2021 at 7.5 million tonnes. I thought Q1 was supposed to be sort of lower run rate versus the rest of the year. So are you thinking that there's any way that the coal sales in China could go above that 7.5 million tonne number that you've previously guided? Don Lindsay: I'll turn it over to Réal. But I'll just say that we thought the same as you because normally with Chinese New Year in the first quarter, you'd have a little lower number. Jackie Przybylowski: Fair enough. Don Lindsay: But the answer to the big picture question is no, 7.5 million is our target. So Réal, more detail on that. Réal Foley: Yes, not much more to add, Jackie. I guess in reality, we're continuing to try to maximize sales to China. But as Don is saying, we have contractual commitments with long-term customers in other markets. So we're still looking very similar target 2.5 million tonnes throughout 2021. Jackie Przybylowski: Okay, thank you. Can you maybe while we're on the topic, can you talk a little bit about what you're seeing today? I know things change so quickly. The Chinese coal market seems pretty strong right now, but maybe that's not the case in other markets like India is -- can you give us a little bit of commentary on what you're seeing in terms of the CFR premium versus the FOB benchmarks today? Réal Foley: Yes, sure Jackie. So the current premium is getting very close to US$100, FOB price this morning is down to around 109, and CFR, China is at 227. So if we develop ocean freight, which currently for us is in the low 20s, you end up with very close to US$100 tonne crew. Jackie Przybylowski: Thank you very much. That's amazing. Maybe just shifting gears, I just have been reminiscing on some old places as, we haven't left the house in a while. And thinking back to the site visit we did to Highland Valley, I think it was around September 2019. And we saw the technology working there or sorting the autonomous haulage; would you give us, would you mind giving me an update maybe on how those trials are going? I think it's been a while since you've been doing those trials? Are you seeing success there? And is there regroup for how that might be kind of rolled through other mines or other areas of your business? Don Lindsay: Yes, it's pretty good. Shehzad, why don't you start? Shehzad Bharmal: Sure, thanks Don. Jackie on VHS at Highland Valley, we have now converted 21 trucks and not all on service in autonomous but will be as 2021 progresses. And our plan is to be able to have 35 trucks fully autonomous in both the pits by the -- by Q1 of 2022. And that was our plan. In terms of the performance of VHS is performing as designed, as expected. And we are doing cash flow to see longer-term benefits associated with higher life maintenance and fuel savings, which were on top of our expected benefits for VHS of utilization and labor issues. And of course, safety being one of the best things we have had really no issues on the safety front. It has performed really well. With respect to mine [indiscernible] your other question. And we have them on three shovels. And depending on where we are, we usually use two of them. And we continue to utilize them; the utilization is a little bit lower than expected. But we're working through the technology issues of making them more robust and so as per expectations. I should also add that on RACE21 aspect, Highland Valley has been one of -- one side of the gate. And with respect to our location models and combination and grinding circuits, the models that we have created are very fluid and performing really well. Highland Valley has delivered significant improvements in expected throughput compared to our geological models and the recoveries as well. So we’re very happy with that. Jackie Przybylowski: Is there any plan to expand these trials to other operations? Shehzad Bharmal: I can, perhaps Andrew or Robin can talk. We do have AHS at LQ as well right now. Andrew or Robin if you want to add to that? Don Lindsay: Robin why don't you do your version of what Shehzad just said. Robin Sheremeta: That you got it. Pretty much a repeat. We're pursuing the same technology as the LQ mine, we've got about half the truck fleet converted there now, so about the same 21 trucks. And we'll have that fully converted by the end of the year. And we're seeing very similar safety improvements, maintenance type improvement, shale life, that kind of thing. So very, very strong technology and it's still quite successful in coal as well. Operator: Thank you. Our next question is from Emily Chieng, Goldman Sachs. Your line is open. Please go ahead. Emily Chieng: Good morning, everyone. I wanted to pivot back to met coal and just maybe your return views on the commodity there, certainly doesn't seem to be a lot of new Greenfield groups for met coal certainly supportive on the supply side. But how do you square that off against what's happening in global steel markets longer-term where different regions of the world, China in particular perhaps looking at curtailing production or more globally, you're seeing a transition to more AS capacity? Don Lindsay: Okay. Réal Foley why don't you turn that. Réal Foley: Yes, I can do that. Thanks for the question, Emily. And so what we're seeing actually in the short-term is record high steel prices and that in large part due to recovering demand in all parts of the world, including China, India, and also outside of those regions. And there was an announcement this morning actually that China is removing the tax rebate on the majority of its steel product exports that will also support steel production in other countries, and will help China to reduce their exports. But the exports from China just put this in perspective, there are 54 million tonnes last week, estimates of that announcement again, it's just as of this morning, so it's pretty early, but it looks like it could reduce those export by 70% to 75%. So that's 40 million tonnes or so. And that compares to record high exports from China that were around 115 million tonnes a few years ago. So there is a [indiscernible] in shift in terms of scrap utilization that we're starting to see in China. China's currently using around this is a low 20% range in terms of scrap utilization. But overall, production in China is still very low. And given the stage that China is at in terms of scrap generation, a lot of this in China is going into construction and infrastructure, which is a longer cycle to January, submit a significant scrap to support faster increase of VAS. In other countries like India, where the majority of the growth is going forward, story is quite similar scrap availability is lower. And when we look at more developed markets, scrap utilization is probably somewhere around low-30s to mid-30% utilization. So we could see eventually shifting to that kind of level. But that will probably take some time to get there just in terms of scrap availability. Emily Chieng: That's really helpful color. And then maybe just one follow-up if I may, on the copper price environment and positive demand trends that you're seeing for the green metal and definitely your QB2 delivering into that should be a very exciting time. But as you think about your longer-term organic portfolio, is there a need to accelerate any of the other growth projects that you have, or from a tech perspective, would you rather see how the copper price environment plays out for a little while longer enjoy the free cash flow harvest, and then make those decisions? Don Lindsay: Let me speak to that, Emily. We don't need to see the copper price play out any longer, we have confidence in the long-term copper price that the market is going to need those projects. So that wouldn't be the limiting factor. The limiting factor is the stage at which each of the projects are at. So for example, QB2 is obviously going to be finished next year even if we wanted to go ahead with QB3, the earliest we could sanction that is probably beginning of 2026, because we have to finish the pre-feasibility study in now and feasibilities and file for the FCRA and so on. If everything went perfectly, you might be able to do in three to six months faster, but nothing if it does go perfectly. So there's going to be a gap between when QB2 starts up next year, probably three, four years of very, very strong free cash flows. And even when QB3 is sanctioned the first equity capital comes from our partners and in project finance so Teck wouldn't have to come up with any funding till 2027 to 2028. So there's a long stretch there where there's should be very, very strong cash flows available to return to shareholders. The other project Zafranal the feasibility is finished but there's a lot of optimization going on. Peru is still locked down, and I saw earlier that that's likely to stay until September. So the earliest anybody who wanted to partner with us there could go visit it. It's not for several months, yet. San Nicolas, we've just finished the pre-feasibility study, which we'll be publishing in due course. We're just working on some final questions. And, that's one that maybe could be built during the period between QB2 and QB3. We probably have a partner build that for us. So again, we wouldn't have to come up with any capital. The market will need the projects. But the projects themselves have to go through the stage gate process, until they're ready to built. So, that's really the state of affairs. And that's the same worldwide, by the way, you look at all the list of projects, there's about four or five -- that are already under construction coming on in the next two years. And after that, there's a long period when there's quite a gap to still open up. Emily Chieng: Great. That's perfect. Thank you. Don Lindsay: There was a consultant, done a research report out a couple of days ago, calling for a 4.5 million tonnes gap between supply and demand by 2030, that's 15QB -- they're just not around. Operator: Thank you. Our next question, Adam Bryce, CIBC Capital Markets. Your line is open. Please go ahead. Adam Bryce: Good morning. Thanks for the update and taking my questions. Actually, I just have one. It's a follow-up to Orest and related to QB2, with today's update the project past 50% completion. And going back to 2020 update, I recall you were targeting 40% completion by year-end, which ultimately you achieved. So my question is, and I know that COVID is a variable, but on your updated project schedule, what percentage of completion are you targeting by 2021 year-end? Don Lindsay: I don't think we're going to give you a number on that because it's so dependent on COVID and we're not through that situation yet. Well, once we are through it and we can finish the ramp-up to peak workforce, then the predictability and the percent per week to go back to Greg’s question, all that becomes much clearer and we can give you a better, better number. What we can say is that we just had our four best weeks in April. So it's going in the right direction. We expect, the percent completion per week to continue to increase week-by-week, going forward, as long as COVID doesn't get in the way. But until, we have COVID well and truly behind us, it wouldn't be right for us to be too definitive on those things. But we do have a lot of confidence, a very high-level of confidence that this is going to be finished, as we've always said in the second half of 2020s. Adam Bryce: Okay. So excluding COVID, if we try to stack it publicly and at a very high-level, first production is expected, second half of next year. We're at or past 50% now, would it be fair to split the differences and say that to be on track for first production on schedule that the project needs to be at, or about 75% for the year-end, is that fair reference or is that -- Don Lindsay: I think you're trying to get too specific and we're going to leave the disclosure as it is. Thanks. Operator: Thank you. Next question from Timna Tanners, Bank of America. Your line is open. Please go ahead. Timna Tanners: Hey, good morning guys. I have two follow-up, to the topics we had earlier on met coal and on the satellite projects. So, net coal, it's really missing the party in terms of global prices and the gap you pointed out. It is really wide. And I know you said you have long-term contracts, but are there any potential for revisiting these contracts that they can do at any point, if this is a long-term situation, is there anything that can happen down the road? And then I'll ask a follow-up on the copper projects. Thanks. Don Lindsay: Yes. We surely understand why you're asking the question and it's something that we would, kind of conceptually look at here. I think it's too soon to conclude that it's a long-term situation between China and Australia. And then, even if it was, the fact is like, you have to look at the market globally. You can't be totally dependent on one country. And we have some really good, strong, important customers that we've had long-term relationships with. What, I think, you'd more likely see is the current pricing mechanism, evolve over time. So that -- those -- and so right now we have a bifurcated market with two distinct prices, one's risky, good. We're very happy with it. And yes, we wish we could sell more tonnes at a higher price obviously. But, I think if the market concludes that geopolitical situation is long-term, that's the pricing mechanism will change and that, and that will be favorable to us, as some competitors it won't be as favorable to. Timna Tanners: All right, that makes a lot of sense. Thank you for that. And then on the project, the satellite project, you just went through and explained that the earliest sanctioning for QB2 would 2026, and Zafranal needs to go -- has done the feasibility and San Nicolas is potentially for this, but can you just go through and give us, earliest productions and what are the gaps in that, the projects that you could give, because you've also said that, Teck is in a favorable position to start earlier than other, other companies, I'd just like to understand that timing a little better. Thank you. Don Lindsay: That's a fairly detailed question. What I'm going to suggest is that, what's the best way. I know, because there's eight projects really and all different timetables because they are at different levels of development, from pre-feasibility, feasibility, it's on the permitting in different countries takes that different length of time. I think, what we'll probably do is put a packaged answer to that and get it out to the market generally in some form between now and the next quarterly, and certainly at Investor Day, we'll be going through that, those plans in details, but it would be a very long answer. And it would only, generate a whole bunch of more questions if we tried to go through the whole list today. So, certainly appreciate the question and, we in due course, we'll get to you a more reasonable answer. Operator: Thank you. Our next question from Lucas Pipes, B. Riley Securities. Your line is open. Please go ahead. Lucas Pipes: Hey, good morning, everybody. I have questions along the same lines as well. And first to turn to -- to China and the met coal market, you noted that the decline of 80% of imports in the release, and obviously, the steel market is globally very strong. And I wondered what your perspective is on how China is meeting its demand today, if not with seaborne imports and then how sustainable you think that situation is longer term. Thank you. Don Lindsay: Réal, over to you? Réal Foley: All right. Thanks Lucas. So what China is doing in the short- term is increasing their domestic production in Q1 2021. Their domestic production was up 15 million tonnes year-over-year. That is the on the backdrop of some challenges that the domestic industry has faced in terms of -- at coal mine accidents, and following increased safety and environmental inspections. So it remains to be seen where it could increase to currently and China consultants are expecting that steel production will be above, not steel, sorry domestic coal production will be about 500 million tonnes, a bit above 500 million tonnes in 2021. That is up somewhere around 15 million tonnes compared to 2020. And as a result of that tight availability, of course, the domestic price in China, has increased, it is now sitting around 231 CFR equivalent. The other place where China is getting more coking coal is from Mongolia. So during Q1, the imports were up also, and, but they are still down on an annualized basis compared to the record high in 2019. That record high was 24 -- was 34 million tonnes and then Q1 the number is annualized at 24 million tonnes. And a lot of it is result of increasing COVID cases in Mongolia that is putting that curve on exports that started from about mid-March and is still ongoing today. Imports from the seaborne market, as you said, are lower, given that there is none from Australia now, since December of 2020. But overall seaborne imports for Q1 on an annualized basis are up to above 21 million tonnes. And that compares to about 13 million tonnes excluding Australia in 2020. So that's -- that's kind of where the coal is coming from, during the Australian there [ph]. Lucas Pipes: Réal, I really appreciate all this detail. My second question is, along the lines of copper project satellite et cetera. And when I -- when I think back to few years back, it seems like those -- some of those projects were potential monetization targets, sounds very different today, obviously, but what I wondered in terms of strategy going forward, would you be going so far as to be inquisitive on the M&A side when it comes to two copper projects specifically? And if so, where would you be? Where would you be looking, and then I've given some of the things you mentioned earlier, in regards to the outlook for copper, what would be the implications for exploration spending, et cetera? Would really appreciate your perspective on this. Thank you. Don Lindsay: Okay. There were several questions within that. I'll start with some. First in terms of, you mentioned the inquiries are looking at buying. We're not interested in buying anything because we were very rich in resources and technically we have eight projects to work through. So, that's not to say that our eyes are closed. We're obviously going to keep an open mind, if something comes along that is that much better than everything we've already got then we'll take a look at it. But now we don't expect that to occur. In terms of exploration budget, as we get further along knocking off all these initiatives, such as Neptune, Elkview water treatment, Fording River water treatment, and with pricing with copper, zinc where they are, I think more capital becomes available. And, I would expect the exploration, we'll share in that. And we've been very pleased with the work our exploration team has done over the years. So, yes, is the answer to that question. In terms of, monetization of the assets, I guess I'd make two observations. One is clearly assets are worth more today than they were a year ago, pre-COVID. And that's just a function of two things. One is the long-term view of copper price or copper demand, which drives price has shifted from about 2% copper demand growth to 3% to 3.5% that opens up a big gap, which means that these projects are more valuable based on the long-term price people are using. But then also the mid-caps that really need their next project, they have a much better access to capital markets. Then they can do a block deal for 500 million of equity and put that to work getting themselves a new project. So the number of buyers and the ability of the buyers to pay has increased significantly over the last year. So in that context, we will look at the market as one of our board members said, why would you ever sell a copper project, given the outlook for the board over the next 10 years? I think the answer is somewhere in between, getting the right balance and we've looked at some of our situations and listened to the inbound calls that we've been receiving. And there -- there's some interesting opportunities whereby we could bring on a partner and they build it with their capital and their people, and we're left with half of mine or more for free. And if that sneaks in between QB2 and QB3, then that's a pretty good situation. So we're looking at those kinds of options. And what we'll do is, we'll put together a whole package of information on the portfolio. And just back to Timna's question earlier, I mean, one of the reasons we can't really answer today is because we just don't know when COVID is going to end. And COVID is the single determining factor as to whether people can even visit a site to decide whether they want to buy something or partner with us or whatever. That's still up in the air, it is still not possible, in some circumstances. So that's why it's hard to be too dependent on the dates. Lucas Pipes: Don, I really appreciate this perspective. Thank you very much and best of luck. Don Lindsay: Thank you. Operator: Thank you. Our next question from Matthew Murphy, Barclays. Your line is open. Please go ahead. Matthew Murphy: Hello. I was wondering if you could share any thoughts you might have on Peru. We've got the leading presidential candidate positioned fairly aggressively against foreign miners. I'm just wondering if, you or Anthony in the management or the Chamber of Mines have had any briefing insights into his administration and just anything you can suggest we should think about as this election plays out. Don Lindsay: Yes. Clearly we're all watching it, and there's different professional geopolitical commentators that publish reports every day. I read some of them and I'm sure most of the team does. But I don't think that there's much, additional insight that we can add to that to help you with your question. No one knows the answer and the results. I see that it shows the modifying his position somewhat in the end he comes from a advantage point. That's fairly far left and it looks like in the polls, he has as a lead. In our case for our company, it's an important thing to watch. We have two key assets, Antamina of course a very, very important asset; Zafranal a development asset. It's not that material to our company as it would be to some other companies, but, in the end I’m sure, we're all just going to have to watch and see what happens. Matthew Murphy: Sure. And maybe just as a follow-on, on that, it's my understanding that we want to have a tax stabilization agreement in place right now. And can you just remind if we look just for Antamina, how much CapEx you'd be paying or putting into the asset over the next few years. Don Lindsay: I'll turn that to Jonathan, but just saying, because you prompted the issue. We do have one at QB2, which is very important. So Jonathan, over to you. Jonathan Price: I was just getting off mute there. I don’t have the outlook for Antamina CapEx to hand, but if you can get with Fraser after this call, we can -- we can just give you whatever relevant disclosures you have on that point. Operator: Thank you. Our next question, Brian MacArthur from Raymond James. Your line is open. Please go ahead. Brian MacArthur: Hi, good morning Don. Yes, mine had to do with project satellite, and I know you've given lots of answers, but just so I, and obviously you've got lots of strategic options. Are we now seeking a originally project satellite with all monetization, you've talked about a partner building one of your projects. Can I assume that you don't really want to build any of these eight projects and I could argue maybe you should have another production center or what's your philosophical thinking on that? Given originally, you thought you could monetize probably big satellite for $3 billion or at least that number was originally put out. I don't know if you'd be willing to put out a new potential number, you might be able to get out of this. Don Lindsay: Okay. And a couple of clarification, that we took these projects that were all very early stage. And what we said is we've moved them through the scoping, resource, reserve, scoping study, pre-feasibility, feasibility, and then decide what best to do with it, whether it was to actually build it, if it made sense as part of Teck’s portfolio or to partner or to contribute into another company, take back shares, run the cycle or to sell out right for cash. So that it was never contemplated that we would monetize all of them, but some were less likely to become part of the Teck portfolio going forward. And so it was always thought that some of them would be monetized. We set a target of $3 billion of value in terms of NAV. We have significantly exceeded that for those five projects. But we haven't necessarily realized any of that in cash. We do know from just -- just inbound calls and letter proposals and things that we get unasked, that we could clear significantly over a billion on a couple of them if we chose to do that. We would just say we know we've received offers that say those numbers, we think it's long way from exit, getting letters it's actually closing the deal. But so a significant value has been created by the satellite team. Market has shifted structurally, I think for some time. COVID has a big impact, well no question about it. And part of the de-carbonization and the associated electrification and long-term demand for copper looks very strong. So that causes us to rethink it carefully. So, we don't leave value on the table. We've done studies of all our competitors to see what they are becoming. And like a lot of people don't have much in the cupboard in terms of copper resources to develop. And if you look at the exploration track record as an industry, the copper industry hasn't done that well over all. I mean, there have been some, some successes. But it's limited. So we're looking at very carefully. And as I said earlier, we’ll commit to putting out a full update on our copper pro division if you like, or maybe they're calling that. And so people can see just what kind of a pipeline we've got. But it's pretty exciting and we've got a tremendous resources, we're rich in resources. Brian MacArthur: Great, thanks. That's very helpful. Just a second question, just for a detailed question, for the settlement with the Fisheries I think there were two $30 million payments, have they been made yet or they out of cash flow yet? Don Lindsay: Just a final thought on your last question. Brian MacArthur: Thanks. Don Lindsay: We almost know for sure we will be building QB3, right. We don't know, whether it's a direct 50% quick expansion of doubling or tripling, right, consider the resources are there to sustain. So you can assume that Teck and our partners in the [indiscernible] mining we've got will be building and expanding QB overtime. On the Fisheries, I’ll turn that to Peter Rozee. I don't hear Peter. So I'll just say that the two 30s have not been paid yet. I think we have a year to do. Peter Rozee: I’m sorry; I’m getting myself off mute. The answer is we have not paid the Fisheries at times. Yet, they're recorded as a short-term liability at quarter-end. Operator: Thank you. There are no further questions registered. At this time, I'd like to turn the meeting back over to Don Lindsay. Don Lindsay: Okay, well, with that, thank you very much for joining us today. We look forward to having the next quarterly call in July and we'll give you another update on QB2, then we're very excited to have passed the halfway point, very excited with our progress. In the last four weeks, we do see some improvements in the COVID situation in Chile. We certainly hope that continues. And that allows us to ramp back up to peak forward -- peak forced them towards the middle of the year. We're delighted to have Neptune in the full commissioning stage, 18 ships having already been loaded. As I said I was there on Monday looking terrific and is going to be tremendous long-term asset for our coal business and structurally lower the costs for decades to come and allow us to deliver high quality metallurgical coal to our customers when they wanted, when prices are high. Once again, thank you all. Have a good day.