Teck Resources Provides Update on Operations and Production Outlook

Teck Resources Update: Comprehensive Operational Insights

Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) has recently shared important updates regarding its operational progress and financial outlook, following a thorough review that emphasizes strategic improvements across its main projects. With a persistent commitment to maximizing performance, the company is focusing on its Quebrada Blanca (QB) Action Plan, which aims to enhance operating efficiencies and production rates.

Comprehensive Operations Review Overview

Launched to foster growth, the Comprehensive Operations Review accompanies detailed evaluations of the QB and Highland Valley Copper (HVC) operations. This initiative has led to constructive assessments that consider both expert insights and internal evaluations. By refining projections for production and costs, Teck aims to clearly communicate its operational expectations through 2028 while identifying risks and opportunities across its divisions.

Key Findings from the Operational Review

Teck’s review centered on optimizing outputs, specifically addressing areas of the Tailings Management Facility (TMF) development. An immediate goal is to enhance production capacity by safely elevating the TMF dam height, which involves constructing additional rock benches and improving sand drainage. The sands utilized must comply with precise specifications to ensure operational efficiency.

QB Action Plan Progress

Production at the Quebrada Blanca site continues to face challenges due to the pace of TMF work, which has necessitated periodic shutdowns to manage tailings. Nonetheless, the company is dedicated to creating an environment conducive to sustainable production. Recent advancements include:

• Strategic modifications to remove ultra-fines through collaboration with technology experts.
• Redesigning sand placement techniques to boost overall drainage efficiency.

These initiatives have yielded operational enhancements, although additional development is vital to reach optimal performance, especially before the anticipated steady-state operations in 2027.

Operational Performance Metrics for Q3 2025

The production outputs across Teck's operations in the third quarter of 2025 aligned closely with expectations, revealing strong copper prices that have reportedly remained favorable (averaging US$4.44 per pound). This economic climate contributed to notable pricing adjustments and positive financial impacts.

Updated Production Guidance

In light of current developments, Teck has revised its production guidance as follows:

• For QB: An updated copper production forecast stands at 170,000 to 190,000 tonnes for 2025.
• For HVC: Now projected production ranges from 120,000 to 130,000 tonnes due to lower grades and mill maintenance impacts.

The adjustment in production forecasts applies across various operations, underlining the company's proactive management approach to navigate market and operational uncertainties.

Looking Ahead: Production and Cost Expectations for 2026-2028

Teck is positioning itself for future growth while striving to improve unit costs. For 2026, QB's copper production is anticipated to range between 200,000 and 235,000 tonnes. Concurrently, the company expects its net cash unit costs to remain competitive, reflecting a strong focus on cost management strategies.

Considerable Focus on Operations

The following guiding principles will shape Teck's operations in the coming years:

• Continued modification of operational protocols to ensure lower-cost production amidst challenges.
• Maximizing the utilization of high-grade material to bolster production rates.
• Engagement in ongoing geological studies to refine recovery expectations.

Their intent is to integrate these strategies to enhance profitability and operational viability in a highly competitive market.

Investor Engagement: Building Trust and Transparency

Teck understands the importance of maintaining robust communication with investors. An upcoming Investor Conference Call will provide further insights into the recent guidance updates, operational challenges, and strategic initiatives the company is pursuing. Stakeholders are encouraged to partake and discuss these developments directly with Teck's management team.

Frequently Asked Questions

What is the Quebrada Blanca Action Plan?

The QB Action Plan is aimed at improving production efficiency at Teck’s Quebrada Blanca operation by enhancing operational practices and TMF management.

How has production outlook changed for 2025?

The production guidance for 2025 has been revised downward to 170,000 to 190,000 tonnes for QB, reflecting ongoing operational challenges.

What steps is Teck taking to manage costs?

Teck is implementing strategic initiatives to optimize production and engage in cost management practices to remain competitive.

When is the next investor call scheduled?

The next Investor Conference Call is set for 8:00 AM Eastern Time, where management will address guidance updates and operational strategies.

What are the future production expectations?

For 2026, Teck anticipates copper production at QB will range between 200,000 and 235,000 tonnes, with a focus on lowering cash unit costs in the years ahead.

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