First copper concentrate sold and ramp-up advancing at QB2

Vancouver, B.C. – Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (Teck) today announced its unaudited second quarter results for 2023.

“We were deeply saddened to report an employee fatality in the second quarter at our Quebrada Blanca Operations. Our deepest sympathies go out to the employee's colleagues and loved ones. Learnings from the investigation are being shared across Teck and with industry peers to prevent future incidents," said Jonathan Price, CEO. “In the second quarter we achieved another major milestone at our QB2 project with the first sale of copper concentrate as we ramp up to full production later this year. We continue to explore a range of options to realize the full potential of our world-class base metals business and to progress our overall copper growth pipeline, including receiving regulatory approval for our Zafranal project in May. Strong performance from our steelmaking coal business contributed to solid financial results in the second quarter, further reinforcing the inherent value of our high-margin steelmaking coal business."

Highlights
Adjusted profit attributable to shareholders1 of $643 million or $1.24 per share in Q2 2023.

Profit from continuing operations attributable to shareholders of $510 million or $0.98 per share in Q2 2023.

Adjusted EBITDA1 was $1.5 billion in Q2 2023 driven by continued robust commodity prices and strong steelmaking coal sales. Profit from continuing operations before taxes was $805 million in Q2 2023.

We completed the first shipment and sale of copper concentrate at QB2 in the second quarter. Line 1 is operating well as per expectations, and Line 2 is in commissioning. We continue to expect to be operating at full production rates by the end of 2023.

We generated cash flows from operations of $1.1 billion, ending the quarter with a cash balance of $1.8 billion. In June, we made our first scheduled semi-annual repayment of US$147 million on the QB2 project finance facility, further deleveraging our balance sheet.

Our liquidity as at July 26, 2023 is $7.0 billion, including $1.7 billion of cash.

We completed $85 million in Class B subordinate voting share buybacks pursuant to our normal course issuer bid. We also paid $65 million to shareholders in Q2 through our regular quarterly base dividend.

In April, we closed the transaction to form the joint venture on the San Nicolás copper-zinc project in Mexico and in June finalized the Environmental Impact Assessment permit application, which is planned for submission in Q3 2023. In May, we announced that the Zafranal copper-gold project in Peru received regulatory approval from the Peruvian environmental authority.

On May 12, 2023, we completed the plan of arrangement under the Canada Business Corporations Act to implement a six-year sunset of the multiple voting rights attached to the Class A common shares.

?Financial Summary Q2 2023

Financial Metrics
(CAD$ in millions, except per share data)
Q2 2023 Q2 2022
Revenue $3,519 $5,300

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