Teck Resources provides update on QB, Q4 steelmaking coal sales volume

Teck Resources provided unaudited 2023 production volumes for Quebrada Blanca, or QB, operations, an update on the QB2 project, and unaudited fourth quarter steelmaking coal sales volumes and realized prices. 2023 unaudited contained copper production volumes from QB, excluding copper cathode, totaled 56,200 tons, below the bottom end of our guidance range of 80,000 tons for 2023 due to reliability and consistency issues in the fourth quarter. Fourth quarter production was 35,000 tons. During the second half of 2023, each of the operations at QB, including mine operations, crushing, grinding, flotation, tailings, desalination and concentrate handling, all operated at or above design capacity. Our focus in the fourth quarter was on achieving reliable and consistent operations. This took longer than expected to achieve and, as a result, production did not meet forecast. However, by the end of December, QB was operating near design throughput capacity, and this has continued into 2024. Recoveries have generally been in line with expectations and head grades remain within expected levels. The construction of the molybdenum plant was substantially completed in December, and commissioning has commenced. Ramp-up of the molybdenum plant is expected to be completed by the end of the second quarter of 2024. Construction of the port offshore facilities is progressing to plan and is expected to be completed by the end of the first quarter of 2024. The last jetty pile was completed in December, representing a major milestone in the port construction. Our previously disclosed QB2 project capital cost guidance is unchanged at $8.6B-$8.8B. Our fourth quarter steelmaking coal sales were 6.1M tons, near the top end of our previously disclosed guidance of 5.8M – 6.2M tons. The realized steelmaking coal price in the fourth quarter averaged $270 per ton. The company expects to report positive steelmaking coal provisional pricing adjustments of $89M in the fourth quarter. Teck is expecting to provide full 2023 production results and 2024 guidance in a separate news release on January 16. Our fourth quarter and annual 2023 financial results are scheduled for release on February 21.