Teck Announces 2024 Production and 2025 Guidance Update

Vancouver, B.C. – Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (“Teck”) today provided select unaudited fourth quarter 2024 production and sales volumes, annual production volumes for 2024, as well as operational and capital guidance for 2025 and production guidance for 2026 to 2028.

Our fourth quarter 2024 financial results are scheduled for release on February 20, 2025.

Overview of 2024

Teck underwent a significant portfolio transformation in 2024, repositioning itself as a pure-play energy transition metals business focused on Copper and Zinc.

During 2024, we completed the sale of 23% of the steelmaking coal business, EVR, to Nippon Steel Corporation and POSCO for upfront proceeds of US$1.3 billion and the remaining 77% of EVR to Glencore for proceeds of US$7.3 billion. Upon closing of the transactions, we announced our intention to allocate the transaction proceeds consistent with our Capital Allocation Framework. This included total cash returns to shareholders of $3.5 billion, a debt reduction program of up to $2.75 billion, approximately $1.0 billion for final taxes and transaction costs and cash retained for our value accretive copper projects. Given the completion of the sale of EVR on July 11, 2024, we have removed steelmaking coal business unit information from our 2024 production results in this guidance update.

In 2024, we executed $1.25 billion of our authorized share buyback program of $3.25 billion. We also reduced our debt by US$1.6 billion through a bond tender offer for our public notes in July and other debt repayments in the second half of 2024.

We continued to advance our value accretive copper growth strategy, reinforcing our commitment to long-term value creation through a balanced approach of growth investments and shareholder returns. We have a pathway to grow copper production to approximately 800,000 tonnes per year before the end of the decade, with planned attributable post-sanction project capital expenditures of between US$3.2 to $3.9 billion to develop four key near-term copper projects:

 

• Quebrada Blanca (QB) optimization and debottlenecking (Teck 60% owner, Chile) – low capital intensity option to potentially increase throughput at QB by a further 15-25% (US$100-200 million estimated attributable capital cost).
• Highland Valley Copper Mine Life Extension (Teck 100% owner, Canada) – lower complexity brownfield project extending the life of Canada’s largest copper mine to mid-2040s. Estimated life-of-mine copper production of 137,000 tonnes per annum post-2024 (US$1.3-1.4 billion estimated attributable capital).
• Zafranal Project (Teck 80% owner, Peru) – long life, competitive capital cost and lower complexity copper-gold project, SEIA approval received and positioned for a potential sanction decision in H2 2025. Estimated copper production of 126,000 tonnes per annum over the first five years with substantial gold by-product credits (US$1.5-1.8 billion estimated attributable capital).
• San Nicolás Project (Teck 50% owner, Mexico) – low capital intensity, lower complexity copper-zinc project in well-established mining jurisdiction in partnership with Agnico Eagle Mines. Estimated production (on 100% basis) of 63,000 tonnes per annum of copper and 147,000 tonnes per annum of zinc in the first five years. Feasibility study and execution strategy are progressing towards a potential sanction decision in H2 2025 (Teck estimated funding requirement US$0.3-0.5 billion).

2024 Production Results

The table below shows a summary of Teck’s share of unaudited production and sales of principal products for the fourth quarter of 2024, and 2024 annual production as compared to our previously disclosed guidance as of October 23, 2024.

2024 annual copper production of 446,000 tonnes increased by 50% compared to the prior year primarily due to the ramp-up of QB, which achieved design throughput rates by the end of the year. Record quarterly copper production of 122,100 tonnes in Q4, increased by 19% compared to the same period in 2023, with QB contributing 60,700 tonnes. Copper sales volumes from QB of 66,400 tonnes were higher than production volumes in the fourth quarter as inventory levels decreased.

2024 annual zinc in concentrate production of 615,900 tonnes decreased by 4% compared to the prior year, as anticipated in our mine plan, primarily due to a higher proportion of copper-only ore relative to copper-zinc ore at Antamina. This was largely offset by an increase of 3% in annual production at Red Dog, with 555,600 tonnes produced.

2024 annual refined zinc production of 256,000 tonnes was 4% lower than the prior year, as a result of a localized fire in the electrolytic zinc plant at Trail on September 24, 2024, which impacted production in the fourth quarter, as previously disclosed.

2024 Production Results

	Q4 2024		2024	2024 Guidance1
(Units in 000’s tonnes)	Production	Sales	Production	Production
Copper
Quebrada Blanca	60.7	66.4	207.8	200 – 210
Highland Valley Copper	27.1	24.2	102.4	97 – 105
Antamina (22.5%)	21.1	23.0	96.1	85 – 95
Carmen de Andacollo	13.2	11.3	39.7	38 – 45
	122.1	124.9	446.0	420 – 455
Zinc
Red Dog	128.4	184.0	555.6	520 – 570
Antamina (22.5%)	18.0	20.0	60.3	45 – 60
	146.4	204.0	615.9	565 – 630
Refined zinc
Trail Operations	62.1	61.1	256.0	240 – 250

Note:

1. Guidance as of October 23, 2024.

Guidance

Our production, unit cost and capital expenditure guidance for 2025, and annual production guidance for 2026-2028 are outlined in the tables below. The guidance ranges below reflect our operating plans, which include known risks and uncertainties. Events such as extreme weather, unplanned or extended operational shut-downs and other disruptions could impact actual results beyond these estimates. Our unit costs are calculated based on production guidance volumes and variances from estimated production ranges will impact unit costs. Our disclosed guidance ranges for capital expenditures do not include post-sanction capital expenditures for the unsanctioned near-term growth projects, noted above. Our disclosed production guidance ranges also do not include the production associated with these unsanctioned projects. Guidance will be updated at the time a sanction decision is made.

We remain highly focused on managing our controllable operating expenditures. Our underlying key mining drivers such as strip ratios and haul distances remain relatively stable. Inflation on key input costs, including the cost of certain key supplies and mining equipment, labour and contractors, and changing diesel prices, are included in our 2025 annual capital expenditure, capitalized stripping and unit cost guidance. Our unit cost guidance for 2025 reflects actions taken across our operations to reduce costs, embedding our management operating system across our operations to improve consistency and efficiency.

As a result of structural cost reductions across our business, we expect our 2025 general and administration and research and innovation costs to decrease by approximately 15% and 35%, respectively, compared to 2024. This excludes investment in the implementation of a new enterprise resource planning (ERP) system across the company, which we expect to commence in 2025. This will be a multi-year program and capital costs associated with this investment for the first year are included in our 2025 guidance, outlined below. Certain costs associated with the ERP implementation will be expensed.

Based on our current elevated cash and cash equivalents balance resulting from the receipt of proceeds from the sale of the steelmaking coal business, we expect to have higher investment interest income for the foreseeable future.

Production Guidance

The table below shows Teck’s share of unaudited production of our principal products in 2024 and our guidance for 2025 and the next three years.

(Units in 000’s of tonnes)	2024	2025	2026	2027	2028
	Actual	Guidance	Guidance	Guidance	Guidance
Principal products
Copper
Quebrada Blanca	207.8	230 – 270	280 – 310	280 – 310	270 – 300
Highland Valley Copper	102.4	135 – 150	130 – 150	120 – 140	70 – 90
Antamina (22.5%)	96.1	80 – 90	95 – 105	85 – 95	80 – 90
Carmen de Andacollo	39.7	45 – 55	45 – 55	45 – 55	35 – 45
	446.0	490 – 565	550 – 620	530 – 600	455 – 525
Zinc
Red Dog	555.6	430 – 470	410 – 460	365 – 400	290 – 320
Antamina (22.5%)	60.3	95 – 105	55 – 65	35 – 45	45 – 55
	615.9	525 – 575	465 – 525	400 – 445	335 – 375
Refined zinc
Trail Operations	256.0	190 – 230	260 – 300	260 – 300	260 – 300
Other products
Lead
Red Dog	109.1	85 – 105	70 – 90	60 – 80	50 – 65
Molybdenum
Quebrada Blanca	0.6	3.0 – 4.5	6.4 – 7.6	7.0 – 8.0	6.0 – 7.0
Highland Valley Copper	0.9	1.6 – 2.1	2.3 – 2.8	2.7 – 3.2	1.8 – 2.4
Antamina (22.5%)	1.8	0.5 – 0.8	0.7 – 1.0	0.9 – 1.2	0.4 – 0.6
	3.3	5.1 – 7.4	9.4 – 11.4	10.6 – 12.4	8.2 – 10.0

Sales Guidance

The table below shows our sales guidance for the first quarter of 2025 for zinc in concentrate sales at Red Dog.

	Q1 2024	Q1 2025
	Actual	Guidance
Zinc (000’s tonnes)1
Red Dog	85	75 – 90

Note:

1. Metal contained in concentrate.

Unit Cost Guidance

	2024	2025
	Guidance	Guidance
Copper1
Total cash unit costs4 (US$/lb)	2.30 – 2.50	2.05 – 2.35
Net cash unit costs3 4 (US$/lb)	1.90 – 2.30	1.65 – 1.95
Zinc2
Total cash unit costs4 (US$/lb)	0.65 – 0.75	0.65 – 0.75
Net cash unit costs3 4 (US$/lb)	0.45 – 0.55	0.45 – 0.55

Notes:

1. Copper unit costs are reported in U.S. dollars per payable pound of metal contained in concentrate. Copper net cash unit costs include adjusted cash cost of sales and smelter processing charges, less cash margins for by-products including co-products. Guidance for 2025 assumes a zinc price of US$1.25 per pound, a molybdenum price of US$20 per pound, a silver price of US$30 per ounce, a gold price of US$2,400 per ounce, a Canadian/U.S. dollar exchange rate of $1.40 and a Chilean Peso/U.S. dollar exchange rate of 950.
2. Zinc unit costs are reported in U.S. dollars per payable pound of metal contained in concentrate. Zinc net cash unit costs are mine costs including adjusted cash cost of sales and smelter processing charges, less cash margins for by-products. Guidance for 2025 assumes a lead price of US$0.95 per pound, a silver price of US$30 per ounce and a Canadian/U.S. dollar exchange rate of $1.40. By-products include both by-products and co-products.
3. After co-product and by-product margins.
4. This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.

Copper

Total copper production in 2025 is expected to increase to between 490,000 and 565,000 tonnes compared to 446,000 tonnes produced in 2024.

Through Q4 2024, QB achieved design throughput rates, saw an improvement in recoveries, and coupled with an increase in grade, resulted in a record quarterly production. This resulted in total production in 2024 of 207,800 tonnes. Our 2025 annual QB production is expected to increase to between 230,000 to 270,000 tonnes, which is 10,000 tonnes lower than our previously disclosed guidance. We had scheduled planned maintenance in January 2025 for minor modifications; however, we extended the scheduled shutdown to conduct maintenance and reliability work, and complete additional tailings lifts as part of the operational ramp up. As a result, production was halted for approximately half of January and is expected to recommence this week. We have adjusted our guidance range to account for the additional downtime. As previously noted, although we expect an overall increase in ore grades in 2025 over 2024, we expect to mine in lower grade areas in the first quarter of 2025, in line with the scheduled mine plan. Our previously disclosed production guidance for 2026-2027 remains unchanged at 280,000 to 310,000 tonnes. Annual production for 2028 is expected to be between 270,000 to 300,000 tonnes, in line with expected grade variation in the mine plan. The QB debottlenecking project, outlined above, could lead to a further increase in throughput by 10-15%, with associated production increases dependent on ore feed grade and recoveries. The results of the QB debottlenecking project are not reflected in our disclosed production guidance ranges.

Highland Valley Copper production is expected to increase significantly in 2025 as mining continues in the Lornex pit, releasing ore which is both higher grade (more metal) and softer (higher mill throughput). These factors combined will more than offset expected lower recovery rates associated with the Lornex ore. Our expected recovery rates have been adjusted, and as a result, our 2025 annual production is expected to be between 135,000 and 150,000 tonnes. Our previously disclosed 2026 and 2027 annual production guidance is unchanged, and our 2028 annual production guidance is expected to be between 70,000 and 90,000 tonnes. Our disclosed production guidance does not include HVC MLE, which could be sanctioned in 2025. As a result, our 2028 annual production guidance reflects production at the end of mine life of HVC. If the project is sanctioned, production guidance would be updated at that time.

Our share (22.5%) of copper production at Antamina will remain relatively stable over the next few years and our previously disclosed annual production guidance for 2025 and 2027 is unchanged, with a slight increase to annual production guidance in 2026. Annual production guidance for 2028 is outlined in the table above.

Carmen de Andacollo continues to operate in extreme drought conditions. In 2024, risk mitigation plans to increase water availability through increased well field capacity were implemented, enabling mill throughput rates consistent with our mine plan through the second half of 2024. However, ongoing drought conditions remain a risk to production, which is reflected in our annual production guidance for 2025 to 2028.

Our 2025 copper net cash unit costs¹, including QB, are expected to be between US$1.65–$1.95 per pound, a significant reduction from our 2024 net cash unit cost guidance of US$1.90–$2.30 per pound, reflecting strong cost discipline across our operations. We expect a reduction in our operating expenses across our copper business unit compared to 2024 as QB operations stabilize and we embed our management operating system across our operations, with a focus on efficiency and cost optimization. The improvement in our 2025 copper net cash unit costs¹ compared to 2024 guidance reflects reduced operating costs across our business, an increase in copper production, lower copper treatment and refining charges and higher by-product credits, which are largely driven by an increase in molybdenum production at QB and Highland Valley Copper.

In 2025, QB net cash unit costs¹ are expected to be between US$1.80–$2.15 per pound, a significant reduction from our 2024 QB net cash unit cost¹ guidance of US$2.25–$2.55 per pound. The improvement in QB net cash unit costs¹ is primarily due to an increase in copper production and higher molybdenum by-product credits, but also reflects completion of ramp-up and the expected stabilization of QB operations through 2025.

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