Teck Resources Ltd

Ladies and gentlemen, thank you for standing by. Welcome to Tech's Second Quarter 2026 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, please press star then 1 on your touch-tone phone. Should anyone need assistance during the conference call, they may reach an operator by pressing star then 0 on their telephone. This conference call is being recorded on Thursday, July 23, 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 second quarter 2026 conference call. Today's call contains four looking statements. Actual results may vary due to various risks and uncertainties. TEC does not assume the obligation to update any four looking statements. Please refer to slide 2 for the assumptions underlying our forward-looking statement. We will reference non-GAAP measures throughout this presentation. Explanations and reconciliations are in our ND&A and the latest press release on our website. On today's call, Jonathan Price, our CEO, will provide highlights for the second quarter of 2026. Crystal Prystai, our CFO, will follow with further details on our operational performance and financials in the quarter. Jonathan will then wrap up with closing remarks and an opportunity for Q&A. And with that, over to you, Jonathan.

Thank you, Emma, and good morning, everyone. We've delivered another quarter of strong operational and financial performance. We generated significantly higher earnings and robust cash flow in the second quarter of Supported by favourable commodity prices, including another record quarterly average copper price. Compared with the same period last year, we generated cash flow from operations of $1.7 billion and tripled adjusted EBITDA to $2.2 billion. We also successfully managed our net cash unit costs despite energy cost headwinds, supported by stronger operational performance and favourable by-product pricing. As a result, we increased our net cash position by $756 million during the quarter and $1 billion in the first half of the year. Alongside this strong financial performance, we continue to make good progress against our near-term priorities to create share on the value. We are advancing our merger of equals with Anglo-American, with our focus on securing the remaining regulatory approval. Meanwhile, integration planning is intensified to ensure we are ready to close shortly after approval is received. Operationally, we continue to build momentum across the business. Copper production increased by 25% compared with the second quarter of last year, with higher production across all our copper operations, coupled with continued strong sales volumes. We are delivering greater operational stability quarter by quarter, through our continued focus on safe, reliable and consistent performance, and there are no changes to our previously disclosed annual guidance. Importantly, this strong performance includes QB, where we achieved our third consecutive quarter of stable operations, an important step towards realising the full value of this world-class asset. During the quarter, we also continued to advance our team's management facility work at QV, including the completion of Rock Bench 5. And I'll return later in the presentation to some of the TMF options currently under evaluation with the potential to further enhance operational continuity. At Highland Bay, we continued to advance the mine life extension project with detailed engineering now approximately 95% complete. Overall, this was another strong quarter that demonstrates disciplined execution across the business, reinforces the quality of our portfolio and positions us well as we move towards completing our merger with Anglo American. So turning to the merger update on slide five, regulatory approval process in China continues to progress as expected and we remain focused on engagement with the regulator. In parallel, integration planning continues to advance. Our teams are working hard to ensure we are fully prepared to close the transaction prompt following receipt of necessary approvals, while also continuing to develop our plans to capture the significant value creation opportunities available through the combination. Consistent with our original expectations, we continue to anticipate completing the transaction within 12 to 18 months of the September 2025 announcement. Turning to our focus on safe and stable operational performance, beginning with safety on slide 6. During the second quarter, our high potential incident frequency rate at 10 controlled operations remained low at 0.08, broadly in line with our performance last year. Many safety incidents were thoroughly investigated, with corrective actions implemented to strengthen critical risk controls and reduce the likelihood of recurrence. We're also very pleased that the Highland Valley Copper Mine Life Extension Project has now achieved 1 million hours worked without a high potential incident or a lost time injury, reflecting the strong safety culture across the project team. So turning now to our operational performance on slide 7. Copper production increased by almost 25% in the second quarter compared with the same period last year, with higher production across each of our operations as shown in the chart on the left. This high production together with favourable commodity and by-product prices drove a significant reduction in our net cash unit costs, more than offsetting the impact of higher energy prices. As a result, our profitability continued to strengthen, with adjusted EBITDA margins reaching a record 61%, up from 36% in the second quarter of 2025. These results demonstrate how our continued focus on operational performance is translating into higher volumes, lower costs, and improved financial returns. Turning to QB on slide eight, as we continue to advance tailings management facility development, we have not experienced any TMF-related downtime in the past three quarters, supporting improved asset utilization and operational consistency. As a result, QB produced 55,800 tons of copper during the quarter, compared with 52,700 tons in the same period last year, with stable throughput and recoveries and all key operating metrics tracking in line with our full year guidance. During the plant maintenance shutdown in May, we completed several initiatives designed to optimize plant performance and increase throughput. We began to see the benefits of that work towards the end of the quarter, providing a solid foundation for continued operational improvement throughout the remainder of the year. Overall, QB continues to demonstrate improving operational consistency, giving us increasing confidence in the long-term performance and value of this world-class asset. And looking at the QB TMF on slide 9. Progress on the TMF remains an important enabler of predictable operating performance at QB, and we made significant progress during the second quarter. As you can see from these photographs, we completed Rockbench 5 during the quarter, an important milestone that supports free board management through the remainder of the year. The completion of the cyclone station upgrades and increased paddock availability improved our sand deposition rates and supported continued progress towards planned TMF performance. As mentioned, there was no TMF-related downtime at the concentrator in the past three quarters, demonstrating the progress we've made in reducing operational constraints. Workers continued to optimise the supporting ancillary infrastructure required to accommodate higher sand deposition rates. Construction of the secondary cyclone station could further improve our sand deposition performance. The latest progress on the QPTMF is reflected in our updated scorecard on slide 10. As I've already mentioned, we completed Rock Bench 5 as planned. Looking ahead, we expect to complete installation of the secondary sand cyclone system by the end of the year, further strengthening the robustness of the tailings handling system and increasing its ability to manage variability in plant feed. Consistent with our QV action plan, we are progressing our evaluation of the timing and sequencing of the installation of the permanent TMF pipeline infrastructure, which will mechanically raise the tailings pipeline, supporting more efficient and optimized TMF performance. As part of this assessment, we are evaluating opportunities to accelerate certain TMF activities, including the potential advancement of material placement currently planned for 2027 by constructing an additional rock bench this year. Proceeding with Rockbench 6 would allow the permanent pipeline infrastructure to be installed later this year, which is earlier than planned. This would provide greater operational flexibility during completion of the sand dam, reducing execution risk and supporting continued improvements in operating performance from a stable operating base. If we take this decision to proceed, construction of Rockbench 6 is expected to commence in late August or early September and be completed by around year end. with an estimated capital investment of approximately US$100 million this year. Overall, we continue to make good progress on the TMF and are focused on opportunities to safely accelerate development and further strengthen the long-term reliability of QB operations. Returning now to the Money Life Extension at Highland Valley on slide 11. Construction continues to advance well, with the project achieving an important safety milestone of more than 1 billion hours worked without any high potential incidents or lost time injuries. During the second quarter, we completed installation of the pilings for the mill upgrades and successfully executed the first integrated shutdown between the operation and the MyLife Extension project. Detail engineering is now approximately 95% complete, procurement is nearing completion and construction activity continues to ramp up across the site, including earthworks, pipelines, groundfield works and supporting infrastructure. We invested $254 million of project capital during the quarter and our capital expenditure guidance remains unchanged at $900 million to $1.2 billion for 2026 and $2.1 to $2.4 billion over the life of the project. Capitalized stripping activity is also expected to increase during the second half of the year as we prepare future mining areas. While higher diesel prices will have some impact, our guidance for capitalized stripping remains unchanged at $450 to $550 million for the copper business. The mine life extension will extend Highland Valley's mine life to 2046, while supporting average annual copper production of approximately 132,000 tonnes. reinforcing its position as a cornerstone asset in the Copper portfolio. Overall, we're continuing to execute well across our portfolio with strong operational performance, supporting disciplined product delivery, and positioning the business well for the future. I'll now hand over to Crystal to take you through the financial results in more detail.