Teck Resources (TECK) Investor Update summary

Comprehensive operational review and governance

• Completed a detailed operational review with input from third-party experts and independent advisors, focusing on achievable, risk-adjusted plans and enhanced executive oversight, with SVPs of Operations for LATAM and North America now reporting directly to the CEO.

• Embedded more conservative assumptions and risk adjustments into new guidance, reflecting demonstrated performance and ongoing TMF constraints.

• Board sub-committee maintains increased oversight frequency, and direct CEO and Board oversight ensures execution of revised plans.

QB (Quebrada Blanca) Action Plan and TMF development

• TMF (Tailings Management Facility) development is the main constraint on QB production, causing significant mill downtime and lower utilization rates, with 2025 mill availability close to design but utilization constrained.

• Initiatives to improve sand drainage, remove ultra-fines, and implement cyclone technology upgrades and paddock redesign are underway, with positive test results and facility modifications in progress.

• Mechanical construction of rock benches, upstream beaching, and installation of permanent infrastructure are progressing to support dam growth and stability, with key milestones expected by late 2025 and early 2026.

• TMF-related downtime is expected to decrease in late 2025 and 2026, with steady-state operation targeted for 2027 and TMF development expected to be completed by end of 2026.

Revised production and cost guidance

• 2025 QB copper production guidance reduced to 170,000–190,000 tonnes (from 210,000–230,000); 2026 guidance lowered to 200,000–235,000 tonnes (from 280,000–310,000), with net cash unit costs of $2.65–$3.00/lb for 2025 and $2.25–$2.70/lb for 2026.

• 2027 QB copper production guidance revised to 240,000–275,000 tonnes; 2028 to 220,000–255,000 tonnes, with conservative throughput and recovery rates below design; optimization and higher grades expected post-2028.

• TMF development capital for 2026 set at CAD 420 million, with normalization expected from 2027.