Q4 2023 Teck Resources Limited Earnings Call

Operator: Thank you for standing by. Welcome. © The Bulletproof Executive 2013, Con. At this time, I'll part... , , , , , , , , , , , , , , Later we will conduct a question and answer, 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.

Welcome to Teck's fourth quarter 2023 earnings release conference call.

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Fraser Phillips: This conference call is being recorded on Thursday, February 22, 2021. I would now like to turn the conference call over to Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analysis. Please go ahead. Thanks, Ariel. Good morning, everyone.

This conference call is being recorded on Thursday February 22024, 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: 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.

Speaker Change: Thank you for joining frontier's fourth quarter 2023 conference call.

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

Michelle Kim: It does not assume any obligation to update any forward looking statements. Please refer to slide two of the the assumptions underlying our forward looking statements. In addition, we will reference various non-GAAP measures throughout this call explorations and reconciliations regarding these measures can be found in our MD&A.

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 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 strategies, which will be followed by a Q&A session. With that, I will turn the call over to Jonathan. Thank you, Greta, and good morning, everyone.

Speaker Change: <unk> press release on our website.

Speaker Change: So I have embraced our CEO will begin today's call with highlights from our fourth quarter and full year results for the rest of <unk>, our CFO for additional color on the quarter.

Speaker Change: Jonathan will then conclude today's session with a brief update on our key priorities and proper growth strategy, which will be followed by a Q&A session with that I will turn the call over to John.

Speaker Change: Thank you Fraser and good morning, everyone.

Jonathan Price: So starting on slide four, we had a strong fourth quarter performance across our business. We advanced the ramp-up of our QB operations, resulting in Teck's highest ever quarterly copper production. A just and even DAR of $1.7 billion in Q4 and $6.4 billion for the year reflects robust prices for steelmaking coal on copper, as well as financed steelmaking coal certification. 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 U.S. $294 million In addition, the Board has approved the payment of our quarterly base dividend of $0.125 a share on March 28th. And, following the receipt of US $1.3 billion in proceeds on the closing of the minority sales state in our steelmaking coal business for Nippon Steel in January, the Board has authorised up to a $500 million share buyback.

Jonathan: Starting on slide four we have.

Fraser Phillips: A strong fourth quarter performance across our business.

John: In Boston, <unk> operations, resulting in tax highest ever Unfortunately copper production.

John: <unk> EBITDA of $1 7 billion in Q4, and $6 4 billion for the year reflects robust prices for steelmaking coal and copper as well as higher steelmaking coal sales volumes.

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

John: <unk> $250 million in share buybacks.

John: Continuing to strengthen our balance sheet through the repayment of U S $294 million of Accumulative project Finance facility.

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

Following the receipt of U S $1 3 billion in proceeds on closing of the minority sale of stake in our steelmaking coal business. The Nippon Steel in January the board has authorized up to a 500 million share buyback.

Jonathan Price: This extends our track record of strong cash returns to shareholders, with nearly $4 billion returned in the last five years. Now, turning to our 2023 highlights on slide 5. 2023 was a transformational year for Tech, 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 EBR to Nippon Steel and Tosco on January 3rd.

John: This extends our track record of strong assets and to shareholders with nearly $4 billion returned through the last five years.

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

John: 2023, it was a transformational year for <unk> as we continue to advance each of the four pillars of our value creation strategy.

John: In addition to the strong EBITDA, we'd 11, we reported higher copper production and sales in the previous year driven by the addition of <unk> operations.

John: We also produced $23 7 million tons of steel, making coal above guidance and higher than the previous year.

John: As we progressed a full sale of the steelmaking coal business. We were pleased to announce the closing of the sale of a minority interest in EV.

John: And demand steel and Posco on January six.

Jonathan Price: We've progressed the ramp-up of our QB operation and advanced the path to value for our industry-leading copper growth pipeline through joint partnerships at San Nicolas and Dura-H 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... $7.9 billion of liquidity, including $2.5 billion cash as of February 21st. We continue to strive for sustainability leadership and make steady progress against our sustainability goals. Our report is high potential incident frequency for the full year 2023 remained low at a rate of 0.14.

John: We progressed the ramp up about <unk> operations and advanced the path to value for our industry, leading copper growth pipeline through joint partnerships, San Nicolas and do range call. It stable.

John: The receipt of regulatory approvals is that for now.

John: As mentioned earlier, we returned significant cash to shareholders in 2023 paying $550 million of dividends as well as completing the $250 million share buybacks.

John: Opportunistically to utilize available free cash flow.

John: Importantly, we have maintained a strong financial position seven $9 billion of liquidity, including $2 5 billion cash.

John: February 2000 and finished.

John: We continue just trying to sustainability leadership and make steady progress against our sustainability goals.

John: Our reported high potential incidents frequency for the full year 2023 remained low at a rate of zero point wonderful.

Jonathan Price: We've made a significant move in modernizing our governance structure by introducing the sunset clause for the dual vast 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. We're turning to QB on slide 6.

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

John: We are proud that all 10 operated base metals operations have been awarded the <unk> all the things Mark.

John: And we've been named to the S&P Dow Jones sustainability index for the 14th consecutive year.

John: So turning to <unk> 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 and 275,000 tonnes. On the construction side, by the end of 2023, the Malizanum plant will be substantially completed, and commissioning is currently well underway. All important works at the port have been successfully concluded, materially de-risking our remaining construction.

John: We remain focused on achieving reliable and consistent operations QB.

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

John: We're seeing them ramp up activities continued along with planned maintenance shutdowns through the first quarter and.

John: And we have had multiple periods of operating at or above design throughput capacity.

John: Regarding 2024, we expect to see progressively stronger production from Q V unexpected full year copper in concentrate production to be between 230 and 275000 tons.

John: On the construction site by the end of 2023.

John: Phone was substantially complete and commissioning is currently well underway.

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

John: We are on track to finalize the construction of the offshore facilities at the port by the end of the first quarter and ramp up of the moly plant is expected to be completed by the end of the second quarter.

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 the ramp-up of the Molly plant is expected to be completed by the end of the second quarter. As we look ahead, our QB2 product capital guidance of US$8.6 to US$8.8 billion remains in place. Our guidance for QB net cash costs is US $195 to $225 per pound in 2024. QB unit costs are expected to remain elevated this year, particularly in the first half.

John: As we look ahead, our QB two protean capital guidance of U S. Eight six to $8 8 billion remains in place.

John: Our guidance for <unk> net cash costs is U S 195 to $2 95 per pound in 2024.

John: <unk> 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, no molybdenum production in the first quarter as the plant is being commissioned, continued ramp-up, and inflationary pressures, including increased Chilean energy. We will provide additional unit cost guidance when QB achieves steady-state operational performance. I will now hand it over to Crystal for additional color on the, Thanks, Jonathan.

John: This is driven by the cost of alternative logistics.

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

John: We'll provide additional unit cost guidance with <unk> achieved steady state operational performance.

John: I will now hand, it over to crystal for additional color on the quarter.

Crystal: Thanks, Jonathan Good morning, everyone joining us today on the call I'm going to start with the key drivers for our financial performance on slide eight.

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 wrap-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: Adjusted EBITDA in the fourth quarter increased compared to the same period last year, primarily driven by higher steelmaking coal sales volumes, which were partially offset by lower steelmaking coal and zinc prices as well as higher unit costs across our operations, including elevated costs at QB as production ramp up continues.

Crystal: Continue to experience inflationary pressures and the cost of key supplies, including my equipment, and tires and labor and contractor as well as higher energy costs in Chile, and changing diesel prices.

Crystal: These inflationary pressures impacted our unit costs in 2023, and we expect this to continue into 2024.

Crystal: We have reflected inflation in our sustaining capital expenditures and our full year unit cost guidance ranges for 2024, 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 mining 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 turning 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 34,300 tons of copper and concentrate production; higher production from Highland Valley Copper as a result of increased mill throughput and higher production from Antimina 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.

Crystal: This increase was driven by the ramp up of TV operations, adding 34300 tonnes of copper in concentrate production.

Crystal: Production from Highland Valley copper as a result of increased mill throughput and higher production from asked me now due to higher grades.

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

Crystal Prestia: As a result, gross profit, asset appreciation, and amortization decreased compared to the prior year. 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 2021. 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. Sovereign 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: As a result gross profit before depreciation and amortization decreased compared to the prior year.

Crystal: On the sustainability front, we are pleased to announce that our QED and Carmen de <unk> operations, where we are in the copper market in recognition of their environmentally and socially responsible operating practices, joining Highland Valley, which was awarded the coffee market back in March of 2022.

Crystal: Looking ahead copper 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 cost which are.

Crystal: It can be elevated in 2024, particularly in the first half of the year as ramp up continues.

Crystal: We also faced ongoing inflationary impacts on the cost of certain key suppliers, including mining equipment tires flavor and contractors.

Crystal: Moving now to our 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 grades. We also saw improved results from our trail operations as they returned to full production rates and benefited from higher contracted bank premiums. These increases were largely offset by the 18% decrease in realized bank prices and higher operating costs at our Red Dog operations, primarily due to higher energy costs. However, increased operating costs at our trail operations and at Red Dog were more than offset by substantially lower loyalty costs at Red Dog. We are pleased to announce that Red Dog was awarded the Zing Mark in recognition of its strong environmental and social performance, continuing to demonstrate our sustainability leadership.

Crystal: At Red Dog zinc production increased by almost 30% and less 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: Increased operating costs at our trail operations at Red dog were more than offset by substantially lower royalty costs at Red dog.

Crystal: We were pleased to announce at Red Dog was awarded I think mark in recognition of its strong environmental and social performance continuing to demonstrate our sustainability leadership.

Crystal Prestia: 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. However, over the next three years, production is expected to decrease due to declining grades at Red Dog.

Crystal: We look forward, rather I'm thinking concentrate sales are expected to be between 70080 5000 tons in the first quarter, reflecting normal seasonality of sales.

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

Crystal: Over the next three years production is expected to decrease due to declining grades out on top.

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 impact on the cost of certain key supplies, as noted previously. 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 sales volumes and partially offset by lower sale-making coal prices.

Crystal: The kids that boiler replacement will how it will impact our less circuit in the second quarter of 'twenty 'twenty four but is expected to have minimal impact on our zinc circuit.

Crystal: We think that cash unit costs in 2024 are expected to be higher than 2023 due to the ongoing inflationary impacts on our cost incurred certain key supplies as noted previously.

Crystal: Turning now to steelmaking coal on slide 11.

Crystal: Gross profit before depreciation and amortization increased to $1 35 billion compared to just over $1 billion a year ago, primarily due to higher sales volumes and partially offset by lower steelmaking coal prices.

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 Prestia: While our realized prices in the quarter were 3% lower than the strong four-quarter pricing last year, pricing remains robust and well above historical averages. Overall, plant reliability and performance were strong in the quarter, supported by improved plant availability at all sites and leading to production of 6.4 million 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 LQ operations and extreme weather. Adjusted site cash profit sales per ton of $100 were higher than the last year due to lower capitalized stripping at LC when compared to the fourth quarter of 2022.

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 tons 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> operations and extreme weather conditions.

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

Crystal: We were pleased to announce an agreement with shipping company onto our 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 go-through 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 will remain at these levels throughout 2025 to 2027. We expect ongoing inflationary cost impacts on certain heat supplies to persist into 2024, which will impact adjusted site cash costs for tons 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.

Crystal: We think wholesales are expected to be between five nine to $6 3 million tons in the first quarter.

Crystal: <unk> is expected to be between 24, and 26 million tons in 2024, and you can remain at these levels throughout 2025 to 2027.

Crystal: We expect ongoing inflationary cost impacts on certain key supplies to persist into 2024, which will impact adjusted Steakhouse Pos sales per ton and is reflected in our guidance.

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 achieve the right level of growth and return to shareholders by consistently following this. 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 QV2 development capital as the project nears completion. We will see a slight increase in sustaining capital as we complete the Kivset boiler repairs that trail and reach peak capital spending for the LSU administration and maintenance complex project in our steelmaking pool business. Capitalized dripping costs in 2024 are expected to decrease from the peak in 2023.

Crystal: The 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, as we 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 kits that boiler repairs that trail and reached peak capital spending for the or else you administration at maintenance complex project in our steelmaking coal business.

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

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 metric. Over the last 5 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: In 2020 for growth capital, excluding Cubist two will be prioritized on copper growth projects, particularly for H B C mine life extension that Nicholas and Docker at all.

Crystal: We have 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 I will compete for capital in line with our capital allocation framework.

Crystal: Turning now for 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 a net 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 are proving the quarterly base dividend of 12 and half cents 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 NFC, the board has approved and 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 a steelmaking coal business, as outlined on slide 4. In total, we are expecting to receive U.S. $9.6 billion in cash from, which includes 100% of the steelmaking coal taskloads 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... Thank you for watching!

Crystal: And after receiving cash proceeds of USD, one 3 billion from the closing of the minority sale, our steelmaking coal business to NFC. The board 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 as 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 NSC in early January with up to $500 million to be returned to shareholders via share buyback with.

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 totaled 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.

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: 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 and 2023 fiscal years, which totaled just over $1 2 billion Canadian at the end of February of this year.

Crystal: And we will pay transaction related taxes of approximately 750 million U S.

Crystal: Early 2025.

Jonathan Price: 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 NLCP. 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 you. Thanks, Crystal.

Crystal: And finally as we've previously stated we expect a significant return to shareholders.

Crystal: <unk> 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 Amnesty 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 Jos.

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

Jonathan Price: So turning to slide 17 and our key priorities for 2024. As we mentioned, 2023 was a transformational year for Tech, and to ensure we can continue to demonstrate our focus on value creation, we have set up several key priorities for 2020. We were very excited to announce an agreement for the full sale of our steelmaking coal business in November. Blencore will acquire a 77% controlling interest in EBR and become the operator of the Elk Valley steelmaking coal mine.

Speaker Change: We mentioned 2023 was a transformational year for Chegg.

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

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

Jos: <unk> will acquire a 77% controlling interest in <unk> and become the operator would be held value steelmaking coal mines.

Jonathan Price: As we have discussed, we closed the sale of a minority interest in EBR's Nippon Steel at Costco 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.

Jos: As we have discussed we closed the sale of a minority interest in EMEA off Nippon steel with Posco when January food.

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

Jos: The significant cash proceeds from this transaction will strengthen our balance sheet to ensure we are well capitalized to unlock the full potential of our base metals business, while balancing significant returns to our shareholders.

Jos: As I mentioned earlier, we are also driving 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.

Jos: Tubing, we are pushing hard to complete construction of the board and commissioning of the molybdenum plant in the first half of the year and to achieve consistent operating performance Episodically, possibly.

Jonathan Price: At QB, we are pushing hard to complete construction of the port and commission the molybdenum plant in the first half of the year and to achieve consistent operating performance at designing 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.

Jos: At the same time, we are advancing the development projects and our industry leading pipeline.

Jos: Foundational to our future growth.

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

Jos: Looking at slide 18, and our priority to advance a couple of drugs in a disciplined way.

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

Jos: And it continues the foundational technical work around our near term development projects completing feasibility study advancing engineering work on progressing project execution planning.

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 QV and driving performance across all operations. And it continues the foundational technical work around our near-term development projects, completing feasibility studies, advancing engineering work, and progressing project execution planning. We are adapting our approach to project development to leverage lessons learned. With no project sanctioning decisions until 2025, we are taking the opportunity to undertake a detailed review of the QB2 project, using third-party expertise, such that we can embed relevant learnings into future projects. In the meantime, we are advancing the most important work in the near term to prepare for our potential sanctioning decisions in 2025. This means that all our projects must compete for capital with the rest of the business to ensure that we drive strong financial returns. And it is important to note that each of our near-term development options is significantly smaller in scope and less complex than QB2.

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

Jos: With no project sanction decision until 2025, we are taking the opportunity to undertake a detailed review of the <unk> project utilizing third party expertise such that we can embed relevant learnings into future projects.

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

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

Jos: And it is important to note that each of our medicines development options are significantly smaller in scope and less complex and QB two.

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

Jos: Just on generating strong returns for shareholders balanced with growth and maintaining a robust balance sheet in line with investment grade credit metrics.

Jos: Slide 19 summarizes on the Indian development options, which include some Nicholas Zambrano <unk>, an expansion of the mine life extension of time and money.

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 near-term development options, which include San Nicolas, Zafranal, Pubey Asset Expansion, and the Minelife extension at Highland Valley. This represents a portfolio of both Greenfield and Brinefield projects in stable and well-unders

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

Jos: We continue to progress the optimum constant value for each of our offices.

Jos: Significant work continues to advance each of these projects with a focus on Derisking project delivery.

Jos: We submitted the environmental permit for the <unk> mine life extension to the British Colombia regulator toward 2023, and finalize the Mexican environmental impact assessment for San Nicolas which was submitted on January 25th.

Jonathan Price: We continue to progress the optimal path of value for each of our IT. Significant work continues to advance each of these projects with a focus on de-risking product delivery. We submitted the environmental permit for the HBC 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.

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

Jos: We're making progress across all our copper growth options and surfing ticked up to progress these projects the runtime to generate significant value.

Jos: Now moving to slide 22.

Jos: <unk> remains committed to sustainability leadership.

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. Moving to slide 20, Teck remains committed to sustainability leadership. We continue to progress our sustainability strategy and are proving we can make a positive impact, demonstrated by a number of achievements this past year. We are proud to have received the Copper Mark and the Zinc Mark at all Teck-operated base metal operations, an industry-leading achievement highlighting our commitment to sustainability and transparency in our operations, verified through third-party assurance.

Jos: 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.

Jos: We are proud to have received copper markets zinc market old Tech operating base metal operations and industry leading achievement.

Jos: Highlighting our commitment to sustainability and transparency in our operations with various volume through third party insurers.

Jos: We've received a number of accolades this year for our sustainability performance as previously mentioned moving being named as a constituent of the Dow Jones sustainability index.

Jos: And we have modernized our governance structure through the introduction of the Sunset clause the dual class share structure.

Jos: We also remain committed to our long term goals of net zero scope, one and two emissions by 2050, yes nature positive by 2030.

Jos: 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, Booting has been named as a constituent of the Dow Jones Sustainability Index. And we have modernized our governance structure through the introduction of the Sunset Closed and the Dual Class Sharing.

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

Jos: 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 L landscapes and ecosystems for the benefit of <unk>.

Jonathan Price: 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 activity. 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.

Jos: So in conclusion on slide 21.

Jos: We've committed to responsibly, creating long term value for our shareholders and stakeholders.

Jos: With an industry, leading base metals producer with a strategy centered on Cologuard.

Jos: Already a unique position to deliver significant value.

Jos: We have current production from our premium portfolio of long life assets and stable well understood jurisdictions and.

Jos: 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.

Jonathan Price: So, in conclusion of slide 21, we are carefully committed to responsibly creating long-term value for our 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, and we are focused on execution, driving excellence in performance across our operations and project delivery to ensure that we consistently deliver against our market commitments. We have major near-term growth through the ramp-up of our flagship operations QB and QA. At the same time, we seek to unlock significant value oxide 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, and our sustainability leadership position is a competitive advantage.

Jos: We have a major near term cobo growth through the ramp up of our flagship operations to be in China.

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

Jos: Importantly, we will pursue non growth in a disciplined way following our capital allocation framework balancing growth and returns to shareholders and maintaining a strong balance sheet through the cycle.

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

Jos: This 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.

Speaker Change: Thank you.

Speaker Change: To join the question queue. Please press Star then one on your Touchtone telephone 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 Keith if you wish to remove yourself from the.

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. Operators, please open the line for questions. If you would like to join the question queue, please press star then 1 on your touchtone telephone. 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. If you wish to remove yourself from the question queue, you may press star then 2.

Speaker Change: Question queue, you May press Star then two.

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

Scotiabank: Hi, good morning with.

Restaurants: 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 middle of the plants are.

Scotiabank: Are we starting to see more consistent throughput.

Orest Wowkodaw: The first question comes from Orest Wowkodaw of Scotiabank. Please go ahead. Hi, good morning.

Restaurants: <unk>.

Restaurants: Et cetera can you give us an update.

Jonathan: Yes. Thanks.

Speaker Change: As I mentioned, we're working through the ramp up phase the QB.

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 and the plant. Are we starting to see more consistent throughput recoveries, etc.? Can you give us an update?

Speaker Change: 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 $2 30 to $2 75000 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 SPP and cause base.

Jonathan Price: Yeah, thanks, Orest. As I mentioned, we're working through the ramp-up phase for QB right now. It's in line with our expectations. We expect, of course, to progressively increase our copper production throughout the year to meet that guidance of 230,000 to 275,000 tonnes that we've previously communicated, and we're on track to do that. I'll hand over to Tishizad Barmal, SVP of BASE Metals, who's responsible for the operations there, just to give you a little more color. Thanks, Orest.

Speaker Change: Metals is responsible for the operations there just to give you a little more color.

Speaker Change: Thanks <unk>.

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

Speaker Change: We had mentioned previously.

Metals: We are currently operating at close to design throughput rates.

Metals: Yes.

Metals: 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.

Unnamed Speaker: 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 grades. We are a little bit below.

Speaker Change: On the recovery side again in January and February so far we are closed to design wins will be a little bit below.

Speaker Change: And we are actively working through this as we bring more stability to the front end of the plan. So the.

Speaker Change: The consistency that we've seen over the last month or so it has helped us improve our recoveries and we continue.

Speaker Change: To work through that to get to our design rates.

Speaker Change: Okay.

Speaker Change: Thanks, guys I just wanted to follow up.

Speaker Change: Go for it all into basically.

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.

Unnamed Speaker: And we're actively working through this as we bring more stability to the front end of the plant. So the consistency that we have seen over the last month or so has helped us improve our recoveries, and we continue to work through that to get to a design grade. Thanks, Shehzad.

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

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

Jonathan Price: I think this is the ramp-up of the facility. As I said, we will progressively deliver increased copper production throughout the course of the year. Of course, we're pursuing exactly what you're saying, that stability and operating and design throughput rates. But this is a ramp-up process. It will take some time to land, but we're confident in the guidance that we put forward and expect the delivery of copper to improve through the course of the year to deliver against that guidance. Our next question... Go ahead. Hi there, Liam Fitzpatrick from Deutsche Bank.

Speaker Change: Stability.

Speaker Change: Operating at designed throughput throughput rates.

Speaker Change: But this is a ramp up process. It will it will take some time for lunch.

Speaker Change: With confidence in the guidance that we put forward and expect the delivery of the call but 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.

Liam Fitzpatrick: Hi, there.

Liam Fitzpatrick: Maybe just touch from Deutsche Bank. So just the first one on <unk>.

Liam Fitzpatrick: So just the first one on the balance sheet structure post EVR. Just wondering if you could give us more of a steer in terms. What sort of balance sheet are you targeting as we move into 2025? I know you've mentioned this. 1 x Epidars, the target level, but it seems unlikely that you're going to take leverage up that high.

Liam Fitzpatrick: The balance sheet structure post DVR.

Liam Fitzpatrick: Just wondering if you could give us more more of a steer in terms of what.

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

Speaker Change: One times EBITDAR is.

Speaker Change: 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. Yes.

Jonathan Price: So is it a small net debt position? Is it a small net cash position? Any kind of guidance from that would be helpful.

Crystal Prestia: Yeah, I'll hand you over to Crystal to talk about that. I mean, that's the one thing I would remind you that that is, you know, the sort of long-term position we're targeting here as we, you know, receive the proceeds and how we allocate them in the subsequent years. But Crystal, if you want to provide some more color.

Speaker Change: I'll now hand, you over to Crystal to talk the last I mean, the one thing I would remind this audience the sort of long term in a position where we are targeting here as we receive the proceeds in how we allocate that in the subsequent years, Chris Let's go to provide some more color. Yeah of course. Thank you I think it's consistent with what we've been articulating.

Crystal Prestia: Yeah, of course. Thank you. I think it's consistent with what we've been articulating in relation to reducing our gross debt levels from where they are today. I think there is an opportunity for us to do that. We will look across our debt stack when we think about that. 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: In relation to reducing our gross debt levels from where they are today.

Crystal: I think there is an opportunity for us to do that.

Crystal: Across our dot stock when we think about that obviously winding down in an economic way so in relation to some of the public knows we have made.

Crystal: Make whole premiums and we wont we wont be deliberate in how we think about that we are committed to that investment grade credit metrics as Jonathan said through the cycle.

Crystal: One zero times net debt to adjusted EBITDA, we arent necessarily focus on a on a subtle reference my whole, but rather to really focus on that that ratio.

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

Speaker Change: Okay. Thank you and if I could.

Speaker Change: I'll ask one follow up just on <unk>.

Speaker Change: Potential M&A versus organic opportunities.

Crystal Prestia: We aren't necessarily focused on, on a, you know, set leverage level but rather really focused on that, that ratio. Okay, thank you. And if I could ask one follow-up. Lawson Winder, Teck Resources Ltd, https://www.youtube.com.au things that you think are very interesting that you're hoping to progress in 2025. Is that enough to keep you occupied or are you also on the lookout

Speaker Change: You've clearly got a number of internal options that you think are very interesting that you're hoping to progress.

Speaker Change: In 2025.

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

Speaker Change: That potential external opportunities.

Speaker Change: Yes.

Speaker Change: What we have in the portfolio ready, we're not sure the thing to do as we've just discussed we're very focused on the the ramp up stabilization from production from can be this year. We've got then a tranche of projects, which.

Jonathan Price: 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 know, should be subject to engineering, economics, and permitting, ready for sanctioning in 2025, including the HPC Life Extension, San Nicolas, and Sacramento. So there's a lot to be getting on with there.

Speaker Change: Should be subject to do engineering economics determining ready for sanctioned in 2020 by including the SPC life extension San Nicolas in Sacramento.

Speaker Change: There will also be getting on with the Aaron's and as we've always said, we want to balance our investments in growth we presented the catheter with shareholders. So we'll continue to focus on those things that are entirely.

Speaker Change: They don't control and delivering future growth that we've been talking to.

Timna Tanners: 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. Do we have a mute, Timna?

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

Speaker Change: Okay.

Timna Tanners: There are new Timna.

Timna Tanners: Oh Nope I just didn't hear you.

Timna Tanners: How's everyone doing.

Erika: Erika thank goodness.

Erika: We can hear you get into them.

Erika: Okay.

Erika: Yes.

Timna Tanners: Okay.

Erika: So I wanted to ask a little bit more about the expansion project.

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

Timna Tanners: At one point you had.

Timna Tanners: Permit for further <unk> opportunities.

Unnamed Speaker: Dearly good thanks, Timna. Oh, we can't hear you again. 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 body there. It's a very, very long life.

Timna Tanners: And just wanted to know the updated thinking there and then regarding that could take us semi collapsed.

Timna Tanners: Leadership in Mexico is looking into banning open pit mining.

Timna Tanners: And just wondered how that affects that project or if you.

Timna Tanners: Youre looking at that.

Speaker Change: Yes, so starting with <unk>.

Speaker Change: QB and future expansions at our facility.

Speaker Change: We have an incredible what are there and it's very very long life and say you will enable future expansions of capacity.

Jonathan Price: It clearly will enable future expansions of capacity for QB and is still something that we can run as a multi-generational asset. Our immediate priority, as I said, is getting the current plant fully ramped up and operating and then really exploring the full potential of that facility in terms of what additional capacity we can get through optimizing what we already have before we make any further commitment to any significant capital expenditure at the site. In the medium term, you know, I very much expect us 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. But asset optimisation 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. Hi Tim.

Speaker Change: Heavy and still something that we can run a multi generational assay 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 the additional capacity we can get through.

Speaker Change: Through optimizing what we already have before we make any commitments or any significant capital expenditure.

Speaker Change: And besides.

Speaker Change: Mediums and very much expect us to continue to pursue.

Speaker Change: Larger scale expansions.

Speaker Change: Verizon invest.

Speaker Change: What we have in San Diego as Safra, an island in the the life extension of HSBC, we have a failing evaluable dogs cove in the in the immediate term.

Speaker Change: <unk> focus on that in terms of our major capital deployment, but assay optimization studies for the medium and long term as can be are ongoing.

Speaker Change: Your second question just around some of the moving pieces, we've seen in Mexico with light really as they relate to the constitution, all new obit toilet mitchelson, Who's our senior Vice President and Congress.

Speaker Change: Timna, yes, we are closely monitoring and assessment.

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, and 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 as we go forward.

Speaker Change: <unk>.

Speaker Change: Those changes to the constitution was more than 20.

Speaker Change: Post obviously the ones around open pit mining water consumption are the key ones.

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

Speaker Change: Chamber of mines in Mexico to really understand what is without going forward.

Speaker Change: Given where we are right now is four months to the main general election Bartlett with RSC closes on April 30, or so it's really too early to determine whether or not these.

Speaker Change: <unk> will be approved in the timeframe that could be approved and as well what the ultimate impact will be.

Speaker Change: As we go forward you put it in the context of some of the largest mine in Mexico right now some of the most successful companies to use open pit mining.

Tyler Mitchelson: 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 months. Thanks, Phil. Makes sense. Thank you. I got my two in, so I'll pass it along.

Speaker Change: So, it's obviously, a very significant impact, but we're continuing to monitor through <unk>.

Speaker Change: Months.

Speaker Change: So it makes sense. Thank you I got Mike <unk>, So I'll pass it along thank you again.

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

Mike: Thanks Dana.

Mike: 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. Thanks.

Dalton Barreto: Thank you good morning, Jonathan that team.

Dalton Barreto: Jonathan on the Glencore call, Gary was asked about synergies between <unk> and <unk> and the response you talked about a number of work streams any sort of alluded to billions in synergies and I'm. Just wondering if you could comment on sort of where those synergies are coming from some of the work that's ongoing.

Dalton Barreto: Maybe when we could see an update and where <unk> fits into all of that thanks.

Jonathan Price: Yeah, thanks for the question, Dalton. You know, we, along with the other parties here, are doing a detailed technical evaluation of the potential synergies between QP and Kolahawati. We haven't quantified those yet, and, you know, those synergies could take a number of forms, all the way from being infrastructure-related to optimizing across, you know, two very significant oil bodies in that area. You know, it's complex.

Speaker Change: Thanks for the question.

Speaker Change: We along with the other positives here and doing detailed technical evaluation of the potential synergies between <unk> and Kona Hawaii.

Speaker Change: We haven't quantified those yet.

Speaker Change: Those synergies could take a number of falls all the way from being infrastructure allows you to optimize going across.

Speaker Change: Two very significant coal loadings in that area.

Speaker Change: It's complex.

Jonathan Price: 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. 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, if and when we get closer to agreeing terms with other parties. As I mentioned before, the focus for us right now is and must be on the ramp-up of QB2 and optimizing the operation that we already have. The intersection with something like, you know, the QB mill expansion, as you referenced, as I said, we are looking at future asset optimization opportunities, which include bottlenecking in the short term and could include project expansions in the medium term. And, of course, if there were to be any agreement or commercial arrangement between the parties, then that would have to factor in future expansion opportunities on both sides, of course, at QB2 and Kalawati. But we're not at that point yet, Dalton.

Speaker Change: It will take time.

Speaker Change: In particular, because there's a large number in terms of parties involved in this but you know engagement is ongoing where we're working together to identify the opportunity here.

Speaker Change: And we will update you in due course.

Speaker Change: As we are as we get closer to landing the technical evaluation and of course, and I've always said when we get closer to two agreeing terms within our bodies as.

Speaker Change: As I mentioned before the the focus for US right now is and must be on the right.

Speaker Change: To me too and then optimizing the operation that we already have.

Speaker Change: The intersection with something like that.

Speaker Change: The <unk> mill expansion as you referenced is as I said, we are looking at future asset optimization opportunities, which include Debottlenecking in the short term and including the project expansions, India in the medium term and of course, if that were to be any agreements or conversion of arrangements between the parties.

Speaker Change: Then that would have to factor in future expansion opportunities on both sides as opposed to going to landfill in Washington, but we're not at that point that the open as you know there's a lot of wood to be done these things are complicated.

Jonathan Price: There's a lot of work to be done. These things are complicated, but we're committed to understanding the value potential there and working constructively and collaboratively with the other parties. Thank you.

Speaker Change: Maybe if you understand the value potential there and working constructively and collaboratively with the other parties.

Speaker Change: Great. Thank you and then maybe if I can ask one more just.

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

Speaker Change: The Glencore transaction on the core business can you just give us an update on.

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: So those are processes is continuing.

Speaker Change: We expect them, we will receive the required approvals being bugs the investment Canada approvals on the honesty Trust approvals.

Speaker Change: Nothing that gives us cause for concern.

Speaker Change: So something that we're seeing these things just take time, we're working through that process and we still expect it to close no later than the same quarter last year.

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

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

Jonathan Price: So maybe I'll just follow up on the prior question. Any more specific details, 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: Any more specific color Jonathan when you can provide a wider pool of you have already received and kind of which ones are still pending for.

Speaker Change: Closing the colt transaction.

Speaker Change: The other.

Speaker Change: One of the key ones here of course is the investment cataract approval and that remains our standing with respect to these various antitrust approvals across a range 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 plan with you.

Speaker Change: No later than the third quarter.

Speaker Change: Alright, Thanks, and then on QB two cost trends.

Speaker Change: Yeah.

Speaker Change: I understand that you want to provide for their guidance and ones that production is stabilized.

Speaker Change: On a steady state, but how do you see at least from the call.

Jonathan Price: But how do you see, at least currently, 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?

Speaker Change: Current.

Speaker Change: Currently how do you see the trends.

Speaker Change: Of the cost moving once you get to steady state.

Speaker Change: So the cost guidance for the next three years, a little bit wide should.

Speaker Change: Should we assume that you only expect with respect to get to the lower end of that guidance by the three year.

Speaker Change: Gotcha.

Speaker Change: 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 the third year of that period.

Jonathan Price: 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, 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 is also getting the molybdenum farms up and running at full production, given the by-product credits we will get from that. And, of course, then there's getting the main circuit running at full production, so we get that full dilution effect on costs.

Speaker Change: Yes.

Speaker Change: I think there are a few things here that are clearly within our control, but that should see us improve the unit cost profile of that in Q billions and they are of course getting our own board up and running so we can.

Speaker Change: Moving away from the temporary logistics arrangements as a permanent solution.

Speaker Change: Water is also getting a molybdenum plant up and running at full production given the the byproduct credits, we will get from that and of course, then there is getting the things running at full production should we get the full dilution effect on cost. So all of those three things as we progress we will see using <unk>.

Jonathan Price: 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 half of the year. There are, of course, some factors that are less within our control.

Speaker Change: Improved so even as we move through this year, we would expect cost in the second half of the year to be better than the first half of the year. There are of course, 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 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 gone into those yet, and we'll have a much clearer view of that once operations are stabilized. Our next speaker is Lawson Winder of Bank of America Securities. Please go ahead.

Speaker Change: The inflationary environment is one of the impact that that could have on labor costs and the other bothered bodies just energy cost to use your language.

Speaker Change: Signaled as being.

Speaker Change: As being higher than previously.

Speaker Change: Of course, we need to see how those things progressed. So we do when we put out guidance for 2020 for that guidance reflects that.

Speaker Change: The phase of ramp up that we're in today and it reflects some of the areas that I'm, just reflecting which we will resolve through the course of this year. So we expect lower cost infusion, but of course, we havent gone into those yet and we will have a much clearer view of that once operations are stabilized.

Speaker Change: Our next question comes from Lawson Winder of Bank of America Securities. Please go ahead.

Speaker Change: Okay.

Speaker Change: Okay.

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 hand it over to Mr. Steyer on that one.

Lawson Winder: Great. Thank you very much operator, and thank you for the update today Jonathan team on.

Lawson Winder: I wanted to ask about Anthony owner, and then hopefully a 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 decisions.

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

Speaker Change: Ill just add on that one thanks Lawson so.

Unnamed Speaker: Thanks Lawson. As you know, as you would have read that we did get the MEIA approval for the MindLife extension from 2020 to 2036, and that is really an 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 there is 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 are looking at permitting strategies for that, and it will be a few years before we have some definitive project definition on those. So at this point, you know, we're focused on getting that to 2036 from 2028, which we were very happy to achieve the permit. Okay, yeah, that's great. Thanks. It's very clear.

Speaker Change: As you would as you would have read that we didn't get the <unk> approval for the mine life extension from 2028 to 2036.

Speaker Change: And that is really an expansion of our leased facilities and tailings facilities and the locations that they are.

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

Speaker Change: All the permits are in place at some capital associated with this that will be spent over the next few tier social.

Speaker Change: Post 2036 extensions and <unk>.

Speaker Change: And expansions.

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

Speaker Change: That will be a few years before we will have some.

Speaker Change: Tim.

Speaker Change: Ah contract definition on those.

Speaker Change: At this point, we are focused on getting back to 2036 from 2020 in English we were very happy to achieve the permit.

Speaker Change: Okay, Yeah, that's great. Thanks, that's very clear.

Speaker Change: And then with QB two.

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 forced.

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.

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

Speaker Change: Not necessarily those movies.

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 and exalination in pipelines, etc. And, you know, 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: The original set was always very very large and that was very very very large so it doesn't necessarily impact our short term thinking around how we would.

Speaker Change: How we would expand this will be very focused on the capital intensity of the next expansion here, where we look to maximize underutilized capacity in desalination and pipelines et.

Speaker Change: Cetera, and when it maintenance, which of course is we have a far greater optionality in the long term, which is which is a fantastic position to be in that it doesn't really change that short term thinking the focus on capital intensity and returns will 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 Pipes: Thank you very much operator, good morning, everyone.

Lucas 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 those 2020-2022 averages and try to understand better what's going on here. Is that a catch-up from the pandemic? Is there something cyclical?

Lucas Pipes: My first question is on on slide 13 of the deck, which breaks out the capex of the law.

Lucas Pipes: Last couple of years and into 2024, and sustaining capital and capitalized stripping in 'twenty three 'twenty four kind of.

Lucas Pipes: Great.

Speaker Change: Step up from come 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.

Speaker Change: Cyclical other unique projects that have elevated this temporarily just just trying to get a better sense of or is it is it mostly inflation.

Crystal Prestia: Are there unique projects that have elevated this temporarily? Just trying to get a better sense of, or is it mostly inflation? We would really appreciate getting a better sense of those drivers. Thanks.

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

Speaker Change: Yes, Thanks, Lucas I'll hand, your Crystal alone. Thanks Lucas.

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 sort of, 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.

Crystal: I think sort of primary driver and I I would focus on the inflation I think there you can see from that sort of 'twenty to 'twenty two from I guess really now a significant increase in <unk>.

Crystal: Underlying costs that were in.

Crystal: <unk> are any capital of all of our operating costs. So I think that is.

Crystal: A key piece.

Crystal Prestia: In relation to capitalist stripping, I would just say in our coal business, we were moving into new mining areas in 2023, and you saw those costs being elevated in that year, I guess, 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 LSU administration and maintenance complex is a large project started in 23, and the elevated cost will be in 2024 as we reach peak spending on that project.

Crystal: In relation to countless stripping I would just say in our holdings entity, where maybe into two new mining areas in 2023, and you saw those costs being elevated.

Crystal: And in that year of 2000, and I guess, I mean, Q in 'twenty, three and enough coming off in our in our guidance for 2024 and there are also a couple of projects that.

Crystal: Our our larger.

Crystal: Core business.

Crystal: I'll see you administration and maintenance complex.

Crystal: If a large project in started off in 2003, the elevated cost in 2024 as we reach peak spending on not on that project.

Crystal Prestia: And then I'd say the last point about what's included in standing capital is obviously we now have QD, 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... Thank you.

Crystal: And then I think the last point in what's included in sustaining hospitals ICD now how QD sustaining capital.

Crystal: And our fingers. So those are some of the bigger bigger items, but I think inflation is probably one of the largest traffic.

Speaker Change: And we can get you there.

Speaker Change: Got it thank you.

Speaker Change: Sure Paul often.

Paul: That would be that would be helpful.

Jonathan Price: That would be helpful. On slide 24, you show the kind of copper production through 2027. 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 2027 the best base case, even with the spending? Thank you. Yeah, I'd say not within that period, Lucas.

Paul: On slide 24.

Paul: You show the kind of copper production through 2027.

Paul: And.

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

Paul: Is there any potential for.

Paul: A more sustained production level off of 2025 or is that really the.

Paul: The outlook through 'twenty seven the best base case, even people with the spending taking place today.

Speaker Change: I'd say not within that period, because this is how we see the current mine plan progressing.

Jonathan Price: 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 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 JPMorgan. Please go ahead.

Paul: The capital that will be putting to work.

Paul: Subject to subject to returns of course for the life extension of HBC, We will really see the production pickup in forward years.

Paul: Wouldn't expect to see any material impact on the on the guidance that we put out here.

Paul: Our next question comes from Bill Peterson of Jpmorgan. Please go ahead.

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

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

Bill Peterson: Especially considering what is looking.

Bill Peterson: Leasing looking like a tightening supply environment.

Speaker Change: Yeah. Thanks, Bill I mean, we do see a tightening supply environment that we think you know even as we progress through this year and the outlook for copper pricing 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: We've seen the shortlist of concentrate and the impact that that's had on TCR seasons, we expect at some point that the flow through into refined metal in 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: Of course, each of the projects will have its own unique economics based on the capital and the operating costs and the volumes associated with those volumes.

Speaker Change: All agent can painful capital, we will be very returns focused in terms of the decisions.

Ian Anderson: 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. And you know, on that call, 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 talk about that. Thank you very much for the question, Bill.

Speaker Change: But we take here and of course, David copper price will be a key determinants 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.

Speaker Change: Okay. Thanks for that.

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

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

Speaker Change: Yeah I'll ask.

Speaker Change: The cumulation of talks about.

Speaker Change: 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 about 185 billion. So it was really representing about where it was last year.

Ian Anderson: 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 if you know what I'm talking about, I'm 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: Really saw that taper off at the end of the year as a result of Chinese production. It rapidly drops off circuit bolt 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, and Japan, and South Korean markets. So overall.

Ian Anderson: So, you know, overall, if you look back over the course of the year, the high-quality steel link 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.

Speaker Change: Look back over the course of the year the high quality steelmaking coal price exceeded $2 95 per ton really rose at the end of the year, where we saw it up to about three four scheme and there is 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.

Ian Anderson: First of all, heightened 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.

Speaker Change: Australia and supply is key miners, including some of our peers there of adjusted their production guidance down in 2020 for Chinese production domestic production is of course going a bit deeper than it has in the past and Russian calls, even though they're coming to fill the gap and lower quality.

Speaker Change: Quality of the enormous goods. So we're not really seeing investment in terms of hard coking coal supply and we think that really promise as a future price increase.

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 very excited about the prospects 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. 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. You may disconnect your lines at any time.

Speaker Change: Thank you.

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

Jonathan Price: Yeah, Thanks, operator, and thanks to everyone for joining us today.

Jonathan Price: Talk about where you know a very exciting growth prospects here for 2024 and beyond we're looking forward to the completion of the transaction with Glencore. We're looking forward to what they can do that on how we intend to allocate.

Jonathan Price: 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 of projects that we have as always please reach out to frame. It in the IR team. 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.

Operator: Thank you for participating and have a pleasant day. Thank you for watching! BF-WATCH TV 2021,...

Speaker Change: [noise].