Teck Resources Ltd

Ladies and gentlemen, thank you for standing by. Welcome to Tech's 3rd Quarter 2026 Earnings Release Conference Call. At this time, all participants are in listening-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 signal an operator by pressing star then 0 on their telephone. This conference call is being recorded on Thursday, October 29, 2026. I would now like to turn the conference over to Edwin Chidao, Vice President, Investor Relations, and Treasurer. Please go ahead.

Thank you, operator. Good morning, everyone, and thank you for joining us for Tech's third quarter 2026 conference call. Today's call contains four looking statements. Actual results may vary due to various risks and uncertainty. and many more. This does not assume the obligation to update any forward-looking statements. Please refer to slide 2 for the assumptions underlying our forward-looking statements. We will reference non-GAAP measures throughout this presentation. Explanations and reconciliations are in our MG&A and the latest press release on our website. On today's call, Jonathan Price, our CEO, will provide highlights for the third quarter of 2026. Crystal Prystai, our CFO, will then wrap up with closing remarks and an opportunity for Q&A. Over to you, Jonathan.

Thanks, Edwin, and good morning, everyone. We've delivered another quarter of significant earnings growth and robust cash generation, underlying the strength of our business. In the third quarter of 2026, we increased production, demonstrated resilience in execution, and benefited from another record quarterly average copper price. We significantly increased our cash flow from operations to $1.6 billion and doubled our adjusted EBITDA for $2.3 billion compared to the same period last year. We continue to strengthen our balance sheet quarter by quarter driven by significant cash flows from operations. We've increased our net cash position by $655 million in the quarter and by $1.7 billion over the first nine months of the year. Our liquidity is almost $11 billion as of September 30th, including $6.7 billion of cash. Our focus remains on our key near-term priorities to drive shareholder value, and we are making continued progress against them. Our merger of equals with Anglo American, the former copper-focused global metals and minerals champion, continues to progress as planned, and integration planning is advancing. We continue to engage constructively with China's anti-trust regulators to obtain the final outstanding regulatory approval. Expected completion within 12 to 18 months of our September 2025 announcement remains unchanged. In parallel, we remain focused on disciplined execution, particularly on safe and reliable operational performance and delivery against our commitments. In the third quarter of 2026, our financial performance was strong, despite a challenging operating environment at several of our sites. Our teams dealt with a wide range of severe weather events across our COPPA business. Extreme weather conditions had calmed down a coil, with torrential rain and flooding and more than three times the area's historical annual average rainfall in a short period of time. Heavy rains, snow, and sustained high winds and QV operations in one of the driest regions in the world and Severe Drought Conditions and an extended wildfire season at Island Valley. Throughout these events, the safety of our people remained the priority. While simultaneously dealing with multiple severe weather events and the resulting impacts of mining conditions, we safely recovered our operations in the quarter. Across our copper business, we increased production, lowered unit costs and delivered strong margin growth, and our zinc business continued to contribute meaningful cash flow. We've lowered our 2026 annual cash unit cost guidance in both our copper and zinc segments, primarily as a result of strong by-product pricing year to date. We lowered the midpoint of our net cash unit cost guidance by 13 US cents per pound for copper and by 35 US cents per pound for zinc, which also reflects our strong operating discipline. Our 2026 annual production and capital expenditure guidance is unchanged. We continue to advance the work necessary to realise the full value of QB, which will ultimately come from stable and efficient operations and continuous improvement. QB's strong operating performance in the first half of the year continued in July, but heavy snowfall and high winds in August caused intermittent power outages, resulting in shutdowns of the concentrator, dewatering systems and other critical equipment. Thank you for joining us today. QB's resilience to severe weather events will continue to be enhanced through the remainder of 2026 and into 2027 as the mine matures and more mining phases are opened. QB's tailings management facility, or TNF, development work continues to progress and we commence construction of Rossbank 6 in the quarter, which I will cover in more detail in a later slide. The third quarter of 2026 was our fourth consecutive quarter with no TMF-related downtime in the concentrator, supporting improved attic utilization and operational consistency. We are advancing construction of the mine life extension at Highland Valley Copper, which will sustain operations at this important attic through to 2046, and support average annual copper production of approximately 132,000 tonnes. Construction is now more than 25% complete. At the same time, we're continuing to progress the Copper Grove project in our portfolio towards pension readiness to generate shareholder value and strengthen optionality for future development opportunities. And we are pleased that San Nicolas received its main environmental impact assessment permit in July. Overall, our third quarter 2026 results showcase the underlying strength of our business and demonstrate our strong foundation as we advance towards completion of our merger with Anglo American. I'll now provide an update on each of our key near-term priorities, starting with the merger with Anglo American on slide 5. The merger is progressing as planned towards completion. The parties are working collaboratively towards securing the remaining required regulatory approval, and we are continuing to engage constructively with SAMA in China and are responding to their information requests. Integration planning continues to advance, with teams focused on day one readiness, maintaining safe and reliable operations, and ensuring business continuity while preparing the combined company to realise the strategic and operational benefits of the transaction. Significant progress has been made, including establishing the future executive leadership team for Anglo Tech, defining the fundamentals of its operating model, and advancing integration plans. On July 30th, we announced Anglo Tech's future executive leadership team, which brings together a highly experienced and complementary set of leaders from both companies. The leadership who will be responsible for Anglo Tech's mining and production businesses across Brazil, Chile, Peru, North America and South Africa was also concerned. These appointments will take effect immediately upon completion of the merger. During the quarter, S&P and the TSX announced that certain foreign issuers with a strong Canadian presence will be eligible for full inclusion in Canadian indices. We expect AngloTech will be an important part of the Canadian investment landscape and, if confirmed, the ability to achieve full inclusion in Canadian indices is a significant milestone, enabled by having headquarters in Vancouver, an expected listing on the Toronto Stock Exchange, and significant operations and ongoing investment in Canada. Overall the transaction continues to progress as planned and steady execution against the merger roadmap supports the expected close within 12 to 18 months of our September 2025 announcement which remains unchanged. We expect completion of the merger to be approximately 11 trading days from fulfillment or waiver of the remaining applicable precedent conditions. So turning to our safe and reliable operational performance and starting with safety and sustainability on slide six. In the third quarter of 2026, our quarterly high potential incident frequency rate improved to 0.06, equivalent to our 2025 annual rate, which was tied for tech's best ever annual performance. The Highland Valley Mine Life Extension Project has a strong safety record, having achieved over 1.5 million hours worked without a high potential incident or lost time injury. I'm personally very proud and impressed that during the severe weather events our team responded quickly and safely with no high-risk incidents reported. Our teams not only kept people safe, maintained essential services and restored our operations as conditions allowed, they also assisted regional recovery efforts by providing equipment and operators to help clear roads and restore access in affected communities. I would like to take a moment to acknowledge that a fatality occurred on October 27th at Antamina in which Tech holds a non-controlling interest. We are deeply saddened by this event and offer our condolences to the family, friends and colleagues of the deceased. Tech is supporting the organisation and learnings from the investigation will be shared across our company and across the sector so we can learn together to improve the safety of our people. In Sustainability, we announced that Tech had been named to the Forbes World's Top Companies for Women 2026 list for the second time on October 7th. This list recognizes organizations that are highly rated by female employees and demonstrates a commitment to advancing women in the workplace. Slide 7 summarizes our operational results for the third quarter of 2026. Overall, we sustained our operating performance while dealing with severe weather events across our proper business. Compared with the same period last year, we grew our copper production by 11% to 116,000 tons, with increases at all operations except calm the hammer coil, which had an extended suspension of operations due to extreme weather. While Red Dog's zinc production declined by 13% to 107,000 tons due to lower grades, as expected in the mine plan, refined zinc production at shale operations increased 18% to 62,000 tons, and Tamina Zinc production was down 70% due to a lower ratio of copper zinc ore as expected in the mine plan and reflected in our annual 2026 guidance. Turning to costs, at the bottom of the slide, I'm noting continued strong cost performance in the quarter. In copper, net cash unit cost improved 15% from a year ago to $1.77 US per pound in the quarter. Year to date, our net cash unit costs are $1.72 US per pound. In Zinc, unit costs were 27 US cents per pound in the quarter, reflecting lower volumes at Red Dog as expected. We continue to benefit from strong by-product prices, and year-to-date we're at 30 US cents per pound. Higher by-product prices, together with strong operating discipline, have allowed us to lower our 2026 cost guidance for both copper and zinc. Copper net cash unit costs for 2026 are now expected to be between $1.80 and $2 US per pound. In zinc, we've reduced our guidance roughly in half, with net cash unit costs now expected to be between 30 and 40 US cents per pound. Crystal will take you through the details shortly. Overall, we've delivered copper growth and cost discipline in the face of a challenging operating environment in the third quarter, demonstrating the resilience of our operations. There are no changes to our copper or zinc production guidance for 2026, including for QB, despite the impact of severe weather in the third quarter. On October 24th, a strike commenced at Highland Valley. Contingency plans were in place and HPC continues to operate at a reduced capacity. The impact on production depends on the duration of the labour action and we do not expect any significant impact on construction timelines for the mine life extension project. Our focus is on maintaining safe and environmentally responsible operations while working towards a new collective agreement that is fair to employees and supports the long-term competitiveness of the operation. More broadly, the weather we experienced in the third quarter is a reminder of the very real impacts of climate change and of why building resilience into our operations matters. We continue to adjust our planning processes and operating assumptions to account for climate related risks and our plans consider a range of scenarios. So turning now to QB on slide 8. QB's operating performance has been strong excluding the impacts of the recent severe weather. QB's solid execution in the first half of the year continued through July with key operating metrics consistent with or ahead of those used in our guidance for this year. However, severe weather in August caused intermittent power outages and downtime of the concentrator and affected our dewatering systems and other critical equipment. Wet conditions continued into September, reducing mine productivity and limiting our access to high-grade ore. As a newer operation, QB is predominantly operating in a single phase of the mine per the mine plan, resulting in limited operational flexibility to respond to severe weather conditions. The weather impacts, along with a planned maintenance shutdown in September, are reflected in QB's third quarter operating results. Asset utilisation was 79%, throughput averaged 117,000 tonnes per day, and recoveries were just over 81%. On a year-to-date basis, QB's operating metrics remain consistent with those used in our 2026 Animal Production Guidance, which is unchanged. Completing of the final plan shutdown for the year in September supports continued operational performance for the remainder of the year, and worth it continuing on performance improvements for recovery. As the mine plan advances through the fourth quarter and into 2027, multiple mining phases will be opened, enhancing operational flexibility and authorising optionality, and resulting in improved reliability and resilience. So turning to the updates on QG's TMF on slide 9. As you can see in the photos, development work on the TMF continues to advance. The third quarter of 2026 marked our fourth consecutive quarter with no TMF-related downtime. Sand deposition has improved significantly from a year ago, and in July we achieved our highest monthly deposition rate. Construction of the secondary cyclone station is expected to further improve sand deposition performance and provide additional operational flexibility. As previously disclosed, we brought forward the material placement originally planned for 2027 into 2026 and commenced construction of Rock Bench 6 in Q3. This allows us to install the permanent TMS pipeline infrastructure which began in October. The updated scorecard on slide 10 summarizes our latest progress on QB's TMS. We expect to complete all of our near-term TMS development objectives by the first quarter of 2027. We are working hard to advance the three remaining major components. Commissioning of the Secondary Site 1 system is expected in the first quarter of 2027. Construction of Rockbench 6 and installation of the permanent CMS pipeline infrastructure are also expected to be completed in the third quarter of 2020. The photo on the right shows installation of the jacking header, which is part of the permanent pipeline infrastructure and will mechanically raise the tailings and sand pipelines once completed. Successful completion of the three remaining components of the TMS will support more efficient and optimised TMS performance and enable steady-state operations at QVC. Turning now to the mine life extension at Highland Valley on slide 11. Construction is progressing well and the project is now more than 25% complete. More importantly, construction of the project is proceeding safely with more than 1.5 million hours worked without a high potential incident or lost time injuries. Work is underway across the projects including tailings, power infrastructure, earthworks, pipelines and brownfield work. Towards the end of the third quarter we began a planned temporary shutdown of one grinding line to allow for upgrades to the processing plant and we expect that work to be completed in January 2027. Our project capital guidance is unchanged, $900 million to $1.2 billion for 2026 and $2.1 to $2.4 billion in total. We invested $230 million of project capital in the third quarter and $672 million year-to-date. In light of the mine plan, capitalized stripping activity for the project is expected to continue ramping up in the fourth quarter. So I'll now hand over to Crystal to take you through the financial results in more detail.