Q4 2023 Teck Resources Ltd Earnings Call

Ladies and gentlemen, thank you for standing by welcome to Teck's fourth quarter 2023 earnings release Conference call.

Operator: Ladies and gentlemen, thank you for standing by. Welcome to Teck's 4th Quarter 2023 Earnings Release Conference Call. At this time, all participants are in listen-only mode.

At this time all participants are in listen only mode. Later, we will conduct a question and answer session to join the question queue. Please press Star then one on your Touchtone phone should anyone need assistance during the conference call. They may signal, an operator by pressing Star then zero on their telephone.

Operator: Later, we will conduct a question and answer session. To join the question queue, please press star, then 1 on your touchtone phone. Should anyone need assistance during the conference call, they may signal an operator by pressing star, then zero on their telephone. This conference call is being recorded on Thursday, February 22, 2024. I would now like to turn the conference call over to Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analysis. Go ahead. Thanks, Ariel.

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, Darryl and good morning, everyone.

Fraser Phillips: 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.

Fraser Phillips: Thank you for joining us for Teck's fourth quarter 2023 conference call.

Fraser Phillips: Please note today's call contains forward looking statements various risks and uncertainties may cause actual results to vary.

Fraser Phillips: It 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.

Fraser Phillips: 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 highlights from our fourth quarter and full year results. Crystal Prestia, our CFO, will follow with additional color on the quarter. Jonathan will then conclude today's session with a brief update on our key priorities and crop growth strategy, which will be followed by a Q&A session. With that, I will turn the call over to Jonathan.

Fraser Phillips: The Asians and reconciliations regarding these measures can be found in our MD&A. The latest press release on our website.

Fraser Phillips: Does embrace our CEO will begin today's call with highlights from our fourth quarter and full year results first the restaurant I have our CFO for additional color on the quarter.

CEO: I will then conclude today's session with an update on our key priorities and copper 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 four, we had a strong fourth quarter performance across our business. We are advancing the ramp-up of our QB operations, resulting in Teck's highest ever quarterly copper production. The adjusted EBITDA of $1.7 billion in Q4 and $6.4 billion for the year reflects robust prices for steel-making coal on copper, as well as high-end steel-making coal service volumes. Over the course of the year, strong profitability allowed us to return a total of $765 million to shareholders by paying $515 million in dividends and completing $250 million in share buybacks, while continuing to strengthen our balance sheet through the repayment of US $294 million at the QV2 project finance facility. In addition, the Board has approved the payment of our quarterly-based dividend of $0.125 per share on March 28th, and, following the receipt of US $1.3 billion This extends our track record of strong cash returns to shareholders with nearly $4 billion in returns over the last five years. Now, turning to our 2023 highlights on slide 5.

Jonathan: Thank you Fraser and good morning, everyone.

Jonathan: And on slide four we had a strong fourth quarter performance across our business.

Jonathan: The ramp up of our QBR horizon, resulting in Texas highest ever Unfortunately called the production.

Jonathan: Adjusted EBITDAR of $1 7 billion in Q4, and $6 $4 billion for the year reflects robust prices for steelmaking coal and copper.

Jonathan: Well, if I hadn't steelmaking coal volumes.

Jonathan: Over the course of the year strong profitability, allowing us to return a total of $765 million to shareholders by paying $515 million in dividends.

$250 million in share buybacks.

Jonathan: To strengthen our balance sheet further repayments if U S $294 million of QB two project finance facility.

Jonathan: In addition, the board has approved the payment of our quarterly base dividend of $12.05 per share on March 28.

Jonathan: Hello, endorsing <unk>, one 3 billion in proceeds on closing of minority stake in our steelmaking coal business to Nippon steel in January.

Jonathan: Right up to a $500 million share buyback.

Jonathan: We extended our track record of strong cash returns to shareholders with nearly $1 billion for changes through the last five years.

Jonathan: Now turning to our 2023 highlights on slide five.

Jonathan Price: 2023 was a transformational year for Teck as we continue to advance each of the four pillars of our value creation strategy. In addition to the strong EBITDA we delivered, we reported higher copper production and sales compared with 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 co-op business, we were pleased to announce the closing of the sale of a minority interest in EVR to Nippon Steel and Tosco on January 3rd.

Jonathan: 2023, it was a transformational year for Chegg as we continue to advance each of the four pillars about value creation strategy.

Jonathan: In addition to the strong EBITDA, we'd 11, we reported the highest copper production and sales in the previous year driven by the addition of QB operations.

Jonathan: Also produced $23 7 million tonnes of steel, making coal above guidance and higher than the previous year.

Jonathan: As we progressed in wholesale in the steelmaking coal business. We were pleased to announce the closing of the sale of a minority interest in <unk> and Nippon steel and Posco on January two.

Jonathan Price: We progressed the ramp-up of our QB operations and advanced the path to value for our industry-leading copper growth pipeline through joint partnerships with San Nicolas and Durage Copper Nickel and the receipt of regulatory approval for Zafran. As mentioned earlier, we returned significant cash to shareholders in 2023, paying $550 million in dividends, as well as completing the $250 million share buyback, acting opportunistically to utilise available free cash. Importantly, we have maintained a strong financial position. $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. For example, our reported high potential incident frequency for the full year 2023 remained low at a rate of 0.14.

Jonathan: We progressed the ramp up of about UV operations.

Jonathan: And follows the path of value for our industry, leading public around the pipeline.

Jonathan: Nicolas do range call it stable as aerospace the regulatory approvals is that for now.

Jonathan: As mentioned earlier, we returned significant cash to shareholders in 2023.

Jonathan: $550 million of dividends as well as completing the $250 million share buybacks.

Jonathan: Opportunistically to utilize available free cash flow.

Jonathan: Importantly, we have maintained a strong financial position with $7.9 billion of liquidity, including $2 $5 billion in cash as at February 21st.

Jonathan: We continue destroying the sustainability leadership and make steady progress against our sustainability goals.

Jonathan: Our reported high potential incidents frequency for the full year 2023 remains low at a rate of 0.1 pool.

Jonathan Price: 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 the Copper Mark or the Zinc Mark, and we've been named to the S&P Dow Jones Sustainability Index for the 14th consecutive year.

Jonathan: We've made a significant move and modernizing our governance structure by introducing the sunset clause for the dual class share structure.

Jonathan: We are proud that all 10 operated base metals operations have been awarded the Kokomo zinc mall and we'd be named to the S&P Dow Jones sustainability index for the 14th consecutive year.

Jonathan: So turning to QB on slide six.

Jonathan Price: We remain focused on achieving reliable and consistent operation to 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 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 will be substantially complete, and commissioning is currently well underway. All in-water works at the port have been successfully concluded, materially de-risking our remaining construction.

Jonathan: We remain focused on achieving them reliable and consistent operations QB. However.

Jonathan: However, production was lower than planned in the fourth quarter.

Jonathan: We're seeing them ramp up activities continued along with planned maintenance downtime through the first part was that.

Jonathan: Multiple periods of operating at or above design throughput capacity.

Jonathan: For 2024, we expect to see progressively stronger production from QB and expect full year copper in concentrate production to be between 230 and 275000 tons.

Jonathan: On the construction site by the end of 2023, the molybdenum plant is substantially complete.

Jonathan: Michigan currently well underway.

Jonathan: All important works at the polls have been successfully concluded materially de risking our remaining construction.

Jonathan Price: 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 Molly plant is expected to be completed by the end of the second quarter. As we look ahead, our QB2 project capital guidance of US$8.6 to US$8.8 billion remains in place. Our guidance for QB net cash costs is US $1.95 to $2.25 per pound in 2020. QB unit costs are expected to remain elevated this year, particularly in the first half.

Jonathan: 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 Marlin bar is expected to be completed by the end of the second quarter.

Jonathan: Looking ahead, our tubing to project capital guidance of U S. Eight six to 8.8 billion remains in place.

Jonathan: Our guidance for Q B net cash costs is U S 195 to $2 85, a pound in 2020.

Jonathan: Do you mean unit costs are expected to remain elevated this year, particularly in the first half.

Crystal Prestia: And this is driven by the cost of alternative logistics. We will provide additional unit cost guidance when QB achieves steady-state operational performance. And I will now hand it over to Crystal for additional color on them. Thanks, Jonathan.

Jonathan: And this is driven by the cost of alternative logistics.

Jonathan: No molybdenum production in the first quarter as the policies being commission continued ramp up and inflationary pressures, including increased Chilean energy costs.

Jonathan: We will provide additional unit cost guidance with QB achieves steady state operational performance.

Jonathan: I'll now hand, it over to crystal for additional color on the quarter.

Crystal Prestia: Good morning, everyone joining us today on the call. I'm going to start with the key drivers for our financial performance on slide 2. 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-ups continue. 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 costs 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.

Crystal: Thanks, Jonathan and good morning, everyone joining us today on the call.

Crystal: Let's start with the key drivers for our financial performance on slide eight.

Crystal: 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 that can be as production ramp up continues.

Crystal: We continue to experience inflationary pressures and the coffee supplies, including bi and tires.

Crystal: Labor and contractors as well as higher energy cost in Chile, and smoking diesel prices.

Crystal: These inflationary pressures impacting our unit cost from 'twenty to 'twenty, three and we expect this to continue into 2020 four.

Crystal: As such we have reflected inflation in our sustaining capital expenditure and are all your unit cost guidance ranges for 2020 or which are unchanged.

Crystal Prestia: 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, starting with Copper on slide 9. We achieved record copper production in the fourth quarter, which was 58% higher than last year.

Crystal: Our underlying binding drivers remain relatively stable and we continue to be highly focused on managing our controllable operating expenditures.

Crystal: Our 2024 annual guidance that we disclosed in January it's unchanged across our business.

Crystal: Now I'll turn to each of our business units in more detail and starting with copper on slide nine.

Crystal: We achieved record copper production in the fourth quarter, which was 58% higher than last year.

Crystal Prestia: This increase was driven by the ramp-up of QB operations, adding 64,300 tons of copper in concentrate production, higher production from Highland Valley Copper as a result of increased mill throughput, and higher production from Antonina due to higher grade. 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.

Crystal: This increase was driven by a ramp up can be operations, adding 4300 tonnes of copper in concentrate production.

Crystal: Gold production from Highland Valley copper as a result of increased mill throughput and higher production from asked me not to use a higher grades.

Crystal: Cost of sales is higher year over year, primarily due to the inclusion of the operations every year with costs elevated production ramp up continued in the fourth quarter.

Crystal: As a result gross profit before depreciation and amortization decreased compared to the prior year.

Crystal Prestia: On the sustainability front, we were pleased to announce that our QB and Carmen de Andepueo operations were awarded the copper mark in recognition of their environmentally and socially responsible operating practices, joining Highland Valley, which was awarded the copper mark back in March of 2020. Looking ahead, copper production is expected to significantly increase in 2024 to between 465,000 and 540,000 tons, as we expect increased production at QB and at Highland Valley Copper. Topper 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 face ongoing inflationary impacts on the cost of certain key supplies, including mining equipment, tires, labor, and contracts. Moving now to our Think 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.

Crystal: On the sustainability front, we are pleased to announce that our Q V and crime and Dan Quayle operations, well, where in the copper market in recognition of their environmentally and socially responsible operating practices, joining Highland Valley, which was awarded the coffee Mark back in March of 'twenty two.

Crystal: Looking ahead all of them.

Crystal: Production is expected to significantly increase in 2024 to between 465000 to 540000 tons.

Crystal: We expect increased production at QB and at Highland Valley copper.

Crystal: Our net cash unit costs are expected to be higher than 2023, as we incorporate QD call.

Crystal: Which are expected to be elevated in 2024, particularly in the first half of the year as ramp up continues.

Crystal: We also face the ongoing inflationary impact on the cost of certain key suppliers, including mining equipment tires labor and contractors.

Crystal: Moving now so I think business on slide 10.

Crystal: Despite lower year over year thing prices profitability in our zinc business unit was higher in the fourth quarter compared to a year ago.

Crystal Prestia: 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 grade. We also saw improved results from our trail operations as they returned to full production rates and benefited from higher contracted zinc premiums. These increases were largely offset by an 18% decrease in realized bank prices and higher operating costs at our Red Dog operations, primarily due to higher energy costs.

Crystal: Red dog zinc production increased by almost 30% and life production increased by 41% from a year ago, both of which were driven by increased mill throughput and improved grades.

Crystal: We also saw improved results from our trail operations as it returned to full production rates and benefited from higher contracted think premiums.

Crystal: 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.

Crystal Prestia: Increased operating costs at our trail operations and at Red Dog were more than offset by substantially lower loyalty costs at Red Dog. We were pleased to announce that Red Dog was awarded the Zinc Mark in recognition of its strong environmental and social performance, continuing to demonstrate our sustainability leadership. As we look forward, Red Dog Banking Concentrate sales are expected to be between 70,000 and 85,000 tons in the first quarter, reflecting normal seasonality of sales. Total zinc in concentrate production is expected to be between 565,000 and 630,000 tons in 2024. Over the next three years, production is expected to decrease due to declining grades at residence.

Crystal: Increased operating costs at our trail operations at Red dog were more than offset.

Crystal: Actually lower royalty costs at Red dog.

Crystal: We were pleased to announce that Red dog wasn't worth it to take part in recognition of his strong environmental and social performance continuing to demonstrate our sustainability leadership.

Crystal: As we look forward right. So I was thinking concentrate sales are expected to be between 70080 5000 tons in the first quarter, reflecting normal seasonality.

Crystal: Total zinc and concentrate production is expected to be between 565000 630000 tons in 2024.

Crystal: Over the last three years production is expected to decrease due to declining grades out of that.

Crystal: Refined zinc production at trail is expected to increase in 2024 as a result of improved concentrate availability.

Crystal Prestia: Refined zinc production at Trail is expected to increase in 2024 as a result of improved concentrate availability. The Kitsap boiler replacement will impact our lead circuit in the second quarter of 2024, but it's expected to have minimal impact on our zinc circuit. I think that cash unit costs in 2024 are expected to be higher than 2023 due to the ongoing inflationary impacts on the cost of certain key supplies, as noted. Turning now to Steel Making 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 sale volume and partially offset by lower sale making coal prices.

Crystal: The kids that boiler replacement will how well impact or less circuit in the second quarter of 'twenty 'twenty four but it's expected to have minimal impact on things like that.

Crystal: I think that cash unit cost in 'twenty 'twenty four are expected to be higher than 2023 due to the ongoing inflationary impacts on cost incurred certain key supply Oh, let's see let's see.

Crystal: Turning now to steel, making coal on slide 11.

Crystal: Gross profit before depreciation and amortization increased to one 5 billion compared to just over $1 billion a year ago, primarily due to higher sales volume and partially offset by lower steelmaking coal prices.

Crystal Prestia: While our realized prices in the quarter were 3% lower than the strong fourth quarter prices 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 tons in the quarter. Fourth quarter sales volumes of 6.1 million tonnes were driven by strong production rates and supported by logistics performance, with the fourth quarter of 2022 impacted by a two-month outage at our LPU operations and extreme weather conditions. Adjusted site cash cost of sales per ton of $100 was higher than the last year due to lower capitalized stripping at Elphiw when compared to the fourth quarter of 2020.

Crystal: 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.

Crystal: Overall plant reliability and performance was strong in the quarter supported by improved parts availability at all sites are leading to production of $6 4 million tonnes in a quarter.

Crystal: Fourth quarter sales volumes of $6 1 million tonnes were driven by strong production rates and supported by logistics performance with the fourth quarter of 2022 impacted by a two month outage at our <unk> operation and extreme weather conditions.

Crystal: Adjusted site cost cost of sales per ton of $100 is higher than last year due to lower capitalized stripping it out for you when compared to the fourth quarter of 2022.

Crystal: We were pleased to announce an agreement a shipping company ohlendorf carriers to use when propulsion technology intended to reduce C. O two emissions in shipping vessels and reduce scope three emissions in our steelmaking coal supply chain consistent with our focus on sustainability.

Crystal Prestia: We were pleased to announce an agreement with shipping company Ohlendorf Carriers to use wind propulsion technology intended to reduce CO2 emissions in shipping vessels and reduce ghost re-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 to 6.3 million tons in the first quarter. Production is expected to be between 24 and 26 million tons 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 costs to sale per ton 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.

Crystal: As we look at the year ahead steelmaking coal sales are expected to be between five nine to $6 3 million tons in the first quarter.

Crystal: Production is expected to be between 24, and 26 million tons in 2024 and to remain at these levels throughout 2025 to 2027.

Crystal: Do you expect the ongoing inflationary cost impacts on certain key supplies to persist into 'twenty, 'twenty, four which will impact adjusted say cash cost of sales per ton and is reflected in our got it.

Crystal: Turning to slide 12, and our capital allocation framework.

Crystal: Overall, our priority is to have a disciplined approach to the deployment of capital guided by our capital allocation framework.

Crystal Prestia: 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 QBQ development capital as the project nears completion. We will see a slight increase in sustaining capital as we complete the Kizbet boiler repairs that trail and reach peak capital spending for the LFU administration and maintenance complex project in our steelmaking global business. Capitalized dripping costs in 2024 are expected to decrease from the peak in 2022.

Crystal: Aim to balance our growth with cash returns to shareholders, while maintaining a strong balance sheet through the cycle.

Crystal: And I believe we can strike the right level of growth and returns to shareholders by consistently following this framework.

Crystal: We expect a meaningful decrease in our capital expenditures in 2024 with a reduction in committed growth capital as outlined on slide 13.

Crystal: We expect a reduction in total capital expenditures of approximately $1 2 billion in 2024.

Crystal: See a significant step down in Q2 development capital as the project nears completion.

Crystal: We will see a slight increase in sustaining capital as we complete the kids that boiler repairs that trail and reached peak capital spending for the adults you administration and maintenance complex project in our steelmaking coal business.

Crystal: Capitalized stripping costs in 2024 are expected to decrease from the peak in 2023.

Crystal: In 2024, Rote capital, excluding QB, two will be prioritized on copper growth projects, particularly for H B C mine life extension, South Nicholas and off at all.

Crystal Prestia: In 2024, growth capital, excluding QB2, will be prioritized on copper growth projects, particularly for HBC MyLife Extension, San Nicolas, and Zafrano. 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 as we'll compete for capital in line with our capital allocation. Turning now to our strong balance sheet, where we share all the 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 a quarterly base dividend of $0.125 per share, payable on March 28.

Crystal: That'd be a previously disclosed we do not expect to make a sanctioned decision on any growth projects in 2024, and we are focused on advancing these near term projects for possible sanctioning in 2025.

Crystal: Both projects are required to deliver an attractive risk adjusted return as we all compete for capital in line with our capital allocation framework.

Crystal: Turning now to our strong balance sheet and shareholder returns on slide 14.

Crystal: As Jonathan mentioned earlier, we are in a strong financial position with $7 9 billion in liquidity, including $2 5 billion in cash.

Crystal: We ended the year with it that debt to adjusted EBITDA ratio of one one times and we remain focused on maintaining our investment grade credit metrics.

Crystal: 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.

Crystal: The board has approved a further cash returns to shareholders this quarter.

Crystal: Moving to quarterly base dividend up 12, and how fast per share payable on March 28.

Crystal Prestia: And after receiving cash proceeds of U.S. $1.3 billion from the closing of the minority sale of our steelmaking coal business to NSC, the board 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 our steelmaking coal business, as outlined on slide 15. In total, we are expecting to receive U.S. $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, US $1.3 billion was... The funds were received from NSC in early January, with up to $500 million to be returned to shareholders via share buyback.

Crystal: And after receiving cash proceeds of USD, one 3 billion until the closing of the minority sale, our steelmaking coal business to NSE.

Crystal: Word has approved has authorized a share buyback of up to $500 million.

Crystal: Our capital allocation framework will inform how the board will consider the proceeds from the sale of the steelmaking coal business.

Crystal: Outlined on slide 15.

Crystal: In total we are expecting to receive U S. $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.

Crystal: As we've already noted U S. $1 3 billion was received from NFC in early January without just 500 million to be returned to shareholders via share buyback.

Crystal: 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.

Crystal Prestia: With the remaining proceeds to be received, we will assess opportunities to reduce our growth debt and maintain or improve our credit metrics through the cycle, ensuring that we do so 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 $1.2 billion Canadian at the end of February of this year, and we will pay transaction-related taxes of approximately $750 million US 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 NSF.

Crystal: We will also retain additional cash on the balance sheet to fund our near term copper growth opportunities and generate strong returns.

Crystal: We will pay a cash income tax payments in respect of the 2022 'twenty three fiscal years.

Crystal: Which totaled just over 1.2 billion Canadian at the end of February of this year.

Crystal: And we will pay transaction related taxes.

Crystal: 750 million U S. In early twenties 25.

Crystal: 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 reforms, which will be in addition to the $500 million buyback authorized by the board in relation to the asset proceeds.

Crystal: 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 Josh.

Crystal Prestia: 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... Thanks, Crystal.

Josh: Thanks, Crystal so turning to slide 17, and our key priorities in 2024.

Josh: As we mentioned from 'twenty to 'twenty three it was a transformational year for Chegg.

Josh: To ensure we can continue to demonstrate our focus on value creation, we have set up several key priorities for 2024.

Jonathan Price: So turning to slide 17 and our key priorities for 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 2022. 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 EBR and become the operator of the Elk Valley steelmaking coal mine.

Josh: We were very excited to announce an agreement for the sale of our steelmaking coal business in November.

Josh: Blanco would acquire a 77% controlling interest in E b, all and become the operator of the whole value steelmaking coal mines.

Josh: As we have discussed we closed the sale of a minority interest in email with Nippon steel and Posco when January food.

Josh: Completion of the sale of steelmaking coal business is one of our key priorities for this year and regulatory approvals all progressing.

Josh: 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.

Jonathan Price: As we have discussed, we closed the sale of a minority interest in EBR to Nippon Steel and Popco 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 capitalised 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.

Josh: So as I mentioned earlier, we are also driving safe operational performance across our portfolio and we have embedded no risks into our guidance to ensure we build confidence in our ability to deliver on our market commitments.

Josh: Like humans, we are pushing hard to complete construction of the board.

Josh: <unk> is the molybdenum plant in the first half of the year and to achieve consistent operating performance and design.

Josh: Absolutely.

Josh: At the same time, we are advancing the development projects and our industry, leading pipeline, which is foundational to our future growth.

Josh: We will advance by growth in a disciplined way by following our capital allocation framework to ensure that our capital decisions are value maximizing for shareholders.

Josh: Looking at slide 18, and our priorities with bonds. So a couple of drugs in a disciplined way.

Jonathan Price: As QBs, we are pushing hard to complete construction of the port and commission the Malibden 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 bank growth in a disciplined way by following our Capital Allocation Framework to ensure that our capital decisions maximize value for shareholders.

Josh: This starts with completion of construction and ramp up at QB and driving performance across all operations.

Josh: It continues the foundational technical with Roundup near term development projects completing feasibility studies advancing engineering work on progressing project execution planning permission.

Josh: We are adapting our approach to product development to leverage lessons learned.

Josh: With no project sanction decision until 2025, we are taking the opportunity to undertake a detailed review of the QB two project utilizing third party expertise.

Jonathan Price: Looking at slide 18 and our priority to advance our copper growth in a disciplined way, this starts with completion of construction and ramping up of QB and driving performance across all operations. And it continues with 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 sanctioned project 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 functioning 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 is significantly smaller in scope and less complex than QB2.

Josh: We can embed relevant learnings into future projects.

Josh: In the meantime, we are advancing the most important work in the near two to prepare for a potential sanctioning decisions in 2025.

Josh: This means that all our projects must compete for capital with the rest of the business to ensure that we drive strong financial returns.

Josh: It is important to note that each of our data center development options are significantly smaller in scope and less complex and QB two.

Josh: Ultimately, we will follow a disciplined capital allocation framework.

Josh: On generating strong returns for shareholders honest with drugs and maintaining a robust balance sheet in line with investment grade credit metrics.

Josh: Slide 19 summarizes our near term development options, which include Nicholas Zephyr at all to be up and expansion of the mine life extension is heightened bottle.

Josh: This represents a portfolio of both greenfield and brownfield projects and stable and well understood jurisdictions.

Josh: We continue to progress the optimal path to value for each of our offices.

Josh: <unk> work continues to advance each of these projects with a focus on Derisking project delivery.

Jonathan Price: 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 summarises our native development options, which include St Nicholas, Zafranau, Tubiapit expansion, and the My Life extension at Highland Valley. This represents a portfolio of both Greenfield and Brinefield projects in stable and well-understood jurisdictions. We continue to progress the optimal path of value for each of our assets. Significance 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 Nicolas, which was submitted on January 25th.

Josh: We submitted the environmental permit for the H B C mine life extension to the British Colombia regulator totaled 2023, and finalize the Mexican environmental impact assessment for San Nicolas which was submitted on January 25th.

Josh: And just last week, we received the modifications of the environmental impact assessment approval of the mine life extension at Dominion.

Josh: We're making progress across all on copper.

Josh: Copper growth options and settings check up to progress these projects at the right time to generate significant value.

Josh: Now moving to slide 20 Tech remains committed to sustainability leadership.

Josh: 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.

Josh: We are proud to have received copper and zinc markets old Tech operating base metal operations and industry, leading achievement, highlighting our commitment to sustainability and transparency in our operations very fine through third party insurers.

Jonathan Price: And just last week, we received the modification of environmental impact assessment approval for the mine life extension at Andameda. We're making progress across all our near-term copper growth options and setting technology up to progress these projects at the right time to generate significant value. So moving to July 20th, 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 Coppermark and Zincmark at all Teck-operated base metal operations, an industry-leading achievement highlighting our commitment to sustainability and transparency at our operations, verified through third-party assurance.

Josh: We've received a number of accolades to hear for all sustainability performance as previously mentioned moving being named as a constituent of the Dow Jones sustainability index.

Josh: I mean, we have modernized our governance structure through the introduction of the Sunset clause the dual class share structure.

Josh: We also remain committed to our long term goals of net zero scope, one and two emissions by 2050 that nature positive by 2030, and collaborating with our communities and indigenous peoples with a commitment to working to achieve free prior informed consent for a mining activities.

Jonathan Price: 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 shares. We also remain committed to our long-term goals of net zero scope 1 and 2 emissions by 2050, and net positive nature by 2030, and collaborating with our communities and indigenous peoples with an 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 a 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.

Josh: Of note we were one of the first mining companies to make a commitment to support the major positive future.

Josh: We have implemented initiatives, including Susan and reclaiming at least three hectare per every one handset, we affirm through mining, ensuring we protect and restore our landscapes and ecosystems for the benefit of all.

Josh: So in conclusion on slide 21.

Josh: He's committed to responsibly, creating long term value for our shareholders and stakeholders.

Josh: As an industry, leading base metals producer with a strategy centered on cobo growth, we already unique position to deliver significant value.

Josh: We have current production from our premium portfolio of long life high quality assets stable well understood jurisdictions.

Josh: Focused on execution driving excellence in performance across our operations and project delivery to ensure that we consistently deliver against our marketing commitments.

Josh: We have a major initiative cobo growth through the ramp up of our flagship operation QB in Chile at.

Jonathan Price: So in conclusion of slide 21... Teck is committed to responsibly creating long-term value for its shareholders and stakeholders. As an industry-leading base metals producer with a strategy centering 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. 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.

Josh: At the same time, we seek to unlock significant value upside potential from our industry, leading copper growth portfolio.

Josh: Importantly, we will pursue and it just seems like following our capital allocation framework balancing growth with returns to shareholders and maintaining a strong balance sheet through the cycle.

Josh: Sustainability is core to who we are our sustainability leadership position creates a competitive advantage.

Josh: Strategy will ensure we will continue to responsibly generate significant value for shareholders and all stakeholders.

Speaker Change: With that thank you and that concludes our presentation for today operator, please open the line for questions.

Jonathan Price: We have a major near-term copper growth opportunity through the ramp-up of our flagship operations, QV and TRE. At the same time, we seek to unlock the significant value upside potential from our industry-leading copper growth portfolio. Importantly, we will pursue that 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. Sustainability is core to who we are. Our sustainability leadership position keeps us at a competitive advantage.

Speaker Change: Thank you.

Speaker Change: To join the question queue. Please press Star then one on your Touchtone telephone you'll hear a tone acknowledging your request we ask that you. Please limit yourself to one question and one follow up if you are using a speakerphone. Please ensure you lift the handset before pressing any keys, if you wish to remove yourself.

Speaker Change: From the question queue, you May Press Star then two.

Operator: This strategy will ensure that 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. Thanks. To join the question queue, please press star then 1 on your touchtone telephone.

Scotiabank: The first question comes from restaurants out of Scotiabank. Please go ahead.

Restaurants: Hi, good morning, with the quarter now more than half over Jonathan I'm wondering if you can give us an update on the on the first quarter operating performance at QB.

Restaurants: Specifically, the the mill to plant or are we starting to see more consistent throughput recoveries.

Operator: You will hear a tone acknowledging your request. We ask that you please limit yourself to one question and one follow-up. If you are using a speakerphone, please ensure you lift the handset before pressing any key.

Speaker Change: Et cetera can you give us an update.

Jonathan: Yes, I'm sorry.

Speaker Change: As I mentioned.

Jonathan: Working through the ramp up phase for QB them right now.

Operator: If you wish to remove yourself from the question queue, you may press star then 2. The first question comes from Orest Wowkodaw of Scotiabank. Please go ahead. Hi, good morning.

Speaker Change: In line with our expectations, we expect of course to progressively increase our copper production throughout the year to meet that guidance of $2 30 to $2 75.

Jonathan Price: 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, etc. Can you give us an update? Yeah, thanks, Orest. You know, as I mentioned, we're in the ramp-up phase for Quby 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. I'll hand over to Shahzad Barmal, our SVP of base metals, who's responsible for the operations there, just to give you a little more color. Thanks, Orest.

Speaker Change: And tons that we've previously communicated and we're on track to do that but I'll hand over to tissues that are involved in all of our S. E. T. As base metals, who is responsible for the operations. There just to give you a little more color.

Speaker Change: Thanks, a lot.

Speaker Change: We have worked through most of the issues that we had mentioned previously with respect to the conveyors and the bumps.

Speaker Change: That'd be had mentioned previously and.

Speaker Change: And we are currently operating in a culture design throughput rates.

Speaker Change: We often.

Speaker Change: On certain days limited by some conveyor issues on two conveyors at the front end.

Speaker Change: Part of the plant near the primary crushers and we are working through those issues and expect to have those resolved in the next month or so and get back to above design rates of RF design rates on.

Speaker Change: The recovery side again in January and friends in February so far we are closed to design great to hear a little bit below.

Shahzad Barmal: We have worked through most of the issues that we mentioned previously with respect to the conveyors and the pumps that we mentioned previously, and we are currently operating at close to design throughput rates. We are often limited on certain days 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 resolved 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, we are a little bit below, and we are 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 desired rate. Thanks, Shehzad.

Speaker Change: And we are actively working through this as you bring more stability to the front end of the plan. So the consistency that we have seen over the last month or so it has helped us improve our recoveries as we continue to.

Speaker Change: We worked with them to get to our design rates.

Speaker Change: Thanks, guys I just have a follow up.

Speaker Change: It's the P. I ended up basically don't really.

Speaker Change: Is the plan to basically have to be 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.

Speaker Change: Okay. I mean I think this is you know the ramp up of the facilities as I said, we will progressively deliver increased copper production throughout the course of the year you know of course with assuming exactly what you were saying.

Speaker Change: That stability and operating at design throughput throughput rates, but.

Speaker Change: But you know this this is a ramp up process. It will it will take some time for lunch, but with confidence in the guidance that we put forward and expect that you know.

Jonathan Price: I just have a follow-up question. Is the plan to basically have QB operating at consistent throughput, recoveries, etc., call it sort of some, I guess, midway through the second quarter? Is that the way to think about it?

Speaker Change: The deliberate coffee to improve through the course of the year to deliver against that guidance.

Speaker Change: Our next question comes from Liam Fitzpatrick of Deutsche Bank. Please go ahead.

Jonathan Price: Okay, I mean, I think this is, you know, the ramp-up of the facility, as I said, we will progressively deliver increased copper production throughout the course of the year. And, of course, we're pursuing exactly what you're saying, you know, that stability and operating at design throughput rates. But you know, this is a ramp-up process, it will take some time for the land to recover, 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. Our next question comes from Liam Fitzpatrick of Deutsche. Please go ahead.

Liam Fitzpatrick: Hi, there.

Liam Fitzpatrick: They have dispatched from Deutsche Bank. So just the first one on the on.

Liam Fitzpatrick: On the balance sheet structure post E V O O I'm just wondering if you could give us more more of a steer in terms of what.

Liam Fitzpatrick: Balance sheet, you're targeting as we move into 2025 I know you've mentioned this one times.

Speaker Change: It does 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 at a small net cash position any kind of guidance on that would be helpful.

Jonathan Price: 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, more of a steer in terms of the sort of balance sheet you're targeting as we move into 2025. I know you've mentioned this one time, um, Ebbett, Dara, http://www.frankduplak.com.au Yeah, I'll hand you over to Crystal to talk about that. I mean, the one thing I would remind you is that that is, you know, the sort of long-term position where we're targeting here is we, you know, receive the proceeds and then how we allocate them in the subsequent years. But Crystal, if you want to provide some more context.

Speaker Change: Yeah, I'll I'll hand, you over to Crystal to talk to that I mean, the one thing I would remind you decide as you know that's sort of a long term position where were targeting here as we receive the proceeds in how we allocate them in the subsequent years Christmas ought to provide some more color. Yeah. Thank you I think it's consistent with what you know what we'd been Arctic.

Crystal: Leading our in relation to reducing our gross debt levels from where they are today I think there is an opportunity for us to do that.

Crystal: Across our dot stock when we think about that you obviously want to eat out in an economic way so in relation to some of the public knows me. How there's you know make whole premiums somebody wanted you Wanna be deliberate in how we think about that we are committed to that investment grade credit metrics as Jonathan said through the cycle mm 1.0 times not that too.

Crystal Prestia: Yeah, of course. Thank you. I think it's consistent with what we've been articulating in relation to reducing our growth debt levels from where they are today. I think there is an opportunity for us to do that. We'll look across our debt stack when we think about that. And we obviously want to do that in an economical way. So in relation to some of the public notes we have, there are, you know, whole premiums.

Crystal: And EBITA, we aren't necessarily focus on a on a certain.

Speaker Change: Leverage level, but rather really focused on that that ratio.

Speaker Change: Okay. Thank you and if I could ask one follow up.

Speaker Change: Just one on potential M&A versus organic opportunities and so you've clearly got a number of internal options that you think are very interesting that you're hoping to progress them.

Crystal Prestia: So we want to, we want to be deliberate in how we think about that. We are committed to investment grade credit metrics, as Jonathan said, through the cycle. 1.0 times that debt to adjusted EBITDA.

Speaker Change: In 2025.

Speaker Change: Is that enough to keep you occupied or are you also on the lookout for EM.

Speaker Change: Potential external opportunities.

Speaker Change: Yeah.

Crystal Prestia: We aren't necessarily focused on a, you know, set leverage level but rather really focused on that ratio. Okay, thank you. And if I could ask one follow-up. Just on, www.larryweaver.com. You're very interesting in that you're hoping to progress and in 2025. Is that enough to keep you occupied, or are you also on the lookout for Potential External Opportunities? Yeah, Liam, I mean, given, you know, what we have in the portfolio already, we're not sure what things to do. You know, as we've just discussed, we're very focused on the ramp-up stabilization and full production from QB. This year, we've got then a tranche of projects, which, you But there's a lot to be getting on with here.

Speaker Change: Given what we have in the portfolio already went offshore the things you can do you know as we've just discussed we're very focused on the the ramp up stabilization from production from <unk>.

Speaker Change: Yeah, we got that a tranche of projects, which should.

Speaker Change: It should be subject to do engineering economics, and everything ready for sanction in 2020 by including the H B C life extension, a sudden Nicholas in Sacramento.

Speaker Change: There will also be getting all the way there and as we've always said, we want the balance about investments being grossly we've been to the cap.

Speaker Change: Catheter with shell was so yeah, well continue to focus on those things that are entirely.

Speaker Change: Control and delivering that future growth, we've been talking to.

Speaker Change: Our next question comes from Timna Tanners of Wolfe Research. Please go ahead.

Speaker Change: Yeah.

Timna Beth Tanners: You're on mute Timna.

Timna Beth Tanners: Oh Nope I just didn't hear you hey, good morning, How's everyone doing.

Jonathan Price: And as we've always said, we want to balance that investment in growth with return of capital and shareholders. So, you know, we'll continue to focus on those things that are entirely, you know, within our control and delivering that future growth that we've been talking about. Our next question comes from Timna Tanners of Wolf Research. Please go ahead. We are on mute, Timna.

Timna Beth Tanners: Do you have a good sized business.

Timna Beth Tanners: We can't hear you get into them.

Timna Beth Tanners: Yeah.

Timna Beth Tanners: Yes.

Timna Beth Tanners: Okay.

Timna Beth Tanners: And so one has got a little bit more about the expansion projects and I know at one point you had a permit for further QB opportunities and just wanted to know the updated thinking there and then regarding sort of take us suddenly collapsed, but leadership in Mexico is looking into banning open pit mining.

Operator: Oh, nope; I just didn't hear you. Hey, good morning. How's everyone doing?

Operator: Very good. Thanks, Timna. Oh, we can't hear you again, Timna.

Tyler Mitchelson: Okay. I know at one point you had a permit for further QB opportunities and just wanted to know the updated thinking there. And then regarding Zacatecas San Nicolas, the leadership in Mexico is looking into banning open pit mining, and I just wondered how that affects that project or how you're looking. Yeah, so starting with, you know, QB and future expansions of that facility, we have an incredible plant 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 multi-generation 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 any further commitment to any significant capital expenditure at the site.

Timna Beth Tanners: And just wondering how that affects that project or if you know how you're looking at that.

Speaker Change: Yeah, so starting with QB and future expansions that facility you know the we have an incredible what is there is it is very very long life.

Speaker Change: He will enable future expansions of capacity for <unk>.

Speaker Change: And that's still something that we can run a multi generational assays 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 them through optimizing what.

Speaker Change: We already have before we make any shows a commitment to any significant capital expenditure.

Speaker Change: And besides a medium term you know very much expect us to continue to pursue large scale expansions about operation, but you know we bought we have a signed English soccer an island in the the life extension of H B C. We have a fairly a fairly full tosco, India in the immediate term.

Tyler Mitchelson: In the medium term, you know, very much expected to continue to pursue larger-scale expansions of that operation. But, you know, with what we have at St. Nicholas, Zafranal, and the life extension of HBC, we have a fairly full dance car in the immediate term, and we'll focus on that in terms of our major capital deployment. So, the asset optimization studies for the medium and long term at QB are ongoing. For your second question, just on 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 of Congress.

Speaker Change: I will focus on that in terms of all the major capital deployment, but assay optimization studies for the medium and long term can be our ongoing.

Speaker Change: For your second question just around some of the moving pieces, we've seen in Mexico of light are really as they relate to the constitution I'll hold you over to Tyler Mitchelson, Who's our senior Vice President called right.

Tyler Mitchelson: Yeah, we're closely monitoring and assessing the proposed changes to the Constitution. There are more than 20 proposed, obviously, the ones around open pit mining and water consumption are the key ones. We've been working with our fellow industry players as well as Chemomex, the Chamber of Mines in Mexico to really understand what the pathway forward is. Given where we are right now, it's four months to the main general election, the parliament actually closes on April 30th, so it's really too early to determine whether or not these will be approved in the time frame they're going to be approved, and as well as what the ultimate impacts will be You put it in the context of some of the largest mines in Mexico right now, and some of the most successful mining companies do use open-pit mining, so it's obviously a very significant impact, but we'll continue to monitor it through the next month. Thank you. I got my two in, so I'll pass them along.

Tyler Mitchelson: Timna, yes, we're closely monitoring and assessment and assessing the proposed changes to the constitution, there's more than 20.

Tyler Mitchelson: Proposed obviously the ones around open pit bodies of water consumption of the key ones.

Tyler Mitchelson: We've been working with our fellow industry players as well as kind of a mix.

Tyler Mitchelson: Chamber of mines in Mexico to really understand what is the pathway forward.

Tyler Mitchelson: Given where we are right now it's four months to the main general election Bartlett with RSV closes on April 30th So, it's really too early to determine whether or not these.

Tyler Mitchelson: <unk> will be approved in the timeframe there couldn't be approved and as well what the ultimate impact will be.

Tyler Mitchelson: As we go forward you put it in the context of some of the largest mines in Mexico, a breakdown some of the most successful companies to use open pit mining.

Tyler Mitchelson: So it's obviously, a very significant impact, but we're continuing to monitor it through the next one.

Tyler Mitchelson: Yes.

Speaker Change: Make ourselves. Thank you I got my too and so I'll pass it along thank you again.

Operator: Thank you again. Thanks, Timna. Our next question comes from Dalton Baretto of Canaccord Genuity. Please go ahead.

Speaker Change: Thanks Timna.

Speaker Change: Our next question comes from Dalton Barreto of Canaccord Genuity. Please go ahead.

Dalton Baretto: Thank you. Good morning, Jonathan and team. Jonathan, on the Glencore call, Gary was asked about synergies between Koya Huasi 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 and where QBME fits into all of that. You know, we, along with the other parties here, are doing a detailed technical evaluation of the potential synergies between QB and Koh-Lawati. We haven't quantified those yet.

Dalton Baretto: Thank you good morning, Jonathan a team.

Dalton Barreto: Jonathan on the Glencore call, Gary was asked about synergies between Washington, and QB two and in response, he talked about a number of work streams and you sort of alluded to billions in synergies and 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 you know maybe when we can see an update and where.

Speaker Change: B M. He fits into all of that thanks.

Speaker Change: Yeah. Thanks for the question.

Speaker Change: We are along with the other parties here in doing detailed technical evaluation of the potential synergies between Q V in Kona Hawaii.

Speaker Change: We haven't quantified those yet.

Jonathan Price: And, you know, those synergies could take a number of forms, all the way from being infrastructure-related to, you know, optimizing across, you know, two very significant school bodies in that area. It's complex, you know; it will take time, in particular because there are a large number of counterparties involved in this. But, you know, engagement is ongoing.

Speaker Change: Those synergies could take a number of forms you know all the way from being infrastructure related to optimizing across.

Speaker Change: <unk> got significant ore bodies in that area. You know it is complex and will take time in particular, because there's a large number of counterparties involved in this but you know engagement is ongoing we are working together.

Jonathan Price: We're working together to identify the opportunity here, and, you know, we'll update you in due course, you know, as we get closer to landing that technical evaluation. And, of course, you know, even when we get closer to agreeing terms with other parties.

Speaker Change: So identifying the opportunity, yes, and you know we will update in due course.

Speaker Change: We are as we get closer to landing the technical evaluation and of course, you know I've always said when we get closer to two agreeing to with other parties as I mentioned before the the focus for US right now is and must be on the right path to me too and then optimally.

Jonathan Price: 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. You know, the intersection with something like, you know, the QB mill expansion, as you referenced, as I said, we are looking at future asset optimisation opportunities, which include bottlenecking in the short term and could include project expansions in the medium term. And, of course, you know, 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 Kolowapi. But we're not at that point yet, Dalton.

Speaker Change: Optimizing the operation that we already have you know the intersection with something like that.

Speaker Change: The QB mill expansion as you referenced is as I said, we are looking at future athletes optimization opportunities, which include Debottlenecking in the short term and could include project, our expansions, India and medium shifts and of course, you know if there were to be any agreements or conversion of arrangement between the parties.

Speaker Change: And then that would have to factor in our future expansion opportunities on both sides that caused it to be to let them tell me laughing, but we're not at that point you had to open. Its you know there's a lot of work to be done on these things are complicated, but you know we committed to understanding the value potential Aaron's and working constructively and collaboratively with the other parties.

Jonathan Price: There's, you know, 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. Great, thank you.

Speaker Change: Great. Thank you and then maybe if I can ask one more just on the Glencore transaction on the core business can you just give us an update on where.

Jonathan Price: And then maybe if I can ask one more, just on the Glencore transaction and the coal business, can you give us an update on where you are in the regulatory approvals process and whether you've seen anything that gives you any concern at all? Our process is ongoing. We expect that we will receive the required approvals, being both the Investment Canada approvals and the antitrust approvals. Nothing gives us cause for concern, Dalton, because we're seeing these things just take time.

Speaker Change: Where you're at in the regulatory approval process and whether you've seen anything that gives you concern at all.

Speaker Change: I think so there's a lot of processes is continuing.

Speaker Change: We expect that we will receive the required approvals being bugs the investment Canada approvals on the antitrust approvals.

Speaker Change: Nothing that gives us cause for concern.

Speaker Change: Dawson that we're seeing you know these things just take time, we are working through that process and we still expect it to close no later than the third quarter of this year.

Jonathan Price: We're working through that process, and we still expect it to close no later than the third quarter of the year. Our next question comes from Carlos de Alba of Morgan Stanley. Please go ahead. Thank you very much. Good morning, everyone.

Speaker Change: Our next question comes from Carlos de Alba of Morgan Stanley. Please go ahead.

Speaker Change: Yeah. Thank you very much and good morning, everyone. So maybe I just follow up on that on the prior question.

Carlos de Alba: So maybe I just follow up on the prior question. Any more specific information, Jonathan, that you can provide on what approvals you have already received and which ones are still pending for closing the call transaction? So, I mean, one of the key ones here, of course, is the Investment Canada Act approval, and that remains outstanding with respect to the 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 will close no later than the third quarter. All right, thanks. And then on QB2 cost trends, I understand that you're going to provide further guidance once production is stabilized at a steady state.

Speaker Change: And any more specific color Jonathan.

Speaker Change: Can provide what approvals you have already received and which ones are still pending for closing the deal to close transactions.

Speaker Change: Doug I mean, as the you know that.

Speaker Change: One of the key ones here of course is the investment cataract approval and that remains outstanding with respect to the various antitrust approvals across a variety of jurisdictions. We've received some of those in some of those remain outstanding. So as I said I think things are progressing in the normal course, and we remain confident that this twice.

Speaker Change: No later than the third quarter.

Speaker Change: Alright, Thanks, and then on QB, two close friends and I understand that you're going to provide for their guidance and ones that production.

Speaker Change: Stabilized at a steady state, but how did you see at least from from.

Carlos de Alba: But how do you see, at least from now, how do you see the trends of the cost moving once you get to 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 and you could achieve a lower, more sustainable cost earlier than the third year of that period? Yeah, Karl, 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.

Speaker Change: The current curve.

Speaker Change: Currently how do you see the trends of the costs.

Speaker Change: Moving once you get the steady state.

Speaker Change: The cost guidance for the next three years, so you'd been wide and.

Speaker Change: Should we assume that you only specs do you expect to get to the lower end of that to your guidance.

Speaker Change: Three years.

Speaker Change: The auction are Hum got guidance guidance period or.

Speaker Change: Maybe that just concern about you know you could achieve a lower more sustainable cost earlier than that.

Speaker Change: The third year of that period.

Speaker Change: Yeah look I think there are a few things here that are clearly within our control, but that should see us improve the unit cost profile at QB and they are of course getting all running board running so we can.

Jonathan Price: 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 mains circuit running at full production.

Speaker Change: The move away from the temporary logistics arrangement and tested a permanent solution and of course, there's also getting the molybdenum plant up and running at full production given the the byproduct credits, we will get from that.

Speaker Change: Then there is getting the base to keep running at full production should 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 cost in the second half of the year to be better than in the first off of the year.

Jonathan Price: So we get that full dilution effect on costs. So all of those three things, as we progress, we'll see unit costs 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.

Speaker Change: For some factors that are less within our control.

Jonathan Price: The inflationary environment is one of the impacts that that could have on labor costs. And the other part of that is just energy costs in Chile, which we've signaled as being higher than previously. And, of course, we need to see how those things progress. So we've put out 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've just mentioned, which we will resolve through the course of this year. So we expect lower costs in the future. But, of course, we haven't got into those yet.

Speaker Change: Fisher environments is one of the impact that that could have on labor costs and at the other public bodies, just LNG cost in your language.

Speaker Change: You know signaled as being.

Speaker Change: As being higher than previously and of course, we need to see how those things progressed. So you know we do when we put out guidance for 2020 for that guidance reflects you know 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.

Speaker Change: So we expect a lower cost in future, but of course, we haven't gotten into those yet and we'll have a much clearer view all bought once operations are stabilized.

Jonathan Price: And we'll have a much clearer view of that once operations are stabilized. Our next question comes from Lawson Winder of Bank of America Securities. Please go ahead.

Speaker Change: 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 are Jonathan team on I wanted to ask about anthem Ina and then hopefully follow up on QB, two but on into <unk>. Given the tech is just one partner of several in the JV. What is the risk that tic Tac will have to make an allocation decision.

Lawson Winder: Thank you very much, operator, and thank you for the update today, Jonathan and team. I wanted to ask about Antimena and then hopefully follow up on QB2, but on Antimena, 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 timeline at Antimena in terms of an extension? I'll pass it over to Tisha to add to that one.

Lawson Winder: On their prior to 2025, and what is driving the timeline against them either in terms of an expansion decision or extension decisions.

Speaker Change: It's just that on that one thanks Watson so.

Tisha: Thanks Lawson. As you know, we did get the AMEI approval for the mine life extension from 2028 to 2036, and that is really the expansion of waste facilities and tailings facilities in the location that they are. So between now and then 2036, that mine life extension, all the 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 are looking at that right now. We are working on that. We're looking at permitting strategies for that, and it will be a few years before we'll have some definitive project definition on those. So at this point, we're focused on getting that to 2036 from 2028, which we were very happy to achieve the permit. For more information, go to www.fema.gov.

Speaker Change: As you would have read that we didn't get the EIA approval for the mine life extension from 2020 to 2036 and that is really the expansion of our leased facilities and tailings facilities and the locations that they are.

Speaker Change: So between now and then 2036 that mine life extension.

Speaker Change: On the permits are in place some capital associated with this that will be spent over the next thing to your social.

Speaker Change: Post 2036 extensions and.

Lawson Winder: And expansions.

Lawson Winder: All the parties that are looking at that right now they are working on that by looking at permitting strategies for that and that.

Lawson Winder: That will be a few years before we really have some definitive.

Lawson Winder: Definitive.

Lawson Winder: Our project definition on those so at this point, we are focused on getting back to 2036 from 2020 English we were very happy to achieve the permit.

Speaker Change: Okay. Yeah, that's great. Thanks, that's very clear and then with QB two.

Jonathan Price: Okay, yeah, that's great. Thanks. It's very clear.

Jonathan Price: And then with QB2, 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? I'm not necessarily, Lawson.

Speaker Change: And you did a very material increase in the copper resources at QB, two how does that influence their thinking on what the next expansion might be there.

Speaker Change: Does it suggest that it could be something much bigger than the prior QB and email expansion concept of a 50% increase thanks.

Speaker Change: Although not necessarily those Slovene don't seem to be the regionals that was always very very large and I was very very very large so it doesn't necessarily impact our short term thinking around how we would.

Jonathan Price: 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 it. You know, we'll be very focused on the capital intensity of the next expansion here, where we look to maximize, you know, unutilized capacity in examination, in pipelines, etc. And what that 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 at the forefront of mind for us. Our next question comes from Lucas Pipes of B. Reilly Security. Go ahead. Thank you very much, operator. Good morning, everyone.

Speaker Change: Probably would expand this will be very focused on the capital intensity of the next expansion here, where we looked at that maximize you know unutilized capacity.

Speaker Change: Salination and pipelines et cetera, and you know when it maintenance, which of course is we have far greater optionality in the long term, which is which is a fantastic position to be in but it doesn't really change that short term thinking and focus on capital intensity and returns would be at the front of mind for us.

Speaker Change: Our next question comes from Lucas pipes of B Riley Securities. Please go ahead.

Lucas N. Pipes: Thank you very much operator, good morning, everyone. My My first question is on on slide 13 of the deck, which breaks out the capex over the last couple of years and into 2024, and our sustaining capital and capitalized stripping in 'twenty three 'twenty four kind of.

Lucas N. Pipes: 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, to step up from 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?

Speaker Change: Great.

Speaker Change: Step up from from from Dallas.

Speaker Change: 2000, 22022 averages and trying to understand better what's what's going on here is that a catch up from from the pandemic are is there something cyclical are there unique projects that have elevated this temporarily just just trying to get a better sense off of or is it is it mostly inflation.

Jonathan Price: Are there unique projects that have elevated this temporarily just to get a better sense of, or is it mostly inflation? We would really appreciate a better sense of those drivers. Yeah, thanks, Lucas. I'll hand you to Chris a little bit.

Speaker Change: Really appreciate to get a better sense of of those drivers. Thank you.

Speaker Change: Yeah. Thanks to this all how do you do crystal alone.

Crystal Prestia: Thanks, Lucas. I think sort of the primary driver that I would focus on would be inflation. I think we did see from that sort of 2020 to, I guess, really now, a significant increase in the underlying costs that were driving our standing capital as well as our operating costs. So, I think that is a key piece.

Speaker Change: Yes, I think sort of primary driver that I would focus on the inflation I think there you can see from that sort of 2022 sort of I guess really now.

Speaker Change: Second increase in our in the underlying cost that we're driving are any capital of all of our operating costs. So I think that is a key piece in relation to capitalize stripping I would just say in our oldest asked me we're gonna be into a new mining area in 2023, and you saw those costs being elevated in in that year 'twenty.

Crystal Prestia: In relation to capitalist stripping, I would just say in our whole business, we were moving into new mining areas in 2023, and you saw those costs being elevated in that year, I guess, 22 and 23, 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 LCU administration and maintenance complex is a large project started up in 23, and the elevated cost in 2024 as we reach peak spending on that project. And then I'd say the last point about what's included in sustaining capital is, obviously, we now have QV sustaining capital included in our figures. So those are some of the bigger items, but I think inflation would probably be one of the largest drivers. And we can get you a bit more detail if you just raise your call. That would be that would be helpful.

Speaker Change: I guess I mean to you in 'twenty, three and and that's you know coming off in our in our guidance for 2024 and there are also a couple of contracts that are larger in the coal business.

Speaker Change: I'll tell you the administration and maintenance complex if a large project in started off in 'twenty three.

Speaker Change: Elevated costs in 'twenty 'twenty four as we reach peak spending on not on that project and then I'd say the last point in what's included and sustaining capital was eating out how Q D. Sustaining capital are included in our fingers. So those are some of the bigger bigger items, but I think inflation would be critical.

Speaker Change: Largest card.

Speaker Change: I don't think I can get that more.

Speaker Change: He felt like he gets pretty sure call after.

Speaker Change: Now that that would be that would be helpful. I'm.

Lucas N. Pipes: 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 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 27, the best base case, even with the spending? Thank you.

Speaker Change: On slide 24.

Speaker Change: You show the kind of copper production through 2027 and.

Speaker Change: Do you anticipate a plateau in 2025 and the decline after that mostly are really driven by Highland valley with the spending at Highland Valley today.

Speaker Change: Is there any potential for.

Speaker Change: A more sustained production level off of 2025 or is that really the outlook through 'twenty seven the best base case, even even with the spending taking place today. Thank you.

Jonathan Price: Yeah, I'd say not within that period, Lucas. This is how we see the current mine plan progressing, you know, the capital that we'll be putting to work is subject to returns, of course, for the life extension of HVC, we'll really see the production pick up in four years. But I wouldn't expect to see any material impact on the guidance that we put out here. Our next question comes from Bill Peterson of J.P. Morgan. Please go ahead.

Speaker Change: Yeah, I'd say not within that period Lucas. This is how we see the current mine plan.

Speaker Change: Dressing you know the capital that will be putting to work is subject to subject to returns of course for the life extension of H B C, where we will really see the production pick up in forward years.

Speaker Change: But I wouldn't expect to see any material impact on the on the guidance that we put out here.

Speaker Change: Our next question comes from Bill Peterson of J P. Morgan. Please go ahead.

Bill Peterson: Yeah, Hi, good morning, everyone and thanks for taking the questions you've discussed and just now actually again about the returns framework for the next stage of growth projects, including learning should you be too, but I guess on the other side I guess, how should we think about the demand and pricing environment necessary for tech the sanction growth project.

Bill Peterson: Hi, good morning, everyone. And thanks for taking the questions, you've discussed and just now actually, again, about the returns framework for the next stage of growth projects, including learning from QB2. But I guess, on the other side, I guess, how should we think about the demand and pricing environment necessary for tech to sanction growth projects, especially considering what is increasingly looking like a tightening supply environment? Yeah, thanks, Bill.

Speaker Change: Especially considering what is looking like.

Speaker Change: Creasing looking like a tightening supply environment.

Speaker Change: Yeah. Thanks, Bill I mean, yeah, we do see a tightening supply environment and we think you know even as we progress through this year and the outlook for copper pricing it could be very constructive.

Jonathan Price: I mean, yeah, we do see a tightening supply environment, and we think, you know, even as we progress through this year, the outlook for copper prices could be very constructive. You know, we've seen the shortness of concentrate and the impact that that has had on TCRCs.

Speaker Change: Seeing the shortlist of concentrate and the impact that that's had on T. C. All seasons, we expect at some point that the flow through into refined metal and that's a headline corporate pricing.

Jonathan Price: And, you know, we expect at some point that to flow through into refined metal and headline copper pricing. Of course, each of the projects will have its own unique economics based on capital, the operating costs, and the volumes associated with those mines. They will all need to compete for capital.

Speaker Change: You know of course, you know each of the projects that will have its own unique economics based on the capital and the operating costs and the volumes associated with those mines.

Speaker Change: They will all need you can pay for capital we will be very returns focused in terms of the decisions that.

Jonathan Price: We will be very return-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. Okay, thanks for that.

Speaker Change: We take here and of course, the copper price will be a key determinants of that.

Speaker Change: But as I said, we remain very confident in the copper price certainly in the medium term that even now in the short term based on the dynamics, we see playing out in the market.

Speaker Change: Okay. Thanks for that and you know I guess on met coal I guess, you know obviously, maybe only relevant for a few more quarters, but can you give us your thoughts on the outlook.

Bill Peterson: And, you know, I guess I'm not calling I guess, you know, obviously, maybe only relevant for a few more quarters, but can you give us your thoughts on the outlook for that segment and the latest developments you're seeing both on the supply and demand side globally? Yeah, I'll ask Ian Anderson, our Chief Commercial Officer, to close it. Thank you very much for the question, Bill. So, you know, I'd start just with where we are in terms of overall steel consumption and production during the course of the year. Global steel production was flat at about 1.85 billion tons, really representing about where it was last year, and we really saw that taper off at the end of the year as a result of Chinese production. It rapidly dropped, and, you know, we're not certain about that number. So that was one of the factors. At the same time, Indian crude steel production went up by about 11.8%, and that was offset by some small declines in the EU, Japan, and South Korean markets.

Speaker Change: That segment and latest developments, you're seeing both on the supply and demand side globally.

Speaker Change: Yeah, I'll ask Oh listen Dora two conditional talks about.

Dora: Thank you very much for the question Bill So let's 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 185 billion tonnes really representing about where it was last year and really saw that taper off at the end of the year as a result of Chinese production.

Dora: Rapidly dropped what else certain above that number so that was one of the factors at the same time 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 you look back over the course of the year high quality steelmaking coal price exceeded 290.

Ian Anderson: So, you know, overall, if you look back over the course of the year, the high-quality steel coal price exceeded $2.95 per ton. It really rose at the end of the year when we saw it up to about $3.15. And there were two factors that drove that.

Dora: Five per ton really rolling off at the end of the year, where we saw it up to about 315 and Theres two factors that drove that first of all a tightened supply mostly in Australia, and secondly, heightened demand from India and China, primarily so what we're seeing in terms of Australian supply is the key miners, including some of our peers there but.

Ian Anderson: First of all, a tightened supply, mostly in Australia, and secondly, heightened demand from India and China, primarily. So, you know, 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 of lower quality and not as good.

Dora: Adjusted their production guidance down in 'twenty 'twenty four Chinese production domestic production is of course going to be deeper than it has in the past and Russian calls, even though they're coming to fill the gap has been lower quality of enormous goods. So we've not really seen investments in terms of hard coking coal supply and we think that really promising.

Dora: As a future price increase.

Speaker Change: Thank you.

Dora: I will now hand, the call back over to Jonathan price for any closing remarks.

Ian Anderson: So we've not really seen investment in terms of hardcoking coal supply, and we think that really promises a future price. Thank you. I will now hand the call back over to Jonathan Price for any closing remarks. Yeah, thanks, operator. And thanks to everyone for joining us today. You know, as we talked about, we're, you know, very excited by the prospect here for 2024 and beyond. We're looking forward to the completion of the transaction with Glencore, and we look 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.

Jonathan Price: Yeah, Thanks, operator, and thanks to everyone for joining US today, you know as we talked about where you know very excited about the prospects there for 'twenty 'twenty four and beyond.

Jonathan Price: We're looking forward to the completion of the transaction with Glencore, we're looking forward to updating you're dead on on how we intend to allocate the proceeds including shareholder returns and we remain very focused on the ramp up in stability of QB and progressing and derisking the the future pipeline.

Jonathan Price: Projects that we have as always please reach out to Fred when they all say, even if you have any more detailed questions, but thank you all very much and have a good day.

Speaker Change: This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.

Speaker Change: [music].

Jonathan Price: 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. This concludes today's conference call. You may disconnect your lines.

Speaker Change: Yeah.

Speaker Change: [music].

Operator: Thank you for participating and have a pleasant day... Thanks for watching! www.globalonenessproject.org