2023
ANNUAL
REPORT
OUR PURPOSE
To provide the essential resources
the world is counting on to make life
better while caring for the people,
communities and land that we love.
View our 2023 Sustainability Report
On the cover: Alejandro Barahona, Dry Area Supervisor, in the mill
area at Quebrada Blanca Operations, Tarapacá Region, Chile.
2023
SUSTAINABILITY
REPORT
1
Our Business
Teck is one of Canada's leading mining companies, focused on providing products
that are essential to building a better quality of life for people around the globe.
Headquartered in Vancouver, British Columbia (B.C.), Canada, we own or have interests
in nine operating mines, a large metallurgical complex, and several significant copper
and zinc development projects, all in the Americas. We have expertise across a wide
range of activities related to exploration, development, mining and minerals
processing, including smelting and refining, commodity sales and trading, health and
safety, environmental protection, materials stewardship, recycling and research.
Our corporate strategy is focused on exploring for, acquiring, developing and
operating world-class, long-life assets in stable jurisdictions that operate through
multiple price cycles. We maximize productivity and efficiency at our existing
operations, maintain a strong balance sheet, deliver commercial and supply chain
excellence and are nimble in recognizing and acting on opportunities. The pursuit of
sustainability guides our approach to business, and we recognize that our success
depends on our ability to ensure safe workplaces, collaborative community
relationships and a healthy environment.
IN THIS REPORT
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4
6
8
11
14
19
23
27
28
67
140
141
142
Our Business
2023 Highlights
Letter from the Chair
Letter from the CEO
Management’s Discussion and Analysis
Copper
Zinc
Steelmaking Coal
Exploration & Geoscience
Financial Overview
Consolidated Financial Statements
Board of Directors
Off icers
Corporate Information
Mineral reserve and resource estimates for our properties are disclosed in our most recent Annual Information Form, which is available on our website at www.teck.com,
under Teck’s profile at www.sedarplus.ca (SEDAR+), and on the EDGAR section of the United States Securities and Exchange Commission (SEC) website at www.sec.gov.
Forward-Looking Statements
This annual report contains forward-looking statements. Please refer to the “Cautionary Statement on Forward-Looking Statements” on page 65.
All dollar amounts expressed throughout this report are in Canadian dollars unless otherwise noted.
2
Teck 2023 Annual Report
1
3
5
Operations and
Development Projects
Copper
1
Highland Valley Copper
Antamina
Carmen de Andacollo
Quebrada Blanca
Zinc
1
Red Dog
Trail Operations
Steelmaking Coal
1
Fording River
Greenhills
Line Creek
Elkview
Copper Development Projects
5
Highland Valley Copper Mine Life Extension
Zafranal
San Nicolás
NewRange Copper Nickel
Quebrada Blanca Asset Expansion
Galore Creek
Schaft Creek
NuevaUnión
Zinc Development Projects
3
Anarraaq and Aktigiruq
Cirque
Su-Lik
Teena
2
3
4
2
6
7
8
9
10
11
12
4
5
6
10 11
4
1
5
2 1
8
7
6
2
6
4
9
12
3
Copper
We are a significant copper producer in the Americas, with four
operating mines in Canada, Chile and Peru, and eight copper
development projects in North and South America.
Zinc
We are one of the world’s largest producers of mined zinc, with
production from the Red Dog mine in Alaska and from the Antamina
copper mine in Peru, which has considerable zinc co-product production,
and one significant zinc development project in Alaska. We also own
one of the world’s largest fully integrated zinc and lead smelting and
refining facilities in British Columbia, Canada.
Steelmaking Coal
We are the world’s second-largest seaborne exporter of steelmaking
coal, with four low-carbon intensity1 operations in British Columbia,
Canada that have significant high-quality steelmaking coal reserves.2
1 Carbon intensity in this context refers to the greenhouse gas (GHG) emissions per tonne of product produced (e.g., GHG per tonne of steelmaking coal).
The assertion of being low-carbon is based on comparison of the aggregate carbon intensity performance (Scope 1 and 2 emissions) of Teck’s
steelmaking coal operations with that of other global steelmaking coal producers, based on analysis published by Skarn Associates covering 2018–
2022, which states that the carbon performance of Teck’s steelmaking coal operations is more than 50% below the global weighted average.
2 On November 13, 2023, Teck announced it had agreed to sell its entire interest in its steelmaking coal business through a sale of a majority 77% interest to
Glencore plc (Glencore) and a sale of a minority 20% and 3% interest to Nippon Steel Corporation (NSC) and POSCO, respectively. For further information,
see page 35.
Our Business
3
2023 Highlights
Financial
· Adjusted EBITDA1 was $6.4 billion for the year, driven by robust prices for steelmaking coal and copper and higher
steelmaking coal sales volumes
· Profit from continuing operations before taxes was $3.9 billion for the year
· Adjusted profit attributable to shareholders1 was $2.7 billion or $5.23 per share for the year
· Profit from continuing operations attributable to shareholders was $2.4 billion or $4.70 per share for the year
· Our liquidity remained strong at $6.0 billion as at December 31, 2023, including $744 million of cash
· We returned a total of $765 million to shareholders in 2023 through $250 million of Class B subordinate voting share
buybacks pursuant to our normal course issuer bid, and $515 million through dividends
· Since 2019, we have returned $3.9 billion to shareholders, including $2.5 billion of Class B subordinate voting share
buybacks
· On February 21, 2024, the Board authorized up to a $500 million share buyback, and approved the payment of our
quarterly base dividend of $0.125 per share payable on March 28, 2024 to shareholders of record on March 15, 2024
· On November 13, 2023, we announced a transformational transaction to further focus our portfolio on base metals
and copper growth, with the full sale of our steelmaking coal business, Elk Valley Resources (referred to as EVR);
a majority stake in EVR will be sold to Glencore plc (Glencore) at an implied enterprise value of US$9.0 billion and
a minority stake was sold to Nippon Steel Corporation (NSC) and POSCO
· The transactions with NSC and POSCO closed on January 3, 2024, with NSC paying US$1.3 billion in cash on closing
Operating and Development
· We continue to advance our copper growth portfolio with completion of the feasibility study at our HVC Mine Life
Extension project and are further progressing the feasibility studies at our San Nicolás and Zafranal projects
· We submitted the environmental permit for the HVC Mine Life Extension to the British Columbia regulator in October
2023, and finalized a Mexican Environmental Impact Assessment (MIA-R) for San Nicolás, which was submitted in
January 2024
· On February 14, 2024, approval of the Modification of Environmental Impact Assessment (MEIA) for mine life expansion
at Antamina was received
· On the QB2 project, construction of the molybdenum plant was substantially complete at the end of 2023 and
commissioning is well underway; ramp-up of the molybdenum plant is expected to be completed by the end of the
second quarter of 2024; additionally, all in-water works at the port have been successfully concluded, and we remain
on track to finalize the construction of the offshore facilities at the port by the end of the first quarter of 2024
1 This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
4
Teck 2023 Annual Report
Safety and Sustainability Leadership
· Our High-Potential Incident Frequency rate for 2023 remained low at 0.14, but was elevated compared to 2022;
in response, we have investigated each incident, shared learnings across the organization, and enhanced safety
standards focused on managing high-potential risk and related critical controls
· Our Quebrada Blanca and Carmen de Andacollo operations were awarded the Copper Mark in recognition of
environmentally and socially responsible production practices; our Trail Operations became the first stand-alone zinc
processing site globally to receive the Zinc Mark in 2023 and, in February 2024, our Red Dog Operations was also
awarded the Zinc Mark
· We announced agreements with Canadian Pacific Kansas City Limited, NORDEN and Oldendorff Carriers intended
to reduce CO2 emissions in our steelmaking coal supply chain
· We were named to the Dow Jones Sustainability World Index for the 14th consecutive year based on the 2023 S&P
Corporate Sustainability Assessment, and recognized as one of the 2023 Global 100 Most Sustainable Corporations
by Corporate Knights for the fifth straight year
Revenue
Profit Attributable
to Shareholders
Adjusted Profit Attributable
to Shareholders1,2,3
Cash Flow from
Operations
2023
2022
2021
2020
2019
$15.0 billion
$2.4 billion
$17.3 billion
$12.8 billion
$8.9 billion
$11.9 billion
$3.3 billion
$2.9 billion
$(0.9) billion
$(0.6) billion
$2.7 billion
$4.9 billion
$3.1 billion
$0.6 billion
$1.7 billion
$4.1 billion
$8.0 billion
$4.7 billion
$1.6 billion
$3.5 billion
1 Amount for the years ended December 31, 2021, 2020 and 2019 are as previously reported.
2 Amount for the year ended December 31, 2022 is the nine months ended September 30, 2022 as previously reported plus the three months ended
December 31, 2022 for continuing operations.
3 This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
2023 Highlights
5
Letter from the Chair
Sheila A. Murray
Chair of the Board
To the Shareholders
I am pleased to present Teck’s Annual Report for 2023. This was, without question, a pivotal year in Teck’s history with
major progress in unlocking value for shareholders and benefitting stakeholders by positioning our company to be a
leading critical minerals producer for years to come.
The year was highlighted by the ramp-up of production at the expanded Quebrada Blanca copper operation in Chile, a
key pillar of Teck’s growth strategy. I would like to recognize the thousands of committed employees and contractors
who worked safely and responsibly to bring this major project into production.
Then, in November, Teck announced the full sale of the steelmaking coal business for an implied enterprise value of
US$9.0 billion, with a majority stake to be sold to Glencore and minority interests to Nippon Steel and POSCO, setting
the stage for Teck’s growth as a global critical minerals champion.
On behalf of the Board of Directors, I want to recognize the hard work and dedication of the entire Teck team who have
positioned Teck for a bright future and achieved important results in 2023, including:
· Returning a total of $765 million to shareholders in 2023 through $250 million of Class B subordinate voting share
buybacks pursuant to our normal course issuer bid, and $515 million to shareholders through dividends;
· Achieving strong financial results, including adjusted profit attributable to shareholders1 of $2.7 billion, or $5.23 per
share, for the year;
· Advancing the ongoing ramp-up to full production at Quebrada Blanca, which will double Teck’s copper output on
a consolidated basis;
· Progressing our industry-leading portfolio of near- and mid-term copper growth projects;
· Maintaining strong social and environmental performance, including being named to the Global 100 Most
Sustainable Corporations list by Corporate Knights for the sixth consecutive year.
In May, we implemented the six-year sunset for the multiple voting rights attached to Class A common shares of Teck,
which had been approved by our shareholders in April.
I want to express my gratitude to our employees, customers, and suppliers, as well as the governments, Indigenous
Peoples, and communities where we operate. And of course, our shareholders. This year has been transformational in so
many respects, but one thing that will never change is Teck’s commitment to responsibly providing essential materials
the world needs.
1 This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
6
Teck 2023 Annual Report
Teck’s Board of Directors was pleased to welcome Arnoud Balhuizen in 2023. We would like to thank Mike Ashar,
Quan Chong, Masaru Tani and Red Conger, each of whom retired from the Board this past year, for their many
contributions to Teck over the years.
We are excited to continue charting a bright future for Teck while generating long-term value that provides
lasting benefits for stakeholders and responsibly producing the metals and minerals needed to make the world
a better place.
Sheila A. Murray
Chair of the Board
Vancouver, B.C., Canada
February 22, 2024
Letter from the Chair
7
Letter from the CEO
Jonathan H. Price
President and Chief Executive Officer
To the Shareholders
2023 was an important year for Teck, as we positioned ourselves for growth as a Canadian-based global critical minerals
champion, unlocking value for shareholders, and advancing our energy transition metals-focused strategy. At the same
time, our team remained committed to safety, sustainability and operational performance across our sites.
As a result, as we head into 2024, Teck is in a strong position to capitalize on the growing demand for critical minerals
needed for the energy transition, while maintaining our track record of leading social and environmental performance.
In 2023, we made significant progress advancing our industry-leading copper growth portfolio. Notably, our flagship copper
project, the expanded Quebrada Blanca (QB) Operations, achieved first copper and the ongoing ramp-up to full production
will double Teck’s copper output on a consolidated basis.
We also reached an agreement for the full sale of our steelmaking coal business for an implied enterprise value of
US$9.0 billion, with a majority stake to be sold to Glencore and a minority stake to Nippon Steel Corporation and POSCO.
This transaction puts Teck in position to unlock the full value of our company and capitalize on fast-rising global demand for
energy transition metals like copper — the most essential resource to make the low-carbon transition a reality. At the same
time, the transaction, which is expected to close later this year, will support a strong, sustainable future for the steelmaking
coal employees and stakeholders.
Health and Safety Performance
Everything we do begins with our commitment to the health and safety of our people. We were deeply saddened by a
fatality at a decommissioned area of our QB operation that occurred in 2023. In response, we conducted a thorough
investigation to identify the root causes, with the findings and preventative measures shared within Teck and with our
mining peers to help prevent future incidents. Our High-Potential Incident Frequency remained low at a rate of 0.14 for the
year, but was higher than 2022. In response, we have investigated each incident, shared learnings across the organization,
and enhanced safety standards focused on managing high-potential risk and related critical controls. We have also begun
implementing a new phase of our health and safety employee culture program, Courageous Safety Leadership, which
focuses on empowering every worker to be a safety leader.
Financial Performance
Driven by robust prices for steelmaking coal and copper and higher steelmaking coal sales volumes, Teck achieved strong
financial results for the year, including adjusted profit attributable to shareholders1 of $2.7 billion or $5.23 per share for the
year, profit from continuing operations attributable to shareholders of $2.4 billion or $4.70 per share, and adjusted EBITDA1
of $6.4 billion. We returned a total of $765 million to shareholders in 2023 through $250 million of Class B subordinate
voting share buybacks pursuant to our normal course issuer bid, and $515 million to shareholders through dividends. We
ended the year with $744 million of cash and $6.0 billion of liquidity, and our balance sheet is strong.
1 This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
8
Teck 2023 Annual Report
Advancing Copper Growth
We marked a major milestone for Teck in 2023, with first production and ramp-up of our newly expanded Quebrada Blanca
Operations. At various points 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.
At full production, QB will double Teck’s consolidated copper production and put us on a path to become a top 10 global
copper producer. Further, the initial mine life of 27 years uses only about 18% of the 2022 reserves and resource tonnage —
meaning it has significant potential for future growth.
QB was built on a foundation of Teck’s commitment to sustainability, with leading environmental practices such as the use
of desalinated water and 100% renewable energy, to our long-standing work to create tangible benefits in the region. It also
incorporates an Integrated Operations Centre in Santiago, bringing together resources and data to help achieve better
operational performance, improve integration and flexibility, and support a more inclusive and safe work environment.
In addition to QB, we continue to advance our industry-leading portfolio of copper projects. Teck and Agnico Eagle
finalized a 50/50 joint venture agreement to advance the high-quality copper-zinc San Nicolás project located in
Zacatecas, Mexico, and submitted a Mexican Environmental Impact Assessment (MIA-R) for the project in January 2024.
Teck and PolyMet Mining Corp. finalized the NewRange Copper Nickel LLC joint venture, consisting of the NorthMet and
Mesaba deposits located in northeastern Minnesota.
We also received regulatory approval for the Zafranal copper project from Peru´s National Service of Environmental
Certification for Sustainable Investments, and filed the major regulatory application for the Highland Valley Copper Mine
Life Extension, which will extend the life of the operation to at least 2040.
While we continue to advance those key projects, our main focus for 2024 is on achieving consistent operating performance
at design capacity for QB; as we prioritize that work, we do not intend to sanction any growth projects this year.
Ultimately, we intend to advance our base metals growth in a disciplined way, following our capital allocation framework
focused on generating strong returns for shareholders, balanced with growth, and maintaining a robust balance sheet in
line with investment grade credit metrics.
Sustainability Performance
At Teck, strong social and environmental performance is aligned with our purpose and our values, and also essential to our
ability to operate and grow.
In 2023, we continued building on our sustainability strategy, including advancing our work to achieve net-zero emissions
by 2050, including the milestone goal of reducing carbon intensity of operations by 33% by 2030. As part of that work, we
advanced our carbon capture pilot at our Trail Operations, and entered into agreements to reduce emissions on transportation
of our products with shipping companies NORDEN and Oldendorff.
Letter from the CEO
9
Letter from the CEO
We also advanced our nature positive goal, including donating $10 million to the Chilean Nature Fund to support Chile’s
protected marine areas program and protect the Juan Fernández Archipelago UNESCO Biosphere Reserve. Since 2022,
we’ve helped to conserve and restore a total of 51,900 hectares.
Our Trail Operations became the first stand-alone zinc processing facility to achieve Zinc Mark verification under the
Copper Mark program, and in February 2024, our Red Dog Operations was also awarded the Zinc Mark. Our QB and
Carmen de Andacollo operations also achieved Copper Mark in 2023, in recognition of environmentally and socially
responsible production practices. All Teck’s managed base metals operations are now verified and recognized through
Copper Mark for strong environmental and social performance, which is a significant achievement.
We were proud to be recognized as one of the 2024 Global 100 Most Sustainable Corporations by Corporate Knights for
the sixth consecutive year, named to the 2023 Bloomberg Gender Equality Index, and named to the Dow Jones
Sustainability World Index in 2023 for the 14th consecutive year.
Our Future
2023 was a pivotal year for Teck — one where we took key steps towards unlocking our full potential. With the
advancement of QB, the progress across our unrivalled copper growth portfolio and the sale of our steelmaking coal
business, Teck is positioned to continue growing as a Canadian-based global critical minerals champion, providing the
metals essential to the energy transition.
Moving forward through 2024, we will continue to focus on driving growth, value creation and resilience, built on a
foundation of stakeholder trust and a commitment to excellence in everything we do.
Jonathan H. Price
President and Chief Executive Officer
Vancouver, B.C., Canada
February 22, 2024
10
Teck 2023 Annual Report
MANAGEMENT’S
DISCUSSION AND
ANALYSIS
Management’s Discussion and Analysis
11
Management’s Discussion
and Analysis
Our business is exploring for, acquiring, developing and producing natural resources. We are organized into business units
focused on copper, zinc and steelmaking coal, with an increasing focus on the development of an industry-leading portfolio
of copper and zinc development projects. These are supported by our corporate offices, which manage our corporate
growth initiatives and provide marketing, administrative, technical, health, safety, environment, community, financial and
other services.
Through our interests in mining and processing operations in Canada, the United States (U.S.), Chile and Peru, we are an
important producer of copper, one of the world’s largest producers of mined zinc and the world’s second-largest seaborne
exporter of steelmaking coal. We also produce lead, silver, molybdenum and various specialty and other metals, chemicals
and fertilizers. We actively explore for copper, zinc and nickel.
This Management’s Discussion and Analysis of our results of operations is prepared as at February 22, 2024 and should be
read in conjunction with our audited annual consolidated financial statements for the year ended December 31, 2023.
Unless the context otherwise dictates, a reference to Teck, Teck Resources, the Company, us, we or our refers to Teck
Resources Limited and its subsidiaries. All dollar amounts are in Canadian dollars, unless otherwise stated, and are based
on our 2023 audited annual consolidated financial statements that are prepared in accordance with IFRS® Accounting
Standards as issued by the International Accounting Standards Board (IASB) (IFRS Accounting Standards). In addition, we
use certain financial measures, which are identified throughout the Management’s Discussion and Analysis in this report,
that are not measures recognized under IFRS Accounting Standards and that do not have a standardized meaning
prescribed by IFRS Accounting Standards. See “Use of Non-GAAP Financial Measures and Ratios” on page 56 for an
explanation of these financial measures and reconciliation to the most directly comparable financial measures under IFRS
Accounting Standards.
This Management’s Discussion and Analysis contains certain forward-looking information and forward-looking statements.
You should review the cautionary statement on forward-looking statements under the heading “Cautionary Statement on
Forward-Looking Statements” on page 65, which forms part of this Management’s Discussion and Analysis, as well as the
risk factors discussed in our most recent Annual Information Form.
Additional information about us, including our most recent Annual Information Form, is available on our website at
www.teck.com, under Teck’s profile at www.sedarplus.ca (SEDAR+), and on the EDGAR section of the United States
Securities and Exchange Commission (SEC) website at www.sec.gov.
12 Teck 2023 Annual Report
Business Unit Results
The following table shows a summary of our production of our major commodities for the last five years and estimated
production for 2024.
Five-Year Production Record and Our Estimated Production in 2024
Principal Products
2019
2020
2021
2022
2023
estimate2
2024
Copper1
thousand tonnes
297
276
287
270
296
503
Zinc
Contained in concentrate1
Refined
thousand tonnes
thousand tonnes
Steelmaking coal
million tonnes
640
287
25.7
587
305
21.1
607
279
24.6
650
249
21.5
644
267
23.7
598
283
25.0
Notes:
1. We include 100% of production and sales from our Quebrada Blanca and Carmen de Andacollo mines in our production and sales volumes,
even though we do not own 100% of these operations, because we fully consolidate their results in our financial statements. We include 22.5%
of production and sales from Antamina, representing our proportionate ownership interest in this operation. Zinc contained in concentrate
production includes co-product zinc production from our 22.5% interest in Antamina.
2. Production estimates for 2024 represent the midpoint of our production guidance range.
Average commodity prices and exchange rates for the past three years, which are key drivers of our profit, are
summarized in the following table.
2023
% chg
2022
% chg
2021
US$
Copper (LME cash — $/pound)
Zinc (LME cash — $/pound)
Steelmaking coal (realized — $/tonne)
Exchange rate (Bank of Canada)
US$1 = CAD$
CAD$1 = US$
$
3.85
1.20
263
1.35
0.74
-4%
-24%
-26%
+4%
-4%
$
3.99
1.58
355
1.30
0.77
-6%
+16%
+70%
+4%
-4%
$
4.23
1.36
209
1.25
0.80
Our revenue, gross profit and gross profit before depreciation and amortization, by business unit, for the past three
years are summarized in the following table.
Revenue
Gross Profit
Gross Profit Before
Depreciation and Amortization1
($ in millions)
2023
2022
2021
2023
2022
2021
2023
2022
2021
Copper
Zinc
Steelmaking coal
3,051
8,535
$ 3,425 $ 3,381 $ 3,452 $
3,526
3,063
712 $ 1,399 $
1,741 $ 1,265 $ 1,837 $ 2,126
918
688
1,044
771
10,409
6,251
6,401
2,785
7,364
3,657
400
4,031
708
5,101
Total
$ 15,011 $ 17,316 $ 12,766 $ 5,143 $ 8,571 $ 5,214 $ 7,074 $ 10,245 $ 6,701
Note:
1. This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
Management’s Discussion and Analysis
13
Copper
In 2023, we produced 296,500 tonnes of copper from our Highland Valley Copper Operations in B.C., our 22.5% interest
in Antamina in Peru, and our Carmen de Andacollo and Quebrada Blanca operations in Chile.
In 2023, our copper business unit accounted for 23% of our revenue and 14% of our gross profit.
Revenue
Gross Profit (Loss)
Gross Profit (Loss) Before
Depreciation and Amortization1
($ in millions)
2023
2022
2021
2023
2022
2021
2023
2022
2021
Highland Valley
Copper
Antamina
Carmen de
Andacollo
Quebrada Blanca
Other
Total
$ 1,125 $
1,454 $ 1,440 $
237 $
580 $
721 $
391 $
738 $
1,296
1,423
1,383
657
818
828
899
1,021
409
595
–
399
105
–
493
136
–
(32)
(142)
(8)
2
2
(3)
153
39
–
44
(61)
(8)
73
8
(3)
883
992
209
42
–
$ 3,425 $ 3,381 $ 3,452 $
712 $ 1,399 $
1,741 $ 1,265 $
1,837 $ 2,126
Note:
1. This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
(thousand tonnes)
2023
2022
2021
2023
2022
2021
Production1
Sales1
Highland Valley Copper
Antamina
Carmen de Andacollo
Quebrada Blanca
Total
99
95
39
63
296
119
102
39
10
270
131
100
45
11
287
98
95
41
57
291
127
101
39
9
276
124
99
45
12
280
Note:
1. We include 100% of production and sales from our Quebrada Blanca and Carmen de Andacollo mines in our production and sales volumes,
even though we do not own 100% of these operations, because we fully consolidate their results in our financial statements. We include
22.5% of production and sales from Antamina, representing our proportionate ownership interest in the operation.
14 Teck 2023 Annual Report
Operations
Highland Valley Copper
Highland Valley Copper Operations is located in south-central B.C. Gross profit was $237 million in 2023, compared with
$580 million in 2022 and $721 million in 2021. Gross profit in 2023 decreased from 2022 primarily due to a 23% decline in
sales volumes as result of lower production volumes, and partly due to lower copper prices and higher maintenance costs.
Highland Valley Copper’s 2023 copper production decreased to 98,800 tonnes compared with 119,100 tonnes produced
in 2022. The lower production in 2023 was primarily a result of lower copper grades and harder ore, both as expected in
the mine plan, as well as unplanned mill maintenance and a localized geotechnical event in the Valley pit in the third
quarter of 2023.
Copper production in 2024 is anticipated to be between 112,000 and 125,000 tonnes, with a relatively even distribution
throughout the year. Copper production is expected to be between 140,000 and 160,000 tonnes in 2025, 130,000 and
150,000 tonnes in 2026, and 120,000 and 140,000 tonnes in 2027. Molybdenum production in 2024 is expected to be
between 1,300 and 1,600 tonnes, with production expected to be between 1,800 and 2,300 tonnes in 2025, 2,300 and
2,800 tonnes in 2026, and 2,700 and 3,200 tonnes in 2027.
Antamina
We have a 22.5% share interest in Antamina, a copper-zinc mine in Peru. The other shareholders are BHP (33.75%),
Glencore (33.75%) and Mitsubishi Corporation (10%). Our share of gross profit in 2023 was $657 million compared with
$818 million in 2022 and $828 million in 2021. Gross profit in 2023 was lower than 2022 as a result of lower copper and
zinc prices, as well as lower copper production per the mine plan.
On a 100% basis, Antamina’s copper production in 2023 decreased to 423,500 tonnes compared to 454,800 tonnes
in 2022 primarily due to lower grades, which was expected in the mine plan. Zinc production in 2023 increased to
463,100 tonnes from 433,000 tonnes produced in 2022 as a result of processing a greater amount of copper-zinc ore
in the year. Molybdenum production in 2023 was 3,500 tonnes, which was 13% higher than in 2022.
In 2022, Antamina submitted a MEIA (Modification of Environmental Impact Assessment) to Peruvian regulators to
extend its mine life from 2028 to 2036. Approval of the MEIA was received on February 14, 2024. Teck's share of the
capital cost is expected to be US$450 million and spread over eight years.
Pursuant to a long-term streaming agreement made in 2015, Teck delivers an equivalent to 22.5% of payable silver sold
by Compañía Minera Antamina S.A. to a subsidiary of Franco-Nevada Corporation (FNC). FNC pays a cash price of 5%
of the spot price at the time of each delivery, in addition to an upfront acquisition price previously paid. In 2023,
approximately 2.2 million ounces of silver were delivered under the agreement. After 86 million ounces of silver have
been delivered under the agreement, the stream will be reduced by one-third. A total of 27.1 million ounces of silver
have been delivered under the agreement from the effective date in 2015 to December 31, 2023.
Our 22.5% share of 2024 production at Antamina is expected to be in the range of 85,000 to 95,000 tonnes of copper,
45,000 to 60,000 tonnes of zinc, and 1,200 to 1,500 tonnes of molybdenum. Our share of annual copper production is
expected to be between 80,000 and 90,000 tonnes in 2025, 90,000 and 100,000 tonnes in 2026, and 85,000 and
95,000 tonnes in 2027. Our share of zinc production is expected to average between 95,000 and 105,000 tonnes in
2025, 55,000 and 65,000 tonnes in 2026, and 35,000 and 45,000 tonnes in 2027. The decrease in the latter years is in
line with the long-term mine plan. Our share of annual molybdenum production is expected to be between 700 and
1,000 tonnes in 2025 and 2026, and between 900 and 1,200 tonnes in 2027.
Carmen de Andacollo
We have a 90% interest in the Carmen de Andacollo mine, which is located in the Coquimbo Region of central Chile.
The remaining 10% is owned by Empresa Nacional de Minería (ENAMI), a state-owned Chilean mining company.
Carmen de Andacollo incurred a gross loss of $32 million in 2023 compared to gross profit of $2 million in 2022 and a
gross profit of $153 million in 2021. The gross loss in 2023 was primarily due to higher operating costs and a decline in
copper prices as compared with 2022.
Carmen de Andacollo produced 39,500 tonnes of copper contained in concentrate in 2023 compared with 38,600 tonnes
in 2022. Despite strong mining performance, tonnes milled were lower due to water restrictions, due to extreme drought,
in the latter part of 2023. Steps are being taken to mitigate these water restriction risks, with a solution likely to be in place
in 2025. Gold production of 23,400 ounces in 2023 was lower than the 25,900 ounces produced in 2022, with 100% of
Management’s Discussion and Analysis
15
the gold produced for the account of RGLD Gold AG, a wholly owned subsidiary of Royal Gold, Inc. In effect, 100% of gold
production from the mine has been sold to Royal Gold, Inc., who pays a cash price of 15% of the monthly average gold
price at the time of each delivery, in addition to an upfront acquisition price previously paid.
Carmen de Andacollo’s production in 2024 is expected to be in the range of 38,000 to 45,000 tonnes of copper.
Annual copper in concentrate production is expected to be between 50,000 and 60,000 tonnes in 2025 and 2026
and between 45,000 and 55,000 tonnes in 2027.
Quebrada Blanca
Quebrada Blanca is located in the Tarapacá Region of northern Chile. We have a 60% indirect interest in Compañía
Minera Quebrada Blanca S.A. (QBSA). A 30% interest is owned indirectly by Sumitomo Metal Mining Co., Ltd. and
Sumitomo Corporation (together referred to as SMM/SC), and 10% is owned by ENAMI. ENAMI’s 10% preference share
interest in QBSA does not require ENAMI to fund capital spending.
Quebrada Blanca’s gross loss in 2023 was $142 million compared with gross profit of $2 million in 2022 and a gross
profit of $39 million in 2021. The gross loss in 2023 was primarily due to elevated operating costs while ramping up our
concentrate operations.
Quebrada Blanca (QB) produced 55,500 tonnes of copper in concentrate and 7,200 tonnes of copper cathode in 2023,
compared to 9,600 tonnes of copper cathode in 2022. A major milestone was achieved in 2023 with bringing the
QB2 project online and reaching near design throughput capacity by the end of the year. Production of copper in
concentrate for the year was impacted by a delay in construction. Copper cathode was lower than 2022 as a result of
the winding down of the cathode operation.
Construction of the molybdenum plant was substantially complete by the end of 2023 and commissioning is underway.
Ramp-up of the molybdenum plant is expected to be completed in the second quarter of 2024. Additionally, all in-water
works at the port have been successfully concluded, and we remain on track to finalize the construction of the offshore
facilities at the port by the end of the first quarter of 2024.
We expect copper in concentrate production from QB in 2024 to be between 230,000 and 275,000 tonnes, and between
280,000 and 310,000 tonnes per year for 2025 to 2027. Molybdenum production is expected to be between 5,000 and
6,400 tonnes in 2025, 6,400 and 7,600 tonnes in 2026, and 7,000 and 8,000 tonnes in 2027.
Copper Growth Projects
We continue to actively advance our industry-leading copper growth portfolio. The approach is driven by balancing
growth and return of capital, value-focused asset de-risking, optimization of funding sources, and prioritization and
sequencing of capital investments. Part of our copper growth strategy is continuing to advance copper projects.
Together with our partners, Teck is advancing eight significant copper-dominant base metals assets. This includes
progressing near-term project, permitting and commercial milestones. This will position Teck with high-quality
development options to maximize value from copper demand beyond the ramp-up of our newly expanded QB
Operations and our ongoing core copper-producing operations. The copper growth portfolio consists of Highland
Valley Copper Mine Life Extension (HVC Mine Life Extension, formerly HVC 2040), Zafranal, San Nicolás, NewRange
Copper Nickel (formerly Mesaba and NorthMet), Quebrada Blanca Asset Expansion (QB Asset Expansion, replacing
QBME), Galore Creek, Schaft Creek and NuevaUnión. All assets are located in jurisdictions where we have experience
conducting detailed studies, advancing permitting activities, developing strong community and stakeholder
relationships, and with operating mines (except for Mexico) in a productive, sustainable and safe manner.
We continue to advance the HVC Mine Life Extension project to extend the life of the operation to at least 2040 through
open pit pushbacks of our Valley, Lornex, Highmont and Bethlehem pits and modest concentrator upgrades, which are
expected to increase overall throughput by up to 10%. In October 2023, the HVC Mine Life Extension project completed
a feasibility study and submitted an environmental assessment application to the provincial regulator. Work in 2024 will
progress engineering and design, construction planning, and permitting-related social and environmental activities for
a possible sanction decision in 2025.
A major milestone in 2023 for the Zafranal copper-gold project located in the Arequipa Region of Peru was receipt of
the Social and Environmental Impact Assessment (SEIA) permit from the regulator in May 2023. Work in 2024 will be
focused on completing an update of the feasibility study capital and operating cost estimates, as well as initiating
detailed engineering study work in support of a potential project sanction decision in 2025. The team will continue to
work to meet the project’s community commitments and key stakeholder engagement activities in the areas of health,
capacity building, cultural heritage resource management and water.
16 Teck 2023 Annual Report
We continued to progress a feasibility study at the San Nicolás copper-zinc project located in Zacatecas State, Mexico,
in 2023, with the intention to initiate detailed engineering and further optimization work later in 2024, and plan to be
complete in 2025. Project approval would be expected to follow, subject to receipt of permits and the results of the
feasibility study. We closed the transaction to create a 50/50 joint venture partnership with Agnico Eagle in Minas
de San Nicolás in April 2023. In January 2024, San Nicolás submitted its application for an Environmental Impact
Assessment permit, which is an important milestone in advancing the development of the San Nicolás project.
In February 2023, Teck and PolyMet Mining Corp. (PolyMet) formed a 50/50 joint venture, NewRange Copper Nickel LLC
(NewRange), to advance PolyMet’s NorthMet project and our Mesaba mineral deposit. In November 2023, Glencore
became our full 50/50 partner in NewRange following its acquisition of PolyMet. Planned work activities in 2024 for
the NorthMet project will be initiating a prefeasibility study, including updated capital and operating cost estimates,
advancing salvage and demolition work on the expansive brownfield site, and working to secure updated development
permits by working collaboratively with local tribal groups, community stakeholders, state and federal permitting
agencies, regulators and critical mineral policy-makers. For the Mesaba deposit, baseline social and environmental
studies and select technical studies, with input from communities of interest, local and regional tribal groups, and
regulators and permitting agencies, will continue in 2024 to support the initiation of a prefeasibility study in 2025.
We progressed engineering studies at the QBME project in 2023; however, a decision was made to withdraw the
permit application in October, following feedback from regulators and in order to reassess the project and leverage the
operating performance of the QB2 project. The QBME project work will be incorporated into a broader QB Asset
Expansion study that will continue into 2024 and will evaluate opportunities to develop the vast Quebrada Blanca
resource, incorporating lessons learned from QB2 as well as feedback from regulators.
At the Galore Creek copper-gold-silver project located in Tahltan Territory in northwest B.C., we and our partner,
Newmont Corporation (Newmont), decided to extend the prefeasibility study work into 2024 to complete additional
value engineering for the project, with target completion in the fourth quarter of 2024. The Tahltan Central
Government (TCG) signed a consent-based agreement with the Province of B.C. in November 2023 for joint
assessment of the Galore Creek project, which is an important positive development. Social and environmental
baseline studies, in collaboration with the TCG, will continue in 2024 to support preparation of an updated Initial
Project Description, which is a key step in re-permitting this world-class copper-gold resource.
At Schaft Creek, also located in Tahltan Territory in northwest B.C., we are investing additional resources to progress
environmental and social baseline field studies, and focused design and engineering data collection fieldwork. This
includes resource modelling, geometallurgical and geotechnical studies, mining and mineral processing studies, siting
studies, and capital and operating cost estimates, in support of advancing Schaft Creek towards a prefeasibility study
in the fourth quarter of 2024.
Teck and Newmont each have a 50% interest in Compañía Minera NuevaUnión S.A., which owns the Relincho and La
Fortuna deposits in the Huasco Province in the Atacama Region of Chile. Work in 2024 will be focused on establishing
a cost-effective path forward for the development of this world-class copper-molybdenum and copper-gold resource
in a manner acceptable to the partners, communities of interest, key stakeholders and regulators.
Markets
Copper prices on the London Metal Exchange (LME) averaged US$3.85 per pound in 2023, down 3.6% from an average
of US$3.99 per pound in 2022.
Copper stocks on the LME were up 78,375 tonnes during the year, ending 2023 at 167,300 tonnes, while copper stocks
on the Shanghai Futures Exchange (SHFE) fell by 55.4% from 69,300 tonnes to only 30,900 tonnes, some of the lowest
levels since 2009. COMEX warehouse stocks fell 56.7% to 13,400 tonnes, and commercial stocks in bonded warehouses
in China fell 85.2% to 8,100 tonnes in 2023. Combined stocks decreased 9.9% or 24,000 tonnes during 2023 and
ended the year at 219,675 tonnes. Exchange stocks ended the year again near historic lows for the third straight year
at 3.0 days of global consumption. Total reported global stocks, including producer, consumer, merchant and terminal
stocks, stood at an estimated 17.5 days of global consumption, versus the 25-year average of 29.2 days.
In 2023, global copper mine production increased 1.3%, according to Wood Mackenzie, a commodity research
consultancy, with total production estimated at 22.4 million tonnes. Global mine production has increased at an average
of 1.5% annually since 2016. Wood Mackenzie is forecasting a 3.9% increase in global mine production in 2024 to 23.3
million tonnes. This is 1.1 million tonnes lower than their forecast of 24.4 million tonnes for 2024 at this time last year,
due to higher-than-normal production disruptions. Chinese imports of copper concentrates increased by 9.0% in 2023
to reach over 7.0 million tonnes of contained copper.
Management’s Discussion and Analysis
17
Copper scrap availability increased in 2023 due to stronger prices in the first half of the year. Scrap and unrefined
copper metal imports into China, including blister and anode, were flat over the same time last year, increasing only
8,000 tonnes year over year in 2023, following a 29% increase in 2022. Refined cathode imports in 2023 decreased by
6.0% to 3.2 million tonnes. Despite reports of weak copper demand in China, net contained copper unit imports were
up 2.7% or 0.3 million tonnes from 2022 levels to 13.0 million tonnes, while reported cathode stocks in China fell by
0.1 million tonnes. With the increase in refined production in China, Wood Mackenzie estimates that apparent refined
copper consumption grew in China by 6.8% in 2023.
Wood Mackenzie estimates global refined copper production grew 1.6% in 2023, below the 2.7% increase in global copper
cathode demand. Wood Mackenzie is projecting that refined production will increase by 3.5% in 2024, reaching 26.7 million
tonnes, with demand increasing 3.6% to 26.8 million tonnes, keeping the market in deficit for a second straight year. The
projected deficit in 2024 is 0.1 million tonnes, which is 0.7 million tonnes lower than Wood Mackenzie’s forecast a year ago.
Disruptions to forecast mine production in 2023 reached their highest levels in 2023, with estimates of a 6.7% loss to
guided production in 2023. Demand continues to increase as governments and corporations expand decarbonization
efforts, and supply continues to face challenges going into 2024. While consumer demand is likely to remain under
pressure in early 2024, stimulus and decarbonization spending continue to support the markets in North America and Asia.
Copper Price and LME Inventory
Source: LME
Global Demand for Copper
Source: Wood Mackenzie
Global Copper Inventories
Source: ICSG, LME, COMEX, SHFE
$5.00
$4.00
$3.00
$2.00
$1.00
$0.00
Price
2018
2019
2020
2021
2022
2023
700
600
500
400
300
200
100
0
Tonnes
30
25
20
15
10
5
35
30
25
20
15
10
5
2003
2007
2011
2015
2019
2023
0
0
Tonnes Days
2018
2019
2020 2021
2022
2023
2,500
2,000
1,500
1,000
500
0
Tonnes
LME inventory (tonnes in thousands)
Copper price (US$ per pound)
Rest of the world (tonnes in millions)
China (tonnes in millions)
Inventories (tonnes in thousands)
Days of global consumption
25-year average days inventory
Outlook
Our 2024 annual guidance outlined below is unchanged from our previously disclosed guidance.
Total copper production in 2024 is expected to significantly increase to between 465,000 and 540,000 tonnes, compared
to the 296,500 tonnes produced in 2023, as we expect increased production at QB and Highland Valley Copper.
Copper net cash unit costs1 after by-product credits, including QB, are expected to be between US$1.85 and US$2.25 per
pound in 2024. This is higher than our 2023 costs as a result of incorporating QB costs that are elevated in 2024, especially
in the first half of 2024, and of ongoing inflationary impacts on the cost of certain key supplies including mining
equipment, tires, labour and contractors persisting into 2024 and now embedded in our key supply contracts. Elevated QB
net cash unit costs1 are driven by alternative logistics costs required due to the delay in port construction, no molybdenum
production in the first quarter and lower production in 2024 as we ramp up to full production. In addition, compared to
previous year's guidance, QB has experienced inflationary pressures, including increased pass-through costs from the
Chilean energy grid regulator. Once QB is at a steady state of operation, we will provide additional unit cost guidance.
Our previously disclosed QB2 project capital cost guidance is unchanged at US$8.6 – $8.8 billion, with US$500 to
US$700 million expected to be spent in 2024.
Copper production, per the mine plans and with QB operating at designed throughput, is expected to be between
550,000 and 620,000 tonnes in 2025, 550,000 and 620,000 tonnes in 2026, and 530,000 and 600,000 tonnes in 2027.
1 This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
18 Teck 2023 Annual Report
Zinc
We are one of the world’s largest producers of mined zinc, primarily from our Red Dog Operations in Alaska, and the
Antamina copper mine in northern Peru, which has significant zinc co-product production. Our metallurgical complex
in Trail, B.C. is one of the world’s largest integrated zinc and lead smelting and refining operations. In 2023, we produced
644,000 tonnes of zinc in concentrate, while our Trail Operations produced 266,600 tonnes of refined zinc.
In 2023, our zinc business unit accounted for 20% of revenue and 8% of our gross profit.
Revenue
Gross Profit (Loss)
Gross Profit (Loss) Before
Depreciation and Amortization1
($ in millions)
2023
2022
2021
2023
2022
2021
2023
2022
2021
Red Dog
$ 1,596 $ 2,111 $
1,567 $ 408 $ 862 $
678 $
611 $ 1,060 $ 822
Trail Operations
1,992
2,059
1,997
Other
6
11
Intra-segment
(543)
(655)
10
(511)
(2)
(6)
–
(93)
2
–
(2)
12
–
103
(6)
–
(18)
2
–
84
12
–
Total
$ 3,051 $ 3,526 $ 3,063 $ 400 $
771 $
688 $
708 $ 1,044 $
918
Note:
1. This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
(thousand tonnes)
2023
2022
2021
2023
2022
2021
Production
Sales
Refined zinc
Trail Operations
Contained
in concentrate
Red Dog
Antamina1
Total
267
249
279
258
257
281
540
104
644
553
97
650
503
104
607
553
107
660
578
97
675
446
103
549
Note:
1. Co-product zinc production from our 22.5% interest in Antamina.
Management’s Discussion and Analysis
19
Operations
Red Dog
Our Red Dog Operations, located in northwest Alaska, is one of the world’s largest zinc mines. Gross profit in 2023
was $408 million compared with $862 million in 2022 and $678 million in 2021. The decrease in gross profit in 2023
compared with 2022 was primarily due to significantly lower zinc prices and increased operating costs, partly offset
by lower royalty costs, which are tied to the profitability of Red Dog.
In 2023, zinc production at Red Dog was 539,800 tonnes compared with 553,100 tonnes produced in 2022. Production
in 2023 was impacted by weather-related events in the first quarter and unplanned equipment failures during the year.
Lead production in 2023 increased to 93,400 tonnes, compared with 79,500 tonnes produced in 2022, as a result of
higher-grade ore, as expected in the mine plan.
Red Dog’s location exposes the operation to severe weather and winter ice conditions, which can significantly affect
production, sales volumes and operating costs. In addition, the mine’s bulk supply deliveries and all concentrate
shipments occur during a short ocean shipping season that normally runs from early July to late October. This short
shipping season means that Red Dog’s sales volumes are usually higher in the last six months of the year, resulting in
significant variability in its quarterly profit, depending on metal prices.
The 2023 Red Dog concentrate shipping season commenced on schedule on July 4, 2023, and was completed on
October 31, 2023. A total of 1.2 million wet metric tonnes of zinc and lead concentrate, or 99% of planned volumes,
was safely transloaded from our proprietary coastal barges onto 22 ships for delivery to our global customers.
In accordance with the operating agreement governing the Red Dog mine between Teck and NANA Regional Corporation,
Inc. (NANA), we pay a royalty on net proceeds of production to NANA, which increased from 35% to 40% in October
2022. This royalty increases by 5% every fifth year to a maximum of 50%, with the next adjustment to 45% anticipated
to occur in October 2027. The NANA royalty expense in 2023 was US$195 million compared with US$353 million in
2022. NANA has advised us that it ultimately shares approximately 60% of the royalty, net of allowable costs, with
other Regional Alaska Native Corporations pursuant to section 7(i) of the Alaska Native Claims Settlement Act.
Red Dog’s production of contained metal in 2024 is expected to be in the range of 520,000 to 570,000 tonnes of zinc
and 90,000 to 105,000 tonnes of lead. Zinc production is expected to be in the range of 460,000 to 510,000 tonnes
in 2025, 410,000 to 460,000 tonnes in 2026, and 365,000 to 400,000 tonnes in 2027. The decrease reflects declining
grades as we enter the later stages of the current mine life at Red Dog. Annual lead production is expected to be
between 80,000 and 90,000 tonnes in 2025 and 2026, and 65,000 and 75,000 tonnes in 2027.
Trail Operations
Our Trail Operations in southern B.C. produce refined zinc and lead, as well as a variety of precious and specialty
metals, chemicals and fertilizer products.
Trail Operations incurred a gross loss of $2 million in 2023 compared to a gross loss of $93 million in 2022 and a
gross loss of $2 million in 2021. The reduced gross loss in 2023 is primarily due to higher zinc premiums and increased
production levels for all primary products, as production in 2022 was impacted by planned major asset renewal
maintenance shutdowns in both the zinc and lead circuits.
Refined zinc production in 2023 increased to 266,600 tonnes compared with 248,900 tonnes in 2022. Although
refined zinc production in 2023 was not impacted by planned major maintenance, it was impacted by weather-related
events in the first quarter, and concentrate supply issues in the third quarter and partly into the fourth quarter. Refined
lead production in 2023 was 65,900 tonnes compared with 56,400 tonnes in 2022. Silver production was 10.6 million
ounces in 2023 compared to 9.7 million ounces in 2022. The increase in both lead and silver production between 2023
and 2022 is attributable to the 2022 maintenance activities mentioned above, which reduced production in 2022.
Our recycling process treated 28,400 tonnes of material during the year, and we plan to treat about 24,500 tonnes
in 2024. Our focus remains on treating lead acid batteries and cathode ray tube glass, plus small quantities of zinc
alkaline batteries and other post-consumer waste.
20 Teck 2023 Annual Report
In 2024, we expect Trail Operations to produce between 275,000 and 290,000 tonnes of refined zinc. Refined zinc
production from 2025 to 2027 is expected to be between 270,000 and 300,000 tonnes per year. Refined lead and silver
production at Trail in 2024 will be impacted by the planned outage required for the KIVCET boiler replacement. Beyond
2024, production will fluctuate as a result of concentrate feed source optimization and required major maintenance.
Zinc Growth Projects
In the second quarter of 2022, we launched a zinc initiative focused on surfacing value from our high-quality portfolio
of zinc projects. Similar to our approach to copper growth, we will methodically advance one significant growth project
and several potential growth options with prudent investments to improve our understanding of each asset’s potential
and define development options and paths to value for each of the assets.
Our principal zinc growth project is located in the Red Dog District in Alaska, where we have several high-quality
opportunities located between 10 and 20 kilometres from our existing Red Dog Operations. Our primary focus is on
Aktigiruq, a significant mineralized system, with scoping-level studies continuing in 2024 on an underground mine,
leveraging the existing mill and supporting facilities at Red Dog Operations.
Within the zinc growth portfolio, there are two primary opportunities, namely Teena and Cirque. Teena is a significant
high-grade zinc-lead discovery made by Teck in 2013 that is located approximately 8 kilometres from Glencore’s
McArthur River operation in the Northern Territory of Australia. We are advancing early-stage conceptual studies to
assess the stand-alone development opportunity represented by this high-quality discovery, which is located in a
world-class zinc district with access to established infrastructure.
In central B.C., Teck has a 50% interest in the Cirque joint venture with Korea Zinc Corp. The Cirque project is located
in a long-established mineral district with recently improved road and rail infrastructure. This can provide ready access
to market for the concentrate, including to our Trail smelting and refining operations. Our work at Cirque is focused on
permitting and program definition, with potential drilling to start later in 2024.
Markets
Zinc prices on the London Metal Exchange (LME) averaged US$1.20 per pound during 2023, falling 23.9% from
US$1.58 per pound in 2022.
Zinc stocks on the LME rose by 600% or 192,800 tonnes from historically low levels at the beginning of 2023, finishing
the year at 224,825 tonnes. Stocks held on the Shanghai Futures Exchange (SHFE) rose only slightly by 800 tonnes
while bonded stocks in China fell by 1,500 tonnes in 2023, finishing the year at a combined 22,000 tonnes, the lowest
level since 2018. Total global exchange stocks remained well below historical levels, ending the year at 6.4 days of
global consumption, compared to the 25-year average of 18.2 days. We estimate total reported global stocks, which
include producer, consumer, merchant and terminal stocks, rose by approximately 188,500 tonnes in 2023 to just
under 750,000 tonnes at year-end, representing an estimated 19.8 days of global demand, compared to the 25-year
average of 33.0 days.
In 2023, global zinc mine production decreased 2.3% according to Wood Mackenzie, with total mine production falling
to 12.5 million tonnes. This was significantly below Wood Mackenzie’s forecast a year ago for 2023 of 13.2 million
tonnes. Global zinc mine production came under financial pressures in 2023, as low zinc prices and higher operating
costs forced the closure of several mines around the world. According to Wood Mackenzie, global zinc mine
production has not grown since 2011. Mine production in 2023 at 12.5 million tonnes was at the same level as in 2011.
Wood Mackenzie expects global zinc mine production to only grow 1.8% in 2024 to reach 12.8 million tonnes, which is
1.0 million tonnes lower than its forecast a year ago for 2024, as many of the economically challenged mines will
remain offline into 2024. Mine production in 2023 was impacted by strikes, fires, floods and economic closures,
amounting to a disruption to initial 2023 guidance of over 9.2%, or close to 1.3 million tonnes.
Wood Mackenzie estimates that, despite the production cuts at the mines, the global zinc metal market moved into
surplus in 2023, recording a surplus of 0.3 million tonnes, slightly higher than the build of visible stocks on exchanges
of 0.2 million tonnes. Global refined zinc demand fell 1.6% in 2023 over 2022 to 13.4 million tonnes, and demand in
China rose by 1.6%, while demand in Europe fell 13.4% on higher energy prices, higher interest rates and lower
Management’s Discussion and Analysis
21
consumer demand. In North America, demand grew by 3.3% in 2023, according to Wood Mackenzie, based on support
from infrastructure spending and renewable energy. In 2024, Wood Mackenzie expects demand for zinc to grow
globally by 3.2% to 13.8 million tonnes, with growth coming primarily from China, Southeast Asia, South America and
the Middle East. Demand in Europe and North America is expected to grow, but at below trend rates.
Wood Mackenzie estimates that global refined zinc production grew modestly at 0.8% in 2023 to 13.7 million tonnes,
as most European and North American zinc smelters returned to normal production. Chinese refined production also
increased in 2023 as Chinese zinc concentrate imports rose 14% in 2023, increasing by over 0.3 million tonnes. Chinese
consumers also restocked with refined zinc after being absent from the import market in 2022. Chinese zinc metal
imports were up over 600% or 0.4 million tonnes as imports returned to historical levels. Wood Mackenzie estimates
refined zinc production will only grow 1.9% in 2024 over 2023 levels, as a lack of concentrates could impact the ability
of smelters to increase production in 2024. Wood Mackenzie estimates the total increase in supply in 2024 will be below
the total global metal demand growth at 3.2%; however, with demand coming off a weak 2023, the global market
should move from surplus to balance in 2024.
Zinc Price and LME Inventory
Source: LME
Global Demand for Zinc
Source: Wood Mackenzie
Global Zinc Inventories
Source: ILZSG, LME, SHFE
$2.00
$1.50
$1.00
$0.50
$0.00
Price
2018
2019
2020
2021
2022
2023
1,000
800
600
400
200
0
Tonnes
20
40
16
12
8
4
30
20
10
2003
2007
2011
2015
2019
2023
0
0
Tonnes Days
2018
2019
2020 2021
2022
2023
1,600
1,400
1,200
1,000
800
600
400
200
0
Tonnes
LME inventory (tonnes in thousands)
Zinc price (US$ per pound)
Rest of the world (tonnes in millions)
China (tonnes in millions)
Inventories (tonnes in thousands)
Days of global consumption
25-year average days inventory
Outlook
Our 2024 annual guidance for our zinc business unit is unchanged from our previously issued guidance.
Total zinc in concentrate production in 2024 is expected to be between 565,000 and 630,000 tonnes, compared to
644,000 tonnes in 2023. Production over the next three-year period is expected to decrease due to declining grades
at Red Dog and lower zinc production at Antamina. Annual zinc production is expected to be 555,000 to 615,000
tonnes in 2025, 465,000 to 525,000 tonnes in 2026, and 400,000 to 445,000 tonnes in 2027.
Refined zinc production is expected to be between 275,000 and 290,000 tonnes in 2024, compared to 266,600
tonnes in 2023. Refined zinc production is expected to increase in 2024, as a result of improved concentrate
availability. Annual refined zinc production over the next three-year period is expected to remain steady at 270,000 to
300,000 tonnes.
Zinc net cash unit costs1 after by-products in 2024 are expected to be US$0.55 to US$0.65 per pound, slightly
higher than our 2023 net unit costs after by-products as a result of ongoing inflationary impacts on the cost of
certain key supplies.
1 This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
22 Teck 2023 Annual Report
Steelmaking Coal
In 2023, our steelmaking coal operations in Western Canada produced 23.7 million tonnes, all of which were sold in
the year. The majority of our steelmaking coal sales are to the Asia-Pacific region, with the remaining amounts sold
primarily to Europe and the Americas. Our production capacity is 26 to 27 million tonnes, and we have total proven
and probable reserves of 831 million tonnes of steelmaking coal.
In 2023, our steelmaking coal business unit accounted for 57% of revenue and 78% of gross profit.
($ in millions)
Revenue
Gross profit
Gross profit before depreciation and amortization1
Production (million tonnes)
Sales (million tonnes)
2023
2022
$ 8,535
$
$
4,031
5,101
23.7
23.7
$
$
$
10,409
6,401
7,364
21.5
22.2
$
$
$
2021
6,251
2,785
3,657
24.6
23.4
Note:
1.
This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
Operations
Gross profit for our steelmaking coal business unit was $4.0 billion in 2023, down from the record $6.4 billion set in
2022, and up from $2.8 billion in 2021. Our average realized steelmaking coal selling price in 2023 was US$263 per
tonne compared with US$355 per tonne in 2022 and US$209 per tonne in 2021. Gross profit in 2023 decreased from
2022 record levels primarily due to lower steelmaking coal prices, partly offset by higher production and sales volumes.
Sales volumes were 23.7 million tonnes in 2023 compared with 22.2 million tonnes in 2022. Strong logistics
performance helped the recovery from the weather-related disruptions carried over from the fourth quarter of 2022,
and reduced steelmaking coal inventories to stable levels, which were maintained for the remainder of the year.
Despite short-term impacts during the third quarter of 2023 relating to the B.C. wildfires and labour disruptions at B.C.
ports, our flexible logistics network was able to recover in the fourth quarter and maximize sales volumes, which
helped reduce the number of vessels at anchor to normal levels by year-end.
Our 2023 production was 23.7 million tonnes, higher than the 21.5 million tonnes produced in 2022. The higher
production was primarily due to improved plant availability, most notably at Elkview Operations, which experienced
a two-month plant outage in 2022 to repair the raw coal conveyor. Overall plant performance improved as 2023
progressed, with the fourth quarter resulting in our highest quarterly production since the second quarter of 2021.
These higher production results are attributable to continuous improvements focused on plant performance, including
the plant improvement initiative, which drove the favourable results.
Management’s Discussion and Analysis
23
Adjusted site cash cost of sales1 in 2023 was $96 per tonne compared to $89 per tonne in 2022. The increase in the
adjusted site cash cost of sales was related to inflationary pressures, which most significantly impacted the cost of
maintenance parts early in the year, as well as other cost pressures, including higher contractor reliance. These factors
more than offset favourable mining drivers of higher production and higher plant yields.
Transportation unit costs in 2023 were $49 per tonne compared to $47 per tonne last year. The increase was due to
higher demurrage and port costs, due to production shortfalls relative to our initial production guidance of 24.0 to 26.0
million tonnes. In addition, challenges accessing our Neptune terminal in the second half of the year, due to the labour
disruptions and wildfires mentioned above, led to higher vessels at anchor and Neptune underutilization.
Capital spending in 2023 was $778 million for sustaining capital, including major projects such as the Elkview
Administration and Maintenance Complex (AMC) and water projects.
Elk Valley Water Quality Management Update
We continue to implement the water quality management measures required by the Elk Valley Water Quality Plan
(the Plan). The Plan establishes short-, medium-, and long-term water quality targets for selenium, nitrate, sulphate
and cadmium to protect the environment and human health. In 2023, the total capital investment in water treatment
facilities, water management (source control, calcite management and tributary management), and the incremental
measures required under the October 2020 Direction issued by Environment and Climate Change Canada (the
Direction) was $94 million for the year.
During the year, we continued to ramp up treatment operations towards our 77.5 million litres per day of constructed
water treatment capacity. To that end, three consecutive monthly treatment volume records were established in the
fourth quarter. With this constructed treatment capacity continuing to ramp up, we are on pace to achieve one of the
primary objectives of the Plan: stabilizing and reducing the selenium trend in the Elk Valley. Currently, treatment is
effectively removing selenium and water quality monitoring shows that selenium levels are trending down downstream
of treatment and stabilizing in the Elk River. We expect further reductions across the watershed and in the Koocanusa
Reservoir as additional treatment capacity is completed.
In 2024, we anticipate water treatment capital expenditures to be $150 to $250 million. We continue to expect to meet
our water treatment capacity targets by further increasing our constructed water treatment capacity to 150 million
litres per day by the end of 2026.
Final costs of implementing the Plan and other water quality initiatives will depend in part on the technologies applied,
on regulatory developments and on the results of ongoing environmental monitoring and modelling. The timing of
expenditures will depend on resolution of technical issues, permitting timelines and other factors. Certain cost estimates
to date are based on limited engineering. Implementation of the Plan also requires additional permits. We expect that,
in order to maintain water quality, some form of water treatment will continue for an indefinite period after mining
operations end. The Plan contemplates ongoing monitoring to ensure that the water quality targets set out in the Plan
are protective of the environment and human health and provides for adjustments if warranted by monitoring results.
Ongoing monitoring, as well as our continued research into treatment technologies, could reveal unexpected
environmental impacts, technical issues or advances associated with potential treatment technologies. This could
substantially increase or decrease both capital and operating costs associated with water quality management or
could materially affect our ability to permit mine life extensions in new mining areas.
1 This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
24 Teck 2023 Annual Report
Rail
Rail transportation of product westbound from our four steelmaking coal mines in southeast B.C. to Vancouver
terminals is currently provided by Canadian Pacific Kansas City Limited (CPKC) and by Canadian National Railway
Company (CN Rail). CPKC transports a portion of these westbound shipments to Kamloops, B.C., and interchanges the
trains with CN Rail for further transportation to the west coast. The remaining westbound shipments are transported
by CPKC from the mines to the terminals in Vancouver. In April 2023, we entered into a new contract with CPKC that
expires in December 2026.
We have a long-term agreement with CN Rail until December 2026 for shipping steelmaking coal from our four
B.C. operations via Kamloops to Neptune and other west coast ports, including Trigon Pacific Terminals (formerly
Ridley Terminals).
Ports
We export our seaborne steelmaking coal primarily through three west coast terminals: Neptune, Westshore Terminals
(Westshore) and Trigon. We have a 46% ownership interest in Neptune, which provides shiploading services on a
cost-of-service basis in North Vancouver, B.C. Neptune became our primary terminal in 2021 and handled 59% of our
sales volumes in 2023. Coal capacity at Neptune is exclusive to Teck, and the Neptune terminal is well positioned to
deliver strong throughput in 2024, with significantly increased loading capacity to meet delivery commitments to our
customers while further lowering our port costs.
In 2021, we entered into an agreement with Westshore for the shipment of between 5 and 7 million tonnes of steelmaking
coal per year at fixed loading charges, for a total of 33 million tonnes over a period of approximately five years.
We also have a long-term agreement with Trigon, located in Prince Rupert, for shipments of up to 6 million tonnes of
steelmaking coal per year through to December 2027.
Through our capacity at Neptune and complementary commercial agreements with Westshore and Trigon Terminals,
our annual port capacity exceeds production. This incremental capacity provides flexibility and improved reliability in
the case of weather and corridor disruptions or terminal outages.
Sales
Our steelmaking coal marketing strategy is focused on maintaining and building relationships with our existing
customers while establishing new customers in markets where we anticipate long-term growth in steel production and
demand for seaborne steelmaking coal. In 2023, our sales strategy focused on capitalizing on the strong pricing
environment by optimizing sales to our current markets.
Markets
Global steel production grew marginally in 2023, primarily due to robust production growth in India and increased
utilization in China, offset by reduced production levels in the developed markets of North America, Europe and Japan,
amid higher interest rates and global inflationary pressures.
Premium hard coking coal prices remained strong through 2023, with an average FOB price of US$296 per tonne. In
the fourth quarter, FOB prices stayed above US$300 per tonne, driven by continued constrained supply from Australia,
combined with strong demand from India.
Demand in China for hard coking coal remained strong, with the average CFR China prices surpassing US$282 per
tonne in 2023. This increase in import demand was driven by stringent safety inspections in key domestic coal-
producing provinces, which impacted supply through the year, while blast furnaces were operating at an average
utilization rate of 89.1% versus 84.5% in 2022. With the challenging macro picture in China, finished steel exports
surpassed 90 million tonnes compared to 66 million tonnes in 2022 and 67 million tonnes in 2021.
Management’s Discussion and Analysis
25
Anticipated growth in blast furnace and coke-making capacities in India and Southeast Asia are expected to fuel
demand for steelmaking coal in these regions into 2024 and beyond.
Despite China lifting the import ban on Australian coal in January 2023, shipments from Australia to China did not
rebound to historical levels, given demand from other markets. Chinese mills were able to increase imports from Mongolia
and Russia. Imports from these two countries constituted over 78% of China's total coking coal imports in 2023.
The following graphs show key metrics affecting steelmaking coal sales: spot price assessments and quarterly pricing,
hot metal production (each tonne of hot metal, or pig iron, produced requires approximately 650–700 kilograms of
steelmaking coal), and China’s steelmaking coal imports by source.
Daily Steelmaking Coal Assessments
Source: Argus, Platts, TSI
Hot Metal (Pig Iron) Production
Source: World Steel Association, National
Bureau of Statistics of China
China Steelmaking Coal Imports
Source: China’s Customs
$750
$650
$550
$450
$350
$250
$150
$50
2018
2019
2020
2021
2022
2023
2003
2007
2011
2015
2019
2023
1,400
1,200
1,000
800
600
400
200
0
Tonnes
120
100
80
60
40
20
2018
2019
2020
2021
2022
2023
0
Tonnes
Rest of the world (tonnes in millions)
China (tonnes in millions)
Landborne (tonnes in millions)
Seaborne (tonnes in millions)
Spot price assessments
(US$ per tonne FOB Australia)
Quarterly FOB Australia Assessment
(US$ per tonne)
Outlook
The steelmaking coal market in the first quarter of 2024 remains in deficit amid continued demand from Southeast
Asia and India. Challenges in Australia have kept additional volumes from entering the seaborne trade. As a result,
steelmaking coal prices started the month of January 2024 at approximately US$320 per tonne and continue to trade
near these levels through the date of this report.
Our 2024 annual guidance for our steelmaking coal business unit is unchanged from previously issued guidance.
Our steelmaking coal production in 2024 is expected to be between 24.0 and 26.0 million tonnes compared to
23.7 million tonnes produced in 2023. Production is expected to remain at these levels throughout 2025 to 2027.
We expect steelmaking coal sales in the first quarter of 2024 to be between 5.9 and 6.3 million tonnes, maximizing use
of available inventories.
We expect our 2024 steelmaking coal adjusted site cash cost of sales1 in 2024 to be between $95 and $110 per tonne.
Relative to 2023, we anticipate ongoing inflationary cost impacts of certain key supplies to persist into 2024, including
higher energy and maintenance parts, as well as higher contractor and labour costs. Transportation unit costs are
expected to be between $47 and $51 per tonne in 2024.
1 This is a non-GAAP financial measure or ratio. See “Non-GAAP Financial Measures and Ratios” for further information.
26 Teck 2023 Annual Report
Exploration & Geoscience
Throughout 2023, we conducted exploration around our existing operations and globally in seven countries through
our six regional offices. Expenditures for the year of $86 million, which were focused on copper, zinc and nickel, were
lower than expenditures in 2022 of $90 million, primarily due to delays accessing properties to conduct drill programs
in Canada, Chile, Peru and Türkiye. These delays were the result of permitting delays as well as additional time taken
to negotiate community access agreements.
Exploration and Geoscience plays three critical roles at Teck: discovery of new orebodies through early-stage exploration
and acquisition; pursuit, evaluation and acquisition of development opportunities; and delivery of geoscience solutions
and services to create value at our existing mines and development projects.
Work continued in 2023 on resource expansion at Quebrada Blanca, where we commenced a large-scale drill program
in 2022 to continue to investigate and confirm the extensions of the orebody, which remains open in multiple directions.
Early-stage copper exploration in 2023 focused primarily on advancing projects targeting porphyry-style mineralization
in Chile, Peru and the United States, and evaluating new opportunities in South America, Europe, Central Asia and
southern Africa. In 2024, we plan to drill a number of early-stage copper projects in Argentina, Chile, Kazakhstan and Peru.
Zinc exploration in 2023 was concentrated on early-stage programs in Australia, Canada, Ireland and Türkiye,
and on an advanced-stage project in the Red Dog district in Alaska. In Alaska, Australia and Canada, the targets are
large sediment-hosted deposits. In late 2023, the decision was made to terminate our exploration activities in Ireland.
In 2024, we plan to continue evaluating early-stage targets on our properties in Australia, Canada and Türkiye, and to
continue drilling advanced-stage projects in the Red Dog mine district in Alaska.
In 2023, we initiated early-stage exploration for nickel, with an initial focus on Australia, Canada and the United States.
A key element of this program is the complete digitalization of Teck’s historical exploration records — this digitization
program will use advanced generative AI tools to drive and inform our evaluation of high-quality nickel prospects, plus
copper and zinc prospects, globally. In 2024, work will focus on advancing an exploration alliance in Eastern Canada
and evaluating early-stage opportunities in Australia and the United States.
In 2023, we also drilled 86 kilometres across four steelmaking coal operations in the Elk Valley to support our existing
operations and extension projects.
Teck’s exploration strategy is underpinned by an agile commercial mindset whereby we manage and refresh a portfolio
of commercial opportunities such as retained project royalties and equity in junior exploration companies. In 2023,
investments were made in exploration companies with copper portfolios in Canada and Peru, nickel portfolios in
Canada, and zinc portfolios in Canada and the United States. Additionally, exploration agreements were signed with
exploration companies with projects in Argentina, Australia, Canada, Kazakhstan, Peru and the United States.
Management’s Discussion and Analysis
27
Financial Overview
Financial Summary
($ in millions, except per share data)
2023
2022
20212
Revenue and profit
Revenue
Gross profit
Gross profit before depreciation and amortization1
Profit from continuing operations before taxes
Adjusted EBITDA1
Profit attributable to shareholders
Profit from continuing operations attributable to shareholders
Cash flow
Cash flow from operations
Property, plant and equipment expenditures
Capitalized stripping costs
Investments
Balance sheet
Cash and cash equivalents
Total assets
Debt and lease liabilities, including current portion
Per share amounts
Basic earnings per share
Diluted earnings per share
Basic earnings per share from continuing operations
Diluted earnings per share from continuing operations
Dividends declared per share
$
$
$
15,011
5,143
7,074
$ 3,944
$ 6,367
$ 2,409
$
2,435
$ 4,084
$
$
$
4,678
1,104
137
$
$
$
$
$
$
$
$
$
$
$
17,316
8,571
10,245
6,565
9,568
3,317
4,089
7,983
4,423
1,042
199
$
$
$
$
$
$
$
$
$
$
$
12,766
5,214
6,701
4,688
6,573
2,868
3,123
4,738
3,966
667
160
$
744
$ 56,193
$
7,595
$
1,883
$
1,427
$ 52,359
$ 47,368
$
7,738
$ 8,068
$
$
$
$
$
4.65
4.59
4.70
4.64
1.00
$
$
$
$
$
6.30
6.19
7.77
7.63
1.00
$
$
$
$
$
5.39
5.31
5.87
5.78
0.20
Notes:
1. This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
2. Comparative figures for 2021 for the energy business unit have been represented for the classification of Fort Hills as a discontinued operation.
28 Teck 2023 Annual Report
Our revenue and profit depend on the prices for the commodities we produce, sell and use in our production
processes. Commodity prices are determined by the supply of and demand for those commodities, which are
influenced by global economic conditions. We normally sell the products that we produce at prevailing market
prices or, in the case of steelmaking coal, through an index-linked pricing mechanism or on a spot basis. Prices
for our products can fluctuate significantly, and that volatility can have a material effect on our financial results.
Foreign exchange rate movements can also have a significant effect on our results and cash flows, as substantial
portions of our operating costs are incurred in Canadian dollars and other currencies, and most of our revenue
and debt is denominated in U.S. dollars. We determine our financial results in local currency and report those results in
Canadian dollars; accordingly, our reported operating results and cash flows are affected by changes in the Canadian
dollar exchange rate relative to the U.S. dollar, as well as the Peruvian sol and Chilean peso.
In 2023, our profit attributable to shareholders was $2.4 billion, or $4.65 per share. This compares with a record
profit attributable to shareholders of $3.3 billion or $6.30 per share in 2022, and a profit attributable to shareholders
of $2.9 billion or $5.39 per share in 2021. Profit decreased in 2023 primarily due to lower steelmaking coal prices and
partly due to lower zinc prices and increased operating costs across our operations, reflecting ongoing inflationary
pressures and operating challenges in the year. These items were partially offset by higher steelmaking coal sales
volumes. Profit attributable to shareholders was a record in 2022 and higher than 2021 due to substantially higher
steelmaking coal prices, partly offset by slightly lower steelmaking coal sales volumes and increased operating
costs across our operations, reflecting inflationary pressures, particularly for diesel.
In 2023, we achieved a major milestone with bringing the QB2 project online and reaching near design throughput
capacity by the end of the year. QB contributed additional copper revenues in the year; however, operating costs
were at elevated levels during the production ramp-up, which reduced our profit in 2023.
Our profit and loss over the past three years has included items that we segregate for additional disclosure to
investors so that the underlying profit of the company may be more clearly understood. Our adjusted EBITDA1,
which takes these items into account, was $6.4 billion in 2023, $9.6 billion in 2022 and $6.6 billion in 2021. Our
adjusted profit attributable to shareholders1, which takes these items into account, was $2.7 billion in 2023,
$4.9 billion in 2022 and $3.1 billion in 2021, or $5.23, $9.25 and $5.74 per share, respectively. These items are
described below and summarized in the table that follows.
In 2023, we recorded after-tax gains of $192 million related to the Quintette and Mesaba transactions, and after-tax
proceeds of $150 million from the Elkview business interruption claim.
In October 2022, we announced an agreement to sell our 21.3% interest in Fort Hills Energy Limited Partnership
(Fort Hills) and certain associated downstream assets to Suncor Energy Inc. Subsequently, TotalEnergies EP Canada
Ltd. exercised its right of first refusal to purchase a proportional share of our interest in Fort Hills. On February 2,
2023, we completed the sale to Suncor and TotalEnergies for aggregate gross proceeds of approximately $1 billion
in cash and there was no current income tax payable on the disposal. Based on the consideration of $1 billion in
cash and other contractual adjustments, we recorded a non-cash pre-tax impairment of $1.2 billion in 2022 at the
time we announced the sale of our interest in Fort Hills.
In 2021, we recorded a non-cash pre-tax asset impairment reversal on our Carmen de Andacollo Operations of
$215 million as a result of an increase in market expectations for long-term copper prices. This was partially offset
by a $141 million charge associated with the QB2 variable consideration.
1 This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
Management’s Discussion and Analysis
29
The following table shows the effect of these items on our profit and loss.
($ in millions, except per share data)
2023
20222
20214
Profit from continuing operations attributable to shareholders
$
2,435
$
4,089
$
2,868
Add (deduct) on an after-tax basis:
Asset impairments (impairment reversal)
Loss on debt purchase
QB2 variable consideration to IMSA and ENAMI
Environmental costs
Inventory write-downs
Share-based compensation
Commodity derivatives
Loss (gain) on disposal or contribution of assets
Elkview business interruption claim
Chilean tax reform
Loss from discontinued operations3
Other
Adjusted profit attributable to shareholders1
Basic earnings per share
Diluted earnings per share
Adjusted basic earnings per share1
Adjusted diluted earnings per share1
–
–
95
123
18
85
9
(178)
(150)
69
–
201
952
42
115
99
36
181
(25)
7
–
–
(791)
168
(150)
–
124
79
2
94
15
–
–
–
–
25
$
$
$
$
$
2,707
4.70
4.64
5.23
5.15
$
$
$
$
$
4,873
7.77
7.63
9.25
9.09
$
$
$
$
$
3,057
5.39
5.31
5.74
5.66
Notes:
1. This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
2. Adjustments for the year ended December 31, 2022 are the nine months ended September 30, 2022 as previously reported plus the three months
ended December 31, 2022 for continuing operations.
3. Adjustment required to remove the effect of discontinued operations for the nine months ended September 30, 2022.
4. Amounts for the year ended December 31, 2021 are as previously reported.
Cash flow from operations in 2023 was $4.1 billion, compared with $8.0 billion in 2022 and $4.7 billion in 2021. The
changes in cash flow from operations are mainly due to varying commodity prices, especially for steelmaking coal,
changes in sales volumes of our principal products and, to some extent, changes in foreign exchange rates and
changes in working capital items.
At December 31, 2023, our cash balance was $744 million. Total debt was $7.6 billion and our net-debt to net-debt-plus-
equity ratio1 was 19% at December 31, 2023, compared with 18% at December 31, 2022 and 22% at the end of 2021.
1 This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
30 Teck 2023 Annual Report
Gross Profit
Our gross profit is made up of our revenue less the operating expenses at our producing operations, including
depreciation and amortization. Income and expenses from our business activities that do not produce commodities
for sale are included in our other operating income and expenses or in our non-operating income and expenses.
Our principal commodities are copper, zinc and steelmaking coal, which accounted for 20%, 14% and 57% of revenue,
respectively, in 2023. Silver and lead are significant by-products of our zinc operations, accounting for 6% of our
2023 revenue. We also produce a number of other by-products, including molybdenum, various specialty metals,
and chemicals and fertilizers, which in total accounted for 3% of our revenue in 2023.
Our revenue is affected by sales volumes, which are determined by our production levels and by demand for the
commodities we produce, commodity prices and currency exchange rates.
Our revenue was $15.0 billion in 2023, compared with $17.3 billion in 2022 and $12.8 billion in 2021. The decrease in
2023 was primarily due to lower steelmaking coal prices and, to a lesser extent, lower zinc prices, partly offset by an
increase in steelmaking coal sales volumes and additional copper revenues with the ramp-up of QB2. The increase
in 2022 revenue from 2021 was primarily due to substantially higher steelmaking coal prices.
Average prices for copper (LME) declined slightly by 4% in 2023 as compared with 2022, while average zinc (LME)
prices declined by 24% and average realized steelmaking coal prices declined by 26% in 2023 compared with record
prices realized in 2022.
Our cost of sales includes all of the expenses required to produce our products, such as labour, energy, operating
supplies, concentrates purchased for our Trail Operations’ refining and smelting activities, royalties, and marketing
and distribution costs required to sell and transport our products to various delivery points. Our cost of sales also
includes depreciation and amortization expense. Due to the geographic locations of many of our operations, we are
highly dependent on third parties for the provision of rail, port and other distribution services. In certain circumstances,
we negotiate prices and other terms for the provision of these services where we may not have viable alternatives to
using specific providers or may not have access to regulated rate-setting mechanisms or appropriate remedies for
service failures. Contractual disputes, demurrage charges, availability of vessels and railcars, weather problems and
other factors, as well as rail and port capacity issues, can have a material effect on our ability to transport materials
from our suppliers and to our customers in accordance with schedules and contractual commitments.
2023 Revenue by Business Unit
2023 Gross Profit by Business Unit
2023 Revenue by Commodity
23%
Copper
8%
Zinc
14%
Copper
9%
Other
20%
Copper
57%
Steelmaking
Coal
20%
Zinc
78%
Steelmaking
Coal
57%
Steelmaking
Coal
14%
Zinc
Our costs are dictated mainly by our production volumes; by the costs for labour, operating supplies and concentrate
purchases; by strip ratios, haul distances and ore grades; by distribution costs, commodity prices, foreign exchange
rates and costs related to non-routine maintenance projects; and by our ability to manage these costs. Production
volumes mainly affect our variable operating and distribution costs. In addition, production affects our sales volumes;
when combined with commodity prices, this affects profitability and our royalty expenses.
Our cost of sales was $9.9 billion in 2023, compared with $8.7 billion in 2022 and $7.6 billion in 2021. The increase in
cost of sales in 2023 compared to 2022 was primarily the result of the production ramp-up of QB2, which accounted
for approximately $625 million of the increase, and the effect of increased sales volumes for steelmaking coal. In
addition, operating costs were higher across our operations, reflecting ongoing inflationary pressures and operating
challenges in the year.
Management’s Discussion and Analysis
31
Other Expenses
($ in millions)
General and administration
Exploration
Research and innovation
Asset impairment (impairment reversal)
Other operating (income) expense
Finance income
Finance expense
Non-operating (income) expense
Share of (profit) losses of associates and joint ventures
$
$
2023
317
86
164
–
206
(112)
274
266
(2)
$
2022
236
90
157
–
1,102
(53)
203
275
(4)
$
1,199
$
2,006
$
2021
172
65
129
(215)
80
(5)
190
107
3
526
In 2023, general and administration expenses of $317 million increased by $81 million compared to 2022 as a result
of increased activity in the organization in relation to QB2 and strategic initiatives, and as we invest in digital
technology to enhance productivity across our business. General and administration expenses are expected to
continue at current levels into 2024.
Our exploration expenses in 2023 of $86 million, which were focused on copper, zinc and nickel, were lower than
expenditures in 2022 of $90 million, primarily due to delays accessing properties to conduct drill programs.
We must continually replace our reserves as they are depleted in order to maintain production levels over the long
term. We try to do this through our exploration and development programs and through acquisition of interests in
new properties or in companies that own them. Exploration for minerals and steelmaking coal is highly speculative,
and the projects involve many risks. The vast majority of exploration projects are unsuccessful and there are no
assurances that current or future exploration programs will find deposits that are ultimately brought into production.
Our research and innovation expenditures of $164 million in 2023 were primarily focused on the development of
internal and external growth opportunities, and the development and implementation of process and environmental
technology improvements at operations.
Other operating income and expenses include items we consider to be related to the operation of our business,
such as final pricing adjustments (which are further described below), share-based compensation, gains or losses
on commodity derivatives, gains or losses on the sale of operating or exploration assets, and provisions for various
costs at our closed properties. Significant items in 2023 included $244 million on gains on disposal or contribution
of assets that included a $191 million gain on the Mesaba transaction, $221 million for insurance proceeds from the
Elkview business interruption claim, $39 million of positive pricing adjustments, $107 million of share-based
compensation relating to an increase in our share price, and $168 million of environmental costs primarily relating to
the decommissioning and restoration provision of our closed operations. Significant items in 2022 included $371 million
of negative pricing adjustments, $236 million of share-based compensation relating to an increase in our share
price, and $128 million of environmental costs primarily relating to the decommissioning and restoration provision of
our closed operations. Significant items in 2021 included $442 million of positive pricing adjustments, partially
offset by $125 million of share-based compensation. We also recorded $108 million of environmental costs,
primarily relating to a decrease in the rates used to discount our decommissioning and restoration provisions for
closed operations, and $97 million of take-or-pay contract costs.
Sales of our products, including by-products, are recognized in revenue at the point in time when the customer
obtains control of the product. Control is achieved when a product is delivered to the customer, we have the present
right to payment for the product, significant risks and rewards of ownership have transferred to the customer
according to contract terms, and there is no unfulfilled obligation that could affect the customer’s acceptance of
the product. For sales of steelmaking coal and copper, zinc and lead concentrates, control of the product generally
transfers to the customer when an individual shipment parcel is loaded onto a carrier accepted by or directly
32 Teck 2023 Annual Report
contracted by the customer. For sales of refined metals, control of the product transfers to the customer when
the product is loaded onto a carrier specified by the customer.
The majority of our base metal concentrates and refined metals are sold under pricing arrangements where final
prices are determined by quoted market prices in a period subsequent to sale. For these sales, revenue is recognized
based on the estimated consideration to be received at the date of sale with reference to relevant commodity market
prices. Our refined metals are sold under spot or average pricing contracts. For all steelmaking coal sales under
average pricing contracts where pricing is not finalized when revenue is recognized, revenue is recorded based on the
estimated consideration to be received at the date of sale with reference to steelmaking coal price assessments.
Adjustments are made to settlement receivables in subsequent periods based on movements in quoted market
prices or published price assessments (for steelmaking coal) up to the date of final pricing. These pricing
adjustments result in gains in a rising price environment and losses in a declining price environment and are
recorded as other operating income or expense. It should be noted that these effects arise on the sale of
concentrates, as well as on the purchase of concentrates, at our Trail Operations.
The following table outlines our outstanding receivable positions, which were subject to provisional pricing terms
at December 31, 2023 and 2022, respectively.
Outstanding at
December 31, 2023
Outstanding at
December 31, 2022
Volume
Price
Volume
Price
Copper (pounds in millions)
Zinc (pounds in millions)
127
167
US$3.87/lb.
US$1.20/lb.
168
218
US$3.80/lb.
US$1.35/lb.
Steelmaking coal (tonnes in thousands)
504 US$264/tonne
388 US$257/tonne
Our finance expense includes the interest expense on our debt, on advances to QBSA from SMM/SC and on lease
liabilities, letters of credit and standby fees, interest on our pension obligations, and accretion on our decommissioning
and restoration provisions, less any interest that we capitalize against the cost of our development projects. Our
finance expense of $274 million in 2023 increased by $71 million compared to 2022, primarily due to higher accretion
for our decommissioning and restoration provision.
We expect our quarterly finance expense to increase beginning in the first quarter of 2024 compared to 2023, as the
capitalization of interest relating to the development of QB2 will decrease significantly. We will continue to capitalize
interest on the port offshore facilities through completion of that area of the QB2 project.
Non-operating income (expense) includes items that arise from financial and other matters, and includes such items
as foreign exchange gains or losses, debt refinancing costs, gains or losses on the revaluation of debt prepayment
options, and gains or losses on the sale of investments.
In 2023, non-operating expenses included $156 million of expenses associated with QB2 variable consideration to
IMSA and ENAMI. Of the $156 million, $152 million was due to the revaluation of the financial liability for the preferential
dividend stream related to ENAMI's interest in QBSA, which is most significantly affected by copper prices and the
interest rate on the subordinated loans provided by us and SMM/SC to QBSA, which affects the timing of when QBSA
repays the loans. The remaining $4 million of expense relates to a derivative financial liability that arose from our 2018
acquisition of an additional 13.5% interest in QBSA through the purchase of IMSA, a private Chilean company and
former QBSA shareholder. The purchase price at the date of acquisition included additional amounts that may become
payable to the extent that average copper prices exceed US$3.15 per pound in each of the first three years following
commencement of commercial production, as defined in the acquisition agreement, up to a cumulative maximum of
US$100 million if commencement of commercial production occurs prior to January 21, 2024, or up to a lesser
maximum in certain circumstances thereafter.
In 2022, non-operating expenses included a $58 million loss on the purchase of US$743 million aggregate principal
amount of our outstanding notes during 2022 and $188 million of expenses associated with QB2 variable consideration
to IMSA and ENAMI. Of the $188 million, $183 million was due to the revaluation of the financial liability for the preferential
Management’s Discussion and Analysis
33
dividend stream related to ENAMI's interest in QBSA, as outlined above. The remaining $5 million of expense relates to
a derivative financial liability that arose from our 2018 acquisition of an additional 13.5% interest in QBSA.
In 2021, non-operating expenses included $141 million of expenses associated with QB2 variable consideration owing to a
former owner and to a holder of a carried interest. Of the $141 million, $44 million was due to the revaluation of the financial
liability for the preferential dividend stream related to ENAMI's interest in QBSA. The remaining $97 million of expense relates
to a derivative financial liability that arose from our 2018 acquisition of an additional 13.5% interest in QBSA.
Income Taxes
Provision for income and resource taxes was $1.6 billion, or 41% of pre-tax profit. Our effective tax rate is higher than
the Canadian statutory income tax rate of 27% due generally to resource taxes and higher taxes in some foreign
jurisdictions. This year, we recorded a one-time deferred tax charge of $106 million arising from the enactment of
the new Chilean two-tiered mining royalty regime, which added 3% to our overall tax rate.
The new Chilean mining royalty regime consists of a flat 1% ad valorem component applicable to copper revenues
and a profit-based component based on rates ranging from 8% to 26%, determined in reference to mining margin
percentage, applicable to adjusted operating profits. The amount of the profit-based royalty is capped so that the
overall effective tax rate does not exceed 46.5% as computed in reference to the sum of the ad valorem and
profit-based components of the royalty, corporate income tax and imputed withholding tax in relation to adjusted
operating profits. Due to the tax stability agreements we have in place with the Chilean government for Carmen de
Andacollo and Quebrada Blanca, we will continue to be subject to the current Specific Mining Tax regime until the
end of 2027 and 2037, respectively, before we are subject to the new mining royalty regime.
We are subject to, and pay, income and resource taxes in all jurisdictions that we operate in. Previously deferred Canadian
income taxes associated with our Canadian steelmaking coal and copper operations in 2022 of approximately $625 million
and final taxes associated with our 2023 earnings of approximately $590 million are payable at the end of February 2024.
Our effective tax rate is sensitive to a variety of factors including the ramp-up of QB2, certain corporate and finance
expenses that are not deductible for resource tax purposes, the relative amount of operating margins and effective
tax rates in the various jurisdictions in which we operate, and various other factors. We expect our 2024 effective tax
rate, excluding the impact of the sale of our steelmaking coal business and other corporate items, to be between
41% and 43%. The increase in our expected effective tax rate from 37% to 39% to 41% to 43% is due to increased
exposure to higher Chilean royalties, expensing rather than capitalizing financing costs at QB2, and increased
corporate general and administration expense relative to our expected net income before tax due to the sale of our
steelmaking coal business. As such, our 2024 effective tax rate will be significantly impacted by the sale of the
steelmaking coal business to Glencore due to the accrual of capital gains tax arising on the sale transaction and
upon presentation of the steelmaking coal earnings in discontinued operations, at the time that occurs.
Discontinued Operation
On October 26, 2022, we announced an agreement to sell our 21.3% interest in the Fort Hills Energy Limited Partnership
(Fort Hills) and associated downstream assets to Suncor. Subsequently, TotalEnergies exercised its right of first refusal to
purchase a proportional share of our interest in Fort Hills. On February 2, 2023, this transaction closed and we received
aggregate gross proceeds of approximately $1 billion in cash. There was no current income tax payable on the disposal.
Based on the consideration of $1 billion in cash and other contractual adjustments relating to the sale of our interest
in Fort Hills, we recorded a non-cash pre-tax impairment of $1.2 billion (after-tax $961 million) as at December 31, 2022.
As part of the sale, we agreed to make scheduled payments to Suncor over the remaining term of the downstream contract in
order to reduce the impact of certain pipeline tolls payable under that downstream contract indirectly assumed by Suncor.
Results from our interest in Fort Hills have been classified as discontinued operations and assets held for sale
beginning in the fourth quarter of 2022.
In 2022, we incurred a $772 million loss from the discontinued operation compared with a $255 million loss in 2021.
Western Canadian Select (WCS) prices at Hardisty, Alberta averaged US$76.02 per barrel in 2022 compared with
US$54.87 per barrel in 2021. Our 21.3% share of bitumen production from Fort Hills in 2022 was 33,491 barrels per
day, compared with 19,935 barrels per day in 2021. The bitumen production in 2022 was higher than the previous
year due to two-train production ramp-up in December 2021.
34 Teck 2023 Annual Report
Transactions
Sale of Steelmaking Coal Business
On November 13, 2023, we announced the full sale of EVR for an implied enterprise value of US$9.0 billion, with a majority
stake to be sold to Glencore and a minority stake to be sold to NSC. Glencore has agreed to acquire a 77% interest in EVR
for US$6.9 billion in cash, payable to Teck on closing and subject to customary closing adjustments. NSC agreed to
acquire a 20% interest in EVR in exchange for its 2.5% interest in Elkview Operations plus US$1.3 billion in cash paid at
closing to Teck and US$0.4 billion paid subsequently to Teck out of cash flows from EVR. Teck will continue to operate
the steelmaking coal business and will retain all cash flows from EVR until closing of the Glencore transaction.
Closing of the transaction with Glencore is subject to the satisfaction of customary conditions, including receipt of
regulatory approvals, which are underway. While closing could occur earlier, it is expected no later than the third quarter
of 2024. Closing of the sale of the minority interest in EVR to NSC occurred on January 3, 2024 and cash proceeds of
US$1.3 billion were received. Also, on January 3, 2024, POSCO exchanged its 2.5% interest in Elkview Operations and its
20% interest in the Greenhills joint venture, for a 3% interest in EVR.
Following the closing of that transaction, Teck will have no further financial interest in EVR.
San Nicolás Arrangement
On April 6, 2023, we closed the transaction with Agnico Eagle Mines Limited (Agnico Eagle), forming a 50:50 joint
arrangement to advance the San Nicolás copper-zinc development project located in Zacatecas, Mexico. Agnico Eagle
has agreed to subscribe for a 50% interest in San Nicolás for US$580 million, to be contributed as study and
development costs are incurred by San Nicolás.
We concluded that San Nicolás is a joint operation where we share joint control with Agnico Eagle due to the key facts
that Teck and Agnico Eagle are obligated for their share of the outputs of the arrangement, and that Teck and Agnico
Eagle are required to fund their respective share of cash flows to the arrangement. We account for our interest in the joint
operation by recording our share of the respective assets, liabilities, revenue and expenses, and cash flows. As
contributions are made by Agnico Eagle to San Nicolás, their incremental contributions will result in an increase in their
share ownership and a reduction in our share ownership until Agnico Eagle has achieved a 50% interest in San Nicolás. At
December 31, 2023, we had 91% of share ownership and Agnico Eagle had 9%.
We recognized a gain of $5 million in other operating income (expense), attributable to Agnico Eagle's initial subscription
and incremental contributions, totalling an aggregate of 9% of the project during 2023.
Quintette Sale Transaction
On February 16, 2023, we closed the transaction with Conuma Resources Limited (Conuma) to sell all the assets and
liabilities of the Quintette steelmaking coal mine in northeastern British Columbia. In exchange for the sale of the Quintette
steelmaking coal mine, Conuma has agreed to pay in cash $120 million of staged payments over 36 months and an
ongoing 25% net profits interest royalty, first payable after Conuma recovers its initial construction investments in Quintette.
We accounted for this transaction by recognizing:
· Cash of $30 million related to a non-refundable deposit and cash received upon closing
· A financial receivable of $69 million recorded as part of financial and other assets, which reflects the fair value of the
staged payments at the close of the transaction
· A mineral interest royalty in the amount of $200 million recorded as part of property, plant and equipment that is a non-
cash investing transaction and reflects the fair value of the royalty interest on closing of the transaction; the key facts and
circumstances that resulted in concluding the royalty should be accounted for as a mineral interest were the alignment of
cash flow risks and returns with the existing mine plan and that payments will only occur during the life of the mine
We recognized a pre-tax gain of approximately $75 million ($50 million after-tax) in other operating income (expense)
upon closing of this transaction.
Management’s Discussion and Analysis
35
Mesaba Arrangement
On February 15, 2023, we closed the transaction with PolyMet Mining Corp. (PolyMet), forming a 50:50 joint arrangement
to advance PolyMet's NorthMet project and Teck's Mesaba mineral deposit. The joint arrangement is held and operated
through a new entity named NewRange Copper Nickel LLC (NewRange).
We concluded that NewRange is a joint operation where we share joint control with PolyMet due to the key facts that
Teck and PolyMet are obligated for their share of the outputs of the arrangement, and that Teck and PolyMet are required
to fund their respective share of cash flows to the arrangement. We account for our interest in the joint operation by
recording our share of the respective assets, liabilities, revenue and expenses, and cash flows.
We concluded that both parties contributed groups of assets that do not constitute businesses in the formation of the
NewRange joint operation, and we recorded $232 million of property, plant and equipment and $16 million of intangibles
in a non-cash investing transaction. We have measured the fair value of the assets and liabilities contributed by PolyMet
through reference to market share price data, adjusted for transaction-specific factors, which is classified as a Level 3
measurement within the fair value measurement hierarchy.
We recognized a pre-tax gain of approximately $191 million ($142 million after-tax) in other operating income (expense)
upon closing of this transaction. The gain was determined by calculating 50% of the fair value of the NorthMet project
contributed by PolyMet, less 50% of the carrying value of the Mesaba mineral deposit contributed by Teck.
Fort Hills Sale Transaction
On February 2, 2023, we completed the sale of our 21.3% interest in Fort Hills and associated downstream assets to
Suncor Energy Inc. (Suncor) and TotalEnergies EP Canada Ltd. (TEPCA). TEPCA had exercised its right of first refusal to
purchase its proportionate share of our Fort Hills interest.
We have accounted for this transaction by recognizing:
· Aggregate cash proceeds of approximately $1 billion from Suncor and TEPCA
· A financial liability estimated at $269 million on closing. The current portion of $26 million was recorded as part of trade
accounts payable and other liabilities. The non-current portion of $243 million was recorded as part of provisions and other
liabilities. This financial liability is related to the remaining term of a downstream pipeline take-or-pay toll commitment.
We recognized a loss of approximately $8 million upon closing of this transaction, which was presented in loss from
discontinued operations.
During 2022, we recorded a non-cash, pre-tax asset impairment of $1.2 billion (after-tax $961 million) as a result of the
announced sale of our interest in Fort Hills.
Financial Position and Liquidity
Our liquidity remained strong at $6.0 billion as at December 31, 2023, including $744 million of cash. At December 31,
2023, the principal balance of our term notes was US$2.5 billion and we maintained a US$4.0 billion undrawn revolving
credit facility. As at December 31, 2023, our US$2.5 billion QB2 project financing facility had a balance of US$2.2 billion
after two payments of US$147 million were made during 2023. As at December 31, 2023, Antamina’s US$1.0 billion loan
facility agreement, of which our 22.5% share is US$225 million, was fully drawn.
Our US$4.0 billion sustainability-linked revolving credit facility involves pricing adjustments that are aligned with our
sustainability performance and strategy, and has a maturity to October 2026. Our sustainability performance over the
term of the facility is measured by greenhouse gas intensity, the percentage of women in Teck’s workforce, and safety.
At December 31, 2023, our US$4.0 billion facility was undrawn.
Quebrada Blanca (QBSA) entered into a contract with Transelec S.A. to lease an electrical power transmission system
to connect the QB2 project with the Chilean national power grid. In the fourth quarter, the Chilean National Electric
Coordinator issued the certificate that approves the entry into operation for the transmission system, leading to the
commencement date of the lease. The lease requires QBSA to pay approximately US$22 million per year, escalating by
36 Teck 2023 Annual Report
2.2% annually. On initial recognition of the lease in the fourth quarter, we recorded a lease liability of approximately
US$324 million, with a corresponding right-of-use asset.
Our outstanding debt was $7.6 billion at December 31, 2023, compared with $7.7 billion at the end of 2022 and $8.1 billion
at the end of 2021. The decrease in 2023 is due to the redemption of the 3.75% notes due in 2023 of US$108 million, the
two semi-annual repayments of US$147 million on the QB2 project financing and the strengthening of the Canadian
dollar, partially offset by draws on the loan entered into at Carmen de Andacollo and the Transelec lease, noted above.
We maintain investment grade ratings of Baa3, BBB-, and BBB- with stable outlooks from Moody’s, S&P, and Fitch
respectively.
Our debt positions and credit ratios are summarized in the following table:
December 31, December 31, December 31,
2021
2022
2023
Term notes
$
2,470
$
2,585
$
QB2 US$2.5 billion limited recourse project finance facility
2,206
2,500
Lease liabilities
Carmen de Andacollo short-term loans
Antamina credit facilities
Less unamortized fees and discounts
Debt (US$ in millions)
Debt (Canadian $ equivalent)1
Less cash balances
Net debt2 (A)
Equity (B)
Net-debt to net-debt-plus-equity ratio2 (A/(A+B))
Net-debt to adjusted EBITDA ratio2
Weighted average coupon rate on the term notes
802
95
225
(56)
422
52
225
(71)
3,478
2,252
547
–
176
(89)
$
5,742
$
5,713
$
6,364
7,595
(744)
$
6,851
$
28,292
$
$
19%
1.1x
5.4%
7,738
(1,883)
5,855
26,511
18%
0.6x
5.3%
$
$
8,068
(1,427)
6,641
23,773
22%
1.0x
5.5%
Notes:
1. Translated at period end exchange rates.
2. This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
At December 31, 2023, the weighted average maturity of our term notes is approximately 14.7 years and the weighted
average coupon rate is approximately 5.4%.
Cash flow from operations was $4.1 billion in 2023, which was reduced by a buildup of working capital items in the year
of $1.0 billion. Our cash position decreased from $1.9 billion at the end of 2022 to $744 million at December 31, 2023.
Significant outflows included $4.7 billion of capital expenditures, primarily related to QB2, $1.1 billion of capitalized
stripping costs, $515 million of dividends, $250 million of share buybacks and $753 million of interest and finance
charges, primarily on our outstanding debt. Significant inflows during 2023 included $1.3 billion of QB2 advances from
SMM/SC, and cash proceeds of approximately $1.0 billion from the sale of our 21.3% interest in Fort Hills.
We maintain various committed and uncommitted credit facilities for liquidity and for the issuance of letters of credit,
including a US$4.0 billion sustainability-linked facility, which was undrawn as at December 31, 2023.
Borrowing under our primary committed revolving credit facility is subject to our compliance with the covenants in
the agreement and our ability to make certain representations and warranties at the time of the borrowing request.
Our US$4.0 billion sustainability-linked facility does not contain an earnings or cash flow-based financial covenant,
a credit rating trigger or a general material adverse borrowing condition. The only financial covenant under our credit
agreements is a requirement for our net debt to capitalization ratio not to exceed 60%. That ratio was 20% at
December 31, 2023.
Management’s Discussion and Analysis
37
In addition to our US$4.0 billion sustainability-linked facility, we maintain uncommitted bilateral credit facilities
primarily for the issuance of letters of credit to support our future reclamation obligations. At December 31, 2023,
we had $2.6 billion of letters of credit outstanding. We also had $1.2 billion in surety bonds outstanding at
December 31, 2023, mostly to support current and future reclamation obligations.
Under the terms of the silver streaming agreement relating to Antamina, if there is an event of default under the
agreement or Teck insolvency, Teck Base Metals Ltd., our subsidiary that holds our interest in Antamina, is restricted
from paying dividends or making other distributions to Teck to the extent that there are unpaid amounts under the
agreement. In addition, the QB2 project finance arrangements include customary restrictions on the payment of
dividends and other distributions from the project company until project completion has been achieved; such
distributions are also subject to compliance with certain other conditions.
Early repayment of borrowings under our US$4.0 billion credit facility, outstanding public debt and the QB2 project
finance arrangements may be required if an event of default under the relevant agreement occurs. In addition, we are
required to offer to repay indebtedness outstanding under our revolving credit facility and certain of our public debt in
the event of a change of control, as determined under the relevant agreements.
Capital Allocation Framework
Our capital allocation framework describes how we allocate funds to sustaining and growth capital, maintaining solid
investment grade credit metrics and returning excess cash to shareholders. This framework reflects our intention to
make additional returns to shareholders by supplementing our base dividend with at least an additional 30% of
available cash flow after certain other repayments and expenditures have been made. For this purpose, we define
available cash flow (ACF) as cash flow from operating activities after interest and finance charges, lease payments
and distributions to non-controlling interests less: (i) sustaining capital and capitalized stripping; (ii) committed growth
capital; (iii) any cash required to adjust the capital structure to maintain solid investment grade credit metrics; (iv) our
base $0.50 per share annual dividend; and (v) any share repurchases executed under our annual buyback authorization.
Proceeds from any asset sales may also be used to supplement available cash flow. Any additional cash returns
may be made through share repurchases and/or supplemental dividends depending on market conditions at the
relevant time.
Our results can be highly variable, as they are dependent on commodity prices and various other factors. Investors
should not assume that there will be available cash or any supplemental returns in any given year. In 2023, we returned
cash to shareholders through dividends and share buybacks. We paid dividends of $515 million in 2023, comprised of a
$250 million supplemental dividend and $265 million of base dividends. We also returned $250 million during 2023
through the purchase of our Class B subordinate voting shares. Since 2019, we have returned $3.9 billion to shareholders,
including $2.5 billion of Class B subordinate voting share buybacks.
On February 21, 2024, the Board authorized up to a $500 million share buyback, and approved the payment of our
quarterly base dividend of $0.125 per share payable on March 28, 2024 to shareholders of record on March 15, 2024.
Additional buybacks will be considered regularly in the context of market conditions.
Operating Cash Flow
Cash flow from operations was $4.1 billion in 2023, compared with $8.0 billion in 2022 and $4.7 billion in 2021. The
decrease in 2023, compared with 2022, was primarily due to the substantial decrease in steelmaking coal prices and a
buildup of working capital items, and partly due to lower zinc prices and higher operating costs across our operations.
The increase in 2022, as compared to 2021, was primarily due to higher prices for our principal products, especially
steelmaking coal.
Changes in working items resulted in a use of cash of $1.0 billion in 2023 compared with $107 million in 2022. In 2023,
there was a buildup of trade receivables, primarily at our steelmaking coal operations, as a result of substantially
higher sales volumes and the timing of those sales in the fourth quarter. In addition, there was an increase in supplies
inventories at QB as a result of the ramp-up of operations, and across our other operations, reflecting inflationary cost
pressures on consumables.
38 Teck 2023 Annual Report
Investing Activities
Expenditures on property, plant and equipment were $4.7 billion in 2023, including $2.2 billion on the QB2 project,
$665 million for QB2 ramp-up capital and $1.4 billion on sustaining capital. The largest component of sustaining
capital expenditures was $778 million at our steelmaking coal operations.
Capitalized production stripping costs were $1.1 billion in 2023 compared with $1.0 billion in 2022. The majority of
these costs are associated with the advancement of pits for future production at our steelmaking coal operations.
Capital expenditures for 2023 are summarized in the table on page 45.
Expenditures on investments in 2023 were $137 million and included $77 million for intangible and other assets, and
$45 million for marketable securities.
In February 2023, we received cash proceeds of approximately $1.0 billion from the sale of our 21.3% interest in
Fort Hills. Cash proceeds from the sale of assets and investments were $162 million in 2023, $113 million in 2022
and $54 million in 2021.
Financing Activities
In 2023, debt proceeds totalled $230 million, while debt repayments totalled $710 million. Debt proceeds primarily
related to short-term loans at our Carmen de Andacollo Operations. Debt repayments included the redemption of the
3.75% notes at maturity for US$108 million, the first and second semi-annual repayments of US$147 million of the QB2
project financing facility made on June 15, 2023 and December 15, 2023, and repayments of our short-term loans at
our Carmen de Andacollo Operations.
In 2022, debt proceeds totalled $569 million, while debt repayments totalled $1.3 billion. Debt proceeds in 2022
included $315 million drawdown on the US$2.5 billion limited recourse project financing facility to fund the
development of the QB2 project. The facility was fully drawn in April 2022. Debt proceeds also included $63 million
final drawdown on Antamina's loan agreement. The loan agreement was fully drawn during the first quarter of 2022,
with our share being US$225 million. Debt repayments in 2022 included the redemption of our US$150 million 4.75%
note for $187 million and the purchase of US$650 million of our public notes in a waterfall tender for $892 million.
In 2021, debt proceeds totalled $1.6 billion, while debt repayments totalled $155 million. We also repaid $335 million,
net, on our revolving credit facility during the year. Debt proceeds included a drawdown of $1.4 billion on the
US$2.5 billion limited recourse project financing facility to fund the development of the QB2 project. Antamina
entered into a US$1.0 billion loan agreement during 2021. As at December 31, 2021, our share of the amount drawn
was US$158 million, which is included in our debt proceeds for the year.
During 2023, we paid $515 million in respect of our regular annual base dividend of $0.50 per share or $265 million and
an additional one-time supplemental dividend of $0.50 per share or $250 million.
In 2023, we purchased and cancelled approximately 4.7 million Class B shares at a cost of $250 million under our
normal course issuer bid.
Management’s Discussion and Analysis
39
Quarterly Profit and Cash Flow
($ in millions except per share data)
2023
2022
Revenue
Gross profit
Profit (loss) attributable
to shareholders
Basic earnings (loss)
per share
Diluted earnings (loss)
per share
Cash flow from operations
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
$ 4,108 $ 3,599 $ 3,519 $ 3,785
$ 1,236 $ 831 $ 1,410 $ 1,666
$ 3,140 $ 4,260 $ 5,300 $ 4,616
$ 1,154 $ 1,797 $ 3,142 $ 2,478
$ 483 $ 276 $ 510 $ 1,140
$ 266 $
(195) $ 1,675 $ 1,571
$ 0.93 $ 0.53 $ 0.98 $ 2.22
$ 0.52 $
(0.37) $ 3.12 $ 2.93
$ 0.92 $ 0.52 $ 0.97 $ 2.18
736 $ 1,130 $ 1,092
$ 1,126 $
(0.37) $ 3.07 $ 2.87
$ 0.51 $
$ 930 $ 1,809 $ 2,921 $ 2,323
Gross profit from our copper business unit decreased to $81 million in the fourth quarter compared with $248 million
a year ago. The decline in gross profit was primarily due to elevated operating costs at QB as production ramp-up
continued in the fourth quarter. QB was operating near design throughput capacity at the end of 2023.
Record copper production of 103,400 tonnes was achieved in the fourth quarter, which was 58% higher than a year ago.
The increase was driven by the ramp-up of QB leading to 34,300 tonnes of copper in concentrate production, higher
production from Highland Valley Copper as a result of increased mill throughput, and higher production from Antamina
due to higher grades.
Gross profit from our zinc business unit increased to $71 million in the fourth quarter compared with $57 million a year
ago. Improved results from our Trail Operations as a result of returning to full production rates and the benefit of higher
contracted zinc premiums, were largely offset by an 18% decrease in realized zinc prices and higher operating costs at
our Red Dog Operations.
At our Red Dog Operations, zinc production in the fourth quarter increased by 30% from a year ago to 155,300 tonnes,
while lead production increased by 41% to 25,400 tonnes; both were driven by higher mill throughput and grades.
At our Trail Operations, production volumes of refined zinc and lead were substantially higher than a year ago, as
production last year was impacted by planned major asset renewal activities in both the zinc and lead circuits.
Gross profit in the fourth quarter from our steelmaking coal business unit increased to $1.1 billion compared with $849 million
a year ago primarily due to higher sales volumes, partially offset by lower steelmaking coal prices. Realized steelmaking coal
prices averaged US$270 per tonne in the fourth quarter compared to US$278 per tonne in the same period a year ago.
Fourth quarter sales volumes of 6.1 million tonnes were near the top end of our previously disclosed guidance of 5.8
to 6.2 million tonnes, driven by production rates in the quarter and supported by strong logistics performance. Sales
volumes in the fourth quarter were significantly higher than the 4.3 million tonnes in the same period last year. Overall
plant reliability and performance were strong in the fourth quarter, supported by a plant improvement initiative, which
continues to show positive results.
In the fourth quarter, profit from continuing operations attributable to shareholders was $483 million or $0.93 per share
compared to $247 million or $0.48 per share in the same period last year. The increase compared with a year ago is
primarily due to an increase in steelmaking coal sales volumes. These increases were partially offset by lower
steelmaking coal and zinc prices, and higher unit costs across our operations, including elevated costs at QB as
production ramp-up continues.
Cash flow from operations in the fourth quarter was $1.1 billion compared with $930 million a year ago. The increased
cash flow reflects an increase in profit attributable to shareholders primarily due to higher steelmaking coal sales volumes.
40 Teck 2023 Annual Report
During the fourth quarter, changes in working capital items resulted in a use of cash of $184 million as result of a
buildup of trade receivables at our steelmaking coal operations and at QB, reflecting the ramp-up of the operation.
This compares with a use of cash of $154 million a year ago, when there was a buildup of steelmaking coal production
inventories and an increase in supply inventories at QB.
Outlook
The sales of our products are denominated in U.S. dollars, while a significant portion of our expenses and capital
expenditures are incurred in local currencies, particularly the Canadian dollar and the Chilean peso. Foreign exchange
fluctuations can have a significant effect on our capital costs and operating margins, unless such fluctuations are
offset by related changes to commodity prices.
Our U.S. dollar denominated debt is subject to revaluation based on changes in the Canadian/U.S. dollar exchange
rate. As at December 31, 2023, approximately US$2.3 billion of our U.S. dollar denominated debt is designated as a
hedge against our foreign operations that have a U.S. dollar functional currency. As a result, any foreign exchange
gains or losses arising on that amount of our U.S. dollar debt are recorded in other comprehensive income, with the
remainder being charged to profit.
Commodity markets are volatile. Prices can change rapidly and customers can alter shipment plans. This can have a
substantial effect on our business and financial results. Continued uncertainty in global markets arising from the
macroeconomic outlook and government policy changes, including tariffs and the potential for trade disputes, may
have a significant positive or negative effect on the prices of the various products we produce.
We remain confident in the longer-term outlook for our major commodities; however, ongoing uncertainty related to
global economic growth, current geopolitical uncertainty, and the potential impact of monetary policy aimed at curtailing
inflation in various jurisdictions, as well as any potential resurgence of COVID-19 may have on demand and prices for our
commodities, on our suppliers and employees, and on global financial markets in the future, which could be material.
As a result of the announcement of the sale of our steelmaking coal business as previously described in this document,
the following describes the effect that the completion of the transaction is expected to have on our financial condition,
financial performance and cash flow from operations.
We expect our cash position and liquidity will increase significantly upon closing of the Glencore transaction. The increase
in our cash position and liquidity is expected to enable us to balance investment in copper growth, with debt reductions,
and a higher cash balance, and consideration of further returns to shareholders, aligned with our Capital Allocation
Framework.
The closing of the transaction is expected to result in a reduction in our revenue, gross profit, EBITDA1 and cash flow from
operations relative to prior years, particularly while the ramp-up continues at our expanded QB operations.
We expect our net assets on our balance sheet to remain similar upon the closing of the transaction, as the removal of the
assets and liabilities of our steelmaking coal business unit will be offset by the cash proceeds received from the
transaction. We expect our results to be less sensitive to the Canadian/U.S. dollar exchange rate. Substantially all of the
sales from our steelmaking coal business are in U.S. dollars, whereas substantially all of the operating expenses in our
steelmaking coal business are in Canadian dollars.
Additional information about the risks related to the transaction are available in our Annual Information Form for the year
ended December 31, 2023, filed under our profile at www.sedarplus.ca.
Commodity Prices and Sensitivities
Commodity prices are a key driver of our profit and cash flows. On the supply side, the depleting nature of ore reserves,
difficulties in finding new orebodies, the permitting processes and the availability of skilled resources to develop projects,
as well as infrastructure constraints, political risk and significant cost inflation, may continue to have a moderating
effect on the growth in future production for the industry as a whole.
1 This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
Management’s Discussion and Analysis
41
The sensitivity of our annual profit attributable to shareholders and EBITDA to changes in the Canadian/U.S. dollar exchange
rates and commodity prices, before pricing adjustments, based on our current balance sheet, our expected 2024 mid-range
production estimates, current commodity prices and a Canadian/U.S. dollar exchange rate of $1.30 is as follows:
2024
Mid-Range
Production
Estimates1
Estimated Effect
of Change On
Profit (Loss)
Attributable to
Shareholders2
($ in millions)
Change
CAD$0.01
502.5
US$0.01/lb.
880.0
US$0.01/lb.
25.0
US$1/tonne
US$1/bbl
$
$
$
$
$
63
7
8
14
3
Estimated
Effect on
EBITDA2,5
($ in millions)
$
$
$
$
$
110
13
11
29
5
US$ exchange
Copper (000’s tonnes)
Zinc (000’s tonnes)3
Steelmaking coal (million tonnes)
WTI4
Notes:
1. All production estimates are subject to change based on market and operating conditions.
2. The effect on our profit (loss) attributable to shareholders and on EBITDA of commodity price and exchange rate movements will vary from quarter
to quarter depending on sales volumes. Our estimate of the sensitivity of profit and EBITDA to changes in the U.S. dollar exchange rate is sensitive
to commodity price assumptions.
3. Zinc includes 282,500 tonnes of refined zinc and 597,500 tonnes of zinc contained in concentrate.
4. Our WTI oil price sensitivity takes into account the change in operating costs across our business units, as our operations use a significant amount of diesel fuel.
5. This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
Guidance
Our guidance for 2024 is unchanged from our guidance released on January 15, 2024. The guidance ranges below
reflect our operating plans, which include known risks and uncertainties. Events such as extreme weather, unplanned
operational shutdowns and other disruptions could impact actual results beyond these estimates. Our unit costs are
calculated based on production volumes and any variances from estimated production ranges will impact unit costs.
We have included range-based guidance for all categories of guidance disclosed and have provided further annual
detail for our three-year production guidance to outline expected production fluctuations within that period.
Annual 2024 guidance and three-year production guidance has been provided for our steelmaking coal business. The guidance
is on a 100% basis and reflects the exchange of minority interests by NSC of 2.5% in Elkview Operations and by POSCO of 2.5%
in Elkview Operations and 20% in the Greenhills joint venture, as previously described. Therefore, our reported production and
sales statistics will increase from 80% to 100% for Greenhills effective January 3, 2024. Our reported production and sales
statistics for Elkview Operations will continue to be reported on a 100% basis, consistent with our past reported presentation.
We will include 100% of production and sales from the EVR operations in our production and sales volumes, even
though we own 77% of EVR, because we will fully consolidate (100%) EVR results in our financial statements. Our
revenue, gross profit, and EBITDA1 will be on a 100% basis reflecting the fully consolidated results of EVR. Our profit
(loss) attributable to shareholders will reflect our 77% ownership of EVR’s results, as 23% of EVR’s results will be
attributable to non-controlling interests reflecting NSC’s (20%) and POSCO’s (3%) ownership of EVR.
We remain highly focused on managing our controllable operating expenditures. However, in line with the broader mining
industry, we continue to face inflationary cost pressures across our business, which have increased our operating costs
and capital expenditure compared to prior years. While our underlying key mining drivers such as strip ratios and haul
distances remain relatively stable, inflationary pressures on key input costs are expected to persist through 2024.
Pressures on the cost of certain key supplies, including mining equipment, labour and contractors, as well as energy
costs in Chile and changing diesel prices, are reflected in our capital expenditure and annual unit cost guidance for 2024.
Production Guidance
Total copper production in 2024 is expected to significantly increase to between 465,000 and 540,000 tonnes compared
to the 296,500 tonnes produced in 2023. The increase is driven by higher annual production at QB and Highland Valley
Copper. QB will focus on reliability, consistency and increased availability and we expect to produce between 230,000 and
1 This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
42 Teck 2023 Annual Report
275,000 tonnes in 2024. This is slightly lower than our previous three-year production guidance, as that guidance assumed
all typical ramp-up reliability issues would be addressed in 2023. Due to the delay in construction, some of these issues are
expected to be resolved in the first half of 2024. At Highland Valley Copper, production is expected to increase in 2024 as
we move into the Lornex pit, which is higher grades, and as a result of improved mill availability.
Total zinc in concentrate production in 2024, including co-product zinc production from Antamina (22.5%), is expected to
be between 565,000 and 630,000 tonnes compared to 644,000 tonnes in 2023. This decrease is driven by Antamina's
mine plan, as the ore processed in 2024 delivers higher copper production and lower zinc production compared to that of
2023. We expect lead production from Red Dog to be in the range of 90,000 to 105,000 tonnes in 2024. In 2024, we expect
Trail Operations to produce between 275,000 and 290,000 tonnes of refined zinc. Refined lead and silver production at
Trail are expected to be similar to prior years, but will fluctuate as a result of concentrate feed source optimization.
Our steelmaking coal production in 2024 is expected to be between 24.0 and 26.0 million tonnes compared to 23.7 million
tonnes produced in 2023. Production is expected to remain at these levels throughout 2025 to 2027.
Production Guidance
The table below shows our share of production of our principal products for 2023, our guidance for production in
2024 and our guidance for production for the following three years.
Units in thousand tonnes (excluding
steelmaking coal)
2023
2024
Guidance
2025
Guidance
2026
Guidance
2027
Guidance
Principal Products
Copper1,2,3
Quebrada Blanca
Highland Valley Copper
Antamina
Carmen de Andacollo
Zinc1,2,4
Red Dog
Antamina
Refined zinc
Trail Operations
62.8
98.8
95.3
39.6
230 – 275
112 – 125
85 – 95
38 – 45
280 – 310
140 – 160
80 – 90
50 - 60
280 - 310
130 – 150
90 – 100
50 – 60
280 - 310
120 - 140
85 - 95
45 - 55
296.5
465 - 540
550 - 620
550 - 620
530 - 600
539.8
104.2
644.0
520 – 570
45 – 60
460 - 510
95 – 105
410 – 460
55 – 65
365 - 400
35 – 45
565 – 630
555 – 615
465 - 525
400 – 445
266.6
275 – 290
270 – 300
270 – 300
270 – 300
Steelmaking coal (million tonnes)
23.7
24.0 – 26.0
24.0 – 26.0
24.0 - 26.0
24.0 - 26.0
Other Products
Lead1
Red Dog
Molybdenum1,2
Quebrada Blanca
Highland Valley Copper
Antamina
93.4
90 – 105
80 – 90
80 – 90
65 - 75
–
0.6
0.8
1.4
2.9 – 3.6
1.3 – 1.6
1.2 – 1.5
5.0 – 6.4
1.8 – 2.3
0.7 – 1.0
6.4 – 7.6
2.3 – 2.8
0.7 – 1.0
7.0 – 8.0
2.7 – 3.2
0.9 – 1.2
5.4 – 6.7
7.5 – 9.7
9.4 – 11.4
10.6 - 12.4
Notes:
1. Metal contained in concentrate.
2. We include 100% of production and sales from our Quebrada Blanca and Carmen de Andacollo mines in our production and sales volumes, even
though we do not own 100% of these operations, because we fully consolidate their results in our financial statements. We include 22.5% of
production and sales from Antamina, representing our proportionate ownership interest in this operation.
3. Copper production includes cathode production at Quebrada Blanca and Carmen de Andacollo.
4. Total zinc includes co-product zinc production from our 22.5% proportionate interest in Antamina.
Management’s Discussion and Analysis
43
Sales Guidance
The table below shows our sales of selected products for the last quarter of 2023 and our sales guidance for the first
quarter of 2024 for selected principal products.
Zinc (thousand tonnes)1
Red Dog
Steelmaking coal (million tonnes)
Note:
1. Metal contained in concentrate.
Unit Cost Guidance
Q4
2023
Q1 2024
Guidance
135
6.1
70 – 85
5.9 – 6.3
The table below reports our unit costs for 2023 and our guidance for unit costs for selected products in 2024.
(Per unit costs)
Copper1
Total cash unit costs4 (US$/lb.)
Net cash unit costs3,4 (US$/lb.)
Zinc2
Total cash unit costs4 (US$/lb.)
Net cash unit costs3,4 (US$/lb.)
Steelmaking coal
Adjusted site cost of sales4
Transportation costs
2023
2.27
1.87
0.68
0.55
96
49
2024
Guidance
2.15 – 2.35
1.85 – 2.25
0.70 – 0.80
0.55 – 0.65
95 – 110
47 – 51
Notes:
1. Copper unit costs are reported in U.S. dollars per payable pound of metal contained in concentrate. Copper net cash unit costs include adjusted cash
cost of sales and smelter processing charges, less cash margins for by-products including co-products. Guidance for 2024 assumes a zinc price of
US$1.20 per pound, a molybdenum price of US$21 per pound, a silver price of US$23 per ounce, a gold price of US$1,930 per ounce, a Canadian/U.S.
dollar exchange rate of $1.32 and a Chilean Peso/U.S. dollar exchange rate of 850. 2023 copper unit costs exclude Quebrada Blanca.
2. Zinc unit costs are reported in U.S. dollars per payable pound of metal contained in concentrate. Zinc net cash unit costs are mine costs including
adjusted cash cost of sales and smelter processing charges, less cash margins for by-products. Guidance for 2024 assumes a lead price of US$0.95 per
pound, a silver price of US$23 per ounce and a Canadian/U.S. dollar exchange rate of $1.32. By-products include both by-products and co-products.
3. After co-product and by-product margins.
4. This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
Capital Expenditure Guidance
Our 2024 capital expenditures are expected to significantly decrease from 2023 levels, primarily driven by lower
spending on QB2 development capital, as we near completion of the project.
Sustaining capital expenditure in 2024 is expected to increase marginally above 2023 levels both in our zinc business
unit as we complete boiler repairs at our Trail Operations, and in our steelmaking coal business, as the Elkview
Operations’ administration and maintenance complex project reaches the peak of its execution plan.
Capitalized stripping costs in 2024 are expected to decrease from 2023 levels, which were a notable peak period of capitalized
stripping to advance the development of mine pits to support future production in our steelmaking coal business.
Growth capital, excluding QB2 development capital, is prioritized on our copper growth projects as we focus on
completing feasibility studies, advancing detailed engineering work, project execution planning, and progressing
permitting, particularly at the HVC Mine Life Extension project (previously, HVC2040), San Nicolás and Zafranal. In
addition, we will work to define the most capital-efficient and value-adding pathway for the expansion of QB based on
the performance of the existing asset base. We also expect to continue to progress our medium- to long-term
portfolio options with prudent investments to advance the path to value.
44 Teck 2023 Annual Report
Capital Expenditure Guidance
The table below reports our capital expenditures for 2023 and our guidance for capital expenditure in 2024.
(Teck’s share in $ millions)
Sustaining
Copper1
Zinc
Steelmaking coal2
Corporate
Growth
Copper3 4
Zinc
Steelmaking coal
Total
Copper
Zinc
Steelmaking coal
Corporate
QB2 project capital expenditures
QB2 ramp-up capital expenditures
Total before SMM and SC contributions
Estimated SMM and SC contributions to capital expenditures
$
2023
448
152
778
24
2024
Guidance
$
495 – 550
190 – 210
800 – 1,000
30 – 40
$
1,402
$ 1,515 - 1,800
$
374
70
15
$
400 – 460
100 – 130
–
$
459
$
500 - 590
$
$
$
$
822
222
793
24
1,861
2,152
665
$
895 - 1,010
290 - 340
800 - 1,000
30 - 40
$ 2,015 - 2,390
700 – 900
$
–
4,678
(1,100)
$ 2,715 – 3,290
(270) – (340)
Total, net of partner contributions and project financing
$
3,578
$ 2,445 – 2,950
Notes:
1. Copper sustaining capital includes Quebrada Blanca Operations.
2. Steelmaking coal sustaining capital in 2023 includes $94 million of water treatment capital. 2024 guidance includes $150 to $250 million of water
treatment capital.
3. Excluding QB2 development capital and QB2 ramp-up capital.
4. Copper growth capital guidance includes feasibility studies, advancing detailed engineering work, project execution planning, and progressing
permitting at the HVC Mine Life Extension project, San Nicolás and Zafranal. In addition, we will work to define the most capital-efficient and
value-adding pathway for the expansion of QB based on the performance of the existing asset base. We also expect to continue to progress our
medium-to long-term portfolio options with prudent investments to advance the path to value including for NewRange, Galore Creek, Schaft
Creek and NuevaUnión.
Capital Expenditure Guidance — Capitalized Stripping
(Teck’s share in CAD$ millions)
Capitalized Stripping
Copper
Zinc
Steelmaking coal
$
2023
379
76
649
2024
Guidance
$
255 – 280
65 – 75
550 – 750
$
1,104
$
870 – 1,105
Management’s Discussion and Analysis
45
Other Information
Climate Change and Carbon Pricing
As part of ongoing global efforts to address climate change, regulations to control greenhouse gas emissions continue
to be developed and enhanced in many jurisdictions. Regulatory uncertainty and resulting uncertainty regarding the
costs of technology required to comply with current or anticipated regulations make it difficult to predict the ultimate
costs of compliance. Societal focus on reducing carbon emissions, minimizing climate change and implementing
climate change adaptation measures continues to increase.
The Government of Canada continues to advance climate action initiatives, such as the Canadian Net-Zero Emissions
Accountability Act, which formalizes Canada’s target to achieve net-zero greenhouse gas emissions by 2050 and its
“A Healthy Environment and a Healthy Economy” climate plan to advance actions to achieve Canada’s climate goals,
which includes a proposal to increase the federal price of carbon to $170 per tonne of carbon dioxide-equivalent
(CO2e) by 2030. The Government of Canada also formally submitted Canada’s enhanced Nationally Determined
Contribution to the United Nations, committing Canada to cut its greenhouse gas emissions by 40%-45% below 2005
levels by 2030.
Climate change regulations continue to evolve in most jurisdictions in which we operate, and we expect that regional,
national or international regulations that seek to reduce greenhouse gas emissions will continue to be established or
modified to increase their impact. The cost of progressively reducing our Scope 1 and Scope 2 emissions in accordance
with our publicly stated carbon reduction targets through carbon reduction activities or by acquiring the equivalent
amount of future credits (to the extent permitted by regulation), is a function of several evolving factors, including
technology development and pace of commercialization, the regulatory environment for subsidies and incentives,
and the markets for carbon credits and offsets.
Teck’s Scope 1 and 2 greenhouse gas emissions attributable to our operations for 2023 are estimated to be approximately
3.7 million tonnes of CO2e. The most material indirect Scope 3 emissions associated with our activities relate to the use of
our steelmaking coal by our customers. Based on our 2023 sales volumes, emissions from the use of our steelmaking
coal would have been approximately 70 million tonnes of CO2e.
For 2023, our British Columbia-based operations incurred $114.8 million in British Columbia provincial carbon tax. As a
result of the CleanBC Program for Industry, we received back $21.7 million of the $88.4 million we paid under the British
Columbia provincial carbon tax in 2022, and we expect to receive a similar portion of our 2023 carbon tax payments back
in 2024. In 2023, the Province of British Columbia announced its intention to transition the regulation of industrial
facility GHG emissions from the Carbon Tax Act to an Output-Based Pricing System, beginning on April 1, 2024. Final
details of the Output-Based Pricing System are yet to be released.
We may in the future face similar taxation for our activities in other jurisdictions. Similarly, customers of some of our
products may also be subject to new carbon costs or taxation in the future in the jurisdictions where the products are
ultimately used.
We are taking action to reduce greenhouse gas emissions by improving our energy efficiency and implementing
low-carbon technologies at our operations. In 2020, we announced our target to achieve net-zero Scope 1 and 2
greenhouse gas emissions across our operations by 2050. In 2022, we expanded our existing climate action strategy to
include a new short-term goal to achieve net-zero Scope 2 greenhouse gas emissions by 2025, and an ambition to
achieve net-zero Scope 3 greenhouse gas emissions by 2050. We have also focused on growing our business to
rebalance our portfolio towards copper, which is an essential metal for low-carbon technology and infrastructure,
while continuing to produce the high-quality steelmaking coal required for the low-carbon transition.
We have established a set of actions that progress our decarbonization goals and ambitions. Our objective is to deliver
significant and cost-competitive emissions reductions. We routinely evaluate existing and emerging abatement
opportunities as the pace of low-carbon technology maturation continues to accelerate, and as options that were not
feasible a few years ago approach commercialization.
46 Teck 2023 Annual Report
Financial Instruments and Derivatives
We hold a number of financial instruments, derivatives and contracts containing embedded derivatives, which are
recorded on our consolidated balance sheet at fair value with gains and losses in each period included in other
comprehensive income (loss) in the year and profit for the period on our consolidated statements of income and
consolidated statements of other comprehensive income, as appropriate. The most significant of these instruments
are investments in marketable securities and metal-related forward contracts, including those embedded in our silver
and gold streaming arrangements, QB2 variable consideration to IMSA and settlement receivables. All are subject to
varying rates of taxation, depending on their nature and jurisdiction. Further information about our financial instruments,
derivatives and contracts containing embedded derivatives and associated risks is outlined in Note 31 in our 2023
audited annual consolidated financial statements.
Areas of Judgment and Estimation Uncertainty
In preparing our consolidated financial statements, we make judgments in applying our accounting policies. The
judgments that have the most significant effect on the amounts recognized in our financial statements are outlined
below. In addition, we make assumptions about the future in deriving estimates used in preparing our consolidated
financial statements. We have outlined information below about assumptions and other sources of estimation
uncertainty as at December 31, 2023 that have a risk of resulting in a material adjustment to the carrying amounts of
assets and liabilities within the next year.
a) Areas of Judgment
Assessment of Impairment and Impairment Reversal Indicators
Judgment is required in assessing whether certain factors would be considered an indicator of impairment or
impairment reversal. We consider both internal and external information to determine whether there is an indicator of
impairment or impairment reversal present and, accordingly, whether impairment testing is required. The information
we consider in assessing whether there is an indicator of impairment or impairment reversal includes, but is not limited
to, market transactions for similar assets, commodity prices, treatment charges, zinc premiums, discount rates, foreign
exchange rates, our market capitalization, reserves and resources, mine plans, operating plans and operating results.
As a result of the strengthening of the Canadian dollar against the U.S. dollar affecting the Canadian dollar equivalent
of our expected consideration to be received in the sale of the steelmaking coal business transactions, we performed
an impairment test for our steelmaking coal group of CGUs at December 31, 2023.
In the fourth quarter of 2022, as a result of increased costs and operating challenges at our Trail CGU, we performed
an impairment test for our Trail CGU.
Property, Plant and Equipment – Determination of Available for Use Date
Judgment is required in determining the date that property, plant and equipment is available for use. An asset is
available for use when it is in the location and condition necessary to operate in the manner intended by management.
QB2 consists of property, plant and equipment that become available for use at different dates. When assessing when
these assets are available for use, we consider several factors, the most significant of which are the status of asset
commissioning and whether the assets are capable of operating near design capacity to ensure a reliable and
consistent throughput rate to produce the expected quantity of outputs. The majority of the assets related to QB2
became available for use in December of 2023.
Joint Arrangements
We are a party to a number of arrangements over which we do not have control. Judgment is required in determining whether
joint control over these arrangements exists and, if so, which parties have joint control and whether each arrangement is a
joint venture or a joint operation. In assessing whether we have joint control, we analyze the activities of each arrangement
and determine which activities most significantly affect the returns of the arrangement over its life. These activities are
Management’s Discussion and Analysis
47
determined to be the relevant activities of the arrangement. If unanimous consent is required over the decisions about the
relevant activities, the parties whose consent is required would have joint control over the arrangement. The judgments
around which activities are considered the relevant activities of the arrangement are subject to analysis by each of the parties
to the arrangement and may be interpreted differently. When performing this assessment, we generally consider decisions
about activities such as managing the asset while it is being designed, developed and constructed, during its operating life
and during the closure period. We may also consider other activities, including the approval of budgets, expansion and
disposition of assets, financing, significant operating and capital expenditures, appointment of key management personnel,
representation on the board of directors and other items. When circumstances or contractual terms change, we reassess the
control group and the relevant activities of the arrangement.
If we have joint control over the arrangement, an assessment of whether the arrangement is a joint venture or a joint
operation is required. This assessment is based on whether we have rights to the assets, and obligations for the
liabilities, relating to the arrangement or whether we have rights to the net assets of the arrangement. In making this
determination, we review the legal form of the arrangement, the terms of the contractual arrangement and other facts
and circumstances. In a situation where the legal form and the terms of the contractual arrangement do not give us
rights to the assets and obligations for the liabilities, an assessment of other facts and circumstances is required,
including whether the activities of the arrangement are primarily designed for the provision of output to the parties and
whether the parties are substantially the only source of cash flows contributing to the arrangement. The consideration
of other facts and circumstances may result in the conclusion that a joint arrangement is a joint operation. This
conclusion requires judgment and is specific to each arrangement. Other facts and circumstances have led us to
conclude that Antamina, NewRange and San Nicolás are joint operations for the purposes of our consolidated financial
statements. The other facts and circumstances considered for these arrangements include the provision of output to the
parties of the joint arrangements and the funding obligations. For Antamina, NewRange and San Nicolás, we take our
share of the output from the assets directly over the life of the arrangement. We have concluded that this gives us direct
rights to the assets and obligations for the liabilities of these arrangements proportionate to our ownership interests.
Streaming Transactions
When we enter into a long-term streaming arrangement linked to production at specific operations, judgment is
required in assessing the appropriate accounting treatment for the transaction on the closing date and in future
periods. We consider the specific terms of each arrangement to determine whether we have disposed of an interest in
the reserves and resources of the respective operation or executed some other form of arrangement. This assessment
considers what the counterparty is entitled to and the associated risks and rewards attributable to them over the life
of the operation. These include the contractual terms related to the total production over the life of the arrangement
as compared to the expected production over the life of the mine, the percentage being sold, the percentage of
payable metals produced, the commodity price referred to in the ongoing payment and any guarantee relating to the
upfront payment if production ceases.
For our silver and gold streaming arrangements at Antamina and Carmen de Andacollo, respectively, there is no
guarantee associated with the upfront payment. We have concluded that control of the rights to the silver and gold
mineral interests were transferred to the buyers when the contracts came into effect. Therefore, we consider these
arrangements a disposition of a mineral interest.
Based on our judgment, control of the interest in the reserves and resources transferred to the buyer when the
contracts were executed. At that time, we recognized the amount of the gain related to the disposition of the reserves
and resources, as we had the right to payment, the customer was entitled to the commodities, the buyer had no
recourse in requiring Teck to mine the product, and the buyer had significant risks and rewards of ownership of the
reserves and resources.
We recognize the amount of consideration related to refining, mining and delivery services as the work is performed.
Deferred Tax Assets and Liabilities
Judgment is required in assessing whether deferred tax assets and certain deferred tax liabilities are recognized on
the balance sheet and what tax rate is expected to be applied in the year when the related temporary differences
reverse. We also evaluate the recoverability of deferred tax assets based on an assessment of our ability to use the
underlying future tax deductions before they expire against future taxable profits or capital gains. Deferred tax
48 Teck 2023 Annual Report
liabilities arising from temporary differences on investments in subsidiaries, joint ventures and associates are
recognized unless the reversal of the temporary differences is not expected to occur in the foreseeable future and can
be controlled. Judgment is also required on the application of income tax legislation. These judgments are subject to
risk and uncertainty and could result in an adjustment to the deferred tax provision and a corresponding credit or
charge to profit (loss).
Assets Held for Sale
Judgment is required in assessing whether certain assets are considered as held for sale as at December 31, 2023.
For non-current assets and disposal groups to be considered as held for sale, the asset or disposal group must be
available for immediate disposal, by sale or otherwise, in its present condition subject only to terms that are usual and
customary for sales of such assets or disposal groups, and its sale must be highly probable. Exercising judgment
includes considering the likelihood of obtaining requisite regulatory, stakeholder and political approvals.
In the fourth quarter of 2023, we announced our agreement to sell our interest in our steelmaking coal business,
referred to as Elk Valley Resources (EVR), through a sale of a majority stake to Glencore plc (Glencore) and a sale of
minority stakes to Nippon Steel Corporation (NSC) and POSCO. The NSC and POSCO portions of the transaction
closed on January 3, 2024. Closing of the sale of the majority interest in EVR to Glencore remains subject to receipt of
competition approvals in several jurisdictions and approval under the Investment Canada Act. The timing and outcome
of these processes is not known with sufficient certainty and as such, we are not in a position to conclude that receipt
of the required approvals, and resulting closing of the transaction, is highly probable. Therefore, we have determined
that our steelmaking coal business did not meet the criteria to be classified as held for sale at December 31, 2023.
As at December 31, 2022, we determined that the Fort Hills disposal group; the Quintette disposal group; the Mesaba
property, plant and equipment assets; and the San Nicolás property, plant and equipment assets were considered as
held for sale.
b) Sources of Estimation Uncertainty
Impairment Testing
For the annual goodwill impairment testing for our steelmaking coal group of CGUs, we estimated its recoverable
amount based on consideration expected to be received from the sale transactions. This includes the present value of
the agreed-upon cash proceeds from Glencore and NSC, plus the expected discounted cash flows from the
steelmaking coal business until closing of the Glencore transaction. The most significant assumption is the U.S.
dollar to Canadian dollar foreign exchange rate, which is applied to both the cash receipts and the cash flows until
closing. Other significant assumptions include the steelmaking coal price, sales volumes and operating costs.
For other impairment testing required, discounted cash flow models are used to determine the recoverable amount
of respective CGUs. These models are prepared internally or with assistance from third-party advisors when required.
When relevant market transactions for comparable assets are available, these are considered in determining the
recoverable amount of assets.
Significant assumptions used in preparing the discounted cash flow model for our Quebrada Blanca CGU goodwill
impairment test include commodity prices, reserves and resources, sales volumes, operating costs, capital expenditures,
discount rate and the fair value per pound of copper equivalent used in the determination of the in situ value.
Significant assumptions used in preparing the discounted cash flow model for our Trail CGU impairment test in 2022
include zinc prices, smelter production, operating costs, capital expenditures, treatment charges, zinc premiums,
discount rate and foreign exchange rates.
Our 2023 audited annual consolidated financial statements outline the significant inputs used when performing
goodwill and other asset impairment testing. These inputs are based on management’s best estimates of what an
independent market participant would consider appropriate. Changes in these inputs may alter the results of
impairment testing, the amount of the impairment charges or reversals recorded in the statement of income (loss)
and the resulting carrying values of assets.
Management’s Discussion and Analysis
49
Goodwill Impairment Testing – October 31, 2023
Steelmaking Coal Group of CGUs
Our steelmaking coal group of CGUs has goodwill allocated to it. For our annual goodwill impairment testing, we estimated
the recoverable amount of the steelmaking coal group of CGUs based on consideration expected to be received from the
announced sale transactions in November 2023. This includes the present value of the agreed-upon cash proceeds from
Glencore and NSC, plus the expected discounted cash flows from the steelmaking coal group of CGUs until expected
closing of the Glencore transaction. The estimated recoverable amount of the steelmaking coal group of CGUs exceeded
the carrying amount by approximately $600 million at October 31, 2023, our annual goodwill impairment testing date.
These FVLCD estimates are classified as a Level 3 measurement within the fair value measurement hierarchy.
The recoverable amount of our steelmaking coal group of CGUs is most sensitive to changes in the U.S. dollar to
Canadian dollar foreign exchange rate, which is applied to both the cash receipts and the cash flows until closing. We
used a U.S. dollar to Canadian dollar exchange rate of 1.38 in our estimation, based on the forward curve at October 31,
2023. In isolation, a strengthening of the Canadian dollar to 1.33 would result in the recoverable amount of the
steelmaking coal group of CGUs being approximately equal to the carrying amount. Other significant assumptions
include the steelmaking coal price, sales volumes and operating costs.
Impairment Testing – December 31, 2023
Steelmaking Coal Group of CGUs
As at December 31, 2023, as a result of the strengthening of the Canadian dollar against the U.S. dollar affecting the
Canadian dollar equivalent of our expected consideration to be received in the sale of the steelmaking coal business
transactions, we performed an additional impairment test for our steelmaking coal group of CGUs. We updated the
estimated recoverable amount based on the consideration expected to be received, consistent with the annual goodwill
impairment testing performed as at October 31, 2023. In performing this impairment test, we used a U.S. dollar to
Canadian dollar foreign exchange rate of 1.32 based on the forward curve at December 31, 2023 and also updated
applicable assumptions including the steelmaking coal price, sales volumes and operating costs.
The estimated recoverable amount of the steelmaking coal group of CGUs exceeded the carrying amount by approximately
$80 million at December 31, 2023. These FVLCD estimates are classified as a Level 3 measurement within the fair value
measurement hierarchy.
In isolation, a $0.01 strengthening in the Canadian dollar would result in the recoverable amount being approximately
equal to the carrying amount.
Impairment Testing – December 31, 2022
Trail CGU and Assets Held for Sale
In the fourth quarter of 2022, as a result of increased costs and operating challenges at the Trail CGU, we performed an
impairment test for our Trail CGU. Cash flow projections used in the analysis as at December 31, 2022 were based on an
operating plan with cash flows covering a period of 80 years. The recoverable amount of our Trail CGU was approximately
equal to the carrying amount of $1.2 billion at the date of testing. As a result, any changes in the key assumptions below
could result in the carrying amount exceeding the recoverable amount.
In 2022, immediately before the initial classification of assets held for sale, we measured the assets at the lower of their
carrying amount and fair value less costs to sell.
Annual Goodwill Impairment Testing
Quebrada Blanca CGU
Our Quebrada Blanca CGU has goodwill allocated to it. We performed our annual goodwill impairment testing at
October 31, 2023, calculating the recoverable amount on a FVLCD basis and did not identify any goodwill impairment
losses. Cash flow projections in the discounted cash flow model cover the current expected mine life of Quebrada
Blanca and a projected expansion, totalling 49 years, with an estimate of in situ value applied to the remaining
resources. Given the nature of expected future cash flows used to determine the recoverable amount, a material
change could occur over time, as the cash flows are significantly affected by the key assumptions described below.
50 Teck 2023 Annual Report
Sensitivity Analysis
The recoverable amount of our Quebrada Blanca CGU exceeded the carrying amount by approximately $600 million at
the date of our annual goodwill impairment testing. The recoverable amount of Quebrada Blanca is most sensitive to
the long-term copper price assumption and discount rate assumption. In isolation, a US$0.10 decrease in the long-term
copper price, or a 30 basis points increase in the discount rate would result in the recoverable amount of Quebrada
Blanca being equal to its carrying value.
Significant assumptions used in preparing the discounted cash flow model for our Quebrada Blanca CGU goodwill
impairment test include commodity prices, reserves and resources, sales volumes, operating costs, capital expenditures,
discount rate and the fair value per pound of copper equivalent used in the determination of the in situ value.
Key Assumptions
Quebrada Blanca CGU and Trail CGU
The following are the key assumptions used in our Quebrada Blanca CGU impairment testing calculations for the years
ended December 31, 2023 and 2022:
Copper prices per pound
2023
2022
Long-term real price in 2028
of US$3.90
Long-term real price in 2027
of US$3.60
Post-tax real discount rate
7.0%
6.5%
In our 2022 impairment assessment of the Trail CGU, we used long-term assumptions of US$1.25 per pound for zinc,
US$277 per tonne for treatment charges, US$0.11 per pound for zinc premiums, a U.S. dollar to Canadian dollar
exchange rate of 1.30 and a post-tax real discount rate of 5.5%.
Interrelation of Key Assumptions
The key assumptions used in our determination of recoverable amounts interrelate significantly with each other and
with our operating plans. For example, a decrease in long-term commodity prices could result in amendments to the
mine plans that would partially offset the effect of lower prices through lower operating costs and capital expenditures.
It is difficult to determine how all of these factors would interrelate, but in estimating the effect of changes in these
assumptions on fair values, we believe that all of these factors need to be considered together. A linear extrapolation
of these effects becomes less meaningful as the change in assumption increases.
Commodity Price Assumptions
Commodity price assumptions use current prices in the initial year and trend to the long-term prices in the information
referenced above. Prices are based on a number of factors, including historical data, analyst estimates and forward
curves in the near term and are benchmarked with external sources of information, including information published by our
peers and market transactions, where possible, to ensure they are within the range of values used by market participants.
Discount Rates
Discount rates are based on market participant mining and smelting weighted average costs of capital adjusted for
risks specific to the operation or asset where appropriate.
Foreign Exchange Rates
U.S. dollar to Canadian dollar foreign exchange rates are significant to the Trail CGU and are benchmarked with
external sources of information based on a range used by market participants.
Reserves and Resources, Mine Production and Smelter Production
Future mineral production is included in projected cash flows based on plant capacities, reserve and resource
estimates and related exploration and evaluation work undertaken by appropriately qualified persons.
Future smelter production is included in projected cash flows based on plant capacities.
Management’s Discussion and Analysis
51
In Situ Value
The fair value of resources beyond production included in the discounted cash flow model are estimated on a fair value
per pound on a copper equivalent basis using available comparable market data.
Operating Costs and Capital Expenditures
Operating costs and capital expenditures are based on life of mine plans, operating plans and internal management
forecasts, as applicable. Cost estimates incorporate management experience and expertise, current operating costs,
the nature and location of each operation, and the risks associated with each operation. Future capital expenditures
are based on management’s best estimate of expected future capital requirements, with input from management’s
experts where appropriate. All committed and anticipated capital expenditures based on future cost estimates have
been included in the projected cash flows. Operating cost and capital expenditure assumptions are subject to ongoing
optimization and review by management.
Recoverable Amount Basis
In the absence of a relevant market transaction, we estimate the recoverable amount of our CGU on a FVLCD basis
using a discounted cash flow methodology, taking into account assumptions likely to be made by market participants
unless it is expected that the value in use methodology would result in a higher recoverable amount. For the asset
impairment and goodwill impairment analyses performed in 2023 and 2022, we have applied the FVLCD basis. These
estimates are classified as a Level 3 measurement within the fair value measurement hierarchy.
Estimated Recoverable Reserves and Resources
Mineral reserve and resource estimates are based on various assumptions relating to operating matters as set forth in
National Instrument 43-101, Standards of Disclosure for Mineral Projects. Assumptions used include production costs,
mining and processing recoveries, cut-off grades, sales volumes, long-term commodity prices, exchange rates,
inflation rates, tax and royalty rates and capital costs. Cost estimates are based on prefeasibility or feasibility study
estimates or operating history. Estimates are prepared by or under the supervision of appropriately qualified persons,
but will be affected by forecasted commodity prices, inflation rates, exchange rates, capital and production costs and
recoveries, among other factors. Estimated recoverable reserves and resources are used in performing impairment
testing, to determine the depreciation of property, plant and equipment at operating mine sites, in accounting for
capitalized production stripping costs and also in forecasting the timing of settlement of decommissioning and
restoration costs. Changes in reserve and resource estimates are most significant to estimating the recoverable
amount in impairment tests.
Decommissioning and Restoration Provisions
Decommissioning and restoration provisions (DRPs) are based on future cost estimates using information available at
the balance sheet date that are developed by management’s experts. DRPs represent the present value of estimated
costs of future decommissioning and other site restoration activities, including costs associated with the management
of water and water quality in and around each closed site. DRPs are adjusted at each reporting period for changes to
factors such as the expected amount of cash flows required to discharge the liability, the timing of such cash flows
and the credit-adjusted discount rate. DRPs require significant estimates and assumptions, including the requirements
of the relevant legal and regulatory framework and the timing, extent and costs of required decommissioning and
restoration activities. Our estimates of the costs associated with the management of water and water quality in and
around each closed site include assumptions with respect to the volume and location of water to be treated, the
methods used to treat the water and the related water treatment costs. To the extent the actual costs differ from
these estimates, adjustments will be recorded and the statement of income (loss) may be affected.
Provision for Income Taxes
We calculate current and deferred tax provisions for each of the jurisdictions in which we operate. Actual amounts of
income tax expense are not final until tax returns are filed and accepted by the relevant authorities. This occurs
subsequent to the issuance of our financial statements and the final determination of actual amounts may not be
completed for a number of years. Therefore, profit (loss) in subsequent periods will be affected by the amount that
estimates differ from the final tax assessment.
52 Teck 2023 Annual Report
Deferred Tax Assets and Liabilities
Assumptions about the generation of future taxable profits and repatriation of retained earnings depend on
management’s estimates of future production and sales volumes, commodity prices, reserves and resources,
operating costs, decommissioning and restoration costs, capital expenditures, dividends and other capital
management transactions. These estimates could result in an adjustment to the deferred tax provision and a
corresponding adjustment to profit (loss).
Adoption of New Accounting Standards and Accounting Developments
New IFRS Accounting Standards Pronouncements
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 – Interest Rate Benchmark Reform – Phase 2
In August 2020, the IASB issued amendments to IFRS 9, Financial Instruments (IFRS 9), IAS 39, Financial Instruments:
Recognition and Measurement, IFRS 7, Financial Instruments: Disclosures, IFRS 4, Insurance Contracts and IFRS 16, Leases
as a result of Phase 2 of the IASB’s Interest Rate Benchmark Reform project. The amendments address issues arising
in connection with reform of benchmark interest rates, including the replacement of one benchmark rate with an
alternative one. The amendments were effective January 1, 2021.
Term Secured Overnight Financing Rate (Term SOFR) was formally recommended by the Alternative Reference Rates
Committee (a committee convened by the U.S. Federal Reserve Board) as the recommended fallback for USD London
Interbank Offered Rate (LIBOR) based loans. Term SOFR is expected to be largely equivalent on an economic basis to
LIBOR, allowing for use of the practical expedient under IFRS 9. Our Quebrada Blanca Phase 2 project (QB2) financing
facility, Compañía Minera Antamina S.A. (Antamina) loan agreement and QB2 advances from Sumitomo Metal Mining
Co., Ltd. and Sumitomo Corporation (together referred to as SMM/SC) are our most significant financial instruments
that were exposed to LIBOR.
We transitioned our sustainability-linked revolving credit facility to Term SOFR in 2022. This did not affect our financial
statements as this credit facility remains undrawn. We transitioned the remaining financial instruments that used
LIBOR settings to Term SOFR in the second quarter of 2023. The transition did not result in a significant change to our
financial statements, our interest rate risk management strategy or our interest rate risk.
Amendment to IAS 1 and IFRS Practice Statement 2 – Disclosure of Accounting Policies
We adopted the amendments to IAS 1, Presentation of Financial Statements (IAS 1) on January 1, 2023 with prospective
application. The amendments to IAS 1 replace the requirement to disclose “significant” accounting policies with a
requirement to disclose “material” accounting policies. The adoption of these amendments has been reflected in the
accounting policy information disclosed.
We also referenced the amended IFRS Practice Statement 2 Making Materiality Judgements in application of the
amendments to IAS 1.
Amendments to IAS 7 and IFRS 7 – Supplier Finance Arrangements
In May 2023, the IASB issued amendments to IAS 7, Statement of Cash Flows and IFRS 7, Financial Instruments:
Disclosures to provide guidance on disclosures related to supplier finance arrangements that enable users of financial
statements to assess the effects of these arrangements on the entity’s liabilities and cash flows and on the entity’s
exposure to liquidity risk. The amendments are effective for annual periods beginning on or after January 1, 2024, with
early adoption permitted.
We have chosen to early adopt these amendments effective for annual reporting periods beginning on or after
January 1, 2023. The adoption of these amendments did not have a material effect on our annual financial statements.
Amendments to IAS 12 – International Tax Reform – Pillar Two Model Rules
In May 2023, the IASB issued amendments to IAS 12, Income Taxes (IAS 12), to clarify the application of IAS 12 to income
taxes arising from tax law enacted or substantively enacted to implement the Organisation for Economic Co-operation
and Development (OECD)/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) Pillar Two model rules.
Management’s Discussion and Analysis
53
Effective immediately upon release, the amendments introduced a mandatory temporary exception to the accounting
for deferred taxes arising from the implementation of Pillar Two model rules which an entity must disclose if it has
applied the exception. In addition, effective for annual reporting periods beginning on or after January 1, 2023,
disclosure is required to help users of the entity’s financial statements to better understand the entity’s exposure to
Pillar Two income taxes.
In Canada, draft legislation to implement the Global Minimum Tax Act (GMTA) within the framework of the OECD’s Pillar
Two Model rules was released in August 2023 for public consultation but as of December 31, 2023, the GMTA has not
been substantively enacted. Based on Pillar Two legislation already enacted in the United Kingdom, Ireland, and Japan,
where we have ancillary operations, there is no exposure to any material Pillar Two taxes.
Amendments to IAS 1 – Presentation of Financial Statements
In October 2022, the IASB issued amendments to IAS 1, Presentation of Financial Statements titled Non-current
Liabilities with Covenants. These amendments sought to improve the information that an entity provides when its right
to defer settlement of a liability is subject to compliance with covenants within 12 months after the reporting period.
These amendments to IAS 1 override and incorporate the previous amendments, Classification of Liabilities as Current
or Non-current, issued in January 2020, which clarified that liabilities are classified as either current or non-current,
depending on the rights that exist at the end of the reporting period. Liabilities should be classified as non-current if a
company has a substantive right to defer settlement for at least 12 months at the end of the reporting period. The
amendments are effective January 1, 2024, with early adoption permitted. Retrospective application is required on
adoption. We do not expect these amendments to have a material effect on our financial statements.
Outstanding Share Data
As at February 22, 2024, there were approximately 510.1 million Class B subordinate voting shares and 7.7 million Class A
common shares outstanding. In addition, there were approximately 12.6 million share options outstanding with exercise
prices ranging between $5.34 and $63.11 per share. More information on these instruments, and the terms of their
conversion, is set out in Note 26 in our 2023 audited annual consolidated financial statements.
The Toronto Stock Exchange (TSX) accepted our notice of intention to make a normal course issuer bid (NCIB) to
purchase up to 40 million Class B shares during the period starting November 22, 2023 and ending November 21, 2024,
representing approximately 7.8% of the outstanding Class B shares, or 7.9% of the public float, as at November 15, 2023.
Teck is making the normal course issuer bid because it believes that the market price of its Class B subordinate voting
shares may, from time to time, not reflect their underlying value and that the share buyback program may provide
value by reducing the number of shares outstanding at attractive prices. Any purchases made under the NCIB will be
through the facilities of the TSX, the New York Stock Exchange or other alternative trading systems in Canada and the
United States, if eligible, or by such other means as may be permitted under applicable securities laws, including
private agreements under an issuer bid exemption order or block purchases in accordance with applicable regulations.
Any purchases made by way of private agreement under an applicable exemption order issued by a securities
regulatory authority may be at a discount to the prevailing market price, as provided for in such exemption order.
Under the TSX rules, except pursuant to permitted exceptions, the number of Class B shares purchased on the TSX on
any given day will not exceed 263,532 Class B shares, which is 25% of the average daily trading volume for the Class B
shares on the TSX during the six-month period ended October 31, 2023 of 1,054,128, calculated in accordance with the
TSX rules. The actual number of Class B shares to be purchased and the timing of any such purchases will generally be
determined by us from time to time as market conditions warrant. In addition, we may from time to time repurchase
Class B shares under an automatic securities repurchase plan, which will enable purchases during times when we
would typically not be permitted to purchase our shares due to regulatory or other reasons. All repurchased shares will
be cancelled. During Teck’s previous normal course issuer bid, which commenced on November 2, 2022, and ended on
November 1, 2023, Teck purchased 1,550,000 Class B subordinate voting shares at an average purchase price of
$54.89 per share. Teck sought and received approval to purchase up to 40 million Class B subordinate voting shares
under the previous normal course issuer bid. Security holders may obtain a copy of the notice of intention, without
charge, by request directed to the attention of our Corporate Secretary, at our offices located at Suite 3300–550 Burrard
Street, Vancouver, British Columbia, V6C 0B3.
54 Teck 2023 Annual Report
Contractual and Other Obligations
($ in millions)
Less than
1 Year
2–3
Years
4–5
Years
More than
5 Years
Total
Debt – Principal and interest payments
$
Leases – Principal and interest payments1
Obligation to Neptune Bulk Terminals
ENAMI preferential dividend liability
QB2 advances from SMM/SC and
estimated interest payments
QB2 variable consideration to IMSA
Minimum purchase obligations2
Concentrate, equipment,
supply and other purchases
Shipping and distribution
Energy contracts
NAB PILT and VIF payments7
Pension funding3
Other non-pension
post-retirement benefits4
Decommissioning and
restoration provision5
Other long-term liabilities and interest
payments6
Downstream pipeline take-or-pay
toll commitment
909
203
–
–
–
–
1,181
206
538
44
6
14
301
58
29
$
1,690
$
1,230
$ 6,068
$ 9,897
269
31
–
–
132
1,141
392
1,064
44
–
30
589
205
60
191
30
–
–
–
130
160
1,041
–
–
32
1,139
143
606
5,559
–
26
23
1,802
204
606
5,559
132
2,478
781
7,640
10,283
–
–
294
88
6
370
342
2,675
3,907
86
65
162
254
511
408
$
3,489
$
5,647
$
3,307
$ 24,589
$ 37,032
Notes:
1. We lease road and port facilities from the Alaska Industrial Development and Export Authority, through which it ships metal concentrates
produced at the Red Dog mine. Minimum lease payments are US$6 million for the following 16 years and are subject to deferral and abatement for
force majeure events.
2. The majority of our minimum purchase obligations are subject to continuing operations and force majeure provisions.
3. As at December 31, 2023, the company had a net pension asset of $371 million, based on actuarial estimates prepared on a going concern basis.
The amount of minimum funding for 2024 in respect of defined benefit pension plans is $6 million. The timing and amount of additional funding
after 2024 is dependent upon future returns on plan assets, discount rates and other actuarial assumptions.
4. We had a discounted, actuarially determined liability of $370 million in respect of other non-pension post-retirement benefits as at December 31,
2023. Amounts shown are estimated expenditures in the indicated years.
5. We accrue environmental and reclamation obligations over the life of our mining operations, and amounts shown are estimated expenditures in
the indicated years at fair value, assuming credit-adjusted risk-free discount rates between 5.61% and 7.13% and an inflation factor of 2.00%.
6. Other long-term liabilities include amounts for post-closure environmental costs, other liabilities and interest payments.
7. On April 25, 2017, Teck Alaska entered into a 10-year agreement with the Northwest Arctic Borough (NAB) for payments in lieu of taxes (PILT).
Payments under the agreement are based on a percentage of land, buildings and equipment at cost less accumulated depreciation. The effective
date of this agreement was January 1, 2016 and this agreement expires on December 31, 2025. On April 25, 2017, Teck Alaska entered into a 10-year
agreement with the NAB for payments to a village improvement fund (VIF). Payments under the agreement are based on a percentage of earnings
before income taxes, with 2017–2025 having minimum payments of $4 million. The effective date of this agreement was January 1, 2016 and this
agreement expires on December 31, 2025.
Management’s Discussion and Analysis
55
Disclosure Controls and Internal Control Over Financial Reporting
Disclosure Controls and Procedures
Disclosure controls and procedures are designed to provide reasonable assurance that information required to be
disclosed in reports filed or submitted by us under U.S. and Canadian securities legislation is recorded, processed,
summarized and reported within the time periods specified in those rules, and include controls and procedures
designed to ensure that information required to be disclosed in reports filed or submitted by us under U.S. and Canadian
securities legislation is accumulated and communicated to management, including the Chief Executive Officer and
Chief Financial Officer, as appropriate, to permit timely decisions regarding required disclosure. Management,
including the Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the design and
operation of our disclosure controls and procedures, as defined in the rules of the U.S. Securities and Exchange
Commission and the Canadian Securities Administrators, as at December 31, 2023. Based on this evaluation, the Chief
Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were
effective as at December 31, 2023.
Management’s Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting.
Any system of internal control over financial reporting, no matter how well-designed, has inherent limitations.
Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to
financial statement preparation and presentation. Most of our corporate office staff and many site administrative staff
worked remotely through 2023. We have retained documentation in electronic form as a result of remote work through
this period. There have been no significant changes in our internal controls during the year ended December 31, 2023
that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting.
Management has used the Committee of Sponsoring Organizations of the Treadway Commission (COSO) 2013
framework to evaluate the effectiveness of our internal control over financial reporting. Based on this assessment,
management has concluded that as at December 31, 2023, our internal control over financial reporting was effective.
The effectiveness of our internal controls over financial reporting as at December 31, 2023, has been audited by
PricewaterhouseCoopers LLP, an independent registered public accounting firm, who have expressed their opinion
in their report included with our annual consolidated financial statements.
Use of Non-GAAP Financial Measures and Ratios
Our financial statements are prepared in accordance with IFRS Accounting Standards as issued by the International
Accounting Standards Board. This document refers to a number of non-GAAP financial measures and non-GAAP
ratios which are not measures recognized under IFRS Accounting Standards and do not have a standardized meaning
prescribed by IFRS Accounting Standards or by Generally Accepted Accounting Principles (GAAP) in the United States.
The non-GAAP financial measures and non-GAAP ratios described below do not have standardized meanings under
IFRS Accounting Standards, may differ from those used by other issuers, and may not be comparable to similar
financial measures and ratios reported by other issuers. These financial measures and ratios have been derived from
our financial statements and applied on a consistent basis as appropriate. We disclose these financial measures and
ratios because we believe they assist readers in understanding the results of our operations and financial position and
provide further information about our financial results to investors. These measures should not be considered in
isolation or used as a substitute for other measures of performance prepared in accordance with IFRS Accounting
Standards.
Adjusted profit attributable to shareholders: For adjusted profit attributable to shareholders, we adjust profit
attributable to shareholders as reported to remove the after-tax effect of certain types of transactions that reflect
measurement changes on our balance sheet or are not indicative of our normal operating activities.
EBITDA: EBITDA is profit before net finance expense, provision for income taxes, and depreciation and amortization.
Adjusted EBITDA: Adjusted EBITDA is EBITDA before the pre-tax effect of the adjustments that we make to adjusted
profit attributable to shareholders as described above.
56 Teck 2023 Annual Report
Adjusted profit attributable to shareholders, EBITDA and Adjusted EBITDA highlight items and allow us and readers to
analyze the rest of our results more clearly. We believe that disclosing these measures assists readers in understanding
the ongoing cash generating potential of our business in order to provide liquidity to fund working capital needs,
service outstanding debt, fund future capital expenditures and investment opportunities, and pay dividends.
Gross profit before depreciation and amortization: Gross profit before depreciation and amortization is gross profit
with depreciation and amortization expense added back. We believe this measure assists us and readers to assess our
ability to generate cash flow from our business units or operations.
Unit costs: Unit costs for our steelmaking coal operations are total cost of goods sold, divided by tonnes sold in the
period, excluding depreciation and amortization charges. We include this information as it is frequently requested by
investors and investment analysts who use it to assess our cost structure and margins and compare it to similar
information provided by many companies in the industry.
Adjusted site cash cost of sales: Adjusted site cash cost of sales for our steelmaking coal operations is defined as the
cost of the product as it leaves the mine excluding depreciation and amortization charges, out-bound transportation
costs and any one-time collective agreement charges and inventory write-down provisions.
Total cash unit costs: Total cash unit costs for our copper and zinc operations includes adjusted cash costs of sales,
as described below, plus the smelter and refining charges added back in determining adjusted revenue. This
presentation allows a comparison of total cash unit costs, including smelter charges, to the underlying price of copper
or zinc in order to assess the margin for the mine on a per unit basis.
Net cash unit costs: Net cash unit costs of principal product, after deducting co-product and by-product margins, are
also a common industry measure. By deducting the co- and by-product margin per unit of the principal product, the
margin for the mine on a per unit basis may be presented in a single metric for comparison to other operations.
Adjusted cash cost of sales: Adjusted cash cost of sales for our copper and zinc operations is defined as the cost of
the product delivered to the port of shipment, excluding depreciation and amortization charges, any one-time
collective agreement charges or inventory write-down provisions and by-product cost of sales. It is common practice
in the industry to exclude depreciation and amortization as these costs are non-cash, and discounted cash flow
valuation models used in the industry substitute expectations of future capital spending for these amounts.
Cash margins for by-products: Cash margins for by-products is revenue from by- and co-products, less any
associated cost of sales of the by- and co-product. In addition, for our copper operations, by-product cost of sales
also includes cost recoveries associated with our streaming transactions.
Adjusted revenue: Adjusted revenue for our copper and zinc operations excludes the revenue from co-products and
by-products, but adds back the processing and refining charges to arrive at the value of the underlying payable pounds
of copper and zinc. Readers may compare this on a per unit basis with the price of copper and zinc on the LME.
The debt-related measures outlined below are disclosed as we believe they provide readers with information that
allows them to assess our credit capacity and the ability to meet our short and long-term financial obligations.
Net debt: Net debt is total debt, less cash and cash equivalents.
Net debt to net debt-plus-equity ratio: Net debt to net debt-plus-equity ratio is net debt divided by the sum of net
debt plus total equity, expressed as a percentage.
Net debt to adjusted EBITDA ratio: Net debt to adjusted EBITDA ratio is net debt divided by adjusted EBITDA for the
12 months ended at the reporting period, expressed as the number of times adjusted EBITDA needs to be earned to
repay the net debt.
Adjusted basic earnings per share: Adjusted basic earnings per share is adjusted profit attributable to shareholders
divided by average number of shares outstanding in the period.
Adjusted diluted earnings per share: Adjusted diluted earnings per share is adjusted profit attributable to shareholders
divided by average number of fully diluted shares in a period.
Management’s Discussion and Analysis
57
Adjusted site cash cost of sales per tonne: Adjusted site cash cost of sales per tonne is a non-GAAP ratio comprised
of adjusted site cash cost of sales divided by tonnes sold. There is no similar financial measure in our consolidated
financial statements with which to compare.
Total cash unit costs per pound: Total cash unit costs per pound is a non-GAAP ratio comprised of adjusted cash cost
of sales divided by payable pounds sold plus smelter processing charges divided by payable pounds sold.
Net cash unit costs per pound: Net cash unit costs per pound is a non-GAAP ratio comprised of (adjusted cash cost
of sales plus smelter processing charges less cash margin for by-products) divided by payable pounds sold. There is
no similar financial measure in our consolidated financial statements with which to compare. Adjusted cash cost of
sales is a non-GAAP financial measure.
Cash margins for by-products per pound: Cash margins for by-products per pound is a non-GAAP ratio comprised of
cash margins for by-products divided by payable pounds sold.
Profit Attributable to Shareholders and Adjusted Profit Attributable to Shareholders
($ in millions, except per share data)
2023
20221
20213
Profit from continuing operations attributable to shareholders
$
2,435
$
4,089
$
2,868
Add (deduct) on an after-tax basis:
Asset impairments (impairment reversal)
Loss on debt purchase
QB2 variable consideration to IMSA and ENAMI
Environmental costs
Inventory write-downs
Share-based compensation
Commodity derivatives
Loss (gain) on disposal or contribution of assets
Elkview business interruption claim
Chilean tax reform
Loss from discontinued operations2
Other
–
–
95
123
18
85
9
(178)
(150)
69
–
201
952
42
115
99
36
181
(25)
7
–
–
(791)
168
(150)
–
124
79
2
94
15
–
–
–
–
25
Adjusted profit attributable to shareholders
$
2,707
$
4,873
$
3,057
Basic earnings per share from continuing operations
Diluted earnings per share from continuing operations
Adjusted basic earnings per share
Adjusted diluted earnings per share
$
$
$
$
4.70
4.64
5.23
5.15
$
$
$
$
7.77
7.63
9.25
9.09
$
$
$
$
5.39
5.31
5.74
5.66
Notes:
1. Adjustments for the year ended December 31, 2022 are the nine months ended September 30, 2022 as previously reported plus the three months
ended December 31, 2022 for continuing operations.
2. Adjustment required to remove the effect of discontinued operations for the nine months ended September 30, 2022.
3. Amounts for the year ended December 31, 2021 are as previously reported.
58 Teck 2023 Annual Report
Reconciliation of Basic Earnings per share to Adjusted Basic Earnings per share
(Per share amounts)
Basic earnings per share from continuing operations
Add (deduct):
Asset impairments (impairment reversal)
Loss on debt purchase
QB2 variable consideration to IMSA and ENAMI
Environmental costs
Inventory write-downs
Share-based compensation
Commodity derivatives
Loss (gain) on disposal or contribution of assets
Elkview business interruption claim
Chilean tax reform
Loss from discontinued operations2
Other
2023
20221
20213
$
4.70
$
7.77
$
5.39
–
–
0.18
0.24
0.03
0.17
0.02
(0.34)
(0.29)
0.13
–
0.39
1.81
0.08
0.22
0.19
0.07
0.34
(0.05)
0.01
–
–
(1.51)
0.32
(0.28)
–
0.23
0.15
–
0.18
0.03
–
–
–
–
0.04
Adjusted basic earnings per share
$
5.23
$
9.25
$
5.74
Notes:
1. Adjustments for the year ended December 31, 2022 are the nine months ended September 30, 2022 as previously reported plus the three months
ended December 31, 2022 for continuing operations.
2. Adjustment required to remove the effect of discontinued operations for the nine months ended September 30, 2022.
3. Amounts for the year ended December 31, 2021 are as previously reported.
Reconciliation of Diluted Earnings per share to Adjusted Diluted Earnings per share
(Per share amounts)
Diluted earnings per share from continuing operations
Add (deduct):
Asset impairments (impairment reversal)
Loss on debt purchase
QB2 variable consideration to IMSA and ENAMI
Environmental costs
Inventory write-downs
Share-based compensation
Commodity derivatives
Loss (gain) on disposal or contribution of assets
Elkview business interruption claim
Chilean tax reform
Loss from discontinued operations2
Other
2023
20221
20213
$
4.64
$
7.63
$
5.31
–
–
0.18
0.23
0.03
0.16
0.02
(0.33)
(0.29)
0.13
–
0.38
1.78
0.08
0.21
0.18
0.07
0.34
(0.05)
0.01
–
–
(1.48)
0.32
(0.28)
–
0.23
0.15
–
0.18
0.03
–
–
–
–
0.04
Adjusted diluted earnings per share
$
5.15
$
9.09
$
5.66
Notes:
1. Adjustments for the year ended December 31, 2022 are the nine months ended September 30, 2022 as previously reported plus the three months
ended December 31, 2022 for continuing operations.
2. Adjustment required to remove the effect of discontinued operations for the nine months ended September 30, 2022.
3. Amounts for the year ended December 31, 2021 are as previously reported.
Management’s Discussion and Analysis
59
Reconciliation of EBITDA, Adjusted EBITDA, Net Debt to Adjusted EBITDA and Net Debt to
Capitalization Ratio
($ in millions)
2023
20221
20213
Profit from continuing operations before taxes
$ 3,944
$
6,565
$
4,532
Finance expense net of finance income
Depreciation and amortization
EBITDA
Add (deduct):
Asset impairments (impairment reversal)
Loss on debt purchase
QB2 variable consideration to IMSA and ENAMI
Environmental costs
Inventory write-downs
Share-based compensation
Commodity derivatives
Loss (gain) on disposal or contribution of assets
Elkview business interruption claim
EBITDA from discontinued operations2
Other
Adjusted EBITDA
Total debt at year-end
Less: cash and cash equivalents at year-end
Net debt
Debt to adjusted EBITDA ratio
Net debt to adjusted EBITDA ratio
Equity attributable to shareholders of the company
Other financial obligations
Adjusted net debt to capitalization ratio
162
1,931
150
1,674
210
1,583
$ 6,037
$
8,389
$
6,325
–
–
156
168
26
107
12
(244)
(221)
–
326
1,234
(215)
58
188
128
50
236
(35)
9
–
(811)
122
–
141
108
1
125
22
–
–
–
66
$ 6,367
$
9,568
$
6,573
$
7,595
$
7,738
$ 8,068
(744)
(1,883)
(1,427)
$
6,851
$
5,855
$
6,641
1.2
1.1
0.8
0.6
1.2
1.0
$ 26,988
$ 25,473
$ 23,005
$
268
0.20
$
441
0.19
$
257
0.22
Notes:
1. Adjustments for the year ended December 31, 2022 are the nine months ended September 30, 2022 as previously reported plus the three months
ended December 31, 2022 for continuing operations.
2. Adjustment required to remove the effect of discontinued operations for the nine months ended September 30, 2022.
3. Amounts for the year ended December 31, 2021 are as previously reported.
60 Teck 2023 Annual Report
Reconciliation of Gross Profit Before Depreciation and Amortization
($ in millions)
Gross profit
Depreciation and amortization
2023
5,143
1,931
$
2022
$
8,571
$
1,674
2021
5,214
1,487
Gross profit before depreciation and amortization
$
7,074
$
10,245
$
6,701
Reported as:
Copper
Highland Valley Copper
Antamina
Carmen de Andacollo
Quebrada Blanca
Other
Zinc
Trail Operations
Red Dog
Other
Steelmaking coal
$
391
899
44
(61)
(8)
$
738
1,021
$
73
8
(3)
883
992
209
42
–
1,265
1,837
2,126
103
611
(6)
708
5,101
(18)
1,060
2
1,044
7,364
84
822
12
918
3,657
Gross profit before depreciation and amortization
$
7,074
$
10,245
$
6,701
Management’s Discussion and Analysis
61
2023
2022
$ 3,425
$
3,381
(595)
(397)
156
(105)
(456)
140
$ 2,589
$
2,960
$
2,713
$
1,982
(737)
(103)
$
1,976
$
1,879
(472)
(9)
(125)
(432)
(33)
(101)
$
1,370
$
1,313
498.0
568.0
$
2.75
0.31
$
2.31
0.25
$
3.06
$
2.56
(0.54)
(0.63)
$
2.52
$
1.93
$
$
1.35
2.04
0.23
$
2.27
$
$
$
1.30
1.78
0.19
1.97
(0.40)
(0.48)
$
1.87
$
1.49
Copper Unit Cost Reconciliation
(CAD$ in millions, except where noted)
Revenue as reported
Less:
Quebrada Blanca revenue as reported
By-product revenue (A)
Smelter processing charges (B)
Adjusted revenue
Cost of sales as reported
Less: Quebrada Blanca cost of sales as reported
Less:
Depreciation and amortization
Labour settlement charges
By-product cost of sales (C)
Adjusted cash cost of sales (D)
Payable pounds sold (millions)1 (E)
Per unit amounts — CAD$/pound
Adjusted cash cost of sales (D/E)
Smelter processing charges (B/E)
Total cash unit costs — CAD$/pound
Cash margins for by-products — ((A−C)/E)
Net cash unit costs — CAD$/pound
US$ amounts2
Average exchange rate (CAD$ per US$1.00)
Per unit amounts — US$/pound
Adjusted cash cost of sales
Smelter processing charges
Total cash unit costs — US$/pound
Cash margins for by-products
Net cash unit costs — US$/pound
Notes:
1. Excludes Quebrada Blanca sales.
2. Average period exchange rates are used to convert to US$ per pound equivalent.
62 Teck 2023 Annual Report
Zinc Unit Cost Reconciliation (Mining Operations1)
(CAD$ in millions, except where noted)
Revenue as reported
Less:
Trail Operations revenues as reported
Other revenues as reported
Add back: Intra-segment revenues as reported
By-product revenues (A)
Smelter processing charges (B)
Adjusted revenue
Cost of sales as reported
Less:
Trail Operations cost of sales as reported
Other costs of sales as reported
Add back: Intra-segment purchases as reported
Less:
Depreciation and amortization
Royalty costs
By-product cost of sales (C)
Adjusted cash cost of sales (D)
Payable pounds sold (millions) (E)
Per unit amounts — CAD$/pound
Adjusted cash cost of sales (D/E)
Smelter processing charges (B/E)
Total cash unit costs — CAD$/pound
Cash margins for by-products — ((A−C)/E)
Net cash unit costs — CAD$/pound
US$ amounts2
Average exchange rate (CAD$ per US$1.00)
Per unit amounts — US$/pound
Adjusted cash cost of sales
Smelter processing charges
Total cash unit costs — US$/pound
Cash margins for by-products
Net cash unit costs — US$/pound
Notes:
1. Red Dog Mining Operations.
2. Average period exchange rates are used to convert to US$ per pound equivalent.
2023
2022
$ 3,051
$
3,526
(1,992)
(6)
543
1,596
(320)
365
$
(2,059)
(11)
655
2,111
(260)
297
$
$
1,641
$
2,148
$ 2,651
$
2,755
(1,994)
(12)
543
(2,152)
(9)
655
$
1,188
$
1,249
(203)
(262)
(126)
(198)
(461)
(65)
$
597
$
525
1,042.8
1,088.9
$
$
0.57
0.35
0.92
(0.18)
$
$
0.48
0.27
0.75
(0.18)
$
0.74
$
0.57
$
$
$
1.35
0.42
0.26
0.68
(0.13)
$
$
$
1.30
0.37
0.21
0.58
(0.14)
$
0.55
$
0.44
Management’s Discussion and Analysis
63
Steelmaking Coal Unit Cost Reconciliation
(CAD$ in millions, except where noted)
Cost of sales as reported
Less:
Transportation (A)
Depreciation and amortization
Elkview shutdown (B)
Adjusted site cash cost of sales (C)
Tonnes sold (millions) (D)
Per unit amounts — CAD$/tonne
Adjusted site cash cost of sales (C/D)
Transportation costs (A/D)
Elkview shutdown (B/D)
Unit costs — CAD$/tonne
US$ amounts1
Average exchange rate (CAD$ per US$1.00)
Per unit amounts — US$/tonne
Adjusted site cash cost of sales
Transportation
Unit costs — US$/tonne
Note:
1. Average period exchange rates are used to convert to US$/tonne equivalent.
2023
2022
$ 4,504
$
4,008
(1,165)
(1,070)
–
(1,053)
(963)
(14)
$ 2,269
$
1,978
23.7
22.2
$
$
96
49
–
89
47
1
$
145
$
137
$
$
$
1.35
71
36
107
$
$
$
1.30
68
36
104
64 Teck 2023 Annual Report
Cautionary Statement on Forward-Looking Statements
This document contains certain forward-looking information and forward-looking statements as defined in applicable securities
laws (collectively referred to as forward-looking statements). These statements relate to future events or our future performance.
All statements other than statements of historical fact are forward-looking statements. The use of any of the words “anticipate”,
“plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “should”, “believe” and similar expressions is
intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.
These statements speak only as of the date of this document.
These forward-looking statements include, but are not limited to, statements concerning: our focus and strategy; anticipated
global and regional supply, demand and market outlook for our commodities; execution of the planned separation of Teck’s base
metals and steelmaking coal businesses, including the ability to satisfy the closing conditions, including receipt of regulatory
approvals, and expected timing of the closing of the Glencore transaction; timing and cost of completion and ramp-up of the QB2
project, including the molybdenum plant and port facilities; sufficiency of shipping capacity through existing alternate shipping
arrangements; QB2 capital cost guidance and expectations for capitalized ramp-up costs; expectation of reduced CO2 emissions
in our steelmaking coal supply chain for shipments handled by NORDEN and Oldendorff; expectations with respect to continued
operation near design throughput capacity at QB; expectations regarding future remediation costs at our operations and closed
operations; timing of and our ability to implement a solution related to water restrictions at Carmen de Andacollo Operations;
expectations with respect to execution of our copper growth strategy, including the timing and occurrence of any sanction
decisions and prioritization of growth capital; expectations regarding our QB Asset Expansion studies; expectations regarding
advancement of our copper growth portfolio, including advancement of study, permitting, and engineering work and completion
of updated cost estimates at our San Nicolás, Zafranal and HVC Mine Life Extension projects as applicable; the completion of an
updated feasibility study for the Zafranal copper-gold project; expectations for advancement of the regulator-led review of MIA-R
at San Nicolás; our ability to renew or re-establish key permits at NewRange Copper Nickel; expectations for advancement of
prefeasibility work for the NorthMet project; the advancement of prefeasibility study work at the Galore Creek project; our ability to
obtain the permits and approvals required to advance the San Nicolás project; our ability to implement the Elk Valley Water Quality
Plan and other water quality initiatives; expectations for stabilization and reduction of the selenium trend in the Elk Valley;
expectations for total water treatment capacity and further reductions of selenium in the Elk Valley watershed and the Koocanusa
Reservoir; projected spending, including capital and operating costs in 2024 and later years on water treatment, water
management and incremental measures associated with the Direction; timing of advancement and completion of key water
treatment projects; expectations regarding Trail Operations; expectations regarding advancement of our zinc growth portfolio; our
expectation that we will increase our water treatment capacity to 150 million litres per day by the end of 2026; expectations
regarding engagement with U.S. regulators on water quality standards; expectations regarding finance and general and
administration expenses in 2024; expectations regarding timing and amount of income tax payments and our effective tax rate;
liquidity and availability of borrowings under our credit facilities; our ability to obtain additional credit for posting security for
reclamation at our sites; all guidance appearing in this document including but not limited to the production, sales, cost, unit cost,
capital expenditure, capitalized stripping, and other guidance under the headings “Guidance” and “Outlook” and as discussed
elsewhere in the various business unit sections; our expectations regarding inflationary pressures and increased key input costs;
and expectations regarding the adoption of new accounting standards and the impact of new accounting developments.
These statements are based on a number of assumptions, including, but not limited to, assumptions disclosed elsewhere in this
document and assumptions regarding general business and economic conditions, interest rates, commodity and power prices;
acts of foreign or domestic governments and the outcome of legal proceedings; our ability to satisfy the closing conditions of the
Glencore transaction; the supply and demand for, deliveries of, and the level and volatility of prices of copper, zinc and steelmaking
coal and our other metals and minerals, as well as steel, crude oil, natural gas and other petroleum products; the timing of the
receipt of permits and other regulatory and governmental approvals for our development projects and other operations, including
mine extensions; positive results from the studies on our expansion and development projects; our ability to secure adequate
transportation, including rail and port services, for our products; our costs of production and our production and productivity
levels, as well as those of our competitors; continuing availability of water and power resources for our operations; changes in
credit market conditions and conditions in financial markets generally; the availability of funding to refinance our borrowings as
they become due or to finance our development projects on reasonable terms; availability of letters of credit and other forms of
financial assurance acceptable to regulators for reclamation and other bonding requirements; our ability to procure equipment
and operating supplies in sufficient quantities and on a timely basis; the availability of qualified employees and contractors for our
operations, including our new developments and our ability to attract and retain skilled employees; the satisfactory negotiation of
collective agreements with unionized employees; the impact of changes in Canadian-U.S. dollar, Canadian dollar-Chilean peso
and other foreign exchange rates on our costs and results; engineering and construction timetables and capital costs for our
development and expansion projects; our ability to develop technology and obtain the benefits of technology for our operations
and development projects; closure costs; environmental compliance costs; market competition; the accuracy of our mineral
reserve and resource estimates (including with respect to size, grade and recoverability) and the geological, operational and price
Management’s Discussion and Analysis
65
assumptions on which these are based; tax benefits and tax rates; the outcome of our coal price and volume negotiations with
customers; the outcome of our copper, zinc and lead concentrate treatment and refining charge negotiations with customers; the
resolution of environmental and other proceedings or disputes; our ability to obtain, comply with and renew permits, licenses and
leases in a timely manner; and our ongoing relations with our employees and with our business and joint venture partners.
In addition, assumptions regarding the Elk Valley Water Quality Plan include assumptions that additional treatment will be
effective at scale, and that the technology and facilities operate as expected, as well as additional assumptions discussed under
the heading “Elk Valley Water Management Update.” Assumptions regarding QB2 include current project assumptions and
assumptions regarding the final feasibility study, estimates of future construction capital at QB2 are based on a CLP/USD rate
range of 800-850, as well as there being no further unexpected material and negative impact to the various contractors, suppliers
and subcontractors for the QB2 project that would impair their ability to provide goods and services as anticipated during
remaining commissioning and ramp-up activities. Statements regarding the availability of our credit facilities are based on
assumptions that we will be able to satisfy the conditions for borrowing at the time of a borrowing request and that the facilities
are not otherwise terminated or accelerated due to an event of default. Assumptions regarding the costs and benefits of our
projects include assumptions that the relevant project is constructed, commissioned and operated in accordance with current
expectations. Expectations regarding our operations are based on numerous assumptions regarding the operations. Our Guidance
tables include disclosure and footnotes with further assumptions relating to our guidance, and assumptions for certain other
forward-looking statements accompany those statements within the document. Statements concerning future production costs
or volumes are based on numerous assumptions regarding operating matters and on assumptions that demand for products
develops as anticipated, that customers and other counterparties perform their contractual obligations, that operating and capital
plans will not be disrupted by issues such as mechanical failure, unavailability of parts and supplies, labour disturbances, interruption
in transportation or utilities, or adverse weather conditions, and that there are no material unanticipated variations in the cost of
energy or supplies. Statements regarding anticipated steelmaking coal sales volumes and average steelmaking coal prices
depend on timely arrival of vessels and performance of our steelmaking coal-loading facilities, as well as the level of spot pricing
sales. The foregoing list of assumptions is not exhaustive. Events or circumstances could cause actual results to vary materially.
Factors that may cause actual results to vary materially include, but are not limited to, changes in commodity and power prices;
changes in market demand for our products; changes in interest and currency exchange rates; acts of governments and the
outcome of legal proceedings; inaccurate geological and metallurgical assumptions (including with respect to the size, grade and
recoverability of mineral reserves and resources); operational difficulties (including failure of plant, equipment or processes to
operate in accordance with specifications or expectations, cost escalation, unavailability of labour, materials and equipment,
government action or delays in the receipt of government approvals, changes in royalty or tax rates, industrial disturbances or
other job action, adverse weather conditions and unanticipated events related to health, safety and environmental matters); union
labour disputes; any resurgence of COVID-19 and related mitigation protocols; political risk; social unrest; failure of customers or
counterparties (including logistics suppliers) to perform their contractual obligations; changes in our credit ratings; unanticipated
increases in costs to construct our development projects; difficulty in obtaining permits; inability to address concerns regarding
permits or environmental impact assessments; and changes or further deterioration in general economic conditions. The amount
and timing of capital expenditures is depending upon, among other matters, being able to secure permits, equipment, supplies,
materials and labour on a timely basis and at expected costs. Certain operations and projects are not controlled by us; schedules
and costs may be adjusted by our partners, and timing of spending and operation of the operation or project is not in our control.
Certain of our other operations and projects are operated through joint arrangements where we may not have control over all
decisions, which may cause outcomes to differ from current expectations. Current and new technologies relating to our Elk Valley
water treatment efforts may not perform as anticipated, and ongoing monitoring may reveal unexpected environmental
conditions requiring additional remedial measures. QB2 costs, commissioning and commercial production are dependent on,
among other matters, our continued ability to advance commissioning and ramp-up as currently anticipated, including any
impacts of absenteeism and lowered productivity. QB2 costs may also be affected by claims and other proceedings that might be
brought against us relating to costs and impacts of the COVID-19 pandemic. Production at our Red Dog Operations may also be
impacted by water levels at site. Sales to China may be impacted by general and specific port restrictions, Chinese regulation and
policies, and normal production and operating risks. The forward-looking statements in this document and actual results will also
be impacted by the continuing effects of COVID-19 and related matters, particularly if there is a further resurgence of the virus.
We assume no obligation to update forward-looking statements except as required under securities laws. Further information
concerning risks, assumptions and uncertainties associated with these forward-looking statements and our business can be
found in our Annual Information Form for the year ended December 31, 2023, filed under our profile on SEDAR+ (www.sedarplus.ca)
and on EDGAR (www.sec.gov) under cover of Form 40-F, as well as subsequent filings that can also be found under our profile.
Scientific and technical information in this quarterly report regarding our coal properties, which for this purpose does not include the
discussion under “Elk Valley Water Management Update” was reviewed, approved and verified by Jo-Anna Singleton, P.Geo. and
Cameron Feltin, P.Eng., each an employee of Teck Coal Limited and a Qualified Person as defined under National Instrument 43-101.
Scientific and technical information in this quarterly report regarding our other properties was reviewed, approved and verified by
Rodrigo Alves Marinho, P.Geo., an employee of Teck and a Qualified Person as defined under National Instrument 43-101.
66 Teck 2023 Annual Report
CONSOLIDATED
FINANCIAL STATEMENTS
For the Years Ended December 31, 2023 and 2022
Consolidated Financial Statements
67
Management’s Responsibility for
Financial Reporting
Management is responsible for the integrity and fair presentation of the financial information contained in this annual
report. Where appropriate, the financial information, including financial statements, reflects amounts based on the best
estimates and judgments of management. The financial statements have been prepared in accordance with IFRS®
Accounting Standards as issued by the International Accounting Standards Board. Financial information presented
elsewhere in the annual report is consistent with that disclosed in the financial statements.
Management is responsible for establishing and maintaining adequate internal control over financial reporting. Any system
of internal control over financial reporting, no matter how well-designed, has inherent limitations. Therefore, even those
systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation
and presentation. The system of controls is also supported by a professional staff of internal auditors who conduct periodic
audits of many aspects of our operations and report their findings to management and the Audit Committee.
Management has a process in place to evaluate internal control over financial reporting based on the criteria established
by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) 2013 framework.
The Board of Directors oversees management’s responsibility for financial reporting and internal control systems through
an Audit Committee, which is composed entirely of independent directors. The Audit Committee meets periodically with
management, our internal auditors and independent auditors to review the scope and results of the annual audit, and to
review the financial statements and related financial reporting and internal control matters before the financial statements
are approved by the Board of Directors and submitted to the shareholders.
PricewaterhouseCoopers LLP, an independent registered public accounting firm, appointed by the shareholders, have
audited our financial statements in accordance with the standards of the Public Company Accounting Oversight Board
(United States) and have expressed their opinion in the Report of Independent Registered Public Accounting Firm.
Jonathan H. Price
President and Chief Executive Officer
Crystal J. Prystai
Senior Vice President and Chief Financial Officer
February 22, 2024
68
Teck 2023 Annual Report
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors of Teck Resources Limited
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidated balance sheets of Teck Resources Limited and its subsidiaries
(together, the Company) as of December 31, 2023 and 2022, and the related consolidated statements of income,
comprehensive income, changes in equity and cash flows for the years then ended, including the related notes
(collectively referred to as the consolidated financial statements). We also have audited the Company’s internal control
over financial reporting as of December 31, 2023, based on criteria established in Internal Control – Integrated Framework
(2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the
financial position of the Company as of December 31, 2023 and 2022, and its financial performance and its cash flows
for the years then ended in conformity with IFRS Accounting Standards as issued by the International Accounting
Standards Board. Also in our opinion, the Company maintained, in all material respects, effective internal control over
financial reporting as of December 31, 2023, based on criteria established in Internal Control – Integrated Framework
(2013) issued by the COSO.
Basis for Opinions
The Company’s management is responsible for these consolidated financial statements, for maintaining effective
internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial
reporting, included in Management’s Report on Internal Control over Financial Reporting, appearing in Management’s
Discussion and Analysis. Our responsibility is to express opinions on the Company’s consolidated financial statements
and on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm
registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be
independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules
and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and
perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of
material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting
was maintained in all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material
misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that
respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and
disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the
consolidated financial statements. Our audit of internal control over financial reporting included obtaining an
understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and
testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our
audits also included performing such other procedures as we considered necessary in the circumstances. We believe
that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles. A company’s internal control over financial reporting includes those
policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of the company are being made only in
Consolidated Financial Statements
69
accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance
regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that
could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current period audit of the consolidated
financial statements that were communicated or required to be communicated to the audit committee and that (i)
relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our
especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter
in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating
the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or
disclosures to which they relate.
Management’s Assessment of Whether the Steelmaking Coal Business Should be Classified as Held for Sale
As described in Notes 4, 6 and 30 to the consolidated financial statements, in the fourth quarter of 2023,
management announced an agreement to sell the Company’s interest in its steelmaking coal business, through a sale
of the majority interest to Glencore plc (Glencore). Closing of the sale of the majority interest to Glencore remains
subject to receipt of competition approvals in several jurisdictions and approvals under the Investment Canada Act. As
of December 31, 2023, the total assets of the steelmaking coal business were $19,364 million. In order to be classified
as held for sale, a non-current asset or disposal group must be available for immediate disposal, by sale or otherwise,
in its present condition subject only to terms that are usual and customary for sales of such assets and liabilities and
its sale must be highly probable. Management applied judgment in assessing whether the steelmaking coal business
should be considered as held for sale as of December 31, 2023, which included considering the likelihood of obtaining
requisite regulatory, stakeholder and political approvals. Management believes that the timing and outcome of these
approval processes is not known with sufficient certainty and as such, management was not in a position to conclude
that receipt of requisite approvals, and thus closing of the sale, is highly probable. Therefore, management determined
that the steelmaking coal business did not meet the criteria to be classified as held for sale as of December 31, 2023.
The principal considerations for our determination that performing procedures relating to management’s assessment
of whether the steelmaking coal business should be classified as held for sale is a critical audit matter are (i) significant
judgment by management when making this assessment, including assessing whether it is highly probable that the
sale will receive all necessary approvals, and (ii) a high degree of auditor judgment, subjectivity and effort in performing
procedures and evaluating audit evidence related to the probability that the sale will receive all necessary approvals.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our
overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of
controls relating to management’s assessment of whether the steelmaking coal business should be classified as held
for sale, including controls over assessing the probability that the sale will receive all necessary approvals. These
procedures also included, among others, evaluating the reasonableness of management’s assessment of whether the
steelmaking coal business should be classified as held for sale as of December 31, 2023, by evaluating (i) written
agreements between the parties related to the sale, (ii) public statements by the Company, (iii) applicable regulations,
(iv) relevant regulatory precedents, (v) available public commentary and (vi) information prepared by management’s
external advisors.
Goodwill Impairment Tests for the Steelmaking Coal Group of Cash Generating Units (the Steelmaking Coal CGUs)
As described in Notes 3, 4, 6, 9 and 18 to the consolidated financial statements, management performs its annual
goodwill impairment test as of October 31 of each year, or when there is an indication that the goodwill may be
impaired. An impairment loss exists if the cash generating unit (CGU) or group of CGUs’ carrying amount, including
goodwill, exceeds its recoverable amount. The total carrying value of the steelmaking coal goodwill allocated to the
70
Teck 2023 Annual Report
steelmaking coal CGUs as of December 31, 2023 was $702 million. In November 2023, management entered into an
agreement to sell the Company’s interest in the steelmaking coal CGUs and estimated the recoverable amount of the
steelmaking coal CGUs based on the present value of the agreed-upon cash proceeds from the sale transactions, plus
the expected discounted cash flows from the steelmaking coal CGUs until expected closing of the sale of the majority
interest to Glencore. As of December 31, 2023, as a result of the strengthening of the Canadian dollar against the U.S.
dollar affecting the Canadian dollar equivalent of the expected consideration to be received in the sale of the Company’s
interest in the steelmaking coal CGUs, management performed an additional impairment test for the steelmaking coal
CGUs. Management updated the estimated recoverable amount based on the consideration expected to be received,
consistent with the annual goodwill testing performed as at October 31, 2023. At both dates, the recoverable amounts
of the steelmaking coal CGUs exceeded the carrying value, and as a result, no impairment loss was recognized by
management. Significant assumptions are used by management in the recoverable amount calculations, which
include: the steelmaking coal price, coal sales volumes, operating costs and foreign exchange rates.
The principal considerations for our determination that performing procedures relating to the goodwill impairment
tests for the steelmaking coal CGUs is a critical audit matter are (i) significant judgment by management when
determining the recoverable amounts of the steelmaking coal CGUs; (ii) a high degree of auditor judgment,
subjectivity and effort in performing procedures to evaluate significant assumptions used in the recoverable amount
calculations, relating to steelmaking coal price, coal sales volumes, operating costs and foreign exchange rates; and
(iii) the audit effort involved the use of professionals with specialized skills and knowledge.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our
overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of
controls relating to management’s goodwill impairment tests, including controls over the determination of the
recoverable amounts of the steelmaking coal CGUs. These procedures also included, among others, testing
management’s process for determining the recoverable amounts of the steelmaking coal CGUs, including evaluating
the appropriateness of the recoverable amount calculations, testing the completeness and accuracy of underlying
data and evaluating the reasonableness of the significant assumptions used in the recoverable amount calculations.
Evaluating the reasonableness of management’s assumptions involved considering their consistency with: (i) external
market and industry data for steelmaking coal prices and foreign exchange rates, and (ii) current and past
performance of the steelmaking coal CGUs for coal sales volumes and operating costs.
Goodwill Impairment Test for the Quebrada Blanca Cash Generating Unit (the QB CGU)
As described in Notes 3, 4, 9 and 18 to the consolidated financial statements, management performs its annual
goodwill impairment test as of October 31 of each year, or when there is an indication that the goodwill may be
impaired. An impairment loss exists if the CGU’s carrying amount, including goodwill, exceeds its recoverable amount.
The total carrying value of the goodwill allocated to the QB CGU as of December 31, 2023 was $406 million.
Management used a discounted cash flow model with an estimate of the in situ value applied to the remaining
resources to determine the recoverable amount of the QB CGU. The recoverable amount of the QB CGU exceeded the
carrying value, and as a result, no impairment loss was recognized by management. Significant assumptions are used
in the determination of the recoverable amount, which include: commodity prices, mineral reserves and resources,
mine production, operating costs, capital expenditures, the discount rate, and the fair value per pound of copper
equivalent used in the determination of the in situ value. The mineral reserves and resources, mine production and
capital expenditures for the QB CGU have been prepared by or under the supervision of qualified persons and
management’s experts (management’s specialists).
The principal considerations for our determination that performing procedures relating to the goodwill impairment test
for the QB CGU is a critical audit matter are (i) significant judgment by management when determining the recoverable
amount of the QB CGU; (ii) management’s specialists were used to estimate the reserves and resources, mine
production and capital expenditures; and (iii) a high degree of auditor judgment, subjectivity and effort in performing
procedures to evaluate significant assumptions used in the determination of the recoverable amount, relating to
commodity prices, mineral reserves and resources, mine production, operating costs, capital expenditures, the
discount rate and the fair value per pound of copper equivalent used in the determination of the in situ value; and (iv)
the audit effort involved the use of professionals with specialized skills and knowledge.
Consolidated Financial Statements
71
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our
overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of
controls relating to management’s QB CGU goodwill impairment test, including controls over the determination of the
recoverable amount of the QB CGU. These procedures also included, among others, testing management’s process
for determining the recoverable amount of the QB CGU, including evaluating the appropriateness of the discounted
cash flow model and the in situ fair value approach, testing the completeness and accuracy of underlying data and
evaluating the reasonableness of the significant assumptions used in the determination of the recoverable amount.
Evaluating the reasonableness of management’s assumptions involved considering their consistency with (i) external
market and industry data for commodity prices, (ii) recent actual capital expenditures incurred for capital
expenditures, (iii) recent actual operating expenditures incurred as well as market and industry data for operating costs
and (iv) other third party information for mine production. The work of management’s specialists was used in
performing the procedures to evaluate the reasonableness of mineral reserves and resources, mine production and
capital expenditures. As a basis for using this work, management’s specialists’ qualifications were understood and the
Company’s relationship with management’s specialists was assessed. The procedures performed also included
evaluation of the methods and assumptions used by management’s specialists, tests of the data used by management’s
specialists, and an evaluation of their findings. Professionals with specialized skill and knowledge were used to assist
in the evaluation of the reasonableness of the discount rate and the fair value per pound of copper equivalent.
/s/PricewaterhouseCoopers LLP
Chartered Professional Accountants
Vancouver, Canada
February 22, 2024
We have served as the Company's auditor since 1964.
72 Teck 2023 Annual Report
Consolidated Statements of Income Years ended December 31
(CAD$ in millions, except for share data)
Revenue (Note 7)
Cost of sales
Gross profit
Other operating income (expenses)
General and administration
Exploration
Research and innovation
Other operating income (expense) (Note 10)
Profit from operations
Finance income (Note 11)
Finance expense (Note 11)
Non-operating income (expense) (Note 12)
Share of profit of joint venture (Note 16)
Profit from continuing operations before taxes
Provision for income taxes from continuing operations (Note 23(a))
Profit from continuing operations
Loss from discontinued operations (Note 5)
2023
2022
$
15,011
$
17,316
(9,868)
5, 143
(317)
(86)
(164)
(206)
4,370
112
(274)
(266)
2
3,944
(1,610)
2,334
(26)
(8,745)
8 , 5 7 1
(236)
(90)
(157)
(1,102)
6,986
53
(203)
(275)
4
6,565
(2,495)
4,070
(772)
Profit for the year
$
2,308
$
3,298
Profit (loss) from continuing operations attributable to:
Shareholders of the company
Non-controlling interests
Profit from continuing operations for the year
Profit (loss) attributable to:
Shareholders of the company
Non-controlling interests
Profit for the year
Earnings per share from continuing operations
Basic
Diluted
Loss per share from discontinued operations
Basic and diluted
Earnings per share
Basic
Diluted
Weighted average shares outstanding (millions)
Weighted average diluted shares outstanding (millions)
Shares outstanding at end of year (millions)
The accompanying notes are an integral part of these financial statements.
$
2,435
(101)
$
4,089
(19)
$
2,334
$
4,070
$
2,409
(101)
$
3 , 3 17
(19)
$
2,308
$
3,298
$
$
$
$
$
4.70
4.64
$
$
7.7 7
7.63
(0.05)
$
(1.47)
$
$
4.65
4.59
517.8
525.3
517.3
6.30
6 . 19
526.7
535.9
513.7
Consolidated Financial Statements
73
Consolidated Statements of Comprehensive Income Years ended December 31
(CAD$ in millions)
Profit for the year
2023
2022
$
2,308
$
3,298
Other comprehensive income (loss) for the year
Items that may be reclassified to profit
Currency translation differences (net of taxes of $(9) and $9)
Change in fair value of debt securities (net of taxes of $nil and $nil)
Share of other comprehensive income of joint venture
Items that will not be reclassified to profit
Change in fair value of marketable equity securities (net of taxes of $1 and $(14))
Remeasurements of retirement benefit plans (net of taxes of $(68) and $13)
Total other comprehensive income (loss) for the year
(383)
1
–
(382)
(5)
151
146
(236)
826
(3)
1
824
96
(45)
51
875
Total comprehensive income for the year
$
2,072
$
4, 173
Total comprehensive income (loss) attributable to:
Shareholders of the company
Non-controlling interests
Total comprehensive income (loss) attributable to shareholders
of the company from:
Continuing operations
Discontinued operations
The accompanying notes are an integral part of these financial statements.
2 , 1 91
(119)
4,132
41
$
2,072
$
4, 173
2 , 2 17
(26)
4,904
(772)
$
2 , 1 91
$
4,132
74 Teck 2023 Annual Report
Consolidated Statements of Cash Flows Years ended December 31
(CAD$ in millions)
2023
2022
Operating activities
Profit for the year from continuing operations
Depreciation and amortization
Provision for income taxes from continuing operations
Gain on disposal or contribution of assets
Loss on debt redemption or purchase
Net finance expense
Income taxes paid
Remeasurement of decommissioning and restoration provisions for closed operations
QB2 variable consideration to IMSA and ENAMI
Other
Net change in non-cash working capital items
$
Net cash provided by continuing operating activities
Net cash provided by discontinued operating activities
Investing activities
Expenditures on property, plant and equipment
Capitalized production stripping costs
Expenditures on investments and other assets
Proceeds from sale of Fort Hills
Proceeds from investments and assets
Net cash used in continuing investing activities
Net cash used in discontinued investing activities
Financing activities
Proceeds from debt
Redemption, purchase or repayment of debt
Repayment of lease liabilities
QB2 advances from SMM/SC
Interest and finance charges paid
Issuance of Class B subordinate voting shares
Purchase and cancellation of Class B subordinate voting shares
Dividends paid
Contributions from non-controlling interests
Distributions to non-controlling interests
Other liabilities
Net cash used in continuing financing activities
Net cash used in discontinued financing activities
Increase (decrease) in cash and cash equivalents
Change in cash classified as held for sale
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at beginning of year
2,334
1 ,931
1,610
(273)
–
162
(990)
103
156
41
(990)
4,084
–
4,084
(4,678)
(1,104)
(137)
1,014
162
(4,743)
(14)
(4,757)
230
(710)
(160)
1,292
(753)
63
(250)
(515)
439
(54)
(48)
(466)
(3)
(469)
(1 ,142)
35
(32)
1,883
$
4,070
1 ,674
2,495
(21)
58
150
(1 , 217)
83
188
168
(107)
7,5 41
442
7,983
(4,423)
(1,042)
(199)
–
113
(5,551)
(129)
(5,680)
569
(1,323)
(138)
899
(459)
234
(1,392)
(532)
307
(78)
(46)
(1,959)
(31)
(1,990)
313
(35)
178
1 ,427
Cash and cash equivalents at end of year
$
744
$
1,883
Supplemental cash flow information (Note 13)
The accompanying notes are an integral part of these financial statements.
Consolidated Financial Statements
75
2023
2022
$
744
94
2,096
2,946
585
–
6,465
–
1,874
1 , 1 16
45,565
65
1,108
$
1,883
92
1,527
2,685
540
1,566
8,293
173
1,466
1 ,139
40,095
75
1 , 1 1 8
$ 56,193
$
52,359
$
4,001
515
195
1 , 1 81
–
5,892
6,019
866
3,497
6,188
445
4,994
$
4,367
616
132
104
645
5,864
6,551
439
2,279
6,7 78
420
3 , 517
27,901
25,848
26,988
1,304
28,292
25,473
1,038
2 6 , 5 1 1
$ 56,193
$
52,359
Consolidated Balance Sheets As at December 31
(CAD$ in millions)
ASSETS
Current assets
Cash and cash equivalents (Note 13)
Current income taxes receivable
Trade and settlement receivables
Inventories (Note 14)
Prepaids and other current assets
Assets held for sale (Note 5)
Non-current assets held for sale (Note 5)
Financial and other assets (Note 15)
Investment in joint venture (Note 16)
Property, plant and equipment (Note 17)
Deferred income tax assets (Note 23(b))
Goodwill (Note 18)
LIABILITIES AND EQUITY
Current liabilities
Trade accounts payable and other liabilities (Note 19)
Current portion of debt (Note 20)
Current portion of lease liabilities (Note 21(c))
Current income taxes payable
Liabilities associated with assets held for sale (Note 5)
Debt (Note 20)
Lease liabilities (Note 21(c))
QB2 advances from SMM/SC (Note 22)
Deferred income tax liabilities (Note 23(b))
Retirement benefit liabilities (Note 24(a))
Provisions and other liabilities (Note 25)
Equity
Attributable to shareholders of the company
Attributable to non-controlling interests (Note 27)
Contingencies (Note 28)
Commitments (Note 29)
The accompanying notes are an integral part of these financial statements.
Approved on behalf of the Board of Directors
Una M. Power
Chair of the Audit Committee
Tracey L. McVicar
Director
76 Teck 2023 Annual Report
Consolidated Statements of Changes in Equity Years ended December 31
(CAD$ in millions)
Class A common shares
Class B subordinate voting shares
Beginning of year
Share repurchases (Note 26(i))
Issued on exercise of options
Issued on dual class amendment (Note 26(b))
End of year
Retained earnings
Beginning of year
Profit for the year attributable to shareholders of the company
Dividends paid (Note 26(h))
Share repurchases (Note 26(i))
Shares issued on dual class amendment (Note 26(b))
Remeasurements of retirement benefit plans
End of year
Contributed surplus
Beginning of year
Share option compensation expense (Note 26(d))
Transfer to Class B subordinate voting shares on exercise of options
End of year
Accumulated other comprehensive income attributable
to shareholders of the company (Note 26(f))
Beginning of year
Other comprehensive income (loss)
Less remeasurements of retirement benefit plans recorded in retained earnings
End of year
Non-controlling interests (Note 27)
Beginning of year
Loss for the year attributable to non-controlling interests
Other comprehensive income (loss) attributable to non-controlling interests
Contributions from non-controlling interests
Distributions to non-controlling interests
End of year
Total equity
The accompanying notes are an integral part of these financial statements.
2023
2022
$
6
$
6
6,133
(60)
83
302
6,458
18,065
2,409
(515)
(190)
(302)
151
6,201
(374)
306
–
6,133
16,343
3 , 3 17
(532)
(1,018)
–
(45)
19,618
18,065
207
26
(20)
213
1,062
(218)
(151)
693
1,038
(101)
(18)
439
(54)
1,304
253
26
(72)
207
202
815
45
1,062
768
(19)
60
307
(78)
1,038
$
28,292
$
2 6 , 5 1 1
Consolidated Financial Statements
77
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
1. Nature of Operations
Teck Resources Limited and its subsidiaries (Teck, we, us or our) are engaged in mining and related activities including
research, exploration and development, processing, smelting, refining and reclamation. Our major products are
copper, zinc, and steelmaking coal. We also produce lead, precious metals, molybdenum, fertilizers and other metals.
Metal products are sold as refined metals or concentrates.
Teck is a Canadian corporation and our registered office is at Suite 3300, 550 Burrard Street, Vancouver, British
Columbia, Canada, V6C 0B3.
2. Basis of Preparation and New IFRS Accounting Standards Pronouncements
a) Basis of Preparation
These annual consolidated financial statements have been prepared by management in accordance with IFRS®
Accounting Standards as issued by the International Accounting Standards Board (IASB) (IFRS Accounting Standards)
and were approved by the Board of Directors on February 22, 2024.
b) New IFRS Accounting Standards Pronouncements
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 – Interest Rate Benchmark Reform – Phase 2
In August 2020, the IASB issued amendments to IFRS 9, Financial Instruments (IFRS 9), IAS 39, Financial Instruments:
Recognition and Measurement, IFRS 7, Financial Instruments: Disclosures, IFRS 4, Insurance Contracts and IFRS 16, Leases
as a result of Phase 2 of the IASB’s Interest Rate Benchmark Reform project. The amendments address issues arising
in connection with reform of benchmark interest rates, including the replacement of one benchmark rate with an
alternative one. The amendments were effective January 1, 2021.
Term Secured Overnight Financing Rate (Term SOFR) was formally recommended by the Alternative Reference Rates
Committee (a committee convened by the U.S. Federal Reserve Board) as the recommended fallback for USD London
Interbank Offered Rate (LIBOR) based loans. Term SOFR is expected to be largely equivalent on an economic basis to
LIBOR, allowing for use of the practical expedient under IFRS 9. Our Quebrada Blanca Phase 2 project (QB2) financing
facility, Compañía Minera Antamina S.A. (Antamina) loan agreement and QB2 advances from Sumitomo Metal Mining
Co., Ltd. and Sumitomo Corporation (together referred to as SMM/SC) are our most significant financial instruments
that were exposed to LIBOR.
We transitioned our sustainability-linked revolving credit facility to Term SOFR in 2022. This did not affect our financial
statements as this credit facility remains undrawn. We transitioned the remaining financial instruments that used
LIBOR settings to Term SOFR in the second quarter of 2023. The transition did not result in a significant change to our
financial statements, our interest rate risk management strategy or our interest rate risk.
Amendment to IAS 1 and IFRS Practice Statement 2 – Disclosure of Accounting Policies
We adopted the amendments to IAS 1, Presentation of Financial Statements (IAS 1) on January 1, 2023 with prospective
application. The amendments to IAS 1 replace the requirement to disclose “significant” accounting policies with a
requirement to disclose “material” accounting policies. The adoption of these amendments has been reflected in the
accounting policy information disclosed.
We also referenced the amended IFRS Practice Statement 2 Making Materiality Judgements in application of the
amendments to IAS 1.
78 Teck 2023 Annual Report
Amendments to IAS 7 and IFRS 7 – Supplier Finance Arrangements
In May 2023, the IASB issued amendments to IAS 7, Statement of Cash Flows and IFRS 7, Financial Instruments:
Disclosures to provide guidance on disclosures related to supplier finance arrangements that enable users of financial
statements to assess the effects of these arrangements on the entity’s liabilities and cash flows and on the entity’s
exposure to liquidity risk. The amendments are effective for annual periods beginning on or after January 1, 2024, with
early adoption permitted.
We have chosen to early adopt these amendments effective for annual reporting periods beginning on or after
January 1, 2023. The adoption of these amendments did not have a material effect on our annual financial statements.
Amendments to IAS 12 – International Tax Reform – Pillar Two Model Rules
In May 2023, the IASB issued amendments to IAS 12, Income Taxes (IAS 12), to clarify the application of IAS 12 to income
taxes arising from tax law enacted or substantively enacted to implement the Organisation for Economic Co-operation
and Development (OECD)/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) Pillar Two Model rules.
Effective immediately upon release, the amendments introduced a mandatory temporary exception to the accounting
for deferred taxes arising from the implementation of Pillar Two Model rules which an entity must disclose if it has
applied the exception. In addition, effective for annual reporting periods beginning on or after January 1, 2023,
disclosure is required to help users of the entity’s financial statements to better understand the entity’s exposure to
Pillar Two income taxes.
In Canada, draft legislation to implement the Global Minimum Tax Act (GMTA) within the framework of the OECD’s
Pillar Two Model rules was released in August 2023 for public consultation but as of December 31, 2023, the GMTA
has not been substantively enacted. Based on Pillar Two legislation already enacted in the United Kingdom, Ireland,
and Japan, where we have ancillary operations, there is no exposure to any material Pillar Two taxes.
Amendments to IAS 1 – Presentation of Financial Statements
In October 2022, the IASB issued amendments to IAS 1, Presentation of Financial Statements titled Non-current Liabilities
with Covenants. These amendments sought to improve the information that an entity provides when its right to defer
settlement of a liability is subject to compliance with covenants within 12 months after the reporting period. These
amendments to IAS 1 override and incorporate the previous amendments, Classification of Liabilities as Current or
Non-current, issued in January 2020, which clarified that liabilities are classified as either current or non-current,
depending on the rights that exist at the end of the reporting period. Liabilities should be classified as non-current if
a company has a substantive right to defer settlement for at least 12 months at the end of the reporting period. The
amendments are effective January 1, 2024, with early adoption permitted. Retrospective application is required on
adoption. We do not expect these amendments to have a material effect on our financial statements.
3. Material Accounting Policy Information
The material accounting policies applied in the preparation of these consolidated financial statements are set out
below. These policies have been consistently applied to all periods presented, unless otherwise stated.
Basis of Presentation
Our consolidated financial statements include the accounts of Teck and all of its subsidiaries. Our significant operating
subsidiaries include Teck Metals Ltd. (TML), Teck Alaska Incorporated (TAK), Teck Highland Valley Copper Partnership
(Highland Valley Copper), Teck Coal Partnership (Teck Coal), Compañía Minera Teck Quebrada Blanca S.A. (QBSA or
Quebrada Blanca) and Compañía Minera Teck Carmen de Andacollo (Carmen de Andacollo).
All subsidiaries are entities that we control, either directly or indirectly. Certain of our business activities are conducted
through joint arrangements. Our interests in joint operations include Galore Creek Partnership (Galore Creek, 50% share)
Consolidated Financial Statements
79
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
3. Material Accounting Policy Information (continued)
in Canada; Antamina (22.5% share) in Peru; Minas de San Nicolás, S.A.P.I. de C.V. (San Nicolás, 91% share) in Mexico; and
NewRange Copper Nickel LLC (NewRange, 50% share) in the U.S. We account for our interests in these joint operations
by recording our share of the respective assets, liabilities, revenue, expenses and cash flows. We also have an interest in
a joint venture, NuevaUnión SpA (NuevaUnión, 50% share) in Chile that we account for using the equity method (Note 16).
During the year ended December 31, 2022, we determined that Fort Hills met the criteria to be considered as assets
held for sale. We therefore classified the assets of Fort Hills as current assets held for sale, the liabilities of Fort Hills as
current liabilities associated with assets held for sale and re-presented the operating results of Fort Hills as a single
line item of loss from discontinued operations on the statement of income (Note 5). The transaction closed on
February 2, 2023.
All dollar amounts are presented in Canadian dollars unless otherwise specified.
Interests in Joint Operations and Joint Ventures
We are party to joint arrangements where we have joint control, which is when decisions about the activities that
significantly affect the returns of the investee require unanimous consent of the parties sharing control. We have joint
arrangements structured through separate vehicles and classified as joint operations, where the parties have rights to
the assets and obligations for the liabilities relating to the arrangement. In these instances, we assessed the legal form
of the separate vehicle, the terms of the contractual arrangement, and relevant other facts and circumstances.
Regarding other facts and circumstances, we have determined that an arrangement is a joint operation if the
arrangement is primarily designed for the provision of output to the parties, and that the liabilities incurred by the
arrangement are, in substance, satisfied by the cash flows received from the parties through their purchases of the
output. Joint operations are accounted for by recording our share of the respective assets, liabilities, revenue,
expenses and cash flows.
We also have a joint arrangement structured through a separate vehicle that is classified as a joint venture. Joint
ventures are accounted for as investments using the equity method.
Foreign Currency Translation
The functional currency of Teck, the parent entity, is the Canadian dollar, which is also the presentation currency of our
consolidated financial statements.
Foreign operations are translated from their functional currencies, generally the U.S. dollar, into Canadian dollars on
consolidation. Items in the statements of income and other comprehensive income (loss) are translated using
weighted average exchange rates that reasonably approximate the exchange rate at the transaction date. Items on the
balance sheet are translated at the closing spot exchange rate. Exchange differences on the translation of the net
assets of entities with functional currencies other than the Canadian dollar, and any offsetting exchange differences
on debt used to hedge those assets, are recognized in a separate component of equity through other comprehensive
income (loss).
Revenue
Our revenue consists of sales of copper, zinc and lead concentrates, steelmaking coal, refined zinc, lead and silver. We
also sell other by-products, including molybdenum concentrates, various refined specialty metals, chemicals and
fertilizers. Our performance obligations relate primarily to the delivery of these products to our customers, with each
separate shipment representing a separate performance obligation.
Revenue, including revenue from the sale of by-products, is recognized at the point in time when the customer obtains
control of the product. Control is achieved when a product is delivered to the customer, we have a present right to
payment for the product, significant risks and rewards of ownership have transferred to the customer according to
contract terms and there is no unfulfilled obligation that could affect the customer’s acceptance of the product.
80 Teck 2023 Annual Report
Base metal concentrates
For copper, zinc and lead concentrates, control of the product generally transfers to the customer when an individual
shipment parcel is loaded onto a carrier accepted by the customer. A minority of zinc concentrate sales are made on
consignment. For consignment transactions, control of the product transfers to the customer and revenue is
recognized at the time the product is consumed in the customer’s process.
The majority of our metal concentrates are sold under pricing arrangements where final prices are determined by
quoted market prices in a period subsequent to the date of sale. For these sales, revenue is recorded based on the
estimated consideration to be received at the date of sale, with reference to relevant commodity market prices.
Adjustments are made to settlement receivables in subsequent periods based on movements in quoted commodity
prices up to the date of final pricing. This adjustment mechanism is based on the market price of the commodity and,
accordingly, the changes in value of the settlement receivables are not considered to be revenue from contracts with
customers. The changes in fair value of settlement receivables related to price changes are recorded in other
operating income (expense).
Metal concentrate sales are billed based on provisional weights and assays upon the passage of control to the
customer. The first provisional invoice is billed to the customer at the time of transfer of control. As final prices,
weights and assays are received, additional invoices are issued and cash is collected. In general, consideration is
promptly collected from customers; however, the payment terms are customer-specific and subject to change based
on market conditions and other factors. We generally retain title to these products until we receive the first contracted
payment, which is typically received shortly after loading or shortly after arrival at the destination port, solely to
manage the credit risk of the amounts due to us. This retention of title does not preclude the customer from obtaining
control of the product.
Steelmaking coal
For steelmaking coal, control of the product generally transfers to the customer when an individual shipment parcel is
loaded onto a carrier accepted by or directly contracted by the customer. For a majority of steelmaking coal sales, we
are not responsible for the provision of shipping or product insurance after the transfer of control. For certain sales, we
arrange shipping on behalf of our customers and are the agent to these shipping transactions.
Steelmaking coal is sold under spot or average pricing contracts. For spot price contracts, pricing is final when revenue
is recognized. For average pricing contracts, the final pricing is determined based on quoted steelmaking coal price
assessments over a specific period. Control of the goods may transfer and revenue may be recognized before, during
or subsequent to the period in which final average pricing is determined. For all steelmaking coal sales under average
pricing contracts where pricing is not finalized when revenue is recognized, revenue is recorded based on estimated
consideration to be received at the date of sale with reference to steelmaking coal price assessments. For average
pricing contracts, adjustments are made to settlement receivables in subsequent periods based on published price
assessments up to the date of final pricing. This adjustment mechanism is based on the market price of the commodity
and, accordingly, the changes in value of the settlement receivables are not considered to be revenue from contracts
with customers. The changes in fair value of settlement receivables are recorded in other operating income (expense).
Steelmaking coal sales are billed based on final quality and quantity measures upon the passage of control to the
customer. If pricing is not finalized when control of the product is transferred, a subsequent invoice is issued when
pricing is finalized. The payment terms generally require prompt collection from customers; however, payment terms
are customer-specific and subject to change based on market conditions and other factors. We generally retain title to
these products until we receive the first contracted payment, which is typically received shortly after loading, solely to
manage the credit risk of the amounts due to us. This retention of title does not preclude the customer from obtaining
control of the product.
Consolidated Financial Statements
81
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
3. Material Accounting Policy Information (continued)
Refined metals
For sales of refined metals, control of the product transfers to the customer when the product is loaded onto a carrier
accepted by the customer. For these products, loading generally coincides with the transfer of title.
Our refined metals are sold under spot or average pricing contracts. For spot sales contracts, pricing is final when
revenue is recognized. For refined metal sales contracts where pricing is not finalized when revenue is recognized,
revenue is recorded based on the estimated consideration to be received at the date of sale with reference to
commodity market prices. Adjustments are made to settlement receivables in subsequent periods based on
movements in quoted commodity prices up to the date of final pricing. This adjustment mechanism is based on the
market price of the commodity and, accordingly, the changes in value of the settlement receivables are not
considered to be revenue from contracts with customers. The changes in fair value of settlement receivables are
recorded in other operating income (expense).
We sell a portion of our refined metals on commercial terms where we are responsible for providing freight services
after the date at which control of the product passes to the customer. We are the principal to this freight performance
obligation.
Refined metal sales are billed based on final specification measures upon the passage of control to the customer. If
pricing is not finalized when control of the product is transferred, a subsequent invoice is issued when pricing is finalized.
In general, consideration is promptly collected from customers; however, the payment terms are customer-specific
and subject to change based on market conditions and other factors.
Financial Instruments
Cash and cash equivalents
Cash and cash equivalents include cash on account, demand deposits and money market investments with maturities
from the date of acquisition of three months or less, which are readily convertible to known amounts of cash and are
subject to insignificant changes in value. Cash is classified as a financial asset that is subsequently measured at
amortized cost. Cash equivalents are classified as a financial asset that is subsequently measured at amortized cost,
except for money market investments, which are classified as subsequently measured at fair value through profit (loss).
Trade receivables
Trade receivables relate to amounts owing from sales under our spot pricing contracts for steelmaking coal, refined
metals, blended bitumen, chemicals and fertilizers. These receivables are non-interest bearing and are recognized at
face amount, except when fair value is materially different, and are subsequently measured at amortized cost. Trade
receivables recorded are net of lifetime expected credit losses.
82 Teck 2023 Annual Report
Settlement receivables
Settlement receivables arise from base metal concentrate sales contracts and average pricing steelmaking coal
contracts, where amounts receivable vary based on underlying commodity prices or steelmaking coal price
assessments. Settlement receivables are classified as fair value through profit (loss) and are recorded at fair value
at each reporting period based on quoted commodity prices or published price assessments up to the date of final
pricing. The changes in fair value are recorded in other operating income (expense).
Investments in marketable equity securities
All of our investments in marketable equity securities are classified, at our election, as subsequently measured at fair
value through other comprehensive income (loss). Investment transactions are recognized on the trade date, with
transaction costs included in the underlying balance. Fair values are determined by reference to quoted market prices
at the balance sheet date.
When investments in marketable equity securities subsequently measured at fair value through other comprehensive
income (loss) are disposed of, the cumulative gains and losses recognized in other comprehensive income (loss) are
not recycled to profit (loss) and remain within equity. Dividends are recognized in profit (loss). These investments are
not assessed for impairment.
Investments in debt securities
Investments in debt securities are classified as subsequently measured at fair value through other comprehensive
income (loss) and recorded at fair value. Investment transactions are recognized on the trade date, with transaction
costs included in the underlying balance. Fair values are determined by reference to quoted market prices at the
balance sheet date.
Unrealized gains and losses on debt securities are recognized in other comprehensive income (loss) until investments
are disposed of and the cumulative gains and losses recognized in other comprehensive income (loss) are reclassified
from equity to profit (loss) at that time. Loss allowances and interest income are recognized in profit (loss).
Trade payables
Trade payables are non-interest bearing if paid when due and are recognized at face amount, except when fair value
is materially different. Trade payables are subsequently measured at amortized cost.
Debt
Debt is initially recorded at fair value, net of transaction costs. Debt is subsequently measured at amortized cost,
calculated using the effective interest rate method.
Derivative instruments
Derivative instruments, including embedded derivatives in executory contracts or financial liability contracts, are
classified as at fair value through profit (loss) and, accordingly, are recorded on the balance sheet at fair value.
Unrealized gains and losses on derivatives not designated in a hedging relationship are recorded as part of other
operating income (expense) or non-operating income (expense) in profit (loss) depending on the nature of the
derivative. Fair values for derivative instruments are determined using inputs based on market conditions existing
at the balance sheet date or settlement date of the derivative. Derivatives embedded in non-derivative contracts
are recognized separately unless they are closely related to the host contract.
Consolidated Financial Statements
83
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
3. Material Accounting Policy Information (continued)
Expected credit losses
For trade receivables, we apply the simplified approach to determining expected credit losses, which requires
expected lifetime losses to be recognized upon initial recognition of the receivables.
Loss allowances on investments in debt securities are initially assessed based on the expected 12-month credit loss.
At each reporting date, we assess whether the credit risk for our debt securities has increased significantly since initial
recognition. If the credit risk has increased significantly since initial recognition, the loss allowance is adjusted to be
based on the lifetime expected credit losses.
Hedging
For hedges of net investments in foreign operations, any foreign exchange gains or losses on the hedging instrument
relating to the effective portion of the hedge are initially recorded in other comprehensive income (loss). Gains and
losses are recognized in profit (loss) on the ineffective portion of the hedge, or when there is a disposition or partial
disposition of a foreign operation being hedged.
Inventories
Finished products, work in process, raw materials and supplies inventories are valued at the lower of weighted average
cost and net realizable value. Work in process inventory includes inventory in the milling, smelting or refining process and
stockpiled ore at mining operations. Raw materials include concentrates for use at smelting and refining operations.
For work in process and finished product inventories, cost includes all direct costs incurred in production, including
direct labour and materials, freight, depreciation and amortization and directly attributable overhead costs. Production
stripping costs that are not capitalized are included in the cost of inventories as incurred. Depreciation and
amortization of capitalized production stripping costs are included in the cost of inventory. For supplies inventories,
cost includes acquisition, freight and other directly attributable costs.
When our operations are producing at reduced levels, fixed overhead costs are only allocated to inventory based on
normal production levels.
When inventories have been written down to net realizable value, we make a new assessment of net realizable value in
each subsequent period. If the circumstances that caused the write-down no longer exist, the remaining amount of
the write-down on inventory not yet sold is reversed.
We use both joint-product and by-product costing for work in process and finished product inventories. Joint-product
costing is applied to primary products where the profitability of the operations is dependent upon the production of
these products. Joint-product costing allocates total production costs based on the relative values of the products.
By-product costing is used for products that are not the primary products produced by the operation. The by-products
are allocated only the incremental costs of processes that are specific to the production of that product.
Property, Plant and Equipment
Land, buildings, plant and equipment
Land is recorded at cost and buildings, plant and equipment are recorded at cost less accumulated depreciation and
impairment losses. Cost includes the purchase price and the directly attributable costs to bring the assets to the
location and condition necessary for them to be capable of operating in the manner intended by management.
Depreciation of mobile equipment, buildings used for production and plant and processing equipment at our mining
operations is calculated on a units-of-production basis. Depreciation of buildings not used for production and of plant
and equipment at our smelting operations is calculated on a straight-line basis over the assets’ estimated useful lives.
Where components of our assets have different useful lives, depreciation is calculated on each component separately.
84 Teck 2023 Annual Report
Depreciation commences when an asset is ready for its intended use. Estimates of remaining useful lives and residual
values are reviewed annually.
The expected useful lives of assets depreciated on a straight-line basis are as follows:
• Buildings and equipment (not used for production)
• Plant and equipment (smelting operations)
1–50 years
2–30 years
Mineral properties and mine development costs
The cost of acquiring and developing mineral properties or property rights, including pre-production waste rock
stripping costs related to mine development and costs incurred during production to increase future output, are
capitalized.
Waste rock stripping costs incurred in the production phase of a surface mine are recorded as capitalized production
stripping costs within property, plant and equipment when it is probable that the stripping activity will improve access
to the orebody, when the component of the orebody or pit to which access has been improved can be identified and
when the costs relating to the stripping activity can be measured reliably. When the actual waste-to-ore stripping ratio
in a period is greater than the expected life-of-component waste-to-ore stripping ratio for that component, the excess
is recorded as capitalized production stripping costs.
Once available for use, mineral properties and mine development costs are depreciated on a units-of-production basis
over the proven and probable reserves to which they relate. Since the stripping activity within a component of a mine
improves access to the reserves of the same component, capitalized production stripping costs incurred during the
production phase of a mine are depreciated on a units-of-production basis over the proven and probable reserves
expected to be mined from the same component.
Exploration and evaluation costs
Property acquisition costs are capitalized. Other exploration and evaluation costs are capitalized if they relate to
specific properties for which resources, as defined under National Instrument 43-101, Standards of Disclosure for
Mineral Projects, exist or are near a specific property with a defined resource and it is expected that the expenditure
can be recovered by future exploitation or sale. All other costs are recorded to profit (loss) in the year in which they are
incurred. Capitalized exploration and evaluation costs are considered to be tangible assets. These assets are not
depreciated, as they are not currently available for use. When proven and probable reserves are determined and
development is approved, capitalized exploration and evaluation costs are reclassified to mineral properties within
property, plant and equipment.
Construction in progress
Assets in the course of construction are capitalized as construction in progress. On completion, the cost of construction
is transferred to the appropriate category of property, plant and equipment and depreciation commences when the
asset is available for its intended use.
Repairs and maintenance
Repairs and maintenance costs, including shutdown maintenance costs, are recorded to expense as incurred, except
when these repairs significantly extend the life of an asset or result in a significant operating improvement. In these
instances, the portion of these repairs relating to the betterment is capitalized as part of plant and equipment.
Borrowing costs
Borrowing costs are capitalized at a rate based on our weighted average cost of borrowing or at the rate on the
project-specific debt, as applicable. Borrowing costs are capitalized with the asset they relate to within mineral
properties, land, buildings, plant and equipment, or construction in progress and are amortized over the useful life
of the related asset. All other borrowing costs are expensed as incurred.
Consolidated Financial Statements
85
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
3. Material Accounting Policy Information (continued)
Capitalization of borrowing costs begins when there are borrowings, when expenditures on the construction of the
asset are incurred and when activities are undertaken to prepare the asset for its intended use. We stop capitalization
of borrowing costs when substantially all of the activities necessary to prepare the qualifying asset for its intended use
are complete. In situations where we need to suspend the construction of a qualifying asset for an extended period of
time, we will suspend capitalization of borrowing costs, and restart capitalization when construction activities resume.
Impairment and impairment reversal of non-current assets
The carrying amounts of assets included in property, plant and equipment and intangible assets are reviewed for
impairment whenever facts and circumstances indicate that the recoverable amounts may be less than the carrying
amounts. If there are indicators of impairment, the recoverable amount of the asset is estimated in order to determine
the extent of any impairment. Where the asset does not generate cash flows that are independent from other assets,
the recoverable amount of the cash-generating unit (CGU) to which the asset belongs is determined. The recoverable
amount of an asset or CGU is determined as the higher of its fair value less costs of disposal (FVLCD) and its value in
use. An impairment loss exists if the asset’s or CGU’s carrying amount exceeds the estimated recoverable amount and
is recorded as an expense immediately.
Fair value is the price that would be received from selling an asset in an orderly transaction between market
participants at the measurement date. Costs of disposal are incremental costs directly attributable to the disposal of
an asset. For mining assets, when a binding sale agreement is not readily available, FVLCD is usually estimated using a
discounted cash flow approach, unless comparable market transactions on which to estimate fair value are available.
Estimated future cash flows are calculated using estimated future commodity prices, reserves and resources, and
operating and capital costs. All inputs used are those that an independent market participant would consider
appropriate.
Value in use is determined as the present value of the future cash flows expected to be derived from continuing use of
an asset or CGU in its present form. These estimated future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset or CGU for which estimates of future cash flows have not been adjusted. A value in use calculation uses a
pre-tax discount rate and a FVLCD calculation uses a post-tax discount rate.
Indicators of impairment for exploration and evaluation assets are assessed on a project-by-project basis or as part of
the mining operation to which they relate.
Tangible or intangible assets that have been impaired in prior periods are tested for possible reversal of impairment
whenever events or significant changes in circumstances indicate that the impairment may have reversed. Indicators
of a potential reversal of an impairment loss mainly mirror the indicators present when the impairment was originally
recorded. If the impairment has reversed, the carrying amount of the asset is increased to its recoverable amount, but
not beyond the carrying amount that would have been determined, net of depreciation, had no impairment loss been
recognized for the asset in prior periods. A reversal of an impairment loss is recognized in profit (loss) immediately.
Intangible Assets
Intangible assets are mainly internally generated and primarily relate to our innovation and technology initiatives. We
capitalize development costs for internally generated intangible assets when the process is clearly defined, the
technical feasibility and usefulness of the asset have been established, we are committed and have the resources to
complete the project, and the costs can be reliably measured.
Intangible assets are recorded at cost less accumulated amortization and impairment losses. Cost includes directly
attributable costs necessary to create, produce and prepare the asset to be capable of operating in the manner
intended by management. Costs associated with maintaining our innovation and technology initiatives, once
implemented, are recognized as an expense as incurred.
86 Teck 2023 Annual Report
Finite life intangible assets are amortized on a straight-line basis over their useful lives. Amortization commences when
an asset is ready for its intended use. Estimates of remaining useful lives are reviewed annually. Changes in estimates
are accounted for prospectively. The expected useful lives of our finite life intangible assets are between 3 and 20 years.
Research and Innovation
Costs incurred during the research phase are expensed as part of research and innovation. Costs associated with the
development of our innovation-driven transformation program, where the process is not clearly defined and technical
feasibility is not established, are also expensed as incurred.
Goodwill
We allocate goodwill arising from business combinations to each CGU or group of CGUs that are expected to receive
the benefits from the business combination. The carrying amount of the CGU or group of CGUs to which goodwill has
been allocated is tested annually for impairment or when there is an indication that the goodwill may be impaired.
An impairment loss exists if the CGU’s or group of CGUs’ carrying amount, including goodwill, exceeds its recoverable
amount. Any impairment is recognized as an expense immediately. Should there be a recovery in the value of a CGU
or group of CGUs, any impairment of goodwill previously recorded is not subsequently reversed.
Leases
Contracts are assessed to determine if the contracts are, or contain, a lease. As a lessee, we recognize a right-of-use
asset, which is included in property, plant and equipment, and a lease liability at the commencement date of a lease.
The commencement date is the date when the lessor makes the underlying asset available for use by us. The right-of-
use asset is initially measured at cost, which is comprised of the initial amount of the lease liability adjusted for any
lease payments made at or before the commencement date, plus any decommissioning and restoration costs.
The right-of-use asset is subsequently depreciated from the commencement date to the earlier of the end of the lease
term, or the end of the useful life of the asset. In addition, the right-of-use asset may be reduced due to impairment
losses, if any, and adjusted for certain remeasurements of the lease liability.
A lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted by our incremental borrowing rate, as the rate implicit in the lease cannot be readily determined.
Our lease liabilities are remeasured when there is a change in future lease payments arising from a purchase,
extension or termination option. Variable lease payments not included in the initial measurement of the lease liability
are charged directly to profit (loss).
We have elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term
of 12 months or less and leases of low-value assets. The lease payments associated with these leases are recorded
directly to profit (loss) on a straight-line basis over the lease term.
Income Taxes
Taxes, comprising both income taxes and resource taxes, are accounted for as income taxes under IAS 12, Income Taxes.
Income taxes attributable to assets held for sale at December 31, 2022 are included as part of loss from discontinued
operations.
Current taxes receivable or payable are based on estimated taxable income for the current year at the statutory tax
rates enacted, or substantively enacted, less amounts paid or received on account.
Deferred tax assets and liabilities are recognized based on temporary differences and are calculated using enacted or
substantively enacted tax rates for the periods in which the differences are expected to reverse. The effect of changes
in tax legislation, including changes in tax rates, is recognized in the period of substantive enactment.
Consolidated Financial Statements
87
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
3. Material Accounting Policy Information (continued)
Deferred tax assets are recognized only to the extent where it is probable that the future taxable profits or capital
gains of the relevant entity or group of entities in a particular jurisdiction will be available, against which the assets can
be utilized.
Deferred tax liabilities are recognized for taxable temporary differences arising on investments in subsidiaries, joint
ventures and associates. However, we do not recognize such deferred tax liabilities where the timing of the reversal of
the temporary differences can be controlled without affecting our operations or business and where it is probable that
the temporary differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are not recognized if the temporary differences arise from the initial recognition
of goodwill or an asset or liability in a transaction, other than in a business combination, which will affect neither
accounting profit nor taxable profit. However, we recognize deferred tax on transactions that, on initial recognition,
give rise to equal amounts of taxable and deductible temporary differences.
Deferred tax assets and liabilities related to assets held for sale are included as part of assets held for sale and
liabilities associated with assets held for sale, as applicable.
We are subject to assessments by various taxation authorities, who may interpret tax legislation differently than we do.
The final amount of taxes to be paid depends on a number of factors, including the outcomes of audits, appeals or
negotiated settlements. We account for such differences based on our best estimate of the probable outcome of
these matters.
Employee Benefits
Defined benefit pension plans
Defined benefit pension plan obligations are based on actuarial determinations. The projected unit credit method,
which sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit
separately to build up the final obligation, is used to determine the defined benefit obligations, the related current
service costs and, where applicable, the past service costs. Actuarial assumptions used in the determination of
defined benefit pension plan assets and liabilities are based upon our best estimates, including discount rates, salary
escalation, expected healthcare costs and retirement dates of employees.
Actuarial gains and losses can arise from differences between expected and actual outcomes or changes in actuarial
assumptions. Actuarial gains and losses, changes in the effect of the asset ceiling and return on plan assets are
collectively referred to as remeasurements of retirement benefit plans and are recognized immediately through other
comprehensive income (loss) and directly into retained earnings. Measurement of our net defined benefit asset is
limited to the lower of the surplus of assets less liabilities in the defined benefit plan and the asset ceiling less
liabilities in the defined benefit plan. The asset ceiling is the present value of the expected economic benefit available
to us in the form of refunds from the plan or reductions in future contributions to the plan.
The interest component of the defined benefit cost is recorded as part of finance expense. Depending on the
classification of the salary of plan members, current service costs and past service costs are included in cost of sales,
general and administration expenses, exploration expenses or research and innovation expenses.
Defined contribution pension plans
The cost of providing benefits through defined contribution plans is recorded to profit (loss) as the obligation to
contribute is incurred.
Non-pension post-retirement plans
We provide healthcare benefits for certain employees when they retire. Non-pension post-retirement plan obligations
are based on actuarial determinations. The cost of these benefits is expensed over the period in which the employees
render services. We fund these non-pension post-retirement benefits as they become due.
88 Teck 2023 Annual Report
Share-Based Payments
The fair value method of accounting is used for share-based payment transactions. Under this method, the cost of
share options and other equity-settled share-based payment arrangements is recorded based on the estimated fair
value at the grant date, including an estimate of the forfeiture rate, and recorded to other operating income (expense)
over the vesting period.
Share-based payment expense relating to cash-settled awards, including deferred, restricted, performance and
performance deferred share units, is accrued over the vesting period of the units based on the quoted market value of
Class B subordinate voting shares. Performance share units (PSUs) and performance deferred share units (PDSUs) vest
subject to a performance metric ranging from 0% to 200% based on corporate performance against grant-specific
performance criteria. As defined in our grant agreements, the performance metric for PSUs and PDSUs issued prior to
2022 was based on both our relative total shareholder return in comparison to a group of specified companies and by
the ratio of the change in our earnings before interest, taxes, depreciation and amortization (EBITDA) over the vesting
period of the share unit to the change in a specified weighted commodity price index. The performance metrics for
PSUs and PDSUs issued in 2022 and 2023 are based on a balanced scorecard, with 20% related to each of relative
shareholder return as compared to our compensation peer group, change in five-year average return on capital
employed for operating assets, operational production and cost performance as against the annual budget, strategic
execution, and performance measured against a sustainability progress index. As these awards will be settled in cash,
the expense and liability are adjusted each reporting period for changes in the underlying share price as well as
changes to the above-noted vesting factors, as applicable.
Decommissioning and Restoration Provisions
Future obligations to retire an asset and to restore a site, including dismantling, remediation and ongoing treatment
and monitoring of the site related to normal operations, are initially recognized and recorded as a provision based on
estimated future cash flows discounted at a credit-adjusted risk-free rate. These decommissioning and restoration
provisions are adjusted at each reporting period for changes to factors including the expected amount of cash flows
required to discharge the liability, the timing of such cash flows and the discount rate.
The provisions are also accreted to full value over time through periodic charges to profit (loss). This unwinding of the
discount is recorded to finance expense in the statement of income (loss).
The amount of the decommissioning and restoration provisions initially recognized is capitalized as part of the related
asset’s carrying value. The method of depreciation follows that of the underlying asset. For a closed site or where the
asset that generated a decommissioning and restoration provision no longer exists, there is no longer any future
benefit related to the costs and, as such, the amounts are expensed through other operating income (expense). For
operating sites, a revision in estimates or a new disturbance will result in an adjustment to the provision with an
offsetting adjustment to the capitalized asset retirement cost.
During the operating life of an asset, events such as infractions of environmental laws or regulations may occur. These
events are not related to the normal operation of the asset. The costs associated with these provisions are accrued and
recorded through other operating income (expense) in the period in which the event giving rise to the liability occurs.
Changes in the estimated liability resulting in an adjustment to these provisions are also recorded to other operating
income (expense) in the period in which the estimate changes.
Earnings (Loss) per Share
Earnings (loss) per share is calculated based on the weighted average number of shares outstanding during the year.
For diluted earnings per share, dilution is calculated based upon the net number of common shares issued, should
“in-the-money” options and warrants be exercised and the proceeds be used to repurchase common shares at the
average market price in the year. In periods of loss, the loss per share and diluted loss per share are the same, since the
effect of the issuance of additional common shares would be anti-dilutive.
Consolidated Financial Statements
89
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
4. Areas of Judgment and Estimation Uncertainty
In preparing our consolidated financial statements, we make judgments in applying our accounting policies. The
judgments that have the most significant effect on the amounts recognized in our financial statements are outlined
below. In addition, we make assumptions about the future in deriving estimates used in preparing our consolidated
financial statements. We have outlined information below about assumptions and other sources of estimation
uncertainty as at December 31, 2023 that have a risk of resulting in a material adjustment to the carrying amounts
of assets and liabilities within the next year.
a) Areas of Judgment
Assessment of Impairment and Impairment Reversal Indicators
Judgment is required in assessing whether certain factors would be considered an indicator of impairment or
impairment reversal. We consider both internal and external information to determine whether there is an indicator of
impairment or impairment reversal present and, accordingly, whether impairment testing is required. The information
we consider in assessing whether there is an indicator of impairment or impairment reversal includes, but is not limited
to, market transactions for similar assets, commodity prices, treatment charges, zinc premiums, discount rates, foreign
exchange rates, our market capitalization, reserves and resources, mine plans, operating plans and operating results.
As a result of the strengthening of the Canadian dollar against the U.S. dollar affecting the Canadian dollar equivalent
of our expected consideration to be received in the sale of the steelmaking coal business transactions (Note 6(a)), we
performed an impairment test for our steelmaking coal group of CGUs (Note 9(a)) at December 31, 2023.
In the fourth quarter of 2022, as a result of increased costs and operating challenges at our Trail CGU, we performed
an impairment test for our Trail CGU (Note 9(b) and (d)).
Property, Plant and Equipment – Determination of Available for Use Date
Judgment is required in determining the date that property, plant and equipment is available for use. An asset is
available for use when it is in the location and condition necessary to operate in the manner intended by management.
QB2 consists of property, plant and equipment that become available for use at different dates. When assessing when
these assets are available for use, we consider several factors, the most significant of which are the status of asset
commissioning and whether the assets are capable of operating near design capacity to ensure a reliable and
consistent throughput rate to produce the expected quantity of outputs. The majority of the assets related to QB2
became available for use in December of 2023.
Joint Arrangements
We are a party to a number of arrangements over which we do not have control. Judgment is required in determining
whether joint control over these arrangements exists and, if so, which parties have joint control and whether each
arrangement is a joint venture or a joint operation. In assessing whether we have joint control, we analyze the activities
of each arrangement and determine which activities most significantly affect the returns of the arrangement over its
life. These activities are determined to be the relevant activities of the arrangement. If unanimous consent is required
over the decisions about the relevant activities, the parties whose consent is required would have joint control over the
arrangement. The judgments around which activities are considered the relevant activities of the arrangement are
subject to analysis by each of the parties to the arrangement and may be interpreted differently. When performing this
assessment, we generally consider decisions about activities such as managing the asset while it is being designed,
developed and constructed, during its operating life and during the closure period. We may also consider other
activities, including the approval of budgets, expansion and disposition of assets, financing, significant operating and
capital expenditures, appointment of key management personnel, representation on the board of directors and other
items. When circumstances or contractual terms change, we reassess the control group and the relevant activities of
the arrangement.
90 Teck 2023 Annual Report
If we have joint control over the arrangement, an assessment of whether the arrangement is a joint venture or a joint
operation is required. This assessment is based on whether we have rights to the assets, and obligations for the
liabilities, relating to the arrangement or whether we have rights to the net assets of the arrangement. In making this
determination, we review the legal form of the arrangement, the terms of the contractual arrangement and other facts
and circumstances. In a situation where the legal form and the terms of the contractual arrangement do not give us
rights to the assets and obligations for the liabilities, an assessment of other facts and circumstances is required,
including whether the activities of the arrangement are primarily designed for the provision of output to the parties
and whether the parties are substantially the only source of cash flows contributing to the arrangement. The
consideration of other facts and circumstances may result in the conclusion that a joint arrangement is a joint
operation. This conclusion requires judgment and is specific to each arrangement. Other facts and circumstances
have led us to conclude that Antamina, NewRange and San Nicolás are joint operations for the purposes of our
consolidated financial statements. The other facts and circumstances considered for these arrangements include
the provision of output to the parties of the joint arrangements and the funding obligations. For Antamina, NewRange
and San Nicolás, we take our share of the output from the assets directly over the life of the arrangement. We have
concluded that this gives us direct rights to the assets and obligations for the liabilities of these arrangements
proportionate to our ownership interests.
Streaming Transactions
When we enter into a long-term streaming arrangement linked to production at specific operations, judgment is
required in assessing the appropriate accounting treatment for the transaction on the closing date and in future
periods. We consider the specific terms of each arrangement to determine whether we have disposed of an interest in
the reserves and resources of the respective operation or executed some other form of arrangement. This assessment
considers what the counterparty is entitled to and the associated risks and rewards attributable to them over the life
of the operation. These include the contractual terms related to the total production over the life of the arrangement
as compared to the expected production over the life of the mine, the percentage being sold, the percentage of
payable metals produced, the commodity price referred to in the ongoing payment and any guarantee relating to the
upfront payment if production ceases.
For our silver and gold streaming arrangements at Antamina and Carmen de Andacollo, respectively, there is no
guarantee associated with the upfront payment. We have concluded that control of the rights to the silver and gold
mineral interests were transferred to the buyers when the contracts came into effect. Therefore, we consider these
arrangements a disposition of a mineral interest.
Based on our judgment, control of the interest in the reserves and resources transferred to the buyer when the
contracts were executed. At that time, we recognized the amount of the gain related to the disposition of the reserves
and resources, as we had the right to payment, the customer was entitled to the commodities, the buyer had no
recourse in requiring Teck to mine the product, and the buyer had significant risks and rewards of ownership of the
reserves and resources.
We recognize the amount of consideration related to refining, mining and delivery services as the work is performed.
Deferred Tax Assets and Liabilities
Judgment is required in assessing whether deferred tax assets and certain deferred tax liabilities are recognized on
the balance sheet and what tax rate is expected to be applied in the year when the related temporary differences
reverse. We also evaluate the recoverability of deferred tax assets based on an assessment of our ability to use the
underlying future tax deductions before they expire against future taxable profits or capital gains. Deferred tax
liabilities arising from temporary differences on investments in subsidiaries, joint ventures and associates are
recognized unless the reversal of the temporary differences is not expected to occur in the foreseeable future and can
be controlled. Judgment is also required on the application of income tax legislation. These judgments are subject to
risk and uncertainty and could result in an adjustment to the deferred tax provision and a corresponding credit or
charge to profit (loss).
Consolidated Financial Statements
91
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
4. Areas of Judgment and Estimation Uncertainty (continued)
Assets Held for Sale
Judgment is required in assessing whether certain assets are considered as held for sale as at December 31, 2023.
For non-current assets and disposal groups to be considered as held for sale, the asset or disposal group must be
available for immediate disposal, by sale or otherwise, in its present condition subject only to terms that are usual
and customary for sales of such assets or disposal groups, and its sale must be highly probable. Exercising judgment
includes considering the likelihood of obtaining requisite regulatory, stakeholder and political approvals.
In the fourth quarter of 2023, we announced our agreement to sell our interest in our steelmaking coal business,
referred to as Elk Valley Resources (EVR), through a sale of a majority stake to Glencore plc (Glencore) and a sale of
minority stakes to Nippon Steel Corporation (NSC) and POSCO. The NSC and POSCO portions of the transaction closed
on January 3, 2024 (Note 6(a)). Closing of the sale of the majority interest in EVR to Glencore remains subject to receipt
of competition approvals in several jurisdictions and approval under the Investment Canada Act. The timing and outcome
of these processes is not known with sufficient certainty and as such, we are not in a position to conclude that receipt
of the required approvals, and resulting closing of the transaction, is highly probable. Therefore, we have determined
that our steelmaking coal business did not meet the criteria to be classified as held for sale at December 31, 2023.
As at December 31, 2022, we determined that the Fort Hills disposal group; the Quintette disposal group; the Mesaba
property, plant and equipment assets; and the San Nicolás property, plant and equipment assets were considered as
held for sale (Note 5).
b) Sources of Estimation Uncertainty
Impairment Testing
For the annual goodwill impairment testing for our steelmaking coal group of CGUs, we estimated its recoverable
amount based on consideration expected to be received from the sale transactions (Note 6(a)). This includes the
present value of the agreed-upon cash proceeds from Glencore and NSC, plus the expected discounted cash flows
from the steelmaking coal business until closing of the Glencore transaction. The most significant assumption is the
U.S. dollar to Canadian dollar foreign exchange rate, which is applied to both the cash receipts and the cash flows until
closing. Other significant assumptions include the steelmaking coal price, sales volumes and operating costs.
For other impairment testing required, discounted cash flow models are used to determine the recoverable amount of
respective CGUs. These models are prepared internally or with assistance from third-party advisors when required.
When relevant market transactions for comparable assets are available, these are considered in determining the
recoverable amount of assets.
Significant assumptions used in preparing the discounted cash flow model for our Quebrada Blanca CGU goodwill
impairment test include commodity prices, reserves and resources, sales volumes, operating costs, capital expenditures,
discount rate and the fair value per pound of copper equivalent used in the determination of the in situ value.
Significant assumptions used in preparing the discounted cash flow model for our Trail CGU impairment test in 2022
include zinc prices, smelter production, operating costs, capital expenditures, treatment charges, zinc premiums,
discount rate and foreign exchange rates.
Note 9(d) outlines the significant inputs used when performing goodwill and other asset impairment testing. These
inputs are based on management’s best estimates of what an independent market participant would consider
appropriate. Changes in these inputs may alter the results of impairment testing, the amount of the impairment
charges or reversals recorded in the statement of income (loss) and the resulting carrying values of assets.
92 Teck 2023 Annual Report
Estimated Recoverable Reserves and Resources
Mineral reserve and resource estimates are based on various assumptions relating to operating matters as set forth in
National Instrument 43-101, Standards of Disclosure for Mineral Projects. Assumptions used include production costs,
mining and processing recoveries, cut-off grades, sales volumes, long-term commodity prices, exchange rates,
inflation rates, tax and royalty rates and capital costs. Cost estimates are based on prefeasibility or feasibility study
estimates or operating history. Estimates are prepared by or under the supervision of appropriately qualified persons,
but will be affected by forecasted commodity prices, inflation rates, exchange rates, capital and production costs and
recoveries, among other factors. Estimated recoverable reserves and resources are used in performing impairment
testing, to determine the depreciation of property, plant and equipment at operating mine sites, in accounting for
capitalized production stripping costs and also in forecasting the timing of settlement of decommissioning and
restoration costs. Changes in reserve and resource estimates are most significant to estimating the recoverable
amount in impairment tests.
Decommissioning and Restoration Provisions
Decommissioning and restoration provisions (DRPs) are based on future cost estimates using information available at
the balance sheet date that are developed by management’s experts (Note 25(a)). DRPs represent the present value of
estimated costs of future decommissioning and other site restoration activities, including costs associated with the
management of water and water quality in and around each closed site. DRPs are adjusted at each reporting period
for changes to factors such as the expected amount of cash flows required to discharge the liability, the timing of such
cash flows and the credit-adjusted discount rate. DRPs require significant estimates and assumptions, including the
requirements of the relevant legal and regulatory framework and the timing, extent and costs of required
decommissioning and restoration activities. Our estimates of the costs associated with the management of water and
water quality in and around each closed site include assumptions with respect to the volume and location of water to
be treated, the methods used to treat the water and the related water treatment costs. To the extent the actual costs
differ from these estimates, adjustments will be recorded and the statement of income (loss) may be affected.
Provision for Income Taxes
We calculate current and deferred tax provisions for each of the jurisdictions in which we operate. Actual amounts of
income tax expense are not final until tax returns are filed and accepted by the relevant authorities. This occurs
subsequent to the issuance of our financial statements and the final determination of actual amounts may not be
completed for a number of years. Therefore, profit (loss) in subsequent periods will be affected by the amount that
estimates differ from the final tax assessment.
Deferred Tax Assets and Liabilities
Assumptions about the generation of future taxable profits and repatriation of retained earnings depend on
management’s estimates of future production and sales volumes, commodity prices, reserves and resources,
operating costs, decommissioning and restoration costs, capital expenditures, dividends and other capital
management transactions. These estimates could result in an adjustment to the deferred tax provision and a
corresponding adjustment to profit (loss).
Consolidated Financial Statements
93
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
5. Assets Held for Sale and Discontinued Operations
Discontinued Operations – Fort Hills Disposal Group
Fort Hills sale transaction
On February 2, 2023, we completed the sale of our 21.3% interest in Fort Hills and associated downstream assets to
Suncor Energy Inc. (Suncor) and TotalEnergies EP Canada Ltd. (TEPCA). TEPCA had exercised its right of first refusal to
purchase its proportionate share of our Fort Hills interest.
We have accounted for this transaction by recognizing:
• Aggregate cash proceeds of approximately $1 billion from Suncor and TEPCA
• A financial liability estimated at $269 million on closing. The current portion of $26 million was recorded as part
of trade accounts payable and other liabilities. The non-current portion of $243 million was recorded as part of
provisions and other liabilities. This financial liability is related to the remaining term of a downstream pipeline
take-or-pay toll commitment.
We recognized a loss of approximately $8 million, which was presented in loss from discontinued operations upon
closing of this transaction.
During 2022, we recorded a non-cash, pre-tax asset impairment of $1.2 billion (after-tax $961 million) as a result of the
announced sale of our interest in Fort Hills.
Results of discontinued operations of the Fort Hills disposal group:
(CAD$ in millions)
Revenue
Cost of sales
Gross profit (loss)
Asset impairment
Other operating income
Loss from operations
Net finance expense
Loss on sale
Loss from discontinued operations before taxes
Recovery of income taxes
$
2023
143
(161)
(18)
–
–
(18)
(2)
(8)
(28)
2
Loss from discontinued operations
$
(26)
$
2022
$
1,597
(1,291)
306
(1,243)
6
(931)
(25)
–
(956)
184
(772)
Assets Held For Sale and Liabilities Associated with Assets Held for Sale – Fort Hills and Quintette Disposal Groups
Quintette sale transaction
On December 19, 2022, we announced an agreement with Conuma Resources Limited to sell all the assets and liabilities
of the Quintette steelmaking coal mine in northeastern British Columbia, which closed in 2023 (Note 6(c)). The Quintette
disposal group did not meet the definition of discontinued operations, but it did meet the requirements for it to be classified
as held for sale. As at December 31, 2022, we reclassified the assets and liabilities of Quintette as held for sale on the
balance sheet. Immediately before the initial classification of the Quintette assets and liabilities as held for sale, we assessed
the fair value and determined the fair value exceeded the carrying amount and accordingly, no impairment was recorded.
94 Teck 2023 Annual Report
Assets and liabilities of the Fort Hills disposal group and the Quintette disposal group held for sale as at December 31, 2022:
(CAD$ in millions)
Cash and cash equivalents
Inventories
Prepaid and other current assets
Financial and other assets
Property, plant and equipment
Total assets held for sale
Trade accounts payable and other liabilities
Current portion of lease liabilities
Current income taxes payable
Lease liabilities
Deferred income tax liabilities
Provisions and other liabilities
$
$
$
Fort Hills
Quintette
Total
$
34
53
49
42
$
–
–
–
1
34
53
49
43
1,124
263
1,387
1,302
$
264
$
1,566
$
172
9
46
200
18
110
5
–
–
–
50
35
90
$
$
177
9
46
200
68
145
645
Total liabilities associated with assets held for sale
$
555
$
Non-Current Assets Held for Sale
Mesaba arrangement
On July 20, 2022 we announced an agreement with PolyMet Mining Corp. (PolyMet) to form a 50:50 joint arrangement
to advance PolyMet’s NorthMet project and Teck's Mesaba mineral deposit, which closed in 2023 (Note 6(d)). As at
December 31, 2022, we have reclassified property, plant and equipment and other assets of $14 million related to
Mesaba to non-current assets held for sale based on the conclusion that the mineral deposit would become part of a
joint operation. Immediately before the initial classification of the Mesaba assets as held for sale, we assessed the fair
value and determined the fair value exceeded the carrying amount and accordingly, no impairment was recorded.
San Nicolás arrangement
On September 16, 2022, we announced an agreement with Agnico Eagle Mines Limited to form a 50:50 joint
arrangement to advance the San Nicolás copper-zinc development project located in Zacatecas, Mexico, which closed
in 2023 (Note 6(b)). As at December 31, 2022, we have reclassified property, plant and equipment and other assets of
$159 million related to San Nicolás to non-current assets held for sale based on the conclusion that San Nicolás would
become part of a joint operation. Immediately before the initial classification of the San Nicolás assets as held for sale,
we assessed the fair value and determined the fair value exceeded the carrying amount and accordingly, no impairment
was recorded.
Consolidated Financial Statements
95
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
6. Transactions
a) Sale of Steelmaking Coal Business
On November 13, 2023, we announced our agreement to sell our interest in our steelmaking coal business, EVR, through
a sale of a majority stake to Glencore and a sale of a minority stake to NSC and POSCO.
Glencore will acquire 77% of EVR for US$6.9 billion in cash, payable to us at closing of the Glencore transaction, subject
to customary closing adjustments. At closing of the Glencore transaction, Glencore will acquire from us any remaining
receivable that is payable to Teck by EVR.
Closing of the sale of the majority interest in EVR to Glencore remains subject to receipt of competition approvals in
several jurisdictions and approval under the Investment Canada Act (Note 4(a)).
NSC agreed to acquire a 20% interest in EVR in exchange for its current 2.5% interest in our Elkview Operations plus
US$1.3 billion in cash payable to Teck at closing of the NSC transaction. POSCO agreed to exchange its 2.5% interest in
our Elkview Operations and its 20% interest in the Greenhills Operations for a 3% interest in EVR. Teck will continue to
operate the steelmaking coal business and will retain substantially all cash flows from the steelmaking coal business
until closing of the Glencore transaction.
On January 3, 2024, the NSC and POSCO transactions were completed. These transactions will be accounted for as
equity transactions with non-controlling interests.
b) San Nicolás Arrangement
On April 6, 2023, we closed the transaction with Agnico Eagle Mines Limited (Agnico Eagle), forming a 50:50 joint
arrangement to advance the San Nicolás copper-zinc development project located in Zacatecas, Mexico. Agnico Eagle
has agreed to subscribe for a 50% interest in San Nicolás for US$580 million, to be contributed as study and
development costs are incurred by San Nicolás.
We concluded that San Nicolás is a joint operation where we share joint control with Agnico Eagle due to the key facts
that Teck and Agnico Eagle are obligated for their share of the outputs of the arrangement, and that Teck and Agnico
Eagle are required to fund their respective share of cash flows to the arrangement. We account for our interest in the
joint operation by recording our share of the respective assets, liabilities, revenue and expenses and cash flows. As
contributions are made by Agnico Eagle to San Nicolás, their incremental contributions will result in an increase in their
share ownership and a reduction in our share ownership until Agnico Eagle has achieved a 50% interest in San Nicolás.
At December 31, 2023, we had 91% and Agnico Eagle had 9% of share ownership.
We recognized a gain of $5 million in other operating income (expense) (Note 10), attributable to Agnico Eagle's initial
subscription and incremental contributions, totaling an aggregate of 9% of the project during 2023.
96 Teck 2023 Annual Report
c) Quintette Sale Transaction
On February 16, 2023, we closed the transaction with Conuma Resources Limited (Conuma) to sell all the assets and
liabilities of the Quintette steelmaking coal mine in northeastern British Columbia. In exchange for the sale of the
Quintette steelmaking coal mine, Conuma has agreed to pay in cash $120 million of staged payments over 36 months
and an ongoing 25% net profits interest royalty, first payable after Conuma recovers its initial construction investments
in Quintette.
We accounted for this transaction by recognizing:
• Cash of $30 million related to a non-refundable deposit and cash received upon closing
• A financial receivable of $69 million recorded as part of financial and other assets, which reflects the fair value of
the staged payments at the close of the transaction
• A mineral interest royalty in the amount of $200 million recorded as part of property, plant and equipment that
is a non-cash investing transaction and reflects the fair value of the royalty interest on closing of the transaction.
The key facts and circumstances that resulted in concluding the royalty should be accounted for as a mineral
interest were the alignment of cash flow risks and returns with the existing mine plan and that payments will only
occur during the life of the mine.
We recognized a pre-tax gain of approximately $75 million ($50 million post-tax) in other operating income (expense)
upon closing of this transaction (Note 10).
d) Mesaba Arrangement
On February 15, 2023, we closed the transaction with PolyMet, forming a 50:50 joint arrangement to advance
PolyMet’s NorthMet project and Teck's Mesaba mineral deposit. The joint arrangement is held and operated through
a new entity named NewRange Copper Nickel LLC.
We concluded that NewRange is a joint operation where we share joint control with PolyMet due to the key facts that
Teck and PolyMet are obligated for their share of the outputs of the arrangement, and that Teck and PolyMet are required
to fund their respective share of cash flows to the arrangement. We account for our interest in the joint operation by
recording our share of the respective assets, liabilities, revenue and expenses and cash flows.
We concluded that both parties contributed groups of assets that do not constitute businesses in the formation of the
NewRange joint operation and we recorded $232 million of property, plant and equipment and $16 million of intangibles
in a non-cash investing transaction. We have measured the fair value of the assets and liabilities contributed by PolyMet
through reference to market share price data, adjusted for transaction-specific factors, which is classified as a Level 3
measurement within the fair value measurement hierarchy (Note 32).
We recognized a pre-tax gain of approximately $191 million ($142 million post-tax) in other operating income (expense)
upon closing of this transaction (Note 10). The gain was determined by calculating 50% of the fair value of the NorthMet
project contributed by PolyMet, less 50% of the carrying value of the Mesaba mineral deposit contributed by Teck.
Consolidated Financial Statements
97
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
7. Revenue
a) Total Revenue by Major Product Type and Business Unit
The following table shows our revenue disaggregated by major product type and by business unit. Our business units
are reported based on the primary products that they produce and are consistent with our reportable segments
(Note 30) that have revenue from contracts with customers. A business unit can have revenue from more than one
commodity, as it can include an operation that produces more than one product. Intra-segment revenue is accounted
for at current market prices as if the sales were made to arm’s-length parties and are eliminated on consolidation. As a
result of the sale of our 21.3% interest in Fort Hills and associated downstream assets, we no longer present the revenue
related to Fort Hills, which was part of our energy business unit, in the tables below. Revenue related to Fort Hills is
disclosed as part of Note 5, Assets Held for Sale and Discontinued Operations.
(CAD$ in millions)
2023
Copper
Zinc
Steelmaking Coal
Copper
Zinc
Steelmaking coal
Silver
Lead
Other
Intra-segment
$
3,016
$
257
–
44
2
106
–
–
2,443
–
414
386
351
(543)
$
$
–
–
8,535
–
–
–
–
Total
3,016
2,700
8,535
458
388
457
(543)
$
3,425
$
3,051
$
8,535
$
15 ,0 1 1
(CAD$ in millions)
2022
Copper
Zinc
Steelmaking Coal
Copper
Zinc
Steelmaking coal
Silver
Lead
Other
Intra-segment
$
2,925
$
331
–
40
4
81
–
–
3,101
–
341
344
395
(655)
$
$
–
–
10,409
–
–
–
–
Total
2,925
3,432
10,409
381
348
476
(655)
$
3,381
$
3,526
$
10,409
$
17,316
98 Teck 2023 Annual Report
b) Total Revenue by Region
The following table shows our revenue disaggregated by geographical region. Revenue is attributed to regions based
on the destination port or delivery location as designated by the customer.
(CAD$ in millions)
Asia
China
Japan
South Korea
India
Other
Americas
United States
Canada
Chile
Other
Europe
Germany
Spain
Finland
Belgium
Slovakia
Other
$
2023
2022
4,202
2,749
1,675
1,214
697
1,577
775
339
170
560
246
188
140
126
353
$
4,804
3,216
2 , 178
1,306
1,169
1 ,727
857
154
38
428
271
278
134
150
606
$
15,011
$
17,316
In 2023, one major customer in the steelmaking coal business unit accounted for approximately $1.5 billion in total
revenue, representing more than 10% of total revenue. In 2022, no customer accounted for more than 10% of total revenue.
Consolidated Financial Statements
99
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
8. Expenses by Nature
(CAD$ in millions)
Employment-related costs:
Wages and salaries
Employee benefits and other wage-related costs
Bonus payments
Post-employment benefits and pension costs
Transportation
Depreciation and amortization
Raw material purchases
Fuel and energy
Operating supplies consumed
Maintenance and repair supplies
Contractors and consultants
Overhead costs
Royalties
Other operating costs net of recoveries
Adjusted for:
Capitalized production stripping costs
Change in inventory
Total cost of sales, general and administration,
exploration and research and innovation expenses
9. Asset and Goodwill Impairment Testing
a) Impairment Testing – Steelmaking Coal Group of CGUs
Goodwill Impairment Testing – October 31, 2023
2023
2022
$
1,375
331
296
129
2 , 131
1,605
1,931
601
1,233
933
1 , 118
1,468
498
285
(72)
$
1 , 1 2 1
313
350
154
1,938
1 ,515
1,674
655
1,103
782
845
904
559
495
(32)
11,731
10,438
(1,104)
(192)
(1,042)
(168)
$
10,435
$
9,228
Our steelmaking coal group of CGUs has goodwill allocated to it (Note 18). For our annual goodwill impairment testing,
we estimated the recoverable amount of the steelmaking coal group of CGUs based on consideration expected to be
received from the announced sale transactions in November 2023 (Note 6(a)). This includes the present value of the
agreed-upon cash proceeds from Glencore and NSC, plus the expected discounted cash flows from the steelmaking
coal group of CGUs until expected closing of the Glencore transaction. The estimated recoverable amount of the
steelmaking coal group of CGUs exceeded the carrying amount by approximately $600 million at October 31, 2023,
our annual goodwill impairment testing date. These FVLCD estimates are classified as a Level 3 measurement within
the fair value measurement hierarchy (Note 32).
The recoverable amount of our steelmaking coal group of CGUs is most sensitive to changes in the U.S. dollar to
Canadian dollar foreign exchange rate, which is applied to both the cash receipts and the cash flows until closing.
We used a U.S. dollar to Canadian dollar exchange rate of 1.38 in our estimation, based on the forward curve at
October 31, 2023. In isolation, a strengthening of the Canadian dollar to 1.33 would result in the recoverable amount of
the steelmaking coal group of CGUs being approximately equal to the carrying amount. Other significant assumptions
include the steelmaking coal price, sales volumes and operating costs.
100 Teck 2023 Annual Report
Impairment Testing – December 31, 2023
As at December 31, 2023, as a result of the strengthening of the Canadian dollar against the U.S. dollar affecting the
Canadian dollar equivalent of our expected consideration to be received in the sale of the steelmaking coal business
transactions, we performed an additional impairment test for our steelmaking coal group of CGUs. We updated the
estimated recoverable amount based on the consideration expected to be received, consistent with the annual goodwill
impairment testing performed as at October 31, 2023. In performing this impairment test, we used a U.S. dollar to
Canadian dollar foreign exchange rate of 1.32 based on the forward curve at December 31, 2023 and also updated
applicable assumptions including the steelmaking coal price, sales volumes and operating costs.
The estimated recoverable amount of the steelmaking coal group of CGUs exceeded the carrying amount by
approximately $80 million at December 31, 2023. These FVLCD estimates are classified as a Level 3 measurement
within the fair value measurement hierarchy (Note 32).
In isolation, a $0.01 strengthening in the Canadian dollar would result in the recoverable amount being approximately
equal to the carrying amount.
b) Impairment Testing – Trail CGU and Assets Held for Sale – 2022
In the fourth quarter of 2022, as a result of increased costs and operating challenges at the Trail CGU, we performed
an impairment test for our Trail CGU. Cash flow projections used in the analysis as at December 31, 2022 were based
on an operating plan with cash flows covering a period of 80 years. The recoverable amount of our Trail CGU was
approximately equal to the carrying amount of $1.2 billion at the date of testing. As a result, any changes in the key
assumptions in (d) below could result in the carrying amount exceeding the recoverable amount.
In 2022, immediately before the initial classification of assets held for sale, we measured the assets at the lower of
their carrying amount and fair value less costs to sell with the results disclosed in Note 5.
c) Annual Goodwill Impairment Testing – Quebrada Blanca CGU
Our Quebrada Blanca CGU has goodwill allocated to it (Note 18). We performed our annual goodwill impairment
testing at October 31, 2023, calculating the recoverable amount on a FVLCD basis and did not identify any goodwill
impairment losses. Cash flow projections in the discounted cash flow model cover the current expected mine life
of Quebrada Blanca and a projected expansion, totalling 49 years, with an estimate of in situ value applied to the
remaining resources. Given the nature of expected future cash flows used to determine the recoverable amount,
a material change could occur over time, as the cash flows are significantly affected by the key assumptions
described below in (d).
Sensitivity Analysis
The recoverable amount of our Quebrada Blanca CGU exceeded the carrying amount by approximately $600 million at
the date of our annual goodwill impairment testing. The recoverable amount of Quebrada Blanca is most sensitive to
the long-term copper price assumption and discount rate assumption. In isolation, a US$0.10 decrease in the long-term
copper price, or a 30 basis points increase in the discount rate would result in the recoverable amount of Quebrada
Blanca being equal to its carrying value.
Significant assumptions used in preparing the discounted cash flow model for our Quebrada Blanca CGU goodwill
impairment test include commodity prices, reserves and resources, sales volumes, operating costs, capital expenditures,
discount rate and the fair value per pound of copper equivalent used in the determination of the in situ value.
Consolidated Financial Statements
101
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
9. Asset and Goodwill Impairment Testing (continued)
d) Key Assumptions – Quebrada Blanca CGU and Trail CGU
The following are the key assumptions used in our Quebrada Blanca CGU impairment testing calculations for the years
ended December 31, 2023 and 2022:
Copper prices per pound
Long-term real price in 2028 of
US$3.90
Long-term real price in 2027 of
US$3.60
Post-tax real discount rate
7.0%
6.5%
2023
2022
In our 2022 impairment assessment of the Trail CGU, we used long-term assumptions of US$1.25 per pound for zinc,
US$277 per tonne for treatment charges, US$0.11 per pound for zinc premiums, a U.S. dollar to Canadian dollar exchange
rate of 1.30 and a post-tax real discount rate of 5.5%.
Interrelation of Key Assumptions
The key assumptions used in our determination of recoverable amounts interrelate significantly with each other and
with our operating plans. For example, a decrease in long-term commodity prices could result in amendments to the
mine plans that would partially offset the effect of lower prices through lower operating costs and capital expenditures.
It is difficult to determine how all of these factors would interrelate, but in estimating the effect of changes in these
assumptions on fair values, we believe that all of these factors need to be considered together. A linear extrapolation
of these effects becomes less meaningful as the change in assumption increases.
Commodity Price Assumptions
Commodity price assumptions use current prices in the initial year and trend to the long-term prices in the information
referenced above. Prices are based on a number of factors, including historical data, analyst estimates and forward
curves in the near term and are benchmarked with external sources of information, including information published
by our peers and market transactions, where possible, to ensure they are within the range of values used by market
participants.
Discount Rates
Discount rates are based on market participant mining and smelting weighted average costs of capital adjusted for
risks specific to the operation or asset where appropriate.
Foreign Exchange Rates
U.S. dollar to Canadian dollar foreign exchange rates are significant to the Trail CGU and are benchmarked with external
sources of information based on a range used by market participants.
Reserves and Resources, Mine Production and Smelter Production
Future mineral production is included in projected cash flows based on plant capacities, reserve and resource estimates
and related exploration and evaluation work undertaken by appropriately qualified persons.
Future smelter production is included in projected cash flows based on plant capacities.
102 Teck 2023 Annual Report
In Situ Value
The fair value of resources beyond production included in the discounted cash flow model are estimated on a fair
value per pound on a copper equivalent basis using available comparable market data.
Operating Costs and Capital Expenditures
Operating costs and capital expenditures are based on life of mine plans, operating plans and internal management
forecasts, as applicable. Cost estimates incorporate management experience and expertise, current operating
costs, the nature and location of each operation, and the risks associated with each operation. Future capital
expenditures are based on management’s best estimate of expected future capital requirements, with input from
management’s experts where appropriate. All committed and anticipated capital expenditures based on future cost
estimates have been included in the projected cash flows. Operating cost and capital expenditure assumptions are
subject to ongoing optimization and review by management.
Recoverable Amount Basis
In the absence of a relevant market transaction, we estimate the recoverable amount of our CGU on a FVLCD basis
using a discounted cash flow methodology, taking into account assumptions likely to be made by market participants
unless it is expected that the value in use methodology would result in a higher recoverable amount. For the asset
impairment and goodwill impairment analyses performed in 2023 and 2022, we have applied the FVLCD basis.
These estimates are classified as a Level 3 measurement within the fair value measurement hierarchy (Note 32).
10. Other Operating Income (Expense)
(CAD$ in millions)
Settlement pricing adjustments (Note 31(b))
Share-based compensation
Environmental costs and remeasurement of decommissioning and restoration
provisions for closed operations
Care and maintenance costs
Social responsibility and donations
Gain (loss) on disposal or contribution of assets
Commodity derivatives
Take-or-pay contract costs
Elkview business interruption claim (Note 28)
Other
$
$
2023
39
(107)
(168)
(62)
(66)
244
(12)
(75)
221
(220)
2022
(371)
(236)
(128)
(59)
(65)
(4)
35
(86)
–
(188)
$
(206)
$
(1,102)
Consolidated Financial Statements
103
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
11. Finance Income and Finance Expense
(CAD$ in millions)
Finance income
Investment income
Accretion on long-term receivables
Total finance income
Finance expense
Debt interest
Interest on QB2 project financing
Interest on advances from SMM/SC
Interest on lease liabilities
Letters of credit and standby fees
Accretion on decommissioning and restoration provisions
Other
Less capitalized borrowing costs (Note 17)
Total finance expense
12. Non-Operating Income (Expense)
(CAD$ in millions)
2023
2022
$
$
$
$
$
$
97
15
112
245
245
259
31
39
180
55
1,054
(780)
$
274
$
49
4
53
253
112
89
15
34
138
51
692
(489)
203
QB2 variable consideration to IMSA and ENAMI (a)
$
Foreign exchange gains (losses)
Loss on debt redemption or purchase (Note 20(a) and (g))
Downstream pipeline take-or-pay toll commitment
Other
2023
2022
(156)
(9)
–
(40)
(61)
$
(188)
15
(58)
–
(44)
$
(266)
$
(275)
a) QB2 Variable Consideration to IMSA and ENAMI
During the year ended December 31, 2023, we recorded $4 million (2022 – $5 million) of expense (Note 31(b)) related to
a derivative financial liability that arose from our 2018 acquisition of an additional 13.5% interest in QBSA through the
purchase of Inversiones Mineras S.A. (IMSA), a private Chilean company. This derivative financial liability is carried at
fair value, with changes in fair value being recognized in profit (loss). The purchase price at the date of acquisition
included additional amounts that may become payable to the extent that average copper prices exceed US$3.15 per
pound in each of the first three years following commencement of commercial production, as defined in the
acquisition agreement, up to a cumulative maximum of US$100 million if commencement of commercial production
occurs prior to January 21, 2024 or up to a lesser maximum in certain circumstances thereafter. At the date of the
acquisition, a nominal value was attributed to the additional payments. As at December 31, 2023, the fair value of this
financial liability is $115 million (2022 – $114 million) (Note 25), with estimated future average copper prices expected to
exceed the US$3.15 per pound threshold, based on the expected timing of commencement of commercial production.
During the year ended December 31, 2023, we recorded $152 million (2022 – $183 million) of expense related to
changes in the carrying value of the financial liability for the preferential dividend stream from QBSA to Empresa
Nacional de Minería (ENAMI). As at December 31, 2023, the carrying value of this financial liability, which is measured
104 Teck 2023 Annual Report
at amortized cost, is $444 million (2022 – $286 million) (Note 25). This financial liability is most significantly affected by
copper prices and the interest rate on the subordinated loans provided by us and SMM/SC to QBSA, which affects the
timing of when QBSA repays the loans.
The fair values of the IMSA and ENAMI liabilities are both calculated using a discounted cash flow method based on
quoted market prices and are considered Level 3 fair value measurements with significant unobservable inputs on the
fair value hierarchy (Note 32).
13. Supplemental Cash Flow Information
(CAD$ in millions)
Cash and cash equivalents
Cash
Investments with maturities from the date of acquisition of three months or less
(CAD$ in millions)
Net change in non-cash working capital items
Trade and settlement receivables
Inventories
Prepaids and other current assets
Trade accounts payable and other liabilities
14. Inventories
(CAD$ in millions)
Supplies
Raw materials
Work in process
Finished products
Less non-current portion (Note 15)
December 31, December 31,
2022
2023
$
$
$
399
345
744
$
259
1,624
$
1,883
2023
2022
$
(583)
(426)
(237)
256
$
(990)
$
478
(421)
(401)
237
(107)
December 31, December 31,
2022
2023
$
1 ,318
277
1,046
655
3,296
(350)
$
1,045
278
857
718
2,898
(213)
$
2,946
$
2,685
Cost of sales of $9.9 billion (2022 – $8.7 billion) includes $8.9 billion (2022 – $7.7 billion) of production costs that were
recognized as part of inventories and subsequently expensed when sold during the year.
Total inventories held at net realizable value amounted to $49 million at December 31, 2023 (2022 – $40 million). Total
inventory write-downs in 2023 were $26 million (2022 – $50 million) and were included as part of cost of sales.
Non-current inventories consist of ore stockpiles and other in-process materials that are not expected to be sold
within one year.
Consolidated Financial Statements
105
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
15. Financial and Other Assets
(CAD$ in millions)
Non-current receivables and deposits
Marketable equity and debt securities carried at fair value
Pension plans in a net asset position (Note 24(a))
Derivative assets
Non-current portion of inventories (Note 14)
Finite life intangibles (a)
Other
a) Finite Life Intangibles
December 31, December 31,
2022
2023
$
$
207
397
446
68
350
345
61
163
364
224
56
213
400
46
$
1,874
$
1,466
At January 1, 2022, we had a carrying value of internally developed finite life intangible assets of $395 million, which is
net of accumulated amortization and impairment of $67 million.
During the year ended December 31, 2023, there were additions of $83 million (2022 – $99 million), amortization of
$50 million (2022 – $49 million), impairment of $88 million (2022 – $9 million) recorded in the statement of income and
$nil assets transferred to held for sale on the balance sheet (2022 – $36 million).
The ending carrying value as at December 31, 2023 was $345 million (2022 – $400 million), which is net of accumulated
amortization and impairment of $263 million (2022 – $125 million).
16. Investment in Joint Venture
In August 2015, Teck and Newmont Corporation (Newmont) announced an agreement to combine their respective
Relincho and El Morro projects, located approximately 40 kilometres apart in the Huasco Province in the Atacama
Region of Chile, into a single project. The combined project is a joint arrangement that is structured through a separate
vehicle, classified as a joint venture named NuevaUnión, where Teck and Newmont each own 50%. The net assets of
NuevaUnión substantially relate to exploration and evaluation assets.
(CAD$ in millions)
At January 1, 2022
Contributions
Changes in foreign exchange rates
Share of profit
Other
At December 31, 2022
Contributions
Changes in foreign exchange rates
Share of profit
At December 31, 2023
106 Teck 2023 Annual Report
NuevaUnión
$
1,060
4
73
4
(2)
$
1 ,139
2
(27)
2
$
1 , 1 16
17. Property, Plant and Equipment
(CAD$ in millions)
At January 1, 2022
Cost
Accumulated depreciation
Exploration
and
Evaluation
Land, Capitalized
Buildings, Production
Plant and
Properties Equipment
Mineral
Stripping Construction
In Progress
Costs
Total
$
944
–
$ 21,362
(6,681)
$ 18,7 16
(9,578)
$
7,334
(4,646)
$ 9,931
–
$ 58,287
(20,905)
Net book value
$
944
$ 14,681
$ 9,138
$ 2,688
$ 9,931
$ 37,382
$
Year ended December 31, 2022
Opening net book value
Additions
Disposals
Asset impairment
Depreciation and amortization
Transfers between classifications
Changes in decommissioning,
944
102
–
(37)
–
–
$ 14,681
–
–
(247)
(325)
104
$ 9,138
389
(25)
(959)
(906)
1,420
$
2,688
1,138
–
–
(630)
–
$ 9,931
4,964
(5)
–
–
(1,524)
$ 37,382
6,593
(30)
(1,243)
(1 ,861)
–
restoration and other provisions
–
(743)
(145)
–
(142)
131
(546)
–
(735)
–
–
–
–
(888)
358
(129)
489
(1,552)
Capitalized borrowing costs
(Note 11)
Transfer to assets held for sale
Changes in foreign
exchange rates
28
235
172
52
718
1,205
Closing net book value
$
895
$ 13,290
$ 8,349
$ 3,248
$ 14,313
$ 40,095
At December 31, 2022
Cost
Accumulated depreciation
$
895
–
$ 20,364
(7,074)
$ 18,567
(10,218)
$ 8,596
(5,348)
$ 14,313
–
$ 62,735
(22,640)
Net book value
$
895
$ 13,290
$ 8,349
$ 3,248
$ 14,313
$ 40,095
$
Year ended December 31, 2023
Opening net book value
Additions
Disposals
Depreciation and amortization
Transfers between classifications (c)
Changes in decommissioning,
restoration and other provisions
Capitalized borrowing costs
(Note 11)
Changes in foreign
exchange rates
895
581
(12)
–
–
(7)
–
$ 13,290
198
(2)
(377)
324
$ 8,349
918
(34)
(964)
13,787
$ 3,248
1,198
–
(739)
–
$ 14,313
3,615
(7)
–
(14 , 1 1 1 )
$ 40,095
6 , 510
(55)
(2,080)
–
926
–
18
–
–
–
(6)
780
931
780
(25)
(89)
(282)
(25)
(195)
(616)
Closing net book value
$
1,432
$ 14,270
$ 21,792
$ 3,682
$ 4,389
$ 45,565
At December 31, 2023
Cost
Accumulated depreciation
$
1,432
–
$ 20,693
(6,423)
$ 32,637
(10,845)
$ 9,738
(6,056)
$ 4,389
–
$ 68,889
(23,324)
Net book value
$
1,432
$ 14,270
$ 21,792
$ 3,682
$ 4,389
$ 45,565
Consolidated Financial Statements
107
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
17. Property, Plant and Equipment (continued)
a) Exploration and Evaluation
Significant exploration and evaluation projects in property, plant and equipment include the Galore Creek, Zafranal,
San Nicolás and NewRange projects.
b) Borrowing Costs
Borrowing costs are capitalized at a rate based on our weighted average cost of borrowing or at the rate of the
project-specific debt, as applicable. Capitalized borrowing costs are classified with the asset they relate to within
mineral properties, land, buildings, plant and equipment, or construction in progress. Our weighted average borrowing
rate used for capitalization of borrowing costs in 2023 was 5.8% (2022 – 5.7%).
c) Transfers Between Classifications – 2023
The majority of the assets related to QB2 became available for use in December of 2023. As a result, we transferred
$1.3 billion into land, buildings, plant and equipment and $290 million into mineral properties from construction
in progress.
18. Goodwill
(CAD$ in millions)
January 1, 2022
Changes in foreign exchange rates
December 31, 2022
Changes in foreign exchange rates
December 31, 2023
Steelmaking
Coal Operations
Quebrada
Blanca
702
$
–
702
$
–
389
27
416
(10)
Total
$
1,091
27
$
1 , 1 1 8
(10)
702
$
406
$
1,108
$
$
$
The results of our annual goodwill impairment analysis and key assumptions used are outlined in Note 9(a) for the
steelmaking coal group of CGUs and Note 9(c) and (d) for the Quebrada Blanca CGU.
19. Trade Accounts Payable and Other Liabilities
(CAD$ in millions)
Trade accounts payable and accruals
Capital project accruals
Payroll-related liabilities
Accrued interest
Commercial and government royalties
Current portion of provisions (Note 25(a))
Settlement payables (Note 31(b))
Contract liabilities – consignment sales
Other IMSA payable
Current portion of downstream pipeline take-or-pay toll commitment
Other
December 31, December 31,
2022
2023
$
2,310
416
351
101
252
347
36
27
66
29
66
$
1,897
1 ,152
374
100
302
361
45
19
68
–
49
$
4,001
$
4,367
108 Teck 2023 Annual Report
20. Debt
($ in millions)
December 31, 2023
December 31, 2022
Face
Value
(US$)
Carrying
Fair
Value
Value
(CAD$) (CAD$)
Face
Value
(US$)
Fair
Value
(CAD$)
Carrying
Value
(CAD$)
3.75% notes due February 2023 (a)(i)
$
–
$
–
$
–
$
108
$
3.9% notes due July 2030 (a)(iii)
6.125% notes due October 2035 (a)(iii)(iv)
6.0% notes due August 2040 (a)(iv)
6.25% notes due July 2041 (a)(iii)(iv)
5.2% notes due March 2042 (a)(iii)
5.4% notes due February 2043 (a)(iii)
503
336
473
396
395
367
621
467
642
544
488
466
658
439
624
519
516
481
503
336
480
396
395
367
147
614
452
631
531
471
448
$
147
673
449
648
531
529
492
2,470
3,228
3,237
2,585
3,294
3,469
QB2 project financing facility (b)
2,206
2,979
2,873
2,500
3,419
3,322
Carmen de Andacollo short-term
loans (c)
Antamina loan agreement (d)
95
225
126
298
126
298
52
225
71
305
71
305
$ 4,996
$ 6,631
$ 6,534
$ 5,362
$ 7,089
$ 7,167
Less current portion of debt
(389)
(515)
(515)
(454)
(616)
(616)
$ 4,607
$ 6,116
$ 6,019
$ 4,908
$ 6,473
$ 6,551
The fair values of debt are determined using market values, if available, and discounted cash flows based on our cost
of borrowing where market values are not available. The latter are considered Level 2 fair value measurements with
significant other observable inputs on the fair value hierarchy (Note 32).
a) Notes Purchased or Redeemed
All of our outstanding notes are redeemable at any time by repaying the greater of the principal amount and the
present value of the sum of the remaining scheduled principal and interest amounts discounted at a comparable
treasury yield plus a stipulated spread, plus, in each case, accrued interest to, but not including, the date of
redemption. In addition, all of our outstanding notes, except for notes due October 2035, are callable at 100% (plus
accrued interest to, but not including, the date of redemption) within three to six months of maturity.
In February 2023, we redeemed the 3.75% notes due 2023 at maturity for $144 million (US$108 million) plus
i)
accrued interest.
In January 2022, we redeemed the 4.75% notes due 2022 at maturity for $187 million (US$150 million) plus accrued
ii)
interest.
iii) In 2022, we purchased US$93 million aggregate principal amount of our outstanding notes pursuant to an open
market purchase. The principal amount of the notes purchased comprised US$47 million of the 3.9% notes due 2030,
US$24 million of the 6.125% notes due 2035, US$8 million of the 6.25% notes due 2041, US$4 million of the 5.2% notes
due 2042 and US$10 million of the 5.4% notes due 2043. The total cost of the purchases, which was funded from cash
on hand, including the discounts and accrued interest was $120 million (US$90 million). We recorded a pre-tax gain of
$5 million in non-operating income (expense) (Note 12) in connection with these purchases.
Consolidated Financial Statements
109
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
20. Debt (continued)
iv) In 2022, we also purchased US$650 million aggregate principal amount of our outstanding notes pursuant to cash
tender offers. The principal amount of the notes purchased comprised US$249 million of the 6.125% notes due 2035,
US$10 million of the 6.0% notes due 2040, and US$391 million of the 6.25% notes due 2041. The total cost of the
purchases, which was funded from cash on hand, including the premiums and accrued interest was $909 million
(US$703 million). We recorded a pre-tax expense of $63 million in non-operating income (expense) (Note 12) in
connection with these purchases.
b) QB2 Project Financing Facility
As at December 31, 2023, the limited recourse QB2 project financing facility had a balance of US$2.2 billion. Amounts
drawn under the facility bear interest at Term SOFR plus applicable margins that vary over time. The facility will be
repaid in 15 remaining semi-annual instalments, with the first and second repayments of US$147 million made on June
15, 2023 and December 15, 2023 respectively. The facility is guaranteed pre-completion on a several basis by Teck and
SMM/SC pro rata to the respective equity interests in the Series A shares of QBSA. The facility is secured by pledges of
Teck’s and SMM/SC’s interests in QBSA and by security over QBSA’s assets, which consist primarily of QB2 project
assets.
c) Carmen de Andacollo Short-Term Loans
As at December 31, 2023, we had $126 million (US$95 million) of debt outstanding in the form of fixed rate short-term
bank loans with maturities of less than one year. The purpose of the loans is to fund the short-term working capital
requirements at Carmen de Andacollo.
d) Antamina Loan Agreement
On July 12, 2021, Antamina entered into a US$1.0 billion loan agreement, which was fully drawn as at December 31, 2023.
Our 22.5% share of the principal value of the loan is US$225 million. Amounts outstanding under this facility bear
interest at Term SOFR plus an applicable margin. The loan is non-recourse to us and the other Antamina owners and
matures in 2026.
e) Revolving Credit Facilities
We maintain a US$4.0 billion sustainability-linked revolving credit facility maturing October 2026. The facility has
pricing adjustments where the cost will increase, decrease or remain unchanged based on our sustainability
performance. Our sustainability performance over the term of the facility is measured by non-financial variables that
are specific to our greenhouse gas emissions intensity, the percentage of women in our workforce and our high-
potential safety incidents.
As at December 31, 2023, the facility was undrawn. Any amounts drawn under this facility can be repaid at any time
and are due in full at maturity. Amounts outstanding under the facility bear interest at Term SOFR plus an applicable
margin based on credit ratings and our sustainability performance, as described above. As defined in the agreement,
this facility requires our total net debt-to-capitalization ratio, which was 0.20 to 1.0 at December 31, 2023, not to
exceed 0.60 to 1.0 (Note 33). This facility does not have an earnings or cash flow-based financial covenant, a credit
rating trigger or a general material adverse effect borrowing condition.
We maintain uncommitted bilateral credit facilities primarily for the issuance of letters of credit to support our future
reclamation obligations. As at December 31, 2023, we had $2.6 billion of letters of credit outstanding.
We also had $1.2 billion in surety bonds outstanding at December 31, 2023 to support current and future reclamation
obligations.
110 Teck 2023 Annual Report
f) Scheduled Principal Payments
At December 31, 2023, scheduled principal payments during the next five years and thereafter are as follows:
($ in millions)
2024
2025
2026
2027
2028
Thereafter
g) Debt Continuity
($ in millions)
As at January 1
Cash flows
Proceeds from debt
Redemption, purchase or repayment of debt
Non-cash changes
Loss on debt redemption or purchase (Note 12)
Changes in foreign exchange rates
Finance fees, discount amortization and other
$
US$
389
294
519
294
294
CAD$
Equivalent
$
515
389
687
389
389
3,206
4,240
$
4,996
$
6,609
US$
CAD$ Equivalent
2023
2022
2023
$
5,292
$
5,816
$
7,167
$
170
(530)
445
(1,026)
–
–
8
45
–
12
230
(710)
–
(164)
11
2022
7,374
569
(1,323)
58
474
15
As at December 31
$
4,940
$
5,292
$
6,534
$
7, 167
21. Leases
a) Significant Individual Lease Arrangements
TAK leases road and port facilities from the Alaska Industrial Development and Export Authority, through which it
ships all concentrates produced at the Red Dog mine. The lease requires TAK to pay a minimum annual user fee of
US$6 million until 2040. As at December 31, 2023, the related lease liability was $85 million (2022 – $91 million).
QBSA entered into a contract with Transelec S.A. to lease an electrical power transmission system to connect the
QB2 project with the Chilean national power grid. In the fourth quarter of 2023, the Chilean National Electric
Coordinator issued the certificate that approves the entry into operation for the transmission system, leading to the
commencement date of the lease. The lease requires QBSA to pay approximately US$22 million per year, escalating
by 2.2% annually. As at December 31, 2023, the related lease liability was $428 million. The corresponding right-of-use
asset was $447 million.
b) Right-of-Use Assets
Our significant lease arrangements include contracts for leasing office premises, mining equipment, railcars, road and
port facilities and electrical power transmission systems. As at December 31, 2023, $1.1 billion (2022 – $612 million) of
right-of-use assets are recorded as part of land, buildings, plant and equipment within property, plant and equipment.
Consolidated Financial Statements
111
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
21. Leases (continued)
(CAD$ in millions)
Opening net book value
Additions
Depreciation
Changes in foreign exchange rates and other
Transfer to assets held for sale
Closing net book value
c) Lease Liability Continuity
(CAD$ in millions)
As at January 1
Cash flows
Principal payments
Interest payments
Non-cash changes
Additions
Interest expense
Changes in foreign exchange and other
Transfer to liabilities associated with assets held for sale
As at December 31
Less current portion of lease liabilities
Non-current lease liabilities
22. QB2 Advances from SMM/SC
2023
2022
$
$
612
673
(147)
(30)
–
$
1,108
$
2023
$
571
$
(160)
(31)
674
31
(24)
–
$
$
1,061
(195)
866
$
$
728
214
(142)
31
(219)
612
2022
694
(149)
(38)
210
38
25
(209)
571
(132)
439
In conjunction with the subscription arrangement with SMM/SC, QBSA entered into a subordinated loan facility agreement
with SMM/SC to advance QBSA up to US$1.3 billion. In 2022, QBSA entered into a second subordinated loan facility
agreement with SMM/SC to advance QBSA up to an additional US$750 million. In 2023, QBSA entered into a third and
fourth subordinated shareholder loan facility agreement with SMM/SC to advance QBSA up to an additional US$580 million
and US$395 million, respectively. The second, third and fourth subordinated loan facilities contain similar terms to the original
subordinated loan facility. The advances for all four facility agreements are due to be repaid in full at maturity on January 15,
2038. Amounts outstanding under the facilities bear interest at Term SOFR plus applicable margins that vary over time.
As at December 31, 2023, the original US$1.3 billion and the second US$750 million subordinated shareholder loan
facilities were fully drawn, US$578 million was outstanding under the third subordinated shareholder loan facility and
the fourth subordinated shareholder loan facility remains undrawn.
($ in millions)
December 31, 2023
December 31, 2022
QB2 advances from SMM/SC
$ 2,661
$ 3,589
$ 3,497
$ 1,693
$ 2,330
$ 2,279
Face
Value
(US$)
Carrying
Fair
Value
Value
(CAD$) (CAD$)
Face
Value
(US$)
Fair
Value
(CAD$)
Carrying
Value
(CAD$)
112 Teck 2023 Annual Report
The fair value of the advances is determined using discounted cash flows based on our cost of borrowing. This is
considered a Level 2 fair value measurement with significant observable inputs on the fair value hierarchy (Note 32).
a) QB2 Advances from SMM/SC Carrying Value Continuity
($ in millions)
US$
CAD$ Equivalent
As at January 1
$
1,683
$
997
$
2,279
$
2023
2022
2023
Cash flows
Advances
Non-cash changes
Finance fee amortization
Changes in foreign exchange rates
960
685
1,292
1
–
1
–
1
(75)
2022
1,263
899
1
116
As at December 31
$
2,644
$
1,683
$
3,497
$
2,279
23. Income Taxes
a) Tax Rate Reconciliation to the Canadian Statutory Income Tax Rate
(CAD$ in millions)
Profit from continuing operations before taxes
Loss from discontinued operations before taxes (Note 5)
Profit for the year from continuing and discontinued operations before taxes
Tax expense at the Canadian statutory income tax rate of 27% (2022 – 26.53%)
Tax effect of:
Resource taxes
Resource and depletion allowances
Non-deductible expenses (non-taxable income)
Tax pools not recognized (recognition of previously unrecognized tax pools)
Effect of new Chilean royalty (f)
Difference in tax rates in foreign jurisdictions
Revisions to prior year estimates
Non-controlling interests
Effect from sale of Fort Hills
Other
2023
3,944
(28)
3,916
1,057
$
$
$
$
$
$
2022
6,565
(956)
5,609
1,488
419
(64)
42
8
106
48
17
(25)
2
(2)
670
(96)
74
5
–
76
15
(21)
83
17
Total income taxes from continuing and discontinued operations
$
1,608
$
2 , 3 1 1
Represented by:
Current income taxes
Deferred income taxes
2,228
(620)
1 ,413
898
Total income taxes from continuing and discontinued operations
$
1,608
$
2 , 3 1 1
Provision for income taxes from continuing operations
Recovery of income taxes from discontinued operations
1,610
(2)
2,495
(184)
Total income taxes from continuing and discontinued operations
$
1,608
$
2 , 3 1 1
Current income taxes are accrued and paid in all jurisdictions in which we operate.
Consolidated Financial Statements
113
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
23. Income Taxes (continued)
b) Continuity of Deferred Tax Assets and Liabilities
(CAD$ in millions)
Net operating loss and capital loss
carryforwards
Property, plant and equipment
Decommissioning and restoration provisions
Other timing differences (TDs)
Deferred income tax assets
Net operating loss and capital loss
January 1,
2023
$
$
48
(165)
155
37
75
Through
Profit
(Loss)
Through
OCI
December 31,
2023
Transfer
$
$
13
(2)
12
(21)
$
–
–
–
(12)
$
2
$
(12)
$
–
–
–
–
–
–
68
–
–
–
–
–
$
$
61
(167)
167
4
65
$
(652)
7,894
(1,167)
(75)
116
161
(89)
$
68
$ 6,188
carryforwards
$
(458)
$
(205)
$
11
$
Property, plant and equipment
Decommissioning and restoration provisions
Unrealized foreign exchange
Withholding taxes
Inventories
Partnership income deferral and other TDs
7,234
(803)
(91)
133
148
615
638
(371)
7
(14)
10
(754)
Deferred income tax liabilities
$ 6,778
$
(689)
$
(46)
7
9
(3)
3
50
31
The transfer column refers to deferred tax assets and deferred tax liabilities related to assets held for sale (Note 5).
(CAD$ in millions)
Net operating loss and capital loss
carryforwards
Property, plant and equipment
Decommissioning and restoration provisions
Other TDs
Deferred income tax assets
Net operating loss and capital loss
January 1,
2022
$
$
141
(180)
190
10
161
Through
Profit
(Loss)
Through
OCI
December 31,
2022
Transfer
$
$
(98)
15
(35)
51
$
5
–
–
(24)
$
(67)
$
(19)
$
–
–
–
–
–
$
$
48
(165)
155
37
75
carryforwards
$
(532)
$
93
$
Property, plant and equipment
7,546
Decommissioning and restoration provisions
(1,050)
Unrealized foreign exchange
Withholding taxes
Inventories
Partnership income deferral and other TDs
(85)
100
156
(162)
Deferred income tax liabilities
$ 5,973
$
(333)
261
3
27
(9)
789
831
114 Teck 2023 Annual Report
(19)
89
(14)
(9)
6
1
(12)
$
–
$
(458)
(68)
–
–
–
–
–
7,234
(803)
(91)
133
148
615
$
42
$
(68)
$ 6,778
c) Deferred Tax Assets and Liabilities Not Recognized
We have not recognized $57 million (2022 – $299 million) of deferred tax assets associated with unused tax credits
and tax pools in entities and jurisdictions that do not have established sources of taxable income. Of the amount in
2022, $248 million related to the Quintette disposal group, which was sold in February 2023 (Note 6(c)).
Deferred tax liabilities of approximately $836 million (2022 – $858 million) have not been recognized on the unremitted
foreign earnings associated with investments in subsidiaries and interests in joint arrangements where we control the
timing of the reversal of the temporary differences and it is probable that such differences will not reverse in the
foreseeable future.
d) Loss Carryforwards
At December 31, 2023, we had $282 million Canadian net operating loss carryforwards (2022 – $166 million) and $1.89
billion (2022 – $1.22 billion) of Chilean net operating losses, which have an indefinite carryforward period. The deferred
tax benefit of these pools has been recognized.
e) Scope of Antamina’s Peruvian Tax Stability Agreement
The Peruvian tax authority, La Superintendencia Nacional de Aduanas y de Administración Tributaria (SUNAT), issued
income tax assessments for the 2013 to 2017 taxation years to Antamina (our joint operation in which we own a 22.5%
share), denying accelerated depreciation claimed by Antamina in respect of a mill expansion and other assets, on the
basis that the expansion was not covered by Antamina’s tax stability agreement applicable for the years up until 2017.
Antamina is continuing to pursue the matter in the Peruvian Judiciary Courts. The denial of accelerated depreciation
claimed is a timing issue in our tax provision, which we have recognized together with our share of previously paid
interest and penalties.
f) Chilean Mining Royalty Reform
The new two-tiered Chilean mining royalty regime on copper revenues and profit was enacted into law in 2023. As a
result, we recognized a deferred tax expense of $106 million, which represents our estimated additional future mining
royalties following the expiration of the tax stability agreements for Carmen de Andacollo and Quebrada Blanca in
2027 and 2037, respectively. This expense was calculated based on the existing taxable temporary differences that are
scheduled to reverse in future years.
24. Retirement Benefit Plans
We have defined contribution pension plans for certain groups of employees. Our share of contributions to these plans
is expensed in the year earned by employees.
We have multiple defined benefit pension plans registered in various jurisdictions that provide benefits based
principally on employees’ years of service and average annual remuneration. These plans are only available to certain
qualifying employees and some are now closed to additional members. The plans are “flat-benefit” or “final-pay” plans
and may provide for inflationary increases in accordance with certain plan provisions. All of our registered defined
benefit pension plans are governed and administered in accordance with applicable pension legislation in either
Canada or the United States. Actuarial valuations are performed at least every three years to determine minimum
annual contribution requirements as prescribed by applicable legislation. For the majority of our plans, current service
costs are funded based on a percentage of pensionable earnings or as a flat dollar amount per active member
depending on the provisions of the pension plans. Actuarial deficits are funded in accordance with minimum funding
regulations in each applicable jurisdiction. All of our defined benefit pension plans were actuarially valued within the
past three years. While the majority of benefit payments are made from registered held-in-trust funds, there are also
several unregistered and unfunded plans where benefit payment obligations are met as they fall due.
We also have several post-retirement benefit plans that provide post-retirement medical, dental and life insurance
benefits to certain qualifying employees and surviving spouses. These plans are unfunded and we meet benefit
obligations as they come due.
Consolidated Financial Statements
115
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
24. Retirement Benefit Plans (continued)
a) Actuarial Valuation of Plans
(CAD$ in millions)
2023
2022
Defined benefit obligation
Balance at beginning of year
Current service cost
Past service costs arising from plan improvements
Benefits paid
Interest expense
Obligation experience adjustments
Effect from change in financial assumptions
Effect from change in demographic assumptions
Changes in foreign exchange rates
Balance at end of year
Fair value of plan assets
Fair value at beginning of year
Interest income
Return on plan assets, excluding amounts
included in interest income
Benefits paid
Contributions by the employer
Changes in foreign exchange rates
Fair value at end of year
Funding surplus (deficit)
Less effect of the asset ceiling
Balance at beginning of year
Interest on asset ceiling
Change in asset ceiling
Balance at end of year
Net accrued retirement benefit asset (liability)
Represented by:
Pension assets (Note 15)
Accrued retirement benefit liability
Net accrued retirement benefit asset (liability)
$
$
$
$
Defined Non-Pension
Post-
Benefit
Retirement
Pension
Plans Benefit Plans
Defined Non-Pension
Post-
Benefit
Retirement
Pension
Plans Benefit Plans
1,834
39
–
(138)
90
11
93
1
(1)
1,929
2,371
117
115
(138)
28
(2)
2,491
562
390
19
(218)
191
371
$
343
22
–
(21)
16
(5)
14
–
1
370
–
–
–
(21)
21
–
–
(370)
–
–
–
–
$
2,407
$
420
63
4
(140)
71
12
(595)
2
10
26
—
(16)
12
(5)
(98)
—
4
1,834
343
2,858
86
(460)
(140)
19
8
2,371
537
99
9
282
390
—
—
—
(16)
16
—
—
(343)
—
—
—
—
$
(370)
$
147
$
(343)
$
446
(75)
$
–
(370)
$
224
(77)
371
$
(370)
$
147
$
—
(343)
(343)
A number of the plans have a surplus totalling $191 million at December 31, 2023 (2022 – $390 million), which is not
recognized on the basis that future economic benefits are not available to us in the form of a reduction in future
contributions or a cash refund.
116 Teck 2023 Annual Report
We expect to contribute $6 million to our defined benefit pension plans in 2024 based on minimum funding
requirements. The weighted average duration of the defined benefit pension obligation is 13 years and the weighted
average duration of the non-pension post-retirement benefit obligation is 13 years.
Defined contribution expense for 2023 was $68 million (2022 – $61 million).
b) Significant Assumptions
The discount rate used to determine the defined benefit obligations and the net interest cost was determined by
reference to the market yields on high-quality debt instruments at the measurement date with durations similar to
the duration of the expected cash flows of the plans.
Weighted average assumptions used to calculate the defined benefit obligation at the end of each year are as follows:
Discount rate
Rate of increase in future compensation
Medical trend rate
December 31, 2023
December 31, 2022
Defined Non-Pension
Post-
Benefit
Retirement
Pension
Plans Benefit Plans
Defined Non-Pension
Post-
Benefit
Pension
Retirement
Benefit Plans
Plans
4.63%
3.25%
–
4.64%
3.25%
5.00%
5.05%
3.25%
–
5.06%
3.25%
5.00%
c) Sensitivity of the Defined Benefit Obligation to Changes in the Weighted Average Assumptions
2023
Effect on Defined Benefit Obligation
Change in
Assumption
Increase in
Assumption
Decrease in
Assumption
Discount rate
Rate of increase in future compensation
Medical cost claim trend rate
1.0%
1.0%
1.0%
Decrease by 11%
Increase by 12%
Increase by 1%
Decrease by 1%
Increase by 1%
Decrease by 1%
2022
Effect on Defined Benefit Obligation
Change in
Assumption
Increase in
Assumption
Decrease in
Assumption
Discount rate
Rate of increase in future compensation
Medical cost claim trend rate
1.0%
1.0%
1.0%
Decrease by 10%
Increase by 12%
Increase by 1%
Decrease by 1%
Increase by 1%
Decrease by 1%
The above sensitivity analyses are based on a change in each actuarial assumption while holding all other
assumptions constant. The sensitivity analyses on our defined benefit obligation are calculated using the same
methods as those used for calculating the defined benefit obligation recognized on our balance sheet. The
methods and types of assumptions used in preparing the sensitivity analyses did not change from the prior period.
Consolidated Financial Statements
117
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
24. Retirement Benefit Plans (continued)
d) Mortality Assumptions
Assumptions regarding future mortality are set based on management’s best estimate in accordance with
published mortality tables and expected experience. These assumptions translate into the following average life
expectancies for an employee retiring at age 65:
2023
2022
Male
Female
Male
Female
Retiring at the end of the reporting period
Retiring 20 years after the end of the reporting period
85.4 years
86.4 years
87.7 years
88.7 years
85.3 years
87.7 years
86.3 years
88.6 years
e) Significant Risks
The defined benefit pension plans and post-retirement benefit plans expose us to a number of risks, the most
significant of which include asset volatility risk, changes in bond yields and any changes in life expectancy.
Asset volatility risk
The discount rate used to determine the defined benefit obligations is based on AA-rated corporate bond yields.
If our plan assets underperform this yield, the deficit will increase. Our strategic asset allocation includes a significant
proportion of equities that increases volatility in the value of our assets, particularly in the short term. We expect
equities to outperform corporate bonds in the long term.
Changes in bond yields
A decrease in bond yields increases plan liabilities, which are partially offset by an increase in the value of the plans’
bond holdings.
Life expectancy
The majority of the plans’ obligations are to provide benefits for the life of the member. Increases in life expectancy
will result in an increase in the plans’ liabilities.
f)
Investment of Plan Assets
The assets of our defined benefit pension plans are managed by external asset managers under the oversight of the
Teck Resources Limited Executive Pension Committee.
Our pension plan investment strategies support the objectives of each defined benefit plan and are related to each
plan’s demographics and timing of expected benefit payments to plan members. The objective for the plan asset
portfolios is to achieve annualized portfolio returns over five-year periods in excess of the annualized percentage
change in the Consumer Price Index plus a certain premium.
Strategic asset allocation policies have been developed for each defined benefit plan to achieve this objective. The
policies also reflect an asset/liability matching framework that seeks to reduce the effect of interest rate changes on
each plan’s funded status by matching the duration of the bond investments with the duration of the pension liabilities.
We do not use derivatives to manage interest rate risk. Asset allocation is monitored at least quarterly and rebalanced
if the allocation to any asset class exceeds its allowable allocation range. Portfolio and investment manager
performance is monitored quarterly and the investment guidelines for each plan are reviewed at least annually.
118 Teck 2023 Annual Report
The defined benefit pension plan assets at December 31, 2023 and 2022 are as follows:
(CAD$ in millions)
2023
2022
Quoted
Unquoted
Total %
Quoted
Unquoted
Total %
Equity securities
Debt securities
Real estate and other
$
$
$
829
1,138
69
$
$
$
–
–
455
33%
46%
21%
$
$
$
775
1,099
52
$
$
$
–
–
445
33%
46%
21%
25. Provisions and Other Liabilities
(CAD$ in millions)
December 31, December 31,
2022
2023
Decommissioning and restoration provisions and other provisions (a)
$
Obligation to Neptune Bulk Terminals (b)
Derivative liabilities (net of current portion of $15 (2022 – $10))
ENAMI preferential dividend liability (Note 12(a))
QB2 variable consideration to IMSA (Note 12(a))
Downstream pipeline take-or-pay toll commitment
Other liabilities
3,851
207
18
444
115
270
89
$
2,805
189
26
286
114
–
97
$
4,994
$
3 , 5 17
a) Decommissioning and Restoration Provisions and Other Provisions
The following table summarizes the movements in provisions for the year ended December 31, 2023:
(CAD$ in millions)
As at January 1, 2023
Settled during the year
Change in discount rate
Change in amount and timing of cash flows
Accretion
Additions due to formation of joint operation
Other
Changes in foreign exchange rates
As at December 31, 2023
Less current portion of provisions (Note 19)
Decommissioning and
Restoration Provisions
Other
Provisions
Total
$
2,820
$
346
$
3,166
(148)
325
715
180
44
(5)
(24)
3,907
(301)
(87)
–
31
6
–
–
(5)
291
(46)
(235)
325
746
186
44
(5)
(29)
4 , 19 8
(347)
Non-current provisions
$
3,606
$
245
$
3,851
During the year ended December 31, 2023, we recorded $36 million (2022 – $43 million) of additional study and
environmental costs arising from legal obligations through other provisions.
Consolidated Financial Statements
119
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
25. Provisions and Other Liabilities (continued)
Decommissioning and Restoration Provisions
The decommissioning and restoration provisions represent the present value of estimated costs for required future
decommissioning and other site restoration activities. These activities include removal of site structures and
infrastructure, recontouring and revegetation of previously mined areas and the management of water and water
quality in and around each closed site. The majority of the decommissioning and site restoration expenditures occur
near the end of, or after, the life of the related operation.
After the end of the life of certain operations, water quality management costs may extend for periods in excess of
100 years. Our provision for these expenditures was $990 million as at December 31, 2023 (2022 – $628 million), of
which $515 million (2022 – $277 million) relates to our steelmaking coal business unit.
For our steelmaking coal operations, the current and future requirements for water quality management are
established under a regional permit issued by the provincial government of British Columbia. This permit references
the Elk Valley Water Quality Plan (EVWQP). In October 2020, Environment and Climate Change Canada issued a
Direction under the Fisheries Act (the Direction) requiring us to undertake certain additional measures to address water
quality and fish habitat impacts in the upper Fording River and certain tributaries, and stipulating deadlines for
implementation of certain measures contemplated by the EVWQP. The Direction does not require construction of any
additional water treatment facilities beyond those already contemplated by the EVWQP, but sets out requirements
with respect to water management such as diversions, mine planning, fish monitoring and calcite prevention measures,
as well as the installation by December 31, 2030, of a 200-hectare geosynthetic cover trial in the Greenhills creek
drainage. Certain of the measures in the Direction, including the cover trial, will require incremental spending beyond
that already associated with the EVWQP. The estimated costs of the Direction have been included in our decommissioning
and restoration provisions as at December 31, 2023 and 2022.
In 2023, the decommissioning and restoration provisions were calculated using nominal discount rates between 5.61%
and 7.13% (2022 – 6.13% and 8.07%). We also used an inflation rate of 2.00% (2022 – 2.00%) over the long term in our
cash flow estimates. Total decommissioning and restoration provisions include $806 million (2022 – $736 million) in
respect of closed operations.
During the fourth quarter of 2023, our decommissioning and restoration provisions increased by $975 million compared
to the third quarter of 2023, of which $430 million related to a decrease in the discount rate and $545 million related
to an increase in reclamation cash flows. The increase in reclamation cash flows primarily related to changes in
planned reclamation work and updated cost estimates at our steelmaking coal operations, Highland Valley Copper
and Antamina.
b) Obligation to Neptune Bulk Terminals
Through our cost of services agreement with Neptune Bulk Terminals (Canada) Ltd. (Neptune), we owe amounts to
Neptune for any loans entered into by Neptune that are specifically related to funding the assets of our steelmaking
coal loading and handling operations. The carrying value of this obligation approximates fair value based on prevailing
market interest rates in effect at December 31, 2023. This is considered a Level 2 fair value measurement with significant
other observable inputs on the fair value hierarchy (Note 32). The current portion of this obligation is recorded as part
of trade accounts payable and other liabilities.
c) British Columbia Output-Based Pricing System
In February of 2024, the Government of British Columbia announced that the newly designed B.C. Output-Based
Pricing System will replace the CleanBC Industrial Incentive Program on April 1, 2024. Management is currently
assessing the effect on our financial statements.
120 Teck 2023 Annual Report
26. Equity
a) Authorized Share Capital
Our authorized share capital consists of an unlimited number of Class A common shares without par value, an unlimited
number of Class B subordinate voting shares without par value and an unlimited number of preferred shares without
par value issuable in series.
Class A common shares carry the right to 100 votes per share. Class B subordinate voting shares carry the right to one
vote per share. Each Class A common share is convertible, at the option of the holder, into one Class B subordinate
voting share. In all other respects, the Class A common shares and Class B subordinate voting shares rank equally.
The attributes of the Class B subordinate voting shares contain so-called “coattail provisions”, which provide that, in the event
that an offer (an “Exclusionary Offer”) to purchase Class A common shares, which is required to be made to all or substantially
all holders thereof, is not made concurrently with an offer to purchase Class B subordinate voting shares on identical terms,
then each Class B subordinate voting share will be convertible into one Class A common share at the option of the holder
during a certain period, provided that any Class A common shares received upon such conversion are deposited to the
Exclusionary Offer. Any Class B subordinate voting shares converted into Class A common shares pursuant to such
conversion right will automatically convert back to Class B subordinate voting shares in the event that any such shares are
withdrawn from the Exclusionary Offer or are not otherwise ultimately taken up and paid for under the Exclusionary Offer.
The Class B subordinate voting shares will not be convertible in the event that holders of a majority of the Class A
common shares (excluding those shares held by the offeror making the Exclusionary Offer) certify to Teck that they
will not, among other things, tender their Class A common shares to the Exclusionary Offer.
If an offer to purchase Class A common shares does not, under applicable securities legislation or the requirements of
any stock exchange having jurisdiction, constitute a “take-over bid” or is otherwise exempt from any requirement that
such offer be made to all or substantially all holders of Class A common shares, the coattail provisions will not apply.
b) Sunset of Dual Class Share Structure
On April 26, 2023, Teck’s shareholders approved a six-year sunset for the multiple voting rights attached to the Class A
common shares of Teck (the Dual Class Amendment). On May 12, 2023, each Teck Class A common share was
acquired by Teck in exchange for (i) one new Class A common share and (ii) 0.67 of a Class B subordinate voting share
recognized as a $302 million increase to Class B shares and reduction to retained earnings. The terms of the new Class
A common shares are identical to the previous terms of Class A common shares, except that on May 12, 2029, the new
Class A common shares will automatically convert into Class B subordinate voting shares, which will then be renamed
common shares, on a one-for-one basis, and for no additional consideration or premium.
c) Class A Common Shares and Class B Subordinate Voting Shares Issued and Outstanding
Shares (in 000’s)
As at January 1, 2022
Shares issued on options exercised (d)
Acquired and cancelled pursuant to normal course issuer bid (i)
As at December 31, 2022
Class A common shares conversion
Shares issued on dual class amendment (b)
Shares issued on options exercised (d)
Acquired and cancelled pursuant to normal course issuer bid (i)
As at December 31, 2023
Class A
Common
Class B
Subordinate
Shares Voting Shares
7,765
526,448
–
–
10,209
(30,703)
7,765
505,954
(110)
–
–
–
110
5,203
3,139
(4,738)
7,655
509,668
Consolidated Financial Statements
121
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
26. Equity (continued)
d) Share Options
The maximum number of Class B subordinate voting shares issuable to full-time employees pursuant to options
granted under our current stock option plan is 46 million. As at December 31, 2023, 9,566,369 share options remain
available for grant. The exercise price for each option is the closing price for our Class B subordinate voting shares on
the last trading day before the date of grant. Our share options are settled through the issuance of Class B subordinate
voting shares.
During the year ended December 31, 2023, we granted 1,383,085 share options to employees. These share options
have a weighted average exercise price of $54.66, vest in equal amounts over three years and have a term of ten years.
The weighted average fair value of share options granted in the year was estimated at $22.69 per option (2022 – $17.13)
at the grant date based on the Black-Scholes option-pricing model using the following assumptions:
Weighted average exercise price
Dividend yield
Risk-free interest rate
Expected option life
Expected volatility
Forfeiture rate
2023
$
54.66
$
0.92%
3.52%
2022
45.51
1.10%
1.50%
5.9 years
6.1 years
42%
1.93%
41%
1.43%
The expected volatility is based on a statistical analysis of historical daily share prices over a period equal to the
expected option life.
Outstanding share options are as follows:
2023
2022
Share
Options
(in 000’s)
Weighted
Average
Exercise
Price
Outstanding at beginning of year
15,057
$
Granted
Exercised
Forfeited
Expired
Outstanding at end of year
Vested and exercisable at end of year
1,383
(3, 117)
(252)
(4)
13,067
10,018
$
$
22.38
54.66
20.07
44.32
26.70
25.92
20.04
The average share price during the year was $54.46 (2022 – $45.75).
Share
Options
(in 000’s)
23,680
$
1,729
(10, 1 17 )
(216)
(19)
15,057
9,854
$
$
Weighted
Average
Exercise
Price
21 .12
4 5.51
23.16
32.26
26.75
22.38
19.04
122 Teck 2023 Annual Report
Information relating to share options outstanding at December 31, 2023, is as follows:
Outstanding Share Options (in 000’s)
Exercise
Price Range
Weighted Average Remaining Life
of Outstanding Options (months)
1,787
2,571
3,020
2,997
2,692
13,067
$ 5.34 — $ 13.57
$ 13.58 — $ 17.14
$ 17. 15 — $ 28.05
$ 28.06 — $ 39.89
$ 39.90 — $ 63. 1 1
$ 5.34 — $ 63. 11
25
66
29
67
100
59
Total share option compensation expense recognized for the year was $26 million (2022 – $26 million).
e) Deferred Share Units, Restricted Share Units, Performance Share Units and Performance Deferred Share Units
We have issued and outstanding deferred share units (DSUs), restricted share units (RSUs), performance share units
(PSUs) and performance deferred share units (PDSUs) (collectively, Units).
As of 2017, DSUs are granted to directors only. RSUs may be granted to both employees and directors. PSUs and
PDSUs are granted to certain officers only. DSUs entitle the holder to a cash payment equal to the closing price of
one Class B subordinate voting share on the Toronto Stock Exchange on the day prior to redemption. RSUs entitle the
holder to a cash payment equal to the weighted average trading price of one Class B subordinate voting share on the
Toronto Stock Exchange over 20 consecutive trading days prior to the payout date. PSUs and PDSUs vest subject to a
performance metric ranging from 0% to 200% based on corporate performance against grant-specific performance
criteria. As defined in our grant agreements, the performance metric for PSUs and PDSUs issued from 2017 to 2021
was based on both relative total shareholder return as compared to our compensation peer group and a calculation
based on the change in EBITDA over the vesting period divided by the change in a weighted commodity price index.
The performance metrics for PSUs and PDSUs issued in 2022 and later is based on a balanced scorecard, with 20%
related to each of relative shareholder return as compared to our compensation peer group, change in five-year
average return on capital employed for operating assets, operational production and cost performance as against the
annual budget, strategic execution, and performance measured against a sustainability progress index. Once vested,
PSUs and PDSUs entitle the holder to a cash payment equal to the weighted average trading price of one Class B
subordinate voting share on the Toronto Stock Exchange over 20 consecutive trading days prior to the payout date.
Officers can elect to receive up to 50% of their Units as PDSUs, which pay out following termination of employment
as described below.
PSUs and PDSUs vest on March 1 of the third year following the grant date. RSUs vest on various dates depending on
the grant date. DSUs granted to directors vest immediately. Units vest on a pro rata basis if employees retire or are
terminated without cause and unvested units are forfeited if employees resign or are terminated with cause.
DSUs and PDSUs may be redeemed on or before December 15 of the first calendar year commencing after the date on
which the participant ceases to be a director or employee, as applicable. RSUs and PSUs pay out on the vesting date.
Additional Units are issued to Unit holders to reflect dividends paid and other adjustments to Class B subordinate
voting shares.
In 2023, we recognized compensation expense of $81 million for Units (2022 – $210 million). The total liability and
intrinsic value for vested Units as at December 31, 2023 was $171 million (2022 – $230 million).
In 2023, we recognized total share-based compensation expense of $107 million (2022 – $236 million) in other
operating income (expense) (Note 10).
Consolidated Financial Statements
123
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
26. Equity (continued)
The outstanding Units are summarized in the following table:
(in 000’s)
DSUs
RSUs
PSUs
PDSUs
2023
2022
Outstanding
Vested Outstanding
Vested
1 ,837
1,336
656
253
4,082
1,837
–
–
219
2,056
2,1 29
2,203
1,072
227
5,631
2, 1 29
–
–
177
2,306
f) Accumulated Other Comprehensive Income
(CAD$ in millions)
Accumulated other comprehensive income – beginning of year
Currency translation differences:
Unrealized gain (loss) on translation of foreign subsidiaries
Foreign exchange differences on debt designated as a hedge of our
investment in foreign subsidiaries (net of taxes of $(9) and $9) (Note 31(b))
Gain (loss) on marketable equity and debt securities (net of taxes of $1 and $(14))
Share of other comprehensive income of joint venture
Remeasurements of retirement benefit plans (net of taxes of $(68) and $13)
Total other comprehensive income (loss)
Less remeasurements of retirement benefit plans recorded in retained earnings
2023
$
1,062
$
2022
202
(421)
56
(365)
(4)
–
151
(218)
(151)
822
(56)
766
93
1
(45)
815
45
Accumulated other comprehensive income – end of year
$
693
$
1,062
124 Teck 2023 Annual Report
g) Earnings (Loss) Per Share
The following table reconciles our basic and diluted earnings (loss) per share:
(CAD$ in millions, except per share data)
Net basic and diluted profit from continuing operations
Net basic and diluted loss attributable to non-controlling interest
Net basic and diluted profit attributable to shareholders of the company
from continuing operations
Net basic and diluted loss attributable to shareholders of the company
from discontinued operations
$
2023
2,334
(101)
2022
$
4,070
(19)
2,435
4,089
(26)
(772)
Total basic and diluted profit attributable to shareholders of the company
$
2,409
$
3,317
Weighted average shares outstanding (000’s)
Dilutive effect of share options
Weighted average diluted shares outstanding (000’s)
Earnings per share from continuing operations
Basic
Diluted
Loss per share from discontinued operations
Basic and diluted
Earnings per share
Basic earnings per share
Diluted earnings per share
517,828
7,516
526,7 18
9,136
525,344
535,854
$
$
$
$
$
4.70
4.64
$
$
7.77
7.63
(0.05)
$
(1.47)
4.65
4.59
$
$
6.30
6.19
At December 31, 2023, 1,321,427 (2022 – 1,635,225) potentially dilutive shares were not included in the diluted earnings
per share calculation because their effect was anti-dilutive.
For the year ended December 31, 2023 and December 31, 2022, there was a net loss attributable to discontinued
operations. Accordingly, for net loss attributable to discontinued operations, all share options would be considered
anti-dilutive and have been excluded from the calculation of diluted loss per share. The weighted average shares
outstanding and weighted average diluted shares outstanding are therefore the same for discontinued operations.
h) Dividends
Dividends of $0.625 per share were paid on our Class A common and Class B subordinate voting shares in the first
quarter of 2023, totalling $321 million (2022 – $337 million). We declared and paid dividends on our Class A common
and Class B subordinate voting shares of $0.125 per share in each of the second, third and fourth quarters of 2023 and
2022 respectively. During the year ended December 31, 2023, we declared and paid a total of $515 million of dividends
(2022 – $532 million).
Consolidated Financial Statements
125
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
26. Equity (continued)
i) Normal Course Issuer Bid
On occasion, we purchase and cancel Class B subordinate voting shares pursuant to normal course issuer bids that
allow us to purchase up to a specified maximum number of shares over a one-year period.
In November 2023, we renewed our regulatory approval to conduct a normal course issuer bid, under which we may
purchase up to 40 million Class B subordinate voting shares during the period from November 22, 2023 to November
21, 2024. All purchased shares will be cancelled. In 2023, we purchased and cancelled 4,737,561 Class B subordinate
voting shares for $250 million. In 2022, we purchased and cancelled 30,703,473 Class B subordinate voting shares for
$1.4 billion.
27. Non-Controlling Interests
Set out below is information about our subsidiaries with non-controlling interests and the non-controlling interest
balances included in equity.
Percentage of
Ownership Interest and
Voting Rights Held
by Non-Controlling December 31, December 31,
Interest
2023
40%
10%
5%
20%
$
1,104
$
18
126
56
2022
874
26
87
51
$
1,304
$
1,038
(CAD$ in millions)
Quebrada Blanca (a)
Carmen de Andacollo
Principal Place
of Business
Region I, Chile
Region IV, Chile
Elkview Mine Limited Partnership
British Columbia, Canada
Compañía Minera Zafranal S.A.C.
Arequipa Region, Peru
126 Teck 2023 Annual Report
a) Quebrada Blanca
The non-controlling interest in QBSA, the entity that owns QB2, consists of SMM/SC, who subscribed for a 30%
indirect interest in QBSA in 2019, and ENAMI, a Chilean state-owned agency that holds a 10% preference share
interest. ENAMI’s interest in QBSA does not require ENAMI to make contributions toward QBSA’s capital spending.
The following is the summarized financial information for Quebrada Blanca before intra-group eliminations. Quebrada
Blanca has non-controlling interests that are considered material to our consolidated financial statements.
(CAD$ in millions)
Summarized balance sheet
Current assets
Current liabilities
Current net assets
Non-current assets
Non-current liabilities
Non-current net assets
Net assets
Accumulated non-controlling interests
Summarized statement of comprehensive income (loss)
Revenue
Loss for the period
Other comprehensive income (loss)
Total comprehensive loss
Loss allocated to non-controlling interests
Summarized cash flows
Cash flows used in operating activities
Cash flows used in investing activities
Cash flows provided by financing activities
Effect of exchange rates on cash and cash equivalents
Increase in cash and cash equivalents
December 31, December 31,
2022
2023
$
$
$
$
$
$
1,025
1,576
(551)
20,639
14,378
6,261
5,710
1,104
$
$
$
595
$
(465)
(76)
(541)
(188)
$
$
$
(2,749)
$
(3,203)
5,994
(4)
$
38
$
442
1,946
(1,504)
17, 1 97
10,647
6,550
5,046
874
105
(257)
206
(51)
(95)
(1,579)
(3,304)
4,918
7
42
Consolidated Financial Statements
127
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
28. Contingencies
We consider provisions for all of our outstanding and pending legal claims to be adequate. The final outcome with
respect to actions outstanding or pending as at December 31, 2023, or with respect to future claims, cannot be predicted
with certainty. Significant contingencies not disclosed elsewhere in the notes to our financial statements are as follows:
Upper Columbia River Basin
Teck American Inc. (TAI) continues studies under the 2006 settlement agreement with the U.S. Environmental
Protection Agency (EPA) to conduct a remedial investigation on the Upper Columbia River in Washington State.
The Lake Roosevelt litigation involving Teck Metals Limited (TML) by the State of Washington and the Confederated
Tribes of the Coleville Reservation (CCT) in the Federal District Court for the Eastern District of Washington continues.
The case relates to historic discharges of slag and effluent from TML’s Trail metallurgical facility to the Upper Columbia
River. TML prevailed against the plaintiffs on citizen suit claims, seeking injunctive relief, statutory penalties and
attorney’s fees. In December 2012 on the basis of stipulated facts agreed between TML and the plaintiffs, the Court
found in favour of the plaintiffs in phase one of the case, issuing a declaratory judgment that TML is liable under the
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) for the plaintiffs’ response costs,
the amounts of which were determined in the second phase of the case. Additional response costs not yet claimed may
be recoverable. The third and final phase of the case pertains to the plaintiffs’ claims for natural resource damages.
In the second quarter of 2022, TML filed two early motions for summary judgment in respect of the CERCLA natural
resource damages claims, which were denied in the third quarter of 2022. Based on one of those rulings, in the first
quarter of 2023, TML subsequently filed a motion seeking a ruling that the CERCLA claims are not fully developed
and they should therefore be dismissed. The motion was denied, but not decided on the merits, and TML sought
reconsideration, which was denied by the Court in June 2023. TML filed a motion seeking certification for an
interlocutory appeal to the 9th Circuit Court of Appeals, which was denied.
In October 2023, TML filed a motion for partial summary judgment on CCT’s tribal service loss claim. This claim
comprises the entirety of CCT’s outstanding individual claims against TML. On February 6, 2024, the court granted
TML’s motion and dismissed CCT’s claim on the basis that tribal service loss claims are not cognizable as natural
resource damages claims under CERCLA.
The previously scheduled February 2024 trial with respect to natural resource damages and assessment costs has
been postponed and a new trial date has not yet been scheduled.
Until the studies contemplated by the EPA settlement agreement and additional damage assessments are completed,
it is not possible to estimate the extent and cost, if any, of any additional remediation or restoration that may be required
or to assess the extent of Teck’s potential liability for damages. The studies may conclude, on the basis of risk, cost,
technical feasibility or other grounds, that no remediation other than some residential soil removal should be undertaken.
If other remediation is required and damage to resources found, the cost of that remediation may be material.
Elk Valley Water Quality
On March 10, 2023, Environment and Climate Change Canada (ECCC) notified Teck Coal Limited (TCL) that it had
commenced an investigation for alleged violations under s.36(3) of the Fisheries Act as a result of alleged mine-
impacted discharges into Dry Creek and the upper Fording River from the Line Creek Operations. TCL is cooperating
with ECCC in its investigation. We are not currently able to determine the outcome of the investigation, which could
lead to charges, fines and administrative penalties that could be material.
Elkview Business Interruption Claim
In the fourth quarter of 2022, we submitted a business interruption insurance claim related to the structural failure of
the Elkview plant feed conveyor belt. No amount was recognized in the consolidated financial statements for the
insurance claim as of December 31, 2022, as the claims process was in progress. During 2023, we received insurance
proceeds of $221 million and the gain was recorded in other operating income (expense) (Note 10).
128 Teck 2023 Annual Report
29. Commitments
a) Capital Commitments
As at December 31, 2023, we had contracted for $949 million of capital expenditures that have not yet been
incurred for the purchase and construction of property, plant and equipment. This amount includes $534 million for
QB2, $198 million for our steelmaking coal operations and $216 million for our 22.5% share of Antamina. The amount
includes $832 million that is expected to be incurred within one year and $117 million within two to five years.
b) Red Dog Royalty
In accordance with the operating agreement governing the Red Dog mine, TAK pays a royalty to NANA Regional
Corporation, Inc. (NANA) on the net proceeds of production. A 25% royalty became payable in the third quarter of 2007
after we had recovered cumulative advance royalties previously paid to NANA. The net proceeds of production royalty
rate will increase by 5% every fifth year to a maximum of 50%. The increase to 40% of net proceeds of production
occurred in the fourth quarter of 2022. An expense of $262 million was recorded in 2023 (2022 – $461 million) in
respect of this royalty. The NANA royalty is expected to increase by another 5% to 45% in the fourth quarter of 2027.
c) Antamina Royalty
Our interest in the Antamina mine is subject to a net profits royalty equivalent to 7.4% of our share of the mine’s free
cash flow. An expense of $23 million was recorded in 2023 (2022 – $34 million) in respect of this royalty.
d) Purchase Commitments
We have a number of forward purchase commitments for the purchase of concentrates and other process inputs and
for shipping and distribution of products, which are incurred in the normal course of business. The majority of these
contracts are subject to force majeure provisions.
We have contractual arrangements for the purchase of power for Quebrada Blanca. These contracts are effective
from a range of dates occurring between 2016 and 2025. These agreements supply power until 2042 and require
payments of approximately US$248 million per year.
In 2020, we entered into a 14-year contractual arrangement to purchase power for Carmen de Andacollo. This
arrangement requires payments of approximately US$46 million per year.
In 2018, we entered into a 20-year contractual arrangement to purchase power for our Trail Operations, with an option
to extend for a further 10 years. This arrangement requires payments of approximately $75 million per year, escalating
at 2% per year.
30. Segmented Information
Based on the primary products we produce and our development projects, we have four reportable segments that
we report to our President and Chief Executive Officer – copper, zinc, steelmaking coal and corporate. The corporate
segment includes all of our initiatives in other commodities, our corporate growth activities and groups that provide
administrative, technical, financial and other support to all of our business units. Other operating income (expenses)
include general and administration, exploration, research and innovation and other operating income (expense). Sales
between segments are carried out on terms that arm’s-length parties would use. Total assets do not include intra-
group receivables between segments. Deferred tax assets have been allocated among segments.
As a result of the sale of our 21.3% interest in Fort Hills and associated downstream assets, we no longer present the
energy segment related to Fort Hills in the tables below. The segmented information related to Fort Hills is disclosed
as part of Note 5, Assets Held for Sale and Discontinued Operations.
Consolidated Financial Statements
129
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
30. Segmented Information (continued)
(CAD$ in millions)
Revenue (Note 7(a))
Cost of sales
Gross profit
Other operating income (expense)
Profit (loss) from operations
Net finance income (expense)
Non-operating income (expense)
Share of profit of joint venture
Profit (loss) before taxes from
continuing operations
Capital expenditures from
continuing operations
2023
Steelmaking
Coal
Zinc
Copper
Corporate
Total
$
3,425
$
3,051
$
8,535
$
(2,713)
(2,651)
(4,504)
400
(86)
314
(52)
–
–
4,031
201
4,232
(111)
(17)
–
–
–
–
(944)
(944)
576
(59)
–
$ 15,011
(9,868)
5,143
(773)
4,370
(162)
(266)
2
712
56
768
(575)
(190)
2
5
262
4,104
(427)
3,944
4,018
298
1,442
24
5,782
December 31, 2023
Goodwill (Note 18)
Total assets
406
–
702
–
1,108
$ 28,636
$
4,581
$ 19,364
$
3,612
$ 56,193
130 Teck 2023 Annual Report
(CAD$ in millions)
2022
Steelmaking
Coal
Zinc
Copper
Corporate
Total
Revenue (Note 7(a))
$
3,381
$
3,526
$
10,409
$
Cost of sales
Gross profit
Other operating income (expense)
Profit (loss) from operations
Net finance income (expense)
Non-operating income (expense)
Share of profit of joint venture
Profit (loss) before taxes from
continuing operations
Capital expenditures from
continuing operations
(1,982)
(2,755)
(4,008)
1,399
(367)
1,032
(248)
(185)
4
771
(55)
716
(38)
9
–
6,401
(398)
6,003
(86)
35
–
–
–
–
(765)
(765)
222
(134)
–
$
17,316
(8,745)
8 , 5 7 1
(1,585)
6,986
(150)
(275)
4
603
687
5,952
(677)
6,565
3,910
370
1 , 167
18
5,465
December 31, 2022
Goodwill (Note 18)
416
–
702
–
1 , 1 1 8
Total assets from continuing operations
$ 23,801
$
4,523
$
18,070
$
4,663
$ 51,057
Total assets from discontinued
operations – Unallocated
–
–
–
–
1,302
Total assets
$ 23,801
$
4,523
$
18,070
$
4,663
$ 52,359
The geographical distribution of all our non-current assets in 2023, and for our non-current assets that were not classified as
held for sale in 2022, other than financial instruments, deferred tax assets and post-employment benefit assets, is as follows:
(CAD$ in millions)
Canada
Chile
United States
Peru
Mexico
Other
December 31, December 31,
2022
2023
$
21 ,678
$
20,1 04
22,400
2,202
2,050
165
36
19,206
1 ,787
1,845
—
34
$ 48, 531
$
42,976
Consolidated Financial Statements
131
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
31. Financial Instruments and Financial Risk Management
a) Financial Risk Management
Our activities expose us to a variety of financial risks, which include foreign exchange risk, liquidity risk, interest rate
risk, commodity price risk, credit risk and other risks associated with capital markets. From time to time, we may use
foreign exchange, commodity price and interest rate contracts to manage exposure to fluctuations in these variables.
Our use of derivatives is based on established practices and parameters to mitigate risk and is subject to the
oversight of our Financial Risk Management Committee and our Board of Directors.
Foreign Exchange Risk
We operate on an international basis, and therefore, foreign exchange risk exposures arise from transactions denominated
in a currency other than the functional currency of the legal entity. Our foreign exchange risk arises primarily with respect
to the U.S. dollar, Chilean peso and Peruvian sol. Our cash flows from Canadian, Chilean and Peruvian operations are
exposed to foreign exchange risk, as commodity sales are denominated in U.S. dollars and a substantial portion of
operating expenses is denominated in local currencies.
We also have various investments in U.S. dollar functional currency subsidiaries, whose net assets are exposed to foreign
currency translation risk. This currency exposure is managed in part through our U.S. dollar denominated debt as a hedge
against these net investments.
U.S. dollar financial instruments subject to foreign exchange risk consist of U.S. dollar denominated items held in Canada
and are summarized below.
(US$ in millions)
Cash and cash equivalents
Trade and settlement receivables
Trade accounts payable and other liabilities
Debt (Note 20)
Reduced by: Debt designated as a hedging instrument in our net investment hedge
Net U.S. dollar exposure
December 31, December 31,
2022
2023
$
59
1,145
(743)
(2,470)
2,334
$
634
629
(570)
(2,585)
1,686
$
325
$
(206)
As at December 31, 2023, with other variables unchanged, a $0.10 strengthening of the Canadian dollar against the U.S.
dollar would result in a $33 million pre-tax loss (2022 – $26 million pre-tax gain) from our financial instruments. There
would also be a $1.1 billion pre-tax loss (2022 – $946 million) in other comprehensive income from the translation of
our foreign operations. The inverse effect would result if the Canadian dollar weakened by $0.10 against the U.S. dollar.
Liquidity Risk
Liquidity risk arises from our general and capital funding requirements. We have planning, budgeting and forecasting
processes to help determine our funding requirements to meet various contractual and other obligations. Note 20(e)
details our available credit facilities as at December 31, 2023.
Contractual undiscounted cash flow requirements for financial liabilities as at December 31, 2023 are as follows:
132 Teck 2023 Annual Report
(CAD$ in millions)
Trade accounts payable and
other financial liabilities
Debt (Note 20(f))
Lease liabilities
Obligation to Neptune Bulk Terminals
ENAMI preferential dividend liability
QB2 advances from SMM/SC
QB2 variable consideration to IMSA
Other liabilities
515
197
–
–
–
–
–
Estimated interest payments on debt
394
Estimated interest payments on
QB2 advances from SMM/SC
Estimated interest payments on lease
and other liabilities
Downstream pipeline take-or-pay toll
commitment
–
18
29
Interest Rate Risk
Less Than
1 Year
2—3 Years
4—5 Years
More Than
5 Years
$
3,497
$
–
$
–
$
–
$
1,076
261
31
–
–
132
104
614
–
26
60
778
186
30
–
–
–
11
4,240
1 ,107
143
606
3,520
–
13
452
1,828
–
19
65
2,039
81
254
Total
3,497
6,609
1 , 75 1
204
606
3,520
132
128
3,288
2,039
144
408
Our interest rate risk arises in respect of our holdings of cash, cash equivalents, floating rate debt and advances from
SMM/SC. Our interest rate management policy is to borrow at both fixed and floating rates to offset financial risks.
Cash and cash equivalents have short terms to maturity and receive interest based on market interest rates.
A 1% increase in the short-term interest rate at the beginning of the year, with other variables unchanged, would have
resulted in a $50 million pre-tax decrease in our profit (2022 – $29 million pre-tax decrease), not considering applicable
capitalization of interest expense. There would be no effect on other comprehensive income.
Commodity Price Risk
We are subject to price risk from fluctuations in market prices of the commodities that we produce. From time to time,
we may use commodity price contracts to manage our exposure to fluctuations in commodity prices and to avoid
mismatches in pricing reference periods. At the balance sheet date, we had zinc, lead and copper derivative contracts
outstanding as described in (b) below.
Our commodity price risk associated with financial instruments primarily relates to changes in fair value caused by
final settlement pricing adjustments to receivables and payables, derivative contracts for zinc, lead, copper and
embedded derivatives in our TAK road and port contract, in the ongoing payments under our silver stream and gold
stream arrangements and in the QB2 variable consideration to IMSA.
The following represents the effect on profit attributable to shareholders from a 10% change in commodity prices,
with other variables unchanged, based on outstanding receivables and payables subject to final pricing adjustments
at December 31, 2023 and December 31, 2022. There is no effect on other comprehensive income.
(CAD$ in millions)
Copper
Zinc
Steelmaking coal
Price on December 31,
Change in Profit
Attributable to Shareholders
2023
2022
2023
2022
US$3.80/lb.
US$3.87/lb.
US$1.20/lb.
US$1.35/lb.
US$264/tonne US$257/tonne
$
$
$
37
(1)
11
$
$
$
52
9
9
Consolidated Financial Statements
133
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
31. Financial Instruments and Financial Risk Management (continued)
A 10% change in the price of copper, zinc, lead, silver and gold, with other variables unchanged, would change our net asset
position of derivatives and embedded derivatives, excluding receivables and payables subject to final pricing adjustments,
and would result in a change of our pre-tax profit attributable to shareholders by $34 million (2022 – $35 million). There
would be no effect on other comprehensive income.
Credit Risk
Credit risk arises from cash, cash equivalents, derivative contracts, debt securities and trade receivables. While we are
exposed to credit losses due to the non-performance of our counterparties, there are no significant concentrations of
credit risk and we do not consider this to be a material risk.
Our primary counterparties related to our cash, cash equivalents, derivative contracts and debt securities carry
investment grade ratings as assessed by external rating agencies, which are monitored on an ongoing basis. All of our
commercial customers are assessed for credit quality at least once a year or more frequently if business- or customer-
specific conditions change based on an extensive credit rating scorecard developed internally using key credit metrics
and measurements that were adapted from S&P’s and Moody’s rating methodologies. Sales to customers that do not
meet the credit quality criteria are secured either by a parental guarantee, a letter of credit or prepayment.
For our trade receivables, we apply the simplified approach for determining expected credit losses, which requires us
to determine the lifetime expected losses for all our trade receivables. The expected lifetime credit loss provision for
our trade receivables is based on historical counterparty default rates and adjusted for relevant forward-looking
information, as required. Since the majority of our customers are considered to have low default risk and our historical
default rate and frequency of losses are low, the lifetime expected credit loss allowance for trade receivables is
nominal as at December 31, 2023.
Our investments in debt securities carried at fair value through other comprehensive income (loss) are considered to
have low credit risk, as our counterparties have investment grade credit ratings. The credit risk of our investments in
debt securities has not increased significantly since initial recognition of these investments and accordingly, the loss
allowance for investments in debt securities is determined based on the 12-month expected credit losses. The
12-month expected credit loss allowance is based on historical and forward-looking default rates for investment grade
entities, which are low and, accordingly, the 12-month expected credit loss allowance for our investments in debt
securities is nominal as at December 31, 2023.
Cash and cash equivalents are held with high quality financial institutions. Substantially all of our cash and cash
equivalents held with financial institutions exceeds government-insured limits. We have established credit policies
that seek to minimize our credit risk by entering into transactions with investment grade creditworthy and reputable
financial institutions and by monitoring the credit standing of the financial institutions with whom we transact. We
seek to limit the amount of exposure with any one counterparty.
b) Derivative Financial Instruments, Embedded Derivatives and Hedges
Sale and Purchase Contracts
We record adjustments to our settlement receivables and payables for provisionally priced sales and purchases,
respectively, in periods up to the date of final pricing based on movements in quoted market prices or published
price assessments for steelmaking coal. These arrangements are based on the market price of the commodity and
the value of our settlement receivables and payables will vary, as prices for the underlying commodities vary in the
metal markets. These final pricing adjustments result in gains (losses from purchases) in a rising price environment
and losses (gains from purchases) in a declining price environment and are recorded in other operating income
(expense).
134 Teck 2023 Annual Report
The table below outlines our outstanding settlement receivables and payables, which were provisionally valued at
December 31, 2023 and December 31, 2022.
Outstanding at
December 31, 2023
Outstanding at
December 31, 2022
Volume
Price
Volume
Price
Receivable positions
Copper (pounds in millions)
Zinc (pounds in millions)
Lead (pounds in millions)
Steelmaking coal (tonnes in thousands)
Payable positions
Zinc payable (pounds in millions)
Lead payable (pounds in millions)
127
167
US$3.87/lb.
US$1.20/lb.
US$0.94/lb.
504 US$264/tonne
17
168
218
17
US$3.80/lb.
US$1.35/lb.
US$1.05/lb.
388
US$257/tonne
121
15
US$1.20/lb.
US$0.94/lb.
75
18
US$1.35/lb.
US$1.05/lb.
At December 31, 2023, total outstanding settlement receivables were $1.3 billion (2022 – $1.1 billion) and total
outstanding settlement payables were $36 million (2022 – $45 million) (Note 19). These amounts are included in
trade and settlement receivables and in trade accounts payable and other liabilities, respectively, on the
consolidated balance sheets.
Zinc, Lead and Copper Swaps
Due to ice conditions, the port serving our Red Dog mine is normally only able to ship concentrates from July to
October each year. As a result, zinc and lead concentrate sales volumes are generally higher in the third and fourth
quarters of each year than in the first and second quarters. During 2023 and 2022, we purchased and sold zinc and
lead swaps to match our economic exposure to the average zinc and lead prices over our shipping year, which is
from July of one year to June of the following year.
All zinc, lead and copper swaps derivative contracts mature in 2024. These contracts are not designated as hedging
instruments and are recorded at fair value in prepaids and other current assets on our consolidated balance sheet.
The fair value of our commodity swaps is calculated using a discounted cash flow method based on forward metal
prices. A summary of these derivative contracts and related fair values as at December 31, 2023 is as follows:
Derivatives not designated
as hedging instruments
Zinc swaps
Lead swaps
Copper swaps
Quantity
209 million lbs.
64 million lbs.
18 million lbs.
Average Price
of Purchase
Commitments
US$1.19/lb.
US$0.94/lb.
US$3.85/lb.
Average Price
of Sale
Commitments
Fair Value
Asset (Liability)
(CAD$ in millions)
US$1.21/lb.
US$0.96/lb.
US$3.81/lb.
$
$
18
(3)
(1)
14
Consolidated Financial Statements
135
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
31. Financial Instruments and Financial Risk Management (continued)
Derivatives Not Designated as Hedging Instruments and Embedded Derivatives
(CAD$ in millions)
Zinc swaps
Lead swaps
Copper swaps
Settlement receivables and payables (Note 10)
Contingent zinc escalation payment embedded derivative
Gold stream embedded derivative
Silver stream embedded derivative
QB2 variable consideration to IMSA (Note 12(a))
Amount of Gain (Loss) Recognized in
Other Operating Income (Expense)
and Non-Operating Income (Expense)
2023
2022
$
$
(23)
(9)
(1)
39
5
12
4
(4)
15
3
–
(371)
27
(8)
(2)
(5)
$
23
$
(341)
Embedded Derivatives
The TAK road and port contract contains a contingent zinc escalation payment that is considered to be an embedded
derivative. The fair value of this embedded derivative was $30 million at December 31, 2023 (2022 – $36 million),
of which $7 million (2022 – $9 million) is included in trade accounts payables and other liabilities and the remaining
$23 million (2022 – $27 million) is included in provisions and other liabilities.
The gold stream and silver stream agreements each contain an embedded derivative in the ongoing future payments
due to us. The gold stream’s 15% ongoing payment contains an embedded derivative relating to the monthly average
gold price at the time of each delivery. The fair value of this embedded derivative was $48 million at December 31, 2023
(2022 – $37 million), of which $4 million (2022 – $3 million) is included in prepaids and other current assets and the
remaining $44 million (2022 – $34 million) is included in financial and other assets. The silver stream’s 5% ongoing
payment contains an embedded derivative relating to the spot silver price at the time of delivery. The fair value of this
embedded derivative was $26 million at December 31, 2023 (2022 – $24 million), of which $1 million (2022 – $2 million)
is included in prepaids and other current assets and the remaining $25 million (2022 – $22 million) is included in
financial and other assets.
Accounting Hedges
Net investment hedge
We manage the foreign currency translation risk of our various investments in U.S. dollar functional currency subsidiaries
in part through the designation of our U.S. dollar denominated debt as a hedge against these net investments. We
designate the spot element of the U.S. dollar debt as the hedging instrument. As only the spot rate element of the debt is
designated in the hedging relationship, no ineffectiveness is expected and no ineffectiveness was recognized in profit for
the years ended December 31, 2023 and 2022. The hedged foreign currency risk component is the change in the carrying
amount of the net assets of the U.S. dollar functional currency subsidiaries arising from spot U.S. dollar to Canadian
dollar exchange rate movements. At December 31, 2023, US$2.3 billion of our debt (2022 – US$1.7 billion) and U.S. dollar
investment in foreign operations were designated in a net investment hedging relationship. During the year ended
December 31, 2023, $65 million (2022 – $65 million) of foreign exchange translation on our U.S. dollar investment in
foreign operations was hedged by an offsetting amount of foreign exchange translation on our U.S. dollar denominated
debt. Refer to Note 26(f) for the effect of our net investment hedges on other comprehensive income.
136 Teck 2023 Annual Report
32. Fair Value Measurements
Certain of our financial assets and liabilities are measured at fair value on a recurring basis and classified in their entirety
based on the lowest level of input that is significant to the fair value measurement. Certain non-financial assets and
liabilities may also be measured at fair value on a non-recurring basis and classified in their entirety based on the lowest
level of input that is significant to the fair value measurement. There are three levels of the fair value hierarchy that
prioritize the inputs to valuation techniques used to measure fair value, with Level 1 inputs having the highest priority.
The levels and the valuation techniques used to value our financial assets and liabilities are described below:
Level 1 – Quoted Prices in Active Markets for Identical Assets
Level 1 inputs are unadjusted quoted prices in active markets that are accessible at the measurement date for
identical, unrestricted assets or liabilities.
Certain cash equivalents, certain marketable equity securities and certain debt securities are valued using quoted
market prices in active markets. Accordingly, these items are included in Level 1 of the fair value hierarchy.
Level 2 – Significant Observable Inputs Other than Quoted Prices
Level 2 inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active
markets, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability.
Derivative instruments and embedded derivatives are included in Level 2 of the fair value hierarchy, as they are valued
using pricing models or discounted cash flow models. These models require a variety of inputs, including, but not
limited to, market prices, forward price curves, yield curves and credit spreads. These inputs are obtained from or
corroborated with the market. Also included in Level 2 are settlement receivables and settlement payables from
provisional pricing on concentrate sales and purchases, certain refined metal sales and steelmaking coal sales
because they are valued using quoted market prices derived based on forward curves for the respective commodities
and published price assessments for steelmaking coal sales.
Level 3 – Significant Unobservable Inputs
Level 3 inputs are unobservable (supported by little or no market activity).
We include investments in certain equity securities in non-public companies in Level 3 of the fair value hierarchy
because they trade infrequently and have little price transparency.
Consolidated Financial Statements
137
Notes to Consolidated Financial Statements Years ended December 31, 2023 and 2022
32. Fair Value Measurements (continued)
The fair values of our financial assets and liabilities measured at fair value on a recurring basis at December 31, 2023
and 2022, are summarized in the following table:
(CAD$ in millions)
2023
2022
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Financial assets
Cash equivalents
Marketable and other
equity securities
Debt securities
Settlement receivables
Derivative instruments and
embedded derivatives
Financial liabilities
Derivative instruments and
embedded derivatives
Settlement payables
$ 345
$
–
$
– $ 345
$ 1,624
$
–
$
–
$ 1,624
79
184
–
–
–
1,254
150
–
–
229
184
1,254
69
159
–
–
–
1,118
150
–
–
219
159
1 , 1 18
–
92
–
92
–
74
–
74
$ 608
$ 1,346
$
150 $ 2,104
$ 1,852
$ 1,192
$
150
$ 3,194
$
$
–
–
–
$
148
36
$
– $
–
148
36
$
$
184
$
– $
184
$
–
–
–
$
149
45
$
$
194
$
–
–
–
$
149
45
$
194
The discounted cash flow models used to determine the FVLCD of certain non-financial assets are classified as Level 3
measurements. Refer to Note 9 for information about these fair value measurements.
Unless disclosed elsewhere in our financial statements (Note 12, Note 20, Note 22 and Note 25(b)), the fair value of the
remaining financial assets and financial liabilities approximate their carrying value.
33. Capital Management
The capital we manage is the total of equity and debt on our balance sheet. Our capital management objectives are to
maintain access to the capital we require to operate and grow our business while minimizing the cost of such capital
and providing for returns to our investors.
As defined in our internal policies, we target to maintain, on average, over time, a debt-to-adjusted EBITDA ratio of
approximately 2.0x consistent with an investment grade credit rating. This ratio is expected to vary from its target level
from time to time, reflecting commodity price cycles and corporate activity, including the development of major
projects. We may also review and amend such policy targets from time to time.
We maintain one committed sustainability-linked revolving facility in the amount of US$4.0 billion. As at December 31,
2023, our US$4.0 billion sustainability-linked revolving credit facility was undrawn. As defined in the agreement, it
includes a financial covenant that requires us to maintain a net debt-to-capitalization ratio that does not exceed 0.60
to 1.0 (Note 20(e)).
As at December 31, 2023, our debt-to-adjusted EBITDA ratio was 1.2x (2022 – 0.8x) and our net debt-to-capitalization
ratio was 0.20 to 1.0 (2022 – 0.19 to 1.0). We manage the risk of not meeting our financial targets through the issuance
and repayment of debt, our distribution policy, the issuance of equity capital and asset sales, as well as through the
ongoing management of operations, investments and capital expenditures.
138 Teck 2023 Annual Report
34. Key Management Compensation
The compensation for key management recognized in total comprehensive income in respect of employee services
is summarized in the table below. Key management consists of our directors, President and Chief Executive Officer,
Chief Operating Officer, and senior vice presidents.
(CAD$ in millions)
Salaries, bonuses, director fees and other short-term benefits
Post-employment benefits
Share option compensation expense
Compensation expense related to Units
2023
2022
$
$
23
7
11
29
70
$
$
23
(7)
12
54
82
Consolidated Financial Statements
139
Board of Directors1
Sheila A. Murray
Chair of the Board
Director since 2018
Norman B. Keevil, III
Vice Chair of the Board
Director since 1997
Jonathan H. Price
President and Chief Executive Officer
Director since 2022
Arnoud J. Balhuizen1,4,5
Director since 2023
Edward C. Dowling, Jr.2,3,5
Director since 2012
Tracey L. McVicar 1,2
Director since 2014
Una M. Power 1,2
Director since 2017
Yoshihiro Sagawa4
Director since 2022
Paul G. Schiodtz 1,4
Director since 2022
Timothy R. Snider 3,4,5
Director since 2015
Sarah A. Strunk3,4
Director since 2022
Notes:
1 Member of the Audit Committee
2 Member of the Compensation & Talent Committee
3 Member of the Corporate Governance & Nominating Committee
4 Member of the Safety & Sustainability Committee
5 Member of the Technical Committee
1 Directors listed as at February 22, 2024. More information on our directors and officers can be found in our most recent Annual Information Form or in
our Management Proxy Circular, which are available on our website at www.teck.com, under our profile on SEDAR+ at www.sedarplus.ca, and on the
EDGAR section of the United States Securities and Exchange Commission website at www.sec.gov.
140 Teck 2023 Annual Report
Officers1
Sheila A. Murray
Chair of the Board
Norman B. Keevil, III
Vice Chair of the Board
Jonathan H. Price
President and Chief Executive Officer
Ian K. Anderson
Senior Vice President and Chief
Commercial Officer
Shehzad Bharmal
Senior Vice President, Base Metals
Greg J. Brouwer
Senior Vice President, Technical
Alex N. Christopher
Senior Vice President
Réal Foley
Senior Vice President
Charlene A. Ripley
Senior Vice President and
General Counsel
Robin B. Sheremeta
President, Coal Business Unit
Dean C. Winsor
Senior Vice President and Chief
Human Resources Officer
Douglas B. Brown
Vice President, Corporate Affairs
Amparo Cornejo
Vice President, South America
Sepanta Dorri
Vice President, Decarbonization
and Chief of Staff
Brock Gill
Vice President, Operations and
Innovation, Base Metals
C. Jeffrey Hanman
Senior Vice President, Sustainability
and External Affairs
Sarah A. Hughes
Vice President, Assurance
and Advisory
Nicholas P.M. Hooper
Senior Vice President, Corporate
Development and Exploration
Karla L. Mills
Senior Vice President, Projects
Tyler S. Mitchelson
Senior Vice President, Copper Growth
H. Fraser Phillips
Senior Vice President, Investor
Relations and Strategic Analysis
Crystal J. Prystai
Senior Vice President and Chief
Financial Officer
K. Scott Jeffery
Vice President, Tax and Treasury
Amber C. Johnston-Billings
Vice President, Communities,
Government Affairs and
HSEC Systems
M. Colin Joudrie
Vice President, Business
Development
Scott E. Maloney
Vice President, Environment
Nicholas J. Marach
Vice President and Corporate
Controller
Stuart R. McCracken
Vice President, Exploration
and Geoscience
Michael A. O'Shaughnessy
Vice President, Marketing and
Logistics, Coal
Sheila M.S.S. Risbud
Vice President, Sustainable
Development, Coal
Amanda R. Robinson
Vice President, Legal and
Corporate Secretary
Donald J. Sander
Vice President, Operations, Coal
Jason J. Sangha
Vice President, Planning and
Strategy, Base Metals
André D. Stark
Vice President, Marketing and
Logistics, Base Metals
Joshua D. Tepper
Vice President, Health and Safety
and Chief Medical Officer
Nikola Uzelac
Vice President, Legal
Justin M. Webb
Vice President and Chief
Information Officer
Richard Whittington
Vice President, Projects and
Operational Excellence, Coal
1 Officers listed as at February 22, 2024. More information on our directors and officers can be found in our most recent Annual Information Form or in
our Management Proxy Circular, which are available on our website at www.teck.com, under our profile on SEDAR+ at www.sedarplus.ca, and on the
EDGAR section of the United States Securities and Exchange Commission website at www.sec.gov.
Officers
141
Corporate Information
2023 Share Prices and Trading Volume
Class B subordinate voting shares–TSX–CAD$/share
Q1
Q2
Q3
Q4
Class B subordinate voting shares–NYSE–US$/share
Q1
Q2
Q3
Q4
Class A common shares–TSX–CAD$/share
Q1
Q2
Q3
Q4
Stock Exchanges
Our Class A common shares and Class B subordinate voting
shares are listed on the Toronto Stock Exchange under the
symbols TECK.A and TECK.B, respectively.
Our Class B subordinate voting shares are also listed on the
New York Stock Exchange under the symbol TECK.
Dividends Declared on Class A and B Shares
Amount per share Payment Date
March 31, 2023
$
June 30, 2023
$
September 29, 2023
$
December 29, 2023
$
0.625
0.125
0.125
0.125
These dividends are eligible for both the Canadian federal
and provincial enhanced dividend tax credits.
Shares Outstanding at December 31, 2023
Class A common shares
Class B subordinate voting shares
7,654,532
509,667,714
Annual Meeting
Our annual meeting of shareholders will be held at 12:00 p.m.
on April 25, 2024.
Transfer Agents
Inquiries regarding change of address, stock transfers, registered
shareholdings, dividends, estate matters or lost certificates should
be directed to our Registrar and Transfer Agent:
TSX Trust Company
650 West Georgia Street, Unit 2200,
Vancouver, British Columbia V6B 4N9
142 Teck 2023 Annual Report
High
62.38
66.04
60.14
58.14
High
46.90
49.33
44.86
42.99
$
$
$
$
$
$
$
$
Low
44.70
51.01
50.20
47.47
Low
32.48
37.41
37.09
34.38
$
$
$
$
$
$
$
$
High
Low
94.24
$
$ 106.80
60.20
$
58.10
$
47.75
$
$
51.25
$ 50.00
44.46
$
$
$
$
$
$
$
$
$
$
$
$
$
Close
49.35
55.74
58.46
56.01
Volume
159,952,039
99,206,625
61,052,618
66,114,434
386,325,716
Close
36.50
42.10
43.09
42.27
Volume
54,161,047
67,400,912
50,732,796
58,172,088
230,466,843
Close
80.00
56.20
58.50
55.90
Volume
307,971
451,540
147,473
386,393
1,293,377
TSX Trust Company provides an AnswerLine Service for the
convenience of shareholders:
Toll-free in Canada and the United States
+1.800.387.0825
Outside Canada and the United States
+1.416.682.3860
Email: shareholderinquiries@tmx.com
Website: https://tsxtrust.com
Equiniti Trust Company
6201 15th Avenue,
Brooklyn, New York 11219
+1.800.937.5449 or +1.718.921.8124
Email: shareholderinquiries@tmx.com
Website: https://equiniti.com/us/ast-access/
Auditors
PricewaterhouseCoopers LLP
Chartered Professional Accountants
Suite 1400, 250 Howe Street,
Vancouver, British Columbia V6C 3S7
Annual Information Form
We prepare an Annual Information Form that is filed with the
securities commissions or similar bodies in all the provinces of
Canada. Copies of our Annual Information Form and annual and
quarterly reports are available on request or on our website at
www.teck.com, under our profile on SEDAR+ at www.sedarplus.ca,
and on the EDGAR section of the SEC website at www.sec.gov.
Teck Resources Limited
Suite 3300, 550 Burrard Street
Vancouver, British Columbia, Canada
V6C 0B3
+1.604.699.4000 Tel
www.teck.com