Q3 2025 Teck Resources Ltd Earnings Call
Speaker #3: Ladies and gentlemen , thank you for standing by . Welcome to Texas . Third quarter 2025 Earnings Release conference call . At this time , all participants are in listen only mode .
Operator: Ladies and gentlemen, thank you for standing by. Welcome to Teck Resources Ltd's third quarter 2025 earnings release conference call. At this time, all participants are in listen-only mode. Later, we will conduct a question and answer session. To join the question queue, press star then one on your touch-tone phone. Should anyone need assistance during the conference call, they may reach an operator by pressing star then zero on their telephone. This conference call is being recorded on Wednesday, October 22, 2025. I would now like to turn the conference over to Emma Chapman, Vice President, Investor Relations. Please go ahead.
Speaker #3: Later , we will conduct a question and answer session . To join the question queue , press star , then one on your touchtone phone .
Speaker #3: Should anyone need assistance during the conference call , they may reach an operator by pressing star . Then zero on their telephone . This conference call is being recorded on Wednesday , October 22nd , 2025 .
Speaker #3: I would now like to turn the conference over to Emma Chapman Vice President , Investor Relations . Please go ahead .
Speaker #4: Thank you . Operator . Good morning , everyone , and thank you for joining us for Tech's third quarter 2025 conference call . Today's call contains forward looking statements .
Emma Chapman: Thank you, Operator. Good morning, everyone, and thank you for joining us for Teck Resources Ltd's third quarter 2025 conference call. Today's call contains forward-looking statements. Actual results may vary due to various risks and uncertainties. Teck Resources Ltd does not assume the obligation to update any forward-looking statements. Please refer to slide two for the assumptions underlying our forward-looking statements. We will reference non-GAAP measures throughout this presentation. Explanations and reconciliations are in our MD&A and the latest press release on our website. On today's call, Jonathan Price, our CEO, will provide third quarter 2025 highlights. Crystal Prystai, our CFO, will follow with further details on the quarter. Jonathan will then wrap up with closing remarks and an opportunity for Q&A. Over to you, Jonathan.
Speaker #4: Actual results may vary due to various risks and uncertainties . Tech does not assume the obligation to update any forward looking statements . Please refer to slide two for the assumptions underlying our forward looking statements .
Speaker #4: We will reference non-GAAP measures throughout this presentation . Explanations and reconciliations are in our MDA and the latest press release on our website .
Speaker #4: On today's call, Jonathan Price, our CEO, will provide third quarter 2025 highlights. Crystal Prystai, our CFO, will follow with further details on the quarter.
Speaker #4: Jonathan will then wrap up with closing remarks and an opportunity for Q&A . Over to you , Jonathan .
Speaker #5: Thank you , Emma , and good morning , everyone . Starting with highlights from our third quarter 2025 results on slide four . The most significant highlight of the quarter was our September 8th announcement of a merger of equals agreement with Anglo American .
Jonathan Price: Thank you, Emma, and good morning, everyone. Starting with highlights from our third quarter 2025 results on slide four. The most significant highlight of the quarter was our September 8th announcement of a merger of equals agreement with Anglo American. This is a unique opportunity to create a global leader in critical minerals and a top five copper producer, and I could not be more excited about it, particularly about the substantial value creation that could be generated. Anglo Tech will have an industry-leading portfolio with more than 1.2 million tons of annual copper production, underpinned by six world-class copper assets and outstanding future growth optionality. This will make Anglo Tech one of the world's leading investable copper opportunities, offering both scale and quality with over 70% copper exposure.
Speaker #5: This is a unique opportunity to create a global leader in critical minerals and a top five copper producer . And I could not be more excited about it , particularly about the substantial value creation that could be generated .
Speaker #5: Anglo tech will have an industry leading portfolio with more than 1.2 million tons of annual copper production , underpinned by six world class copper assets and outstanding future growth .
Speaker #5: Optionality. This will make Anglo Tech one of the world's leading investable copper opportunities, offering both scale and quality with over 70% copper exposure.
Speaker #5: This transformative combination will unlock significant value for shareholders through compelling adjacencies generated by integrating the resources and infrastructure of Qbi and neighboring Coyote, and through meaningful corporate synergies.
Jonathan Price: This transformative combination will unlock significant value for shareholders through compelling adjacencies generated by integrating the resources and infrastructure of QB and neighboring Coya Sur and through meaningful corporate synergies. Anglo Tech will work with stakeholders to optimize the value of the adjacencies. We expect to produce 175,000 tons of incremental copper and generate an annual average underlying EBITDA uplift of at least $1.4 billion per year for at least 20 years on a 100% basis. Working together with Anglo Tech will materially de-risk and accelerate our ability to realize this value opportunity with aligned incentives on both the QB and Coya Sur sites. Over $800 million in recurring annual synergies have also been identified, and we expect approximately 80% of that to be achieved by the end of the second year following completion.
Speaker #5: Anglo tech will work with stakeholders to optimize the value of the adjacencies we expect to produce . 175,000 tons of incremental copper and generate an annual average underlying EBITDA uplift of at least 1.4 billion USD per year for at least 20 years on a 100% basis .
Speaker #5: Working together as Anglo Tech will materially de-risk and accelerate our ability to realize this value opportunity with aligned incentives on both the Qbi and coyote sides .
Speaker #5: Over 800 million USD in recurring annual synergies have also been identified , and we expect approximately 80% of that to be achieved by the end of the second year , following completion .
Speaker #5: In addition, the combined company is expected to have a strong balance sheet supported by a larger, more diversified asset and cash flow base, including premium iron ore and zinc.
Jonathan Price: In addition, the combined company is expected to have a strong balance sheet supported by a larger, more diversified asset and cash flow base, including premium iron ore and zinc. Anglo Tech's scale and balance sheet will expand the opportunity set as we optimize the approach to growth through the combination of two significant project pipelines that will compete for capital based on risk-adjusted returns. Both Anglo American and Teck Resources Ltd believe the merger will enhance portfolio quality, financial and operational resilience, and strategic positioning, and it will be highly attractive for our respective shareholders and stakeholders. Another key highlight of the quarter was completion of our comprehensive operational review. The focus of our review was on improving performance through a detailed QB action plan and identifying opportunities to enhance operational practices across the portfolio.
Speaker #5: Anglo Teck's scale and balance sheet will expand the opportunity set as we optimize the approach to growth through the combination of two significant project pipelines that will compete for capital based on risk adjusted returns , both Anglo American and Tech believe the merger will enhance portfolio quality , financial and operational resilience , and strategic positioning , and it will be highly attractive for our respective shareholders and stakeholders .
Speaker #5: Another key highlight of the quarter was the completion of our comprehensive operational review. The focus of our review was on improving performance through a detailed Qbi action plan and identifying opportunities to enhance operational practices across the portfolio.
Speaker #5: This included a detailed assessment of operational plans for all our assets, with review and input from third-party technical experts and independent advisors, and with oversight by the Safety Operations and Projects Committee of our Board of Directors.
Jonathan Price: This included a detailed assessment of operational plans for all our assets, with review and input from third-party technical experts and independent advisors, and with oversight by the Safety, Operations, and Projects Committee of our Board of Directors. As a result, we now have updated risk-adjusted operational plans that are reasonable, achievable, and more conservative as we embed assumptions based on demonstrated performance rather than design risks. At QB, our revised operational plan reflects ongoing work on development of the Tailings Management Facility, or TMF, and the resulting constraints on our mill. In the QB action plan, our near-term priority remains enabling safe, unconstrained production by raising the crest height of the dam and working on solutions to improve sand drainage towards design targets. We are confident that we have thoroughly assessed and understood the issues at QB, and we have a defined and measurable path forward.
Speaker #5: As a result , we now have updated risk adjusted operational plans that are reasonable , achievable and more conservative as we embed assumptions based on demonstrated performance rather than design rates at QB , our revised operational plan reflects ongoing work on development of the tailings management Facility , or TMF , and the resulting constraint on our mill in the QB Action plan .
Speaker #5: Our near-term priority remains enabling safe, unconstrained production by raising the crest height of the dam and working on solutions to improve sand drainage towards design targets.
Speaker #5: We are confident that we have thoroughly assessed and understood the issues at QB, and we have a defined and measurable path forward. From the beginning of 2027 onwards, we expect that the TMF development work will no longer be a constraint on the mill.
Jonathan Price: From the beginning of 2027 onwards, we expect that the TMF development work will no longer be a constraint on the mill. Overall, in the third quarter, our profitability improved compared to the same period last year to $1.2 billion of adjusted EBITDA. Our established operations performed well, particularly Red Dog and Trail, with Red Dog sales exceeding guidance and continued improvement in Trail's profitability. Performance also improved at Highland Valley and CDA compared with Q3 2024. Excluding QB, our copper production increased from the same period last year. Our balance sheet remains very strong with $9.5 billion of liquidity, including $5.3 billion in cash. The board sanctioned the Highland Valley Mine life extension in July, which will extend production from a core asset to 2046.
Speaker #5: Overall , in the third quarter , our profitability improved compared to the same period last year to $1.2 billion of adjusted EBITDA . Our established operations performed well , particularly Red Dog and Trail , with Red dog sales exceeding guidance and continued improvement in trails profitability performance also improved at Highland Valley and CDA compared with Q3 2024 .
Speaker #5: Excluding Qbi , our copper production increased from the same period last year . Our balance sheet remains very strong , with $9.5 billion of liquidity , including $5.3 billion in cash and the board sanctioned the Highland Valley Mine Life Extension in July , which will extend production from a core asset to 2046 .
Speaker #5: Turning to safety and sustainability on slide five , year to date through September 30th , our high potential incident frequency rate was 0.06 at tech controlled operations .
Jonathan Price: Turning to safety and sustainability on slide five, year to date through September 30, our high potential incident frequency rate was 0.06 at Teck-controlled operations. Safety performance is considered a key indicator of stable operating performance, and we have seen a strong improvement with our HPI rate trending 50% below the annual rate last year. We were thrilled to see our Chilean operations reach 100% renewable power on October 1, when our long-term clean power agreement for QB's electricity supply came into effect. We'd signed that agreement some time ago when there was not enough renewable capacity in place in Chile to be able to make that switch. The agreement enabled our partner to put additional renewable capacity in place, and it's great to see the benefit of that come to fruition. With that, I'll turn it over to Crystal.
Speaker #5: Safety performance is considered a key indicator of stable operating performance , and we have seen a strong improvement with our HB rate trending 50% below the annual rate last year , and we were thrilled to see our Chilean operations reach 100% .
Speaker #5: Renewable power on October 1st , when our long term clean Power Agreement for QBs electricity supply came into effect . We signed that agreement some time ago when there was not enough renewable capacity in place in Chile to be able to make that switch .
Speaker #5: The agreement enabled our partner to put additional renewable capacity in place, and it's great to see the benefit of that come to fruition.
Speaker #5: And with that , I'll turn it over to Kristal .
Speaker #6: Thanks , Jonathan . Good morning everyone . I will start with our third quarter 2025 financial performance on slide seven . Our adjusted EBITDA increased by 19% in the quarter compared to a year ago , to 1.2 billion , driven by higher base metals prices by product revenues , and significantly stronger copper .
Crystal Prystai: Thanks, Jonathan. Good morning, everyone. I will start with our third quarter 2025 financial performance on slide seven. Our adjusted EBITDA increased by 19% in the quarter compared to a year ago to $1.2 billion, driven by higher base metals prices, byproduct revenues, and significantly stronger copper, significantly lower copper smelter processing charges, as well as strong performance across our established operations, most significantly in our zinc business. Red Dog zinc sales and another profitable quarter from Trail operations drove an increase in our adjusted EBITDA, although this was partially offset by higher operating costs at QB. While we completed $144 million of share buybacks in July, we have not executed share buybacks since July 25 and will not be permitted to execute further buybacks through the closing of our proposed merger with Anglo American.
Speaker #6: Significantly lower copper smelter processing charges, as well as strong performance across our established operations, most significantly in our zinc business. Red Dog zinc sales and another profitable quarter from Trail operations drove an increase in our adjusted EBITDA.
Speaker #6: Although this was partially offset by higher operating costs at QB . And while we completed $144 million of share buybacks in July , we have not executed share buybacks since July 25th and will not be permitted to execute further buybacks through the closing of our proposed merger with Anglo American .
Speaker #6: Importantly, we will continue to return cash to shareholders through our annual base dividend of $0.50 per share, which is paid quarterly.
Crystal Prystai: Importantly, we will continue to return cash to shareholders through our annual base dividend of $0.50 per share, which is paid quarterly. Slide eight summarizes the key drivers of our financial performance in the third quarter compared to the same period in 2024. Our adjusted EBITDA increased by $185 million to $1.2 billion. In Q3, we realized higher copper and zinc prices, as well as higher byproduct revenue, lower smelter processing charges, and an increase in sales volumes. This was partially offset by an increase in royalties at Red Dog due to strong profitability and higher operating costs at QB. Our Q3 2024 EBITDA was impacted by a post-tax impairment charge on Trail operations. Now looking at each of our reporting segments in greater detail and starting with copper on slide nine.
Speaker #6: Slide eight summarizes the key drivers of our financial performance in the third quarter, compared to the same period in 2020. Our adjusted EBITDA increased by $185 million to $1.2 billion in Q3.
Speaker #6: We realized higher copper and zinc prices , as well as higher byproduct revenue , lower smelter processing charges and an increase in sales volumes .
Speaker #6: This was partially offset by an increase in royalties at Red Dog due to strong profitability and higher operating costs. At Qbi, our Q3 2024 EBITDA was impacted by a post-tax impairment charge on trail operations.
Speaker #6: Now , looking at each of our reporting segments in greater detail and starting with copper on slide nine . In the third quarter , gross profit before depreciation and amortization from our copper segment improved 23% to 740 million compared with the same period last year , primarily due to higher base metals prices and lower smelter processing charges .
Crystal Prystai: In the third quarter, gross profit before depreciation and amortization from our copper segment improved 23% to $740 million compared with the same period last year, primarily due to higher base metals prices and lower smelter processing charges. QB production was constrained due to TMF development work, but we expect to see less downtime impacting performance in the fourth quarter. Excluding QB, our production increased from Q3 2024, driven by higher throughput and grades at Highland Valley and higher grades and recoveries at Carmen de Andacollo and Antamina. Antamina's production reflects a higher proportion of copper-zinc ore this year, as expected in the mine plan. Our copper net cash unit cost improved by $0.16 per pound, despite higher operating costs at QB, primarily due to lower smelter processing costs and increased byproduct credits, including QB molybdenum.
Speaker #6: Qbi production was constrained due to TMF development work , but we expect to see less downtime impacting performance in the fourth quarter . Excluding Qbi , our production increased from Q3 2024 , driven by higher throughput and grades at Highland Valley and higher grades and recoveries at Carmen to Andacollo and Minas .
Speaker #6: Production reflects a higher proportion of copper , zinc ore this year , as expected in the mine plan , our copper net cash unit cost improved by $0.16 US per pound despite higher operating costs at Qbi , primarily due to lower smelter processing costs and increased byproduct credits , including qbi molybdenum following board sanction of the Highland Valley Mine Life Extension in July , the project has entered the execution phase .
Crystal Prystai: Following Board sanction of the Highland Valley Mine Life extension in July, the project has entered the execution phase. Engineering and procurement activities are well underway, and site mobilization has begun. Our outlook for our copper segment is aligned with our October 7 news release. For 2025, we expect annual copper production of 415,000 to 465,000 tons and copper net cash unit cost of $2.05 to $2.30 per pound. Turning to our zinc segment on slide 10. In the third quarter, gross profit before depreciation and amortization for our zinc segment improved 27% to $454 million compared with the same period last year. This was primarily due to higher byproduct revenues, higher zinc prices, and lower zinc treatment charges, partially offset by higher adjusted cash cost of sales and higher royalties tied to Red Dog's profitability. Red Dog and Trail operations both had a strong quarter of performance.
Speaker #6: Engineering and procurement activities are well underway and site mobilization has begun . Our outlook for copper segment is aligned with our October 7th news release .
Speaker #6: For 2025 . We expect annual copper production of 415 to 465,000 tonnes and copper net cash unit costs of US $2.05 to $2.30 per pound .
Speaker #6: Turning to our zinc segment on slide ten. In the third quarter, gross profit before depreciation and amortization for our zinc segment improved 27% to $454 million compared with the same period last year.
Speaker #6: This was primarily due to higher byproduct revenues, higher zinc prices, and lower zinc treatment charges, partially offset by higher adjusted cash cost of sales and higher royalties tied to Red Dog's profitability.
Speaker #6: Red Dog and trail operations both had a strong quarter of performance at Red Dog, Zinc. Sales of 273,000 tons were above our guidance range of 200,000 to 250,000 tons.
Crystal Prystai: At Red Dog, zinc sales of 273,000 tons were above our guidance range of 200,000 to 250,000 tons following a successful shipping season as we experienced favorable weather conditions. Production reflected lower grades as expected in our mine plan. In the third quarter, Red Dog inventories were drawn down by approximately $200 million. However, this was more than offset by elevated trade receivables of $570 million at quarter end due to the volume of sales in Q3 and higher zinc prices. We expect Red Dog's trade receivables will be substantially reduced in the fourth quarter, providing a source of cash through the reduction in working capital. As of October 21, approximately $350 million of Red Dog receivables were collected, driving an increase in our cash balance post-Q3. Our zinc net cash unit cost improved by $0.08 per pound, driven by lower smelter processing charges and higher byproduct credits.
Speaker #6: Following a successful shipping season . As we experienced favorable weather conditions . Production reflected lower grades as expected in our mind . Plan in the third quarter .
Speaker #6: Red dog inventories were drawn down by approximately $200 million US . However , this was more than offset by elevated trade receivables of 570 million US at quarter end due to the volume of sales in Q3 and higher .
Speaker #6: Zinc prices , we expect Red dogs trade receivables will be substantially reduced in the fourth quarter , providing a source of cash through the reduction in working capital .
Speaker #6: As of October 21st , approximately 350 million US of Red dog receivables were collected , driving an increase in our cash balance . Post Q3 , our zinc net cash unit cost improved by $0.08 US per pound , driven by lower smelter processing charges and higher byproduct credits .
Speaker #6: We reported another quarter of profitability at trail operations, reflecting our focus on improving trails profitability and cash generation by prioritizing the processing of residues over maximizing refined zinc production. Processing residues enables us to reduce concentrate purchases in the low treatment charge environment.
Crystal Prystai: We reported another quarter of profitability at Trail operations, reflecting our focus on improving Trail's profitability and cash generation through prioritizing processing of residues over maximizing refined zinc production. Processing residues enables us to reduce concentrate purchases in the low treatment charge environment. Looking forward, we expect Red Dog zinc sales to be between 125,000 to 140,000 tons in the fourth quarter, reflecting normal seasonality. Red Dog shipping season commenced on July 11th and was completed yesterday. Our outlook for our zinc segment is aligned with our October 7th news release. For 2025, as a result of Red Dog's strong year-to-date performance, we expect Red Dog zinc production to come in towards the top end of our guidance range of 430,000 to 470,000 tons. We continue to expect our total zinc production to be 525,000 to 575,000 tons, including Antomena.
Speaker #6: Looking forward , we expect Red dog zinc sales to be between 100 and 20 5 to 140,000 tons in the fourth quarter , reflecting normal seasonality .
Speaker #6: Red Dog shipping season commenced on July 11th and was completed yesterday. Our outlook for our zinc segment is aligned with our October 7th news release for 2025.
Speaker #6: As a result of Red Dog's strong year-to-date performance, we expect Red Dog zinc production to come in towards the top end of our guidance range of 430,000 to 470,000 tons.
Speaker #6: We continue to expect our total zinc production to be 525,000 to 575,000 tons, including Antamina. We also expect to be at the high end of our annual refined zinc production guidance range for trail operations.
Crystal Prystai: We also expect to be at the high end of our annual refined zinc production guidance range for Trail operations. We continue to expect zinc net cash unit costs of $0.45 to $0.55 US per pound. With Red Dog's strong performance, we continue to build the NANA royalty accrual, which is expected to be a source of working capital in Q4 and a use of working capital in Q1 2026 when paid. Turning to our balance sheet on slide 11, we have maintained a strong balance sheet and currently have liquidity of $9.5 billion, including $5.3 billion of cash. Our cash balance has increased by approximately $500 million in the month of October so far, particularly due to the collection of Red Dog receivables billed in Q3.
Speaker #6: We continue to expect zinc net cash unit costs of 45 to $0.55 US per pound , with Red Dog strong performance , we continue to build the nano royalty accrual , which is expected to be a source of working capital in Q4 and a use of working capital in Q1 2026 .
Speaker #6: When paid . Turning to our balance sheet on slide 11 , we have maintained a strong balance sheet and currently have liquidity of $9.5 billion , including $5.3 billion of cash .
Speaker #6: Our cash balance has increased by approximately $500 million in the month of October . So far , particularly due to the collection of Red dog receivables built in Q3 .
Speaker #6: Our use of cash through the end of September reflects significant cash returns to shareholders of over 1.2 billion , as well as the payment of taxes related to the sale of the steelmaking coal business and the advancement of our copper growth options , including the start of the execution of the Highland Valley Mine life Extension .
Crystal Prystai: Our use of cash through the end of September reflects significant cash returns to shareholders of over $1.2 billion, as well as the payment of taxes related to the sale of the steelmaking coal business and the advancement of our copper growth options, including the start of the execution of the Highland Valley Mine Life extension. While we completed $144 million of share buybacks in July, we have not executed buybacks since July 25th and will not be permitted to execute further buybacks through the closing of our proposed merger with Anglo American. Importantly, though, we will continue to return cash to shareholders through our annual base dividend of $0.50 per share, which is paid quarterly. Overall, our very strong balance sheet ensures we maintain our resilient position. Back to you, Jonathan.
Speaker #6: And while we completed $144 million of share buybacks in July , we have not executed buybacks since July 25th and will not be permitted to execute further buybacks through the closing of our proposed merger with Anglo American .
Speaker #6: Importantly, though, we will continue to return cash to shareholders through our annual base dividend of $0.50 per share, which is paid quarterly.
Speaker #6: Overall , our very strong balance sheet ensures we maintain our resilient position . Back to you , Jonathan .
Speaker #5: Thanks , Crystal . Looking forward on slide 13 , our priorities are disciplined execution across our operations and projects . And on progressing our transformative merger of equals with Anglo American .
Jonathan Price: Thanks, Crystal. Looking forward on slide 30, our priorities are disciplined execution across our operations and projects and on progressing our transformative merger of equals with Anglo American. We are advancing approvals for the transaction, and both Anglo American and Teck Resources Ltd strongly believe it is a significant value creation opportunity for our respective shareholders and stakeholders. At the same time, we are laser-focused on delivering against our operational guidance provided following completion of the comprehensive operational review. This includes continuing to progress the QB action plan and the necessary work on QB's Tailings Management Facility to complete the ramp-up of the operation. At QB, there are multiple paths to value and significant upside potential beyond our current guidance, and we aim to realize the full value of this tier one asset.
Speaker #5: We are advancing approvals for the transaction, and both Anglo American and Teck strongly believe it is a significant value-creation opportunity for our respective shareholders.
Speaker #5: And stakeholders . At the same time , we are laser focused on delivering against our operational guidance provided following completion of the comprehensive Operational Review .
Speaker #5: This includes continuing to progress the QB Action Plan and the necessary work on QBs, as well as the Tailings Management Facility, to complete the ramp-up of the operation at QB.
Speaker #5: There are multiple paths to value and significant upside potential beyond our current guidance, and we aim to realize the full value of this tier-one asset.
Speaker #5: And finally, our Highland Valley Mine Life Extension project to extend production from a core asset to 2046 has moved into the execution phase.
Jonathan Price: Finally, our Highland Valley Mine life extension project to extend production from a core asset to 2046 has moved into the execution phase, and we are progressing early works. Turning to the outlook for QB on slide 14, significant work has been undertaken to improve sand drainage times and complete the TMF development work. We have started the implementation of the new cyclone technology in one of the cyclone stations, and we are seeing positive early results. We have finished the construction of the new paddock designs, where we are also seeing improvements in sand drainage. Collectively, these results give us confidence that we are on the right track to finding solutions to improve sand drainage.
Speaker #5: And we are progressing early . Works . Turning to the outlook for QB on slide 14 . Significant work has been undertaken to improve sand drainage times and complete the TMF development work .
Speaker #5: We have started the implementation of the new Cyclone technology in one of the cyclone stations, and we are seeing positive early results.
Speaker #5: We have finished the construction of the new paddock designs , where we are also seeing improvements in sand drainage . Collectively , these results give us confidence that we are on the right track to finding solutions to improve sand drainage .
Speaker #5: We currently expect to be well positioned to catch up on the construction of the sand dam , and we aim to install the permanent infrastructure that will hydraulically deposit tailings and sand , replacing the current mechanical process .
Jonathan Price: We currently expect to be well positioned to catch up on the construction of the sand dam, and we aim to install the permanent infrastructure that will hydraulically deposit tailings and sand, replacing the current mechanical process by the end of 2026. This will allow us to push QB to run at steady state from the beginning of 2027 onwards. Turning to slide 15, importantly, QB remains a world-class tier one asset. The foundation of QB's potential is its large long-life deposit with around 10 billion tons of reserves and resources. The operation has the advantage of a very low strip ratio, which enables competitive all-in sustaining costs. QB has a tax stability agreement in place through 2037. QB has previously demonstrated that it is capable of operating at design recovery and throughput levels when there is no constraint on the mill.
Speaker #5: By the end of 2026, this will allow us to push QB to run at steady state from the beginning of 2027 onwards.
Speaker #5: Turning to slide 15 . Importantly , QB remains a world class tier one asset . The foundation of QBs potential is its large , long life deposit , with around 10 billion tonnes of reserves and resources .
Speaker #5: The operation has the advantage of a very low strip ratio , which enables competitive all in sustaining costs , and QB has a stability agreement in place through 2037 .
Speaker #5: QB has previously demonstrated that it is capable of operating at design , recovery and throughput levels when there is no constraint on the mill .
Speaker #5: The design , construction and operational capability of the plant was previously validated by independent specialists through completion testing and found to be robust beyond our current guidance for QB , there is significant upside potential optimization and Debottlenecking offers the potential for efficient near-term throughput uplift to at least 165,000 tonnes per day with a potential to go to 185,000 tonnes per day .
Jonathan Price: The design, construction, and operational capability of the plant was previously validated by independent specialists through completion testing and found to be robust. Beyond our current guidance for QB, there is significant upside potential. Optimization and debottlenecking offers the potential for efficient near-term throughput uplift to at least 165,000 tons per day, with a potential to go to 185,000 tons per day. We are working on improving recoveries towards our design recovery rates of 86% to 92%, with more consistent plant online time and geometallurgical testing to optimize reagents and drive improvements in recovery rates. While we expect 2028 to be impacted by transition ores, average grades are expected to improve on average for the five years thereafter.
Speaker #5: We are working on improving recoveries towards our design , recovery rates of 86 to 92% , with more consistent plant on line , on line time and geo metallurgical testing to optimize reagents and drive improvements in recovery rates .
Speaker #5: And while we expect 2028 to be impacted by transition ores , average grades are expected to improve on average for the five years thereafter .
Speaker #5: Overall , we have multiple potential paths to create value for our shareholders through QB , including the potential adjacencies with neighbouring Hiawassee and the value of QB continues to be validated by Anglo American through their due diligence for our merger of equals , we look forward to welcoming many of you to QB on November 3rd and fourth , and we are confident that you will see the significant progress that has already been made and that QB remains a world class , tier one asset .
Jonathan Price: Overall, we have multiple potential paths to create value for our shareholders through QB, including the potential adjacencies with neighboring Coya Sur, and the value of QB continues to be validated by Anglo American through their due diligence for our merger of equals. We look forward to welcoming many of you to QB on November 3rd and 4th, and we are confident that you will see the significant progress that has already been made and that QB remains a world-class tier one asset. Turning to slide 16, I'll wrap up where I started with the merger of equals with Anglo American. The combination is truly compelling and will lead to significant value creation opportunities for shareholders. Together, we will become a leading critical minerals producer with a top five global copper portfolio.
Speaker #5: Turning to slide 16, I'll wrap up where I started with the merger of equals with Anglo American. The combination is truly compelling and will lead to significant value creation opportunities for shareholders.
Speaker #5: Together , we will become a leading critical minerals producer with a top five global copper portfolio . We will deliver tangible corporate synergies of 800 million USD per year with a roadmap to unlock an additional 1.4 billion USD of annual underlying EBITDA uplift from the substantial adjacencies between QB and coyote , and we will have the resilience and enhanced financial capacity to balance shareholder returns with valuable investment opportunities from this incredible suite of assets .
Jonathan Price: We will deliver tangible corporate synergies of $800 million per year, with a roadmap to unlock an additional $1.4 billion of annual underlying EBITDA uplift from the substantial adjacencies between QB and Coya Sur. We will have the resilience and enhanced financial capacity to balance shareholder returns with valuable investment opportunities from this incredible suite of assets. The scale of the combined entity will increase the company's relevance in the global capital markets and could see a significant multiple re-rating that will further increase the value generation of the combined Anglo Tech. Slide 17 is a reminder of the expected timeline and required approvals for the transaction. We expect completion within 12 to 18 months from announcement. Both boards support and recommend this merger, and there will be concurrent separate votes by the shareholders of Teck Resources Ltd and Anglo American on December 9.
Speaker #5: The scale of the combined entity will increase the company's relevance in the global capital markets and could see a significant multiple rerating that will further increase the value generation of the combined Anglo tech .
Speaker #5: Slide 17 is a reminder of the expected timeline and required approvals for the transaction . We expect completion within 12 to 18 months from announcement .
Speaker #5: Both board support and recommend this merger , and there will be concurrent separate votes by the shareholders of tech and Anglo American on December 9th , we expect to publish our circular in mid-November , and it will be available on our website at techcom .
Jonathan Price: We expect to publish our circular in mid-November, and it will be available on our website at teck.com. The transaction will then be subject to regulatory approval and customary closing conditions, including approval under the Investment Canada Act, competition and antitrust approvals, and various other applicable regulatory approvals globally. We are excited at the potential of Anglo Tech to create a global leader in critical minerals with substantial value creation opportunity for shareholders. With that, Operator, please open the line for questions.
Speaker #5: The transaction will then be subject to regulatory approval and customary closing conditions, including approval under the Investment Canada Act, competition and antitrust approvals, and various other applicable regulatory approvals globally.
Speaker #5: We are excited about the potential of Anglo Tech to create a global leader in critical minerals, with substantial value creation and opportunity for shareholders.
Speaker #5: With that operator, please open the line for questions.
Speaker #3: Certainly to join the question queue , please press star then one on your touchtone telephone . You will hear a tone acknowledging your request .
Operator: Certainly. To join the question queue, please press star then one on your touch-tone telephone. You will hear a tone acknowledging your request. We ask that you please limit yourself to one question and one follow-up. If you're using a speakerphone, please ensure you lift the handset before pressing any keys. If you wish to remove yourself from the question queue, you may press star then two. The first question comes from Liam Fitzpatrick with Deutsche Bank. Please go ahead.
Speaker #3: We ask that you please limit yourself to one question and one follow up . If you are using a speakerphone , please ensure you lift the handset before pressing any keys .
Speaker #3: If you wish to remove yourself from the question queue , you may press star , then two . The first question comes from Liam Fitzpatrick with Deutsche Bank .
Speaker #3: Please go ahead .
Speaker #7: Good morning . Jonathan . Sorry . Good afternoon . Depends where you're based . Jonathan . The team I've got two questions . The first one is just on on the deal and whether any preliminary discussions have started with Glencore over the JV .
[Analyst]: Good morning, Jonathan. Sorry, good afternoon. Depends where you're based. Jonathan and team, I've got two questions. The first one is just on the deal and whether any preliminary discussions have started with Glencore over the JV of the two assets, and if not, any rough guidance on when that could begin. The second question is just on the guidance or the updated guidance for 2025. It looks like you're tracking towards the low end across unit cost guidance and CapEx guidance. I just wanted to check if that's the case or whether there's something we should be looking out for in Q4. Thank you.
Speaker #7: Of the two assets . And if not any rough guidance on when that could begin . And the second question , just on the guidance or the updated guidance for 2025 , it looks like you're tracking towards the low end across unit cost guidance and CapEx guidance .
Speaker #7: I just wanted to check if that's the case or whether there's something we should be looking out for in Q4. Thank you.
Speaker #5: Thanks , Liam . It is indeed morning here in Vancouver . Starting with your first question just on the on the QB synergies , of course , with this being structured as a friendly deal between ourselves and Anglo American , it did give us significant ability to understand the capability of both assets and comprehensively assess the potential opportunities that could be generated from from cooperation , both through the operations and , of course , through the extensive infrastructure .
Jonathan Price: Thanks, Liam. It is indeed morning here in Vancouver. Starting with your first question just on the QB-Coya Sur synergies. Of course, with this being structured as a friendly deal between ourselves and Anglo American, it did give us significant ability to understand the capability of both assets and comprehensively assess the potential opportunities that could be generated from cooperation both through the operations and, of course, through the extensive infrastructure. As we've said, much of that value comes from the processing of the higher grade, softer Coya Sur ore through the QB plant, and it's a very capital-efficient way to add low-cost production into the combined portfolio. These synergies, of course, were also reviewed and validated by external advisors in order for them to be published. There is a good deal of rigor that's been put around that.
Speaker #5: As we've said , you know , much of that value comes from the processing of the higher grade , softer ore through the QB plant .
Speaker #5: And it's a very capital efficient way to add low cost production into the combined portfolio . The synergies , of course , were also reviewed and validated by external advisors in order for them to be published .
Speaker #5: So there's a good deal of rigor that's been put around that . But , you know , we think this will be the benefit to significant benefit of the owners of QB and of coyote .
Jonathan Price: We think this will be the benefit, too, a significant benefit of the owners of QB and of Coya Sur, and we expect all parties to be motivated to work together to generate this value for their shareholders. Much of that work in terms of the commercial agreements and the structure of the agreements going forward remains ahead of us. As I said, we think this is a compelling opportunity, and we do expect all shareholders to be engaged here to capture that value for their shareholders. Crystal, maybe if you'd just like to comment on Liam's second question in terms of where we're trending on the guidance.
Speaker #5: And we expect all parties to be motivated to work together to generate this value for their shareholders . And of course , you know , much of that work in terms of the commercial agreements and the structure of the agreements going forward remains ahead of us .
Speaker #5: But as I said , we think this is a compelling opportunity , and we do expect all shareholders to be engaged here to capture that value for their shareholders .
Speaker #5: Crystal , maybe if you'd just like to comment on Liam's second question in terms of where we're trending on guidance .
Speaker #6: Yeah , sure . Hi , Liam . Good morning . Just in the context of CapEx , first , I think the guidance ranges remain reasonable as we look at where we're trending with our growth capital as we continue to progress , the HBC mine life Extension program through through the fourth quarter , I'd expect us to come in within that that range .
Crystal Prystai: Yeah, sure. Hi, Liam. Good morning. Just in the context of CapEx first, I think the guidance ranges remain reasonable as we look at where we're trending with our growth capital as we continue to progress the HVC Mine Life extension program through the fourth quarter. I'd expect us to come in within that range. Similarly, on the capitalized stripping side of things, and then on the sustaining capital side of the guidance, we are obviously continuing to progress the work on the TMF and expect that spending to continue into the fourth quarter. I would suggest you continue to use a midpoint on the CapEx aspect. Similarly, on unit cost for the copper business, I would expect us to come in towards the middle of the range. I wouldn't be using the low point.
Speaker #6: Similarly , on the capitalized stripping side of things and then on the sustaining capital side , the guidance we are obviously continuing to progress the work on the TMF and expect that spending to continue into the fourth quarter .
Speaker #6: So I would I would suggest you continue to use a midpoint on the on the CapEx aspect . Similarly , on unit cost for the copper business , I would I would expect us to come in towards the middle of the range .
Speaker #6: I wouldn't be using the low point . And for zinc , I think you're probably it's probably reasonable to be using somewhere between the low and mid mid case just based on where where we're tracking there .
Crystal Prystai: For zinc, I think it's probably reasonable to be using somewhere between the low and the mid case just based on where we're tracking there.
Speaker #7: Okay . Thank you .
[Analyst]: Okay.
Crystal Prystai: There isn't anything anomalous in those numbers.
Speaker #6: There isn't anything anomalous in that in those numbers .
Speaker #7: Okay . Jonathan , if I could briefly follow up , just point taken re the discussions are ahead of you . Should we be thinking that the , you know , the discussions will get going ?
Jonathan Price: Okay. Jonathan, if I could briefly follow up, just point taken, you know, the discussions are ahead of you. Should we be thinking that the discussions will get going post-deal completion, which is well into next year, or is the plan to begin those earlier? Look, there's nothing that requires the deal to be completed to enable discussions between QB and Coya Sur. I mean, I think over the past couple of months since the announcement of the merger of equals with Anglo American, we've clearly surfaced the value here that's available to all of the owners of both QB and Coya Sur, and I think that creates a good platform for engagement. Okay. Thank you. Thanks, Liam.
Speaker #7: Post-deal completion, which is well into next year, or is the plan to begin those earlier?
Speaker #5: Look , there's nothing that requires the deal to be completed to enable discussions between QB and OAC . I mean , I think over the past couple of months since the announcement of the merger of equals with with Anglo , we've we've clearly surfaced the the value here that's available to all of the owners of both QB and coyote .
Speaker #5: And I think that creates a good platform for engagement .
Speaker #7: Okay . Thank you .
Speaker #5: Thanks , Liam .
Speaker #3: The next question comes from Miles Ossoff with UBS . Please go ahead .
Operator: The next question comes from Myles Allsop with UBS Investment Bank. Please go ahead.
Speaker #8: Great . Thank you . Maybe just pulling up slightly on Liam's question . First on on QB Colarossi . I presume that all shareholders need to agree to the joint venture to be able to execute it .
[Analyst]: Great. Thank you. Maybe just bring up slightly on Liam's question first on QB-Coya Sur. I presume that all shareholders need to agree to the joint venture to be able to execute it. If Glencore or another shareholder gets difficult, you can't force them into a joint venture.
Speaker #8: If Glencore or another shareholder gets difficult , they . You can't force them into a into a joint venture .
Speaker #5: No , there's no way of forcing anybody into a into a joint venture . I think it will require the agreement of of all parties .
Jonathan Price: No, there's no way of forcing anybody into a joint venture. I think it will require the agreement of all parties. Of course, Coya Sur (Coyoasi) is an incorporated entity. So unlike Quebrada Blanca (QB), which is unincorporated where Teck Resources Ltd is clearly the operator and takes the lead, Coya Sur (Coyoasi) has to engage as a consolidated entity. As we've said before, we think there's a significant advantage from the cross-ownership that will be created through this merger of equals, with 60% of QB being owned by Anglo Tech and 44% of Coya Sur (Coyoasi) being owned by Anglo Tech. We consider that to be a significant de-risking and accelerating factor in capturing these synergies over time. Again, as I've just said, all shareholders of both assets should be highly motivated to work together to capture what we think is significant new value for our shareholders.
Speaker #5: Of course . You know , coyote isn't incorporated entity . So unlike QB , which is unincorporated , where tech , you know , is clearly the operator and takes the lead , coyote has to has to engage as a as a consolidated entity .
Speaker #5: As we've said before , we think there's a significant advantage from the cross-ownership that will be created through this merger of equals with 60% of QB being owned by Anglo Tech and 44% of coyote being owned by Anglo Tech .
Speaker #5: And we consider that to be a significant de-risking . And accelerating factor in capturing the synergies over time . But again , as I've just said , you know , all shareholders of both assets should be highly motivated to work together to capture what we think is significant new value for our shareholders .
Speaker #8: Yeah . And it wasn't that long ago they were quite excited about it . Could you just on QB where should we think normal .
[Analyst]: Yeah, it wasn't that long ago, so I was quite excited about it. Could you, just on QB, where should we think, I guess it's hypothetical now, but when production normalizes in 2027, 2028, where will unit costs normalize? What's your best guess? Is it in the $1.15 or $1.52, $2? What's the kind of new norm based on your current best guess?
Speaker #8: Like I guess it's hypothetical now , but in when production normalizes in 2728 , where will unit costs normalize ? What's your best guess ?
Speaker #8: Is it in the $1 , 150 or $152 . What's the kind of new norm based on , you know , your your your current best guess .
Speaker #5: So miles , look , there's no structural change to the asset based on the guidance we've previously given for QB . Of course , you know , there's the impact of inflation .
Jonathan Price: There is no structural change to the asset based on the guidance we've previously given for QB. Of course, there's the impact of inflation that is across the whole of the industry at the moment. We would expect that to develop over time. Structurally, as we've said, we see the asset capable of performing at the levels that we'd used previously to define unit cost guidance. I think that's probably the best indication I can give you at this stage.
Speaker #5: That is, you know, across the whole of the industry at the moment. So we would expect that to develop over time.
Speaker #5: But structurally , you know , as we've said we see the asset capable of performing at the levels that we'd use previously to define to define unit cost guidance .
Speaker #5: And I think that's probably the best indication I can give you at this stage .
Speaker #8: The original normalized unit costs. When you did the feasibility and stuff.
[Analyst]: What were the original normalized unit costs when you did the feasibility and stuff?
Speaker #5: So we were using 140 to 160 USD per pound previously . Obviously , that's predicated on on the plant running at full capacity on on hitting the design recovery rates on the full production of molybdenum .
Jonathan Price: We were using $140 to $160 per pound previously. Obviously, that's predicated on the plant running at full capacity, on hitting the design recovery rates, on the full production of molybdenum, and of course, operating the port through our shiploader, which is a situation we expect to return to in the first quarter of next year. As I mentioned before, they are unescalated numbers, as in they don't reflect the impact of inflation over the coming years.
Speaker #5: And of course , you know , operating the port through our shiploader , which is a situation we expect to return to in in the first quarter of next year .
Speaker #5: And of course , as I mentioned before , they are escalating numbers , as in , they don't reflect the impact of inflation over the coming years .
Speaker #8: Yeah . Cool . That's clear . Thank you .
[Analyst]: Yeah, cool. That's clear. Thank you.
Speaker #5: Thanks , Miles .
Jonathan Price: Thanks, Miles.
Speaker #3: The next question comes from Anita Soni with CIBC . Please go ahead .
Operator: The next question comes from Anita Soni with CIBC. Please go ahead.
Speaker #9: Good morning Jonathan and team , thanks for taking my question . The first one just I just wanted to see if you could give us some more color in terms of the improvement in sand drainage rates .
Crystal Prystai: Good morning, Jonathan and team. Thanks for taking my question. The first one, I just wanted to see if you could give us some more color in terms of the improvement in sand drainage rates. Could you quantify that? I think previously it was, I was thinking about seven days for the sand to drain. Has that improved from, could you quantify it in the number of days?
Speaker #9: Could you quantify that in I think previously it was was taking about seven days for the the sand to drain . Is that has that improved from could you quantify in the number of days .
Speaker #5: Hi Anita , thanks for the question . I'll hand this over to Dale . We won't want to fight that , but I can get Dale to give a description of the the work that's ongoing and some of the progress that we have seen , particularly in the underlying drivers of drainage .
Jonathan Price: Hi, Anita. Thanks for the question. I'll hand this over to Dale. We won't quantify that, but I can get Dale to give a description of the work that's ongoing and some of the progress that we have seen, particularly in the underlying drivers of sand drainage.
Speaker #10: Thank you very much , Jonathan , and thank you for the question . I think as Jonathan mentioned earlier , we've made a few changes to the operations since our start up in October .
[Company Representative]: Thank you very much, Jonathan, and thank you for the question. I think, as Jonathan mentioned earlier, we've made a few changes to the operations since our startup in October. One, we have started the replacement of cyclone technology. With that change, we are starting to see improvements in sand drainage in the paddocks. At the same time, we are changing some of our operational practices and design of the paddocks as well. Those together are indicating some good initial results, but it's still too early to tell in terms of what magnitude of improvement there is, other than we're on the right track. That's giving us some confidence on the path we're going forward. That's where we sit today.
Speaker #10: One , we have started the replacement of Cyclone technology , and with that change , we are starting to see improvements in sand drainage in the paddocks and that at the same time is was changing some of our operational practices and design of the paddocks as well .
Speaker #10: And those together indicating some good initial results . But it's still too early to tell in terms of what magnitude of improvement is , other than we're on the right track and that's giving us some confidence on the path for going forward .
Speaker #10: So that's where we sit today .
Speaker #5: Yeah . And I would say Anita , of course , an awesome opportunity to see this up close in two weeks time with far more detail around the work .
Jonathan Price: Yeah, I would say, Anita, of course, an awesome opportunity to see this up close in two weeks' time with far more detail around the work that's ongoing and how we see this developing.
Speaker #5: That's ongoing, and how we see this developing.
Speaker #9: Yeah , I will be attending the tour . And then my second question is with respect to the mill productivity rates , I think previously you talked about , well , I can't remember off the top of my head , but the utilization and the availability , could you put it in context of what you've seen over , you know , up to the up to October , October to date in terms of , you know , when you when you provided the guidance for Q3 results ?
Crystal Prystai: Yeah, I will be attending the tour. My second question is with respect to the mill productivity rates. I think previously you talked about, I can't remember off the top of my head, but the utilization and the availability. Could you put it in context of what you've seen over, you know, up to October? October to date in terms of, you know, when you provided the guidance for Q3 results. I think it was, I don't want to say incorrectly, but I think it was like 61% availability and 70% utilization. Can you just tell us what the old one was and what you've seen to date in October?
Speaker #9: Yeah , I think it was I don't want to say incorrectly , but I think it was like 61% availability or and 70% utilization utilization .
Speaker #9: But can you just tell us what the old one was and what you've seen to date in October?
Speaker #5: Yeah . So year to date when we communicated a couple of weeks ago , we'd seen 87% availability in the mill , but only 70% utilization because of the constraint put on the mill by the by the downtime associated with the the TMF .
Jonathan Price: Year to date, when we communicated a couple of weeks ago, we'd seen 87% availability in the mill, but only 70% utilization because of the constraint put on the mill by the downtime associated with the TMF. Since starting up in early October, we've seen very good availabilities. I won't quantify that right now, but very strong.
Speaker #5: Since starting up in early October, we've seen very good availability. I won't quantify that right now, but it's very strong.
Speaker #9: Okay . And then am I correct in thinking when you're looking at the 87 and the 70 , you should be multiplying those to get to your total capacity .
Crystal Prystai: Okay. Am I incorrect in thinking when you're looking at the 87 and the 70, you should be multiplying those to get to your total capacity? Is that correct?
Speaker #9: Is that correct ?
Speaker #5: No , it doesn't quite work like that . I mean , the , the utilization is , you know , a function ultimately of that , of that availability .
Jonathan Price: No, it doesn't quite work like that. I mean, the utilization is a function ultimately of that availability. We were only able to utilize the mill 70% of the time. Ultimately, you don't need to multiply the two things.
Speaker #5: But , you know , we were only able to utilize the mill 70% of the time . Ultimately , you don't need to multiply the two things , okay .
Speaker #9: All right. Thank you. Thanks very much for clarifying that.
Crystal Prystai: Okay. All right. Thank you. Thanks very much for clarifying that.
Speaker #5: Thanks very much .
Jonathan Price: Thanks very much.
Speaker #3: The next question comes from Lawson Winder with Bank of America Securities . Please go ahead .
Operator: The next question comes from Lawson Winder with Bank of America Securities. Please go ahead.
Speaker #11: Thank you very much . Operator . Good morning . Jonathan , and Crystal . Thank you for today's update . If I could come back to the merger , could I ask to what extent ?
[Analyst]: Thank you very much, Operator. Good morning, Jonathan and Crystal. Thank you for today's update. If I could come back to the merger, could I ask to what extent Teck and/or Anglo American have engaged with Investment Canada on the transaction? Is there any indication that moving the combined head office is sufficient? A follow-up to that, if you could address what you would perceive as sort of the bottleneck from an antitrust and other approval point of view once the vote is done. Thank you very much.
Speaker #11: Teck and or Anglo American have engaged with Investment Canada on the transaction ? And is there any indication that moving . The combined head office is sufficient ?
Speaker #11: And then just a follow up to that , if you could address what you would perceive as sort of the bottleneck from from an antitrust and other approval point of view , once the vote is done ?
Speaker #11: Thank you very much .
Speaker #5: Yeah . Thanks , Lawson . Thanks for those questions . Look , you know , we are engaging on an ongoing and collaborative basis with with the Canadian government here .
Jonathan Price: Yeah, thanks, Lawson. Thanks for those questions. Look, we are engaging on an ongoing and collaborative basis with the Canadian government here. Those discussions have been frequent and productive. As we've said, we've put forward what we believe to be a very strong and comprehensive package of commitments to Canada in particular. As you note, a key element of that is Anglo Tech having its headquarters in Canada in perpetuity. That's in addition to the significant capital spending commitments we've made of $4.5 billion over five years and other assurances and meaningful undertakings associated with the activities of the new company. Those conversations are ongoing and they're productive, and we're very pleased in the way that they're unfolding at the moment. We don't see a particular bottleneck here, Lawson, necessarily. We'll work through the shareholder vote, of course, in early December.
Speaker #5: Those those discussions have been frequent and productive . You know , as we've said , we've put forward what we believe to be a very strong and comprehensive package of commitments to to Canada in particular , you know , as you note , a key element of that is Anglo Teck having its headquarters in Canada in perpetuity .
Speaker #5: And that's in addition to the significant capital spending commitments we've made of $4.5 billion over five years, as well as other assurances and meaningful undertakings associated with the activities of the new company.
Speaker #5: So those those conversations are ongoing . And and they're productive . And we're very pleased in the way that they're unfolding at the moment .
Speaker #5: You know , we don't see a particular bottleneck here . Lawson , necessarily . You know , we'll we'll work through the the shareholder vote , of course , in early December , we'll continue in parallel to work with the the Canadian government under the Investment Canada Act .
Jonathan Price: We'll continue in parallel to work with the Canadian government under the Investment Canada Act. This week, we will complete all of our regulatory filings related to antitrust and competition regulators globally. Those processes will unfold in due course. A lot of activity going on, a lot of engagements underway, and we hope to continue that in a very productive and, to the extent possible, expedited fashion.
Speaker #5: And of course , then this week we will complete all of our regulatory filings related to antitrust and competition regulators globally . And of course , then those processes will unfold in in due course .
Speaker #5: So a lot of activity going on , a lot of engagement underway . And you know , we hope to continue that in a very productive and to the extent possible , expedited fashion .
Speaker #11: Okay . Thanks very much . Jonathan .
[Analyst]: Okay, thanks very much, Jonathan.
Speaker #5: Thanks , Lawson .
Jonathan Price: Thanks, Lawson.
Speaker #3: The next question comes from Chris Lafemina with Jefferies . Please go ahead .
Operator: The next question comes from Christopher LaFemina with Jefferies LLC. Please go ahead.
Speaker #12: Thanks . Operator . Hi , Jonathan . Thanks for taking my question . Just wanted to follow up on another question on the Qbi Callawassie synergies .
[Company Representative]: Thanks, Operator. Hi, Jonathan. Thanks for taking my question. I just wanted to follow up another question on the QB-Coya Sur synergies. The shareholder vote is going to be on December 9, but at that time, we won't know whether the JV is certainly going to happen, and we won't know what the economic split would be between Teck, Anglo American, and your partners in those assets. Obviously, that JV is a big component of this deal. My first question would be whether you think it's a compelling merger, even if you cannot get that JV done. I understand that it's compelling from all parties involved, but under the assumption that that JV doesn't happen, it's still a very good deal for Teck. That's my first question. I have a follow-up as well.
Speaker #12: So the shareholder vote is going to be on December 9th . But at that time we won't know whether the JV is certainly going to happen .
Speaker #12: And we won't know what the economic split would be between tech Anglo and your partners in those assets . And obviously the that JV is a big component of this deal .
Speaker #12: And my first question would be whether you think it's a compelling merger, even if you cannot get that JV done. I understand that it's compelling from all parties involved.
Speaker #12: But under the assumption that that JV doesn't happen , it's still a very good deal for tech . That's my first question . I have a follow up as well .
Speaker #10: Yeah .
Jonathan Price: Yeah, thanks for that, Chris. Absolutely. I mean, you know, we think the creation of this new company, the fifth largest copper producer in the world, six world-class assets, 1.2 million tons of annual copper production, a company of both scale and quality. We expect this to trade very, very well in equity markets. In addition to that, of course, we've got the $800 million of synergies that we will work through coming through the corporate combination, coming from marketing, coming from procurement. In addition to that, of course, Teck shareholders will gain access to synergies being created through the agreement that Anglo American has put in place with Codelco for Los Bronces Andina, etc. There are lots of sources of value creation here. We do think that the QB-Coya Sur, of course, is a very meaningful component of the value creation here.
Speaker #5: Thanks for that Chris . So look absolutely I mean , you know , we think the creation of this this new company , the fifth largest copper producer in the world , six world class assets , 1.2 million tons of annual copper production company of both scale and quality .
Speaker #5: We expect this to trade very , very well in equity markets . In addition to that , of course , we've got the $800 million of synergies that we will work through coming through the corporate combination coming from marketing , coming from procurement .
Speaker #5: In addition to that , of course , tech shareholders will gain access to synergies being created through the agreement that Anglo American has put in place with Codelco for Los Francis and Dina , it's cetera .
Speaker #5: There are lots of sources of value creation here. We do think that the QBI coil, of course, is a very meaningful component of the value creation here.
Speaker #5: And as I mentioned before , I would expect all of the owners of both Qbi and OAC to be highly motivated on behalf of their shareholders to work collaboratively to capture that value .
Jonathan Price: As I mentioned before, I would expect all of the owners of both QB and Coya Sur to be highly motivated on behalf of their shareholders to work collaboratively to capture that value that's ahead of us.
Speaker #5: That's ahead of us .
Speaker #12: Right ? That makes sense . And then in terms of a framework for how you value the split of the economics and that JV , have you had discussions with partners regarding just generally how to think about that ?
[Company Representative]: Right. That makes sense. In terms of a framework for how you value the split of the economics in that JV, have you had discussions with partners regarding just generally how to think about that? Each partner is going to want to maximize their cap for the economics, and I would assume that's going to be a sticking point. How do you think about the framework to value it for each partner involved? Thank you.
Speaker #12: Because obviously each each partner is going to want to maximize their capture of the economics . And I would assume that's going to be a sticking point .
Speaker #12: So, how do you think about the framework to value it to each partner involved? Thank you.
Speaker #5: So that is to be worked out. You know, Chris, that is part of the commercial agreements we have ahead of us.
Jonathan Price: Look, that is to be worked out, you know, Chris, and that is part of the commercial agreements we have ahead of us. Of course, again, with Anglo Tech at 60% of QB and Anglo Tech at 44% of Coya Sur, you can see a win-win there on both sides of this transaction. We will get into the nuts and bolts of this in the period ahead of us. Again, I would expect all owners of both assets to be highly motivated to capture this value on behalf of their shareholders.
Speaker #5: Of course , you know , again with with Anglo Tech , at 60% of Qbi and Anglo Tech at 44% of coyote , you can see a win win there on on both sides of this transaction .
Speaker #5: You know , we will get into the nuts and bolts of this in the period ahead of us . But again , I would expect all owners of both assets to be highly motivated to capture this value on behalf of their shareholders .
Speaker #12: Thanks, Jonathan. Good luck.
[Company Representative]: Got it. Thanks, Jonathan. Good luck.
Speaker #5: Thank you very much, Chris.
Jonathan Price: Thank you very much, Chris.
Speaker #3: There being no further questions, I will now pass the call back to Jonathan for closing remarks. Please go ahead.
Operator: There being no further questions, I will now pass the call back to Jonathan for closing remarks. Please go ahead.
Speaker #5: Thank you . Operator and thanks again to everyone for joining us today . As mentioned , we look forward to seeing many of you at our Qbi site visit and to many others joining us via webcast on November the 3rd , wish you all a good day .
Jonathan Price: Thank you, Operator, and thanks again to everyone for joining us today. As mentioned, we look forward to seeing many of you at our QB site visit and to many others joining us via webcast on November 3. Wish you all a good day. Thank you.
Speaker #5: Thank you .
Operator: This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.