Q2 2024 Teck Resources Ltd Earnings Call

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

Operator: to text 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: to Text, 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.

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: To join the question, Q, press star, then one on your touchstone phone. Should you need assistance during the conference call, you may signal an operator by pressing Star, then zero.

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.

Fraser Phillips: If this conference call is being recorded on Wednesday, July the 24th, 2020, 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: Thanks Kaylene. 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: Thanks, Kayleen. Good morning, everyone. And thank you for joining us for Text 2nd quarter, 2024 conference call. Please note, today's call contains forward-looking statements. Various risks and uncertain needs may cost actual results to vary. Act does not assume the response to the obligation, excuse me, to update any forward-looking statements. Please refer to slide 2 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 be found at our MD&A and the latest press release on our website.

Fraser Phillips: Thanks Kaylene. 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 the form.

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. Pairing 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.

Speaker Change: Barchelot Youth Statements

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 and the latest press release on our website.

Jonathan Price: According to the agenda, slide 3, Jonathan Price, our CEO, will begin today's call with highlights from our 2nd quarter results. Crystal Friends, I, or CFO, will follow the additional color on the quarter, as well as the sale of our seal-making coal business and the use of proceeds from that transaction. None of them will then discuss the transformation of our portfolio and our value creation strategy. We'll then take your questions with that. Thank you for there, and good morning everyone. Starting with the highlights from our 2nd quarter on slide 5. At the very top of our list of highlights is the close of the sale of the remaining interest in the still-making coal business on July 11th.

Jonathan Price: 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.

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 11th. 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 5. 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 year of the tech as a company focused entirely on providing metals that are essential to global development and the energy transition. People 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. A long-term outlook for copper is highly resilient. And with the significant proceeds from this transaction, tech is strongly positioned to capitalize on the growing demand for copper in our new era.

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: 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-increasing 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's history.

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.

Crystal Prystai: The substantial funding retained for our near-to-in-value increasing 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's history.

Jonathan Price: With substantial funding retained for our near-term value-increasing 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.

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.

Crystal Prystai: Printful will speak to the use of proceeds in greater detail shortly. The other 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 and Quagrata blanket on QB. It was also another strong quarter of Red Dog, and we had very strong production in the steel-lated co-business, despite two major plans of maintenance shutdowns. At the same time, we advanced our industry-leading copper growth portfolio, having achieved several milestones in the permitting processes of a highland value-mind life extension and for Sunday class.

Jonathan Price: Crystal will speak to the use of proceeds in greater detail shortly. 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 Nicolas. And 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.

Crystal Prystai: And 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 ACTIs from the same period last year.

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.

Crystal Prystai: I'm turning to the highlights 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 from 43.3,000 tons. Rebused a line in construction of the plant supports devolved netting, and we remain focused on recovery and throughput. We achieved first production and sales of malignant as planned, and ramp up of the malignant plant is progressing. And our QB net cash unit costs were in line with our expectations. QB is already starting to contribute to our strong financial results. There's 284 million in growth profit before depreciation and amortization generated in the first half of the year, while still in ramp up.

Jonathan Price: We continue to advance the ramp-up during the second quarter. UV 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: Dubie copper production increased quarter over quarter to 51.3 thousand tons from 43.3 thousand tons.

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

Speaker Change: QB is already starting to contribute to our strong financial results, with $284 million in gross profit before depreciation and amortisation 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.

Crystal Prystai: Turning now to the outlook for QB on slide seven. We are seeing continuous improvements in throughput, which is now close to design rates. What we had recurring failures with a pulley in a key overland conveyor; these have now largely been mitigated. At the same time, recoveries have improved as we adjust the clays in the transition laws and improve last ability. Our focus is on driving recoveries to design levels, and we are confident that we will achieve our target recoveries by year end. And most importantly, we continue to expect to reach full throughput rates at QB by year end.

Speaker Change: Turning now to the Outlook for QB on slide 7.

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 oars and improved 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 localized geotechnical issue have resulted in an update to our 2024 production guidance for copper and molybdenum, who have revised our full year QME 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 tonnes from 2.9 to 3.6 thousand tonnes.

Speaker Change: At the same time, recoveries have improved as we adjusted clays in the transition ores and improved flyer 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: And most importantly, we continue to expect to reach full throughput rates at QB by year end.

Crystal Prystai: However, slightly lower than planned all grades in the second half of the year due to short-term mind access issues related to pitty water and a localized geotechnical issue, how resulted in an update to our 2024 production guidance for copper and malignant. We've revised up for the year QB copper production guidance to 200 to 235,000 tons for 230 to 275,000 tons, and revised up for the year QB malignant production guidance to 1.8 to 2.4,000 tons on 2.9 to 3.6,000 tons. 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.

Speaker Change: However, slightly lower than planned ore 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 from 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$2.255 to US$2.55 per pound from US$1.95 to US$2.25 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 sale 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.

Crystal Prystai: 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 sale volumes over the balance of the year.

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.

Crystal Prystai: Production guidance for QB the 2025 to 2027 is unchanged. James. Once at full capacity, QV with Will Dull, our copper production, and we expect our bank metals operations to generate significant EBITDA. As journalists like, we have the potential to generate more than 5 billion of annual EBITDA, and with sustained capital and capitalized tripping expected to be in a range of 1 to 1.2 billion dollars per year, tax-free cashflow generation potential is compelling.

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

Crystal J. Prystai: Once at full capacity, QV 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, QB will double our copper production and we expect our base metals operations to generate significant EBITDA.

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

Crystal Prystai: Thanks, Jonathan. Good morning, everyone. I'm going to start on slide 9 with our financial performance in the second quarter. Given final regulatory approval of the sale of ELF Valley Resources, or EVR, was not received until July 4, we continue to report EVR and our operating results in the second quarter. Starting in the third quarter of 2024, EVR results will be presented as discontinued operations. There are a number of significant accounting and presentation items that impacted our first quarter result, and these continue to impact our results in the second quarter. Consistent with our reporting in Q1, our second quarter financial statements for slightly 23% minority ownership in EVR by NSC and POSCO, and we continue to consolidate 100% of EVR's production and sales volumes, revenue, growth profit, and EBITDA, given our controlling shareholding position.

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.

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 NSC 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, with the remainder of EBR profit attributable to non-controlling interests, which has reduced our profit attributable to shareholders and related EPS compared to the same period last year.

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.

Crystal: 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: Our profit attributable to shareholders is based on our 77% ownership of EVR. If the remainder of EVR profit attributable to non-controlling interest, it's reduced our profit attributable to shareholders and related EPS compared to the same period last year. We continue to operate the steelmaking cool business in the second quarter and retain all cash flows from EVR until completion of the sale of our remaining 77% interest at EVR at Glencora on July 11, 2024. 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.

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. If reduced, our profit attributable to shareholders and related EPS compared to the same period last year.

Crystal J. Prystai: 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. 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. 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.

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: 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 Prystai: Our solid financial performance in the second quarter reflects record copper production and strong copper crisis, as well as strong steelmaking coal sales volumes, 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 EVR to NSC and POSCO, as I outlined earlier. We return a total of 346 million shareholders in the quarter, including 282 million and share buybacks executed under the $500 million return, previously authorized by the board following receipt of the NSC proceeds, and we paid $664 million of quarterly-based 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 J. Prystai: 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 of quarterly base dividends. 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.

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, and we paid $664 million of quarterly base dividends.

Crystal Prystai: For 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 the adjusted EBIDA 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 steelmaking coal sales volumes at the top end of our garden's 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.

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

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

Speaker Change: 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 J. Prystai: 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. However, these items were partially offset by higher operating costs across our business and lower steelmaking coal prices.

Speaker Change: 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.

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

Crystal 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 legitimate 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 units. As expected, QB costs were elevated in the first half of the year due to alternative shipping arrangements, ramp-up of the milling plant, and lower volumes as ramp-up of production continued.

Speaker Change: 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.

Speaker Change: 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 forward appreciation and amortization and copper increased 118 percent 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 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 percent 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 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, 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.

Speaker Change: 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 percent from the same period last year, and we also had higher production at Highland Valley and Antimena. This was partially offset by lower production at Carmen de Anticoio 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 appreciation 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 Dandecoyo 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 pound.

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 unit costs were US $1.82 per pound or US $0.10 per pound lower than the same period last year as a result of lower US dollars and on-haven operating costs and lower smelter processing charges, partly offset by reducing five-product credits per matchina. Looking ahead, as Jonathan outlined, we have updated our 2024 annual copper evolipidum production guidance and our unit cost guidance for the full year, reflecting 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 US $1.82 per pound or US $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 molybdenum production guidance 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 molybdenum production guidance is now 4.3 to 5.5,000 tons from 5.4 to 6.7,000 tons. And our net cash unit cost guidance has been revised to US $1.90 to 230 per pound from US $1.85 to 225 per pound, primarily as a result of lower molybdenum production as well as lower copper production volumes.

Speaker Change: 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.

Speaker Change: 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 Prystai: Looking now at our zinc business on slight falls, we have another strong quarter at Red Dog with increased zinc and less production reflecting higher grade and recovery. Zinc sales of 53,000 tons were in line with guidance for the second quarter. However, Reddaw's Natcash unit costs were out US 4 cents per pound, with a higher cost per consumables and an increase in smelter processing charges. At trail, refined state production was impacted by unplanned maintenance, and refined lead and byproduct production was significantly lower, reflecting the planned 70-day shutdown for the replacement of the kids set boiler. The project was defeated on time and on budget, and the boiler had been operating very well since the restart.

Crystal J. Prystai: Looking now at our zinc business on slide 12. We had another strong quarter at Red Dawg, with increased zinc and lead production, reflecting higher grade and recovery. I think sales of 53,000 tons were in line with guidance for the second quarter. However, Red Dog's net cash unit costs were up US $0.04 per pound due to higher costs for consumables and an increase in smelter processing charges.

Speaker Change: Looking out our zinc business on slide 12.

Speaker Change: 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.

Speaker Change: However, Red Dog's net cash unit costs were up $0.04 per pound due to higher costs for consumables and an increase in smelter processing charges.

Crystal J. Prystai: 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 Kitsap boiler. However, the project was completed on time and on budget, and the boiler has been operating very well since the restart. 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 to 290,000 tonnes in the third quarter, reflecting our normal seasonality of sales.

Speaker Change: 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 Kifset boiler.

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

Crystal 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 from Reddaw compared to the same period last year. The shipping fees at Reddaw commenced on July 12th, and we expect Reddaw's zinc can concentrate sales of 250 to 290,000 tons in the third quarter, reflecting our normal seasonality of sales. Our 2024 annual zinc can concentrate production guidance of 565 to 630,000 tons, and our Natcash unit cost guidance of US 55 to 65 cents per pound are both unchanged.

Speaker Change: 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 sale volumes for Red Dog compared to the same period last year.

Speaker Change: The shipping season at Red Dog commenced on July 12th, and we expect Red Dog Sink and 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. Starting now is Jill Lincoln Kohl on slide 13.

Speaker Change: 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 refined zinc production guidance is unchanged at 275 to 299,000 tons.

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

Crystal Prystai: Starting now, we're still linking coal on slide 13. 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 tons run the top end of our guidance range, and still making coal prices decline, but they remain strong. And despite two major plans made in shutdowns, we achieved very strong production across all of our plans. Adjusted site cash costs have failed per ton of Canadian $112 for higher than the same period last year, through the by-higher spend on 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 still making full prices decline, but they remain strong. And despite two major planned maintenance shutdowns, we achieved very strong production across all of our plans. However, adjusted site cash cost of sales per ton of Canadian $112 was higher than the same period last year, driven by higher spend on labour, contractors, and diesel and less favorable mining drivers.

Speaker Change: Right now it's Jill Lincoln Poole on slide 13.

Speaker Change: 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 for hires in 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 reliance on contractors. Transportation costs were Canadian $1 per ton lower than the same period last year, due to lower demerits charges, as a result of continued stable vessel queues. Overall, we generated 1.1 billion in gross profit before depreciation and amortization, reflecting lower real-life ceiling coal prices and higher unit operating costs, harshly offset by higher sales volumes and the positive impact of a stronger US dollar.

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

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: 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 U.S. dollar.

Crystal Prystai: Turning out to the sale of EBR and our use of proceeds from the transaction. Starting on slide 15, we completed the sale of the remaining 77% interest in EBR to Glenfore on July 11th and received total transaction proceeds of 7.3 billion US, subject to customary closing adjustments. This transaction is a catalyst to transform tech into a pure-play energy transition metals company. The proceeds position can tap for our next phase of responsible growth and value creation.

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

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 U.S., subject to customary closing adjustments. This transaction is a catalyst to transform Tech into a pure play energy transition metal, 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: Starting on slide 15.

Speaker Change: We completed the sale of the remaining 77% interest in EBR to Glencore on July 11th and received total transaction proceeds of $7.3 billion US, 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 TEC for our next phase of responsible growth and value creation.

Crystal Prystai: And, as always, we remain committed to our disciplined capital allocation framework on slide 16. Disguided are deployment of the proceeds from the transaction. 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 site. Flight 17 summarizes how we are allocating transaction proceeds. He announced the largest return of cash to shareholders in fact 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 $500 million share buyback previously authorized, following the minority sale of EBR to add to CM Posco.

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

Crystal J. Prystai: 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. 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 and POF.

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

Speaker Change: 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.

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

Speaker Change: He 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 Prystai: And through the end of June, we have completed $363 million out of $500 million buyback. The board also authorized a one-time supplemental dividend of 50 cents per share, or approximately 250 million, which will be paid on September 27, in addition to our quarterly-based dividend of 12.5 cents per share. We announced a debt reduction program about 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 15, we completed the purchase of approximately US$1.4 billion of our public notes, and we are assessing further debt reduction opportunities.

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 for approximately $250 million, which will be paid on September 27, in addition to our quarterly base dividend of $0.125 per share.

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 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 dollars 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.

Crystal Prystai: We expect to pay costs and taxes related to the transaction of approximately $750 million US in early 2025. The remaining net proceeds for the transaction will be retained to fund our near-term cover growth. Once QB is at full capacity, we have a pathway to increase our cover production by a further 30% starting as early as 2028 for our near-term projects. These include the line-life extension at HBC. Stop for now, technicalists, and QB optimization and devolved on that date. Our attributable capital cost for these projects is estimated to be US$3.3 to US$3.6 billion.

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

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

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 through our near-term projects, which include the Wildlife Extension at HBC, Saffron Elk, San Nicolas, and QB Optimization and Devolved Electric. Our attributable capital cost for these projects is estimated to be U.S. $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. 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.

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. These include the Mine Life Extension at HBC, Saffronel, San Nicolas, and QB Optimization and De-volatilizing.

Speaker Change: Our attributable capital cost for these projects is estimated to be U.S. $3.3 to $3.6 billion.

Crystal Prystai: Turning now to slide 18 in our Resilient Balance Sheet. Following the close of the EVR 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 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 $2.9 billion. We remain focused on maintaining our investment-grade credit metrics, supported by our resilient balance sheet. And going forward, we expect to generate higher interest income by the additional cash that we're holding on the balance sheet.

Speaker Change: Reporting now to 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.

Speaker Change: With the purchase of US $1.4 billion of our public notes on July 15th through the cash tender offer, we have decreased our outstanding term notes to US $1.1 billion.

Crystal J. Prystai: Our total debt outstanding following the cash tender offer is U.S. $4.3 billion, and our net cash position is currently $2.9 billion Canadian. We remain focused on maintaining our investment grade credit metrics supported by our resilient balance sheet. 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 shipping have declined to $1 to $1.2 billion following the sale of EBR.

Speaker Change: Our total debt outstanding following the cash tender offer is U.S. $4.3 billion and our net cash position is currently $2.9 billion Canadian.

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 the balance sheet.

Crystal Prystai: At the same time, our annual requirements for sustaining capital and capitalized stability have declined to $1.2 billion, falling sale of GDPR. QB is expected to generate significant additional EBIDA and free cash flow at full production, which will further build on the financial resilience. As demand for cover continues to rise and constraints on new supply persist, the value of high-quality, low-cost copper assets will only increase. Overall, tax is strongly positioned to execute on our strategy for responsible growth and value creation.

Speaker Change: 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 GDR.

Jonathan Price: QB is expected to generate significant additional EBITDA and free cash flow at full production, which will further build on the financial resilience. 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. With that, I'll turn it back over to Josh. Thanks, Crystal.

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.

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 valued creation.

Jonathan Price: With that, I'll turn it back over to John. Thanks, Crystal. So going on to our portfolio transformational slide 20.

Jonathan Price: 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: Thank you. As I said earlier, Tanki 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 interested four hills, arching our exit from the oil sounds business. We 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 interest of all shells.

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 projects 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 Nicolás in partnership with Agnico Eagle, which helped us to advance and de-risk those projects.

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.

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

Speaker Change: We 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 interest 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 ventures at new range in partnership with PolyMEN and at Sunday class in partnership with Agnico Evil. This helps us to advance and de-risk those projects. This year we completed construction at QV, which is the driver for our near-to-growth. QV is a transformational tier one asset for tech with a long-life, competitive cost position and meaningful expansion opportunities, and it will be a cornerstone of our copper portfolio decades to come. Finally, we've completed the sale of our steel making coal business, transforming tech into a pure play energy transition metals 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 Agnico Eagle, which help us to advance and de-risk those projects.

Jonathan Price: This year we completed construction at QV, which is the driver for our near-term growth. UB is a transformational tier one asset for Tech with a long life, hesitant cost position, and meaningful expansion opportunities. 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 coal business, transforming Tech into a pure play energy transition company.

Speaker Change: This year we completed construction of QB, 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 sale of our steelmaking coal business, transforming tech into a pure play energy transition battles company.

Jonathan Price: The crystal is just discussed with the significant transaction proceeds in how we've announced significant cash returns to shareholders and taken steps to ensure the tech is strongly in positions to capitalise on the growing demand for copper. We remain committed to balancing our growth with further cash returns to shareholders. 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.

Jonathan Price: 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. 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, slide 21. With the strategic moves that we have made, our commodity mix is now 100% base level.

Speaker Change: As Crystal has just discussed, with the significant transaction proceeds in-house, 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.

Crystal: And we remain committed to balancing our growth with further cash returns to shareholders.

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

Jonathan Price: Moving on to our current portfolio on slide 21. With the strategic moves that we have made, our commodity mix is now 100% base-bevels. We have a solid foundation of long-life producing copper and zinc acids that generate strong cash flow today, including Antamina in Peru, Island Value Copper in British Columbia, and Red Dog in Alaska, and our cornerstone QV acid in Chile, which will generate strong cash flow at full production. We also have mine-life extension opportunities to maintain this foundation, including the island value and antimina in the near-to-growth. Importantly, while our portfolio mix has changed, our focus on maximising long-term value for shareholders has not.

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

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

Jonathan Price: We have a solid foundation of long life producing copper and zinc acids that generate 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 minor life extension opportunities to maintain this foundation, including at Highland Valley and Antimena in the near term. And fourthly, while our portfolio mix has changed, our focus on maximising long-term value for shareholders has not.

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.

Speaker Change: and our cornerstone QB assets 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.

Speaker Change: Importantly, while our portfolio mix has changed, our focus on maximizing long-term value for shareholders has not. We remain committed to operational excellence, ensuring we deliver the full value from our premium-based metals portfolio.

Jonathan Price: We remain committed to operational excellence, ensuring we deliver the full value from our premium base metals portfolio.

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.

Jonathan Price: Returning to our industry, leaving copper growth on slide 22. Over a decade ago, tech recognized the value that could be created through a robust pipeline of copper projects. As a result, we have created a highly viable 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. Tech is now on trying to become a top 10 global copper. Professor, Napoleon copper production with the ramp up of QB, the pathways further increased production by 30% starting as early in 2028.

Speaker Change: Returning to our industry leading copper growth on 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: Doubling copper production with the ramp-up of QV, the pathway further increased 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. And beyond this, by the end of the year, we will develop a definitive plan for near-term, low-capital-intensity de-bottlenecking at QB.

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 QB, the pathway to further increased production by 30% starting as early as 2028.

Jonathan Price: Our near-sim copper projects are high quality, capital efficient, and low operating cost projects, which should enable us to move down the cost curves and generate strong returns. We are also exploring optimization at QB, increased production beyond design throughput capacity with minimal capital. And beyond this, by the end of the year, we will develop the definitive plans for near-to-low capital intensity D-bottle packing at QB. We're progressing a life extension of homeland value to allow for continued production at this stable and profitable core asset for another 17 years.

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 of 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: 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 Zafrenal project for sanction as early as the second half of 2025.

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: Next board will be reviewing the Zapradal project for sanction as early as the second half of 2025. This capital efficient growth project is expected to have a rapid payback driven by high grades in the early years. And if some neglects, we continue to progress feasibility study work and our permitting application. The position has to deliver this low capital intensity project will be expected to generate industry-leading returns. At the same time, we continue to progress on longer-dative projects to ensure that we retain a pipeline of future growth opportunities.

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

Jonathan Price: This capital efficient growth project is expected to have a rapid payback driven by high grades in the early years. And as San Nicolas, we continue to progress feasibility study work in 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: This capital efficient growth project is expected to have a rapid payback driven by high grades in the early years.

Speaker Change: And 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 from project delivery, including managing costs. Corporating learnings from the completed independent review of QB2 into our future projects. Assessing value of 3D opportunities to expand and optimize our high quality operating assets. Ensuring we continue our disciplined capital allocation to generate strong returns. Executing on our well-funded, capital-efficient, near-term copper growth projects. Violence and growth with cash returns to shareholders.

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 a well-funded capital efficient near-term copper growth project, which balances in growth with cash returns to shareholders. Overall, I believe that Teck is uniquely positioned as a pure-plate 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 of creative 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.

Jonathan Price: Overall, I believe that tech is uniquely positioned as a pure-play energy transition metals company with both the premium portfolio of one-life cash-generating assets in well understood jurisdictions and industry-leading copper growth. We're working far to unlock the full potential close with a focus on value creation. I believe that there is incredible value inherent within tech. I'm just in terms of the quality of our assets and the deaths of our copper growth pipeline. We also are responsible in ethical approach to resource development, which is critical to our ability to realize value.

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 the full potential of growth with a focus on value creation. I 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 a client 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 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 be and to all of us in tech. We pursue responsible growth, always focused on value creation. Our capital allocation framework continues to guide us in balancing that growth with cash returns to shareholders. We are strongly positioned to capitalize 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: As we pursue responsible growth, always focused on value creation, our capital allocation framework continues to guide us in balancing that growth with cap returns 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 key. 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: With that, thank you and operated. Please open the line request.

Speaker Change: With that, thank you and operator please open the lines of 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. If you're using a speaker phone, please ensure you lift the headset before pressing any key.

Speaker Change: 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 key.

Operator: 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 Orest Wowkodaw with Gosha Bank. Please go ahead. Good morning. Let's see the progress of QB2.

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

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

Jonathan Price: 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.

Jonathan Price: 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 each two on copper, and then I'm also wondering if it will impact 2025 grade. Thanks, Orest. We are very pleased with the ongoing progress at QB2. The quarter of a quarter improvement again, as we said, is very encouraging.

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 will impact 2025 grade.

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 build.

Orest Wowkodaw: 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 Shazad Bharmal, our SPP of Operations. He'll give you a bit of an overview as to where we are now and the outlook for the second art and build. Thanks, Orest, and perhaps best if I give a viral review of the status and the accomplishments of QB2 date. As we published, should we continue to have monthly improvement in performance and copper production over the last quarter? People who was at 14,600 tons may come in at 17,300, and the June at 19,300 tons. Many of the operations design is robust and no critical issues have been identified.

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.

Sherhzad Bharmal: Perhaps best if I give a broader overview of the status and the accomplishments of QB to date. As we published, QB 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, Orson. Perhaps best if I give a brief 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.

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

Sherhzad Bharmal: Two foot 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% of design rates. So very confident of region full rates here over the next coming months. And focus here is really unstable operations with improved online time. On recovery, we are managing through higher amounts of plays, that end of transition or between the supergene and hybrid human normalization. And we are making good progress. And this has been done with selecting different reagents. I'm tuning the dosing and, of course, modifying some other operating parameters.

Sherhzad Bharmal: Two-foot recovery and head grades are of course the three factors that drive copper production.

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

Sherhzad Bharmal: 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 end up transitioning worse between the supergene and and hypogene mineralization, and we are making good progress. And this is being done by selecting different reagents, fine-tuning the dosing, and, of course, modifying some other operating parameters.

Sherhzad Bharmal: On recovery, we are managing through higher amounts of clays that are in the transition ores 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. Regarding 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. In the second half, we do expect to have more than planned feed head grades.

Sherhzad Bharmal: And as a result, we have a few points behind on recovery with the adjustments and most stable operations, which also contribute to recovery issues. We expect to head target rates in the months ahead. The time when 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. In the second half, we do have both implant feed head grades. This temporary access issues were in access to the higher grade areas in the mind sequence as we had planned originally.

Sherhzad Bharmal: fine-tuning the dosing 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 our recovery issues, we expect to hit target rates in the months ahead.

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.

Sherhzad Bharmal: This temporary access issue was accessing the higher grade areas in the mine sequence as we had planned originally, and this localized geotechnical issue was 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's going to 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. So the implications for, you know, 25, 26 are very minimal.

Speaker Change: In the second half, we do have 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 the focal point is your technical issue is for the access route to these areas. and what we're doing is we're working through reorienting the access ramp in the bed, and additional support and buttressing, and that's what takes several months.

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.

Sherhzad Bharmal: We expect to complete this work, make this here, and then for the access by early next year, and actually in December, we plan to have access to this. So the implications for 25, 26 are very minimal; some of this higher grade will lead into 25, and we'll change our mind sequence, and the balance of it will feed into 20, 26 as well. So overall, really not the meaningful impact into 25, 26, but the meaningful impact in Q3 in particular and Q4 as well.

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 MQ3 in particular and MQ4 as well.

Jonathan Price: Thanks, Shazad. Can you actually give us a guide for the copper grade in each two? Yeah, we'll follow up with that. With Fraser, we'll follow up with some of those details. Maybe I'll find.

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

Sherhzad Bharmal: Yeah, we'll, you know, 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 V-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.

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

Lucas Pipes: The next question is from Lucas Pikes with the Rally Securities. Please go ahead. Thank you very much, operator. Good morning, everyone.

Lucas Nathaniel 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, Lucas, and thanks very much for that question. 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.

Jonathan Price: My first question is on slides 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 with the project it's 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. Good morning, Lucas, and thanks very much for that question. Yes, I mean we are managing this as a portfolio. These projects all have different risk-return characteristics as you would expect. Of course, with QB and Island Valley, these are both ground fields expansions and a QB in particular.

Lucas Nathaniel 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.

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

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, de-bottlenecking that operation, and then a potential expansion of that operation. Zanfranal 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 at San Nicolas, bringing Agnico Eagle into that joint venture with their experience in Mexico.

Speaker Change: Of course, with QB and Highland Valley, you know, these are both brownfields.

Jonathan Price: There's a process there of optimization of the existing operation, the bottlenecking of that operation, and then a potential expansion of that operation. As I'm from Island, San Nicholas, of course, are green field projects, both in jurisdictions where we currently operate. We have good experience of Peru, of course, through Antimedia, and at San Nicholas, bringing Agnico and Eagle into that joint venture with their experience of Mexico. 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. We will evaluate the economics of each of these projects against the relative risk and make those decisions accordingly.

Speaker Change: 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.

Speaker Change: Zafra and Iowa 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 Antimena and at San Nicolas bringing Agnico Eagle into that joint venture with their experience in Mexico. Significantly de-risks our entry there.

Jonathan Price: Significantly, the risks are actually there. 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.

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.

Jonathan Price: The one project where, of course, we do have particular timing considerations, is the Island Valley My 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 San Nicholas, of course, it will be dependent on the outcome of those studies and engineering. But in the case of San Nicholas, as you know, we already have a permit, and that's one again that we have some confidence will be ready for sanctioned within the second half of 2025.

Jonathan Price: You know, the one 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. With Zanfranal and San Nicolas, of course, it will be dependent on the outcome of those studies and engineering.

Speaker Change: The one project where, of course, we do have particular timing considerations is the Island 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.

Speaker Change: With Zafranal 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 Zafranal, 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 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.

Jonathan Price: But in the case of Zanfranal, as you know, we already have a permit, and that's one, again, that we have some confidence will be ready for use 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 to that, what what would be a reasonable zip code?

Jonathan Price: 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.

Lucas Pipes: Thank you very much, and quick clarification question for slide seven at the higher level question as well. The capital requirements of 1.2 billion, I believe that's Canadian, and sustaining capital and capitalized stripping, I assume that would be too low for 2025 because there's always some spending on developing topics. So if you kind of were to fully bake that the capital spending for 2025, what would be a reasonable zip code?

Speaker Change: Thank you. Thank you very much. And a quick clarification question for slide 7, a 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.

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

Jonathan Price: 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.

Jonathan Price: And then the higher level question is that from this side of the quarter it appeared that the approval of the EBR sale was somewhat grudging. 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 the future. Interesting in tech. Thank you very much for your respect. Thanks, Lou. This you manage to sneak in a couple of a couple of questions there. Look on the first one, the one to 1.2 billion dollars is very much within our expectations for sustaining capital and capitalized stripping for the years ahead.

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.

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.

Jonathan Price: 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 processes, you know, this year that starts amassing to around 500 million dollars in aggregate. And, you know, of course, projects where they're in the advanced stages of feasibility study and engineering tends to be where the highest pre-execution spend occurs. So, while those projects remain in this space, you could expect to see us spending at a similar rate through 2025 is, you know, probably the best way to articulate that at the moment.

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: 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. While those projects remain at this phase, you can 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: But in terms of the, you know, 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 then also the potential for major investments in Peru and Mexico. And I think, you know, the execution of that strategy and our focus on creating, you know, a value for all shareholders remains at the front and center of what we do.

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

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. 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. 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: From our perspective, there is 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.

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

Jonathan Price: 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 Pruzelozki with BMO Capital Markets. Please go ahead. Thanks very much. I have my first question.

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

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 this geotechnical issue will be 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.

Jackie Przybylowski: I think I'd like to follow up on or is question about the, the geotechnical issues that QE2. Understand that you have just given us like 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 great profiles for a second half as well. My question is, do you expect a geotechnical issue is anything serious, faulting, or anything that could impact mining operations going forward? Thanks. I'll pop up back to sit down again, but the high level answer is no, but I'll let's avoid a bit more color.

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: 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 bifurcate right and reorient it for the longer term. So really, in normal operations, these things are fine, and 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 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.

Sherhzad Bharmal: Jackie, this instability has been an audience stability, so it didn't come out of the blue. It just was a bit deeper in than what we had planned, and as we are operating around that with blasting, we're taking extra precaution to make sure that we do by trusted right and reoriented for the longer term. So really normal operations, these things finding, you know, it's early in the mind plan, and if it wasn't advanced in mature mind, you would have other phases to be able to address this. These are pretty; these are not abnormal instability that we haven't.

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

Sherhzad Bharmal: 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.

Sherhzad Bharmal: 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.

Crystal J. Prystai: 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 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 spend that $2.75 billion? Is that like a multi-year program thing?

Crystal Prystai: And as a follow-up second question, maybe this one's for Crystal. On the share buyback plan, understand you've got two plans on the goal 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's completed in the third quarter, and then the new buyback starts in the fourth quarter, and over, over, so which period do you expect to do that 2.75 billion? Is that like a multi-year program? Thanks. Thanks, Jackie.

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

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, Jackie. Welcome back. Nice to hear from you. Yeah, some 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, you know, we're targeting 12 to 24 months to complete that, but again, it depends on valuation and market conditions.

Crystal Prystai: Welcome back. Nice to hear from you. Yeah, good question. 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 evaluation 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, depends on valuation and market conditions. 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 NCID, which happens at the end of October.

Speaker Change: Thanks, Jackie. Welcome back. 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...

Speaker Change: To close out, 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, you know, we're targeting 12 to 24 months.

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 complete that. But again, it depends on valuation and market conditions. 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...

Crystal Prystai: So I think Jackie just wants that, you know, don't need to think of those really as two separate organizations 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: [inaudible]

Crystal J. Prystai: 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.

Liam Fitzpatrick: The next question is from Liam Fitzpatrick with Georgia Bank. Please go ahead. Good morning, everyone. First question is just on the independent review. That's been completed now at the Q or Garden, 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 this next phase of growth that you're now talking about? Thanks very much for that, Liam.

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 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 this next phase of growth that you're now talking about? We're going to need world-class project managers.

Liam Fitzpatrick: Good morning everyone. First question is just on the independent review that's been completed now.

Speaker Change: at McHugh or 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?

Jonathan Price: I'll just focus on the second question. The answer is yes, but we still will continue to build more debt and bench rent in the project team here, of course, given the slate of activity. We have ahead of us, we're going to need a world-class project managers. We have some of those data signs of these projects, but we'll do more of them to execute the growth strategy going forward. But you know, we're also building out other areas of the team that support those project managers. So, so we have a world class people now assigned to the project in the native that will continue to build up bench going forward.

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.

Jonathan Price: We have some of those to date assigned to these projects, but we'll need more of them to execute the growth strategy going forward. We're also building out other areas of the team that support those project managers. We have world-class people now assigned to projects in the near term, but we'll continue to build that bench going forward. Talking of world-class people, I'm going to hand you over to our head of project, 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.

Speaker Change: In the project team here, of course, given the slate of activity we have ahead of us, we're going to need world-class project managers. We have some of those to date assigned to these projects, but we'll need more of them to execute the growth strategy going forward. 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 that bench going forward. Talking of world-class people, I'm going to hand you on to our Head of Project, Carla Mills, who will talk a little bit about the results of the QB review and how we're applying those in your area.

Carla Mills: 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 here area. Sure, thank you, Jonathan. I think it's important to start with the fact that from the outset, we knew that QB 2 was the complex and challenging project, especially given the altitude and scale of the project. Along with those factors, the project review highlighted additional areas for improvement and learning, and we are taking them forward in our project execution.

Carla Mills: 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 implementing over the last several months.

Carla Mills: 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, 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, invalidated learnings we've already identified and have already been actioning over the last several months.

Carla Mills: In a number of cases, it validated learning speed already identified and have already been actioning over the last several months. Perhaps to offer maybe a few examples of highlights from our findings. One is the need for increased geotechnical drilling, is impacted construction at the port, the talent 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 closely became constrained. And of course enhancing oversight from our tech owners team, when we switch from a to a time of materials execution basis.

Carla Mills: Perhaps to offer maybe a few examples and highlights from our findings. One is the need for increased geotechnical drilling which has impacted construction at the port, the killings 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 the supply chain globally became constrained.

Speaker Change: To offer maybe a few examples and 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.

Carla Mills: And, of course, enhancing oversight from our tech owners team when we switch from a time of materials to a time of service execution. 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, including what Jonathan's already highlighted.

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

Carla Mills: 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. 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, boost our efficiencies. This will lead to more informed and faster decisions.

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: 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 with 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.

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 systems. 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.

Carla Mills: 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 shaped into our project moving forward and contribute to strengthening execution as we advance our corporate growth strategy.

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

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

Carla Mills: Okay, thank you. Thank you 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, I'll ask Sherhzad just to talk about the three phases we see going forward here and the associated permitting strategies that will be required. So, 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; that would be within our permitted ranges.

Carla Mills: Just as a quick follow-up on the debuffs we're making at QB, can you just remind us what additional permits you may need to get before you can progress with that? Yeah, our host is out just to talk sort of the three phases we see going forward here and the associated permitting strategies to be required. So, you know, Jonathan mentioned we have the three phases of optimization of debutting, and then we will consider later after that a more robust expansion project. For the optimization, we do not expect to meet any permits that would be within our permitting ranges, and we're talking five to 15 percent, and it will would increase, which one contains like increasing redundancies to get better online times and some minor modifications of some equipment that might be a little bit more capacity.

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?

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

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

Sherhzad Bharmal: and we're talking 5 to 15% and we've increased.

Sherhzad Bharmal: 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.

Carla Mills: When we come to the debutting study we will need to make some more meaningful modifications and some additional equipment, you know, and that is things like repowering conveyors and having bigger pumps as well to be able to handle higher capacities whether it be of material flows or conveying systems. And this of course would 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 expect to submit it before the end of the year. And then once we receive that permit we would continue with making those changes and achieve the higher throughput rates and that for that we're looking at somewhere we pretend to 15 percent increase further in.

Sherhzad Bharmal: When we come to the deep water landing study, we will need to make some more meaningful modifications and some additional equipment.

Sherhzad Bharmal: 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.

Sherhzad Bharmal: And this, of course, will be more capital, very low capital intensity because most of the major infrastructure...

Sherhzad Bharmal: D-Cell 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 higher throughput rates and that for that we're looking at somewhere between 10 to 15 percent increase further increase

Timna Tanners: The next question is from Timna Tanners with Wolf Research. Please go ahead. Hey, good morning. Thanks for the detail. I want to clarify, please, on the guided 3-3.6 billion U.S. for copper growth. What exactly is in that? Is that to spend Nick and Stefano and Holland Valley expansion? Does that already include the revisiting of the total capital cost? You had told us you were going to conduct for, and then I guess along the same line, when are we going to get updated costs on an operating basis and capital cost? Thanks. Yeah, thanks, Timna.

Sherhzad Bharmal: 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 de-bottling study, we will need to make some more meaningful modifications and some additional equipment, uh you know and that is things like repowering conveyors or uh and having bigger pumps as well to be able to handle higher capacities uh whether it be of uh material flows or conveying systems and this of course will be very low capital intensity because most of the major infrastructure like desal, pipelines, transmission would not need any increases 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, and achieve the high end football play. So now for that we're looking at somewhere between 10 to 15% increase further increase. The next question is from Kimna Tanners with Wolf Research. Please go ahead. Hey, good morning.

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

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

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

Kimna Tanners: I want to get clarified, please, on the guided $3 to $3.6 billion U.S. for copper growth. What exactly is in that? Is that to spend nick 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 for, and then I guess along those same lines, when are we going to get updated?

Jonathan Price: Is that just Sennick and Saffron 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.

Speaker Change: Photography and Image Cloud Green Lake both on an Operating Basis and Capital Costs.

Jonathan Price: Essentially, that range, it does capture the projects that you mentioned. There's some allowance in there for QV, some of the work issues I was just discussing as well. 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 benches 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 the in-study of an engineering, of course, when we get to those definitive estimates.

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

Speaker Change: Thanks Tim. Essentially that range, it 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.

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

Jonathan Price: 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: 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.

Jonathan Price: But we've done this with a new forward as to our best understanding today is to where those costs are likely to land. Okay, so thank you for that.

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.

unknown: 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.

Jonathan Price: And then I guess follow-up is when can we expect the 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. Yeah, thanks, Timma. I think you're, you're just asking you, you kind of mixed up maybe operating capital, so maybe can you just clarify whether you're referring to an update on operating or a capital cost? I was asking for all of the above, so sorry for the contagion. Oh, it's okay.

Speaker Change: Okay, so thank you for that. And then I guess, follow up is, when can we expect the 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.

Speaker Change: Thanks Kimna. I think you were just asking, you kind of mixed up maybe operating capital, so maybe can you just clarify whether you are referring to an update on operating costs or capital costs?

Jonathan Price: 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 look at catbacks and off X4 2025, including view on QVs. The cost of operations are ramped 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 adhering and setting work is completed.

Speaker Change: I was asking...

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

Speaker Change: Low-Cat Catbacks and Off-Cats 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 study work is completed.

Carlos Alba: The next question is from Carlos de Alba with Morgan Stanley. Please go ahead. Carlos de Alba with Morgan Stanley, your line is open. Hi, hello, good morning. Can you hear me now? Yes. Great. Sorry, it was a minute.

Carlos de Alba: Can you clarify if you are referring to an update on operating costs or capital costs? The next question is from Carlos Alba with Morgan Stanley. Please go ahead. Carlos Alba, your line is open.

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

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

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

Speaker Change: Hi. Hi. Hello. Good morning. Can you hear me now?

Carlos de Alba: Great. Sorry, I was on mute. Yeah, maybe a follow up on the CAPEX discussion. Do you already have a broad ballpark range of CAPEX per project? The four maybe that we have been discussing, QB expansion, software, and apps, and NICOLAS and HBC, LightMine expansion? 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.

Jonathan Price: Yeah, maybe I'll follow up on the Capix discussion. Do you have already a broad ballpark range of the CapEx per project? The four maybe that we have been discussing to be expansion of software and mathematical math and the like-minded dimension? Well, the plan for it 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 said, we need to complete the work on studies, engineering, and estimates, et cetera, to have more confidence in those ranges.

Speaker Change: Thank you. Bye.

Speaker Change: Great. Sorry, I was on mute. Yeah, maybe a follow-up on the CAPEX discussion. Do you have already...

Speaker Change: A broad ballpark range of the CAPEX project, the four that we have been discussing, QB Expansion, Software Labs, Semiconductor Labs, and HVC Light Mine Expansion.

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: But the aggregate that is the best understanding of being the capital profile for that. Okay.

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 peace negotiations? 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.

Jonathan Price: Yeah, we'll look forward to the breakdown when you're ready to provide that.

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 Nicolas.

Jonathan Price: And then that this project, if you decide to go ahead, would be able to be built and do our own given the potential constitutional reform in the country that may buy an open copy of the binding. So, for example, the question is, yeah, well, we're not sure if the band would be on new operating concessions, but those that already have exploration permit and are on their development in a way would be okay. Yeah, look, we acknowledge the uncertainty, Carlos, with respect to San Nicolas and that permit. Our experience today is that the permit process continues to proceed as planned.

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-counterfeit mining?

Speaker Change: So, basically the question is...

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, 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. 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, 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.

Jonathan Price: We go 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 in more broadly in terms of legislation, including changes in the judiciary, perhaps in the country. So, there's a few that the few things that play there, but from what we can see on the ground today and that our experience opposite the regulator is a fantastic positive. So, we continue to 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 service and technical assignment.

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, but from what we can see on the ground today and our experience opposite the regulator, it's positive, so we continue to...

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. 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: To 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.

Bill Peterson: The next question is from Bill Peterson with JP Morgan.

Bill Peterson: Please go ahead. 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 extra color on the time for an issue? Did this have any impact? I guess quarter to date. I'm trying to think about the production race through the remainder of the year.

Speaker Change: The next question is from Bill Peterson with J.P. 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 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,

Bill Peterson: Should we think of it actually taking a slight step down in the third quarter before I guess improving the fourth quarter to where the peer to be? I think you said earlier, you hope to be at full production still around 25 trillion tons. Just trying to get a sense for the trajectory here.

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 still around 25 kilotons. Just trying to get a sense for the trajectory here.

Sherhzad Bharmal: We're 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 begin, as it's just out, to give a little bit more detail on the underlying issues associated with the geotechnical problem with grey and with the transition rules. Like I mentioned before, this was a known area of instability, and it was laid in the quarter when we understood the implications for something a different access rather than just buttressing or reorienting the access, and that would prevent access to these high grade areas.

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 add to Sherhzad to give a little bit more detail on the underlying issues associated with the geotechnical problem with GRADE and with the transitionals. As I mentioned before, this was a known area of instability. And it was late in the quarter when we understood the implications of a linkage of an access rather than just buttressing or reorienting the access, which 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, hand this to Sherhzad to give a little bit more detail on the underlying issues associated with COVID-19.

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

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

Shazad: When we understood the implications for filling a different access rather than just buttressing or reorienting the access, and that would...

Jonathan Price: And so really, it's, it's an H2 issue mostly. And, and as Jonathan mentioned, it's not to take a step down, it's to continue the improvements that we've had, and throughput rates will continue to improve on GRADE. And just compared to what we planned to have, slightly lower grade.

Sherhzad Bharmal: And so really it's an age to 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 so both continue; the throughput rates continue to improve on grey, and just compare the plan to have slightly lower grade.

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

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

Ian Anderson: Okay, thanks. Thanks for that.

Speaker Change: Slightly lower grade.

Ian Anderson: So actually change the subject on the zinc, just trying to get a sense of what you're seeing in the zinc mark, which considering where TCRCs are in global snout throughout, which appears to actually be contracting. What are you assuming for supply demand balances in the back after the year and into next year?

William Chapman Peterson: 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 markets, considering where TCRCs are on global smelter output, which appears to actually be contracting. What are you assuming for supply and demand balances in the back half of the year and into next year? Thanks.

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

Speaker Change: TCRC is our global smelter output which appears to actually be contracting. What are you assuming for supply to demand balance is in the back half of the year and into next year? Right thanks for that question Bill. I'll hand you over to our Ian Anderson our Chief Commercial Officer.

Ian Anderson: Thanks, thanks, without question, but I'll hand you over to Ian Anderson on Chief Commercial Officer. Thank you for the question. So what we're seeing currently is that the zinc mark is definitely indeficent. And the reason 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. There have been, you know, an initial start, for example, at Capucci. We're expecting over the median term restarted tar, for example. And of course, Ozernoise is also predicted, but really those don't come on this year.

Ian K. 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 has been, you know, an initial start, for example, at Kapuzhi.

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

Ian K. 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 K. Anderson: We're expecting, over the medium term, a restart at Tar, for example, and, of course, Ozernoy is also predicted, but really, those don't come on line this year. And so, the reflection that you're seeing in the very low TCs for zinc is a result of that deficit.

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

Ian K. Anderson: 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. 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 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: And so the reflecting that you're seeing in the very low TCRs for zinc, 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 a trivial lack of available feed. So we are seeing, of course, poor pricing in the zinc market. We're seeing conditions in finished metal really coming along and stable premiums there. And so we do anticipate that we're made and slight deficit for this year and are expecting the same thing for the first half of 2025 small.

Ian K. Anderson: And so the reflection 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 K. 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. Okay.

Ian K. Anderson: Thanks for the question.

Brian Macarthur: And the last question we have time for today is from Brian MacArthur with Raymond James. Your line is open. Thank you, and thank you for taking my questions. My first question just appreciates all the guidance for EBITDA and ongoing CAPEX, but as I think about the jurisdiction you're getting. Can you give any guidance for one A tax rate going forward and B, I guess, tax tax rate as a time figure of 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 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 they will get cash flow and earnings 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.

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'll 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, and obviously, Fraser can provide more, and teams can provide more support offline on the modeling aspect.

Crystal Prystai: 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 on a continuing operation basis to be in the 41 to 43 percent range. That obviously is the impact of the sale and full business and the anatomy dividend. Beyond 2024, we still continue to think that 41 to 43 percent is a reasonable sideline, where we're profitable across all our business units. And we have, you know, aggregate operating margins that are relatively large in comparison to corporate costs and finance costs. I think that, you know, that doesn't necessarily build in our growth projects, and there'll be some work that we have to do in that regard.

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 on a continuing operations basis to be in that 41-43% range. That obviously excludes the impact of the sales, full business, and the anatomy dividend.

Speaker Change: Beyond 2024, we still continue to think that 41-43% is a reasonable number.

Speaker Change: Where we're profitable across all our business units. We have aggregate operating margins that are relatively large in comparison to corporate costs.

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

Robin Sheremeta: But I think we just encourage you to 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 bodily assets. Great, that's very helpful. And maybe if I just asked one more, and maybe, maybe it's for Robin. Obviously, you highlight the whole business that pretty well this quarter as you run weights with two maintenance; they made it shut down. Can you maybe just go through what happened and maybe a second question. Are the operations down the state that they'll run at the 26 million tons a year?

Speaker Change: Thank you for joining us today for our Growth Projects. 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 41-43 and we can provide more guidance when we need to.

Speaker Change: 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 ask 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. And maybe if I just ask one more, and maybe maybe it's for Robin, obviously you highlight the whole businesses.

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...

Robin Sheremeta: And I guess maybe a final question, I guess with the call being business being sold, what Robyn's plans are next. Yeah, thanks, Brian. I'll hand you over to Robin in a moment. We won't give any forward with guidance, but the gold businesses you might expect. I'm just going to quickly make a comment on Robin. Robin will be retiring from tech in the coming months. Robyn's been with us for 36 years. Most recently, as our president of coal, he has quite literally delivered as truckloads and 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 tech, particularly in respect of his safety leadership and the safety programs that he's established here over many years.

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

Speaker Change: Yeah, 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 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.

Robin Sheremeta: So we just want to recognize and thank Robyn 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 a question. I didn't expect one this round. 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 the all all the operations combined are an extraordinary good shape right now. So we're seeing the best state to performance. We've ever seen in history.

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

Brian MacArthur: And maybe a second question? Are the operations down in the states that they'll run at 26 million tons a year? And maybe a final question, I guess, with the coal business being sold, what Robin's plans are next? Yeah, thanks, Brian. I'll hand you over to Robin in a moment. We won't give any forward-looking guidance.

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 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.

Jonathan Price: 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. He'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.

Robin B. Sheremeta: 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.

Robin B. Sheremeta: 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.

Robin Sheremeta: We've got our water treatment plants are all performing well. All the plants ran really well to the quarter. 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, up to the new owners now to take it forward, but the business isn't in exceptionally good shape. And that was demonstrated in that quarter. Thank you very much, Jonathan.

Robin: We're seeing the best safety performance we've ever seen in history. We've got our water treatment plants are all performing well. All the plants ran really well through the quarter. And this is really business as usual from my perspective. So I'm proud of the team that got us to the point.

Robin B. 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 the new owners now to take it forward. But the business is in exceptionally good shape, and that was demonstrated in that quarter.

Robin: 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.

Jonathan Price: 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.

Jonathan Price: I'm Robin. Good luck.

Operator: Thank you, Brian, and thank you to everyone for joining us today, and thank you for all the questions. Just a 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. Adeva, 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.

Jonathan Price: As ever, 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.

Speaker Change: Thank you very much Jonathan and Robin and good luck.

Speaker Change: Thank you, Brian , and thank you to everyone for joining us today, and thank you for all the questions. Just a note, we are planning to hold the Strategy Day in Vancouver on November 5th.

Speaker Change: 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. As ever, 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.

Operator: Thank you for participating, and have a pleasant day.

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