Teck Resources Ltd

Ladies and gentlemen, thank you for standing by. Welcome to TAC's fourth 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 1 on your touch-tone phone. Should anyone need assistance during the conference call, you may signal an operator by pressing star then 0 on your telephone. This conference call is being recorded on Thursday, February 19th, 2026. I would now like to turn the conference over to Emma Chapman, Vice President, Investor Relations. Please go ahead.

Thank you, Operator. Good morning, everyone, and thank you for joining us for TEC's fourth quarter 2025 conference call. Today's call contains forward-looking statements. Actual results may vary due to various risks and uncertainties. Tech does not assume the obligation to update any forward-looking statement. These refer to slide two for the assumptions underlying our forward-looking statement. 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 highlights for the full year 2025 and fourth quarter. Crystal Prestai, our CFO, will follow with further details on the operational performance and financials in the quarter and full year. Jonathan will then wrap up with closing remarks and an opportunity for Q&A. Over to you, Jonathan.

Thank you Emma and good morning everyone. We'll start with the highlights from the fourth quarter and full year on slide four. 2025 was a year of further significant evolution for tech as we continue to focus on our strategy of becoming a global leader in critical minerals. On September 9th we announced our transformational merger of equals with Anglo American, a significant step in strengthening our long-term position in copper. This transaction will create a top five global copper producer with greater scale, resilience and ability to progress a broader suite of high-quality copper growth opportunities. Turning to our operational performance, we closed out 2025 with strong momentum in the fourth quarter, with operational performance in line with our revised guidance And at QB, we continue to make meaningful progress on the ramp up of the operation and against our QB action plan, including key TMF development progress to achieve steady state operations by the end of 2026. QB's quarterly copper production was the strongest of the year at 55,000 tonnes, reflecting our progress on the TMF and our focus on initiatives to underpin operational stability. A key contributor to our strong year-end operational performance was the comprehensive operational review completed in October. The review strengthened our operational plans through a robust assessment and rebasing where required, and with that work complete, we intensified our focus on disciplined and predictable execution, which allowed us to deliver against our revised operational guidance for 2025. With that increased clarity and confidence in our operating plans, in January we reaffirmed our annual production guidance for 2026 to 2028 for all tech-operated sites. Turning to our financial results, our Q4 performance was very strong, with an 81% increase in adjusted EBITDA to $1.5 billion, primarily driven by significantly higher copper prices and increased by-product revenue. Importantly, this translated to an adjusted EBITDA margin of approximately 50% in the quarter, one of the strongest quarterly margins we've delivered in recent years and a clear reflection of the quality of our portfolio in a stronger price environment. Our strong Q4 performance was supported by solid full-year financial results with a 48% improvement in adjusted EBITDA to $4.3 billion. We maintained a robust balance sheet and returned a net cash position, supported by robust cash flow from operations. Throughout the year, we continue to return significant cash to shareholders, with a total of $1.3 billion returned through share buybacks and dividends. We also sanctioned the Highland Valley Mine Life Extension, or HVC MLE, in July, and the project is now well underway. HVC MLA will extend the life of mine to 2046 and is expected to produce 132,000 tons of copper per annum on average over the life of mine. Overall, 2025 was another transformative year for tech as we continue to advance our strategy of becoming a global leader in critical minerals with the announced merger with Anglo American and a strong foundation of operational execution as we move into 2026. So turning now to safety and sustainability on slide five. Tech had strong safety performance in 2025 with a meaningful improvement in the high potential incident frequency rate for tech controlled operations. It improved to 0.06 for the full year, which is 50% lower than the previous year and equivalent to our best ever annual result. We are deeply saddened by the two fatal events at Antamina in 2025. and we offer our condolences to the family, friends and colleagues of the deceased. We have supported and will continue to support the Antamina team during both investigations to ensure that lessons are learned and shared across the industry. Looking at our sustainability highlights, we reached 100% renewable power in Chile on October 1st, when our long-term Clean Power Agreement for QB's electricity supply came into effect. We are also pleased that TEC was recently named one of Canada's top 100 employers for the ninth consecutive year, recognizing our exceptional human resource programs and innovative workplace policies. We will provide further details on our full year sustainability performance with the release of our 2025 sustainability report in March, and we will continue to progress our sustainability initiatives through 2026. Turning now to QB on slide six. The fourth quarter was the strongest of the year at QB, with significant progress made across key operational performance indicators and TMF development. Throughputs in the fourth quarter improved progressively, and December's monthly throughput rate was the highest of the year, in line with the strong rates achieved in the fourth quarter of 2024. Recoveries remained consistent over the quarter and were within plan, and a function of the all-type processed. And copper grades also aligned with our plan, averaging 0.59% in the quarter. This operational performance represents meaningful progress towards steady-state operations at QB. And our operational performance in the fourth quarter provides confidence in our delivery against our 2026 guidance. Looking at the TMF development work at QB on slide 7. We made significant progress on advancing the TMF in the fourth quarter, with the current development status shown in the diagram on the left of the slide. We completed installation of alternative cyclone technology in November, which has materially improved sand quality, and we have implemented paddock design improvements. As a result, we have seen a strong improvement in both sand drainage times and paddock development rates. The diagram on the right shows where we expect to be with the TMF work at the end of this year. We expect to complete the mechanical construction of rock benches 4 and 5, and the improvement that we have seen in sand drainage rates is expected to enable us to catch up on sand dam construction and achieve steady state development by the end of 2026. As previously indicated, during the year we expect periodic downtime at the plants as we complete the TMF work. all of which is fully reflected in our 2026 production guidance. Overall, we expect QB production will no longer be constrained by TMF development by the end of this year. Slide 8 provides a high-level overview of the current status and expected completion of our near-term objectives for QB TMF development. Several objectives are now complete and, as just mentioned, other key items including construction of the mechanical rock benches and advancing the sand down towards steady state operations are on track to be completed by year end. In addition, the secondary sand cyclone system designed to further improve sand quality is scheduled for installation in the second half of this year and the timing of the permanent infrastructure remains under evaluation and will be confirmed in due course. Together, these initiatives position QB to operate at steady state from the beginning of 2027 onwards, enabling us to unlock the full value of this exceptional resource. So turning to our operating guidance, which is summarized on slide 9. As I mentioned earlier, on January 20th, we reaffirmed our previously disclosed annual production guidance for 2026 to 2028 for all tech operated sites, as well as our annual 2026 net cash unit cost guidance for both our copper and zinc segments. We also disclosed a decrease in our 2026 annual zinc in concentrate production guidance for Antamina by 20,000 tons to reflect an updated mine plan that was finalized in Q4 2025. We remain focused on operational execution and delivering against our operational plans. With that, I'll hand over to Crystal.