Q2 2024 Teck Resources Ltd Earnings Call

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Operator: Ladies and gentlemen, thank you for standing by. Welcome to TEC's Q2 2024 Earnings Release and Investors Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. To join the question queue, press star, then one on your touchtone phone.

Operator: Ladies and gentlemen, thank you for standing by.

Operator: Welcome to Teck Q2 2024 earnings release and investors conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. To join the question queue, press star, then one on your touch tone phone. Should you need assistance during the conference call, you may signal an operator by pressing star, then zero. Yes, this conference call is being recorded on Wednesday to live at 24, 2024.

Speaker Change: Ladies and gentlemen, thank you for standing by. Welcome to TEC's Q2 2024 Earnings Release and Investors Conference Call.

Speaker Change: At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. To join the question queue, press star then 1 on your touchtone phone. Should you need assistance during the conference call, you may signal an operator by pressing star then 0.

Operator: Should you need assistance during the conference call, you may signal an operator by pressing star then zero. This conference call is being recorded on Wednesday, July 24th, 2024. I would now like to turn the conference over to Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analysis. Please go ahead.

Speaker Change: This conference call is being recorded on Wednesday, July the 24th, 2024. I would now like to turn the conference over to Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analysis. Please go ahead.

Fraser Phillips: I would now like to turn the conference over.

Fraser Phillips: Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analysis. Please go ahead.

Fraser Phillips: Thanks Kayleen. Good morning everyone, and thank you for joining us for Teck's second quarter 2024 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 responsibility, or the obligation, excuse me, to update any forward-looking statements.

Fraser Phillips: Today's Q1, morning, everyone. Thank you for joining us for Teck's second quarter 2024 conference call. Please note today's call contains forward-looking statements. Various risks and uncertainties may cause actual results of varying.

Fraser Phillips: Thanks Gailene. Good morning everyone and thank you for joining us for Teck's second quarter 2024 conference call.

Speaker Change: Please note today's call contains forward-looking statements. Various risks and uncertainties may cause actual results to vary. TECC does not assume the obligation to update any forward-looking statements. Please refer to slide 2 for the assumptions underlying forward-looking statements.

Fraser Phillips: Teck does not assume the response of the obligation to use me to update any forward-looking statements.

Fraser Phillips: Please refer to slide two for the assumptions underlying forward-looking statements. In addition, we will reference various non-GAAP measures throughout this call. Explanations and reconciliations regarding these measures can be found in our MD&A and the latest press release on our website. Turning to the agenda on slide three, Jonathan Price, our CEO, will begin today's call with highlights from our second quarter results. Crystal Prystai, our CFO, will follow with additional color on the quarter, as well as the sale of our steelmaking coal business and the use of proceeds from that transaction. Jonathan will then discuss the transformation of our portfolio and our value creation strategy, and will then take your questions. With that, we're due.

Fraser Phillips: We have the first slide too for the assumptions underlying portal statements. In addition, we will reference various non-GAAP measures throughout this call. Explanations and reconciliation regarding these measures. Be found at our MDA, in the latest press release on our website.

Speaker Change: 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, the latest press release on our website.

Fraser Phillips: Thanks to the agenda on slide three, Jonathan Price, our CEO, will begin today's call at highlights for our second quarter results. Crystal President and I are CFO. I will follow the additional color on the quarter. As well as the sale of our steel making coal business and the use of proceeds from that transaction. None of them will then discuss the transformation of our portfolio, their value creation strategy. We'll then take your questions.

Speaker Change: Turning to the agenda on slide 3, Jonathan Price, our CEO , will begin today's call with highlights from our second quarter results.

Speaker Change: Crystal Prystai, our CFO , will follow with additional colour on the quarter, as well as the sale of our steelmaking coal business and the use of proceeds from that transaction. Jonathan will then discuss the transformation of our portfolio and our value creation strategy. We'll then take your questions. With that, over to you, Jonathan.

Fraser Phillips: With that?

Unknown Shareholder: Excuse us.

Jonathan Price: Thank you for all of that, and good morning, everyone. Starting with the highlights from our second quarter on slide five. At the very top of our list of highlights is the close of the sale of the remaining interest in the steel making coal business on July 11. It's not every day that we receive $7.3 billion in cash proceeds.

Jonathan Price: Thank you, Fraser, and good morning, everyone. Starting with the highlights from our second quarter on slide 5, the very top of our list of highlights is the close of the sale of the remaining interest in the steelmaking coal business on July 11. It's not every day that we receive $7.3 billion in cash proceeds, and this transaction marks an exciting new era for Teck as a company focused entirely on providing metals that are essential to global development and the energy transition.

Jonathan Price: Thank you Fraser and good morning everyone. Starting with the highlights from our second quarter on slide five. At the very top of our list of highlights is the close of the sale of the remaining interest in the steel making coal business on July 11th.

Jonathan Price: It's not every day that we receive $7.3 billion in cash proceeds, and this transaction marks an exciting new era for Teck as a company focused entirely on providing metals that are essential to global development and the energy transition.

Jonathan Price: And this transaction marks an exciting new year of the test as a company focused entirely on providing metals that are essential to global developments and the energy transition. We believe that the company market has strong fundamentals, and we continue to see ongoing urbanization and population growth driving increased copper intensity with additional demand Britain by power generation technology data and increase electrification. Along their network for copper is highly resilient. And with the significant proceeds from this transaction, tech is strongly the addition to capitalised on the growing demand for copper in our new era. With substantial funding retained for our native value of recent projects, which provide us with a pathway to increase total copper production.

Jonathan Price: We believe that the copper market has strong fundamentals, and we continue to see ongoing urbanization and population growth driving increased copper intensity, with additional demand driven by power generation, technology, data, and increased electrification. The long-term outlook for copper is highly resilient.

Jonathan Price: We believe that the copper market has strong fundamentals and we continue to see ongoing urbanization and population growth driving increased copper intensity with additional demand driven by power generation, technology, data and increased electrification.

Jonathan Price: And with the significant proceeds from this transaction, Teck is strongly positioned to capitalize on the growing demand for copper in our new era, with substantial funding retained for our near-term value-accretive projects, which provide us with a pathway to increase total copper production once QB is at full capacity by a further 30% starting as early as 2028, with significant debt reductions further strengthening our resilient balance sheet and with the largest cash return to our shareholders in the company' Crystal will speak to the use of proceeds in greater detail shortly.

Jonathan Price: The long-term outlook for copper is highly resilient.

Jonathan Price: And with the significant proceeds from this transaction, Teck is strongly positioned to capitalize on the growing demand for copper in our new era.

Jonathan Price: With substantial funding retained for our near-term value-aggressive projects which provide us with a pathway to increase total copper production once QB is at full capacity by a further 30% starting as early as 2028.

Jonathan Price: One's QB is at full capacity by a further third percent, starting as early as 2028. With significant debt reductions for the strengthening of our resilient balance sheet. And with the largest effort to our shareholders in the company's history.

Crystal: With significant debt reductions further strengthening our resilient balance sheet and with the largest cash return to our shareholders in the company's history. Crystal will speak to the use of proceeds in greater detail shortly.

Jonathan Price: Before we'll speak to the user, proceeds in greater detail shorting. Beyond the transaction, there were several highlights for last strong operational and financial performance in the second quarter. Generated $1.7 billion of adjusted EBITDA, a 13% increase from the same period last year, reflecting record quarterly in copper production, tripled primarily by the round-buff of Crerada Blanket or QB. It was also another strong quarter of Red Dog, and we had very strong production in the steel-weighted co-business, despite two major planned maintenance shutdowns. At the same time, we advanced our industry-leading copper growth portfolio, having achieved several milestones in the permitting processes of a high-end value-mine life extension and for San Nicolas, and we continue to focus on sustainability leadership, including improved safety performance.

Jonathan Price: Beyond the transaction, there were several highlights from our strong operational and financial performance in the second quarter. We generated 1.7 billion of adjusted EBITDA, a 13% increase from the same period last year, reflecting record quarterly copper production, driven primarily by the ramp-up of QB. It was also another strong quarter for Red Dog.

Crystal: Beyond the transaction, there were several highlights from our strong operational and financial performance in the second quarter.

Crystal: We generated $1.7 billion of adjusted EBITDA, a 13% increase from the same period last year, reflecting record quarterly copper production, driven primarily by the ramp-up of QB.

Jonathan Price: We had very strong production in the steelmaking coal business despite two major planned maintenance shutdowns. At the same time, we advanced our industry-leading copper growth portfolio, having achieved several milestones in the permitting processes for the Highland Valley Mine life extension and for San Nicolás. We continue to focus on sustainability leadership, including improved safety performance. Our High Potential Incident Frequency Rate was 0.11 for the first half of the year, which is a 46% reduction in HPIs from the same period last year. I'm turning to the highlights from QB on slide six.

Speaker Change: It was also another strong quarter of Red Dog and we had very strong production in the steelmaking coal business despite two major planned maintenance shutdowns.

Speaker Change: At the same time, we advanced our industry-leading copper growth portfolio, having achieved several milestones in the permitting processes for the Highland Valley Mine life extension and for San Nicolas.

Speaker Change: We continue to focus on sustainability leadership, including improved safety performance. Our high potential incident frequency rate was 0.11 for the first half of the year, which is a 46% reduction in HPIs from the same period last year.

Jonathan Price: Our high potential incident frequency rates were 0.11 for the first half of the year, which is a 46% reduction in HDIs from the same period last year. I'm turning to the highest from QB on slide six. We continue to advance the ramp up during the second quarter. QB copper production increased quarter over quarter to 51.3,000 tons, and 43.3,000 tons. The robust design and construction of the plan supports the bottleneck, and we relate focused on recovery and throughput. We achieved first production and sales of the milliprinum as planned, and ramp up with the milliprinum plan is progressing, and our QB net cash unit costs were in line with our expectations.

Jonathan Price: We continue to advance the ramp-up during the second quarter. UB copper production increased quarter over quarter to 51.3 thousand tonnes from 43.3 thousand tonnes. Robust design and construction of the plant supports de-bottlenecking, and we remain focused on recovery and throughput. We achieved the first production and sales of molybdenum as planned, and ramp-up of the molybdenum plant is progressing, and our QB net cash unit costs were in line with our expectations. Doobie is already starting to contribute to our strong financial results.

Speaker Change: I'm turning to the highlights from QB on slide 6. We continue to advance the ramp-up during the second quarter.

Speaker Change: UB copper production increased quarter over quarter to 51.3 thousand tonnes from 43.3 thousand tonnes.

Speaker Change: Robust design and construction of the plant supports de-bottlenecking and we remain focused on recovery and throughput.

Speaker Change: We achieved first production and sales of molybdenum as planned and ramp up of the molybdenum plant is progressing.

Speaker Change: And our QB net cash unit costs were in line with our expectations.

Jonathan Price: QB is already starting to contribute to our strong financial results. It's 284 million in growth profit before depreciation and hammerization generated in the first half of the year while still in ramp up.

Jonathan Price: $284 million in gross profit before depreciation and amortization generated in the first half of the year while still in ramp-up. Turning now to the Outlook for QB on slide 7, we are seeing continuous improvements in throughput, which is now close to design rates. While we have recurring failures with a pulley in a key overland conveyor, these have now largely been mitigated.

Speaker Change: QB is already starting to contribute to our strong financial results with 284 million in gross profit before depreciation and amortization generated in the first half of the year while still in ramp up.

Jonathan Price: Turning down to the outlook for QB on slide seven. We are seeing continuous improvements in throughput, which is now close to design rates. What we have recurring failures with a pulley in a key overlap in there; these have now largely been mitigated. At the same time, recovery has been proved that we adjust the slaves in the transition hours and improved fastability. Our focus is on driving recoveries to design levels, and we are confident that we will achieve our target recoveries by year end. Most importantly, we continue to expect a reach full group of race and QB by year end.

Speaker Change: Turning now to the outlook for QB on slide seven.

Speaker Change: We are seeing continuous improvements in throughput which is now close to design rates.

Speaker Change: While we have recurring failures with a pulley in a key overland conveyor, these have now largely been mitigated.

Jonathan Price: At the same time, recoveries have improved as we adjust the clays in the transition ores and improve slab stability. Our focus is on driving recoveries to design levels, and we are confident that we will achieve our target recoveries by year end. Most importantly, we continue to expect to reach full throughput rates at QB by year-end. However, slightly lower than planned all grades in the second half of the year due to short-term mine access issues related to pit dewatering and a localised geotechnical issue have resulted in an update to our 2024 production guidance for copper and molybdenum, who have revised our full year QB copper production guidance to 200,000 to 235,000 tonnes, 230,000 to 275,000 tonnes, and revised our full-year QB melanin and production guidance from 1.8 to 2.4 thousand tons, from 2.9 to 3.6 thousand tons.

Speaker Change: At the same time, recoveries have improved as we adjust the clays in the transition ores and improve slab stability.

Speaker Change: Our focus is on driving recoveries to design levels and we are confident that we will achieve our target recoveries by year end.

Speaker Change: Most importantly, we continue to expect to reach full throughput rates at QB by year-end.

Jonathan Price: However, slightly lower than planned all grades in the second half of the year due to short term, mine access issues related to pity water in and our localised to your technical issue, how resulted in an update to our 2024 production guidance for copper and milliprinum. We have revised up full year QB copper production guidance to 235,000 tonnes and 232,000 tonnes. And we have revised up full year QB millingen production guidance to 1.8 to 2.4,000 tonnes on 2.9 to 3.6 tonnes. In line with production guidance changes, we have revised up full year net cash unit cost guidance for QB to US 2.25 to 2.55 per pound from US 1.95 to 2.25 per pound.

Speaker Change: However, slightly lower than planned oil grades in the second half of the year due to short-term mine access issues related to pit dewatering and a localised geotechnical issue have resulted in an update to our 2024 production guidance for copper and molybdenum.

Speaker Change: who have revised our full year QB copper production guidance to 200,000 to 235,000 tonnes, 230,000 to 275,000 tonnes.

Speaker Change: and revised our full year QB melanin and production guidance from 1.8 to 2.4 thousand tonnes on 2.9 to 3.6 thousand tonnes.

Jonathan Price: In line with our production guidance changes, we've revised our full year net cash unit cost guidance for QB to US$225 to 255 per pound from US$195 to 225 per pound. And while second quarter sales from QB were impacted by a temporary filter plant issue at the port in June, it was resolved by quarter end, and we expect to make up the sales volumes over the balance of the year. Production guidance for QB for 2025 to 2027 is unchanged.

Speaker Change: In line with our production guidance changes, we've revised our full year net cash unit cost guidance for QB to US$2.255 to US$2.55 per pound from US$1.95 to US$2.25 per pound.

Jonathan Price: and while second quarter sales from QB were impacted by a temporary sales of plant issue at the port in June, it was resolved by quarter-end and we expect to make up the sale volumes over the balance of the year. Production guidance for QB, the 2025 to 2027, is unchanged. Once its full capacity, QB will double our copper production, and we expect our bank's matters operations to generate significant debit data.

Speaker Change: And while second quarter sales from QB were impacted by a temporary filter plant issue at the port in June , it was resolved by quarter end and we expect to make up the sales volumes over the balance of the year.

Speaker Change: Production guidance for QB 2025-2027 is unchanged.

Crystal J. Prystai: Once at full capacity, QB will double our copper production, and we expect our base metals operations to generate significant EBITDA. As shown on the slide, we have the potential to generate more than five billion euros of annual EBITDA. And with sustaining capital and capitalized stripping expected to be in a range of $1 to $1.2 billion per year, Teck's free cash flow generation potential is compelling. I'll now hand the call over to Crystal to provide further details. Thanks, Jonathan. Good morning, everyone.

Speaker Change: Once at full capacity, QV will double our copper production and we expect our base metals operations to generate significant EBITDA.

Jonathan Price: A journalist's life, we have the potential to generate more than 5 billion of annual EBITDA, and with sustained capital and capitalised tripping expected to be in a range of 1 to 1.2 billion dollars per year, text free cash flow generation to potential is compelling.

Speaker Change: As shown on the slide, we have the potential to generate more than $5 billion of annual EBITDA, and with sustaining capital and capitalized stripping expected to be in a range of $1-$1.2 billion per year, Teck's free cash flow generation potential is compelling.

Crystal Prystai: Allow him to call over to Crystal to provide further details. Thanks, Jonathan.

Crystal J. Prystai: I'm going to start on slide nine with our financial performance in the second quarter. Given final regulatory approval of the sale of Elk Valley Resources, or EBR, was not received until July 4th, we continue to report EBR in our operating results in the second quarter. Starting in the third quarter of 2024, EBR results will be presented as discontinued operations.

Crystal Prystai: Good morning, everyone. I'm going to start on 29 with our financial performance in a second quarter. We have been final regulatory approval of the sale of Elk Value Resources, or EBR, was not received until July 4. We continue to report EBR in our operating results in the second quarter. Starting in the third quarter of 2024, EBR results will be presented as did continue operation. There are a number of significant accounting and presentation items that impacted our first quarter results, and these continue to impact our results in the second quarter. Consistent with our reporting in Q1, our second quarter financial statements reflect the 23% minority ownership in EBR by NFC and PASCO.

Speaker Change: I'll now hand the call over to Crystal to provide further details.

Crystal: Thanks Jonathan. Good morning everyone. I'm going to start on slide 9 with our financial performance in the second quarter.

Crystal: Given final regulatory approval of the sale of Elk Valley Resources, or EBR, was not received until July 4th, we continue to report EBR in our operating results in the second quarter. Starting in the third quarter of 2024, EBR results will be presented as discontinued operations.

Crystal J. Prystai: There are a number of significant accounting and presentation items that impacted our first quarter results, and these continue to impact our results in the second quarter. Consistent with our reporting in Q1, our second quarter financial statements reflect the 23% minority ownership in EBR by NFC and POSCO, and we continue to consolidate 100% of EBR's production and sales volume, revenue, gross profit, and EBITDA given our controlling shareholding position. Our profit attributable to shareholders is based on our 77% ownership of EBR.

Crystal: There are a number of significant accounting and presentation items that impacted our first quarter results, and these continue to impact our results in the second quarter.

Crystal: Consistent with our reporting in Q1, our second quarter financial statements reflect the 23% minority ownership in EBR by NSC and POSCO, and we continue to consolidate 100% of EBR's production and sales volumes, revenue, gross profit, and EBITDA given our controlling shareholding position.

Crystal Prystai: And we continue to consolidate 100% of EBR's production and sale volume, grabbing you gross profit and EBITDA given our controlling share willing positions. Our profit attributable to shareholders is based on our 77% ownership of EBR. It's the remainder of EBR profit attributable to non-controlling interest. It's reduced our profit attributable to shareholders and related UPS compared to the same period last year. We continue to operate the steel making cool business in the second quarter and retain all cash flow from EBR until completion of the sale of our remaining 77% interested EBR in Gled Corps on July 11, 2024.

Crystal J. Prystai: It's the remainder of EBR's profit attributable to non-controlling interest, which is a reduction of our profit attributable to shareholders and related EPS compared to the same period last year. We continue to operate the scale-making coal business in the second quarter and retain all cash flows from EBR until completion of the sale of our remaining 77% interest in EBR to Glencore on July 11, 2024. Our finance expense and depreciation and amortization expense have both increased compared to the same period last year, as we are depreciating QB assets and no longer capitalizing interest on the project starting in 2022.

Crystal: Our profit attributable to shareholders is based on our 77% ownership of EBR, if the remainder of EBR are profit attributable to non-controlling interests. This reduced our profit attributable to shareholders and related EPS compared to the same period last year.

Crystal: We continue to operate the steelmaking coal business in the second quarter and retain all cash flows from EBR until completion of the sale of our remaining 77% interest in EBR to Glencore on July 11, 2024.

Crystal Prystai: Our finance expense and depreciation and advertising expense have both increased compared to the same period last year as we are depreciating QB assets and no longer capitalizing interest on the project starting in 2024. Our solid financial performance in the second quarter reflects record copper production and strong copper crisis as well as strong steel making cool sale volume, which were partially offset by higher depreciation, amortization and finance expense, due to the QB wrap-up and the non-controlling interest resulting from the minority sale of EBR, NSC and PASCO as I outlined earlier. We've returned a total of 340.6 million shareholders in the quarter, including 282 million in share buybacks, executed under the 500 million dollar return, previously authorized by the board following receipt of the NSC proceeds, and we paid 664 million of quarterly base dividends.

Crystal: Our finance expense and depreciation and amortization expense have both increased compared to the same period last year as we are depreciating QB assets and no longer capitalizing interest on the project starting in 2024.

Crystal J. Prystai: Our solid financial performance in the second quarter reflects record copper production and strong copper prices, as well as strong steelmaking cold sales volumes, which were partially offset by higher depreciation, amortization, and finance expense due to the QB ramp-up and the non-controlling interest resulting from the minority sale of EBR to NSC and POSCO, as I outlined earlier. We returned a total of $346 million to shareholders in the quarter, including $282 million in share buybacks executed under the $500 million return previously authorized by the Board following receipt of the NFC proceeds, and we paid $664 million in quarterly base dividends.

Crystal: Our solid financial performance in the second quarter reflects record copper production and strong copper prices.

Crystal: As well as strong steel making cold sales volumes, which were partially offset by higher depreciation, amortization and finance expense due to the QB ramp up and the non-controlling interest resulting from the minority sale of EBR to NSC and POSCO as I outlined earlier.

Crystal: We returned a total of $346 million to shareholders in the quarter, including $282 million in share buybacks executed under the $500 million return previously authorized by the Board following receipt of the NFC proceeds.

Crystal J. Prystai: Through the end of June, we had executed $363 million of the board-authorized $500 million share buyback. Slide 10 summarizes the key drivers of our financial performance in the quarter. The increase in adjusted EBITDA in the quarter compared to the same period last year was primarily driven by higher pricing adjustments, primarily for copper, but also for zinc; increased sales volumes for copper with record quarterly production, as well as steelmaking coal sales volumes at the top end of our guidance range, and the positive impact of a weaker Canadian dollar. These items were partially offset by higher operating costs across our business and lower steelmaking coal prices.

Crystal Prystai: For the end of June, we had executed 365 million of the board authorized 500 million dollars share buybacks.

Crystal: And we paid $664 million of quarterly-based dividends.

Crystal: Through the end of June , we had executed $363 million of the board-authorized $500 million share buyback.

Crystal Prystai: Clyde 10 summarizes the key drivers of our financial performance in the quarter. The increase in the Justin G. B. Dawd in the quarter compared to the same period last year was primarily driven by higher pricing adjustments, primarily for copper, but also for zinc. Increased sales volumes for copper, which record quarterly production, as well as steel making coal sales volumes at the top end of our guidance range, and the positive impact of a weaker Canadian dollar. These items were partially offset by higher operating costs across our business and lower steel making coal prices. We remain highly focused on managing our controllable operating costs.

Crystal: Slide 10 summarizes the key drivers of our financial performance in the quarter.

Crystal: The increase in adjusted EBITDA in the quarter compared to the same period last year was primarily driven by higher pricing adjustments, primarily for copper, but also for zinc.

Crystal: Increased sales volumes for copper with record quarterly production, as well as steelmaking coal sales volumes at the top end of our guidance range, and the positive impact of a weaker Canadian dollar.

Crystal: These items were partially offset by higher operating costs across our business and lower steelmaking coal prices.

Crystal Prystai: Higher overall operating costs in the quarter reflect elevated QB operating costs, as well as inflation that is expected to persist throughout 2024, and was contemplated in our guidance for sustaining capital and unicorns. Added expected QB cost were elevated in the first half of year due to alternative shipping arrangements, ramp up of the Millidism plant and lower volumes as ramp up of production continues.

Crystal J. Prystai: We remain highly focused on managing our controllable operating costs. Higher overall operating costs in the quarter reflect elevated QB operating costs, as well as inflation that is expected to persist throughout 2024 and was contemplated in our guidance for sustaining capital and unit costs. As expected, QB costs were elevated in the first half of the year due to alternative shipping arrangements, ramp-up of the malignant implant, and lower volumes as ramp-up of production continued.

Crystal: We remain highly focused on managing our controllable operating costs. Higher overall operating costs in the quarter reflect elevated QB operating costs, as well as inflation that is expected to persist throughout 2024 and was contemplated in our guidance for sustaining capital and unit costs.

Crystal: As expected, QB costs were elevated in the first half of the year due to alternative shipping arrangements, ramp-up of the Melinda's Implant, and lower volumes as ramp-up of production continues.

Crystal Prystai: Now, turning to each of our business units in greater detail and starting with copper on slide 11. Overall, our gross profit of four depreciation and our taxation in copper increased 118% in the quarter compared to the same period last year, reflecting a significant increase in the copper price in the quarter, and substantially higher sales volumes, partially offset by elevated QB operating costs as production ramp-up continues. Spot copper prices hit a record high of US $4.92 per pound at the end of May, and our realized copper price in the second quarter was US $4.44 per pound, up 17% compared to the same period last year.

Crystal J. Prystai: Now turning to each of our business units in greater detail, starting with Conger on slide 11. Overall, our gross profit before depreciation, amortization, and copper increased 118% in the quarter compared with the same period last year, reflecting a significant increase in the copper price in the quarter and substantially higher sales volumes, partially offset by elevated QB operating costs as production ramp-up continues. Spot copper prices hit a record high of U.S. $4.92 per pound at the end of May, and our realized copper price in the second quarter was US $4.44 per pound, up 17% compared to the same period last quarter.

Crystal: Now turning to each of our business units in greater detail and starting with Conger on slide 11.

Speaker Change: Overall, our gross profit before depreciation and amortization in copper increased 118% in the quarter compared with the same period last year, reflecting a significant increase in the copper price in the quarter and substantially higher sales volumes.

Speaker Change: Partially offset by elevated QB operating costs as production wrap-up continues.

Speaker Change: Spot copper prices hit a record high of US$4.92 per pound at the end of May, and our realized copper price in the second quarter was US$4.44 per pound, up 17% compared to the same period last year.

Crystal Prystai: The ramp up of QB drove our record quarterly copper production up 71% from the same period last year, and we also had higher production at Highland Valley and add to me now. This was partially offset by lower production at Carving down the coil due to water restrictions as a result of ongoing extreme drought conditions. The water restrictions improved during the second quarter and are expected to continue to improve in the second half of this year. As expected, our cost of sales was higher year over year as QB operations ramp up and we record depreciation of QB's operating assets.

Crystal J. Prystai: The ramp-up of QB drove our record quarterly copper production up 71% from the same period last year, and we also had higher production at Highland Valley and Antonina. However, this was partially offset by lower production at Carmen de Andecoyo due to water restrictions as a result of ongoing extreme drought conditions.

Speaker Change: The ramp up of QB drove our record quarterly copper production up 71% from the same period last year. And we also had higher production at Highland Valley and Antonina.

Speaker Change: This was partially offset by lower production at Carmen de Andecoyo due to water restrictions as a result of ongoing extreme drought conditions.

Crystal J. Prystai: The water restrictions improved during the second quarter and are expected to continue to improve in the second half of this year. As expected, our cost of sales was higher year over year as QB operations ramped up, and we record depreciation of QB's operating assets. Excluding QB, our net cash unit costs were U.S. $1.82 per pound, or U.S. $0.10 per pound lower than the same period last year, as a result of lower U.S. dollar denominated operating costs and lower smelter processing charges, partly offset by reducing by-product credits per match.

Speaker Change: The water restrictions improved during the second quarter and are expected to continue to improve in the second half of this year.

Speaker Change: As expected, our cost of sales was higher year over year as QB operations ramped up and we record depreciation of QB's operating assets.

Crystal Prystai: Excluding QB, our net cash union cost for US $1.82 per pound, or US $10 per pound lower than the same period last year, as a result of lower US $1.08 operating cost, and lower smelter processing charges, partly offset by reducing five product credits for matching up. Looking ahead, as Jonathan outlined, we have updated our 2024 annual copper available in production guidance and our unit cost guidance for the full year for fluxing changes to QB guidance. We revised our copper production guidance to 435 to 500,000 tons from 465 to 540,000 tons, which still represents over 55% copper growth year over year at the midpoint.

Speaker Change: Excluding QB, our net cash unit costs were U.S. $1.82 per pound or U.S. $0.10 per pound lower than the same period last year.

Speaker Change: As a result of lower U.S. dollar-denominated operating costs and lower smelter processing charges, partly offset by reducing by-product credits from Antenna.

Crystal J. Prystai: Looking ahead, as Jonathan outlined, we have updated our 2024 annual copper and molybdenum production guidance and our unit cost guidance for the full year, reflecting changes to QB guidance. We've revised our copper production guidance to 435 to 500,000 tons from 465 to 540,000 tons, which still represents over 55% copper growth year over year at the midpoint. Our production guidance religion is now 4.3 to 5.5 thousand tons from 5.4 to 6.7 thousand tons.

Speaker Change: Looking ahead, as Jonathan outlined, we have updated our 2024 Annual Copper and Molybdenum Production Guidance and our Unit Cost Guidance for the full year, reflecting changes to QB Guidance.

Jonathan Price: We've revised our copper production guidance to 435,000-500,000 tonnes from 465,000-540,000 tonnes, which still represents over 55% copper growth year-over-year at the midpoint.

Crystal Prystai: Our original production guidance is now 4.3 to 5.5,000 tons from 540 to 6.7,000 tons. and our next cash unit cost guidance has been revised to US $1.90 to 2.30 per pound from US $1.85 to 2.25 per pound, primarily as a result of lower momentum production, as well as lower copper production volumes.

Jonathan Price: Our Molybdenum production guidance is now 4.3 to 5.5 thousand tons from 5.4 to 6.7 thousand tons.

Crystal J. Prystai: And our net cash unit cost guidance has been revised to U.S. $1.90 to $2.30 per pound from U.S. $1.85 to $2.25 per pound, primarily as a result of lower molybdenum production, as well as lower copper production volume.

Jonathan Price: And our net cash unit cost guidance has been revised to U.S. $1.90 to $2.30 per pound from U.S. $1.85 to $2.25 per pound, primarily as a result of lower molybdenum production as well as lower copper production volumes.

Crystal J. Prystai: Looking at our sink business on flight balls, we had another strong quarter at Reddock with increased sink and less production, reflecting higher grade and recovery. Sink sales of 53,000 tons were in line with guidance for the second quarter. However, Reddock's net cash unit costs were up US $4 per pound; we had higher costs for consumables and an increase in smell to processing charges. At Trail, we're finding production was impacted by unplanned maintenance, and we're finding lead and byproduct production was significantly lower, reflecting the plan, 70-day shutdown for the replacement of the kiss set boiler. The project was defeated on time and on budget, and the boiler has been operating very well since the restart.

Crystal J. Prystai: Looking at our zinc business on slide 12, we had another strong quarter at Red Dog with increased zinc and lead production, reflecting higher grade and recovery. Sink sales of 53,000 tons were in line with guidance for the second quarter.

Jonathan Price: Looking now at our zinc business on slide 12.

Jonathan Price: We had another strong quarter at Red Dog with increased zinc and lead production reflecting higher grade and recovery. Zinc sales of 53,000 tonnes were in line with guidance for the second quarter.

Crystal J. Prystai: However, Red Dog's net cash unit costs were up US $0.04 per pound due to a higher cost for consumables and an increase in smelter processing charges. At Trail, refined zinc production was impacted by unplanned maintenance, and refined lead and by-product production was significantly lower, reflecting the planned 70-day shutdown for the replacement of the Kivset boiler. The project was completed on time and on budget, and the boiler has been operating very well since the restart.

Jonathan Price: However, Red Dog's net cash unit costs were up US $0.04 per pound to a higher cost for consumables and an increase in smelter processing charges.

Jonathan Price: At Trail, refined zinc production was impacted by unplanned maintenance, and refined lead and by-product production was significantly lower, reflecting the planned 70-day shutdown for the replacement of the Kivset boiler.

Jonathan Price: The project was completed on time and on budget, and the boiler has been operating very well since the restart.

Crystal Prystai: Overall, our growth profit before depreciation and adaptation in vain decreased 53% in the quarter primarily due to reduced refined metal sales and sink premiums at Trail and lowering sales volumes for Reddock compares to sink grade last year. The shipping seems that Reddock commenced on July 12th, and we expect Reddock sink and concentrate sales of 250 to 290,000 tons in the third quarter, reflecting our normal seasonality of sales. Our 2024 annual sink and concentrate production guidance of 550 to 630,000 tons and our net cash unit cost guidance of US 55 to 65 sets per pound are both unchanged.

Crystal J. Prystai: Overall, our gross profit before depreciation and advertising in zinc decreased 53% in the quarter, primarily due to reduced refined metal sales and zinc premiums at trail and lower zinc sale volumes for Red Dog compared to the same period last year. The shipping season at Red Dog commenced on July 12, and we expect Red Dog Banking Concentrate sales of 250,000 to 290,000 tonnes in the third quarter, reflecting our normal seasonality of sales.

Jonathan Price: Overall, our gross profit before depreciation and advertisement in zinc decreased 53% in the quarter, primarily due to reduced refined metal sales and zinc premiums at Trail and lower zinc sales volumes for Red Dog compared to the same period last year.

Jonathan Price: The shipping season at Red Dog commenced on July 12th, and we expect Red Dog Banking Concentrate sales of 250,000 to 290,000 tonnes in the third quarter, reflecting our normal seasonality of sales.

Crystal J. Prystai: Our 2024 Annual Zinc and Concentrate Production Guidance of 565 to 630,000 tonnes and our Net Cash Unit Cost Guidance of US $0.55 to $0.65 per pound are both unchanged. At Trail Operations, our 2024 Annual Refined Sink Production Guidance is unchanged at $275,000 to $290,000. Signing out is Jill Lincoln-Poole on slide 13.

Jonathan Price: Our 2024 Annual Zinc and Concentrate Production Guidance of 565,000 to 630,000 tonnes and our Net Cash Unit Cost Guidance of US $0.55 to $0.65 per pound are both unchanged.

Crystal Prystai: At Trail operations, our 2024 annual refining sink production guidance is unchanged at 275 to 990,000 tons.

Jonathan Price: At Trail Operations, our 2024 Annual Refined Sink Production Guidance is unchanged at 275 to 290,000 tonnes.

Crystal Prystai: For now, it's killing people on slide 13. This March our last full quarter of our growing on EBR and we are finishing on a high note. Sales volumes in the quarter of 6.4 million tons were at the top end of our guidance range and still making pull prices decline, but they remain strong. And despite two major plans made in shutdown, we achieved very strong production across all of our plants. Adjusted site cash costs a sale per ton of Canadian $112 dollars for higher than the same period last year through my higher spend a labor contractors and diesel and less favorable mining drivers.

Crystal J. Prystai: This marks our last full quarter of reporting on EBR, and we are finishing on a high note. Sales volumes in the quarter of 6.4 million tonnes were at the top end of our guidance range and scale, making pull prices decline, but they remain strong. And despite two major planned maintenance shutdowns, we achieved very strong production across all of our plants. However, adjusted site cash costs of sales per ton of Canadian $112 were higher than the same period last year, driven by higher spend on labor, contractors, and diesel and less favorable mining drivers.

Jonathan Price: Right now it's Jill Lincoln Kohl on slide 13.

Jill Lincoln-Poole: This marks our last full quarter of reporting on EBR and we are finishing on a high note.

Speaker Change: Sales volumes in the quarter of 6.4 million tonnes were at the top end of our guidance range and steelmaking coal prices declined but they remained strong.

Speaker Change: And despite two major planned maintenance shutdowns, we achieved very strong production across all of our plants.

Speaker Change: Adjusted site cash cost of sales per ton of Canadian $112 were higher than the same period last year, driven by higher spend on labour, contractors and diesel, and less favourable mining drivers.

Crystal Prystai: Given the ongoing shortage of skilled trade labor, we continue to have increased her lives on contractors. Transportation costs were Canadian $1 per ton lower than the same period last year due to lower emerged charges as a result of continued stable vessel Qs. Overall, we generated $1.1 billion in gross profit before the creation and amortization, reflecting lower realized feeling full prices and higher unit operating costs, our sales volumes and the positive impact of a stronger U.S. dollar.

Crystal J. Prystai: Given the ongoing shortage of skilled trade labor, we continue to have increased reliance on contractors. Transportation costs were Canadian $1 per tonne lower than the same period last year due to lower demerit charges as a result of continued stable vessel queues.

Speaker Change: Given the ongoing shortage of skilled trade labor, we continue to have increased reliance on contractors.

Speaker Change: Transportation costs were Canadian $1 per tonne lower than the same period last year due to lower demerit charges as a result of continued stable vessel queues.

Crystal J. Prystai: Overall, we generated $1.1 billion in gross profit before depreciation and amortization, reflecting lower realized fuel making pool prices and higher unit operating costs, partially offset by higher sales volumes and the positive impact of a stronger US dollar. Turning now to the sale of EBR and our use of proceeds from the transaction. Starting on slide 15.

Speaker Change: Overall, we generated $1.1 billion in gross profit before depreciation and amortization, reflecting lower realized fuel making pool prices and higher unit operating costs, partially offset by higher sales volumes and the positive impact of a stronger US dollar.

Crystal Prystai: Turning now to the sale of EBR and our use of proceeds from the transaction. Starting on slide 15, we completed the sale of the remaining 770% interest in EBR to Climb 4 on July 11 and received total transaction proceeds of 7.3 billion U.S. Subject to customer and building a job. If we try the option as a child, it's left to transform tack into a pure play energy transition metal company. The proceeds position tack for our next phase of responsible growth and value creation. And as always, we remain committed to our discipline to travel allocation framework on slide 16.

Crystal J. Prystai: We completed the sale of the remaining 77% interest in EBR to Glencore on July 11, and received total transaction proceeds of $7.3 billion, subject to customary closing adjustments. This transaction is a catalyst to transform Tech into a pure play energy transition metals company, and the proceeds position Tech for our next phase of responsible growth and value creation. And, as always, we remain committed to our disciplined capital allocation framework on slide 16. This has guided our deployment of the proceeds from the transaction.

Speaker Change: Turning now to the sale of EDR and our use of proceeds from the transaction.

Speaker Change: Starting on slide 15.

Speaker Change: We completed the sale of the remaining 77% interest in EDR to Glencore on July 11th and received total transaction proceeds of $7.3 billion USD subject to customary closing adjustments.

Speaker Change: This transaction is a catalyst to transform Teck into a pure play energy transition metals company.

Speaker Change: The proceeds position TEP for our next phase of responsible growth and value creation.

Speaker Change: And as always, we remain committed to our disciplined capital allocation framework on slide 16.

Crystal J. Prystai: Disguided or deployment of the proceeds from the transaction. We have a discipline approach that deployment of capital and the aims to balance our growth with cash returns to shareholders, while maintaining strong balance sheets through the single.

Crystal J. Prystai: We have a disciplined approach to the deployment of capital, and we aim to balance our growth with cash returns to shareholders while maintaining a strong balance sheet through the cycle. Slide 17 summarizes how we are allocating transactions. He announced the largest return of cash to shareholders in tax history, with approximately $3.5 billion in total share buybacks and dividends. The share buyback of up to $2.75 billion is in addition to the $500 million share buyback previously authorized following the minority sale of EBR to NFC Impossible.

Speaker Change: This guided our deployment of the proceeds from a transaction.

Speaker Change: We have a disciplined approach to the deployment of capital, and we aim to balance our growth with past returns to shareholders while maintaining a strong balance sheet through the cycle.

Crystal Prystai: Slide 17 summarizes how we are allocating transaction proceeds. He announced the largest return of cash to shareholders in tax history, with approximately 3.5 billion in total share buybacks and dividends. To share buyback, about to 2.75 billion is in addition to the 5 million dollar share buyback, previously authorized, following the minority sale of the EBR to add its theme postcode. And through the end of June, we had some included $363 million out of $500 million by that. The board also authorized a one-time supplemental dividend of 50 cents per share for approximately $250 million, which will be paid on September 27th, in addition to our quarterly based dividend of 12.5 cents per share.

Speaker Change: Slide 17 summarizes how we are allocating transaction proceeds.

Speaker Change: We announced the largest return of cash to shareholders in tax history, with approximately $3.5 billion in total share buybacks and dividends.

Speaker Change: The share buyback of up to $2.75 billion is in addition to the $500 million share buyback previously authorized following the minority sale of EBR to NFC and POSCO.

Crystal J. Prystai: And through the end of June, we had completed $363 million of the $500 million buyback. The Board also authorized a one-time supplemental dividend of $0.50 per share, or approximately $250 million, which will be paid on September 27, in addition to our quarterly base dividend of $0.125 per share.

Speaker Change: And through the end of June , we have completed $363 million of the $500 million buyback.

Speaker Change: The Board also authorized a one-time supplemental dividend of $0.50 per share, or approximately $250 million, which will be paid on September 27, in addition to our quarterly base dividend of $0.125 per share.

Crystal Prystai: We announced a debt reduction program of up to US $2 billion and launched a cash tender offer of US $1.25 billion for our outstanding notes that was subsequently outsized. On July 15th, we completed the purchase of approximately US$1.4 billion of our public notes, and we are assessing further debt reduction opportunities. We expect to pay costs and taxes related to the transaction of approximately 750 million US in early 2020, but the remaining net proceeds from the transaction will be retained to fund our near-term cover growth. Once QB is up full capacity, we have a pathway to increase our cover production by a further 30% starting as early as 2028 through our near-term projects, even through the line-life extension at HVC, staffer-nell, technicalists, and QB optimization and debauto acting.

Crystal J. Prystai: We announced a debt reduction program of up to U.S. $2 billion and launched a cash tender offer of U.S. $1.25 billion for our outstanding notes that was subsequently outsized. On July 15th, we completed the purchase of approximately U.S. $1.4 billion of our public notes, and we are assessing further debt reduction opportunities. We expect to pay costs and taxes related to the transaction of approximately $750 million in early 2025. The remaining net proceeds from the transaction will be retained to fund our near-term copper growth.

Speaker Change: We announced a debt reduction program of up to U.S. $2 billion and launched a cash tender offer of U.S. $1.25 billion for our outstanding notes that was subsequently outsized.

Speaker Change: On July 15th, we completed the purchase of approximately U.S. $1.4 billion of our public notes and we are assessing further debt reduction opportunities.

Speaker Change: We expect to pay costs and taxes related to the transaction of approximately US$750 million in early 2025.

Crystal J. Prystai: Once QB is at full capacity, we have a pathway to increase our copper production by a further 30% starting as early as 2028 for our near-term projects. These include the Modern Life Extension at HBC, Saffron Elk, Clown Necklace, and QB Optimization and DeBottle at. Our attributable capital cost for these projects is estimated to be US $3.3 to $3.6 billion. Turning now to slide 18 in our resilient balance, following the close of the EBR transaction, we are now in a net cash position, including $8.7 billion in cash as of today.

Speaker Change: The remaining net proceeds from the transaction will be retained to fund our near-term copper growth.

Speaker Change: Once QB is at full capacity, we have a pathway to increase our copper production by a further 30% starting as early as 2028 through our near-term projects.

Speaker Change: These include the Mine Life Extension at HBC, Saffron Elk, San Nicolas, and QB Optimization and De-Bottlenecking. Our attributable capital cost for these projects is estimated to be U.S. $3.3 to $3.6 billion.

Crystal Prystai: Our attributable capital cost for these projects was estimated to be US$3.3 to $3.6 billion.

Crystal Prystai: Starting now is by 18 in our resilient balance sheet. Following the close of BBR transaction, we are now in a net cash position, including 8.7 billion cash, as of today. With the purchase of US $1.4 billion of our public notes on July 15th through the cash $1.1 billion. Our total debt of staffing, following the cash tender offer, is US $4.3 billion, and our net cash position is currently $2.9 billion. We remain to focus on the 18, our investment-grade credit measure, supported by our resilient balance sheet. I'm going forward; we expect to generate higher interest income by the additional cash that we're holding on the balance sheet.

Speaker Change: Right now is slide 18 in our Resilient Balance Sheet.

Speaker Change: Following the close of the EBR transaction, we are now in a net cash position, including $8.7 billion in cash as of today.

Crystal J. Prystai: With the purchase of US $1.4 billion of our public notes on July 15 through the cash tender offer, we have decreased our outstanding term notes to US $1.1 billion. Our total debt outstanding following the cash tender offer is US $4.3 billion, and our net cash position is currently US $2.9 billion.

Speaker Change: With the purchase of U.S. $1.4 billion of our public notes on July 15th through the cash tender offer, we have decreased our outstanding term notes to U.S. $4.1 billion.

Speaker Change: Our total debt outstanding following the CashTender offer is US$4.3 billion and our net cash position is currently CAD$2.9 billion.

Crystal J. Prystai: We remain focused on maintaining our investment grade credit metrics supported by our resilient balance, and going forward, we expect to generate higher interest income from the additional cash that we're holding on the balance. At the same time, our annual requirements for sustaining capital and capitalized stripping have declined to $1 to $1.2 billion following the sale of EBR. QB is expected to generate significant additional EBITDA and free cash flow at full production, which will further build on its financial resilience.

Speaker Change: We remain focused on maintaining our investment grade credit metrics supported by our resilient balance sheet.

Speaker Change: And going forward, we expect to generate higher interest income by the additional cash that we're holding on a balance sheet.

Crystal J. Prystai: At the same time, our annual requirements for a sustaining capital and top-line shipping have declined to 1, to 1.2 billion, all in the sale of BBR. You'll be as expected to generate significant additional EBITDA and free cash flow at full production, which will further build on the financial resilience. and Samantha Copper continues to rise and constrains a new supply for fifths, the value of high-quality, low-cost, copper assets will only increase. Overall, track is strongly positioned to execute on our strides for responsible growth and value creation.

Speaker Change: At the same time, our annual requirements for sustaining capital and capitalized shipping have declined to $1 to $1.2 billion following the sale of EBR.

Speaker Change: QB is expected to generate significant additional EBITDA and free cash flow at full production, which will further build on the financial resilience.

Crystal J. Prystai: As demand for copper continues to rise and constraints on new supply persist, the value of high-quality, low-cost copper assets will only increase. Overall, Teck is strongly positioned to execute on our strategy for responsible growth and value creation.

Speaker Change: As demand for copper continues to rise and constraints on new supply persist, the value of high-quality, low-cost copper assets will only increase.

Speaker Change: Overall, Teck is strongly positioned to execute on our strategy for responsible growth and value creation.

Jonathan Price: And that will turn it back over to Jonathan. Thanks, Crystal. So, going on to our portfolio transformation on slide 20. But I said earlier, Tank is now entirely focused on providing metals that are essential to global developments in the energy transition. I would like to take a moment to reflect on some of the strategic developments that we executed on over the past couple of years to get to this point. Last year, we started to re-focus our portfolio towards energy transition metals through the solar-interesting Fort Hills, marking our exit from the oil-sounds business. We also modernise our share structure with the introduction of a sunset for our plaza shares, reflecting our commitments to strong corporate governance and acting in the best-infensible shelves.

Jonathan Price: Thanks Crystal. So, going on to our Portfolio Transformation on slide 20. As I said earlier, Teck is now entirely focused on providing metals that are essential to global development and the energy transition. I would like to take a moment to reflect on some of the strategic developments that we've executed on over the past couple of years to get to this point. Last year we started to refocus our portfolio towards energy transition metals through the sale of our interest in Fort Hills, arcing our exit from the oil sales business.

Speaker Change: With that, I'll turn it back over to Jonathan.

Jonathan Price: Thanks Crystal. So going on to our Portfolio Transformation on slide 20.

Jonathan Price: As I said earlier, Teck is now entirely focused on providing metals that are essential to global development and the energy transition.

Jonathan Price: We've also modernized our share structure with the introduction of a sunset for our Class A shares, reflecting our commitment to strong corporate governance and acting in the best interests of all shareholders. At the same time, we continue to advance the project in our industry-leading copper growth pipeline. Two key milestones were entering into joint ventures at New Range in partnership with PolyMet and at San Nicolas in partnership with AgnicoEagle, which help us to advance and de-risk those projects. This year, we completed construction of QV, which is the driver for our near-term growth. UB is a transformational Tier 1 asset for tech, with a long life, a competitive cost position, and meaningful expansion opportunities.

Speaker Change: I would like to take a moment to reflect on some of the strategic developments that we've executed on over the past couple of years to get to this point.

Jonathan Price: And it will be a cornerstone of our copper portfolio for decades to come. And finally, we've completed the sale of our steel-making culvert, transforming Tech into a pure play energy transition balance company. As Crystal has just discussed, with the significant transaction proceeds in hand, we've announced significant cash returns to shareholders and taken steps to ensure that Teck is strongly positioned to capitalise on the growing demand for copper. We remain committed to balancing our growth with further cash returns to shareholders.

Speaker Change: Last year we started to refocus our portfolio towards energy transition metals through the sale of our interest in Ford Hills, arcing our exit from the oil sands business.

Speaker Change: We've also modernised our share structure with the introduction of a sunset for our Class A shares, reflecting our commitment to strong corporate governance and acting in the best interests of all shareholders.

Jonathan Price: The same time we continue to advance the projects in our industry-leading copper growth pipeline. Two key milestones were entering into joint benches in new range, in partnership with Polymene, and it sounded like a partnership with a Nico Eagle. It's helped us to advance and de-risk those projects. This year, we completed construction of QB, which is the driver for our years' here growth. You'd be in the transformational tier one aspect of tech with a long-life, positive cost position, and meaningful expansion opportunities, and it will be a cornerstone of our copper portfolio decades to come. And finally, we've completed the solar-still-laking coal business, transforming tech into a pure-play energy transition balance company.

Speaker Change: At the same time, we continue to advance the projects in our industry-leading copper growth pipeline.

Speaker Change: Two key milestones were entering into joint ventures at New Range in partnership with PolyMet and at San Nicolas in partnership with AgnicoEagle, which help us to advance and de-risk those projects.

Speaker Change: This year we completed construction of QV, which is the driver for our near-term growth.

Speaker Change: UB is a transformational Tier 1 asset for tech with a long life, competitive cost position and meaningful expansion opportunities, and it will be a cornerstone of our copper portfolio for decades to come.

Speaker Change: And finally, we've completed the solar hostile making coal business, transforming tech into a pure play energy transition balance company.

Jonathan Price: The proposal has just discussed with a significant transaction process in how we've announced significant cash returns to shareholders and taken steps to ensure that tech is strongly positioned to capitalize on the growing demand for copper. We remain committed to balancing our growth with further cash returns to shareholders.

Speaker Change: As Crystal has just discussed, with the significant transaction proceeds in hand, we've announced significant cash returns to shareholders and taken steps to ensure that Teck is strongly positioned to capitalise on the growing demand for copper.

Jonathan Price: All of this evidence is our willingness to both set a bold strategy and critically execute against it, always with a focus on value creation. Moving on to our current portfolios, slide 21. This strategic moves that we have made are commodity mixes now 100%-based levels. We have a solid foundation of the long-life producing copper and zinc acids to generate strong cash flow today, including an emitter in Peru, by and by copper in British Columbia, and Red Dog in Alaska, and our cornerstone QB acids in Chile, which will generate strong cash flow with full production. We also have mine-life extension opportunities to maintain this foundation, including a final value and emitter in the near term.

Jonathan Price: All of this evidences our willingness to both set a bold strategy and critically execute against it, always with a focus on value creation. Moving on to our current portfolio on slide 21, with the strategic moves that we have made, our commodity mix is now 100% base level.

Speaker Change: We remain committed to balancing our growth with further cash returns to shareholders.

Speaker Change: All of this evidence is our willingness to both set a bold strategy and critically execute against it, always with a focus on value creation.

Speaker Change: Moving on to our current portfolio on slide 21.

Jonathan Price: We have a solid foundation of long life producing copper and zinc acids that generates strong cash flow today, including Antamina in Peru, Island Valley Copper in British Columbia, and Red Dog in Alaska, and our Cornerstone QB acids in Chile, which will generate strong cash flow at full production. We also have My Life Extension opportunities to maintain this foundation, including at Highland Valley and Antimena in the near term. Importantly, while our portfolio mix has changed, our focus on maximising long-term value for shareholders has not.

Speaker Change: With the strategic moves that we have made, our commodity mix is now 100% base levels.

Speaker Change: We have a solid foundation of long-life producing copper and zinc acids that generate strong cash flow today, including Antamina in Peru, Highland Valley Copper in British Columbia and Red Dog in Alaska, and our Cornerstone QB acids in Chile, which will generate strong cash flow at full production.

Speaker Change: We also have minor life extension opportunities to maintain this foundation, including at Highland Valley and Antimena in the near term.

Jonathan Price: Importantly, while our portfolio mixes change, our focus on maximizing long-term value for shareholders has not lost. We remain committed to operational excellence, ensuring we deliver the full value from our premium-based levels portfolio. Turning to our industry-leading copper growth on slide 22. Over a decade ago, tech recognised the value that could be created through a robust pipeline of copper projects. And as a result, we have created a highly valuable portfolio of actionable copper growth projects, diversified by jurisdictions and scale. Each of these will be a low-cost operation with competitive capital intensities already de-risked through strategic partnerships.

Speaker Change: Importantly, while our portfolio mix has changed, our focus on maximizing long-term value for shareholders has not.

Jonathan Price: We remain committed to operational excellence, ensuring we deliver the full value from our premium-based metals portfolio. Returning to our industry-leading copper growth on slide 22. Over a decade ago, Teck recognized the value that could be created through a robust pipeline of copper projects. As a result, we have created a highly valuable portfolio of actionable copper growth projects diversified by jurisdiction and scale. Each of these will be a low-cost operation with competitive capital intensities already de-risked through strategic partnerships. Teck is now on track to becoming a top 10 global corporate.

Speaker Change: We remain committed to operational excellence, ensuring we deliver the full value from our premium-based metals portfolio.

Speaker Change: Returning to our industry-leading copper growth of slide 22.

Speaker Change: Over a decade ago, Teck recognized the value that could be created through a robust pipeline of corporate projects.

Speaker Change: As a result, we have created a highly valuable portfolio of actionable copper growth projects diversified by jurisdiction and scale.

Speaker Change: Each of these will be a low-cost operation, with competitive capital intensities already de-risked through strategic partnerships.

Jonathan Price: And he's now on trying to become a top 10 global copper producer, but William copper production with the rank of QV, the pathway further increased production by 30% starting as early in 2028. Our near-sum copper projects are high quality, capital efficient, and low operating cost projects, which should enable us to move down the cost curve and generate strong returns. We are also exploring optimization at QV to increase production beyond design throughput capacity with minimal capital. On the on this, by the end of the year, we will develop a definitive plan for near-sum, low capital intensity due to bottlenecking the QV.

Jonathan Price: Doubling copper production with the ramp-up of QV, the pathway to further increase production by 30% starting as early as 2028. Our near-term copper projects are high quality, capital efficient, and low operating cost projects, which should enable us to move down the cost curve and generate strong returns. We are also exploring optimization of QB to increase production beyond design throughput capacity with minimal capital.

Speaker Change: Teck is now on track to becoming a top 10 global copper producer.

Speaker Change: Doubling copper production with the ramp-up of QV, the pathway to further increased production by 30% starting as early as 2028.

Speaker Change: Our near-term copper projects are high-quality, capital-efficient and low-operating cost projects, which should enable us to move down the cost curve and generate strong returns.

Speaker Change: We are also exploring optimization at QB to increase production beyond design throughput capacity with minimal capital. And beyond this, by the end of the year, we will develop a definitive plan for near-term low capital intensity debottlenecking at QB.

Jonathan Price: Beyond this, by the end of the year, we will develop a definitive plan for near-term, low-capital intensity de-bottlenecking at QB. We're progressing the life extension of Highland Valley to allow for continued production of this stable and profitable core asset for another 17 years. Next, the board will be reviewing the Zafralal project for sanction as early as the second half of 2025.

Jonathan Price: We're progressing our life extension upon a value to allow for continued production at this stable and profitable core asset for another 70 years. Export will be reviewing the DAPRADAW project for sanctions as early as the second half of 2025. This capital efficient growth project is expected to have a right payback, driven by high grades in the early years. And if something else, we continue to progress feasibility study work in our permitting application. The decision is to deliver this low capital intensity project to be expected to generate industry-leading returns. At the same time, we continue to progress our longer-dated projects to ensure that we retain a pipeline of future growth opportunities.

Speaker Change: We are progressing the life extension of Highland Valley to allow for continued production of this stable and profitable core asset for another 17 years.

Jonathan Price: This capital efficient growth project is expected to have a rapid payback driven by high grades in the early years. And at St. Nicholas, we continue to progress feasibility study work and our permitting applications, positioning us to deliver this low capital intensity project. We expect to generate industry-leading returns. At the same time, we continue to progress our longer-dated projects to ensure that we retain a pipeline of future growth opportunities. Turning to slide 23.

Speaker Change: Next Board will be reviewing the Zafralal project for sanction as early as the second half of 2025.

Speaker Change: This capital efficient growth project is expected to have a rapid payback driven by high grades in the early years.

Speaker Change: At San Nicolas, we continue to progress feasibility study work and our permitting application to position us to deliver this low-capital-intensity project that we expect to generate industry-leading returns.

Speaker Change: At the same time, we continue to progress our longer-dated projects to ensure that we retain a pipeline of future growth opportunities.

Jonathan Price: Turning to slide 23, we are continuing to create value for shareholders by driving best-in-class, safe and sustainable operational performance and project delivery, including managing costs. I'm offering you learning from the completed independent review of the QV team into our future projects. Cessing value of 3D opportunities to expand and optimize our high quality operating assets. Ensure we continue our disciplined capital allocation to generate strong returns. Executing on our well-funded, capital-efficient, near-sum copper growth projects. Violating growth with cash reserves to shareholders. Overall, I believe that tech is uniquely positioned as a pure-play energy transition metals company with both a premium portfolio of one-line cash-generating assets in well-understood jurisdictions and industry-leading copper growth.

Jonathan Price: We are continuing to create value for shareholders by driving best-in-class, safe and sustainable operational performance and project delivery, including managing costs and incorporating learnings from the completed independent review of QB2 into our future projects. Assessing value-accretive opportunities to expand and optimize our high quality operating assets, while ensuring we continue our disciplined capital allocation to generate strong returns. Executing on our well funded capital efficient near term copper growth project and balancing growth with cash returns to shareholders. Overall, I believe that Teck is uniquely positioned as a pure-play energy transition metals company with both a premium portfolio of long-life cash-generating assets in well-understood jurisdictions and industry-leading copper growth.

Speaker Change: Turning to slide 23, we are continuing to create value for shareholders by driving best in class, safe and sustainable operational performance and project delivery, including managing costs.

Speaker Change: Co-operating learnings from the completed independent review of QB2 into our future projects.

Speaker Change: Assessing value-accretive opportunities to expand and optimize our high-quality operating assets.

Speaker Change: Ensuring we continue our disciplined capital allocation to generate strong returns.

Speaker Change: Executing on our well-funded, capital-efficient, near-term copper growth projects.

Speaker Change: Finance and Growth with cash returns to shareholders.

Speaker Change: Overall, I believe that Teck is uniquely positioned as a pure-play energy transition metals company with both a premium portfolio of long-life cash-generating assets in well-understood jurisdictions and industry-leading copper growth.

Jonathan Price: We're working hard to unlock a full potential close with a focus on value creation. I believe that there is incredible value inherent within tech. I've just in terms of the quality of our assets and the deaths of our copper growth pipeline. But also our responsible and ethical approach to resource development, which is critical to our ability to realize value.

Jonathan Price: We're working hard to unlock full potential growth with a focus on value creation, and believe that there is incredible value inherent in tech, not just in terms of the quality of our assets and the depth of our copper growth pipeline but also in our responsible and ethical approach to resource development, which is critical to our ability to realize value. So to conclude, on slide 24. While we are entering an exciting new era as a pure play energy transition metals company, we remain strongly committed to our purpose and values, which remain personal to me and to all of us at Teck, that we pursue responsible growth, always focused on value creation. Our capital allocation framework continues to guide us in balancing that growth with capital to shareholders.

Speaker Change: We're working hard to unlock the full potential of growth with a focus on value creation.

Speaker Change: I believe that there is incredible value inheritment in tech, not just in terms of the quality of our assets and the depth of our copper growth pipeline, but also our responsible and ethical approach to resource development, which is critical to our ability to realize value.

Jonathan Price: So if you include on slide 24, while we are entering an exciting new era as a pure-play energy transition metals company, we remain strongly committed to our purpose and values, which remain personal to be and to all of us in tech. And then we pursue responsible growth, always focused on value creation, but capital allocation framework continues to guide us in balancing that growth with capitals in the shareholders. We are strongly conditioned to capitalise on the growing demand for copper, and we look forward to continuing to unlock significant value upside for our shareholders.

Speaker Change: So to conclude on slide 24.

Speaker Change: While we are entering an exciting new era as a pure-play energy transition metals company, we remain strongly committed to our purpose and values which remain personal to me and to all of us at Teck.

Speaker Change: We pursue responsible growth, always focused on value creation. Our capital allocation framework continues to guide us in balancing that growth with capital to shareholders.

Operator: We are strongly positioned to capitalise on the growing demand for copper, and we look forward to continuing to unlock significant value upside for our shareholders. With that, thank you, and Operator, please open the line for questions. Certainly. To join the question queue, please press star then one on your telephone keypad. You'll hear a tone acknowledging your request. If you're using a speakerphone, please ensure you lift the handset before pressing any keys. We ask that you limit yourself to one question and one follow-up. If you wish to remove yourself from the question queue, you may press star then two.

Speaker Change: We are strongly positioned to capitalise on the growing demand for copper, and we look forward to continuing to unlock significant value upside for our shareholders.

Operator: And with that, thank you, and operator, please open the line for questions.

Operator: Certainly, to join the question queue, please press star, then one on your telephone keypad. You'll hear a tone acknowledging your request.

Speaker Change: With that, thank you and operator please open the lines of questions.

Speaker Change: To join the question queue, please press star then 1 on your telephone keypad. You'll hear a tone acknowledging your request. If you're using a speakerphone, please ensure you lift the handset before pressing any keys.

Operator: If you're using a speaker phone, please ensure you list the house that people are pressing in queue. We ask that you limit yourself to one question and one follow-up. If you wish to remove yourself from the question queue, you may press star, then two.

Speaker Change: We ask that you limit yourself to one question and one follow up. If you wish to remove yourself from the question queue, you may press star then two.

Orest Wowkodaw: Our first question is from all of us to walk it out. Let's go, Shabank. Please go ahead. By good morning, let's see the progress of QB2. I'm wondering, can you give us some more color on this localized geotech issue, and specifically what does it mean for grade profile for each two on copper? And then I'm also wondering if it'll impact 2025 grade.

Operator: Our first question is from Orest Wowkodaw with Scotiabank. Please go ahead. Hi, good morning.

Orest Wowkodaw: Nice to see the progress at QB2. I was wondering if you could give us some more color on this localized geotech issue and specifically, what does it mean for the grade profile for H2 on copper? And then I'm also wondering if it'll impact 2025 grades.

Speaker Change: Our first question is from Orest Wowkodaw with Scotiabank. Please go ahead.

Orest Wowkodaw: Hi, good morning. Nice to see the progress at QB2.

Orest Wowkodaw: I was wondering if you can give us some more color on this localized geotech issue and specifically what does it mean for grade profile for H2 on copper and then I'm also wondering if it'll impact 2025 grade.

Jonathan Price: Yeah, thanks, Oreston. We are very pleased with the ongoing progress at QB2, the quarter-over-quarter improvement again. As we said, he's very encouraging.

Jonathan Price: Yeah, thanks, Orest. We are very pleased with the ongoing progress at QB2. The quarter-over-quarter improvement, as we said, is very encouraging. What I'm going to do is hand over to Sherhzad Bharmal, our SVP of operations. He'll give you a bit of an overview as to where we are now and the outlook for the second half of the year.

Speaker Change: Thanks, Orest. We are very pleased with the ongoing progress at QB2. The quarter-over-quarter improvement again, as we said, is very encouraging. What I'm going to do is hand over to Sherhzad Bharmal, our SVP of Operations.

Sherhzad Bharmal: What I'm going to do is hand over to Shab. Bar Malaw, our SBP and operations. He'll give you a bit of an overview as to where we are now, and the outlook for the second often build.

Sherhzad Bharmal: He'll give you a bit of an overview as to where we are now and the outlook for the second half of the year.

Jonathan Price: Perhaps best if I give a broad overview of the status and the accomplishments of QV to date. As we published, QV continued to have month-over-month improvement in performance and copper production over the last quarter. April was at 14,600 tons, May came in at 17,300, and then June at 19,300 tons.

Sherhzad Bharmal: Thanks, Oreston. Perhaps best to find the environmental review of the status and the accomplishments of QB2 date. As we published, to be continued to have a month-a-a-month-a-month improvement in performance, can pop a production over the last quarter. April was at 14,600 tons. May came in at 17,300 tons and June at 19,300 tons. And the operations design is robust, and no critical issues have been identified. To put recovery and head grades, of course, the three factors that drive copper production. And we have continued to make excellent progress and throughput. And over the last while, we have run between 90 to 95 percent of design rates.

Sherhzad Bharmal: Thanks, Orson. Perhaps best if I give a broad overview of the status and the accomplishments of QB to date.

Sherhzad Bharmal: As we published, should we continue to have month-over-month improvement in performance and copper production over the last quarter? April was at 14,600 tons, May came in at 17,300, and then June at 19,300 tons.

Sherhzad Bharmal: And the operation design is robust, and no critical issues have been identified. Throughput, recovery, and head grades are, of course, the three factors that drive copper production. We have continued to make excellent progress in throughput, and over the last while, we have run between 90 to 95% of design rates. So I'm very confident of reaching full rates here over the next coming months, and the focus here is really on stable operations with improved online time.

Speaker Change: and many of the operations design is robust and no critical issues have been identified.

Sherhzad Bharmal: Tupac, recovery, and head grades are of course the three factors that drive copper production.

Speaker Change: and we have continued to make excellent progress and throughput and over the last while we have run between 90 to 95 percent of design rates so very confident of reaching full range here over the next coming months.

Sherhzad Bharmal: So very confident of reaching for the rate here over the next coming months. And focus here is really on stable operations with improved online time. On recovery, we are managing through higher amounts of plays that end of transition or between the supergene and hydrogen mineralization. And we are making progress. And this has been done with selecting different reagents. I'm tuning the dosing. And, of course, modify some other operating parameters. And as a result, a few points behind the recovery of when the adjustments and most stable operations, which also contribute to recovery issues, we expect to head target rates in the months ahead.

Sherhzad Bharmal: On recovery, we are managing through higher amounts of clays that end up as transition ores between the supergene and hypogene mineralization, and we are making good progress. This is being done by selecting different reagents, fine tuning the dosing, and, of course, modifying some other operating parameters.

Speaker Change: And focus here is really on stable operations with improved online time.

Sherhzad Bharmal: On recovery, we are managing through higher amounts of clays that are in the transition orcs between the supergene and hypogene mineralization and we are making good progress and this is being done with selecting different reagents.

Sherhzad Bharmal: And as a result, we are a few points behind on recovery, but with the adjustments and more stable operations, which also contribute to recovery issues, we expect to hit target rates in the months ahead. Talking about the head feed grade, you know, that you mentioned with this geotech issue, but generally, the head feed grade is very consistent with our block model. And that is really the key point and very reassuring. In the second half, we do expect to have lower than planned feed head grades. This temporary access issue was accessing the higher grade areas in the mine sequence as we had planned originally.

Sherhzad Bharmal: fine-tuning the dosing and and of course modifying some other operating parameters. And as a result, we are a few points behind on recovery, but with the adjustments and most stable operations, which also contribute to recovery issues, we expect to hit target rates in the months ahead.

Sherhzad Bharmal: The time for the head feed grade that you mentioned with this geotag issue. Generally, the head feed grade is very consistent with our block model. And that is really the key point in very reassuring.

Speaker Change: We talked about the head feed grade that you mentioned with this geotech issue, but generally the head feed grade is very consistent with our block model and that is really the key point and very reassuring.

Speaker Change: In the second half, we do expect to have more than planned feed-ahead grades. This temporary access issue was in access to the higher grade areas in the mine sequence as we had planned originally.

Sherhzad Bharmal: And this localized geotechnical issue is for the access ramp to these areas. And what we are doing is we are working through reorienting the access ramp a little bit and additional support and buttressing, and that will take several months, and we expect to complete this work late this year and have full access by early next year. And actually, in December, we plan to have, you know, we expect to have access to this. The implications for, you know, 25, 26 are very minimal.

Speaker Change: And this localized geotechnical issue is for the access ramp to these areas.

Speaker Change: And what we are doing is we are working through reorienting the access ramp a little bit and additional support and buttressing.

Speaker Change: We expect to complete this work late this year and have full access by early next year, and actually in December we expect to have access to this.

Sherhzad Bharmal: Some of this higher grade will bleed into 25 and will change the mind sequence, and the balance of it will feed into 2026 as well. So overall, really not a meaningful impact on 25, 26, but a meaningful impact in Q3 in particular and Q4 as well. Thanks Sherhzad, can you actually give us a guide for the copper grade in H2?

Speaker Change: The implications for 2025-2026 is very minimal. Some of this higher grade will bleed into 2025 and will change the mind sequence, and the balance of it will feed into 2026 as well. So, overall, really not a meaningful impact into 2025-2026, but a meaningful impact.

Speaker Change: and MQ-3 in particular and MQ-4 as well.

Shehzad: Thanks Sherhzad, can you actually give us a guide for the copper grade in H2?

Speaker Change: Yeah, we'll follow up with that with, you know, Fraser will follow up with some of those details, you know, maybe offline.

Sherhzad Bharmal: Yeah, well, we'll follow up with that with Fraser, and we'll follow up with some of those details, you know, maybe offline. The next question is from Lucas Pipes with B-Rally Securities. Please go ahead. Thank you very much, operator. Good morning, everyone. My first question is on slide 22, where you show your near-term growth project. And I'm sure you're putting them into a funnel.

Lucas Pipes: And I wondered in which order the projects kind of come out of the funnel, and what are the key attributes you're screening for as you decide the ranking? Thank you very much. Yes, I mean, we are managing this as a portfolio. These projects all have different risk and return characteristics, as you would expect.

Speaker Change: The next question is from Lucas Pipes with B-Rally Securities. Please go ahead.

Lucas Pipes: Thank you very much, Operator. Good morning, everyone. My first question is on slide 22, where you show your near-term growth project, and I'm sure you you're putting them into a funnel, and I wondered in which order would the projects kind of come out of the funnel, and what are the key attributes you're screening for as you decide the ranking? Thank you very much.

Jonathan Price: Of course, with QB and Highland Valley, you know, these are both brownfield expansions, and at QB in particular, there's a process there of optimization of the existing operation, the bottlenecking of that operation, and then a potential expansion of that operation. Zafra now and San Nicolas, of course, are greenfield projects, both in jurisdictions where we don't currently operate. We have good experience in Peru, of course, through Antomina and San Nicolas. However, bringing Agnico Eagle into that joint venture with their experience in Mexico significantly de-risks our entry there.

Speaker Change: Yes, I mean, we are managing this as a portfolio. These projects all have different risk-return characteristics, as you would expect.

Speaker Change: Of course, with QB and Highland Valley, you know, these are both brownfield expansions and a QB in particular.

Speaker Change: There's a process there of optimization of the existing operation, the bottlenecking of that operation and then a potential expansion of that.

Speaker Change: Zanfronao and San Nicolas are greenfield projects, both in jurisdictions where we don't currently operate. We have good experience in Peru, of course, through Antimena and at San Nicolas.

Speaker Change: Bringing Agnico Eagle into that joint venture with their experience in Mexico significantly de-risks our entry there.

Jonathan Price: So, we evaluate all of these projects; we're progressing them in parallel through the completion of studies, engineering, and the application for permits. We will evaluate the economics of each of these projects against the relative risk and make those decisions accordingly. You know, the project where, of course, we do have particular timing considerations is the Highland Valley Mine Life Extension. The current mine comes to the end of its life there around 2028, and we would like to see continuity of operations through the extension. So, that's one that we very much expect to take forward to sanction next year, 2025.

Speaker Change: So we evaluate all of these projects, we're progressing them in parallel through the completion of studies, through engineering, and through the application for permits.

Speaker Change: We will evaluate the economics of each of these projects against the relative risk and make those decisions accordingly.

Speaker Change: The one project where, of course, we do have particular timing considerations is the Highland Valley Mine Life Extension. The current mine comes to end of life there around 2028, and we would like to see continuity of operations through the extension. So that's one that we very much expect to take forward to sanction next year, 2025. With Zafran Island and San Nicolas, as I said, of course, it will be dependent on the outcome of those studies and engineering. But in the case of Zafran Island, as you know, we already have a permit. And that's one, again, that we have some confidence will be ready for sanction within the second half of 2025. So, you know, it's great to have a portfolio like that.

Jonathan Price: With Zafra now and San Nicolas, as I said, of course, it will be dependent on the outcome of those studies and engineering. But in the case of Zafra now, as you know, we already have a permit, and that's one, again, that we have some confidence will be ready for sanction within the second half of 2025. So, you know, it's great to have a portfolio like this, so we can think about the balance of risk and reward associated with each of these opportunities. And, as I said, we continue to work very hard to progress all of these opportunities in parallel today. In 2025, what what what would be a reasonable zip code?

Speaker Change: [inaudible]

Orest Wowkodaw: Thank you very much, and quick clarification question for slide seven at a higher level question as well. The capital requirement of 1 to 1.2 billion, I believe that's a Canadian sustaining capital and capitalized stripping. I assume that would be too low for 2025 because there's always some spending on developing capics. So if you kind of were to fully bake that the capital spending for 2025, what would be a reasonable SIP code? And then the higher level question is from this side of the quarter it appeared that the approval of the EBR sale was somewhat grudging.

Speaker Change: Thank you very much and a quick clarification question for slide 7 at the higher level question as well.

Speaker Change: The capital requirements of $1 to $1.2 billion, I believe that's Canadian, in sustaining capital and capitalized stripping, I assume that would be too low for 2025 because there's always some spending on development capex.

Lucas Pipes: And then the higher-level question is that, from this side of the border, it appeared that the approval of the EBR sale was somewhat begrudging, and I wondered if you could maybe speak to the industry's reaction and general appetite to invest in Canada and if this could have any impact on future interest in tech. Thank you very much for your perspective. Thanks, Lucas.

Speaker Change: So if you kind of were to fully bake the capital spending for 2025, what would be a reasonable zip code? And then the higher level question is that from this side of the border, it appeared that

Orest Wowkodaw: And I wondered if you could maybe speak on the industry's reaction and general appetite to invest in Canada and if this could have any impact on future interest in tech. Thank you very much for your perspective.

Speaker Change: The approval of the...

Speaker Change: EBR sale was somewhat begrudging.

Speaker Change: And I wondered if you could maybe speak on the industry's reaction and general appetite to invest in Canada and if this could have any impact on future interest in tech. Thank you very much for your perspective on that.

Jonathan Price: Thank you. You've managed to sneak in a couple of a couple of questions there. Look on the first one. The one to $1.2 billion is very much within our expectations for sustaining capital and capitalized stripping for the years ahead. With the development work that we're doing on the projects that we discussed. Of course, we are incurring spend on studies on engineering and on permitting processes. You know, this year that's mounting to around $500 million in aggregate. And, you know, of course, projects were there in the advanced stages of feasibility study in an engineering is tends to be where the highest pre-execution spend occurs.

Jonathan Price: You've managed to sneak in a couple of questions there. Look, on the first one, the $1 to $1.2 billion is very much within our expectations for sustaining capital and capitalized stripping for the years ahead. With the development work that we're doing on the projects that we just discussed, of course, we are incurring expenditure on studies, on engineering, and on permitting processes. This year, that's amounting to around $500 million in aggregate.

Speaker Change: Thanks Lucas, you've managed to sneak in a couple of questions there. Look, on the first one, the $1-$1.2 billion is very much within our expectations for sustaining capital and capitalised stripping for the years ahead.

Speaker Change: With the development work that we're doing on the projects that we just discussed, of course we are incurring spend on studies, on engineering and on permitting.

Jonathan Price: And, of course, projects when they're in the advanced stages of feasibility study and engineering tend to be where the highest pre-execution spend occurs. So while those projects remain at this phase, you could expect to see us spending at a similar rate through 2025. That's probably the best way to articulate that at the moment. In terms of the Canadian government, we don't see any changes there from our perspective.

Speaker Change: This year that's amounting to around $500 million in aggregate, and of course projects when they're in the advanced stages of feasibility study and engineering, it tends to be where the highest pre-execution spend occurs. So while those projects remain at this phase, you can expect to see us spending at a similar rate through 2025 is probably the best way to articulate that at the moment.

Jonathan Price: So, while those projects were made in this space, you could expect to see us spending at a similar rate through 2025 is probably the best way to articulate that at the moment. But in terms of the Canadian governments, you know, we don't see any changes there from our perspective. There's nothing in there that prevents us from executing this organic project portfolio, which of course is the key elements of our strategy. For tech, you know, we continue to invest both within Canada and outside of Canada, as you see here through commitments in Chile, and also the potential for major investments in Peru and Mexico.

Jonathan Price: There's nothing in there that prevents us from executing this organic project portfolio, which, of course, is the key element of our strategy for tech. We continue to invest both within Canada and outside of Canada, as you see here through commitments in Chile and also the potential for major investments in Peru and Mexico. And I think the execution of that strategy and our focus on creating value for all shareholders remains at the front and center of what we do. So we don't see any immediate impacts of anything we've heard lately from the government here in Canada. The next question is from Jackie Prusielowski with BMO Capital Markets. Please go ahead. Thanks very much.

Speaker Change: In terms of the Canadian government, we don't see any changes there.

Speaker Change: From our perspective, there's nothing in there that prevents us from executing this organic project portfolio, which of course is the key element of our strategy. For Teck, we continue to invest both within Canada and outside of Canada, as you see here through commitments.

Jackie Przybylowski: And I think, you know, the execution of that strategy, and I'll focus on creating, you know, value for all shareholders. It remains at the front and center of what we do. So, we don't see any immediate impacts of anything we've heard lately from the government here in Canada.

Speaker Change: in Chile and also the potential for major investments in Peru and Mexico. And I think the execution of that strategy and our focus on creating value for all shareholders remains at the front and center of what we do. So, we don't see any immediate impacts of anything we've heard lately from the government here in Canada.

Jackie Przybylowski: The next question is from Jackie Prisselowski with BML Capital Market. Please go ahead. Thanks very much. I have my first question. I think I'd like to follow up on or it's question about the, the geotechnical issues that QE2 understand of that you have just given us like pretty rough guidance on the. On the impact. I mean, first of all, just a comment. I would also like if you could follow up with me on those great profiles for second half as well. My question is, do you expect this to be a technical issue, or is anything serious?

Crystal J. Prystai: My first question is, I think I'd like to follow up on Orest's question about the geotechnical issues at QE2. I understand that you have just given us pretty rough guidance on the impact. I mean, first of all, just a comment, I would also like if you could follow up with me on those grade profiles for the second half as well. But my question is, do you expect any geotechnical issues, anything serious, faulting, or anything that could impact mining operations going forward? Thanks. I'll pass that on to Sherhzad again. The high-level answer is no, but I'll let Sherhzad provide a bit more color.

Speaker Change: The next question is from Jackie Przybylowski with BMO Capital Markets. Please go ahead.

Crystal J. Prystai: Thanks very much. My first question, I think I'd like to follow up on Orest's question about the geotechnical issues at QE2. I understand that you have just given us pretty rough guidance on the impact. I mean, first of all, just a comment, I would also like if you could follow up with me on those grade profiles for the second half as well. My question is, do you expect this geotechnical issue is anything serious, faulting or anything that could impact mining operations going forward? Thanks.

Jonathan Price: Fulking or anything that could impact mining operations going forward?

Jonathan Price: Thanks.

Jonathan Price: Jackie, this instability has been a known instability, so it didn't come out of the blue. It just was a bit deeper than what we had planned, and as we are operating around that with blasting, we are taking extra precaution to make sure that we do buttress it right and reorient it for the longer term. So really, normal operations, these things are fine. It's early in the mine plan, and if it was an advanced immature mine, we would have other phases to be able to address this. These are not the abnormal instabilities that we have.

Speaker Change: I'll pass that back to Sherhzad again. The high-level answer is no, but I'll let Sherhzad provide a bit more colour. Jackie, this instability has been a known instability, so it didn't come out of the blue.

Shehzad: It just was a bit deeper than what we had planned, and as we are operating around that with blasting, we are taking extra precaution to make sure that we do buttress it right and reorient it for the longer term.

Shehzad: So, really, normal operations, these things are fine and, you know, it's early in the mine plan, and if it was an advanced and mature mine, we would have other phases to be able to address this. These are pretty, these are not abnormal instabilities that we have in place.

Sherhzad Bharmal: I appreciate that. Thanks for that. And as a follow-up question, maybe this one's for Crystal.

Crystal: I appreciate that. Thanks for that. And as a follow-up second question, maybe this one's for Crystal. On the shared buyback plan, I understand you guys have two plans on the go right now, the $500 million that was approved in January .

Crystal J. Prystai: On the share buyback plan, I understand you've got sort of two plans on the go right now, the $500 million that was approved in January and then the new $2.75 billion plan. Can you give us some color on when you expect the $500 million buyback to be completed? Should we assume that it's completed in the third quarter and then the new buyback starts in the fourth quarter? And over which period do you expect to do that $2.75 billion? Is that like a multi-year program?

Speaker Change: and then the new $2.75 billion plan. Can you give us some color on when you expect...

Speaker Change: The $500 million buyback to be completed, should we assume that's completed in the third quarter and then the new buyback starts in the fourth quarter? And over which period do you expect to do that $2.75 billion? Is that like a multi-year program? Thanks.

Crystal J. Prystai: Thanks. Thanks, Jackie. Welcome back. It's nice to hear from you. Yeah, good questions. I think just in relation to the buyback, we'll be back, obviously executing on the $500 million. I'd expect us to close that in the third quarter, obviously subject to valuation considerations, which are always what drives us when we're considering our buyback approach. In regards to the $2.75 billion, we're targeting 12 to 24 months to complete that. But again, it depends on valuation and market conditions.

Speaker Change: Thanks, Jackie. Welcome back. Nice to hear from you. Yeah, good questions. I think just in relation to the...

Speaker Change: to the buyback um we'll be back uh obviously executing on the on the 500 million i'd expect us to to close that um in the third quarter obviously subject to

Crystal J. Prystai: So I think it's probably sooner than the fourth quarter in terms of us getting into starting to buy on that. And then obviously, we have to go through the ordinary course regulatory approval to renew our NCIB, which happens at the end of October. So I think, Jackie, just to add to that, you don't really need to think of those really as two separate authorizations anymore.

Speaker Change: to evaluation considerations, which are always what drives us when we're considering our buyback.

Speaker Change: In regards to the $2.75 billion, we're targeting 12 to 24 months.

Speaker Change: to complete that. But again, depends on valuation and market conditions. So I think it's probably sooner than the fourth quarter in terms of us getting into.

Speaker Change: And then obviously we have to go through the ordinary course regulatory approval to renew our NCIB which happens at the end of October .

Jonathan Price: That is the total capital that we have committed to buying back our shares, and we'll undertake that on a continuous basis. The next question is from Liam Fitzpatrick with Deutsche Bank. Please go ahead. Good morning, everyone.

Speaker Change: So I think, Jackie, just to add to that, you know, don't need to think of those really as two separate authorizations anymore, that is the total capital that we have committed to buying back our shares, and we'll undertake that on a continuous basis.

Speaker Change: The next question is from Liam Fitzpatrick with Deutsche Bank. Please go ahead.

Liam Fitzpatrick: My first question is just on the independent review that's been completed now at the QB or regarding the QB project. Can you just share some of the key findings from that and how that's going to benefit project execution going forward? And do you think you've now got the right people in place across the organization to begin, you know, this next phase of growth that you're now talking about? Talking of world-class people, I'm going to hand you over to our head of projects, Carla Mills, who will talk a little bit about the results of the QB review and how we're applying those in your area. Sure. Thank you, Jonathan.

Liam Fitzpatrick: Good morning everyone. First question is just on the independent review that's been completed now regarding the QB project. Can you just share some of the...

Liam Fitzpatrick: Some of the key findings from that and how that's going to benefit project execution going forward. And do you think you've now got the right people in place across the organization to begin, you know, this next phase of growth that you're now talking about?

Speaker Change: Thanks very much for that Liam. I'll just focus on the second question. The answer is yes, but we still will continue to build more depth and bench strength.

Speaker Change: In the project team here, of course, given the slate of activity we we have ahead of us, we go to the world-class project managers. We have some of those data signs of these projects, but we'll need more of them to execute the growth strategy going forward.

Speaker Change: But, you know, we're also building out other areas of the team that support those project managers. So we have...

Speaker Change: World-class people now assigned to the project in the near term, but we'll continue to build our bench going forward. Talking of world-class people, I'm going to hand you on to our Head of Projects, Carla Mills, who will talk a little bit about the results of the QB review and how we're applying those in her area.

Jonathan Price: I think it's important to start with the fact that, from the outset, we knew that QB2 was a complex and challenging project, especially given the altitude and scale of the project. Along with those factors, the project review has highlighted additional areas for improvement and learning, and we are taking them forward in our project execution. In a number of cases, it validated learnings we'd already identified and have already been actioning over the last several months. Perhaps to offer perhaps a few examples, highlights from our findings.

Carla Mills: Sure. Thank you, Jonathan. I think it's important to start with the fact that from the outset we knew that QB2 was a complex and challenging project.

Carla Mills: Especially given the altitude and scale of the project.

Carla Mills: Along with those factors, the project review has highlighted additional areas for improvement and learning, and we are taking them forward in our project execution. In a number of cases, it validated learnings we'd already identified and have already been actioning over the last several months.

Sherhzad Bharmal: Matt Sawker, maybe a few examples of highlights from our findings. One is the need for increased geotechnical drilling, is impacting construction at the porch, the Timning Management, Facility, and some type of line. Also being more conservative in our assumptions around things like labor productivity estimates and inflationary pressures, which of course were exacerbated by COVID and supply chains closely became strange. And, of course, enhancing oversight from our tech owner's team, one of these switched from a to a time of material execution basis. We're taking a number of steps to ensure we are embedding all of the learnings and the best practices for our project going forward.

Carla Mills: One is the need for increased geotechnical drilling which has impacted construction at the port, the tailings management facility, and the pipeline. Also, being more conservative in our assumptions around things like labor productivity estimates and inflationary pressures, which of course were exacerbated by COVID as supply chains globally became constrained, and of course, enhancing oversight from our tech owners team when we switch from a time of materials execution basis. We're taking a number of steps to ensure we are embedding all of the learnings and best practices into our projects going forward.

Speaker Change: Perhaps to offer maybe a few examples, highlights from our findings. One is the need for increased geotechnical drilling, its impact in construction at the port, the killings management facility, and the pipeline.

Speaker Change: Also being more conservative in our assumptions around things like labor productivity estimates and inflationary pressures, which of course were exacerbated by COVID as supply chains globally became constrained.

Speaker Change: and of course enhancing oversight from our tech owners team when we switch to a time and materials execution basis.

Speaker Change: We're taking a number of steps to ensure we are embedding all of the learnings and the best practices for our projects going forward.

Carla Mills: This includes what Jonathan has already highlighted; we do continue to build out our project teams with additional capacity and expertise. Teck's project team continues to grow, and we are, in fact, attracting more and more world-class talent that are really excited to work on and on our growth strategy. We're also upgrading our project management system. This is to better identify trends and risks, to proactively analyze and interpret information, and boost our efficiencies.

Sherhzad Bharmal: This includes what Jonathan's already highlighted. We do continue to build out our project teams with additional capacity and expertise. Next project team continues to grow, and we are, in fact, attracting more and more world-class talents that are really excited to work in and on our growth strategy. We're also upgrading our project management systems. This is to better identify trends and risks to proactively analyze and interpret information. Who's their efficiencies? This will lead to more informed and faster decisions. And we're enhancing our project readiness and assurance practices in areas specifically around engineering design and capital cost estimates.

Speaker Change: This includes what Jonathan has already highlighted. We do continue to build out our project teams with additional capacity and expertise.

Peck: Teck's project team continues to grow and we are in fact attracting more and more world-class talent that are really excited to work in and on our growth strategy.

Carla Mills: This will lead to more informed and faster decisions. And we're enhancing our project readiness and assurance practices in areas specifically around engineering design and capital cost estimates. I think collectively the improvement opportunities identified through this review will be baked into our projects moving forward and contribute to strengthening execution as we advance our copper growth strategy. Okay, thank you for the detail there.

Peck: We are also upgrading our project management system. This is to better identify trends and risks, to proactively analyze and interpret information, boost our efficiencies. This will lead to more informed and faster decisions.

Peck: And we're enhancing our project readiness and assurance practices in areas specifically around engineering design and capital cost estimates.

Sherhzad Bharmal: I think collectively the improvement opportunities identified through this review will be based into our project moving forward and contribute to strengthening execution as we advance our corporate growth strategy.

Peck: I think collectively the improvement opportunities identified through this review will be baked into our projects moving forward and contribute to strengthening execution as we advance our copper growth strategy.

Jackie Przybylowski: Okay, thank you. That was. Thank you for the for the detail there.

Liam Fitzpatrick: Just as a quick follow-up on the de-bottlenecking at QB, can you just remind us what additional permits you may need to get before you can progress with that? Yeah, again. I'll ask Sherhzad just to talk about the three phases we see going forward here and the associated permitting strategies to be required. So, you know, as Jonathan mentioned, we have the three phases of optimization and debottlement, and then we will consider later after that a more robust expansion project. For the optimization phase, we do not expect to need any permits.

Sherhzad Bharmal: Just as a quick follow-up on the deep bottlenecking at QB. Can you just remind us what additional permits you may need to get before you can progress with that?

Speaker Change: Okay, thank you for the detail there. Just as a quick follow-up on the de-bottlenecking at QB, can you just remind us what additional permits you may need to get before you can progress with that?

Sherhzad Bharmal: Yeah, I'll go down our horses. That just talks sort of the three phases where we see going forward here and the associated permitting strategies. So, you know, Jonathan mentioned we are the three phases of optimization of deep bottlenecking, and then we will consider later after that a more robust expansion project. Or the optimization we do not expect to need any permits that would be within our permitted ranges, and we're talking five to 15%, and it's we've got increased which one. And some minor modifications on some some equipment that that might involve it multiple capacity. When we come to the deep bottleneck and study, we will need to make some more meaningful and what applications and some visual equipment.

Shahzad: I'll ask Sherhzad to talk about the three phases we see going forward here and the associated permitting strategies that will be required.

Sherhzad Bharmal: So, you know, as Jonathan mentioned, we have the three phases of optimization, of debottlementing, and then we will consider later after that a more robust expansion project.

Sherhzad Bharmal: That would be within our permitted ranges, and we're talking 5 to 15% throughput increase, which would include things like increasing redundancies to get better online times and some minor modifications of some equipment that might need a little bit more throughput capacity. When we come to the deep water land study, we will need to make some more meaningful modifications and some additional equipment, uh, you know, and other things like repowering conveyors or uh, and having bigger pumps as well to be able to handle higher capacities, uh, whether it be of material flows or conveying systems, and this, of course, will be very low capital intensity because most of the major infrastructure like desal, pipelines And for that, we're looking at somewhere between 10 to 15% increase, a further increase. The next question is from Kenna Tanners with Wolf Research. Please go ahead. Hey, good morning.

Sherhzad Bharmal: For the optimization, we do not expect to need any permits that would be within our permitted ranges.

Speaker Change: and we're talking 5-15%

Speaker Change: The throughput increased, which would lead to things like increasing redundancies to get better online times and some minor modifications of some equipment that might need a little bit more throughput capacity.

Speaker Change: When we come to de-bottling study, we will need to make some more meaningful modifications and some additional equipment.

Sherhzad Bharmal: You know, and that is things like repowering converters or and having bigger punks as well to be able to land live capacities with the view of material flows or convenient systems. And this, of course, will be more capital very low capital intensity because most of the major infrastructure like diesel pipelines transmission would not need any increases, and for that we will need a permit. And we are developing that permit right now and expected submitted before the end of the year. And then once we receive that permit, we would continue with making those changes and achieve the high and simple ways, and that for that we're looking at somewhere between 15% increase further in.

Speaker Change: And that is things like repowering conveyors and having bigger pumps as well to be able to handle higher capacities, whether it be of flows or conveying systems.

Speaker Change: And this of course will be low capital, very low capital intensity because most of the major infrastructure like desal, pipelines, transmission would not need any increases.

Speaker Change: And for that, we will need a permit, and we are developing that permit right now and expect to submit it before the end of the year. And then once we receive that permit, we would continue with making those changes.

Speaker Change: and achieve the high end throughput rates and that for that we're looking at somewhere between 10 to 15 percent increase further increase

Kenna Tanners: Thanks for the detail. I want to clarify, please, on the guided $3 to $3.6 billion U.S. for copper growth. What exactly is in that?

Speaker Change: The next question is from Kimna Tanners with Wolf Research. Please go ahead.

Kimna Tanners: Hey, good morning. Thanks for the detail.

Kimna Tanners: I wanted to clarify, please, on the guided $3 to $3.6 billion U.S. for copper growth. What exactly is in that? Is that just spend, Nick, and Saffronal, and Highland Valley Expansion? And does that already include the revisiting of the total capital costs you had told us you were going to conduct for, and then, I guess, along those same lines, when are we going to get updated?

Kenna Tanners: Has that just been NIC and Safranol and Highland Valley Extension? And does that already include the revisiting of the total capital costs you had told us you were going to conduct? And then, along those same lines, when are we going to get updated costs, both on an operating basis and capital costs? Thanks.

Kimna Tanners: costs, um, both on an operating basis and capital costs. Thanks.

Jonathan Price: Yeah, thanks, Tim. Essentially, that range does capture the projects that you mentioned. There's some allowance in there for QB, and some of the work that Sherhzad was just discussing as well.

Speaker Change: Thanks Tim. Essentially that range does capture the projects that you mentioned. There's some allowance in there for QB, some of the work that Sherhzad was just discussing as well.

Jonathan Price: You know, they are our best estimates, I would say at the moment, and I don't use estimates in the rigor of a project's organization, but our best understanding of the forward capital costs associated with those projects in aggregate, our attributable share, of course, taking account of the joint ventures that we have or partners that we have in these projects. You know, those capital costs will be finalized through the work we do in studies and engineering when we get to those definitive estimates. But, you know, we've done this with a view forward as to our best understanding today as to where those costs are likely to land. Okay, so thank you for that.

Kimna Tanners: You know, they are our best estimates, I would say at the moment, and I don't use estimates in the rigor of a projects organization, but our best.

Kimna Tanners: understanding of the forward capital costs

Kimna Tanners: Associated with those projects in aggregate, our attributable share, of course, taking account for the joint ventures that we have or partners that we have in these projects. Those capital costs will be finalized through the work we do in studies and engineering, of course, when we get to those definitive estimates.

Kimna Tanners: But, you know, we've done this with a view forward as to our, you know, best understanding today as to where those costs are likely to land.

Kenna Tanners: And then I guess the follow-up question is, when can we expect further detail on the, you know, adjusted go forward cost of production? And also, can you remind us what additional volumes and when you would expect as a result of those investments? Thanks again.

Crystal J. Prystai: Can you clarify if you are referring to an update on operating costs or capital costs? I was asking for all of the above, so sorry for the confusion. Oh, it's okay.

Speaker Change: Okay, so thank you for that. And then I guess follow-up is...

Speaker Change: When can we expect the further detail on the adjusted go-forward cost of production? And also, can you remind us what additional volumes and when you would expect as a result of those investments? Thanks again.

Speaker Change: Can you clarify if you are referring to an update on operating costs or capital costs?

Crystal J. Prystai: So, as part of our normal process, we'll provide our guidance update in January, like we've done in recent years, and that will reflect our updated low-capital CAPEX and OPEX for 2025, including a view on QBs, the cost once operations are wrapped up at the end of the year. In regard to capital, development capital updates to what Jonathan noted already, where we've, you know, we've provided that range based on the best information we have available as of today. So the timing of that will depend on when the engineering and study work is completed. The next question is from Carlos Alba, with Morgan Stanley. Please go ahead. Carlos Alba, with Morgan Stanley, your line is open.

Speaker Change: I was asking for all of the above, so sorry for the confusion. Oh, it's okay. So, like, as part of our normal process, we'll provide our guidance update in January , like we've done in recent years, and that will reflect our updated guidance.

Speaker Change: Wellcat, CapEx, and OffEx for 2025, including a view on QBs, the cost once operations are wrapped up at the end of the year.

Speaker Change: In regard to capital, development capital updates to what Jonathan noted already where we've, you know, we've provided that range based on the best information we have available as of today. So the timing of that will depend on when the engineering and study work is completed.

Speaker Change: The next question is from Carlos Alba with Morgan Stanley . Please go ahead.

Carlos de Alba: Hi. Hi. Hello. Good morning. Can you hear me now? Great. Sorry, I was on mute.

Speaker Change: Carlos Alba, with Morgan Stanley , your line is open.

Carlos de Alba: Yeah, maybe a follow up on the CapEx discussion. Do you already have a broad ballpark range of the CapEx per project? The four maybe that we have been discussing, QB expansion, software and apps, and NICOLAS and HBC, like mine extension?

Carlos de Alba: Hi. Hi. Hello. Good morning. Can you hear me now?

Carlos de Alba: Great. Sorry, I was on mute.

Carlos de Alba: Yeah, maybe a follow up on the CAPEX discussion. Do you have already a broad ballpark range of the CAPEX per project? The four maybe that we have been discussing, QB expansion, software apps, and HVC lifeline extension?

Jonathan Price: Well, the short answer is yes, of course, that we use ranges associated with each of those projects to provide the range of aggregate guidance in terms of what we expect to spend over the years ahead. As I said, you know, we need to complete the work on studies, engineering, and estimates, etc. to have more confidence in those ranges. But in aggregate, that is the best understanding of the capital profile today.

Speaker Change: Well, the short answer is yes, of course, that we use ranges associated with each of those projects to provide the range of aggregate guidance in terms of what we expect to spend over the years ahead.

Speaker Change: As said, we need to complete the work on studies, engineering, and estimates, etc. to have more confidence in those ranges. But in aggregate, that is the best understanding of the capital profile today.

Jonathan Price: Okay, and yeah, we're looking forward to the breakdown when you're ready to provide that. Did you receive any confirmation or indication that this project, if you decide to go ahead, would be able to be built and brought in, given the potential constitutional reform in the country that may ban open binding? So basically, the question is, Yeah, well, we're not sure if the ban would be on new operating concessions or, but those that already have exploration permits and are in their development in a way would be okay.

Speaker Change: Okay, yeah, we're looking forward to the breakdown when you can, when you're ready to provide that. And then just on San Nicolás.

Speaker Change: Have you received any confirmation or indication that this project, if you decide to go ahead, would be able to be built and brought on, given the potential...

Speaker Change: constitutional reform in the country that may ban open cocopeat mining?

Speaker Change: So basically the question is, um,

Speaker Change: What we are not sure is if the ban would be on new operating concessions, but those that already have an exploration permit and are under development in a way, would be okay.

Jonathan Price: Yeah, look, you know, we acknowledge the uncertainty, Carlos, with respect to San Nicolas and that permit. However, our experience to date is that the permit process continues to proceed as planned. And we got over a, you know, significant milestone recently with respect to that process, so indications at that level are good. You know, we'll have to see how things evolve more broadly in terms of legislation, including, you know, changes in the judiciary, perhaps in the country. So there are a few things at play there.

Speaker Change: Yeah, look, you know, we acknowledge the uncertainty, Carlos, with respect to San Nicolás and that permit.

Speaker Change: Our experience to date is that permit process continues to proceed as planned, and we got over a significant milestone recently with respect to that process, so indications at that level are good. We'll have to see how things evolve more broadly in terms of legislation, including changes in the judiciary perhaps in the country, so there's a few things at play there.

Jonathan Price: But from what we can see on the ground today, and from our experience opposite the regulator, to date, is positive. So we, you know, we continue to remain very engaged in that permitting process. We continue to work on closing out studies and bottoming out the capital estimates associated with that, and we're hopeful we can bring that to a point where we achieve the permit and take it forward for sanction. The next question is from Bill Peterson with JP Morgan. Please go ahead. Hi, good morning, and thanks for taking the questions. I want to come back to QB2.

Speaker Change: But from what we can see on the ground today, and our experience opposite the regulator, today is positive. So we, you know, we continue to...

Speaker Change: So we remain very engaged in that permitting process. We continue to work on closing out the studies and bottoming out the capital estimates associated with that and we're hopeful we can bring that to a point where we achieve the permit and take it forward for sanction.

Speaker Change: The next question is from Bill Peterson with JP Morgan. Please go ahead.

William Chapman Peterson: So on this access issue, I guess, can you provide a little bit extra color on the time frame and issue? Does this have any impact, I guess, quarter to date? And trying to think about the production rates through the remainder of the year? Should we think of it actually taking a slight step down in the third quarter before, I guess, improving in the fourth quarter to what would appear to be, I think you said earlier, you hope to be at full production, so around 25 kilotons? Just trying to get a sense for the trajectory here.

William Chapman Peterson: Hi, good morning, and thanks for taking the questions. I want to come back to QB2. So on this access issue, I guess, can you provide a little bit of extra color on the timeframe issue? Did this have any impact, I guess, quarter to date? And trying to think about the production rates through the remainder of the year,

Speaker Change: Should we think of it actually taking a slight step down in the third quarter before I guess improving in the fourth quarter to what would appear to be, I think you said earlier you hope to be at full production so around 25 kilotons. Just trying to get a sense for the trajectory here.

William Chapman Peterson: Yeah, just at a high level, we expect to continue to see the quarter over quarter improvement continue through this year. And by the end of the year, we expect to be producing at full rates. But I'll, again, hand this to Sherhzad to give a little bit more detail on the underlying issues associated with the geotechnical problem with GRADE and with the transitionals. Like I mentioned before, this was a known area of instability, and it was late in the quarter when we understood the implications of building a different access rather than just buttressing or reorienting the access. And that would prevent access from these higher grade areas.

Speaker Change: Just at a high level, we expect to continue to see the quarter-over-quarter improvement continue through this year, and by the end of the year, we expect to be producing at full rates. But I'll, again, ask Sherhzad to give a little bit more detail on the underlying issues associated with COVID-19.

Shahzad: with the geotechnical fob with grey and with the transitionals.

Sherhzad Bharmal: Like I mentioned before, this was a known area of instability and it was late in the quarter.

Jonathan Price: And so really, it's an H2 issue mostly. And as Jonathan mentioned, it's not to take a step down, it's to continue the improvements that we've had and throughput, continue the throughput rates, continue to improve on GRADE, and just compare it to the plan to have, slightly lower grade. Okay, okay, thanks. Thanks for that. So actually change the subject on zinc, just trying to get a sense of what you're seeing in the zinc market, considering where TCRCs are on global smelter output, which appears to actually be contracting. And what are you assuming for supply and demand balances in the back half of the year and into next year? Thanks.

Sherhzad Bharmal: when we understood the implications for building a different access rather than just buttressing or reorienting the access and that would

Sherhzad Bharmal: Prevent access from these higher grade areas. And so really it's an H2 issue mostly.

Sherhzad Bharmal: And as Jonathan mentioned, it's not to take a step down, it's to continue the improvements that we've had in throughput, continue the throughput rates, continue to improve on grade, and just compare to plan to have

Jonathan Price: Slightly lower grade.

Speaker Change: Okay, okay, thanks. Thanks for that. So actually change the subject on the zinc, just trying to get a sense of where you're seeing in the zinc market, considering where

Ian Anderson: TCR, CSAR, Global, Smelter Output, which appears to actually be contracting. What are you assuming for supply-demand balances in the back half of the year and into next year? Thanks for that question, Bill. I'll hand you over to Ian Anderson, our Chief Commercial Officer.

Ian Anderson: Thanks for that question, Bill. I'll hand you over to Ian Anderson, our Chief Commercial Officer. Hi Bill, thank you for the question. So what we're seeing currently is that the zinc market is definitely in deficit, and the reason for that is, of course, you saw not only the mine shutdowns that occurred as a result of lower zinc prices last year but also some disruptions this year. There have been, you know, an initial start, for example, at Kapuzhi. We're expecting, in the medium term, a restart at Tar, for example. And, of course, Ozernoy is also predicted, but really, those don't come out this year.

Ian Anderson: Hi Bill, thank you for the question. So, what we're seeing currently is that the green market is definitely in deficit.

Ian Anderson: And the reason for that is, of course, you saw not only the mine shutdowns that occurred as a result of lower zinc pricing last year, but also some disruptions this year.

Ian Anderson: There have been, you know, an initial start, for example, at Cappucci. We're expecting over the medium term a restart at TAR, for example. And, of course, Ozernoye is also predicted, but really those don't come on this year.

Ian Anderson: And so the reflection that you're seeing in the very low TC's for zinc is a result of that deficit. And just an interesting fact there, you know, concentrated imports in China, for example, are down significantly this year, and that is attributed to the lack of available feed. So we are seeing, of course, poor pricing in the zinc market. But we're seeing conditions in finished metal really coming along and stable premiums there.

Ian Anderson: And so the reflecting that you're seeing in the very low TCs for zinc is as a result of that deficit. And just an interesting fact there, you know, concentrate imports in China, for example, are down significantly this year. And that is attributed to the lack of available feed.

Ian Anderson: And so we do anticipate that it will remain in a slight deficit for this year and are expecting the same thing for the first half of 2025 as well. Thanks for the question. And the last question we have time for today is from Brian MacArthur with Raymond James. Your line is open.

Ian Anderson: So, we are seeing, of course, support for pricing in the zinc market. We're seeing conditions in finished metal really coming along and stable premiums there. And so, we do anticipate there will remain a slight deficit for this year and are expecting the same thing for the first half of 2025 as well.

Ian Anderson: Thanks for the question.

Brian Macarthur: Thank you. And thank you for taking the time to answer my questions. My first question is, I appreciate all the guidance for EBITDA and ongoing CapEx. But as I think about the jurisdictions are getting cash flow from and earning from in the future, can you give any guidance for one, A, tax rates going forward, and B, I guess, cash tax rates as I try and figure out, you know, free cash flow, which is kind of the missing part of taxes in this equation.

Speaker Change: And the last question we have time for today is from Brian MacArthur with Raymond James. Your line is open.

Brian Macarthur: Thank you and thank you for taking my questions.

Brian Macarthur: My first question, I appreciate all the guidance for EBITDA and the ongoing CapEx, but as I think about the jurisdictions you're getting

Speaker Change: Cash Flow and Earnings from in the future. Can you give any guidance for 1. A, tax rates going forward and 2.

Speaker Change: I guess cash tax rates as I try and figure out, you know, free cash flow, which is kind of the missing part of taxes in this equation.

Brian Macarthur: I'll hand you over to Crystal on that one. I think that doesn't necessarily build in our growth projects, and there will be some work that we have to do in that regard, but I think I would just encourage you to continue to use 41 to 43%, and we can provide more guidance when we have it. Obviously, Fraser and the team can provide more support offline on the modeling aspect.

Speaker Change: I'll hand you up to Crystal on that one.

Crystal: Thanks Brian for the question. I think 2024 is going to be a bit of an anomalous year. We expect our overall effective tax rate

Speaker Change: On a continuing operations basis to be in that 41% to 43% range, that obviously excludes the impact of the sales, whole business, and the anatomy dividend.

Speaker Change: Beyond 2024, we still continue to think that 41-43% is a reasonable sideline, where we're profitable across all our business units, and we have aggregate operating margins that are relatively large in comparison to corporate costs.

Speaker Change: and the Finance Club.

Speaker Change: I think that, you know, it doesn't necessarily build in.

Speaker Change: Thank you all for joining us today and I hope that we can continue to use 41 to 43 and we can provide more guidance when we have it and obviously Fraser can provide more and he can provide more support offline on the modeling aspect.

Crystal J. Prystai: Great, that's very helpful. And maybe if I just asked one more, and maybe this is for Robin, obviously, you highlighted the coal business did pretty well this quarter on your runways with two maintenance shutdowns. Can you maybe just go through what happened?

Speaker Change: Great, that's very helpful.

Speaker Change: And maybe if I just ask one more and maybe maybe it's for Rob and obviously you highlight the whole business did

Brian Macarthur: And maybe a second question? Are the operations down in the states so they'll run at 26 million tons a year? And I guess maybe a final question, I guess with the coal business being sold, what Robin's plans are next? guidance for the coal business, as you might expect. I'm just going to quickly make a comment on Robin. Robin will be retiring from tech in the coming months. Robin's been with us for 36 years, most recently as our President of Coal. He has quite literally delivered us truckloads of cash over many years in his role.

Speaker Change: Question- Are the operations down in the states that they'll run it, the 26 million tons a year? And I guess maybe a final question I guess with the coal being...

Jonathan Price: And in addition to his leadership of the coal business, he's had a significant impact across all of tech, particularly in respect of his safety leadership and the safety programs that he's established here over many years. So we just want to recognize and thank Robin for his incredible contributions to the company over many, many years. And with that, Robin, I'll hand it over to you to discuss the quarter. Thanks Jonathan, and thanks for your question; I didn't expect one this round.

Speaker Change: Business being sold, what Robin's plans are next.

Speaker Change: Thanks Brian , I'll hand you over to Robin in a moment. We won't give any forward looking guidance for the gold business as you might expect.

Speaker Change: I'm just going to quickly make a comment on Robin. Robin will be retiring from Teck in the coming months. Robin's been with us for 36 years, most recently as our President of Coal. He has quite literally delivered us truckloads of cash over many years through his role. And in addition to his leadership of the coal business, he's had a significant impact across all of Teck, particularly in respect of his safety leadership and the safety programmes that he's established here over many years. So we just want to recognise and thank Robin for his incredible contributions to the company over many, many years.

Jonathan Price: I think what I'd say about the quarter is the coal business is operating as it was prepared to operate over many years, and we had a strong quarter because all the operations combined are in extraordinarily good shape right now. We're seeing the best safety performance we've ever seen in history. We have our water treatment plants all performing well. All the plants ran really well through the quarter.

Speaker Change: And with that, Robin, I'll hand it over to you to discuss the quarter.

Robin: Thanks Jonathan, and thanks for your question, I didn't expect one this round. I think what I'd say about the quarter is the coal business is operating as a

Robin: As it was prepared to operate over many years and we had a strong quarter because all the operations combined are in extraordinary good shape right now.

Robin Sheremeta: And this is really business as usual from my perspective. So I'm proud of the team that got us to the point that we are today. And it's up to, you know, it's up to the new owners now to take it forward. But the business is in exceptionally good shape, and that was demonstrated in that quarter.

Brian Macarthur: Thank you very much, Jonathan and Robin, and good luck. Thank you, Brian. And thank you to everyone for joining us today. And thank you for all the questions. Just to note, we are planning to hold the strategy day in Vancouver on November 5th, followed by a site visit to Highland Valley the following day. So please watch out for a save the date notice, which we expect to send out shortly. Adeba, please reach out to Fraser and the IR team if you have any further questions. And with that, please enjoy the rest of your day. This brings to a close today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

Unknown Shareholder: Thank you.

Unknown Shareholder: Thank you, Brian.

Jonathan Price: And thank you to everyone for joining us today, and thank you for all the questions.

Fraser Phillips: Just to note we are planning to hold the strategy day in Vancouver on November the 5th, followed by a site visit to Highland Valley the following day. So please watch out for a safe today's notice, which we expect to send out shortly. A demo, please reach out to Fraser and the IR team. If you have any further questions, and with that, please enjoy the rest of your time.

Operator: This brings to a close today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.