2024
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.
Pictured: Quebrada Blanca Operations.
View our 2024 Sustainability Report
2024
SUSTAINABILITY REPORT
1
Teck 2024 Annual Report
2
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 63.
All dollar amounts expressed throughout this report are in Canadian dollars unless otherwise noted.
OUR BUSINESS
Teck is a leading Canadian mining company providing metals essential to global
economic growth and the energy transition. Headquartered in Vancouver, British
Columbia (B.C.), Canada, we own or have interests in five world-class copper and zinc
operations, a large metallurgical complex and an industry-leading copper growth
pipeline, 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, supply chain security, health and safety,
environmental and social performance, materials stewardship, recycling and research.
Our corporate strategy centres around four key pillars: core excellence, metals for
the energy transition, value-driven growth and resilience. We are focused on
creating value by advancing responsible growth and ensuring resilience, built on a
foundation of stakeholder trust. We aim to maximize productivity and efficiency at
our existing operations, maintain a strong balance sheet, deliver commercial and
supply chain excellence, and be 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 provide safe workplaces, engage in
collaborative community relationships and support a healthy environment.
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Our Business
IN THIS REPORT
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5
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11
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25
26
65
138
138
139
Our Business
2024 Highlights
Letter from the Chair
Letter from the President and CEO
Management’s Discussion and Analysis
Copper
Zinc
Exploration
Financial Overview
Consolidated Financial Statements
Board of Directors
Executive Officers
Corporate Information
OUR BUSINESS
COPPER
We are a top 10 copper producer in the Americas, with ownership of or an interest
in four operating mines in Canada, Chile and Peru, and an industry-leading copper
growth portfolio.
ZINC
We are the largest net zinc miner globally, with production from our Red Dog
mine in Alaska and the Antamina copper mine in Peru, which has considerable
zinc co-product production. We also own one of the world’s largest fully integrated
zinc and lead smelting and refining facilities in British Columbia, Canada.
Operations &
Development Projects
Copper Operations
Quebrada Blanca
Highland Valley Copper
Antamina
Carmen de Andacollo
Zinc Operations
Red Dog
Trail Operations
Copper Development Projects
Quebrada Blanca Future Expansions
Highland Valley Copper Mine Life Extension
Zafranal
San Nicolás
NewRange
Galore Creek
Schaft Creek
NuevaUnión
Zinc Development Projects
Anarraaq and Aktigiruq
1
2
5
5
6
3
4
1
2
7
8
9
10
11
12
5
3
4
2
6
1
7
8
9
10
11
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Teck 2024 Annual Report
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5
2024 Highlights
2024 HIGHLIGHTS
Financial
• Adjusted EBITDA1 was $2.9 billion for the year, driven by record copper production as Quebrada Blanca (QB)
continued to ramp up, achieving design mill throughput rates by the end of 2024
• We recorded a loss from continuing operations before taxes of $718 million, due to an impairment charge on our
Trail Operations
• Adjusted profit from continuing operations attributable to shareholders1 was $605 million, or $1.17 per share for the year
• Loss from continuing operations attributable to shareholders was $467 million, or $0.90 per share for the year
• We returned $1.8 billion to shareholders through share buybacks and dividends in 2024, and completed $1.25 billion
of our $3.25 billion authorized share buyback program
• We reduced our debt by $2.5 billion in 2024
• On February 19, 2025, the Board declared a quarterly base dividend of $0.125 per share payable on March 31, 2025 to
shareholders of record on March 14, 2025
• We closed the year in a very strong financial position with liquidity of $11.9 billion, including $7.6 billion of cash, which
will enable us to advance our industry-leading copper growth strategy and continue to return cash to shareholders
Operating and Development
• Teck underwent a significant portfolio transformation in 2024, repositioning to a pure-play energy transition metals
business focused on copper growth with the sale of the steelmaking coal business
• With the ramp-up of QB in 2024, we achieved record annual copper production of 446,000 tonnes in 2024, up 50%
from 2023 production levels
• Performance at our Red Dog Operations was very strong in 2024, driven by an operational focus to improve mill
availability and minimize unplanned maintenance
• We are driving progress by completing feasibility studies, advancing detailed engineering, preparing for the execution
of advanced work programs and moving forward with permitting, particularly at the Highland Valley Copper Mine Life
Extension, Zafranal and San Nicolás projects, and advancing optimization of QB, with a strong focus on identifying
near-term growth opportunities for debottlenecking within the current asset base
• We received the required permit from the U.S. Army Corps of Engineers, and construction commenced of an all-season
road to access and drill the Anarraaq and Aktigiruq deposits, which are critical to the extension of the mine life of Red Dog
Safety and Sustainability Leadership
• Our High-Potential Incident (HPI) Frequency rate continued to remain low at 0.12 in 2024
• We were named to the Dow Jones Best-in-Class World Index (formerly S&P Dow Jones Sustainability World Index)
for the 15th consecutive year, based on the 2024 S&P Corporate Sustainability Assessment; listed as one of the 2024
Best 50 Corporate Citizens in Canada by Corporate Knights for the 18th consecutive year; and named to the Forbes
list of the World’s Top Companies for Women 2024, an employee-driven ranking of multinational corporations from
37 countries around the world
• We released our Climate Change and Nature 2024 Report, which for the first time combines the recommendations
of the Taskforce on Nature-related Financial Disclosures (TNFD) with the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD) to deliver an integrated report covering both the climate- and nature-
related aspects of our business
1 This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
Teck 2024 Annual Report
6
LETTER FROM THE CHAIR
Sheila A. Murray
Chair of the Board
To our valued shareholders,
I am pleased to present Teck’s Annual Report for 2024, a historic year in which we completed our transformation into a
pure-play energy transition metals company, setting the stage for significant future growth and value creation.
This evolution is the foundation of our strategy to deliver transformative near-term copper growth, while simultaneously
delivering significant returns to shareholders and maintaining a strong balance sheet through market cycles.
On behalf of the Board of Directors, I want to thank and recognize the hard work and dedication of the Teck team, who have
positioned the company for a bright future to capture value-accretive growth. In addition to completing our transformation,
we also made significant progress in the ramp-up of the expanded Quebrada Blanca (QB) Operations, a foundational asset
for our growth strategy, and advancing our near-term copper growth projects – all while maintaining a focus on health,
safety and sustainability.
Highlights included:
• Returning a total of $1.8 billion to shareholders through more than $1.25 billion in share buybacks in 2024 and $514 million
in dividends
• Establishing one of the strongest balance sheets in the sector, with US$1.8 billion of debt repayment in 2024 and
$7.6 billion cash available
• Advancing our industry-leading portfolio of copper growth projects, including San Nicolás in Mexico and Zafranal in
Peru, optimizing and debottlenecking QB, and progressing the mine life extension for Highland Valley Copper (HVC)
in Canada
• Maintaining our focus on social and environmental performance and commitment to diversity and inclusion, including
being named to the Forbes list of the World’s Top Companies for Women 2024, one of Forbes World’s Best Employers
2024, one of 2024’s Best 50 Corporate Citizens in Canada by Corporate Knights for the 18th consecutive year, and listed
on the Dow Jones Best-in-Class World Index for the 15th straight year
Teck’s Board of Directors was pleased to welcome two new members in 2024, Yu Yamato and James Gowans. We would
also like to thank Yoshihiro Sagawa and Tracey McVicar, both of whom retired from the Teck Board last year, for their service
and many contributions to Teck. I also want to acknowledge that Edward Dowling will not be standing for re-election to the
Board this year, and extend our gratitude for his 12 years of leadership.
7
Letter from the Chair
The progress made in 2024 has positioned Teck for a bright future, providing lasting benefits for shareholders while
responsibly producing the metals that matter for global development and the energy transition. In 2025, we will
continue executing on our copper growth strategy while maintaining a rigorous focus on safety, operational excellence
and sustainability.
Sheila A. Murray
Chair of the Board
Vancouver, B.C., Canada
February 19, 2025
Teck 2024 Annual Report
8
LETTER FROM THE
PRESIDENT AND CEO
Jonathan H. Price
President and Chief Executive Officer
To our valued shareholders,
2024 was a transformative year for Teck, our first as a pure-play energy transition metals company.
After a successful and historic transformation, our focus is to drive value-accretive growth of our energy transition metals
business by building our industry-leading copper growth pipeline while simultaneously providing significant returns to
shareholders. We head into 2025 well positioned to capitalize on our unique, market-resilient position to grow our copper
production supported by our balance sheet, which is among the strongest in the sector.
Health and Safety Performance
At Teck, our top priority is ensuring everyone goes home safe and healthy every day. While no fatalities occurred at Teck-
controlled sites last year, we were deeply saddened by a fatality at our joint venture site, Antamina, that occurred during
the placement of shipping containers with a crane. We worked closely with our partners to conduct a thorough investigation,
which resulted in several learnings to help prevent a future incident.
We also continued to advance our safety culture through the rollout of a new phase of our Courageous Safety Leadership
program, empowering employees to take ownership of safety and their safety leadership. Additionally, more than 80% of
frontline supervisors at our assets completed mental health first aid training, with a plan to continue this program in 2025.
Financial Performance
Driven by record copper production with the further ramp-up of Quebrada Blanca (QB) Operations, Teck achieved strong
financial results for the year, including adjusted EBITDA1 of $2.9 billion. We recorded a loss from continuing operations before
taxes of $718 million, due to an impairment charge on our Trail Operations.
In 2024, we returned over $1.8 billion to shareholders while also significantly reducing debt and retaining significant cash
on hand to execute our disciplined strategy to grow copper production. Heading into 2025, Teck has one of the strongest
balance sheets in our sector, which will enable us to continue balancing returns to shareholders with reducing debt and
investing in value-accretive growth. We ended the year with a cash balance of $7.6 billion and liquidity of $11.9 billion.
Disciplined Strategy to Grow Copper Production
We are currently a top 10 copper producer operating in the Americas and the largest net zinc miner globally, with production
from a premium portfolio of long-life, high-quality assets in stable, well-understood jurisdictions, and a clear path to reach
800,000 tonnes per year of copper production by the end of the decade.
1 This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
9
Letter from the President and CEO
In 2024, we achieved record annual copper production of 446,000 tonnes, up 50% from the year before. We also completed
construction of our new, expanded QB, which is the driver for our near-term growth. QB is a generational Tier 1 asset for
Teck, with a long life, a competitive cost position and a resource capable of supporting multiple expansion opportunities.
QB will be a cornerstone of our copper portfolio for decades to come, having the potential to be a top five copper mine
globally.
We will achieve our goal through planned investment in the range of US$3.2 to US$3.9 billion over four years to develop
four key near-term copper projects, which we will continue to advance to be in position for potential sanction decisions
in 2025:
• Quebrada Blanca: As ramp-up work nears completion, our focus moving forward is on further optimization and
debottlenecking of the operation to potentially increase throughput by a further 15 to 25%.
• Highland Valley Copper Mine Life Extension: We intend to extend the life of Canada’s largest copper mine to
the mid-2040s, leading to an estimated life-of-mine copper production of 137 ktpa (thousand tonnes per annum).
We expect most project execution planning to be complete in the second quarter of 2025.
• Zafranal: The environmental permit for the Zafranal project is in place and detailed engineering and execution
planning are progressing well. Over the first five years of production, Zafranal has an estimated copper production
of 126 ktpa, with substantial additional gold value.
• San Nicolás: As the permit application process continues, work is ongoing to engage with governments and
stakeholders, and the feasibility study and execution strategy are nearing completion. The San Nicolás project has
an estimated production of 63 ktpa of copper and 147 ktpa of zinc over the first five years.
Sustainability Performance
Strong social and environmental performance is aligned with our purpose and our values, and is also essential to our
ability to operate and grow.
In 2024, we continued building on our sustainability performance. In February, our Red Dog Operations received
The Zinc Mark in recognition of environmentally and socially responsible production practices – the first mining site
to receive the stand-alone Zinc Mark. All of Teck’s operating sites have now received certification under The Copper
or Zinc Mark program.
In December, we released our first integrated Climate Change and Nature Report, in addition to our annual Sustainability
Report, highlighting Teck’s continued emphasis on sustainability.
Teck 2024 Annual Report
10
LETTER FROM THE
PRESIDENT AND CEO (continued)
Teck’s commitment to high environmental and social performance standards continues to earn recognition. In 2024,
Teck was named to the Dow Jones Best-in-Class World Index for the 15th straight year and ranked third in the S&P
Global Corporate Sustainability Assessment in the metals and mining industry.
Future Focused on Growth
2024 marked the beginning of a new era for Teck. We successfully transformed into a pure-play energy transition
metals company with leading copper growth. As a leading global supplier with an exceptionally strong financial position,
we are uniquely placed to deliver significant value by balancing growth with shareholder returns. We have a clear path
to grow copper production to 800,000 tonnes per year by the end of the decade.
Moving forward into 2025, with our transformation complete, we turn our attention to realizing the generational opportunity
we have created, with a focus on driving growth, value creation and resilience, built on a foundation of stakeholder trust
and a commitment to excellence.
Jonathan H. Price
President and Chief Executive Officer
Vancouver, B.C., Canada
February 19, 2025
11
Management’s Discussion and Analysis
MANAGEMENT’S
DISCUSSION AND
ANALYSIS
12
Teck 2024 Annual Report
Our business involves exploring for, acquiring, developing and producing metals essential to global development and the
energy transition. We are organized into two regional business units — North America and Latin America (LATAM) — and we
have a dedicated Projects group to develop and execute brownfield and greenfield projects. This framework provides Teck
with a streamlined executive leadership team and regional structure to deliver on our strategy of copper growth, balanced
with returns to shareholders and a strong balance sheet. It positions Teck to drive efficient and effective operational
performance while responsibly capitalizing on value-accretive growth opportunities to maximize value for shareholders.
Our reported segmented financial results and summary information contained in our Management’s Discussion and
Analysis will continue to be disclosed on a commodity basis for our copper and zinc operations.
Through our interests in mining and processing operations in Canada, the United States (U.S.), Chile and Peru, we are a
top 10 copper producer in the Americas and the largest net zinc miner globally, with production from a premium portfolio of
long-life, high-quality assets in stable, well-understood jurisdictions. 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 19, 2025 and should be
read in conjunction with our audited annual consolidated financial statements for the year ended December 31, 2024.
Unless the context otherwise dictates, a reference to Teck, Teck Resources, the Company, us, we or our refers to Teck
Resources Limited and its consolidated subsidiaries. All dollar amounts are in Canadian dollars, unless otherwise stated,
and are based on our 2024 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 54
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 63, 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.
MANAGEMENT’S DISCUSSION
AND ANALYSIS
13
Management’s Discussion and Analysis
Segmented Results
The following table shows a summary of our production of our principal products for the last five years and our guidance
for production in 2025.
Average commodity prices and exchange rates for the past three years, which are key drivers of our profit, are
summarized in the following table.
Our revenue, gross profit and gross profit before depreciation and amortization, by segment, for the past three
years are summarized in the following table.
Five-Year Production Record and 2025 Production Guidance
2025
Principal Products
2020
2021
2022
2023
2024
Guidance
Copper1 thousand tonnes
276
287
270
296
446
490 – 565
Zinc
Contained in concentrate1 thousand tonnes
587
607
650
644
616
525 – 575
Refined thousand tonnes
305
279
249
267
256
190 – 230
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 this operation. Zinc contained in concentrate
production includes co-product zinc production from our 22.5% interest in Antamina.
Gross Profit Before
Revenue
Gross Profit
Depreciation and Amortization1
($ in millions)
2024
2023
2022
2024
2023
2022
2024
2023
2022
Copper
$ 5,542 $ 3,425 $ 3,381
$ 1,045
$
712
$ 1,399
$ 2,401
$ 1,265 $ 1,837
Zinc
3,523
3,051
3,526
562
400
771
871
708
1,044
Steelmaking coal2
–
–
10,409
–
–
6,401
–
–
7,364
Total
$ 9,065 $ 6,476 $ 17,316
$ 1,607
$
1,112
$ 8,571
$ 3,272
$ 1,973 $ 10,245
Notes:
1.
This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
2. Results from the steelmaking coal segment in 2024, and comparative figures for 2023 have been re-presented for the classification of
steelmaking coal as a discontinued operation. 2022 figures have not been re-presented.
US$
2024
% chg
2023
% chg
2022
Copper (LME cash — $/pound)
$
4.15
+8%
$
3.85
-4 %
$
3.99
Zinc (LME cash — $/pound)
1.26
+5%
1.20
-24%
1.58
Exchange rate (Bank of Canada)
US$1 = CAD$
1.37
+1%
1.35
+4%
1.30
CAD$1 = US$
0.73
-1%
0.74
-4%
0.77
14
Teck 2024 Annual Report
In 2024, we produced 446,000 tonnes of copper from our Quebrada Blanca and Carmen de Andacollo operations
in Chile, our Highland Valley Copper Operations in Canada and our 22.5% interest in Antamina in Peru.
In 2024, our copper segment accounted for 61% of our revenue and 65% of our gross profit.
COPPER
Gross Profit (Loss) Before
Revenue
Gross Profit (Loss)
Depreciation and Amortization1
($ in millions)
2024
2023
2022
2024
2023
2022
2024
2023
2022
Quebrada Blanca $ 2,376 $
595
$
105
$
38
$
(142) $
2
$
766
$
(61) $
8
Highland Valley
Copper
1,303
1,125
1,454
221
237
580
471
391
738
Antamina
1,436
1,296
1,423
737
657
818
1,038
899
1,021
Carmen de
Andacollo
427
409
399
44
(32)
2
121
44
73
Other
–
–
–
5
(8)
(3)
5
(8)
(3)
Total
$ 5,542 $ 3,425
$ 3,381
$ 1,045
$
712
$ 1,399
$ 2,401
$ 1,265 $ 1,837
Note:
1.
This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
Production1
Sales1
(thousand tonnes)
2024
2023
2022
2024
2023
2022
Quebrada Blanca
208
63
10
197
57
9
Highland Valley Copper
102
99
119
103
98
127
Antamina
96
95
102
98
95
101
Carmen de Andacollo
40
39
39
37
41
39
Total
446
296
270
435
291
276
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.
15
Management’s Discussion and Analysis
Operations
Quebrada Blanca
Quebrada Blanca Operations (QB) is located in the Tarapacá Region of northern Chile. We have a 60% indirect interest
in Compañía Minera Teck 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 Corporación Nacional del
Cobre de Chile (Codelco), following their acquisition of the interest from the previous owner, Empresa Nacional de
Minería (ENAMI), in 2024. Codelco’s 10% preference share interest in QBSA does not require Codelco to fund capital
spending, which is funded by Teck and SMM/SC on a pro rata basis.
QB’s gross profit in 2024 was $38 million, compared with a gross loss of $142 million in 2023 and gross profit of
$2 million in 2022. Gross profit in 2024 was primarily due to increased production as our operation continued to ramp
up through the year.
QB produced 207,800 tonnes of copper in concentrate and no copper cathode in 2024 (as copper cathode is no longer
produced), compared to 55,500 tonnes of copper in concentrate and 7,200 tonnes of copper cathode in 2023. Copper
production ramped up each quarter throughout 2024, achieving designed throughput rates by the end of 2024.
New three-year collective bargaining agreements with two of our three labour unions at QB, representing 78% of the
workforce, were ratified in 2024.
We expect our annual 2025 copper production from QB to be between 230,000 and 270,000 tonnes as QB continues
to ramp up, consistent with our previously disclosed guidance issued on January 20, 2025. Our 2025 production
guidance for QB includes an extended scheduled shutdown for 18 days in January 2025 to conduct maintenance and
reliability work, and to complete additional tailings lifts as part of the operational ramp-up. Although we expect an
overall increase in ore grades in 2025 over 2024, we expect to mine in lower-grade areas in the first quarter of 2025,
in line with the scheduled mine plan. Consistent with our operating plans, we plan to continue to have quarterly
maintenance shutdowns. We expect copper production from QB over the next three years to be between 280,000 and
310,000 tonnes in 2026, 280,000 and 310,000 tonnes in 2027, and 270,000 and 300,000 tonnes in 2028. Molybdenum
production is expected to be between 3,000 and 4,500 tonnes in 2025, 6,400 and 7,600 tonnes in 2026, 7,000 and
8,000 tonnes in 2027, and 6,000 and 7,000 tonnes in 2028. Annual production in 2028 is in line with expected grade
variation in the mine plan. The QB debottlenecking project could lead to a further increase in throughput by 10%–15%,
with associated production increases dependent on ore feed grades and recoveries. The results of the QB
debottlenecking project are not reflected in disclosed production guidance ranges.
Highland Valley Copper
Highland Valley Copper Operations (HVC) is located in south-central B.C., Canada. Gross profit was $221 million
in 2024, compared with $237 million in 2023 and $580 million in 2022. Gross profit in 2024 decreased from 2023,
primarily due to lower amounts of stripping costs being capitalized and an increase in depreciation of capitalized
stripping, partially offset by higher copper prices.
Copper production in 2024 from HVC increased to 102,400 tonnes compared with 98,800 tonnes produced in 2023.
The higher production in 2024 was primarily a result of higher throughput in the mill, partly offset by lower grades and
recovery. In the fourth quarter of 2024, we commenced mining in the Lornex pit, which is higher grade; accordingly,
we expect an increase in annual production from HVC in 2025, as reflected in our previously disclosed guidance.
Copper production from HVC in 2025 is expected to increase significantly to between 135,000 and 150,000 tonnes, as
mining continues in the Lornex pit, releasing ore that is both higher grade and softer, with the latter driving higher mill
throughput. These factors combined will more than offset the expected lower recovery rates associated with the
Lornex ore. Copper production is expected to be between 130,000 and 150,000 tonnes in 2026, 120,000 and 140,000
tonnes in 2027, and 70,000 and 90,000 tonnes in 2028. Our disclosed production guidance does not include the HVC
Mine Life Extension project (HVC MLE), which could be sanctioned in 2025. As a result, our 2028 annual production
guidance reflects production at the end of mine life for HVC. If the project is sanctioned, production guidance would
be updated at that time. Molybdenum production in 2025 is expected to be between 1,600 and 2,100 tonnes, with
production expected to be between 2,300 and 2,800 tonnes in 2026, 2,700 and 3,200 tonnes in 2027, and 1,800 and
2,400 tonnes in 2028.
16
Teck 2024 Annual Report
Antamina
We have a 22.5% share interest in Compañía Minera Antamina S.A. (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 2024
was $737 million compared with $657 million in 2023 and $818 million in 2022. Gross profit in 2024 was higher than 2023
as a result of higher copper and zinc prices, offset partially by lower zinc production, as expected in the mine plan.
On a 100% basis, Antamina’s copper production in 2024 was 426,900 tonnes, slightly higher than 423,500 tonnes
produced in 2023, as the treatment of a higher percentage of copper-only ore was largely offset by lower grades. Zinc
production in 2024 decreased to 267,900 tonnes from 463,100 tonnes produced in 2023 as a result of processing a
greater amount of copper-only ore in 2024. Molybdenum production in 2024 was 8,100 tonnes, which was 131% higher
than in 2023.
In 2024, Antamina’s labour union ratified a new three-year collective bargaining agreement.
In 2022, Antamina submitted a Modification of Environmental Impact Assessment (MEIA) 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, spent over eight years.
Pursuant to a long-term streaming agreement made in 2015, Teck delivers an equivalent of 22.5% of payable silver sold
by Antamina 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 2024, approximately 2.0 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 29.1 million ounces of silver have been delivered under
the agreement from the effective date in 2015 to December 31, 2024.
Our 22.5% share of copper production at Antamina will remain relatively stable over the next few years and zinc
production is expected to decline, as expected in the mine plan. Our 22.5% share of 2025 production at Antamina
is expected to be in the range of 80,000 to 90,000 tonnes of copper, 95,000 to 105,000 tonnes of zinc, and 500 to
800 tonnes of molybdenum. Our share of annual copper production is expected to be between 95,000 and 105,000
tonnes in 2026, 85,000 and 95,000 tonnes in 2027, and 80,000 and 90,000 tonnes in 2028. Our share of annual zinc
production is expected to be between 55,000 and 65,000 tonnes in 2026, 35,000 and 45,000 tonnes in 2027, and
45,000 and 55,000 tonnes in 2028. Our share of annual molybdenum production is expected to be between 700 and
1,000 tonnes in 2026, 900 and 1,200 tonnes in 2027, and 400 and 600 tonnes in 2028.
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 ENAMI, a state-owned Chilean mining company. Carmen de Andacollo’s gross profit
was $44 million in 2024 compared to a gross loss of $32 million in 2023 and gross profit of $2 million in 2022. The
increase in gross profit in 2024 was primarily due to higher copper prices, as well as lower operating costs compared
to 2023.
Carmen de Andacollo produced 39,700 tonnes of copper in 2024, similar to the 39,500 tonnes produced in 2023.
Gold production of 20,800 ounces in 2024 was lower than the 23,400 ounces produced in 2023, with 100% of 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 continues to operate in extreme drought conditions. In 2024, risk mitigation plans to increase
water availability through increased well field capacity were implemented, enabling mill throughput rates consistent
with our mine plan through the second half of 2024. However, ongoing drought conditions remain a risk to our annual
production guidance for 2025 to 2028. Copper production in 2025 is expected to be in the range of 45,000 to 55,000
tonnes. Annual copper production is expected to be between 45,000 and 55,000 tonnes in 2026 and 2027, and
between 35,000 and 45,000 tonnes in 2028.
Copper Unit Costs
The following table presents our copper unit costs for the past three years. Unit costs for 2024 include QB. Unit costs
in 2023 and 2022 exclude QB due to the construction and ramp-up phases of the operation during these years.
We remain focused on managing our controllable operating expenditures.
17
Management’s Discussion and Analysis
Total cash unit costs1 in 2024 were US$2.54 per pound compared with US$2.27 per pound in 2023. The increase is
due to continued ramp-up of QB production during 2024, which impacted both cost and production. This resulted in
elevated total cash unit costs1 in 2024 compared to the total cash unit costs1 in 2023. Total cash unit costs1 in 2023
of US$2.27 per pound were higher than 2022 total cash unit costs1 of US$1.97 per pound, due to higher smelter
processing charges year over year, as well as higher labour and maintenance costs at several of our sites and a high
inflationary period that impacted our key consumables costs.
Net cash unit costs1 in 2024 were US$2.20 per pound compared with US$1.87 per pound in 2023, primarily as a result
of the elevated operating costs at QB as described above, as well as reduced zinc by-product credits from Antamina
due to lower zinc mined, as expected in the mine plan. Net cash unit costs1 in 2022 were US$1.49 per pound, which
was lower than 2023 due to reasons explained above as well as lower zinc by-product credits from Antamina and
lower zinc prices.
Copper Growth Projects
We are focused on advancing our near-term copper growth projects, which are progressing as planned. In 2024, we
made significant progress in advancing our feasibility studies, detailed engineering, preparing for the execution of
advanced work programs, and moving forward with permitting — particularly at the HVC Mine Life Extension, Zafranal
and San Nicolás. At the same time, we continued refining the most capital-efficient and value-driven path for the
expansion of QB, guided by the performance of our existing assets and permitting requirements. Additionally, we
remain committed to advancing our medium- and long-term portfolio options with targeted investments.
These efforts will continue throughout 2025, with an expected investment of approximately US$430–$485 million
(Teck’s share) in copper growth capital expenditures, including approximately US$100–$110 million for HVC MLE and
US$220–$240 million for Zafranal. Both projects are currently focused on advancing detailed engineering, design and
project execution planning, which are critical steps in meeting our investment requirements for full project sanctioning.
For Zafranal, in addition to engineering and planning activities, we will proceed with advanced early works in 2025, to
enable construction to start following project sanction.
The remaining budgeted copper growth capital expenditure will continue to progress our industry-leading copper
growth pipeline of medium- to long-term projects including Galore Creek, Schaft Creek, NewRange and NuevaUnión.
These investments reflect our commitment to disciplined capital allocation, positioning us to advance these growth
initiatives efficiently and in alignment with our long-term copper strategy.
1 This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
(amounts reported in US$ per pound)
2024
20232
20222
Adjusted cash cost of sales1
$
2.34
$
2.04
$
1.78
Smelter processing charges
0.20
0.23
0.19
Total cash unit costs1
$
2.54
$
2.27
$
1.97
Cash margin for by-products1
(0.34)
(0.40)
(0.48)
Net cash unit costs1
$
2.20
$
1.87
$
1.49
Notes:
1.
This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
2. Excludes Quebrada Blanca.
18
Teck 2024 Annual Report
HVC Mine Life Extension
• Activities: Advances have been made in detailed engineering and design, vendor engineering and execution
planning for the HVC Mine Life Extension project. Additionally, we have continued to progress regulatory approvals
processes as well as negotiations with Indigenous government organizations (IGOs), receiving support for the
project from several IGOs. We will continue to negotiate agreements with remaining interested IGOs. One IGO has
initiated a dispute resolution process with the British Columbia Environmental Assessment Office, which has
delayed the Environmental Assessment (EA) approval process. A provincial environmental assessment decision
is currently anticipated in the first half of 2025.
• Targeted upcoming milestones: Engineering, design and project execution planning are expected to advance
towards substantial completion by the end of the second quarter of 2025, positioning the project for a potential
sanction decision following receipt of necessary permits.
Zafranal
• Activities: In the fourth quarter of 2024, we received the land easement agreement for the Zafranal main access
road. Throughout the year, we focused on advancing the engineering design for the construction permit and
completing engineering design for the advanced works scope, while the tendering process for camp construction
and earthworks has been initiated and is currently underway. Engineering design efforts remain focused on critical
facilities to mitigate execution risks and construction permitting and execution strategy development are
advancing to support the next stage of the project.
• Targeted upcoming milestones: The project aims to complete the tendering process for advanced works by the end
of the first quarter of 2025. In addition, the tendering process for the main transmission line design consultant will
commence in first quarter of 2025, with a delivery model recommendation scheduled for completion by the end of
February. Following receipt of construction permits and detailed engineering, the project could be ready for a
sanction decision in late 2025.
Minas de San Nicolás
• Activities: In November 2024, a supplementary information package was submitted in response to regulatory
inquiries regarding the ETJ (Land Use Change) permit application. Engagement with government authorities and
stakeholders is ongoing to support the review of both the MIA-R (Environmental Impact Assessment) and ETJ
permits. The archaeological release for the project footprint was granted by the Mexican National Institute of
Anthropology and History (INAH), allowing for the advancement of construction activities pending permit
approvals. Additionally, progress on the feasibility study and execution strategy was made through 2024 and
continues, with target completion in the second half of 2025.
• Targeted upcoming milestones: Completion of the feasibility study and receipt of necessary permits is expected
in the second half of 2025, positioning the project for a potential sanction decision.
Quebrada Blanca Debottlenecking
• Activities: Optimization of the existing Quebrada Blanca asset progressed through 2024, with a strong focus on
identifying near-term growth opportunities for the debottlenecking within the current asset base.
• Targeted upcoming milestones: Detailed planning for debottlenecking is currently underway to support the
planned Declaration of Environmental Impact (DIA) permit application in the second half of 2025.
19
Management’s Discussion and Analysis
2019
2020
2021
2022
2023
2024
2004
2008
2012
2016
2020
2024
2019
2020
2021
2022
2023
2024
Rest of the world (tonnes in millions)
China (tonnes in millions)
LME inventory (tonnes in thousands)
Copper price (US$ per pound)
Inventories (tonnes in thousands)
Days of global consumption
25-year average days inventory
Copper Price and LME Inventory
Source: LME
Global Demand for Copper
Source: Wood Mackenzie
Global Copper Inventories
Source: ICSG, LME, COMEX, SHFE
0
5
10
15
25
20
30
$0.00
$1.00
$2.00
$3.00
$5.00
$4.00
0
500
1,000
1,500
2,000
2,500
Tonnes
Days
Tonnes
Price
Tonnes
0
5
10
15
20
25
30
35
0
100
200
300
400
700
600
500
Markets
Copper prices on the London Metal Exchange (LME) averaged US$4.15 per pound in 2024, up 8% from an average of
US$3.85 per pound in 2023. Copper prices reached an all-time high in May 2024, trading at US$4.92 per pound. This is
the fourth year in a row that copper prices have averaged over US$3.85 per pound.
Global copper stocks on the LME, Comex and SHFE were up 91% or 193,600 tonnes during the year, ending 2024 at
405,800 tonnes, with bonded warehouses stocks in China rising by 170% to 21,900 tonnes. Exchange stocks ended the
year 50% below historical average levels and are down over 1.0 million tonnes from the peaks in both 2013 and 2017.
Total reported global stocks, including producer, consumer, merchant and terminal stocks, stood at an estimated 5.5
days of global consumption, versus the 25-year average of 28.7 days.
In 2024, global copper mine production increased 1.2%, according to Wood Mackenzie, with total production estimated
at 22.6 million tonnes. Wood Mackenzie is forecasting a 3.2% increase in global mine production in 2025 to 23.3 million
tonnes, which is 1.5 million tonnes lower than their previous 2025 forecast of 24.8 million tonnes. The lower estimate
for mine production is due primarily to guidance reductions in Chile, China and Panama. Global demand for copper
concentrates increased by 2.9% in 2024 to reach over 25.0 million tonnes of primary smelting capacity and is expected
to increase a further 7.6% in 2025.
Copper scrap availability increased 9.0% in 2024 due to stronger prices and lower treatment charges for concentrates.
Copper scrap imports into China increased 13.8% to 1.8 million tonnes in 2024. Unrefined copper metal imports into
China, including blister and anode, were down 10.6% over the same time last year, decreasing 106,000 tonnes in 2024,
following a 14.1% decrease in 2023 due to the tightness in the concentrate market. Refined cathode imports in 2024
were flat over 2023 levels at 3.0 million tonnes. Copper cathode imports into China have averaged 2.8 to 3.0 million
tonnes each year since 2013, while concentrate imports have increased 10.2% per year over the same period as China
increased copper processing capacity. Demand for copper imports into China was up 2.3% or 0.3 million tonnes from
2023 levels to 13.3 million tonnes, while reported cathode stocks in China rose by 60,000 tonnes. With the increase in
refined production in China, increased imports and the relatively small change in stocks, Wood Mackenzie estimates
that apparent refined copper consumption grew in China by 2.5% in 2024.
Wood Mackenzie estimates global refined copper production grew 3.6% in 2024, and will increase by only 2.8% in 2025,
reaching 27.5 million tonnes. Demand is forecast to increase 4.0% to 27.8 million tonnes, putting the metal market into
deficit and further reducing stockpiles. Demand forecasts for 2025 are currently above trend as decarbonization efforts
continue globally and urbanization growth continues. Geopolitical tensions could see increased regional demand from
onshoring of manufacturing and the potential for dislocation of trade patterns. Supply will continue to face challenges
going into 2025, and security of supply of raw materials will continue to keep those markets tight.
20
Teck 2024 Annual Report
Outlook
Our 2025 annual guidance for our copper segment is outlined in our guidance tables and is unchanged from our
previously disclosed guidance issued on January 20, 2025.
Total copper production in 2025 is expected to significantly increase to between 490,000 and 565,000 tonnes,
compared to the 446,000 tonnes produced in 2024. Copper production guidance is outlined for each operation above.
Our 2025 copper net cash unit costs1, including QB, are expected to be between US$1.65 and US$1.95 per pound in
2025, a significant reduction from our 2024 net cash unit costs1, reflecting strong cost discipline across our operations.
We expect a reduction in our operating expenses across our copper segment compared to 2024, as QB Operations
stabilize and as we embed our management operating system across our operations, with a focus on efficiency and
cost optimization. The improvement in our expected 2025 copper net cash unit costs1 compared to 2024 net cash unit
costs1 reflects reduced operating costs across our business, an increase in copper production, lower copper treatment
and refining charges, and higher by-product credits, which are largely driven by an increase in molybdenum
production at QB and Highland Valley Copper.
In 2025, QB’s net cash unit costs1 are expected to be between US$1.80 and $2.15 per pound, a significant reduction
from our 2024 QB net cash unit costs1. The improvement in QB’s net cash unit costs1 is primarily due to an increase in
copper production and higher molybdenum by-product credits, but also reflects completion of ramp-up and the
expected stabilization of QB operations through 2025.
Total copper production is expected to be between 550,000 and 620,000 tonnes in 2026, 530,000 and 600,000
tonnes in 2027, and 455,000 and 525,000 tonnes in 2028.
1 This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
21
Management’s Discussion and Analysis
We are one of the world’s largest producers of mined zinc, primarily from our Red Dog Operations in Alaska, and the
Antamina copper mine in northern Peru, which has significant zinc co-product production. Our metallurgical complex
in Trail, B.C. is one of the world’s largest integrated zinc and lead smelting and refining operations. In 2024, we produced
615,900 tonnes of zinc in concentrate, while our Trail Operations produced 256,000 tonnes of refined zinc.
In 2024, our zinc segment accounted for 39% of revenue and 35% of our gross profit.
ZINC
Gross Profit (Loss) Before
Revenue
Gross Profit (Loss)
Depreciation and Amortization1
($ in millions)
2024
2023
2022
2024
2023
2022
2024
2023
2022
Red Dog
$ 2,059 $ 1,596 $
2,111
$
620
$
408
$
862
$
851
$
611 $ 1,060
Trail Operations
2,003
1,992
2,059
(66)
(2)
(93)
12
103
(18)
Other
8
6
11
8
(6)
2
8
(6)
2
Intra-segment
(547)
(543)
(655)
–
–
–
–
–
–
Total
$ 3,523 $ 3,051 $ 3,526
$
562
$
400
$
771
$
871
$
708 $ 1,044
Note:
1.
This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
Production
Sales
(thousand tonnes)
2024
2023
2022
2024
2023
2022
Refined zinc
Trail Operations
256
267
249
260
258
257
Contained in concentrate
Red Dog
556
540
553
574
553
578
Antamina1
60
104
97
61
107
97
Total
616
644
650
635
660
675
Note:
1.
Co-product zinc production from our 22.5% interest in Antamina.
22
Teck 2024 Annual Report
Operations
Red Dog
Our Red Dog Operations, located in northwest Alaska, is one of the world’s largest zinc mines containing germanium,
among other by-products. Gross profit in 2024 was $620 million compared with $408 million in 2023 and $862 million in
2022. The increase in gross profit in 2024 compared with 2023 was primarily due to higher zinc prices, higher production
and lower treatment charges, partly offset by higher royalty costs, which are tied to the profitability of Red Dog.
In 2024, zinc production at Red Dog was 555,600 tonnes, compared with 539,800 tonnes produced in 2023.
Production in 2024 improved due to higher mill throughput, as extreme weather events impacted operations in 2023.
Lead production in 2024 increased to 109,100 tonnes, compared with 93,400 tonnes produced in 2023, as a result of
the higher throughput.
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 2024 Red Dog concentrate shipping season commenced on July 12, 2024, and was completed on October 26,
2024. A total of 1.4 million wet metric tonnes of zinc and lead concentrate 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 2024 was US$327 million compared with US$195
million in 2023. 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 is expected to produce between 430,000 and 470,000 tonnes of zinc, and 85,000 and 105,000 tonnes of
lead, which is lower than 2024 annual production due to a decline in grades. We are currently mining in two pits,
Aqqaluk and Qanaiyaq, with the latter to be depleted midway through 2025, per the mine plan. Annual zinc production
is expected to be in the range of 410,000 to 460,000 tonnes in 2026, 365,000 to 400,000 tonnes in 2027, and
290,000 to 320,000 tonnes in 2028. Annual production guidance in 2028 reflects declining zinc grades as the Aqqaluk
pit nears the end of mine life. Annual lead production is expected to be between 70,000 and 90,000 tonnes in 2026,
60,000 and 80,000 tonnes in 2027, and 50,000 and 65,000 tonnes in 2028.
We are focused on the Red Dog Anarraaq and Aktigiruq Extension Program (AAEP), which 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. The project is currently in the prefeasibility study stage; in the latter part of 2024, we
received the required permit from the U.S. Army Corps of Engineers and construction commenced of an all-season
road to access and drill the deposits, which are critical to the extension of the mine life of Red Dog.
Trail Operations
Our Trail Operations in southern B.C. produces refined zinc and lead, and critical minerals such as germanium, indium
and antimony as well as chemicals and fertilizer products.
Trail Operations incurred a gross loss of $66 million in 2024, compared to a gross loss of $2 million in 2023 and a gross
loss of $93 million in 2022. The higher gross loss in 2024 is primarily due to lower zinc premiums and treatment
charges, combined with reduced production levels for all primary products, as production in 2024 was impacted by a
rail labour dispute and a localized fire in the electrolytic plant.
In addition, as a result of the challenging environment for treatment charges due to a global shortage of zinc
concentrate, continued operating losses, combined with the fire in the electrolytic plant affecting expected operations
in the fourth quarter of 2024, we recorded a pre-tax impairment charge of $1.1 billion on our Trail Operations in the
third quarter of 2024, all as previously disclosed.
23
Management’s Discussion and Analysis
As a result of the production issues described above, refined zinc production in 2024 decreased to 256,000 tonnes
compared with 266,600 tonnes in 2023. Refined lead production in 2024 was 61,100 tonnes, compared with 65,900
tonnes in 2023. Silver production was 8.6 million ounces in 2024, compared to 10.6 million ounces in 2023. The decrease
in both lead and silver production between 2024 and 2023 is attributable to the production issues noted above.
Our recycling process treated 25,800 tonnes of material in 2024, and we plan to treat about 27,200 tonnes in 2025.
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.
Refined zinc production at our Trail Operations is expected to be between 190,000 and 230,000 tonnes in 2025,
compared to 256,000 tonnes in 2024. To maximize value from our Trail Operations, in light of the current tightness in
the zinc concentrate market and aligned with our focus on improving its profitability and cash generation, we expect
to reduce our zinc production at Trail in 2025, as reflected in our 2025 annual production guidance. We will operate
Trail, although at lower production rates, and remain focused on implementing a range of initiatives to further improve
cash generation. The repair of one of the four sections of the electrolytic plant impacted by a fire in the third quarter of
2024 continues to progress and is expected to be completed by the end of the first quarter of 2025. Our annual 2025
production guidance does not require usage of all sections of the electrolytic plant. Our annual production guidance
of 260,000 to 300,000 tonnes for 2026 to 2028 assumes a return to full production levels, consistent with the capacity
of our Trail Operations, subject to market conditions and optimizing for value and financial outcomes.
Zinc Unit Costs
The following table presents our zinc unit costs for the past three years for our Red Dog Operations only. We remain
focused on managing our controllable operating expenditures.
Total cash unit costs1 for Red Dog were US$0.61 per pound in 2024 compared with US$0.68 per pound in 2023 and
US$0.58 per pound in 2022. Total cash unit costs1 in 2024 decreased from 2023 levels primarily as a result of reduced
smelter processing charges, partly offset by higher key consumable costs that increased due to inflationary impacts
despite our very focused efforts on managing our controllable operating expenditures. The increase in total cash unit costs1
from 2023 to 2022 primarily related to a high inflationary period that impacted our key consumables costs including diesel.
Net cash unit costs1 for Red Dog were US$0.39 per pound in 2024 compared with US$0.55 per pound in 2023 and
US$0.44 per pound in 2022. Net cash unit costs1 in 2024 decreased from 2023 partly due to higher by-product
revenues from lead and silver, and lower smelter processing charges. Net cash unit costs1 were lower in 2022 primarily
due to lower total cash unit costs1, as described above.
Markets
Zinc prices on the London Metal Exchange (LME) averaged US$1.26 per pound during 2024, increasing 5% from
US$1.20 per pound in 2023 and ending the year above US$1.35 per pound.
Zinc stocks on the LME and SHFE rose by 7.8% or 19,000 tonnes from low levels at the beginning of 2024, finishing the
year at a combined 264,300 tonnes. Total reported global stocks, which include producer, consumer, merchant and
terminal stocks, rose by approximately 24,000 tonnes in 2024 to just under 775,000 tonnes at year-end, representing
an estimated 20.6 days of global demand, compared to the 25-year average of 31.9 days.
(amounts reported in US$ per pound)
2024
2023
2022
Adjusted cash cost of sales1
$
0.44
$
0.42
$
0.37
Smelter processing charges
0.17
0.26
0.21
Total cash unit costs1
$
0.61
$
0.68
$
0.58
Cash margin for by-products1
(0.22)
(0.13)
(0.14)
Net cash unit costs1
$
0.39
$
0.55
$
0.44
Note:
1.
This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
1 This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
24
Teck 2024 Annual Report
2019
2020
2021
2022
2023
2024
2004
2008
2012
2016
2020
2024
2019
2020
2021
2022
2023
2024
Rest of the world (tonnes in millions)
China (tonnes in millions)
LME inventory (tonnes in thousands)
Zinc price (US$ per pound)
Zinc Price and LME Inventory
Source: LME
Global Demand for Zinc
Source: Wood Mackenzie
Global Zinc Inventories
Source: ILZSG, LME, SHFE
Tonnes
Days
Tonnes
Tonnes
0
4
8
12
16
20
0
200
400
600
800
1,000
$0.00
$0.50
$1.00
$1.50
$2.00
0
200
400
600
800
1,000
1,200
1,400
1,600
Inventories (tonnes in thousands)
Days of global consumption
25-year average days inventory
0
10
20
30
40
Price
In 2024, global zinc mine production decreased 1.8% according to Wood Mackenzie, with total mine production falling
to 12.1 million tonnes, below their previous forecast a year ago of 12.8 million tonnes. Global zinc mine production
remained under the effects of the 2023 mine closures, despite higher prices in 2024. According to Wood Mackenzie,
global zinc mine production has not grown since 2011. Global mine production is expected to grow 5.8% in 2025 and
reach 12.8 million tonnes, which is still below 2019 production levels. Global zinc mine supply growth remains at risk,
as new mine production coming online in 2025 continues to be delayed.
Wood Mackenzie estimates the global zinc metal market moved into a deficit in 2024 of 0.4 million tonnes. Global
refined zinc demand rose 1.5% in 2024 to 13.6 million tonnes, with demand in China rising only 0.6%. Demand in Europe
fell 1.0% due to higher energy prices, a declining automotive sector and weak construction markets. In North America,
demand fell by 1.9% in 2024, according to Wood Mackenzie, based on a weak manufacturing sector and weak
commercial construction. In 2025, Wood Mackenzie expects demand for zinc to grow globally by 2.5% to 13.9 million
tonnes, with growth coming primarily from China, India and Europe.
Wood Mackenzie estimates that global refined zinc production fell 3.8% in 2024 to 13.2 million tonnes, as refined
production in China was constrained by a lack of raw material feed. Chinese refined production fell by 6.3% in 2024 as
Chinese zinc concentrate imports fell 15.0%. Chinese zinc metal imports were up 11.9% as imports of metals were
required to meet domestic demand. Wood Mackenzie estimates refined zinc production will grow 4.8% in 2025, in line
with a 5.8% increase in global mine production, and estimates the increase in global supply will be below total global
metal demand growth at 2.5%, keeping the zinc market in deficit for the second year in a row.
Outlook
Our 2025 annual guidance for our zinc segment is outlined in our guidance tables and is unchanged from our previously
disclosed guidance issued on January 20, 2025.
Total zinc in concentrate production in 2025 is expected to be between 525,000 and 575,000 tonnes, compared to
615,900 tonnes in 2024. Production in each of the next three years is expected to decrease primarily due to declining
grades at Red Dog. Annual zinc in concentrate production is expected to be 465,000 to 525,000 tonnes in 2026,
400,000 to 445,000 tonnes in 2027, and 335,000 to 375,000 tonnes in 2028.
Refined zinc production is expected to be between 190,000 and 230,000 tonnes in 2025, compared to 256,000
tonnes in 2024, as outlined above.
Our 2025 zinc net cash unit costs1 are expected to be US$0.45 to US$0.55 per pound, which is higher than our 2024
net cash unit costs1 of US$0.39 per pound primarily due to the effect of lower zinc production expected in 2025, and
partly due to higher labour and consumable costs. The effect of the decrease in zinc production is partly offset by
lower zinc treatment charges, higher by-product credits, and continued focus on efficiency and cost optimization.
1 This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
25
Management’s Discussion and Analysis
Exploration plays two critical roles at Teck: discovery of new orebodies through early-stage exploration and acquisition
and the pursuit, evaluation and acquisition of development opportunities. We conduct greenfield exploration on
Teck-owned properties and third-party properties via option and earn-in agreements, and brownfield exploration
around Teck mining operations.
Throughout 2024, we conducted exploration around our existing operations and globally in seven countries through
our six regional offices. Exploration expenditures in 2024 were $87 million ($91 million before tax rebates), which were
focused on copper, zinc and nickel, were similar to expenditures in 2023 of $86 million, and include the completion of
drilling programs in Argentina, Canada, Chile, Kazakhstan, Peru and Türkiye. In contrast to 2023, we experienced no
significant access issues in 2024 and were able to drill more projects than originally planned.
Work continued in 2024 on project de-risking activities (e.g., geotechnical and infill drilling) at Quebrada Blanca in
support of future expansions of Quebrada Blanca.
Early-stage copper exploration in 2024 focused primarily on advancing projects targeting porphyry-style
mineralization in Argentina, Chile, Kazakhstan and Peru, and on evaluating new opportunities in South America,
Europe, central Asia and southern Africa. In 2025, we plan to drill a number of early-stage copper projects in
Argentina, Chile, Kazakhstan and Peru.
In 2024, we continued to grow our portfolio of early-stage nickel exploration opportunities, with an initial focus on
Australia, Botswana, Canada and the United States. In 2025, work will focus on advancing projects in Australia and
Canada to drilling.
Zinc exploration in 2024 was concentrated on an advanced-stage project in the Red Dog district in Alaska. All early-
stage zinc exploration in Australia was stopped, and we continued to advance a zinc-copper-silver project in eastern
Türkiye. In 2025, we plan to continue evaluating the polymetallic project in eastern Türkiye, and to continue drilling
advanced-stage projects in the Red Dog mine district in Alaska.
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 2024,
investments were made in exploration companies with copper portfolios in Armenia, the U.S. and Peru, and nickel
portfolios in Canada. Additionally, exploration agreements were signed with exploration companies with projects in
Australia, Canada and the U.S.
EXPLORATION
26
Teck 2024 Annual Report
FINANCIAL OVERVIEW
Financial Summary
($ in millions, except per share data)
20242
20232
20222
Revenue and profit
Revenue
$
9,065
$
6,476
$
17,316
Gross profit
$
1,607
$
1,112
$
8,571
Gross profit before depreciation and amortization1
$
3,272
$
1,973
$
10,245
Profit (loss) from continuing operations before taxes
$
(718)
$
(75)
$
6,565
Adjusted EBITDA1
$
2,933
$
1,436
$
9,568
Profit (loss) from continuing operations attributable to shareholders
$
(467)
$
(118)
$
4,089
Profit attributable to shareholders
$
406
$
2,409
$
3,317
Cash flow
Cash flow from operations
$
2,790
$
4,084
$
7,983
Expenditures on property, plant and equipment
$
2,262
$
3,885
$
4,423
Capitalized production stripping costs
$
373
$
455
$
1,042
Balance sheet
Cash and cash equivalents
$
7,587
$
744
$
1,883
Total assets
$ 47,037
$
56,193
$ 52,359
Debt and lease liabilities, including current portion
$
5,482
$
7,595
$
7,738
Per share amounts
Basic earnings (loss) per share from continuing operations
$
(0.90)
$
(0.23)
$
7.77
Diluted earnings (loss) per share from continuing operations
$
(0.90)
$
(0.23)
$
7.63
Basic earnings per share
$
0.79
$
4.65
$
6.30
Diluted earnings per share
$
0.78
$
4.59
$
6.19
Dividends declared per share
$
1.00
$
1.00
$
1.00
Notes:
1.
This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
2. 2024 figures are for continuing operations only. Comparative figures for 2023 for the steelmaking coal segment have been re-presented for the
classification of steelmaking coal as a discontinued operation. 2022 figures have not been re-presented.
27
Management’s Discussion and Analysis
In 2024, we completed the sale of 23% of the steelmaking coal business, Elk Valley Resources (EVR) to Nippon Steel
Corporation (NSC) and POSCO for upfront proceeds of US$1.3 billion in January, and the remaining 77% of EVR to
Glencore plc (Glencore) for proceeds of US$7.3 billion on July 11, 2024. As a result of the completion of the sale of our
steelmaking coal business, results from that business have been presented as discontinued operations for 2024 and
2023 in this 2024 Management’s Discussion and Analysis and in our 2024 annual audited consolidated financial
statements. Comparative figures for 2022 have not been restated. Further detail is provided in the Discontinued
Operations section below.
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. 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 the Chilean peso, 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 2024, our loss from continuing operations attributable to shareholders was $467 million, or $0.90 per share
compared with a loss from continuing operations attributable to shareholders of $118 million, or $0.23 per share in
2023. Our loss increased in 2024 due to an $828 million non-cash, after-tax impairment charge on our Trail Operations,
and higher depreciation and amortization and finance expenses due to depreciation of QB assets and no longer
capitalizing interest on the QB2 project, starting in 2024, as anticipated. These decreases in profit were partially offset
by an increase in copper sales volumes of 49% in 2024, reflecting the ramp-up of QB, and higher prices for copper and
zinc compared to 2023. In 2023, we commenced commissioning and ramp-up of QB, which contributed additional
copper revenues in 2023. However, operating costs were at elevated levels during the production ramp-up, reducing
our profit in 2023.
Our profit and loss over the past three years includes items that we segregate for additional disclosure to investors
so that the underlying profit of the company may be more clearly understood. Our adjusted profit from continuing
operations attributable to shareholders1 presented in the table below excludes results from EVR for 2024 and 2023,
as results from EVR have been classified and presented as discounted operations in these periods. Results from EVR
for 2022 have not been restated and are included in our adjusted profit from continuing operations attributable to
shareholders for 2022.
Our adjusted EBITDA1, taking into account the items identified in the table below, was $2.9 billion in 2024 compared
with $1.4 billion in 2023. Our adjusted profit from continuing operations attributable to shareholders1, which takes
these items into account, was $605 million in 2024 compared with $289 million in 2023, or $1.17 and $0.56 per share,
respectively. These items adjusted are described below and summarized in the table that follows.
The most significant after-tax adjustments to profit in 2024 were an after-tax impairment charge of $828 million on
our Trail Operations, as outlined below, foreign exchange gains of $137 million, and $178 million of tax charges, primarily
related to the derecognition of deferred tax assets. In 2023, the most significant after-tax adjustments to profit were
$95 million of expenses associated with QB2 variable consideration to Inversiones Mineras S.A. (IMSA) and Codelco,
and $88 million for environmental costs primarily relating to a decrease in the rate used to discount our
decommissioning and restoration provisions for closed operations and increased expected future remediation costs.
In 2022, the most significant after-tax adjustment to profit was the non-cash after-tax impairment of our interest in
Fort Hills.
1 This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
28
Teck 2024 Annual Report
The following table shows the effect of these items on our profit and loss.
Cash flow from operations in 2024 was $2.8 billion compared with $4.1 billion in 2023 and $8.0 billion in 2022. Cash
flow from operations was lower in 2024 compared with 2023, as the cash flows from the steelmaking coal business
were included up to July 11, 2024, compared with a full year of cash flows included in 2023. In 2024, cash flow from
operations for discontinued operations was $2.4 billion, compared to $4.6 billion in 2023. In addition, cash flow from
operations in 2024 included income tax payments totalling $1.8 billion, of which $1.1 billion related to previously
deferred Canadian income taxes associated with our Canadian steelmaking coal and copper operations in 2022,
and final taxes associated with our 2023 earnings. This compares with income tax payments of $990 million in 2023.
Changes in cash flow from operations are also impacted by varying commodity prices, changes in sales volumes of
our principal products and, to some extent, changes in foreign exchange rates and changes in working capital items.
Our cash balance increased significantly in 2024 with receipt of proceeds on closing of the sale of the steelmaking
coal business. We completed the sale of our remaining 77% interest in our steelmaking coal business, EVR, to Glencore
and received transaction proceeds of US$7.3 billion on July 11, 2024. On closing of the transaction, we announced our
intention to allocate the transaction proceeds consistent with Teck’s Capital Allocation Framework. This included the
repurchase of up to $2.75 billion of Class B subordinate voting shares, a one-time supplemental dividend of $0.50 per
share, a debt reduction program of up to $2.75 billion, funding retained for our value-accretive copper growth projects,
and approximately $1.0 billion for final taxes and transaction costs. Combined with the $500 million share buyback
announced in February 2024, total cash returns to shareholders of $3.5 billion from the sale of the steelmaking coal
business were authorized.
Through December 31, 2024, we deployed the proceeds from the sale of the steelmaking coal business to US$1.6 billion
of debt reductions, the supplemental dividend of $0.50 per share or $257 million, and share buybacks of $1.25 billion. At
December 31, 2024, our cash balance was $7.6 billion. Total debt was $5.5 billion and our net debt to net debt-plus-equity
ratio1 was negative 8% at December 31, 2024, compared with 19% at December 31, 2023 and 18% at the end of 2022.
1 This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
($ in millions, except per share data)
20242
20232
20222
Profit (loss) from continuing operations attributable
to shareholders
$
(467)
$
(118)
$
4,089
Add (deduct) on an after-tax basis:
Asset impairment
828
–
952
Loss on debt purchase
–
–
42
QB2 variable consideration to IMSA and Codelco
32
95
115
Environmental costs
3
88
99
Share-based compensation
72
63
181
Labour settlement
19
7
36
Commodity derivatives
(65)
9
(25)
Foreign exchange (gains) losses
(137)
(8)
15
Tax items
178
69
–
Loss from discontinued operations
–
–
(791)
Other
142
84
160
Adjusted profit from continuing operations attributable
to shareholders1
$
605
$
289
$
4,873
Basic earnings (loss) per share from continuing operations
$
(0.90)
$
(0.23)
$
7.77
Diluted earnings (loss) per share from continuing operations
$
(0.90)
$
(0.23)
$
7.63
Adjusted basic earnings per share from continuing operations1
$
1.17
$
0.56
$
9.25
Adjusted diluted earnings per share from continuing operations1
$
1.16
$
0.55
$
9.09
Notes:
1.
This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
2. 2024 figures are for continuing operations only. Comparative figures for 2023 for the steelmaking coal segment have been re-presented for the
classification of steelmaking coal as a discontinued operation. 2022 figures have not been re-presented.
29
Management’s Discussion and Analysis
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 and zinc, which accounted for 56% and 26% of revenue, respectively, in 2024.
Silver and lead are significant by-products of our zinc operations, accounting for 11% of our 2024 revenue. We also
produce a number of other by-products, including molybdenum, various specialty metals, chemicals and fertilizers,
which in total accounted for 7% of our revenue in 2024.
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 $9.1 billion in 2024 compared with $6.5 billion in 2023 and $17.3 billion in 2022. The increase in 2024
compared to 2023 was primarily due to substantially higher copper sales volumes, which increased 49% from 2023 levels as
a result of the ramp-up of QB. In addition, average prices for copper (LME) increased by 8% in 2024 as compared with 2023,
while average zinc (LME) prices increased by 5%. The decrease in revenue in 2023, compared to 2022, relates to the
presentation of the steelmaking coal business as discontinued operations in our 2023 and 2024 comparative figures. 2022
comparative figures have not been restated, as outlined above; hence, revenue in 2022 includes steelmaking coal sales.
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.
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 $7.5 billion in 2024, compared with $5.4 billion in 2023 and $8.7 billion in 2022. The increase in
cost of sales in 2024 compared to 2023 was primarily the result of the production ramp-up of QB, which accounted for
approximately $1.6 billion of the increase, including an increase in depreciation and amortization of QB assets, which
commenced in 2024, as expected. In addition, royalty costs at Red Dog increased by $186 million in 2024 as a result of
the increase in profitability of the mine in 2024. Cost of sales in 2022 include cost of sales of the steelmaking coal
business, as 2022 comparative figures have not been restated to reclassify steelmaking coal as discontinued operations.
Other Expenses
($ in millions)
20241
20231
20221
General and administration
$
275
$
296
$
236
Exploration
87
86
90
Research and innovation
50
117
157
Asset impairment
1,053
–
–
Other operating (income) expense
151
391
1,102
Finance income
(234)
(110)
(53)
Finance expense
953
160
203
Non-operating (income) expense
(7)
249
275
Share of profit of joint venture
(3)
(2)
(4)
$
2,325
$
1,187
$
2,006
Note:
1.
2024 figures are for continuing operations only. Comparative figures for 2023 for the steelmaking coal segment have been re-presented for the
classification of steelmaking coal as a discontinued operation. 2022 figures have not been re-presented.
30
Teck 2024 Annual Report
In 2024, general and administration expenses decreased to $275 million compared with $296 million in 2023. Research
and innovation expenses decreased to $50 million compared with $117 million in 2023. The reduction in these corporate
costs is the result of actions taken across our business to reduce costs.
Our exploration expenses in 2024 of $87 million, which were focused on copper, zinc and nickel, were similar to
expenditures in 2023 of $86 million.
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 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.
Other operating income and expense includes items we consider to be related to the operation of our business, such
as settlement 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 2024 included $65 million of positive pricing adjustments, $91 million of
share-based compensation expense relating to an increase in our share price, and $90 million of gains on commodity
derivative. Significant items in 2023 included $183 million on gain on disposal or contribution of assets that included a
$191 million gain on the Mesaba transaction, $81 million of share-based compensation relating to an increase in our
share price, and $119 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.
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.
For copper, zinc and lead concentrate sales, control of the product generally transfers to the customer when an individual
shipment parcel is loaded onto a carrier accepted by the customer. Additionally, for a minority of copper concentrate sales,
control of the product transfers to the customer when an individual shipment parcel is delivered to a specific location.
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.
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;
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).
The following table outlines our outstanding receivable positions, which were subject to provisional pricing terms at
December 31, 2024 and 2023, respectively.
Outstanding at
Outstanding at
December 31, 2024
December 31, 2023
(payable pounds in millions)
Volume
Price
Volume
Price
Copper
178
US$3.97/lb.
127
US$3.87/lb.
Zinc
141
US$1.34/lb.
167
US$1.20/lb.
31
Management’s Discussion and Analysis
Our finance income increased to $234 million in 2024 compared with $110 million in 2023 and $53 million in 2022.
The increase in finance income in 2024 is a result of higher investment income on our elevated cash balance as a
result of the receipt of proceeds from the sale of the steelmaking coal business in 2024.
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, the interest components of our pension obligations, and accretion on
our decommissioning and restoration provisions, less any interest that we capitalize against our development projects.
During 2024, we significantly reduced our debt and the related interest expense; however, our finance expense of
$953 million in 2024 increased by $787 million, compared to 2023, due to substantially lower interest capitalized to
the QB2 project, as most of the assets were considered available for use as at December 31, 2023.
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, and changes in the carrying value of the financial liability
relating to QB variable consideration to Inversiones Mineras S.A. (IMSA) and Codelco, as outlined below.
In 2024, non-operating expenses included $146 million of foreign exchange gains and $51 million of expenses
associated with QB variable consideration to IMSA and Codelco, which purchased ENAMI’s interest in QBSA during
2024. Of the $51 million, $44 million was due to the revaluation of the financial liability for the preferential dividend
stream related to Codelco’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 $7 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 occurred prior to January 21, 2024, or up to a lesser
maximum in certain circumstances thereafter. Commencement of commercial production occurred in March of 2024,
which reduced our cumulative maximum payment to US$97 million.
In 2023, non-operating expenses included $156 million of expenses associated with QB 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, as outlined above.
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 QB variable consideration
to IMSA and ENAMI. Of the $188 million, $183 million was due to the revaluation of the financial liability for the
preferential dividend stream related to ENAMI’s interest in QBSA, as outlined above.
Income Taxes
Provision for income and resource taxes from continuing operations for the year was $205 million, or negative 29%
of pre-tax loss. Our effective tax rate was significantly impacted by the impairment charge on our Trail Operations,
the derecognition of deferred tax assets related to decommissioning and restoration provisions, and the accrual of
additional deferred Chilean resource tax liabilities associated with future taxable temporary differences. Excluding
these items, our effective tax rate would have been approximately 58%, which is higher than the Canadian statutory
income tax rate of 27%, primarily due to the amount of current year resource taxes relative to lower than normal
earnings from continuing operations following the reclassification of our earnings from the steelmaking coal business
to discontinued operations.
Our effective tax rate is sensitive to a variety of factors, including the relative amount of operating margins, certain
corporate and finance expenses that are not deductible for resource tax purposes, the statutory tax rates in the various
jurisdictions in which we operate, and various other factors. Going forward, we expect our average long-term effective
tax rate to range from 39% to 41%, but quarterly and annual results may vary due to the relative amount of operating
margins, the scope and timing of other copper growth projects, certain corporate and finance expenses that are not
deductible for resource tax purposes, statutory tax rates in the jurisdictions in which we operate, and other factors.
32
Teck 2024 Annual Report
Profit from discontinued operations includes tax expense of $1.4 billion, which is comprised of income and resource
taxes on earnings from the steelmaking coal business and capital gains tax triggered on the sale.
We are subject to and pay income and resource taxes in all jurisdictions that we operate in. A final Canadian income
tax instalment of $624 million, primarily related to earnings and proceeds from the sale of the steelmaking coal
business, is payable in February 2025.
Discontinued Operations
On July 11, 2024, we completed the sale of our remaining 77% interest in our steelmaking coal business, EVR, to
Glencore and received transaction proceeds of US$7.3 billion, excluding customary closing adjustments. As a result
of the sale of EVR in July, results from EVR have been classified and presented as discontinued operations for 2024
and 2023. Results for EVR for 2022 have not been classified and presented as discontinued operations in the 2024
Management’s Discussion and Analysis. Settlement of customary closing adjustments was recorded as part of
discontinued operations in 2024.
For the year ended December 31, 2024, profit from discontinued operations was $1.2 billion, compared with $2.6 billion
in 2023. Our profit from discontinued operations in 2024 included operating results for the period up to the sale date
of July 11, 2024 and an after-tax gain of $81 million on the sale of EVR, which is net of taxes of $897 million. Profit from
discontinued operations was higher in 2023, as it included a full 12 months of EVR results as compared to 2024, which
includes EVR results up to the July 11, 2024 sale.
We announced our agreement to sell our interest in Fort Hills on October 26, 2022, and classified it as a discontinued
operation. On February 2, 2023, we sold our 21.3% interest in the Fort Hills and associated downstream assets to Suncor
and TotalEnergies for 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. We incurred a loss of $772 million from our interest in Fort Hills, which was classified as a
discontinued operation in 2022.
Transactions
Sale of Steelmaking Coal Business
On January 3, 2024, we completed the sale of a minority stake of our interest in our steelmaking coal business, EVR,
to NSC and POSCO. NSC acquired a 20% interest in EVR in exchange for its 2.5% interest in Elkview Operations plus
$1.7 billion (US$1.3 billion) in cash. POSCO exchanged its 2.5% interest in Elkview Operations and its 20% interest in
Greenhills Operations for a 3% interest in EVR. These transactions were accounted for as equity transactions with
non-controlling interests, reducing retained earnings by $1.5 billion and increasing non-controlling interest balances.
In determining the net assets of EVR to calculate the non-controlling interests and the related adjustment to retained
earnings, we included the steelmaking coal business’ goodwill balance and excluded deferred income tax liabilities
not attributable to the non-controlling interests.
On July 11, 2024, we completed the sale of our remaining 77% interest in our steelmaking coal business to Glencore.
We received cash proceeds of $9.9 billion (US$7.3 billion) and correspondingly derecognized $20 billion of assets
(including $17 billion of property, plant and equipment and $256 million of cash), $8 billion of liabilities (including
$2 billion of decommissioning and restoration provisions) and $3 billion of non-controlling interests related to the
steelmaking coal business. This resulted in a gain (net of taxes of $897 million) of approximately $81 million, which is
presented in profit from discontinued operations upon closing of this transaction. Settlement of customary closing
adjustments was recorded as part of discontinued operations in 2024.
33
Management’s Discussion and Analysis
San Nicolás Arrangement
On April 6, 2023, we closed the transaction with Agnico Eagle, forming a 50:50 joint arrangement to advance the
San Nicolás copper-zinc development project located in Zacatecas, Mexico. Agnico Eagle 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, 2024, we had 87% of share ownership and Agnico Eagle had 13%.
In 2024, we recognized a gain of $31 million in other operating income (expense) attributable to Agnico Eagle’s
incremental contribution. In 2023, 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 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 that 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), which was included in discontinued
operations upon closing of this transaction.
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.
34
Teck 2024 Annual Report
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 and TEPCA. TEPCA had exercised its right of first refusal to purchase its proportionate share of our Fort Hills
interest.
We 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 $11.9 billion as at December 31, 2024, including $7.6 billion of cash. At December 31,
2024, total debt was $5.5 billion and our net debt to net debt-plus-equity ratio1 was negative 8% compared with
19% at December 31, 2023.
We maintain various committed and uncommitted credit facilities for liquidity and for the issuance of letters of credit,
including a US$3.0 billion sustainability-linked facility, which was undrawn as at December 31, 2024.
At December 31, 2024, the principal balance of our term notes was approximately US$1.0 billion and we maintained a
US$3.0 billion undrawn revolving credit facility. As at December 31, 2024, US$1.9 billion was outstanding under the
US$2.5 billion QB project financing facility held by QBSA and Antamina’s US$1.0 billion loan facility agreement, of
which our 22.5% share is US$225 million, was fully drawn. The Antamina facilities are non-recourse to us and the other
Antamina project sponsors.
On October 18, 2024, we reduced the US$4.0 billion sustainability-linked revolving credit facility maturing October
2026 by US$1.0 billion to US$3.0 billion and we extended this facility for a five-year term to October 2029. The facility
continues to have pricing adjustments that are aligned with our sustainability performance and strategy. The reduction
in the size of the facility was driven by the quality of our balance sheet, confidence in our business outlook and a focus
on reducing our financing costs. Our sustainability performance over the term of the facility is measured by
greenhouse gas (GHG) intensity, percentage of women in our workforce and safety.
Our outstanding debt and lease liabilities were $5.5 billion at December 31, 2024, compared with $7.6 billion at the end
of 2023 and $7.7 billion at the end of 2022. The decrease in 2024 is due to the purchase of US$1.4 billion of our term
notes, two semi-annual repayments of US$147 million on the QB project financing, repayment of the loan at Carmen
de Andacollo and the derecognition of leases associated with EVR on sale of the steelmaking coal business.
We maintain investment grade ratings of Baa3 and BBB- with stable outlooks from Moody’s and S&P, respectively.
1 This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
35
Management’s Discussion and Analysis
At December 31, 2024, the weighted average maturity of our term notes is approximately 14.1 years and the weighted
average coupon rate is approximately 5.6%.
Our cash balance increased significantly in 2024 with receipt of proceeds on closing of the sale of the steelmaking
coal business. Our cash position increased from $744 million at the end of 2023 to $7.6 billion at December 31, 2024.
Cash flow from operations was $2.8 billion in 2024. Significant cash outflows in 2024 included $2.3 billion of capital
expenditures, of which $970 million related to the QB2 project, $373 million of capitalized production stripping costs,
$514 million of dividends, $1.2 billion of share buybacks and $863 million of interest and finance charges, primarily on
our outstanding debt. Significant inflows during 2024 included $652 million of QB advances from SMM/SC, $1.7 billion
from the sale of a minority stake of our interest in our steelmaking coal business to NSC and POSCO, and cash proceeds
of approximately $9.9 billion from the sale of our remaining 77% interest in our steelmaking coal business to Glencore.
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$3.0 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%. Following the sale of the
steelmaking coal business in July 2024, cash and cash equivalents have increased significantly and have resulted
in us being in a net cash1 position. Therefore, we do not exceed the required net debt to capitalization ratio at
December 31, 2024.
In addition to our US$3.0 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, 2024, we
had $1.5 billion of letters of credit outstanding. We also had $441 million in surety bonds outstanding at December 31,
2024, mostly to support current and future reclamation obligations. At December 31 2023, $1.5 billion of outstanding
letters of credit and $758 million of outstanding surety bonds related to EVR. These were cancelled in conjunction with
the closing of the sale of our steelmaking coal business on July 11, 2024.
Our debt balances and credit ratios are summarized in the following table:
1 This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
December 31, December 31,
December 31,
2024
2023
2022
Term notes
$
1,044
$
2,470
$
2,585
QB2 US$2.5 billion limited recourse project finance facility
1,912
2,206
2,500
Lease liabilities
661
802
422
Carmen de Andacollo short-term loans
–
95
52
Antamina credit facilities
225
225
225
Less unamortized fees and discounts
(32)
(56)
(71)
Debt and lease liabilities (US$ in millions)
$
3,810
$
5,742
$
5,713
Debt and lease liabilities (Canadian $ equivalent)1
5,482
7,595
7,738
Less cash and cash equivalents
(7,587)
(744)
(1,883)
Net debt (cash)2 (A)
$
(2,105)
$
6,851
$
5,855
Equity (B)
$
27,096
$
28,292
$
26,511
Net debt to net debt-plus-equity ratio2 (A/(A+B))
(8)%
19%
18%
Net debt to adjusted EBITDA ratio2
(0.7)x
1.1x
0.6x
Weighted average coupon rate on the term notes
5.6%
5.4%
5.3%
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.
36
Teck 2024 Annual Report
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$3.0 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 production 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.
On closing of the sale of the steelmaking coal business, we announced our intention to allocate the transaction
proceeds consistent with Teck’s Capital Allocation Framework. This included the repurchase of up to $2.75 billion of
Class B subordinate voting shares, a one-time supplemental dividend of $0.50 per share, a debt reduction program of
up to $2.75 billion, funding retained for our value-accretive copper growth projects, and approximately $1.0 billion for
final taxes and transaction costs. Combined with the $500 million share buyback announced in February 2024, total
cash returns to shareholders of $3.5 billion from the sale of the steelmaking coal business were authorized.
In 2024, we returned cash to shareholders through dividends and share buybacks. We paid dividends of $514 million in
2024, comprised of a $257 million supplemental dividend and $257 million of base dividends. During 2024 we also
purchased $1.25 billion of our Class B subordinate voting shares. Since 2020, we have returned $4.9 billion to
shareholders, including $3.1 billion of Class B subordinate voting share buybacks.
On February 19, 2025, the Board approved the payment of our quarterly base dividend of $0.125 per share payable on
March 31, 2025 to shareholders of record on March 14, 2025.
Operating Cash Flow
Cash flow from operations in 2024 was $2.8 billion compared with $4.1 billion in 2023 and $8.0 billion in 2022. Cash
flow from operations was lower in 2024 compared with 2023, as the cash flows from the steelmaking coal business
were included up to July 11, 2024, compared with a full year of cash flows included in 2023. In 2024, cash flow from
operations for discontinued operations was $2.4 billion, compared to $4.6 billion in 2023. In addition, cash flow from
operations in 2024 included income tax payments totalling $1.8 billion, of which $1.1 billion related to previously
deferred Canadian income taxes associated with our Canadian steelmaking coal and copper operations in 2022 and
final taxes associated with our 2023 earnings. This compares with income tax payments of $990 million in 2023.
Changes in non-cash working capital items resulted in a use of cash of $276 million in 2024 compared with $543 million
in 2023. The use of cash in 2024 primarily related to the reduction of accounts payable, partly offset by lower trade
receivables and inventory levels. This compares to 2023 when there was an increase in supplies inventories at QB as
a result of the ramp-up of operations.
37
Management’s Discussion and Analysis
Investing Activities
Expenditures on property, plant and equipment were $2.3 billion in 2024, including $1.4 billion on growth projects,
of which $970 million related to the QB2 project, and $836 million on sustaining capital. The largest component of
sustaining capital expenditures was $350 million at our QB Operations, $144 million at Antamina and $106 million at
our Trail Operations.
Demobilization of the QB2 project was completed and substantially all capital contracts were closed out and accrued
for at the end of the third quarter of 2024 within our previously disclosed guidance range of US$8.6 to US$8.8 billion
for the project. Our 2024 development capital expenditures for QB2 of CAD$970 million were impacted by a weaker
Canadian dollar, but were within our previously disclosed guidance range for 2024 of US$500 to US$700 million.
Capitalized production stripping costs were $373 million in 2024 compared with $455 million in 2023. The majority
of these costs are associated with the advancement of pits for future production at our operations. The reduction in
capitalized production stripping costs in 2024 reflected the near completion of the current phase of waste stripping
in the Lornex pit at Highland Valley Copper.
Capital expenditures for 2024 are summarized in the table on page 43.
Expenditures on investments and other assets in 2024 were $68 million and included $23 million for intangible and
other assets, and $39 million for marketable securities.
In 2024, we received total cash proceeds of $11.6 billion from the sale of our steelmaking coal business to Glencore
and NSC/POSCO. In 2023, we received cash proceeds of approximately $1.0 billion from the sale of our 21.3% interest
in Fort Hills.
Proceeds from interest and dividend income were $194 million in 2024, $97 million in 2023 and $49 million in 2022.
Financing Activities
In 2024, debt proceeds totalled $77 million, while debt repayments totalled $2.5 billion (US$1.8 billion). Debt
repayments included the purchase of US$1.4 billion of our public notes through a bond tender offer and open market
repurchases, the repayment of US$120 million of short-term loans at Carmen de Andacollo, and scheduled semi-
annual repayments totalling US$294 million on the QB project financing facility.
In 2024, we purchased US$1.4 billion aggregate principal amount of our outstanding term notes pursuant to the cash
tender offers made on July 4, 2024, and through open market purchases in the third and fourth quarters of 2024. The
total principal amount of the notes purchased comprised US$360 million of the 3.9% notes due 2030, US$149 million
of the 6.125% notes due 2035, US$279 million of the 6.0% notes due 2040, US$151 million of the 6.25% notes due
2041, US$228 million of the 5.2% notes due 2042 and US$259 million of the 5.4% notes due 2043. The total cash cost
of the purchases was $2.0 billion (US$1.4 billion), which was funded from cash on hand.
In 2023, debt proceeds totalled $230 million, while debt repayments totalled $710 million. Debt proceeds primarily
related to short-term loans at Carmen de Andacollo. 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 Carmen de Andacollo.
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.
During 2024, we paid $514 million in respect of our regular annual base dividend of $0.50 per share or $257 million
and an additional one-time supplemental dividend of $0.50 per share or $257 million.
In 2024, we purchased approximately 19.3 million Class B shares for cancellation at a cost of $1.25 billion under our
normal course issuer bid.
38
Teck 2024 Annual Report
Gross profit from our copper segment increased to $299 million in the fourth quarter, compared with $81 million a year
ago. The increase in gross profit was due to higher copper prices and substantially higher sales volumes, partly offset
by the depreciation of QB assets, which commenced at the start of 2024. In addition, in the same period last year,
gross profit was impacted by elevated operating costs at QB during the early stages of production ramp-up in fourth
quarter of 2023.
Record quarterly copper production of 122,100 tonnes was achieved in the fourth quarter, an increase of 18% from the
same period last year, with the increase driven by the continued quarter-over-quarter increase in QB’s production. QB
produced 60,700 tonnes of copper production in the fourth quarter compared with 52,500 tonnes in the third quarter
of 2024, and 34,300 tonnes in the fourth quarter last year. The increase in QB production was partially offset by lower
production from Antamina as a result of lower grades, as anticipated, as well as reduced mill throughput, as expected,
and unplanned maintenance.
Gross profit from our zinc segment increased to $243 million in the fourth quarter compared with $71 million a year
ago, due to higher zinc prices, increased sales volumes of zinc in concentrate due to timing of shipments, lower zinc
treatment charges and higher by-product revenues.
Zinc production at Red Dog in the fourth quarter decreased by 17% from a year ago to 128,400 tonnes, while lead
production remained consistent at 25,300 tonnes. Zinc production decreased as a result of lower grades, as expected
in the mine plan, and lower mill throughput resulting from a planned maintenance shutdown. Trail Operations’ refined
zinc production in the fourth quarter was 62,100 tonnes, 7,800 tonnes lower than a year ago, following the fire at the
zinc electrolytic plant in late September. Full repairs to the electrolytic plant are expected to be completed by the end
of first quarter of 2025.
Our profitability improved significantly in the fourth quarter compared to the same period a year ago primarily as a
result of higher base metal prices and increased copper and zinc in concentrate sales volumes. These items were
partly offset by higher finance expense and depreciation and amortization expense due to the depreciation of the QB
assets and no longer capitalizing interest on the QB2 project, starting in 2024, as anticipated. In the fourth quarter, our
profit from continuing operations attributable to shareholders was $385 million compared with a $167 million loss from
continuing operations attributable to shareholders in the fourth quarter of 2023, as profitability last year was impacted
by elevated operating costs at QB during the initial ramp-up phase.
Operating cash flows from continuing operations in the fourth quarter were $1.3 billion compared with an outflow of
$15 million a year ago. Our improved cash flow from operations compared with a year ago reflects higher copper and
zinc prices, increased sales volumes and contributions from QB, and a significant reduction in working capital.
During the fourth quarter, changes in working capital items resulted in a source of cash of $757 million. The change
was mainly due to a decrease in our trade receivables balances, particularly at Red Dog, relating to the timing of sales.
This compares with a $45 million source of cash in the fourth quarter of 2023.
Quarterly Profit and Cash Flow
($ in millions except per share data)
2024
2023
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Revenue
$ 2,786
$ 2,858
$ 1,802
$ 1,619
$ 1,843
$ 1,989
$ 1,265
$ 1,379
Gross profit
$
542
$
478
$
418
$
169
$
152
$
261
$
310
$
389
Profit (loss) attributable
to shareholders
$
399
$ (699)
$
363
$
343
$
483
$
276
$
510
$ 1,140
Basic earnings (loss)
per share
$ 0.78
$ (1.35)
$ 0.70
$ 0.66
$ 0.93
$ 0.53
$ 0.98
$
2.22
Diluted earnings (loss)
per share
$ 0.78
$ (1.35)
$ 0.69
$ 0.65
$ 0.92
$
0.52
$
0.97
$
2.18
Cash flow from operations
$ 1,288
$
134
$ 1,326
$
42
$ 1,126
$
736
$ 1,130
$ 1,092
39
Management’s Discussion and Analysis
Outlook
The sales of our products are denominated in U.S. dollars, while a large 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, 2024, we did not have any of our U.S. dollar denominated debt designated as a hedge against
our foreign operations that have a U.S. dollar functional currency. As a result of our substantial cash balance, which is
largely held in U.S. dollars, following the receipt of proceeds from the sale of EVR and the reduction in our U.S. dollar
debt in the third quarter of 2024, we expect to be subject to an increased amount of U.S./Canadian dollar exchange
rate exposure. Resulting gains or losses on this increased exposure to the U.S. dollar on our U.S. cash balances will be
recorded through the income statement.
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, may have an impact on demand and prices for our commodities, on our
suppliers and employees, and on global financial markets in the future, which could be material.
The potential imposition of tariffs and countervailing restrictions between the U.S. and Canada is a fluid and rapidly
evolving situation that is being closely monitored by Teck. We primarily sell refined zinc and lead, and specialty metals
such as germanium, indium, and sulphur products from Canada into the U.S. from our Trail Operations in B.C. Teck
does not currently sell our copper or zinc concentrate into the U.S. We will continue to actively monitor the situation
and work to mitigate any potential impacts on our business.
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.
The sensitivity of our annualized adjusted profit (loss) from continuing operations attributable to shareholders1 and
adjusted EBITDA1 to changes in the Canadian/U.S. dollar exchange rate and commodity prices, before pricing
adjustments, based on our current balance sheet, our 2025 mid-range production estimates, current commodity prices
and a Canadian/U.S. dollar exchange rate of $1.40, is as follows. Our U.S. dollar exchange sensitivity excludes foreign
exchange gain/losses on our U.S. dollar cash and debt balances as these amounts are excluded from our adjusted profit
from continuing operations attributable to shareholders1 and adjusted EBITDA1 calculations.
1 This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
40
Teck 2024 Annual Report
Guidance
Our guidance for 2025 is unchanged from our guidance released on January 20, 2025. 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 guidance volumes and any variances from estimated production ranges will impact
unit costs. Our disclosed guidance ranges for capital expenditures do not include post-sanction capital expenditures
for the unsanctioned near-term growth projects noted above. Our disclosed production guidance ranges also do
not include the production associated with these unsanctioned projects. Guidance will be updated at the time a
sanction decision is made.
We remain highly focused on managing our controllable operating expenditures. Our underlying key mining drivers,
such as strip ratios and haul distances, remain relatively stable. Inflation on key input costs, including the cost of
certain key supplies and mining equipment, labour and contractors, and changing diesel prices, is included in our
2025 annual capital expenditure, capitalized stripping and unit cost guidance. Our unit cost guidance for 2025
reflects actions taken across our operations to reduce costs, and embedding our management operating system
across our operations to improve consistency and efficiency.
As a result of structural cost reductions across our business, we expect our 2025 general and administration and
research and innovation costs to decrease by approximately 15% and 35%, respectively, compared to 2024. This
excludes investment in the implementation of a new enterprise resource planning (ERP) system across the company,
which we expect to commence in 2025. This will be a multi-year program and capital costs associated with this
investment for the first year are included in our 2025 guidance, outlined below. Certain costs associated with the
ERP implementation will be expensed.
Based on our current elevated cash and cash equivalents balance as a result of the receipt of proceeds from the sale
of the steelmaking coal business, we expect to have higher investment interest income for the foreseeable future.
Production Guidance
Total copper production in 2025 is expected to increase to between 490,000 and 565,000 tonnes compared to
446,000 tonnes produced in 2024. Our 2025 annual QB production is expected to increase to between 230,000
and 270,000 tonnes in 2025. We had scheduled planned maintenance in January 2025 for minor modifications;
however, we extended the scheduled shutdown to 18 days to conduct maintenance and reliability work, and to
complete additional tailings lifts as part of the operational ramp-up. At HVC, production is expected to increase
Estimated Effect of
Change On Adjusted
Profit (Loss) from
Estimated
2025
Continuing Operations
Effect on
Mid-Range
Attributable to
Adjusted
Production
Shareholders2,4
EBITDA2,4
Estimates1
Change
($ in millions)
($ in millions)
US$ exchange
CAD$0.01
$
23
$
51
Copper (000’s tonnes)
527.5
US$0.01/lb.
$
8
$
15
Zinc (000’s tonnes)3
760.0
US$0.01/lb.
$
8
$
11
Notes:
1.
Production estimates are subject to change based on market and operating conditions.
2. The effect on our adjusted profit (loss) from continuing operations attributable to shareholders and on adjusted EBITDA of commodity price and
exchange rate movements will vary from quarter to quarter depending on sales volumes. Our estimate of the sensitivity of adjusted profit (loss)
from continuing operations attributable to shareholders and adjusted EBITDA to changes in the U.S. dollar exchange rate is sensitive to commodity
price assumptions.
3. Zinc includes 210,000 tonnes of refined zinc and 550,000 tonnes of zinc contained in concentrate.
4. This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
41
Management’s Discussion and Analysis
significantly in 2025 as mining continues in the Lornex pit, releasing ore that is both higher grade (more metal)
and softer (higher mill throughput). These factors combined will more than offset expected lower recovery rates
associated with the Lornex ore.
Total zinc in concentrate production in 2025 is expected to be between 525,000 and 575,000 tonnes, compared to
615,900 tonnes in 2024. We expect lead production from Red Dog to be between 85,000 and 105,000 tonnes in
2025. We expect Trail Operations to produce between 190,000 and 230,000 tonnes of refined zinc in 2025. 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.
Production Guidance
The table below shows our share of production of our principal products for 2024, our guidance for production in
2025 and our guidance for production for the following three years.
2025
2026
2027
2028
Units in thousand tonnes
2024
Guidance
Guidance
Guidance
Guidance
Principal Products
Copper1,2
Quebrada Blanca
207.8
230 – 270
280 – 310
280 - 310
270 - 300
Highland Valley Copper
102.4
135 - 150
130 – 150
120 – 140
70 - 90
Antamina
96.1
80 – 90
95 – 105
85 – 95
80 - 90
Carmen de Andacollo
39.7
45 – 55
45 - 55
45 – 55
35 - 45
446.0
490 - 565
550 - 620
530 - 600
455 - 525
Zinc1,2,3
Red Dog
555.6
430– 470
410 - 460
365 – 400
290 - 320
Antamina
60.3
95 – 105
55 – 65
35–45
45 – 55
615.9
525 – 575
465 – 525
400 - 445
335 – 375
Refined Zinc
Trail Operations
256.0
190 – 230
260 – 300
260 – 300
260 – 300
Other Products
Lead1
Red Dog
109.1
85 – 105
70 – 90
60 – 80
50 - 65
Molybdenum1,2
Quebrada Blanca
0.6
3.0 – 4.5
6.4 – 7.6
7.0 – 8.0
6.0 – 7.0
Highland Valley Copper
0.9
1.6 – 2.1
2.3 – 2.8
2.7 – 3.2
1.8 – 2.4
Antamina
1.8
0.5 – 0.8
0.7 – 1.0
0.9 – 1.2
0.4 – 0.6
3.3
5.1 – 7.4
9.4 – 11.4
10.6 – 12.4
8.2 - 10.0
Notes:
1.
Metal contained in concentrate.
2. We include 100% of production from our Quebrada Blanca and Carmen de Andacollo mines in our production 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 from Antamina,
representing our proportionate ownership interest in this operation.
3. Total zinc includes co-product zinc production from our 22.5% proportionate interest in Antamina.
42
Teck 2024 Annual Report
Sales Guidance
The table below shows our Q4 2024 sales volumes and our sales guidance for the first quarter of 2025 for zinc in
concentrate sales at Red Dog.
Unit Cost Guidance
The table below reports our unit costs for 2024 and our guidance for unit costs for selected products in 2025.
Capital Expenditure Guidance
Our 2025 capital expenditures are expected to decrease from 2024 following completion of construction of the QB2
project in 2024. The decrease is expected to be partially offset by capital expenditures to progress our near-term
copper growth strategy. The capital required for our near-term growth projects is dependent on the timing of permit
approvals and completion of studies and detailed engineering work prior to potential sanction decisions. Post-sanction
expenditures are not included in our capital expenditure guidance below for 2025.
Our sustaining capital and capitalized production stripping expenditures are expected to be between $1.0 and $1.2 billion,
in line with our previously disclosed guidance for our current portfolio of operating assets. Our 2025 sustaining capital
expenditure in 2025 is expected to be between $750 and $845 million, of which $600–$670 million relates to our
copper business and $150–$175 million relates to our zinc business. Capitalized production stripping costs in 2025 are
expected to be between $260 and $300 million.
In 2025, we anticipate investing approximately US$430–$485 million (Teck’s share) in copper growth capital expenditures,
including approximately US$100–$110 million for HVC MLE and US$220–$240 million for Zafranal. Both projects are
currently focused on advancing detailed engineering, design and project execution planning, which are critical steps
in meeting our investment requirements for full project sanctioning. For Zafranal, in addition to engineering and
2025
(Per unit costs)
2024
Guidance
Copper1
Total cash unit costs4 (US$/lb.)
2.54
2.05 – 2.35
Net cash unit costs3,4 (US$/lb.)
2.20
1.65 – 1.95
Zinc2
Total cash unit costs4 (US$/lb.)
0.61
0.65 – 0.75
Net cash unit costs3,4 (US$/lb.)
0.39
0.45 – 0.55
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 2025 assumes a zinc price of
US$1.25 per pound, a molybdenum price of US$20 per pound, a silver price of US$30 per ounce, a gold price of US$2,400 per ounce, a Canadian/U.S.
dollar exchange rate of $1.40 and a Chilean peso/U.S. dollar exchange rate of 950.
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 2025 assumes a lead price of US$0.95
per pound, a silver price of US$30 per ounce and a Canadian/U.S. dollar exchange rate of $1.40. 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.
Q4
Q1 2025
2024
Guidance
Zinc (thousand tonnes)1
Red Dog
184
75 – 90
Note:
1.
Metal contained in concentrate.
43
Management’s Discussion and Analysis
planning activities, we will proceed with advanced early works in 2025 to enable construction to start when the
project is sanctioned.
Our remaining copper growth capital expenditures are expected to be deployed to continue to progress our industry-
leading copper growth pipeline of medium- to long-term projects, including Galore Creek, Schaft Creek, NewRange
and NuevaUnión. These investments reflect our commitment to disciplined capital allocation, ensuring that we are
well-positioned to advance these growth initiatives efficiently and in alignment with our long-term copper strategy.
Our 2025 growth capital expenditure guidance for zinc primarily relates to the construction of an all-season access
road at Red Dog to more efficiently drill the Anarraaq and Aktigiruq deposits, progressing the potential for mine
life extension.
The table below reports our capital expenditures for 2024 and our guidance for capital expenditure in 2025.
2025
(Teck’s share in $ millions)
2024
Guidance
Sustaining
Copper
$
654
$
600 – 670
Zinc
182
150 – 175
$
836
$
750 - 845
Growth
Copper1
$
1,323
$
740 – 830
Zinc
80
135 – 150
$
1,403
$
875 - 980
Total
Copper
$
1,977
$ 1,340 - 1,500
Zinc
262
285 - 325
Corporate
23
25 - 40
ERP2
–
80 - 100
Total before partner contributions
$
2,262
$ 1,730 – 1,965
Estimated partner contributions to capital expenditures
(375)
(150) – (170)
Total, net of partner contributions
$
1,887
$ 1,580 – 1,795
Notes:
1.
Copper growth capital guidance includes feasibility studies, advancing detailed engineering work, project execution planning, and progressing
permitting for Highland Valley Copper MLE, San Nicolás and Zafranal. 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. 2024 growth
capital includes QB2 project capital costs of $970 million.
2. ERP spending reflects expected 2025 capital investment only.
Capital Expenditure Guidance — Capitalized Production Stripping
2025
(Teck’s share in CAD$ millions)
2024
Guidance
Capitalized Production Stripping
Copper
$
290
$
195 – 225
Zinc
83
65 – 75
$
373
$
260 – 300
44
Teck 2024 Annual Report
Other Information
Climate Change and Carbon Pricing
As part of ongoing global efforts to address climate change, regulations to control greenhouse gas emissions are
evolving. 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.
Our operations in British Columbia were previously subject to the provincial Carbon Tax Act. On April 1, 2024, the
Province of British Columbia transitioned the regulation of industrial facility GHG emissions from the Carbon Tax Act
to an Output-Based Pricing System (OBPS). Under the OBPS, industrial facilities whose emissions exceed their
permitted amounts will have a compliance obligation. OBPS compliance obligations will be met through payments
or the use of offsets or credits.
We may in the future face similar emissions regulation or taxation for our activities in other jurisdictions. Similarly,
customers of some of our products may also be subject to new emissions 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 where feasible. 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 the end of 2025
and an ambition to achieve net-zero Scope 3 greenhouse gas emissions by 2050. 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 the pace of commercialization, the
regulatory environment for subsidies and incentives, and the markets for carbon credits and offsets.
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. Our Scope 3 ambition is a commitment made by Teck,
supported with actions, to achieve an outcome where there is no current pathway and where Teck’s ability to achieve
the outcome is subject to assumptions, uncertainties and limiting factors. Since Scope 3 emissions are those that
occur within our supply chain, their management is outside of Teck’s direct control, limiting our ability to manage
them. Across our Scope 3 emissions, advancements in technology and the commercial viability of low- or no-carbon
solutions will be required to achieve net-zero emissions. We intend to continue to monitor our ability to achieve
progress towards this ambition as the situation evolves.
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 in the year and profit for the period, 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 Codelco 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 34 in our 2024 audited annual consolidated financial statements.
45
Management’s Discussion and Analysis
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 consolidated financial statements
are outlined below. While the sale of the steelmaking coal business was completed in 2024, balance sheet amounts
for 2023 and profit from discontinued operations for both 2023 and 2024 are disclosed in our consolidated financial
statements. Therefore, we have continued to disclose the areas of judgment and estimation uncertainty that are
applicable to the steelmaking coal business.
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, 2024 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, operating results, mine plans and operating plans.
In the third quarter of 2024, as a result of the challenging environment for treatment charges due to a global shortage
of zinc concentrate, continued operating losses, combined with a fire in the electrolytic zinc plant affecting expected
operations in the fourth quarter of 2024, we identified impairment indicators at our Trail Operations cash-generating
unit (Trail CGU) and consequently performed an impairment test.
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 impairment test for our steelmaking coal group of CGUs.
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.
We consider several factors when assessing the timing of when assets become available for use, 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.
QB consists of property, plant and equipment that become available for use at different dates. In December of 2023,
the majority of the assets related to QB became available for use. In May of 2024, the shiploading and related
infrastructure at QB became available for use. The molybdenum plant at QB is not yet operating at the level as
intended by management and therefore was not available for use as at December 31, 2024.
In June of 2024, the KIVCET boiler at our Trail Operations became available for use.
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
46
Teck 2024 Annual Report
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.
47
Management’s Discussion and Analysis
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).
Assets Held for Sale
Judgment is required in assessing whether certain assets are considered as held for sale as at the balance sheet date.
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 approvals.
b) Sources of Estimation Uncertainty
Impairment Testing
For required impairment testing, 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, mine production, 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 2024
include the long-term zinc price, long-term zinc treatment charges, long-term zinc premiums, U.S. dollar to Canadian
dollar foreign exchange rates, zinc production rates, operating costs, capital costs and discount rate.
Our 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 consolidated statements of income (loss) and the resulting carrying
values of assets.
48
Teck 2024 Annual Report
Impairment Testing - Trail CGU – 2024
In the third quarter of 2024, as a result of the challenging environment for treatment charges due to a global shortage
of zinc concentrate, continued operating losses, combined with a fire in the electrolytic zinc plant affecting expected
operations in the fourth quarter of 2024, we identified impairment indicators at our Trail Operations cash-generating
unit (Trail CGU) and consequently performed an impairment test. Using a discounted cash flow model to estimate the
FVLCD (fair value less costs of disposal), the estimated post-tax recoverable amount of the Trail CGU of $666 million
was lower than our carrying value. As a result, we recorded a non-cash, pre-tax asset impairment for our Trail CGU of
$1.1 billion (after-tax $828 million). The impairment affected the profit (loss) of our zinc reportable segment and our
corporate activities.
Key assumptions used in the analysis included the long-term zinc price, long-term zinc treatment charges, long-term
zinc premiums, U.S. dollar to Canadian dollar foreign exchange rates, zinc production rates, operating costs, capital
costs and discount rate. The discount rate used was 5.5%. The FVLCD estimates are classified as a Level 3
measurement within the fair value measurement hierarchy.
Impairment Testing – Steelmaking Coal Group of CGUs – 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 impairment test for our steelmaking coal group of CGUs. We estimated the recoverable
amount based on the consideration expected to be received from the sale transactions. 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 updated applicable assumptions including the steelmaking coal price, mine production 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. The FVLCD estimates were classified as a Level 3 measurement
within the fair value measurement hierarchy.
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, 2024, 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 47 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.
Sensitivity Analysis
The recoverable amount of our Quebrada Blanca CGU exceeded the carrying amount by approximately US$1.8 billion
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$0.38 decrease in the
long-term real copper price per pound, or a 110 basis points increase in the discount rate would result in the
recoverable amount of Quebrada Blanca being equal to its carrying value.
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.
49
Management’s Discussion and Analysis
Quebrada Blanca CGU Goodwill Impairment Assumptions
The following are the key assumptions used in our Quebrada Blanca CGU impairment testing calculations for the years
ended December 31, 2024 and 2023.
Commodity Price Assumptions
A long-term real copper price per pound in 2029 of US$4.20 (2023 – long-term real copper price per pound in 2028 of
US$3.90) was used in preparing the discounted cash flow model.
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
A discount rate of 7.0% (2023 – 7.0%) was used in preparing the discounted cash flow model. Discount rates are based
on market participant mining weighted average costs of capital adjusted for risks specific to the asset, where
appropriate.
Reserves and Resources and Mine 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.
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 and internal management forecasts.
Cost estimates incorporate management experience and expertise, current operating costs, the nature and location
of the operation, and the risks associated with the 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.
50
Teck 2024 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. 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 consolidated statements of income (loss) may be affected.
Financial Liabilities
We have a financial liability for the preferential dividend stream from QBSA to Codelco. This financial liability is most
significantly affected by copper prices and the interest rate on the subordinated loans provided by us and Sumitomo
Metal Mining Co., Ltd. and Sumitomo Corporation (together referred to as SMM/SC) to QBSA, which affects the timing
of when QBSA repays the loans. A floating interest rate is used based on the Secured Overnight Financing Rate (Term
SOFR) plus an applicable margin. To the extent these significant inputs differ from our estimates, adjustments will be
recorded and the consolidated statements of income (loss) will 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 consolidated 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).
51
Management’s Discussion and Analysis
Adoption of New Accounting Standards and Accounting Developments
New IFRS Accounting Standards and Amendments
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,
including incremental disclosures regarding covenants. 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 were effective for annual periods beginning on
or after January 1, 2024 and adoption of these amendments did not have an effect on amounts recognized in our
consolidated financial statements.
Amendments to IFRS 9 and IFRS 7 – Contracts Referencing Nature-dependent Electricity
In December 2024, the IASB issued Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and
IFRS 7. These amendments aimed to ensure that nature-dependent electricity contracts, where contractual features
can expose a company to variability in the underlying amount of electricity because the source of electricity
generation depends on uncontrollable natural conditions, are appropriately reflected in the financial statements.
The amendments include clarifying the application of the “own use” requirements to these contracts in assessing
whether derivative accounting is required, permitting hedge accounting if these contracts are used as hedging
instruments and requiring new disclosures that discuss the effect of these contracts on a company’s financial
performance and cash flows.
The amendments are effective for annual periods beginning on or after January 1, 2026, with early application
permitted. The clarifications regarding the “own use” requirements are applied retrospectively, but the guidance
permitting hedge accounting is applied prospectively to new hedging relationships designated on or after the date
of initial application. We are currently assessing the effect of these amendments on our consolidated financial
statements.
Amendments to IFRS 9 and IFRS 7 – Amendments to the Classification and Measurement of Financial Instruments
In May 2024, the IASB issued Amendments to the Classification and Measurement of Financial Instruments – Amendments
to IFRS 9 and IFRS 7. These amendments updated classification and measurement requirements in IFRS 9 Financial
Instruments and related disclosure requirements in IFRS 7 Financial Instruments: Disclosures. The IASB clarified the
recognition and derecognition date of certain financial assets and liabilities, and amended the requirements related to
settling financial liabilities using an electronic payment system. It also clarified how to assess the contractual cash
flow characteristics of financial assets in determining whether they meet the solely payments of principal and interest
criterion, including financial assets that have environmental, social and corporate governance (ESG)-linked features
and other similar contingent features. The IASB added disclosure requirements for financial instruments with
contingent features that do not relate directly to basic lending risks and costs, and amended disclosures relating to
equity instruments designated at fair value through other comprehensive income.
The amendments are effective for annual periods beginning on or after January 1, 2026, with early application
permitted. We are currently assessing the effect of these amendments on our consolidated financial statements.
IFRS 18 – Presentation and Disclosure in Financial Statements
In April 2024, the IASB issued IFRS 18, Presentation and Disclosure in Financial Statements (IFRS 18), which replaces IAS 1,
Presentation of Financial Statements. IFRS 18 introduces a specified structure for the income statement by requiring
income and expenses to be presented into the three main categories of operating, investing and financing, and by
52
Teck 2024 Annual Report
specifying certain defined totals and subtotals. An entity may use certain subtotals of income and expenses in public
communications outside the financial statements to communicate management’s view of an aspect of the financial
performance of the entity as a whole to users, and these subtotals are not specifically required by IFRS Accounting
Standards. IFRS 18 requires companies to disclose explanations around these measures, which are referred to as
management-defined performance measures. IFRS 18 also provides additional guidance on principles of aggregation
and disaggregation that apply to the primary financial statements and the notes. IFRS 18 will not affect the
recognition and measurement of items in the financial statements, nor will it affect which items are classified in other
comprehensive income and how these items are classified. The standard is effective for reporting periods beginning
on or after January 1, 2027, including for interim financial statements. Retrospective application is required and early
application is permitted. We are currently assessing the effect of this new standard on our consolidated financial
statements.
Outstanding Share Data
As at February 19, 2025, there were approximately 495.7 million Class B subordinate voting shares and 7.6 million Class
A common shares outstanding. In addition, there were approximately 5.3 million share options outstanding with exercise
prices ranging between $5.34 and $70.34 per share. More information on these instruments, and the terms of their
conversion, is set out in Note 29 in our 2024 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, 2024 and ending November 21, 2025,
representing approximately 7.9% of the outstanding Class B shares, or 8.0% of the public float, as at November 8, 2024.
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 296,920 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, 2024 of 1,187,683, 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 22, 2023, and ended
on November 21, 2024, Teck purchased 18,062,775 Class B subordinate voting shares at an average purchase price of
$62.75 per share. Teck sought and received approval to purchase up to 40 million Class B subordinate voting shares
under the previous normal course issuer bid. Security holders may obtain a copy of the notice of intention, without
charge, by request directed to the attention of our Corporate Secretary, at our offices located at Suite 3300–550
Burrard Street, Vancouver, British Columbia, V6C 0B3.
53
Management’s Discussion and Analysis
Contractual and Other Obligations
Less than
2–3
4–5
More than
($ in millions)
1 Year
Years
Years
5 Years
Total
Debt – Principal and interest payments
$
690
$
1,542
$
1,088
$
2,944
$
6,264
Leases – Principal and interest payments1
180
255
943
222
1,600
Codelco preferential dividend liability
–
–
494
219
713
QB2 advances from SMM/SC and
estimated interest payments
372
700
600
5,194
6,866
QB2 variable consideration to IMSA
72
68
–
–
140
Minimum purchase obligations2
Concentrate, equipment,
supply and other purchases
1,823
1,267
84
19
3,193
Shipping and distribution
73
116
116
160
465
Energy contracts
561
1,060
1,098
7,983
10,702
NAB PILT and VIF payments7
54
43
–
–
97
Pension funding3
5
–
–
–
5
Other non-pension
post-retirement benefits4
12
26
29
240
307
Decommissioning and
restoration provisions5
149
350
274
1,555
2,328
Other long-term liabilities6
38
109
71
80
298
Downstream pipeline take-or-pay
toll commitment
33
70
75
248
426
$
4,062
$
5,606
$
4,872
$ 18,864
$ 33,404
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 15 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, 2024, the company had a net pension asset of $254 million, based on actuarial estimates prepared on a going concern basis.
The amount of minimum funding for 2025 in respect of defined benefit pension plans is $5 million. The timing and amount of additional funding
after 2025 is dependent upon future returns on plan assets, discount rates and other actuarial assumptions.
4. We had a discounted, actuarially determined liability of $307 million in respect of other non-pension post-retirement benefits as at December 31,
2024. Amounts shown are estimated expenditures in the indicated years.
5. We accrue decommissioning and restoration obligations over the life of our mining operations, and amounts shown are estimated expenditures in
the indicated years at present value, assuming credit-adjusted risk-free discount rates between 6.33% and 7.03% and an inflation factor of 2.00%.
6. Other long-term liabilities include amounts for other environmental obligations costs and other liabilities.
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.
54
Teck 2024 Annual Report
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, 2024. 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, 2024.
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. There have been no significant changes in our internal controls
during the year ended December 31, 2024 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, 2024, our internal control over financial reporting was effective.
The effectiveness of our internal controls over financial reporting as at December 31, 2024, 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 (IASB). 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 from continuing operations attributable to shareholders: For adjusted profit from continuing
operations attributable to shareholders, we adjust profit from continuing operations 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 from continuing operations attributable to shareholders as described above.
55
Management’s Discussion and Analysis
Adjusted profit from continuing operations 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 reportable segments or overall operations.
Gross profit margins before depreciation and amortization: Gross profit margins before depreciation and
amortization are gross profit before depreciation and amortization, divided by revenue for each respective reportable
segment. We believe this measure assists us and readers to compare margins on a percentage basis among our
reportable segments.
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.
Total debt: Total debt is the sum of debt plus lease liabilities, including the current portions of debt and lease liabilities.
Net debt (cash): Net debt (cash) is total debt, less cash and cash equivalents. Net cash is the amount by which our
cash balance exceeds our total debt balance.
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 from continuing operations: Adjusted basic earnings per share from continuing
operations is adjusted profit from continuing operations attributable to shareholders divided by average number of
shares outstanding in the period.
Adjusted diluted earnings per share from continuing operations: Adjusted diluted earnings per share from continuing
operations is adjusted profit from continuing operations attributable to shareholders divided by average number of
fully diluted shares in a period.
56
Teck 2024 Annual Report
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 (Loss) from Continuing Operations Attributable to Shareholders
and Adjusted Profit from Continuing Operations Attributable to Shareholders
($ in millions, except per share data)
20241
20231
20221
Profit (loss) from continuing operations attributable
to shareholders
$
(467)
$
(118)
$
4,089
Add (deduct) on an after-tax basis:
Asset impairment
828
–
952
Loss on debt purchase
–
–
42
QB variable consideration to IMSA and Codelco
32
95
115
Environmental costs
3
88
99
Share-based compensation
72
63
181
Labour settlement
19
7
36
Commodity derivatives
(65)
9
(25)
Foreign exchange (gains) losses
(137)
(8)
15
Tax items
178
69
–
Loss from discontinued operations
–
–
(791)
Other
142
84
160
Adjusted profit from continuing operations attributable
to shareholders
$
605
$
289
$
4,873
Basic earnings (loss) per share from continuing operations
$
(0.90)
$
(0.23)
$
7.77
Diluted earnings (loss) per share from continuing operations
$
(0.90)
$
(0.23)
$
7.63
Adjusted basic earnings per share from continuing operations
$
1.17
$
0.56
$
9.25
Adjusted diluted earnings per share from continuing operations
$
1.16
$
0.55
$
9.09
Note:
1.
2024 figures are for continuing operations only. Comparative figures for 2023 for the steelmaking coal segment have been re-presented for the
classification of steelmaking coal as a discontinued operation. 2022 figures have not been re-presented.
57
Management’s Discussion and Analysis
Reconciliation of Basic Earnings (Loss) per share from Continuing Operations
to Adjusted Basic Earnings per share from Continuing Operations
(Per share amounts)
20241
20231
20221
Basic earnings (loss) per share from continuing operations
$
(0.90)
$
(0.23)
$
7.77
Add (deduct):
Asset impairment
1.60
–
1.81
Loss on debt purchase
–
–
0.08
QB variable consideration to IMSA and Codelco
0.06
0.18
0.22
Environmental costs
0.01
0.17
0.19
Share-based compensation
0.14
0.12
0.34
Labour settlement
0.04
0.01
0.07
Commodity derivatives
(0.13)
0.02
(0.05)
Foreign exchange (gains) losses
(0.27)
(0.01)
0.03
Tax items
0.34
0.13
–
Loss from discontinued operations
–
–
(1.51)
Other
0.28
0.17
0.30
Adjusted basic earnings per share from continuing operations
$
1.17
$
0.56
$
9.25
Note:
1.
2024 figures are for continuing operations only. Comparative figures for 2023 for the steelmaking coal segment have been re-presented for the
classification of steelmaking coal as a discontinued operation. 2022 figures have not been re-presented.
Reconciliation of Diluted Earnings (Loss) per share from Continuing Operations
to Adjusted Diluted Earnings per share from Continuing Operations
(Per share amounts)
20241
20231
20221
Diluted earnings (loss) per share from continuing operations
$
(0.90)
$
(0.23)
$
7.63
Add (deduct):
Asset impairment
1.58
–
1.78
Loss on debt purchase
–
–
0.08
QB variable consideration to IMSA and Codelco
0.06
0.18
0.21
Environmental costs
0.01
0.17
0.18
Share-based compensation
0.14
0.12
0.34
Labour settlement
0.04
0.01
0.07
Commodity derivatives
(0.13)
0.02
(0.05)
Foreign exchange (gains) losses
(0.26)
(0.01)
0.03
Tax items
0.34
0.13
–
Loss from discontinued operations
–
–
(1.48)
Other
0.28
0.16
0.30
Adjusted diluted earnings per share from continuing operations
$
1.16
$
0.55
$
9.09
Note:
1.
2024 figures are for continuing operations only. Comparative figures for 2023 for the steelmaking coal segment have been re-presented for the
classification of steelmaking coal as a discontinued operation. 2022 figures have not been re-presented.
58
Teck 2024 Annual Report
Reconciliation of EBITDA, Adjusted EBITDA, Net Debt to Adjusted EBITDA and Net Debt to
Capitalization Ratio
($ in millions)
2024
2023
2022
Profit from continuing operations before taxes as previously reported
$
(718)
$
3,944
$
6,565
Net finance income
719
162
150
Depreciation and amortization
1,726
1,931
1,674
EBITDA
$
1,727
$
6,037
$
8,389
Add (deduct):
Asset impairment
1,053
–
1,234
Loss on debt purchase
–
–
58
QB variable consideration to IMSA and Codelco
51
156
188
Environmental costs
–
168
128
Share-based compensation
91
107
236
Labour settlement
29
11
52
Commodity derivatives
(90)
12
(35)
Foreign exchange (gains) losses
(146)
29
(15)
EBITDA from discontinued operations
–
–
(811)
Other
218
(153)
144
Adjusted EBITDA1
$
2,933
$
6,367
$
9,568
Total debt at year-end
$
5,482
$
7,595
$
7,738
Less: cash and cash equivalents at year-end
(7,587)
(744)
(1,883)
Net debt (cash)
$
(2,105)
$
6,851
$
5,855
Debt to adjusted EBITDA ratio
1.9
1.2
0.8
Net debt to adjusted EBITDA ratio
(0.7)
1.1
0.6
Equity attributable to shareholders of the company
$ 26,077
$ 26,988
$
25,473
Other financial obligations
$
36
$
268
$
441
Adjusted net debt to capitalization ratio
(0.07)
0.20
0.19
Note:
1.
Amounts for the years ended December 31, 2023 and December 31, 2022 are as previously reported.
59
Management’s Discussion and Analysis
Reconciliation of Gross Profit Before Depreciation and Amortization
($ in millions)
2024
2023
2022
Gross profit
$
1,607
$
1,112
$
8,571
Depreciation and amortization
1,665
861
1,674
Gross profit before depreciation and amortization
$
3,272
$
1,973
$
10,245
Reported as:
Copper
Quebrada Blanca
$
766
$
(61)
$
8
Highland Valley Copper
471
391
738
Antamina
1,038
899
1,021
Carmen de Andacollo
121
44
73
Other
5
(8)
(3)
2,401
1,265
1,837
Zinc
Trail Operations
12
103
(18)
Red Dog
851
611
1,060
Other
8
(6)
2
871
708
1,044
Steelmaking coal1
–
–
7,364
Gross profit before depreciation and amortization
$
3,272
$
1,973
$
10,245
Note:
1.
2024 figures are for continuing operations only. Comparative figures for 2023 for the steelmaking coal segment have been re-presented for the
classification of steelmaking coal as a discontinued operation. 2022 figures have not been re-presented.
60
Teck 2024 Annual Report
Copper Unit Cost Reconciliation
(CAD$ in millions, except where noted)
2024
20231
20221
Revenue as reported
$
5,542
$
3,425
$
3,381
Less:
Quebrada Blanca revenue as reported
–
(595)
(105)
By-product revenue (A)
(507)
(397)
(456)
Smelter processing charges (B)
262
156
140
Adjusted revenue
$
5,297
$
2,589
$
2,960
Cost of sales as reported
$
4,497
$
2,713
$
1,982
Less: Quebrada Blanca cost of sales as reported
–
(737)
(103)
$
4,497
$
1,976
$
1,879
Less:
Depreciation and amortization
(1,356)
(472)
(432)
Inventory write-down
(41)
–
–
Labour settlement charges
(29)
(9)
(33)
Other
(31)
–
–
By-product cost of sales (C)
(82)
(125)
(101)
Adjusted cash cost of sales (D)
$
2,958
$
1,370
$
1,313
Payable pounds sold (millions)1 (E)
924.5
498.0
568.0
Per unit amounts — CAD$/pound
Adjusted cash cost of sales (D/E)
$
3.20
$
2.75
$
2.31
Smelter processing charges (B/E)
0.28
0.31
0.25
Total cash unit costs — CAD$/pound
$
3.48
$
3.06
$
2.56
Cash margins for by-products — ((A−C)/E)
(0.46)
(0.54)
(0.63)
Net cash unit costs — CAD$/pound
$
3.02
$
2.52
$
1.93
US$ amounts2
Average exchange rate (CAD$ per US$1.00)
$
1.37
$
1.35
$
1.30
Per unit amounts — US$/pound
Adjusted cash cost of sales
$
2.34
$
2.04
$
1.78
Smelter processing charges
0.20
0.23
0.19
Total cash unit costs — US$/pound
$
2.54
$
2.27
$
1.97
Cash margins for by-products
(0.34)
(0.40)
(0.48)
Net cash unit costs — US$/pound
$
2.20
$
1.87
$
1.49
Notes:
1.
Excludes Quebrada Blanca in 2023 and 2022.
2. Average period exchange rates are used to convert to US$ per pound equivalent.
61
Management’s Discussion and Analysis
Copper Unit Cost Reconciliation, Excluding QB1
(CAD$ in millions, except where noted)
2024
2023
2022
Revenue as reported
$
5,542
$
3,425
$
3,381
Less:
Quebrada Blanca revenue as reported
(2,376)
(595)
(105)
By-product revenue (A)
(402)
(397)
(456)
Smelter processing charges (B)
138
156
140
Adjusted revenue
$
2,902
$
2,589
$
2,960
Cost of sales as reported
$
4,497
$
2,713
$
1,982
Less: Quebrada Blanca cost of sales as reported
(2,338)
(737)
(103)
$
2,159
$
1,976
$
1,879
Less:
Depreciation and amortization
(628)
(472)
(432)
Inventory write-down
(6)
–
–
Labour settlement charges
(25)
(9)
(33)
Other
(5)
–
–
By-product cost of sales (C)
(82)
(125)
(101)
Adjusted cash cost of sales (D)
$
1,413
$
1,370
$
1,313
Payable pounds sold (millions)1 (E)
505.2
498.0
568.0
Per unit amounts — CAD$/pound
Adjusted cash cost of sales (D/E)
$
2.80
$
2.75
$
2.31
Smelter processing charges (B/E)
0.27
0.31
0.25
Total cash unit costs — CAD$/pound
$
3.07
$
3.06
$
2.56
Cash margins for by-products — ((A−C)/E)
(0.63)
(0.54)
(0.63)
Net cash unit costs — CAD$/pound
$
2.44
$
2.52
$
1.93
US$ amounts2
Average exchange rate (CAD$ per US$1.00)
$
1.37
$
1.35
$
1.30
Per unit amounts — US$/pound
Adjusted cash cost of sales
$
2.04
$
2.04
$
1.78
Smelter processing charges
0.20
0.23
0.19
Total cash unit costs — US$/pound
$
2.24
$
2.27
$
1.97
Cash margins for by-products
(0.46)
(0.40)
(0.48)
Net cash unit costs — US$/pound
$
1.78
$
1.87
$
1.49
Notes:
1.
Excludes Quebrada Blanca in 2024, 2023 and 2022.
2. Average period exchange rates are used to convert to US$ per pound equivalent.
62
Teck 2024 Annual Report
Zinc Unit Cost Reconciliation (Mining Operations1)
(CAD$ in millions, except where noted)
2024
2023
2022
Revenue as reported
$
3,523
$
3,051
$
3,526
Less:
Trail Operations revenues as reported
(2,003)
(1,992)
(2,059)
Other revenues as reported
(8)
(6)
(11)
Add back: Intra-segment revenues as reported
547
543
655
$
2,059
$
1,596
$
2,111
By-product revenues (A)
(434)
(320)
(260)
Smelter processing charges (B)
258
365
297
Adjusted revenue
$
1,883
$
1,641
$
2,148
Cost of sales as reported
$
2,961
$
2,651
$
2,755
Less:
Trail Operations cost of sales as reported
(2,069)
(1,994)
(2,152)
Other costs of sales as reported
–
(12)
(9)
Add back: Intra-segment purchases as reported
547
543
655
$
1,439
$
1,188
$
1,249
Less:
Depreciation and amortization
(231)
(203)
(198)
Royalty costs
(448)
(262)
(461)
By-product cost of sales (C)
(107)
(126)
(65)
Adjusted cash cost of sales (D)
$
653
$
597
$
525
Payable pounds sold (millions) (E)
1,078.6
1,042.8
1,088.9
Per unit amounts — CAD$/pound
Adjusted cash cost of sales (D/E)
$
0.61
$
0.57
$
0.48
Smelter processing charges (B/E)
0.23
0.35
0.27
Total cash unit costs — CAD$/pound
$
0.84
$
0.92
$
0.75
Cash margins for by-products — ((A−C)/E)
(0.30)
(0.18)
(0.18)
Net cash unit costs — CAD$/pound
$
0.54
$
0.74
$
0.57
US$ amounts2
Average exchange rate (CAD$ per US$1.00)
$
1.37
$
1.35
$
1.30
Per unit amounts — US$/pound
Adjusted cash cost of sales
$
0.44
$
0.42
$
0.37
Smelter processing charges
0.17
0.26
0.21
Total cash unit costs — US$/pound
$
0.61
$
0.68
$
0.58
Cash margins for by-products
(0.22)
(0.13)
(0.14)
Net cash unit costs — US$/pound
$
0.39
$
0.55
$
0.44
Notes:
1.
Red Dog Mining Operations.
2. Average period exchange rates are used to convert to US$ per pound equivalent.
63
Management’s Discussion and Analysis
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,
including being a pure-play energy transition metals company; anticipated global and regional supply, demand and
market outlook for our commodities; our business, assets, and strategy going forward, including with respect to future
and ongoing project development; our ability to execute our copper growth strategy in a value accretive manner; the
expected use of proceeds from the sale of our steelmaking coal business, including the timing and format of any cash
returns to shareholders; the anticipated benefits of the sale of our steelmaking coal business; our expectations
regarding the optimization and debottlenecking of QB; expectations regarding ore grades in the QB operations;
expectations regarding inflationary pressures and our ability to manage controllable operating expenditures;
expectations with respect to execution of our copper growth strategy, including the timing and occurrence of any
sanction decisions and prioritization and amount of planned growth capital expenditures; expectations regarding
advancement of our copper growth portfolio projects, including investment value, advancement of study, permitting,
execution planning, detailed engineering and design, risk mitigation, and advanced early works, community and
Indigenous engagement, completion of updated cost estimates, tendering processes, commencement of advance
works construction, and timing for receipt of permits related to QB debottlenecking and expansion, the HVC Mine Life
Extension, San Nicolás, Zafranal, NorthMet, Galore Creek, Schaft Creek, NewRange and NuevaUnión projects, as
applicable; expectations with respect to timing and outcome of the regulatory approvals process for the HVC Mine Life
Extension, including with respect to the dispute resolution process underway; expectations with respect to risk
mitigation plans for Carmen de Andacollo water availability; expectations regarding zinc production at the Red Dog and
Trail operations; expectations regarding copper, nickel, and zinc exploration opportunities and operations; expectations
regarding our greenhouse gas emissions’ targets; expectations regarding timing and amount of income tax payments
and our effective tax rate; liquidity and availability of borrowings under our credit facilities; requirements to post and our
ability to obtain additional credit for posting security for reclamation at our sites; our ability to implement structural cost
reductions; all guidance appearing in this document including but not limited to the production, sales, cost, unit cost,
capital expenditure, capitalized production stripping, operating outlook, and other guidance under the headings
“Guidance” and “Outlook” and as discussed elsewhere in the various reportable segment 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; the
imposition of tariffs, import or export restrictions, or other trade barriers by foreign or domestic governments; the
continued operation of QB in accordance with our expectations, including the occurrence and length of any required
maintenance shutdowns; the reduction in our operating expenses across our copper operations; the output expected
from mining in the Lornex pit at HVC; the progress of repairs of the electrolytic plant impacted by fires at the Trial
Operations; the possibility that the anticipated benefits from the sale of our steelmaking coal business are not realized
in the time frame anticipated or at all as a result of changes in general economic and market conditions, including
credit, market, currency, operational, commodity, liquidity and funding risks generally and relating specifically to the
transaction; the possibility that our business may not perform as expected or in a manner consistent with historical
performance; the supply and demand for, deliveries of, and the level and volatility of prices of copper and zinc 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 and exploration; 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,
64
Teck 2024 Annual Report
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; anticipated reduction in general and administration
and research and innovation costs; our ability to implement a new ERP system and achieve the expected benefits
therefrom; 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
assumptions on which these are based; tax benefits and statutory and effective tax rates; the outcome of our copper,
zinc and lead concentrate treatment and refining charge negotiations with customers; the improvement, availability,
and feasibility of implementation of low-carbon technologies; the measures taken by our supply chain partners to
achieve our Scope 3 emission targets; 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.
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. 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; the imposition of tariffs, import or export restrictions, or other
trade barriers by foreign or domestic governments; 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; 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. Ongoing monitoring may reveal unexpected environmental conditions at our operations and projects that
could require additional remedial measures. Production at our QB and 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.
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, 2024 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 annual report regarding our material properties was reviewed, approved
and verified by Rodrigo Alves Marinho, P.Geo., a contractor of Teck and a Qualified Person as defined under National
Instrument 43-101.
65
Consolidated Financial Statements
CONSOLIDATED
FINANCIAL STATEMENTS
For the Years Ended December 31, 2024 and 2023
Teck 2024 Annual Report
66
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 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, 2024, our internal control over financial reporting was effective.
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
Executive Vice President and Chief Financial Officer
February 19, 2025
MANAGEMENT’S RESPONSIBILITY FOR
FINANCIAL REPORTING
67
Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders 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
(the Company) as of December 31, 2024 and 2023, and the related consolidated statements of income, of
comprehensive income, of changes in equity and of 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, 2024, 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, 2024 and 2023, 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, 2024, 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.
Teck 2024 Annual Report
68
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 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.
Goodwill Impairment Test of the Quebrada Blanca Cash Generating Unit (the QB CGU)
As described in Notes 3, 4, 9 and 19 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 QB 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, 2024 was $442
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, 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 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, reserves and resources, mine production, operating costs,
capital expenditures, the discount rate and the fair value per pound of copper equivalent used in the
69
Consolidated Financial Statements
determination of the in situ value; and (iv) 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 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) recent actual production and other third party
information for mine production. The work of management’s specialists was used in performing the procedures
to evaluate the reasonableness of 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.
Impairment Test of the Trail Operations Cash Generating Unit (the Trail CGU)
As described in Notes 3, 4, and 9 to the consolidated financial statements, the carrying amounts of non-current
assets are reviewed for impairment whenever facts and circumstances indicate that the recoverable amounts
may be less than the carrying amounts. Where the asset does not generate cash flows that are independent
from other assets, the recoverable amount of the cash generating unit to which the asset belongs is determined.
The recoverable amount of an asset or cash generating unit is determined as the higher of its fair value less cost
of disposal (FVLCD) and its value in use. During the third quarter of 2024, management identified indicators
of impairment related to the Trail CGU and as a result, performed an impairment test. Management used a
discounted cash flow model to determine the recoverable amount based on FVLCD of the Trail CGU. The
post-tax recoverable amount of the Trail CGU as at September 30, 2024 of $666 million was lower than the
carrying amount, and as a result, a pre-tax impairment loss of $1.1 billion (after-tax $828 million) was recognized
by management. In determining the recoverable amount, management used significant assumptions such as:
long-term zinc price, long-term zinc treatment charges, long-term zinc premiums, USD-CAD foreign exchange
rates, zinc production rates, the discount rate, operating costs and capital costs.
The principal considerations for our determination that performing procedures relating to the impairment test
of the Trail CGU is a critical audit matter are: (i) significant judgment by management when determining the
recoverable amount of the Trail CGU; (ii) a high degree of auditor judgment, subjectivity and effort was required
in performing procedures to evaluate significant assumptions used in the discounted cash flow model relating
to: long-term zinc price, long-term zinc treatment charges, long-term zinc premiums, USD-CAD foreign
exchange rates, zinc production rates, the discount rate, operating costs and capital costs; and (iii) the audit
effort involved the use of professionals with specialized skill and knowledge.
70
Teck 2024 Annual Report
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 impairment test, including controls over the determination
of the recoverable amount of the Trail CGU. These procedures also included, among others, testing
management’s process for determining the recoverable amount of the Trail CGU, including evaluating the
appropriateness of the discounted cash flow model, testing the completeness and accuracy of underlying data
and evaluating the reasonableness of the significant assumptions used in the discounted cash flow model.
Evaluating the reasonableness of management’s assumptions involved considering their consistency with
(i) external market and industry data for the long-term zinc price, long-term zinc treatment charges, long-term
zinc premiums, and USD-CAD foreign exchange rates; and (ii) recent actual results and market data for zinc
production rates, operating costs and capital costs. Professionals with specialized skill and knowledge were
used to assist in the evaluation of the discount rate.
Chartered Professional Accountants
Vancouver, Canada
February 19, 2025
We have served as the Company's auditor since 1964
/s/PricewaterhouseCoopers LLP
71
Consolidated Financial Statements
Consolidated Statements of Income Years ended December 31
(CAD$ in millions, except for share data)
2024
2023
Revenue (Note 7)
$
9,065
$
6,476
Cost of sales
(7,458)
(5,364)
Gross profit
1,607
1,112
Other operating income (expenses)
General and administration
(275)
(296)
Exploration
(87)
(86)
Research and innovation
(50)
(117)
Asset impairment (Note 9)
(1,053)
–
Other operating income (expense) (Note 10)
(151)
(391)
Profit (loss) from operations
(9)
222
Finance income (Note 11)
234
110
Finance expense (Note 11)
(953)
(160)
Non-operating income (expense) (Note 12)
7
(249)
Share of profit of joint venture (Note 16)
3
2
Loss from continuing operations before taxes
(718)
(75)
Provision for income taxes from continuing operations (Note 25(a))
(205)
(237)
Loss from continuing operations
(923)
(312)
Profit from discontinued operations (Note 5)
1,206
2,620
Profit for the year
$
283
$
2,308
Loss from continuing operations attributable to:
Shareholders of the company
$
(467)
$
(118)
Non-controlling interests
(456)
(194)
Loss from continuing operations
$
(923)
$
(312)
Profit (loss) attributable to:
Shareholders of the company
$
406
$
2,409
Non-controlling interests
(123)
(101)
Profit for the year
$
283
$
2,308
Loss per share from continuing operations
Basic and diluted
$
(0.90)
$
(0.23)
Earnings per share from discontinued operations
Basic
$
1.69
$
4.88
Diluted
$
1.68
$
4.81
Earnings per share
Basic
$
0.79
$
4.65
Diluted
$
0.78
$
4.59
Weighted average shares outstanding (millions)
516.0
517.8
Weighted average diluted shares outstanding (millions)
520.0
525.3
Shares outstanding at end of year (millions)
506.3
517.3
The accompanying notes are an integral part of these consolidated financial statements.
72
Teck 2024 Annual Report
Consolidated Statements of Comprehensive Income Years ended December 31
(CAD$ in millions)
2024
2023
Profit for the year
$
283
$
2,308
Other comprehensive income (loss) from continuing operations for the year
Items that may be reclassified to profit
Currency translation differences (net of taxes of $7 and $(9))
1,684
(383)
Change in fair value of debt securities (net of taxes of $nil and $nil)
4
1
1,688
(382)
Items that will not be reclassified to profit
Change in fair value of marketable equity securities (net of taxes of $(7) and $1)
50
(5)
Remeasurements of retirement benefit plans (net of taxes of $nil and $(57))
(5)
134
45
129
Total other comprehensive income (loss) from continuing operations for the year
1,733
(253)
Other comprehensive income from discontinued operations for the year
Items that will not be reclassified to profit
Remeasurements of retirement benefit plans (net of taxes of $(30) and $(11))
51
17
Total comprehensive income for the year
$
2,067
$
2,072
Total comprehensive income (loss) attributable to:
Shareholders of the company
2,156
2,191
Non-controlling interests
(89)
(119)
$
2,067
$
2,072
Total comprehensive income (loss) attributable to shareholders
of the company from:
Continuing operations
1,231
(347)
Discontinued operations
925
2,538
$
2,156
$
2,191
The accompanying notes are an integral part of these consolidated financial statements.
73
Consolidated Financial Statements
Consolidated Statements of Cash Flows Years ended December 31
(CAD$ in millions)
2024
2023
Operating activities
Loss from continuing operations
$
(923)
$
(312)
Depreciation and amortization
1,726
925
Provision for income taxes from continuing operations
205
237
Gain on disposal or contribution of assets
(27)
(183)
Asset impairment
1,053
–
Net finance expense
719
50
Income taxes paid
(1,833)
(990)
Remeasurement of decommissioning and restoration provisions for closed operations
(42)
70
QB variable consideration to IMSA and Codelco
51
156
Foreign exchange gains
(146)
(9)
Other
(77)
36
Net change in non-cash working capital items
(276)
(543)
Net cash provided by (used in) continuing operating activities
430
(563)
Net cash provided by discontinued operating activities
2,360
4,647
2,790
4,084
Investing activities
Expenditures on property, plant and equipment
(2,262)
(3,885)
Capitalized production stripping costs
(373)
(455)
Expenditures on investments and other assets
(68)
(123)
Net proceeds from sale of discontinued operations and other
9,538
1,048
Proceeds from interest and dividend income
194
97
Net cash provided by (used in) continuing investing activities
7,029
(3,318)
Net cash used in discontinued investing activities
(856)
(1,439)
6,173
(4,757)
Financing activities
Proceeds from debt
77
230
Redemption, purchase or repayment of debt
(2,549)
(710)
Repayment of lease liabilities
(68)
(79)
QB advances from SMM/SC
652
1,292
Sale of minority interest in steelmaking coal business
1,675
–
Interest and finance charges paid
(863)
(722)
Issuance of Class B subordinate voting shares
172
63
Purchase and cancellation of Class B subordinate voting shares
(1,240)
(250)
Dividends paid
(514)
(515)
Contributions from non-controlling interests
263
439
Settlement of other liabilities
(102)
(65)
Net cash used in continuing financing activities
(2,497)
(317)
Net cash used in discontinued financing activities
(68)
(152)
(2,565)
(469)
Increase (decrease) in cash and cash equivalents
6,398
(1,142)
Change in cash classified as held for sale
–
35
Effect of exchange rate changes on cash and cash equivalents
445
(32)
Cash and cash equivalents at beginning of year
744
1,883
Cash and cash equivalents at end of year
$
7,587
$
744
Supplemental cash flow information (Note 13)
The accompanying notes are an integral part of these consolidated financial statements.
74
Teck 2024 Annual Report
Consolidated Balance Sheets As at December 31
(CAD$ in millions)
2024
2023
ASSETS
Current assets
Cash and cash equivalents (Note 13)
$
7,587
$
744
Current income taxes receivable
267
94
Trade and settlement receivables
1,661
2,096
Inventories (Note 14)
2,598
2,946
Prepaids and other current assets
461
585
12,574
6,465
Financial assets (Note 15)
764
672
Investment in joint venture (Note 16)
1,223
1 ,1 16
Property, plant and equipment (Note 17)
30,568
45,565
Intangible assets (Note 18)
196
345
Deferred income tax assets (Note 25(b))
572
65
Goodwill (Note 19)
442
1,108
Other assets (Note 20)
698
857
$
47,037
$
56,193
LIABILITIES AND EQUITY
Current liabilities
Trade accounts payable and other liabilities (Note 21)
$
2,735
$
3,654
Current portion of debt (Note 22)
423
515
Current portion of lease liabilities (Note 23(c))
175
195
Current income taxes payable
850
1 ,181
Current portion of provisions (Note 27)
187
347
4,370
5,892
Debt (Note 22)
4,108
6,019
Lease liabilities (Note 23(c))
776
866
QB advances from SMM/SC (Note 24)
4,483
3,497
Deferred income tax liabilities (Note 25(b))
2,293
6,188
Retirement benefit liabilities (Note 26(a))
373
445
Provisions (Note 27)
2,439
3,851
Other liabilities (Note 28)
1,099
1,143
19,941
27,901
Equity
Attributable to shareholders of the company
26,077
26,988
Attributable to non-controlling interests (Note 30)
1,019
1,304
27,096
28,292
$
47,037
$
56,193
Contingencies (Note 31)
Commitments (Note 32)
The accompanying notes are an integral part of these consolidated financial statements.
Approved on behalf of the Board of Directors
Una M. Power
Paul G. Schiodtz
Chair of the Audit Committee
Director
/s/Una M. Power
/s/Paul G. Schiodtz
75
Consolidated Financial Statements
Consolidated Statements of Changes in Equity Years ended December 31
(CAD$ in millions)
2024
2023
Class A common shares
$
6
$
6
Class B subordinate voting shares
Beginning of year
6,458
6,133
Share repurchases (Note 29(i))
(251)
(60)
Issued on exercise of options
228
83
Issued on dual class amendment (Note 29(b))
–
302
End of year
6,435
6,458
Retained earnings
Beginning of year
19,618
18,065
Profit for the year attributable to shareholders of the company
406
2,409
Dividends paid (Note 29(h))
(514)
(515)
Share repurchases (Note 29(i))
(1,010)
(190)
Shares issued on dual class amendment (Note 29(b))
–
(302)
Sale of steelmaking coal business (Note 5)
(1,485)
–
Remeasurements of retirement benefit plans
46
151
End of year
17,061
19,618
Contributed surplus
Beginning of year
213
207
Share option compensation expense (Note 29(d))
21
26
Transfer to Class B subordinate voting shares on exercise of options
(56)
(20)
End of year
178
213
Accumulated other comprehensive income attributable
to shareholders of the company (Note 29(f))
Beginning of year
693
1,062
Other comprehensive income (loss)
1,750
(218)
Remeasurements of retirement benefit plans recorded in retained earnings
(46)
(151)
End of year
2,397
693
Non-controlling interests (Note 30)
Beginning of year
1,304
1,038
Loss for the year attributable to non-controlling interests
(123)
(101)
Other comprehensive income (loss) attributable to non-controlling interests
34
(18)
Change from the NSC/POSCO transaction (Note 5)
3,155
–
Sale of steelmaking coal business (Note 5)
(3,261)
–
Contributions from non-controlling interests
263
439
Distributions to non-controlling interests
(353)
(54)
End of year
1,019
1,304
Total equity
$
27,096
$
28,292
The accompanying notes are an integral part of these consolidated financial statements.
76
Teck 2024 Annual Report
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
and zinc. We also produce lead, precious metals, molybdenum, fertilizers and other metals. Metal products are sold as
refined metals or concentrates. We completed the sale of our steelmaking coal business, Elk Valley Resources (EVR),
in 2024 and the sale of our oil sands business, Fort Hills, in 2023 (Note 5).
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 and Amendments
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 19, 2025.
b) New IFRS Accounting Standards and Amendments
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,
including incremental disclosures regarding covenants. 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 were effective for annual periods beginning on
or after January 1, 2024 and adoption of these amendments did not have an effect on amounts recognized in our
consolidated financial statements.
Amendments to IFRS 9 and IFRS 7 – Contracts Referencing Nature-dependent Electricity
In December 2024, the IASB issued Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and
IFRS 7. These amendments aimed to ensure that nature-dependent electricity contracts, where contractual features
can expose a company to variability in the underlying amount of electricity because the source of electricity
generation depends on uncontrollable natural conditions, are appropriately reflected in the financial statements. The
amendments include clarifying the application of the “own use” requirements to these contracts in assessing whether
derivative accounting is required, permitting hedge accounting if these contracts are used as hedging instruments
and requiring new disclosures that discuss the effect of these contracts on a company’s financial performance and
cash flows.
The amendments are effective for annual periods beginning on or after January 1, 2026, with early application
permitted. The clarifications regarding the “own use” requirements are applied retrospectively, but the guidance
permitting hedge accounting is applied prospectively to new hedging relationships designated on or after the date
of initial application. We are currently assessing the effect of these amendments on our consolidated financial
statements.
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
77
Consolidated Financial Statements
Amendments to IFRS 9 and IFRS 7 – Amendments to the Classification and Measurement of Financial Instruments
In May 2024, the IASB issued Amendments to the Classification and Measurement of Financial Instruments – Amendments
to IFRS 9 and IFRS 7. These amendments updated classification and measurement requirements in IFRS 9 Financial
Instruments and related disclosure requirements in IFRS 7 Financial Instruments: Disclosures. The IASB clarified the
recognition and derecognition date of certain financial assets and liabilities, and amended the requirements related to
settling financial liabilities using an electronic payment system. It also clarified how to assess the contractual cash
flow characteristics of financial assets in determining whether they meet the solely payments of principal and interest
criterion, including financial assets that have environmental, social and corporate governance (ESG)-linked features
and other similar contingent features. The IASB added disclosure requirements for financial instruments with
contingent features that do not relate directly to basic lending risks and costs, and amended disclosures relating to
equity instruments designated at fair value through other comprehensive income.
The amendments are effective for annual periods beginning on or after January 1, 2026, with early application
permitted. We are currently assessing the effect of these amendments on our consolidated financial statements.
IFRS 18 – Presentation and Disclosure in Financial Statements
In April 2024, the IASB issued IFRS 18, Presentation and Disclosure in Financial Statements (IFRS 18), which replaces IAS 1,
Presentation of Financial Statements. IFRS 18 introduces a specified structure for the income statement by requiring
income and expenses to be presented into the three main categories of operating, investing and financing, and by
specifying certain defined totals and subtotals. An entity may use certain subtotals of income and expenses in public
communications outside the financial statements to communicate management’s view of an aspect of the financial
performance of the entity as a whole to users, and these subtotals are not specifically required by IFRS Accounting
Standards. IFRS 18 requires companies to disclose explanations around these measures, which are referred to as
management-defined performance measures. IFRS 18 also provides additional guidance on principles of aggregation
and disaggregation that apply to the primary financial statements and the notes. IFRS 18 will not affect the recognition
and measurement of items in the financial statements, nor will it affect which items are classified in other comprehensive
income and how these items are classified. The standard is effective for reporting periods beginning on or after
January 1, 2027, including for interim financial statements. Retrospective application is required and early application
is permitted. We are currently assessing the effect of this new standard on our consolidated 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), Compañía Minera Teck Quebrada Blanca S.A. (QB, QBSA or Quebrada Blanca) and Compañía
Minera Teck Carmen de Andacollo (Carmen de Andacollo). Teck Coal Partnership (Teck Coal) was sold as part of our
sale of the steelmaking coal business (Note 5).
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)
in Canada; Antamina (22.5% share) in Peru; Minas de San Nicolás, S.A.P.I. de C.V. (San Nicolás, 87% share) in Mexico
(Note 6(a)); 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).
78
Teck 2024 Annual Report
On January 3, 2024, we completed the sale of a minority stake of our interest in our steelmaking coal business.
On July 11, 2024, we completed the sale of our remaining 77% interest in our steelmaking coal business (Note 5(a)).
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) (Note 5(b)).
All dollar amounts are presented in Canadian dollars unless otherwise specified.
Material Accounting Policies Related to the Steelmaking Coal Business
While the sale of the steelmaking coal business was completed in 2024, balance sheet amounts for 2023 and profit
from discontinued operations for both 2023 and 2024 are presented and disclosed in our consolidated financial
statements. Therefore, we have continued to disclose the material accounting policies that are applicable to the
steelmaking coal business.
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 consolidated 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, and 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 from our steelmaking coal business and Fort Hills
is included as part of profit from discontinued operations.
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.
3. Material Accounting Policy Information (continued)
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
79
Consolidated Financial Statements
Base metal concentrates
For copper, zinc and lead concentrate sales, control of the product generally transfers to the customer when an
individual shipment parcel is loaded onto a carrier accepted by the customer. Additionally, for a minority of copper
concentrate sales, control of the product transfers to the customer when an individual shipment parcel is delivered to
a specified location. 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.
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.
Steelmaking coal sales – presented as profit from discontinued operations
For steelmaking coal sales, 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.
80
Teck 2024 Annual Report
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.
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.
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 refined metals, chemicals
and fertilizers and also for steelmaking coal in the comparative year. 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.
Settlement receivables
Settlement receivables arise from base metal concentrate sales contracts, refined metals sales contracts and also
from average pricing steelmaking coal contracts in the comparative year, 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.
3. Material Accounting Policy Information (continued)
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
81
Consolidated Financial Statements
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.
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.
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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 initially recorded at cost and subsequently measured
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.
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)
1–40 years
• Plant and equipment (smelting operations)
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
3. Material Accounting Policy Information (continued)
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
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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.
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.
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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 our 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, operating costs, capital costs
and, specifically for our mining assets, reserves and resources. 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.
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
three and 20 years.
Research and Innovation
Costs incurred during the research phase are expensed as part of research and innovation.
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.
3. Material Accounting Policy Information (continued)
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
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Consolidated Financial Statements
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.
In the current year, profit from discontinued operations includes the income tax expense related to the gain on sale of
the steelmaking coal business, along with the income and resource taxes attributable to the operations of the
steelmaking coal business until the business was sold.
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.
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.
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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.
We have applied the mandatory temporary exception to the accounting for deferred taxes arising from the
implementation of the Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework
on Base Erosion and Profit Shifting (BEPS) Pillar Two Model Rules.
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.
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
3. Material Accounting Policy Information (continued)
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
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Consolidated Financial Statements
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. The performance metrics for PSUs and PDSUs issued in 2022 and 2023 were 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. The performance metrics for PSUs and PDSUs issued in 2024 were based on a balanced scorecard
with four components, with 40% based on relative shareholder return as compared to our compensation peer group
and 20% related to each of: strategic execution, performance measured against a sustainability progress index, and
the change in five-year average return on capital employed for operating assets. 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 consolidated statements 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.
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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 consolidated financial statements
are outlined below. While the sale of the steelmaking coal business was completed in 2024, balance sheet amounts for
2023 and profit from discontinued operations for both 2023 and 2024 are disclosed in our consolidated financial
statements. Therefore, we have continued to disclose the areas of judgment and estimation uncertainty that are
applicable to the steelmaking coal business.
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, 2024 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, operating results, mine plans and operating plans.
In the third quarter of 2024, as a result of the challenging environment for treatment charges due to a global shortage
of zinc concentrate, continued operating losses, combined with a fire in the electrolytic zinc plant affecting expected
operations in the fourth quarter of 2024, we identified impairment indicators at our Trail Operations cash-generating
unit (Trail CGU) and consequently performed an impairment test (Note 9(a)).
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 (Note 5(a)), we performed an impairment test for our steelmaking coal group of CGUs (Note 9(a)).
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.
We consider several factors when assessing the timing of when assets become available for use, 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.
QB consists of property, plant and equipment that become available for use at different dates. In December of 2023,
the majority of the assets related to QB became available for use. In May of 2024, the shiploading and related
infrastructure at QB became available for use (Note 17(c)). The molybdenum plant at QB is not yet operating at the
level as intended by management and therefore was not available for use as at December 31, 2024.
In June of 2024, the KIVCET boiler at our Trail Operations became available for use.
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
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
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Consolidated Financial Statements
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.
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.
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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).
Assets Held for Sale
Judgment is required in assessing whether certain assets are considered as held for sale as at the balance sheet date.
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 approvals.
b) Sources of Estimation Uncertainty
Impairment Testing
For required impairment testing, 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, mine production, 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 2024
include the long-term zinc price, long-term zinc treatment charges, long-term zinc premiums, U.S. dollar to Canadian
dollar foreign exchange rates, zinc production rates, operating costs, capital costs and discount rate.
Note 9 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 consolidated statements of income (loss) and the resulting carrying values of assets.
For the December 31, 2023 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 5(a)). This included the
present value of the agreed-upon cash proceeds from Glencore plc (Glencore) and Nippon Steel Corporation (NSC),
plus the expected discounted cash flows from the steelmaking coal business until closing of the Glencore transaction.
The most significant assumption was the U.S. dollar to Canadian dollar foreign exchange rate, which was applied to
both the cash receipts and the cash flows until closing. Other significant assumptions included the steelmaking coal
price, mine production and operating costs.
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
4. Areas of Judgment and Estimation Uncertainty (continued)
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
91
Consolidated Financial Statements
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 27). 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 consolidated statements of income (loss) may be affected.
Financial Liability due to Codelco
We have a financial liability for the preferential dividend stream from QBSA to Corporación Nacional del Cobre de Chile
(Codelco) (Note 12). This financial liability is most significantly affected by copper prices and the interest rate on the
subordinated loans provided by us and Sumitomo Metal Mining Co., Ltd. and Sumitomo Corporation (together referred
to as SMM/SC) to QBSA, which affects the timing of when QBSA repays the loans. A floating interest rate is used based
on the Secured Overnight Financing Rate (Term SOFR) plus an applicable margin. To the extent these significant inputs
differ from our estimates, adjustments will be recorded and the consolidated statements of income (loss) will 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 consolidated 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).
5. Sale of Steelmaking Coal Business and Discontinued Operations
a) Sale of steelmaking coal business
On January 3, 2024, we completed the sale of a minority stake of our interest in our steelmaking coal business, EVR,
to NSC and POSCO. NSC acquired a 20% interest in EVR in exchange for its 2.5% interest in the Elkview Operations plus
$1.7 billion (US$1.3 billion) in cash. POSCO exchanged its 2.5% interest in the Elkview Operations and its 20% interest in
the Greenhills Operations for a 3% interest in EVR. These transactions were accounted for as equity transactions with
non-controlling interests, reducing retained earnings by $1.5 billion and increasing non-controlling interests balances.
92
Teck 2024 Annual Report
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
In determining the net assets of EVR to calculate the non-controlling interests and the related adjustment to retained
earnings, we included the steelmaking coal business’ goodwill balance and excluded deferred income tax liabilities
not attributable to the non-controlling interests.
On July 11, 2024, we completed the sale of our remaining 77% interest in EVR to Glencore. We received cash proceeds
of $9.9 billion (US$7.3 billion) and correspondingly derecognized $20 billion of assets (including $17 billion of property,
plant and equipment and $256 million of cash), $8 billion of liabilities (including $2 billion of decommissioning and
restoration provisions) and $3 billion of non-controlling interests related to the steelmaking coal business. This resulted
in a gain (net of taxes of $897 million, which is based on the taxable gain as computed under Canadian tax law) of
approximately $81 million, which is presented in profit from discontinued operations upon closing of this transaction.
Settlements of customary closing adjustments were recorded as part of discontinued operations.
Pursuant to the terms of the steelmaking coal business sale transaction, Teck agreed to indemnify Glencore for a
portion of certain water related liabilities. On July 10, 2024, the Public Prosecution Service of Canada charged Teck
Coal Limited with five counts of violating s.36(3) of the Fisheries Act. Glencore has notified Teck that it is seeking
indemnification with respect to liabilities arising out of these charges.
The agreement to sell the steelmaking coal business was announced in the fourth quarter of 2023. The NSC and
POSCO portions of the transaction closed on January 3, 2024, subsequent to the end of 2023, as noted above.
However, the closing of the sale of the majority interest in EVR to Glencore remained subject to receipt of competition
approvals in several jurisdictions and subject to approval under the Investment Canada Act at December 31, 2023. The
timing and outcome of these processes was not known with sufficient certainty at the time and as such, we were not
in a position to conclude that receipt of the required approvals, and resulting closing of the transaction, was highly
probable. Accordingly, we determined that the steelmaking coal business did not meet the criteria to be classified as
held for sale at December 31, 2023.
b) Results of discontinued operations
Results of discontinued operations of the steelmaking coal business for 2024 are shown below.
5. Sale of Steelmaking Coal Business and Discontinued Operations (continued)
(CAD$ in millions)
2024
Steelmaking
Coal
Revenue
$
4,640
Cost of sales
(2,718)
Gross profit
1,922
Other operating income (expenses)
(252)
Net finance expense
(63)
Non-operating income
24
Profit from discontinued operations before taxes
1,631
Provision for income taxes
(506)
Profit from discontinued operations after taxes
1,125
Gain on sale (net of tax expense of $897)
81
Profit from discontinued operations
$
1,206
Profit from discontinued operations attributable to:
Shareholders of the company
$
873
Non-controlling interests
333
Profit from discontinued operations
$
1,206
93
Consolidated Financial Statements
On February 2, 2023, we completed the sale of our 21.3% interest in Fort Hills and associated downstream assets to
Suncor and TEPCA. We accounted for this transaction in 2023 by recognizing aggregate cash proceeds of approximately
$1 billion from Suncor and TEPCA and a financial liability related to a downstream pipeline take-or-pay toll commitment
estimated at $269 million on closing. The current portion of this financial liability 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
other liabilities.
Upon completion of the sale of our interest in Fort Hills, we derecognized approximately $1.3 billion of assets that primarily
related to property, plant and equipment and $454 million of liabilities, the majority of which related to lease liabilities.
Results of discontinued operations of the steelmaking coal and Fort Hills disposal groups for 2023 are shown below.
As the sale of Fort Hills was completed in February 2023, there were no results of discontinued operations for the
Fort Hills disposal group during the year ended December 31, 2024.
In 2023, there was a major customer in the steelmaking coal business with revenue of approximately $1.5 billion that
represented more than 10% of total revenue.
(CAD$ in millions)
2023
Steelmaking
Coal
Fort Hills
Total
Revenue
$
8,535
$
143
$
8,678
Cost of sales
(4,504)
(161)
(4,665)
Gross profit (loss)
4,031
(18)
4,013
Other operating income (expenses)
117
–
117
Net finance expense
(112)
(2)
(114)
Non-operating expense
(17)
–
(17)
Profit (loss) from discontinued operations before taxes
4,019
(20)
3,999
Recovery of (provision for) income taxes
(1,373)
2
(1,371)
Profit (loss) from discontinued operations after taxes
2,646
(18)
2,628
Loss on sale (net of tax expense of $4)
–
(8)
(8)
Profit (loss) from discontinued operations
$
2,646
$
(26)
$
2,620
Profit (loss) from discontinued operations attributable to:
Shareholders of the company
$
2,553
$
(26)
$
2,527
Non-controlling interests
93
–
93
Profit (loss) from discontinued operations
$
2,646
$
(26)
$
2,620
94
Teck 2024 Annual Report
6. Transactions
a) 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 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, 2024, we had 87% (2023 – 91%) and Agnico Eagle had 13% (2023 – 9%) of share ownership.
In 2024, we recognized a gain of $31 million in other operating income (expense) (Note 10), attributable to Agnico Eagle’s
incremental contributions. In 2023, we recognized a gain of $5 million in other operating income (expense) (Note 10),
attributable to Agnico Eagle’s initial and incremental contributions.
b) Quintette Sale Transaction – 2023
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 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).
c) Mesaba Arrangement – 2023
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 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
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
95
Consolidated Financial Statements
in a non-cash investing transaction. We 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 35).
We recognized a pre-tax gain of approximately $191 million ($142 million post-tax) in other operating income (expense)
upon closing of this transaction (Note 10). The gain was determined by calculating 50% of the fair value of the NorthMet
project contributed by PolyMet, less 50% of the carrying value of the Mesaba mineral deposit contributed by Teck.
7. Revenue
a) Total Revenue by Major Product Type and Reportable Segment
The following table shows our revenue disaggregated by major product type and by reportable segment (Note 33).
A reportable segment can have revenue from more than one commodity, as it can include an operation that produces
more than one product. Intra-segment revenue is accounted for at current market prices as if the sales were made to
arm’s-length parties and are eliminated on consolidation.
As a result of the sale of our steelmaking coal business in July of 2024 and the sale of our 21.3% interest in Fort Hills
and associated downstream assets in 2023, we no longer present the associated revenue in the tables below.
Revenue related to the steelmaking coal business and Fort Hills are disclosed in Note 5, Sale of Steelmaking Coal
Business and Discontinued Operations.
(CAD$ in millions)
2024
Copper
Zinc
Total
Copper
$
5,035
$
–
$
5,035
Zinc
183
2,743
2,926
Silver
89
503
592
Lead
1
421
422
Molybdenum
186
–
186
Other
48
403
451
Intra-segment
–
(547)
(547)
$
5,542
$
3,523
$
9,065
(CAD$ in millions)
2023
Copper
Zinc
Total
Copper
$
3,016
$
–
$
3,016
Zinc
257
2,443
2,700
Silver
44
414
458
Lead
2
386
388
Molybdenum
85
–
85
Other
21
351
372
Intra-segment
–
(543)
(543)
$
3,425
$
3,051
$
6,476
96
Teck 2024 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.
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
No customer accounted for more than 10% of total revenue in 2023 and 2024.
7. Revenue (continued)
(CAD$ in millions)
2024
2023
Asia
China
$
2,669
$
1,873
Japan
1,095
766
South Korea
870
407
India
452
216
Other
250
119
Americas
United States
1,285
1,312
Canada
642
614
Chile
615
266
Other
8
9
Europe
Germany
410
279
Spain
326
250
Bulgaria
170
80
Finland
118
82
Belgium
92
140
Other
63
63
$
9,065
$
6,476
97
Consolidated Financial Statements
9. Asset and Goodwill Impairment Testing
a) Impairment Testing
Trail CGU – 2024
In the third quarter of 2024, as a result of the challenging environment for treatment charges due to a global shortage
of zinc concentrate, continued operating losses, combined with a fire in the electrolytic zinc plant affecting expected
operations in the fourth quarter of 2024, we identified impairment indicators at our Trail Operations cash-generating
unit (Trail CGU) and consequently performed an impairment test. Using a discounted cash flow model to estimate the
FVLCD, the estimated post-tax recoverable amount of the Trail CGU of $666 million was lower than our carrying value.
As a result, we recorded a non-cash, pre-tax asset impairment for our Trail CGU of $1.1 billion (after-tax $828 million).
The impairment affected the profit (loss) of our zinc reportable segment and our corporate activities (Note 33).
Key assumptions used in the analysis included the long-term zinc price, long-term zinc treatment charges, long-term
zinc premiums, U.S. dollar to Canadian dollar foreign exchange rates, zinc production rates, operating costs,
capital costs and discount rate. The discount rate used was 5.5%. The FVLCD estimates are classified as a Level 3
measurement within the fair value measurement hierarchy (Note 35).
8. Expenses by Nature
(CAD$ in millions)
2024
2023
Employment-related costs:
Wages and salaries
$
910
$
891
Employee benefits and other wage-related costs
196
190
Bonus payments
217
205
Post-employment benefits and pension costs
84
81
1,407
1,367
Transportation
546
440
Depreciation and amortization
1,679
884
Raw material purchases
755
601
Fuel and energy
875
758
Operating supplies consumed
646
507
Maintenance and repair supplies
610
529
Contractors and consultants
1,003
926
Overhead costs
439
247
Royalties
466
285
Other operating costs net of recoveries
(12)
(72)
8,414
6,472
Adjusted for:
Capitalized production stripping costs
(373)
(455)
Change in inventory
(171)
(154)
Total cost of sales, general and administration,
exploration and research and innovation expenses
$
7,870
$
5,863
98
Teck 2024 Annual Report
Steelmaking Coal Group of CGUs – 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 impairment test for our steelmaking coal group of CGUs. We estimated the recoverable
amount based on the consideration expected to be received from the sale transactions (Note 5(a)). 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 updated applicable assumptions including the steelmaking coal price, mine production 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. The FVLCD estimates were classified as a Level 3 measurement
within the fair value measurement hierarchy (Note 35).
In isolation, a $0.01 strengthening in the Canadian dollar would have resulted in the recoverable amount being
approximately equal to the carrying amount at December 31, 2023.
b) Annual Goodwill Impairment Testing – Quebrada Blanca CGU
Our Quebrada Blanca CGU has goodwill allocated to it (Note 19). We performed our annual goodwill impairment testing
at October 31, 2024, 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 47 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.
Sensitivity Analysis
The recoverable amount of our Quebrada Blanca CGU exceeded the carrying amount by approximately US$1.8 billion
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$0.38 decrease in the
long-term real copper price per pound, or a 110 basis points increase in the discount rate would result in the recoverable
amount of Quebrada Blanca being equal to its carrying value.
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.
Quebrada Blanca CGU Goodwill Impairment Assumptions
The following are the key assumptions used in our Quebrada Blanca CGU impairment testing calculations for the years
ended December 31, 2024 and 2023.
Commodity Price Assumptions
A long-term real copper price per pound in 2029 of US$4.20 (2023 – long-term real copper price per pound in 2028 of
US$3.90) was used in preparing the discounted cash flow model.
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.
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
9. Asset and Goodwill Impairment Testing (continued)
99
Consolidated Financial Statements
Discount Rates
A discount rate of 7.0% (2023 – 7.0%) was used in preparing the discounted cash flow model. Discount rates are based on
market participant mining weighted average costs of capital adjusted for risks specific to the asset, where appropriate.
Reserves and Resources and Mine 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.
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 and internal management forecasts. Cost
estimates incorporate management experience and expertise, current operating costs, the nature and location of the
operation, and the risks associated with the 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
Estimates used in calculating the recoverable amount are classified as Level 3 measurements within the fair value
measurement hierarchy (Note 35).
10. Other Operating Income (Expense)
(CAD$ in millions)
2024
2023
Settlement pricing adjustments (Note 34(b))
$
65
$
7
Share-based compensation (Note 29(e))
(91)
(81)
Environmental costs and remeasurement of decommissioning and restoration
provisions for closed operations
–
(119)
Care and maintenance costs
(51)
(39)
Social responsibility and donations
(59)
(62)
Gain on disposal or contribution of assets
27
183
Impairment of intangible assets
(37)
(88)
Commodity derivatives
90
(12)
Depreciation of corporate assets
(47)
(41)
Take-or-pay contract costs
(10)
(30)
Other
(38)
(109)
$
(151)
$
(391)
100
Teck 2024 Annual Report
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
a) QB Variable Consideration to IMSA and Codelco
Variable consideration to IMSA
During the year ended December 31, 2024, we recorded $7 million (2023 – $4 million) of expense (Note 34(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 for the year. 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.
Commencement of commercial production occurred in March of 2024, which reduced our cumulative maximum
payment to US$97 million. Based on our estimate that the future average copper prices will exceed the US$3.15 per
pound threshold in the next three years, the fair value of the derivative financial liability is $132 million (2023 – $115
million) as at December 31, 2024.
The fair value of the IMSA liability is calculated using a discounted cash flow method based on quoted market prices and
is considered a Level 2 fair value measurement with significant observable inputs on the fair value hierarchy (Note 35).
12. Non-Operating Income (Expense)
(CAD$ in millions)
2024
2023
QB variable consideration to IMSA and Codelco (a)
$
(51)
$
(156)
Foreign exchange gains
146
9
Downstream pipeline take-or-pay toll commitment
(10)
(40)
Other
(78)
(62)
$
7
$
(249)
11. Finance Income and Finance Expense
(CAD$ in millions)
2024
2023
Finance income
Investment income
$
228
$
95
Accretion on long-term receivables
6
15
Total finance income
$
234
$
110
Finance expense
Debt interest
$
175
$
233
Interest on QB project financing
224
245
Interest on advances from SMM/SC
351
259
Interest on lease liabilities
49
21
Letters of credit and standby fees
28
31
Accretion on decommissioning and restoration provisions
121
96
Accretion on other liabilities
42
33
Other
29
22
1,019
940
Less capitalized borrowing costs (Note 17)
(66)
(780)
Total finance expense
$
953
$
160
101
Consolidated Financial Statements
The current portion of the financial liability is $72 million (2023 – $nil) recorded in trade accounts payable and other
liabilities (Note 21). The non-current portion is $60 million (2023 – $115 million) recorded in other liabilities (Note 28).
Variable consideration to Codelco
During the year ended December 31, 2024, we recorded $44 million (2023 – $152 million) of expense related to changes
in the carrying value of the financial liability for the preferential dividend stream from QBSA to Codelco. The financial
liability was previously owed to Empresa Nacional de Minería (ENAMI) but is now owed to Codelco, subsequent to
Codelco’s acquisition of ENAMI’s 10% interest in QBSA during 2024. As at December 31, 2024, the carrying value of this
financial liability, which is measured at amortized cost, is $548 million (2023 – $444 million) (Note 28). 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 value of the financial liability
is approximated by its carrying value, and is considered a Level 3 fair value measurement with significant unobservable
inputs in the fair value hierarchy (Note 35).
The net proceeds from the sale of the steelmaking coal business totaled $9.5 billion, including $9.9 billion in cash
proceeds, net of $257 million in disposed cash and cash equivalents, and a $160 million payment for customary
closing adjustments.
Cash and cash equivalents as at December 31, 2024 include $165 million (2023 – $167 million) held in QBSA. These cash
and cash equivalent balances are to be used within QBSA and cannot be transferred to other entities within the group.
Cash flow from operating activities
Cash flow from investing activities
(CAD$ in millions)
2024
2023
Net change in non-cash working capital items
Trade and settlement receivables
$
(347)
$
(123)
Inventories
(374)
(439)
Prepaids and other current assets
(29)
(253)
Trade accounts payable and other liabilities
474
272
$
(276)
$
(543)
(CAD$ in millions)
2024
2023
Net proceeds from sale of discontinued operations and other
Net proceeds from sale of steelmaking coal business
$
9,483
$
–
Proceeds from sale of Fort Hills
–
1,014
Proceeds from other assets
55
34
$
9,538
$
1,048
13. Supplemental Cash Flow Information
December 31,
December 31,
(CAD$ in millions)
2024
2023
Cash and cash equivalents
Cash
$
2,343
$
399
Investments with maturities from the date of acquisition of three months or less
5,244
345
$
7,587
$
744
102
Teck 2024 Annual Report
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
Cost of sales of $7.5 billion (2023 – $5.4 billion) includes $6.3 billion (2023 – $4.7 billion) of production costs that were
recognized as part of inventories and subsequently expensed when sold during the year.
No inventories were held at net realizable value as at December 31, 2024 (2023 – $49 million were held at net realizable
value). Total inventory write-downs in 2024 were $42 million (2023 – $26 million) and were included as part of cost of sales.
Non-current inventories consist of ore stockpiles and other in-process materials that are not expected to be sold
within one year.
16. Investment in Joint Venture
In August 2015, Teck and Newmont Corporation (Newmont) announced an agreement to combine their respective
Relincho and El Morro projects, located approximately 40 kilometres apart in the Huasco Province in the Atacama
Region of Chile, into a single project. The combined project is a joint arrangement that is structured through a separate
vehicle, classified as a joint venture named NuevaUnión, where Teck and Newmont each own 50%. The net assets of
the NuevaUnión joint venture substantially relate to exploration and evaluation assets.
(CAD$ in millions)
NuevaUnión
At January 1, 2023
$
1,139
Contributions
2
Changes in foreign exchange rates
(27)
Share of profit
2
At December 31, 2023
$
1,116
Contributions
5
Changes in foreign exchange rates
99
Share of profit
3
At December 31, 2024
$
1,223
15. Financial Assets
December 31,
December 31,
(CAD$ in millions)
2024
2023
Non-current receivables and deposits
$
108
$
207
Marketable equity and debt securities carried at fair value
513
397
Derivative assets
143
68
$
764
$
672
14. Inventories
December 31,
December 31,
(CAD$ in millions)
2024
2023
Supplies
$
1,235
$
1,318
Raw materials
260
277
Work in process
774
1,046
Finished products
636
655
2,905
3,296
Less non-current portion (Note 20)
(307)
(350)
$
2,598
$
2,946
103
Consolidated Financial Statements
17. Property, Plant and Equipment
Land, Capitalized
Exploration
Buildings, Production
and
Mineral
Plant and
Stripping Construction
(CAD$ in millions)
Evaluation
Properties
Equipment
Costs
In Progress
Total
At January 1, 2023
Cost
$
991
$ 20,364
$ 18,514
$
8,596
$
14,270
$ 62,735
Accumulated depreciation
–
(7,074)
(10,218)
(5,348)
–
(22,640)
Net book value
$
991
$ 13,290
$
8,296
$
3,248
$ 14,270
$ 40,095
Year ended December 31, 2023
Opening net book value
$
991
$ 13,290
$
8,296
$
3,248
$
14,270
$ 40,095
Additions
619
198
864
1,198
3,631
6,510
Disposals
(12)
(2)
(34)
–
(7)
(55)
Depreciation and amortization
–
(377)
(964)
(739)
–
(2,080)
Transfers between classifications (c)
–
324
13,787
–
(14,111)
–
Changes in decommissioning,
restoration and other provisions
(7)
926
18
–
(6)
931
Capitalized borrowing costs
(Note 11)
–
–
–
–
780
780
Changes in foreign exchange rates
(26)
(89)
(280)
(25)
(196)
(616)
Closing net book value
$
1,565
$ 14,270
$ 21,687
$
3,682
$
4,361
$ 45,565
At December 31, 2023
Cost
$
1,565
$ 20,693
$ 32,532
$
9,738
$
4,361
$ 68,889
Accumulated depreciation
–
(6,423)
(10,845)
(6,056)
–
(23,324)
Net book value
$
1,565
$ 14,270
$ 21,687
$
3,682
$
4,361
$ 45,565
Year ended December 31, 2024
Opening net book value
$
1,565
$ 14,270
$ 21,687
$
3,682
$
4,361
$ 45,565
Additions
315
1
533
846
1,447
3,142
Disposals
(7)
(4)
(50)
–
(2)
(63)
Change from the NSC/POSCO
transaction (Note 5)
–
115
105
83
39
342
Sale of steelmaking coal
business (Note 5)
–
(9,609)
(4,214)
(2,090)
(1,360)
(17,273)
Asset impairment
–
–
(961)
–
(54)
(1,015)
Depreciation and amortization
–
(396)
(1,459)
(586)
–
(2,441)
Transfers between classifications (c)
–
106
3,217
–
(3,323)
–
Changes in decommissioning,
restoration and other provisions
–
39
(9)
–
–
30
Capitalized borrowing costs
(Note 11)
–
–
–
–
66
66
Changes in foreign exchange rates
82
357
1,500
95
181
2,215
Closing net book value
$
1,955
$
4,879
$ 20,349
$
2,030
$
1,355
$ 30,568
At December 31, 2024
Cost
$
1,955
$
6,988
$ 29,313
$
4,417
$
1,355
$ 44,028
Accumulated depreciation
–
(2,109)
(8,964)
(2,387)
–
(13,460)
Net book value
$
1,955
$
4,879
$ 20,349
$
2,030
$
1,355
$ 30,568
104
Teck 2024 Annual Report
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
a) Exploration and Evaluation
Significant exploration and evaluation projects in property, plant and equipment include the Highland Valley Copper
Mine Life Extension, Aktigiruq-Anarraaq extension at Red Dog, Galore Creek, Zafranal, San Nicolás and NewRange.
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 2024 was 7.4% (2023 – 5.8%).
c) Transfers Between Classifications
Of the $14.1 billion in transfers in 2023, the largest component related to QB assets which became available for use in
December of 2023. Of the $3.3 billion in transfers in 2024, the largest component related to QB assets which became
available for use in May of 2024.
17. Property, Plant and Equipment (continued)
105
Consolidated Financial Statements
The $75 million impairment in 2024 includes $38 million that was presented as part of asset impairment expense
related to the impairment of the Trail CGU (Note 9(a)).
18. Intangible Assets
(CAD$ in millions)
Total
At January 1, 2023
Cost
$
525
Accumulated amortization and impairment
(125)
Net book value
$
400
Year ended December 31, 2023
Opening net book value
$
400
Additions – internal development
83
Amortization
(50)
Impairment
(88)
Closing net book value
$
345
At December 31, 2023
Cost
$
608
Accumulated amortization and impairment
(263)
Net book value
$
345
Year ended December 31, 2024
Opening net book value
$
345
Additions – internal development
17
Amortization
(43)
Impairment
(75)
Change in foreign exchange rates
3
Sale of steelmaking coal business
(51)
Closing net book value
$
196
At December 31, 2024
Cost
$
577
Accumulated amortization and impairment
(381)
Net book value
$
196
106
Teck 2024 Annual Report
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
The results of our annual goodwill impairment analysis and key assumptions used are outlined in Note 9(b) for the
Quebrada Blanca CGU.
Goodwill relating to the steelmaking coal group of CGUs was derecognized upon completion of the sale of the
steelmaking coal business in July of 2024 (Note 5).
21. Trade Accounts Payable and Other Liabilities
December 31,
December 31,
(CAD$ in millions)
2024
2023
Trade accounts payable and accruals
$
1,547
$
2,310
Commercial and government royalties
546
252
Payroll-related liabilities
318
351
QB variable consideration to IMSA (Note 12(a))
72
–
Settlement payables (Note 34(b))
70
36
Accrued interest
55
101
Capital project accruals
39
416
Current portion of downstream pipeline take-or-pay toll commitment
32
29
Contract liabilities – consignment sales
–
27
Other
56
132
$
2,735
$
3,654
20. Other Assets
December 31,
December 31,
(CAD$ in millions)
2024
2023
Pension plans in a net asset position (Note 26(a))
$
320
$
446
Non-current portion of inventories (Note 14)
307
350
Other
71
61
$
698
$
857
19. Goodwill
Steelmaking
Quebrada
(CAD$ in millions)
Coal Business
Blanca
Total
At January 1, 2023
$
702
$
416
$
1,118
Changes in foreign exchange rates
–
(10)
(10)
At December 31, 2023
$
702
$
406
$
1,108
Changes in foreign exchange rates
–
36
36
Sale of steelmaking coal business
(702)
–
(702)
At December 31, 2024
$
–
$
442
$
442
107
Consolidated Financial Statements
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 35).
a) Long-Term Notes
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 2024, we purchased US$1.4 billion aggregate principal amount of our outstanding term notes pursuant to the
cash tender offers made on July 4, 2024, and through open market purchases in the third and fourth quarters of 2024.
The total principal amount of the notes purchased comprised US$360 million of the 3.9% notes due 2030, US$149
million of the 6.125% notes due 2035, US$279 million of the 6.0% notes due 2040, US$151 million of the 6.25% notes
due 2041, US$228 million of the 5.2% notes due 2042 and US$259 million of the 5.4% notes due 2043. The total cash
cost of the purchases was $2.0 billion (US$1.4 billion), which was funded from cash on hand.
In February 2023, we redeemed the 3.75% notes due 2023 at maturity for $144 million (US$108 million) plus accrued
interest.
Certain of our notes are subject to a change of control provision requiring repurchase in the event a downgrade follows
a change of control. Our notes are also subject to covenants regarding liens on certain assets and certain restricted
subsidiaries, and to customary events of default, including non-payment of principal and interest, bankruptcy or
insolvency, covenant non-compliance, material final judgments, or other material indebtedness becoming due prior
to maturity as a result of a default. An unremedied event of default may result in an acceleration of the repayment of
the notes, causing them to become due and payable ahead of scheduled maturity.
22. Debt
($ in millions)
December 31, 2024
December 31, 2023
Face
Fair
Carrying
Face
Fair
Carrying
Value
Value
Value
Value
Value
Value
(US$)
(CAD$) (CAD$)
(US$)
(CAD$)
(CAD$)
3.9% notes due July 2030 (a)
$
143
$
196
$
204
$
503
$
621
$
658
6.125% notes due October 2035 (a)
187
273
266
336
467
439
6.0% notes due August 2040 (a)
194
273
278
473
642
624
6.25% notes due July 2041 (a)
245
350
349
396
544
519
5.2% notes due March 2042 (a)
167
212
237
395
488
516
5.4% notes due February 2043 (a)
108
141
154
367
466
481
1,044
1,445
1,488
2,470
3,228
3,237
QB project financing facility (b)
1,912
2,847
2,719
2,206
2,979
2,873
Carmen de Andacollo short-term
loans (c)
–
–
–
95
126
126
Antamina loan agreement (d)
225
324
324
225
298
298
$ 3,181
$ 4,616
$ 4,531
$ 4,996
$ 6,631
$ 6,534
Less current portion of debt
(294)
(423)
(423)
(389)
(515)
(515)
$ 2,887
$ 4,193
$ 4,108
$ 4,607
$ 6,116
$ 6,019
108
Teck 2024 Annual Report
b) QB Project Financing Facility
As at December 31, 2024, the limited recourse QB project financing facility had a balance of US$1.9 billion. Amounts
drawn under the facility bear interest at Term SOFR plus applicable margins that vary over time. The facility is being
repaid in 17 equal semi-annual instalments of US$147 million, which began on June 15, 2023. The facility is guaranteed
pre-final 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 QB project assets.
The guarantees of Teck and SMM/SC will terminate once final completion, as defined under the facility, has been
achieved. The facility is subject to customary project financing covenants and terms, including with respect to granting
security in assets and accounts, maintenance of insurance, periodic reporting, restrictions on certain activities (such
as incurring additional debt beyond agreed thresholds), and other operational covenants. Breach of the project finance
covenants, or failure to reach final completion by the final completion date in June 2025, could lead to enforcement
action by the project lenders, including the acceleration of repayment of the facility, among other consequences. The
project has completed and submitted certificates for a majority of the completion tests, including the technical and
operating completion tests, with the remaining tests being procedural in nature.
c) Carmen de Andacollo Short-Term Loans
As at December 31, 2024, all fixed rate short-term loans at Carmen de Andacollo were fully repaid.
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, 2024.
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 shareholders
and matures in 2026.
e) Revolving Credit Facilities
Effective October 18, 2024, we reduced the US$4.0 billion sustainability-linked revolving credit facility maturing
October 2026 by US$1.0 billion to US$3.0 billion and we extended this facility for a five-year term to October 2029.
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, 2024, 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. This facility requires our total
net debt-to-capitalization ratio to not exceed 0.60 to 1.0 (Note 36). Following the sale of the steelmaking coal business
in July 2024, cash and cash equivalents have increased significantly and as a result, our cash balances were greater
than our debt balances at December 31, 2024. Therefore, we do not exceed the required net debt-to-capitalization
ratio. 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.
In addition to that financial covenant, the facility is subject to customary covenants including limits on subsidiary debt,
change of control repayment requirements, and the prohibition on agreements that may restrict subsidiary dividend
payments or loan repayments to Teck. Breach of these covenants could lead to an inability to borrow under the facility,
or an enforcement action by lenders, including accelerating any outstanding debt repayment.
We maintain uncommitted bilateral credit facilities primarily for the issuance of letters of credit to support our future
reclamation obligations. As at December 31, 2024, we had $1.5 billion (2023 – $2.6 billion) of letters of credit outstanding.
We also had $441 million (2023 – $1.2 billion) in surety bonds outstanding at December 31, 2024 to support current and
future reclamation obligations. At December 31, 2023, $1.5 billion of the outstanding letters of credit and $758 million
of the outstanding surety bonds were related to EVR. These were cancelled in conjunction with the closing of the sale
of our steelmaking coal business on July 11, 2024 (Note 5).
22 . Debt (continued)
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
109
Consolidated Financial Statements
23. 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, 2024, the related lease liability was $89 million (2023 – $85 million).
QBSA entered into a contract with Transelec S.A. to lease an electrical power transmission system to connect the QB
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$23 million per year, escalating by 2.2% annually.
As at December 31, 2024, the related lease liability was $465 million (2023 – $428 million). The corresponding right-of-use
asset was $466 million (2023 – $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, 2024, $1.0 billion (2023 – $1.1 billion) of
right-of-use assets are recorded as part of land, buildings, plant and equipment within property, plant and equipment.
f) Scheduled Principal Payments
At December 31, 2024, scheduled principal payments during the next five years and thereafter are as follows:
CAD$
($ in millions)
US$
Equivalent
2025
$
294
$
423
2026
519
747
2027
294
423
2028
294
423
2029
294
423
Thereafter
1,486
2,138
$
3,181
$
4,577
g) Debt Continuity
($ in millions)
US$
CAD$ Equivalent
2024
2023
2024
2023
At January 1
$
4,940
$
5,292
$
6,534
$
7,167
Cash flows
Proceeds from debt
56
170
77
230
Redemption, purchase or repayment of debt
(1,870)
(530)
(2,544)
(710)
Non-cash changes
Gain on debt redemption or purchase
(4)
–
(5)
–
Changes in foreign exchange rates
–
–
458
(164)
Finance fees, discount amortization and other
27
8
11
11
At December 31
$
3,149
$
4,940
$
4,531
$
6,534
110
Teck 2024 Annual Report
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
23. Leases (continued)
24. QB Advances from SMM/SC
In conjunction with the subscription arrangement with SMM/SC in 2019, QBSA entered into a subordinated loan facility
agreement with SMM/SC to advance QBSA up to US$1.3 billion. QBSA subsequently entered into four additional
subordinated loan facility agreements with SMM/SC to advance QBSA an additional US$2.0 billion. The four additional
subordinated loan facilities contain similar terms to the original subordinated loan facility. The advances for all five
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, 2024, US$3.1 billion was
outstanding and US$141 million remained undrawn.
($ in millions)
December 31, 2024
December 31, 2023
Face
Fair
Carrying
Face
Fair
Carrying
Value
Value
Value
Value
Value
Value
(US$)
(CAD$) (CAD$)
(US$)
(CAD$)
(CAD$)
QB advances from SMM/SC
$ 3,136
$ 4,707
$ 4,483
$ 2,661
$ 3,589
$ 3,497
(CAD$ in millions)
2024
2023
At January 1
$
1,061
$
571
Cash flows
Principal payments
(120)
(160)
Interest payments
(52)
(31)
Non-cash changes
Additions
182
674
Interest expense
49
31
Changes in foreign exchange rates and other
40
(24)
Sale of steelmaking coal business
(209)
–
At December 31
$
951
$
1,061
Less current portion of lease liabilities
(175)
(195)
Non-current lease liabilities
$
776
$
866
(CAD$ in millions)
2024
2023
Opening net book value
$
1,108
$
612
Additions
187
673
Depreciation
(137)
(147)
Changes in foreign exchange rates and other
49
(30)
Sale of steelmaking coal business
(196)
–
Closing net book value
$
1,011
$
1,108
c) Lease Liability Continuity
111
Consolidated Financial Statements
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 35).
a) QB Advances from SMM/SC Carrying Value Continuity
($ in millions)
US$
CAD$ Equivalent
2024
2023
2024
2023
At January 1
$
2,644
$
1,683
$
3,497
$
2,279
Cash flows
Advances
471
960
652
1,292
Non-cash changes
Finance fee amortization
1
1
1
1
Changes in foreign exchange rates
–
–
333
(75)
At December 31
$
3,116
$
2,644
$
4,483
$
3,497
25. Income Taxes
a) Tax Rate Reconciliation to the Canadian Statutory Income Tax Rate
(CAD$ in millions)
2024
2023
Loss from continuing operations before taxes
$
(718)
$
(75)
Profit from discontinued operations (Note 5)
1,631
3,999
Gain (loss) on sale of discontinued operations (Note 5)
978
(4)
Profit for the year from continuing and discontinued operations before taxes
$
1,891
$
3,920
Tax expense at the Canadian statutory income tax rate of 27%
$
511
$
1,057
Tax effect of:
Resource taxes
229
419
Resource and depletion allowances
(67)
(64)
Non-deductible expenses (non-taxable income)
(20)
42
Derecognition of deferred tax assets
206
8
Remeasurement of deferred Chilean mining royalty liability (f)
88
106
Difference in tax rates in foreign jurisdictions
82
48
Revisions to prior year estimates
11
17
Non-controlling interests
(77)
(25)
Effect from sale of discontinued operations
633
2
Other
12
2
Total income taxes from continuing and discontinued operations
$
1,608
$
1,612
Represented by:
Current income taxes
1,594
2,228
Deferred income taxes
14
(616)
Total income taxes from continuing and discontinued operations
$
1,608
$
1,612
Provision for income taxes from continuing operations
205
237
Provision for income taxes from discontinued operations
1,403
1,375
Total income taxes from continuing and discontinued operations
$
1,608
$
1,612
Current income taxes are accrued and paid in all jurisdictions in which we operate.
112
Teck 2024 Annual Report
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
25. Income Taxes (continued)
c) Deferred Tax Assets and Liabilities Not Recognized
We have not recognized $59 million (2023 – $57 million) of deferred tax assets associated with unused tax credits and
tax pools in entities and jurisdictions that do not have established sources of taxable income.
b) Continuity of Deferred Tax Assets and Liabilities
Sale of
Through
Steelmaking
January 1,
Profit
Through
Coal December 31,
(CAD$ in millions)
2024
(Loss)
OCI
Transfer
Business
2024
Net operating loss and
capital loss carryforwards
$
61
$
536
$
66
$
509
$
–
$
1,172
Property, plant and equipment
(167)
(10)
(116)
(521)
–
(814)
Decommissioning and
restoration provisions
167
(77)
(2)
39
–
127
Other temporary
differences (TDs)
4
70
70
(57)
–
87
Deferred income tax assets
$
65
$
519
$
18
$
(30)
$
–
$
572
Net operating loss and
capital loss carryforwards
$
(652)
$
140
$
–
$
509
$
1
$
(2)
Property, plant and equipment
7,894
166
112
(521)
(4,482)
3,169
Decommissioning and
restoration provisions
(1,167)
13
(20)
39
(48)
(1,183)
Unrealized foreign exchange
(75)
41
(7)
–
–
(41)
Withholding taxes
116
25
10
–
–
151
Inventories
161
9
(1)
5
19
193
Partnership income
deferral and other TDs
(89)
139
23
(62)
(5)
6
Deferred income tax liabilities
$ 6,188
$
533
$
117
$
(30)
$ (4,515)
$
2,293
Through
January 1,
Profit
Through
Sale of December 31,
(CAD$ in millions)
2023
(Loss)
OCI
Fort Hills
2023
Net operating loss and capital loss
carryforwards
$
48
$
13
$
–
$
–
$
61
Property, plant and equipment
(165)
(2)
–
–
(167)
Decommissioning and restoration provisions
155
12
–
–
167
Other TDs
37
(21)
(12)
–
4
Deferred income tax assets
$
75
$
2
$
(12)
$
–
$
65
Net operating loss and capital loss
carryforwards
$
(458)
$
(205)
$
11
$
–
$
(652)
Property, plant and equipment
7,234
638
(46)
68
7,894
Decommissioning and restoration provisions
(803)
(371)
7
–
(1,167)
Unrealized foreign exchange
(91)
7
9
–
(75)
Withholding taxes
133
(14)
(3)
–
116
Inventories
148
10
3
–
161
Partnership income deferral and other TDs
615
(754)
50
–
(89)
Deferred income tax liabilities
$
6,778
$
(689)
$
31
$
68
$
6,188
113
Consolidated Financial Statements
In 2024, as a result of the sale of our steelmaking coal business and the impairment of our Trail Operations, we have
derecognized deferred tax assets of $206 million to the extent that it is not probable that future taxable profits will
be available against which deductible temporary differences can be utilized.
Deferred tax liabilities of approximately $905 million (2023 – $836 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, 2024, we had $147 million (2023 – $282 million) of Canadian net operating loss carryforwards and
$4.2 billion (2023 – $1.9 billion) of Chilean net operating losses, which have an indefinite carryforward period. Deferred
tax benefits of $1.2 billion (2023 – $713 million) related to these tax pools have 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 Chilean mining royalty regime on copper revenues and operating profit, which was enacted into law in 2023, will
apply to Carmen de Andacollo and Quebrada Blanca after their respective tax stability agreements expire in 2027 and
2037. During the year, we recognized a deferred tax expense of $88 million (2023 – $106 million) associated with future
taxable temporary differences that are expected to reverse under the new royalty regime beyond the tax stability period.
g) Pillar Two Model Rules
We are subject to the Global Minimum Tax Act (GMT), Canada’s Pillar Two Tax legislation, which was enacted in June 2024
with effect from January 1, 2024. In 2024, we accrued current income tax expense of $3 million for GMT in respect of
an insurance affiliate in Bermuda. Effective January 1, 2025, Bermuda’s domestic 15% corporate income tax legislation
came into effect. Therefore, we expect our GMT liability going forward to be insignificant.
We applied the mandatory temporary exception to the recognition and disclosure for deferred taxes related to OECD
Pillar Two income taxes under IAS 12, Income Taxes.
26. 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.
114
Teck 2024 Annual Report
26. Retirement Benefit Plans (continued)
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
a) Actuarial Valuation of Plans
A number of the plans have a surplus totalling $195 million at December 31, 2024 (2023 – $191 million), which is not
recognized on the basis that future economic benefits are not available to us in the form of a reduction in future
contributions or a cash refund.
(CAD$ in millions)
2024
2023
Defined
Non-Pension
Defined
Non-Pension
Benefit
Post-
Benefit
Post-
Pension
Retirement
Pension
Retirement
Plans
Benefit Plans
Plans
Benefit Plans
Defined benefit obligation
Balance at beginning of year
$
1,929
$
370
$
1,834
$
343
Current service cost
29
16
39
22
Benefits paid
(104)
(28)
(138)
(21)
Interest expense
61
15
90
16
Sale of steelmaking coal business
(599)
(52)
–
–
Obligation experience adjustments
34
(13)
11
(5)
Effect from change in financial assumptions
(5)
(1)
93
14
Effect from change in demographic assumptions
5
–
1
–
Changes in foreign exchange rates
10
–
(1)
1
Balance at end of year
1,360
307
1,929
370
Fair value of plan assets
Fair value at beginning of year
2,491
–
2,371
–
Interest income
80
–
117
–
Return on plan assets, excluding amounts
included in interest income
56
–
115
–
Benefits paid
(104)
(28)
(138)
(21)
Sale of steelmaking coal business
(730)
–
–
–
Contributions by the employer
7
28
28
21
Changes in foreign exchange rates
9
–
(2)
–
Fair value at end of year
1,809
–
2,491
–
Funding surplus (deficit)
449
(307)
562
(370)
Less effect of the asset ceiling
Balance at beginning of year
191
–
390
–
Sale of steelmaking coal business
(45)
–
–
–
Interest on asset ceiling
7
–
19
–
Change in asset ceiling
42
–
(218)
–
Balance at end of year
195
–
191
–
Net accrued retirement benefit asset (liability)
$
254
$
(307)
$
371
$
(370)
Represented by:
Pension assets (Note 20)
$
320
$
–
$
446
$
–
Accrued retirement benefit liability
(66)
(307)
(75)
(370)
Net accrued retirement benefit asset (liability)
$
254
$
(307)
$
371
$
(370)
115
Consolidated Financial Statements
In 2024, pension assets and accrued retirement benefit liabilities related to employees of the steelmaking coal
business were transferred to the purchaser and accordingly, were derecognized (Note 5).
We expect to contribute $5 million to our defined benefit pension plans in 2025 based on minimum funding
requirements. The weighted average duration of the defined benefit pension obligation is 12 years and the weighted
average duration of the non-pension post-retirement benefit obligation is 12 years.
Defined contribution expense for 2024 was $39 million (2023 – $37 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:
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.
2023
Effect on Defined Benefit Obligation
1% Increase in
1% Decrease in
Assumption
Assumption
Discount rate
Decrease by 11%
Increase by 12%
Rate of increase in future compensation
Increase by 1%
Decrease by 1%
Medical cost claim trend rate
Increase by 1%
Decrease by 1%
December 31, 2024
December 31, 2023
Defined
Non-Pension
Defined
Non-Pension
Benefit
Post-
Benefit
Post-
Pension
Retirement
Pension
Retirement
Plans
Benefit Plans
Plans
Benefit Plans
Discount rate
4.60%
4.72%
4.63%
4.64%
Rate of increase in future compensation
3.25%
3.25%
3.25%
3.25%
Medical trend rate
–
5.00%
–
5.00%
c) Sensitivity of the Defined Benefit Obligation to Changes in the Weighted Average Assumptions
2024
Effect on Defined Benefit Obligation
1% Increase in
1% Decrease in
Assumption
Assumption
Discount rate
Decrease by 10%
Increase by 11%
Rate of increase in future compensation
Increase by 0%
Decrease by 0%
Medical cost claim trend rate
Increase by 1%
Decrease by 1%
116
Teck 2024 Annual Report
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:
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.
26. Retirement Benefit Plans (continued)
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
2024
2023
Male
Female
Male
Female
Retiring at the end of the reporting period
85.4 years
87.8 years
85.4 years
87.7 years
Retiring 20 years after the end of the reporting period
86.4 years
88.7 years
86.4 years
88.7 years
117
Consolidated Financial Statements
The defined benefit pension plan assets at December 31, 2024 and 2023 are as follows:
Provisions related to the steelmaking coal business were derecognized upon sale of the business in July of 2024 (Note 5).
During the year ended December 31, 2024, we recorded $35 million (2023 – $36 million) of additional study and
environmental costs arising from legal obligations through other provisions.
(CAD$ in millions)
2024
2023
Quoted
Unquoted
Total %
Quoted
Unquoted
Total %
Equity securities
$
559
$
–
31%
$
829
$
–
33%
Debt securities
$
847
$
–
47%
$
1,138
$
–
46%
Real estate and other
$
100
$
303
22%
$
69
$
455
21%
27. Provisions
(CAD$ in millions)
2024
2023
At December 31
$
2,626
$
4,198
Less current portion of provisions
(187)
(347)
Non-current provisions
$
2,439
$
3,851
The following table summarizes the movements in provisions for the year ended December 31, 2024:
Decommissioning and
Other
(CAD$ in millions)
Restoration Provisions
Provisions
Total
At January 1, 2024
$
3,907
$
291
$
4,198
Settled during the year
(123)
(27)
(150)
Change in discount rate
(397)
–
(397)
Change in amount and timing of cash flows
374
40
414
Accretion
177
5
182
Change from the NSC/POSCO transaction
127
–
127
Sale of steelmaking coal business
(1,828)
(28)
(1,856)
Other
(4)
–
(4)
Changes in foreign exchange rates
95
17
112
At December 31, 2024
$
2,328
$
298
$
2,626
Less current portion of provisions
(149)
(38)
(187)
Non-current provisions
$
2,179
$
260
$
2,439
118
Teck 2024 Annual Report
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 $568 million as at December 31, 2024 (2023 – $990 million, of
which $515 million related to the steelmaking coal business. The provision related to the steelmaking coal business
was derecognized upon sale of the business in July of 2024 (Note 5)).
In 2024, the decommissioning and restoration provisions were calculated using nominal discount rates between 6.33%
and 7.03% (2023 – 5.61% and 7.13%). We also used an inflation rate of 2.00% (2023 – 2.00%) over the long term in our
cash flow estimates. Total decommissioning and restoration provisions include $459 million (2023 – $806 million) in
respect of closed operations.
During the fourth quarter of 2024, our decommissioning and restoration provisions increased by $167 million compared
to the third quarter of 2024. The increase in decommissioning and restoration provisions was due to an increase of
$504 million in reclamation cash flows, primarily related to changes in planned reclamation work and associated cost
estimates at Red Dog, Quebrada Blanca and Antamina. This increase was partially offset by a decrease of $337 million
associated with an increase in the rates used to discount decommissioning and restoration provisions.
In relation to the steelmaking coal business, which was sold in July of 2024 (Note 5), the requirements for water quality
management were established under a regional permit issued by the provincial government of British Columbia. This
permit referenced the Elk Valley Water Quality Plan (EVWQP). In October 2020, Environment and Climate Change
Canada issued a Direction under the Fisheries Act (the Direction) requiring us to undertake certain additional measures
to address water quality and fish habitat impacts in the upper Fording River and certain tributaries, and stipulating
deadlines for implementation of certain measures contemplated by the EVWQP. The Direction did not require
construction of any additional water treatment facilities beyond those already contemplated by the EVWQP, but set
out requirements with respect to water management such as diversions, mine planning, fish monitoring and calcite
prevention measures, as well as the installation by December 31, 2030, of a 200-hectare geosynthetic cover trial in the
Greenhills creek drainage. As at December 31, 2023, estimated costs in relation to this Direction issued by Environment
and Climate Change Canada were included in our decommissioning and restoration provisions. This provision was
derecognized upon sale of the steelmaking coal business in July of 2024.
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
27. Provisions (continued)
28. Other Liabilities
December 31,
December 31,
(CAD$ in millions)
2024
2023
Long-term portion of derivative liabilities (current portion – $23 (2023 – $15))
$
24
$
18
Codelco preferential dividend liability (Note 12(a))
548
444
QB variable consideration to IMSA (Note 12(a))
60
115
Obligation to Neptune Bulk Terminals (derecognized as part of the sale of the
steelmaking coal business (Note 5))
–
207
Downstream pipeline take-or-pay toll commitment
285
270
Other liabilities
182
89
$
1,099
$
1,143
119
Consolidated Financial Statements
29. 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
Class A
Class B
Common
Subordinate
Shares (in 000’s)
Shares
Voting Shares
At January 1, 2023
7,765
505,954
Class A common shares conversion
(110)
110
Shares issued on dual class amendment (b)
–
5,203
Shares issued on options exercised (d)
–
3,139
Cancelled pursuant to normal course issuer bid (i)
–
(4,738)
At December 31, 2023
7,655
509,668
Class A common shares conversion
(55)
55
Shares issued on options exercised (d)
–
8,178
Cancelled pursuant to normal course issuer bid (i)
–
(19,158)
At December 31, 2024
7,600
498,743
120
Teck 2024 Annual Report
29. 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, 2024, 9,001,488 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, 2024, we granted 1,082,270 share options to employees. These share options
have a weighted average exercise price of $52.85, vest in equal amounts over three years and have a term of 10 years.
The weighted average fair value of share options granted in the year was estimated at $21.21 per option (2023 – $22.69)
at the grant date based on the Black-Scholes option-pricing model using the following assumptions:
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:
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
2024
2023
Weighted average exercise price
$
52.85
$
54.66
Dividend yield
0.96%
0.92%
Risk-free interest rate
3.46%
3.52%
Expected option life
5.8 years
5.9 years
Expected volatility
42%
42%
2024
2023
Weighted
Weighted
Share
Average
Share
Average
Options
Exercise
Options
Exercise
(in 000’s)
Price
(in 000’s)
Price
Outstanding at beginning of year
13,067
$
25.92
15,057
$
22.38
Granted
1,082
52.85
1,383
54.66
Exercised
(8,165)
21.07
(3,117)
20.07
Forfeited
(512)
51.23
(252)
44.32
Expired
(5)
27.26
(4)
26.70
Outstanding at end of year
5,467
$
36.12
13,067
$
25.92
Vested and exercisable at end of year
3,524
$
27.43
10,018
$
20.04
The average Class B subordinate voting share price during 2024 was $62.98 (2023 – $54.46).
121
Consolidated Financial Statements
Total share option compensation expense recognized for the year was $21 million (2023 – $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).
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. The performance metrics for PSUs and PDSUs issued in 2022 and 2023 were 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.
The performance metrics for PSUs and PDSUs issued in 2024 were based on a balanced scorecard with four
components, with 40% based on relative shareholder return as compared to our compensation peer group and 20%
related to each of: strategic execution, performance measured against a sustainability progress index, and the change
in five-year average return on capital employed for operating assets. 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 2024, we recognized compensation expense of $70 million for Units (2023 – $55 million). The total liability and
intrinsic value for vested Units as at December 31, 2024 was $113 million (2023 – $171 million).
In 2024, we recognized total share-based compensation expense of $91 million (2023 – $81 million) in other
operating income (expense) (Note 10).
Exercise
Weighted Average Remaining Life
Outstanding Share Options (in 000’s)
Price Range
of Outstanding Options (months)
1,166
$
5.34 — $
14.71
43
1,315
$
14.72 — $ 30.35
50
1,122
$ 30.36 — $ 46.57
66
819
$ 46.58 — $ 54.33
109
1,045
$ 54.34 — $ 70.34
89
5,467
$
5.34 — $ 70.34
68
Information relating to share options outstanding at December 31, 2024, is as follows:
122
Teck 2024 Annual Report
29. Equity (continued)
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
The outstanding Units are summarized in the following table:
f) Accumulated Other Comprehensive Income
(in 000’s)
December 31, 2024
December 31, 2023
Outstanding
Vested
Outstanding
Vested
DSUs
491
491
1,837
1,837
RSUs
1,307
–
1,336
–
PSUs
946
–
656
–
PDSUs
116
69
253
219
2,860
560
4,082
2,056
(CAD$ in millions)
2024
2023
Accumulated other comprehensive income – beginning of year
$
693
$
1,062
Currency translation differences:
Unrealized gain (loss) on translation of foreign subsidiaries
1,697
(421)
Foreign exchange differences on debt designated as a hedge of our
investment in foreign subsidiaries (net of taxes of $7 and $(9)) (Note 34(b))
(47)
56
1,650
(365)
Gain (loss) on marketable equity and debt securities (net of taxes of $(7) and $1)
54
(4)
Remeasurements of retirement benefit plans (net of taxes of $(30) and $(68))
46
151
Total other comprehensive income (loss)
1,750
(218)
Remeasurements of retirement benefit plans recorded in retained earnings
(46)
(151)
Accumulated other comprehensive income – end of year
$
2,397
$
693
123
Consolidated Financial Statements
g) Earnings (Loss) Per Share
The following table reconciles our basic and diluted earnings (loss) per share:
At December 31, 2024, 1,036,929 (2023 – 1,321,427) 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, 2024 and December 31, 2023, there was a loss from continuing operations attributable
to shareholders. Accordingly, all share options would be considered anti-dilutive and have been excluded from the
calculation of diluted loss per share from continuing operations attributable to shareholders. The weighted average
shares outstanding and weighted average diluted shares outstanding are therefore the same for continuing operations.
h) Dividends
In 2024, 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 first, second and fourth quarters and $0.625 per share in the third quarter, totalling $514 million.
In 2023, 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 and $0.625 per share in the first quarter, totalling $515 million.
(CAD$ in millions, except per share data)
2024
2023
Loss from continuing operations attributable to shareholders of the company
$
(467)
$
(118)
Profit from discontinued operations attributable to shareholders
of the company (Note 5)
873
2,527
Profit attributable to shareholders of the company
$
406
$
2,409
Weighted average shares outstanding (000’s)
516,011
517,828
Dilutive effect of share options (000’s)
4,031
7,516
Weighted average diluted shares outstanding (000’s)
520,042
525,344
Loss per share from continuing operations
Basic and diluted
$
(0.90)
$
(0.23)
Earnings per share from discontinued operations
Basic
$
1.69
$
4.88
Diluted
$
1.68
$
4.81
Earnings per share
Basic earnings per share
$
0.79
$
4.65
Diluted earnings per share
$
0.78
$
4.59
124
Teck 2024 Annual Report
29. 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 2024, 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, 2024 to November
21, 2025. All purchased shares will be cancelled.
In 2024, we recorded $1.3 billion in equity for the purchase of 19,258,016 Class B subordinate voting shares. The
$1.3 billion includes an accrual of $15 million related to tax on repurchases of shares. For these share repurchases, we
paid $1.2 billion in cash in 2024 and $6 million subsequent to the end of the year. In 2024, 19,158,016 Class B subordinate
voting shares were cancelled, with the remaining 100,000 shares cancelled subsequent to the end of the year.
In 2023, we purchased and cancelled 4,737,561 Class B subordinate voting shares for $250 million.
30. Non-Controlling Interests
Set out below is information about our subsidiaries with non-controlling interests and the non-controlling interest
balances included in equity.
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
Percentage of
Ownership Interest and
Voting Rights Held
Principal Place
by Non-Controlling
December 31, December 31,
(CAD$ in millions)
of Business
Interest
2024
2023
Quebrada Blanca (a)
Region I, Chile
40%
$
889
$
1,104
Carmen de Andacollo
Region IV, Chile
10%
30
18
Elkview Mine Limited Partnership (b)
British Columbia, Canada
5%
–
126
Compañía Minera Zafranal S.A.C. (c)
Arequipa Region, Peru
20%
100
56
$
1,019
$
1,304
125
Consolidated Financial Statements
a) Quebrada Blanca
The non-controlling interest in QBSA consists of SMM/SC, who subscribed for a 30% indirect interest in QBSA in 2019,
and Codelco, a Chilean state-owned company that holds a 10% preference share interest. Codelco’s interest in QBSA
does not require Codelco 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.
b) Elkview Mine Limited Partnership
Teck’s ownership interest in Elkview Mine Limited Partnership was sold in 2024 as part of the sale of the steelmaking
coal business (Note 5).
c) Compañía Minera Zafranal S.A.C.
The majority of the net assets of the Zafranal copper-gold project located in the Arequipa Region of Peru relate to
exploration and evaluation assets.
December 31,
December 31,
(CAD$ in millions)
2024
2023
Summarized balance sheet
Current assets
$
1,492
$
1,025
Current liabilities
1,286
1,576
Current net assets (liabilities)
206
(551)
Non-current assets
23,244
20,931
Non-current liabilities
17,358
14,378
Non-current net assets
5,886
6,553
Net assets
$
6,092
$
6,002
Accumulated non-controlling interests
$
889
$
1,104
Summarized statement of comprehensive income (loss)
Revenue
$
2,376
$
595
Loss for the period
(1,200)
(465)
Other comprehensive income (loss)
219
(76)
Total comprehensive loss
$
(981)
$
(541)
Loss allocated to non-controlling interests
$
(462)
$
(188)
Summarized cash flows
Cash flows provided by (used in) operating activities
$
554
$
(506)
Cash flows used in investing activities
(1,407)
(3,203)
Cash flows provided by financing activities
841
3,751
Effect of exchange rates on cash and cash equivalents
9
(4)
Increase (decrease) in cash and cash equivalents
$
(3)
$
38
126
Teck 2024 Annual Report
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
31. 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, 2024, or with respect to future claims, cannot be predicted
with certainty. Significant contingencies not disclosed elsewhere in the notes to our consolidated 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.
In parallel, 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 2022, TML filed two motions for summary judgment in respect of the CERCLA natural resource damages claims,
which were denied. Based on one of those rulings, in the first quarter of 2023, TML filed a motion seeking a ruling that
the plaintiffs’ natural resource damages claims under CERCLA are not fully developed and they should therefore be
dismissed. The motion was denied and TML sought motions seeking reconsideration and certification for an
interlocutory appeal to the Ninth Circuit Court of Appeals, both of which were denied.
In October 2023, TML filed a motion for partial summary judgment on CCT’s tribal service loss claim. CCT’s tribal
services loss claim comprises the bulk of CCT’s outstanding individual claims against TML except for natural resource
damages assessment costs. 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 CCT
filed a motion seeking reconsideration of the dismissal or in the alternative certification for an interlocutory appeal to
the Ninth Circuit Court of Appeals. The trial court denied reconsideration but certified the matter for interlocutory
review by the Ninth Circuit Court of Appeals. The Ninth Circuit has accepted the interlocutory appeal, and a hearing
before the Ninth Circuit Court is scheduled for April 17, 2025.
The previously scheduled February 2024 trial with respect to natural resource damages and assessment costs has
been postponed pending the Ninth Circuit Court’s decision on the CCT’s dismissed tribal service loss claim and a
new trial date has not yet been scheduled.
Until the studies contemplated by the EPA settlement agreement and additional natural resource damage assessments
are completed, it is not possible to estimate the extent and cost, if any, of any additional remediation that may be
required by the EPA or restoration that may be demanded by the natural resource trustees or to assess the extent of
Teck’s potential liability for damages. The EPA studies may conclude, on the basis of risk, cost, technical feasibility or
other grounds, that no remediation other than some additional residential soil removal should be undertaken. If other
remediation is required, damage to natural resources are proved, and if the CCT’s dismissed tribal service loss claim is
revived and subsequently proved, the cost of that remediation and restoration and compensation for natural resource
damages may be material.
127
Consolidated Financial Statements
32. Commitments
a) Capital Commitments
As at December 31, 2024, we had contracted for $308 million of capital expenditures that have not yet been
incurred for the purchase and construction of property, plant and equipment. This amount includes $132 million
for QB and $118 million for our 22.5% share of Antamina. The amount includes $252 million that is expected to be
incurred within one year and $56 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 $448 million was recorded in 2024 (2023 – $262 million) in
respect of this royalty. The NANA royalty is expected to increase by 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 $18 million was recorded in 2024 (2023 – $23 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 QB. 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$247 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 $75 million per year, escalating
at 2% per year.
33. Segmented Information
Based on the primary products we produce, we have two reportable segments that we report to our President and
Chief Executive Officer – copper and zinc. Corporate activities are not considered a reportable segment and are
included as a reconciliation to total consolidated results. These corporate activities include all of our initiatives in
other commodities and groups that provide administrative, technical, financial and other support to our reportable
segments. Operating income (expense) – other includes general and administration, exploration, research and
innovation and other operating income (expense). Sales between segments are carried out on terms that arm’s-length
parties would use. Total assets do not include intra-group receivables between segments. Deferred tax assets have
been allocated among segments.
As a result of the sale of our steelmaking coal business in July of 2024 and the sale of our 21.3% interest in Fort Hills
and associated downstream assets in 2023, we no longer present the associated steelmaking coal and energy
segments in the tables below. The segmented information related to the steelmaking coal business and Fort Hills
are disclosed in Note 5, Sale of Steelmaking Coal Business and Discontinued Operations.
128
Teck 2024 Annual Report
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
33. Segmented Information (continued)
(CAD$ in millions)
2024
Copper
Zinc
Corporate
Total
Revenue (Note 7(a))
$
5,542
$
3,523
$
–
$
9,065
Cost of sales
(4,497)
(2,961)
–
(7,458)
Gross profit
1,045
562
–
1,607
Asset impairment (Note 9(a))
–
(1,038)
(15)
(1,053)
Operating income (expense) – other
13
39
(615)
(563)
Profit (loss) from operations
1,058
(437)
(630)
(9)
Finance income
23
1
210
234
Finance expense
(687)
(66)
(200)
(953)
Non-operating income (expense)
(94)
6
95
7
Share of profit of joint venture
3
–
–
3
Profit (loss) before taxes from
continuing operations
303
(496)
(525)
(718)
Depreciation and amortization
(1,356)
(309)
(61)
(1,726)
Capital expenditures from
continuing operations
2,267
345
23
2,635
December 31, 2024
Goodwill (Note 19)
442
–
–
442
Total assets
$ 34,433
$
4,187
$
8,417
$
47,037
129
Consolidated Financial Statements
Goodwill from discontinued operations and total assets from discontinued operations were unallocated to a segment,
as they were derecognized as part of the sale of the steelmaking coal business in 2024 (Note 5).
The geographical distribution of all our non-current assets in 2024 and 2023, other than financial instruments,
deferred tax assets and post-employment benefit assets, is as follows:
December 31,
December 31,
(CAD$ in millions)
2024
2023
Canada
$
3,185
$
21,678
Chile
24,497
22,400
United States
2,485
2,202
Peru
2,381
2,050
Mexico
219
165
Other
35
36
$
32,802
$
48,531
(CAD$ in millions)
2023
Copper
Zinc
Corporate
Total
Revenue (Note 7(a))
$
3,425
$
3,051
$
–
$
6,476
Cost of sales
(2,713)
(2,651)
–
(5,364)
Gross profit
712
400
–
1,112
Operating income (expense) – other
56
(86)
(860)
(890)
Profit (loss) from operations
768
314
(860)
222
Finance income
23
1
86
110
Finance expense
(79)
(53)
(28)
(160)
Non-operating income (expense)
(190)
–
(59)
(249)
Share of profit of joint venture
2
–
–
2
Profit (loss) before taxes from
continuing operations
524
262
(861)
(75)
Depreciation and amortization
(553)
(308)
(64)
(925)
Capital expenditures from
continuing operations
4,018
298
24
4,340
December 31, 2023
Goodwill from continuing operations
406
–
–
406
Goodwill from discontinued operations – Unallocated
–
–
–
702
Goodwill (Note 19)
406
–
–
1,108
Total assets from continuing operations
28,636
4,581
3,595
36,812
Total assets from discontinued operations – Unallocated
–
–
–
19,381
Total assets
$ 28,636
$
4,581
$
3,595
$ 56,193
130
Teck 2024 Annual Report
34. 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 our legal entities. 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. U.S. dollar cash and cash equivalents
held in our Canadian functional currency entities also generate foreign exchange risk.
We also have various investments in U.S. dollar functional currency subsidiaries, whose net assets are exposed to foreign
currency translation risk. Historically, this currency exposure was managed in part through our U.S. dollar denominated
debt as a hedge against these net investments. In the third quarter of 2024, we discontinued the hedge of our U.S. dollar
denominated debt against our U.S. dollar functional currency net investments because our U.S. dollar cash balances are
greater than our U.S. dollar debt balances with the receipt of proceeds from the sale of the steelmaking coal business.
U.S. dollar financial instruments subject to foreign exchange risk consist of U.S. dollar denominated items held in
Canada and are summarized below.
As at December 31, 2024, with other variables unchanged, a $0.10 strengthening of the Canadian dollar against the U.S.
dollar would result in a $262 million pre-tax loss (2023 – $33 million) from our financial instruments. There would also
be a pre-tax loss of $1.5 billion (2023 – $1.1 billion) in other comprehensive income from the translation of our foreign
operations. The inverse effect would result if the Canadian dollar weakened by $0.10 against the U.S. dollar.
Liquidity Risk
Liquidity risk arises from our general and capital funding requirements. We have planning, budgeting and forecasting
processes to help determine our funding requirements to meet various contractual and other obligations. Note 22(e)
details our available credit facilities as at December 31, 2024. Following the sale of the steelmaking coal business in
July of 2024, cash and cash equivalents have increased significantly and as a result, our cash balances were greater
than our debt balances at December 31, 2024.
Contractual undiscounted cash flow requirements for financial liabilities as at December 31, 2024 are as follows:
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
December 31,
December 31,
(US$ in millions)
2024
2023
Cash and cash equivalents
$
4,019
$
59
Trade and settlement receivables
524
1,145
Trade accounts payable and other liabilities
(877)
(743)
Debt (Note 22)
(1,044)
(2,470)
Reduced by: Debt designated as a hedging instrument in our net investment hedge
–
2,334
Net U.S. dollar exposure
$
2,622
$
325
131
Consolidated Financial Statements
Interest Rate Risk
Our interest rate risk arises in respect of our holdings of cash, cash equivalents, floating rate debt, advances from
SMM/SC and the financial liability due to Codelco. 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 $33 million pre-tax decrease in our profit (2023 – $50 million), not considering applicable capitalization
of borrowing costs. There would be no effect on other comprehensive income.
Commodity Price Risk
We are subject to price risk from fluctuations in market prices of the commodities that we produce. From time to time,
we may use commodity price contracts to manage our exposure to fluctuations in commodity prices and to avoid
mismatches in pricing reference periods. At the balance sheet date, we had zinc, lead and copper derivative contracts
outstanding as described in (b) below.
Our commodity price risk associated with financial instruments primarily relates to changes in fair value caused by
final settlement pricing adjustments to receivables and payables, derivative contracts for zinc, lead and copper,
embedded derivatives in our TAK road and port contract, in the ongoing payments under our silver stream and gold
stream arrangements and in the QB variable consideration to IMSA.
The following represents the effect on profit attributable to shareholders from a 10% change in commodity prices,
with other variables unchanged, based on outstanding receivables and payables subject to final pricing adjustments
at December 31, 2024 and December 31, 2023. There is no effect on other comprehensive income.
Change in Profit
Price on December 31,
Attributable to Shareholders
(US$/lb.)
(CAD$ in millions)
2024
2023
2024
2023
Copper
3.97
3.87
$
52
$
37
Zinc
1.34
1.20
$
1
$
(1)
Less Than
2–3
4–5
More Than
(CAD$ in millions)
1 Year
Years
Years
5 Years
Total
Trade accounts payable and
other financial liabilities
$
2,576
$
–
$
–
$
–
$
2,576
Debt (Note 22(f))
423
1,170
846
2,138
4,577
Lease liabilities
175
248
916
216
1,555
Codelco preferential dividend liability
–
–
494
219
713
QB advances from SMM/SC
–
–
–
4,512
4,512
QB variable consideration to IMSA
72
68
–
–
140
Other liabilities
–
198
11
12
221
Estimated interest payments on debt
267
372
242
806
1,687
Estimated interest payments on
QB advances from SMM/SC
372
700
600
682
2,354
Estimated interest payments on lease
and other liabilities
6
7
27
6
46
Downstream pipeline take-or-pay toll
commitment
33
70
75
248
426
$
3,924
$
2,833
$
3,211
$
8,839
$
18,807
132
Teck 2024 Annual Report
34. Financial Instruments and Financial Risk Management (continued)
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
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 $44 million
(2023 – $34 million). There would be no effect on other comprehensive income.
At December 31, 2023, a 10% change in the steelmaking coal price from US$264/tonne would change profit from
discontinued operations attributable to shareholders by $11 million due to final pricing adjustments on outstanding
receivables. We sold our steelmaking coal business in July of 2024 (Note 5).
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, 2024.
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, 2024.
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 in 2023). 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).
133
Consolidated Financial Statements
The table below outlines our outstanding settlement receivables and payables, which were provisionally valued at
December 31, 2024 and December 31, 2023.
At December 31, 2024, total outstanding settlement receivables were $1.5 billion (2023 – $1.3 billion) and total
outstanding settlement payables were $70 million (2023 – $36 million) (Note 21). These amounts are included in trade
and settlement receivables and in trade accounts payable and other liabilities, respectively, on the consolidated balance
sheets. The 2023 comparative balance sheet at December 31, 2023 includes outstanding a settlement receivables
balance for the steelmaking coal business sold in July of 2024 (Note 5) of $175 million, relating to 504,000 tonnes of
steelmaking coal at a price of US$264/tonne.
Zinc, Lead and Copper Swaps
Due to ice conditions, the port serving our Red Dog mine is normally only able to ship concentrates from July to
October each year. As a result, zinc and lead concentrate sales volumes are generally higher in the third and fourth
quarters of each year than in the first and second quarters. During 2024 and 2023, we purchased and sold zinc and
lead swaps to match our economic exposure to the average zinc and lead prices over our shipping year, which is
from July of one year to June of the following year.
All zinc, lead and copper swaps derivative contracts mature in 2025. These contracts are not designated as hedging
instruments and are recorded at fair value in prepaids and other current assets and trade accounts payable and other
liabilities on our consolidated balance sheet.
The fair value of our commodity swaps is calculated based on forward metal prices and is considered a Level 2 fair
value measurement with significant observable inputs on the fair value hierarchy (Note 35). A summary of these
derivative contracts and related fair values as at December 31, 2024 is as follows:
Outstanding at December 31, 2024
Outstanding at December 31, 2023
Volume
Price
Volume
Price
(pounds in millions)
(US$/lb.)
(pounds in millions)
(US$/lb.)
Receivable positions
Copper
178
3.97
127
3.87
Zinc
141
1.34
167
1.20
Lead
57
0.88
17
0.94
Payable positions
Zinc
84
1.34
121
1.20
Lead
32
0.88
15
0.94
Average Price
Average Price
of Purchase
of Sale
Fair Value
Derivatives not designated
Quantity
Commitments
Commitments
Asset (Liability)
as hedging instruments
(million lbs.)
(US$/lb.)
(US$/lb.)
(CAD$ in millions)
Zinc swaps
250
1.35
1.34
$
(9)
Copper swaps
47
3.93
4.03
$
9
Lead swaps
83
0.91
0.89
$
(6)
$
(6)
134
Teck 2024 Annual Report
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
34. Financial Instruments and Financial Risk Management (continued)
Derivatives Not Designated as Hedging Instruments and Embedded Derivatives
Amount of Gain (Loss) Recognized in
Other Operating Income (Expense)
(CAD$ in millions)
and Non-Operating Income (Expense)
2024
2023
Zinc swaps
$
(8)
$
(23)
Lead swaps
(4)
(9)
Copper swaps
27
(1)
Settlement receivables and payables (Note 10)
65
7
Contingent zinc escalation payment embedded derivative
1
5
Gold stream embedded derivative
51
12
Silver stream embedded derivative
22
4
QB variable consideration to IMSA (Note 12(a))
(7)
(4)
$
147
$
(9)
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 $32 million at December 31, 2024 (2023 – $30 million),
of which $8 million (2023 – $7 million) is included in trade accounts payables and other liabilities and the remaining
$24 million (2023 – $23 million) is included in 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 $106 million at December 31, 2024
(2023 – $48 million), of which $11 million (2023 – $4 million) is included in prepaids and other current assets and the
remaining $95 million (2023 – $44 million) is included in financial 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 $52 million at December 31, 2024 (2023 – $26 million), of which $3 million (2023 – $1 million) is included
in prepaids and other current assets and the remaining $49 million (2023 – $25 million) is included in financial 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, 2024 and 2023. 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.
In July of 2024, we received proceeds from the sale of the steelmaking coal business (Note 5) and as a result, our U.S.
dollar cash balances were greater than our U.S. dollar debt balances. Accordingly, we discontinued the designation of
our U.S. dollar denominated debt as a hedge against our U.S. dollar functional currency net investments in the third
quarter of 2024. At December 31, 2023, US$2.3 billion of our debt and U.S. dollar investment in foreign operations were
designated in a net investment hedging relationship. While we discontinued the net investment hedge in the third
135
Consolidated Financial Statements
quarter of 2024, the hedge was effective prior to that date. During the year ended December 31, 2024, $54 million
(2023 – $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 29(f)
for the effect of our net investment hedges on other comprehensive income.
35. 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 and certain refined metal sales because they are valued using
quoted market prices derived based on forward curves for the respective commodities.
In 2023 and prior to the sale of the steelmaking coal business in July 2024 (Note 5), steelmaking coal settlement
receivables that were valued using quoted market prices derived from published price assessments for steelmaking
coal sales were also included in Level 2 of the fair value hierarchy.
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.
136
Teck 2024 Annual Report
Equity securities in non-public companies included in Level 3 of the fair value hierarchy are initially measured at fair
value, with cost of the investment taken as the best estimate of fair value and subsequently measured based on an
implied value of the underlying business.
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 consolidated financial statements (Note 12, Note 22 and Note 24), the fair value of
the remaining financial assets and financial liabilities approximate their carrying value.
36. Capital Management
Risk 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.
As at December 31, 2024, our debt-to-adjusted EBITDA ratio was 1.9x (2023 – 1.2x). 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.
Notes to Consolidated Financial Statements Years ended December 31, 2024 and 2023
The fair values of our financial assets and liabilities measured at fair value on a recurring basis at December 31, 2024
and 2023, are summarized in the following table:
35. Fair Value Measurements (continued)
(CAD$ in millions)
2024
2023
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Financial assets
Cash equivalents
$ 5,244
$
–
$
–
$ 5,244
$
345
$
–
$
–
$
345
Marketable and other
equity securities
118
–
189
307
79
–
150
229
Debt securities
220
–
–
220
184
–
–
184
Settlement receivables
–
1,456
–
1,456
–
1,254
–
1,254
Derivative instruments and
embedded derivatives
–
168
–
168
–
92
–
92
$ 5,582
$ 1,624
$
189
$ 7,395
$ 608
$ 1,346
$
150
$ 2,104
Financial liabilities
Derivative instruments and
embedded derivatives
$
–
$
179
$
–
$
179
$
–
$
148
$
–
$
148
Settlement payables
–
70
–
70
–
36
–
36
$
–
$
249
$
–
$
249
$
–
$
184
$
–
$
184
137
Consolidated Financial Statements
Loan Covenant
The sustainability-linked revolving facility as described in Note 22(e) requires our total net debt-to-capitalization ratio
to not exceed 0.60 to 1.0. Following the sale of the steelmaking coal business in July 2024, cash and cash equivalents
increased significantly and as a result, our cash balances were greater than our debt balances at December 31, 2024.
Therefore, we do not exceed the required net debt-to-capitalization ratio. 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.
As at December 31, 2023, our net debt-to-capitalization ratio was 0.20 to 1.0.
37. 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,
and executive vice presidents.
(CAD$ in millions)
2024
2023
Salaries, bonuses, director fees and other short-term benefits
$
19
$
21
Post-employment benefits
2
6
Share option compensation expense
7
10
Compensation expense related to Units
18
27
$
46
$
64
138
Teck 2024 Annual Report
EXECUTIVE OFFICERS1
Jonathan H. Price
President and Chief Executive Officer
Ian K. Anderson
Senior Vice President and Chief
Commercial Officer
Lyndon Arnall
Executive Vice President and Chief
Legal and Sustainability Officer
Shehzad Bharmal
Executive Vice President and Chief
Operating Officer
C. Jeffrey Hanman
Executive Vice President and Chief
Strategy Officer
Nicholas P.M. Hooper
Executive Vice President and Chief
Corporate Development Officer
Karla L. Mills
Executive Vice President and Chief
Project Development Officer
Crystal J. Prystai
Executive Vice President and Chief
Financial Officer
Dean C. Winsor
Executive Vice President and Chief
People Officer
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. Balhuizen1,2,5
Director since 2023
James K. Gowans3,5
Director since 2024
Edward C. Dowling, Jr.2,5
Director since 2012
Una M. Power 1,2
Director since 2017
Paul G. Schiodtz 1,3,4
Director since 2022
Timothy R. Snider3,4,5
Director since 2015
Sarah A. Strunk1,3,4
Director since 2022
Yu Yamato4
Director since 2024
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 and executive officers listed as at February 19, 2025. More information on our directors and executive 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.
139
Corporate Information
CORPORATE INFORMATION
2024 Share Prices and Trading Volume
Class B subordinate voting shares–TSX–CAD$/share
High
Low
Close
Volume
Q1
$
62.58
$
49.30
$
62.00
63,296,685
Q2
$
74.37
$
61.04
$
65.56
76,140,661
Q3
$
72.92
$
58.53
$
70.64
82,866,615
Q4
$
71.40
$
57.15
$
58.28
69,056,120
291,360,081
Class B subordinate voting shares–NYSE–US$/share
High
Low
Close
Volume
Q1
$
46.22
$
36.51
$
45.78
53,898,314
Q2
$
55.13
$
44.54
$
47.90
49,596,300
Q3
$
54.12
$
41.60
$
52.24
39,657,467
Q4
$
52.98
$
39.79
$
40.53
35,428,297
178,580,378
Class A common shares–TSX–CAD$/share
High
Low
Close
Volume
Q1
$
62.30
$
49.35
$
62.22
187,149
Q2
$
74.15
$
61.45
$
65.50
183,518
Q3
$
72.66
$
58.65
$
70.67
152,952
Q4
$
71.25
$
56.75
$
58.33
152,898
676,517
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
$
0.125
March 18, 2024
$
0.125
June 28, 2024
$
0.625
September 27, 2024
$
0.125
December 31, 2024
These dividends are eligible for both the Canadian federal and
provincial enhanced dividend tax credits.
Shares Outstanding at December 31, 2024
Class A common shares
7,599,531
Class B subordinate voting shares
498,743,441
Annual Meeting
Our annual meeting of shareholders will be held at 2:00 p.m.
on April 24, 2025.
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
733 Seymour Street, Suite 2310
Vancouver, BC V6B 0S6
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 Co LLC
55 Challenger Road,
Ridgefield Park, New Jersey 07660
+1.800.937.5449 or +1.718.921.8200
Email: Correspondence@equiniti.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