Ladies and gentlemen, thank you for standing by. Welcome to Teck Resources Limited's First Quarter 2026 Earnings Release Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. This conference call is being recorded on Thursday, 04/23/2026. I would now like to turn the conference over to Emma Chapman, Vice President, Investor. Please go ahead.

Thank you, Operator. Good morning, everyone, and thank you for joining us for Teck Resources Limited's first quarter 2026 conference call. Today's call contains forward-looking statements. Actual results may vary due to various risks and uncertainties. Teck Resources Limited does not assume the obligation to update any forward-looking statements. Please refer to Slide 2 for the assumptions underlying our forward-looking statements. We will reference non-GAAP measures throughout this presentation. Explanations and reconciliations are in our MD&A and the latest press release on our website. On today's call, Jonathan Price, our CEO, will provide highlights for the first quarter 2026. Crystal Prystai, our CFO, will follow with further details on our operational performance and financials in the quarter. Jonathan will then wrap up with closing remarks and an opportunity for Q&A. And with that, over to you, Jonathan.

Thank you, Emma, and good morning, everyone. We will start with the highlights from the first quarter 2026 on Slide 4. We delivered a very strong start to the year with robust financial results reflecting both disciplined execution across our operations and the cash flow generation potential of our portfolio. Our adjusted EBITDA more than doubled to $2.1 billion in the quarter, driven by record quarterly copper sales volumes, higher commodity prices, and the continued success of our optimized feed strategy in Trail Operations. This has supported robust cash generation with $1 billion in cash flow from operations contributing to a $338 million increase in our net cash position over the quarter. And with ongoing cash generation into April, we further increased our cash by nearly $300 million since March 31, and our current liquidity is $9.8 billion as of yesterday. Throughout the quarter, we made considerable progress against our key near-term priorities. Our merger of equals with Anglo American obtained regulatory approval from South Korea and advanced integration readiness. We have strong performance across all operations and are tracking well against our plans with no changes to our previously disclosed annual guidance. At QB, the team delivered consistent performance, production in line with Q4 2025, and record quarterly copper sales. We also made significant progress on the tailings management facility, or TMF, including completion of Rock Bench 4. And we continue to advance the Highland Valley mine life extension project with detailed engineering now over 90% complete and procurement nearing completion; our capital guidance of $2.1 to $2.4 billion is unchanged. All in all, it has been another strong quarter of performance in which we demonstrated the resilience and potential of our assets and further improved our strong balance sheet. Turning to an update on the merger of equals with Anglo American on Slide 5. We continue to make progress with regulatory approvals. As mentioned, we received approval from South Korea in the first quarter and the approval from China is advancing. At the same time, we are making good progress on our integration planning work to ensure readiness to close and to position the combined business to hit the ground running from day one. We are moving steadily closer to creating a leading global critical minerals champion and realizing the significant value creation potential of Anglo-Teck. We continue to expect closing of the transaction within twelve to eighteen months from the announcement last September. Turning now to safety on Slide 6. Teck Resources Limited had very strong safety performance in the first quarter. Our high potential incident frequency rate for Teck Resources Limited-controlled operations remained low at 0.05 in the quarter. This is below our 2025 annual rate of 0.06, which matched Teck Resources Limited's best ever annual result. Health and safety remain core values for Teck Resources Limited; we are focused on continual improvement and our vision of everyone going home safe and healthy every day. Turning to QB's performance in the first quarter on Slide 7. I was at QB last week, and I am incredibly pleased with the performance of the team there and the progress we are making at this tier-one asset, executing on the TMF action plan and driving operational stability. In the first quarter, we delivered robust and consistent performance with strong production at 56,000 tonnes. This was in line with Q4 2025 despite a planned maintenance shutdown and a shorter operating month in February. Mill availability of 92% was lower quarter-on-quarter; we completed our planned scheduled maintenance in January, which also had a slight impact on overall asset utilization in the quarter of 87%. Despite this, asset utilization in the quarter remained above the range assumed in our 2026 guidance. Throughput improved slightly quarter-over-quarter, reflecting enhancements in operational discipline and integration across the mine and the plant. Recoveries at 83% benefited from stable, continuous operations. Overall, there was continued operational stability in QB, with enhanced reliability and consistency in plant operations during the quarter. Slide 8 highlights the development of QB's TMF. At site, I was able to see the significant progress the team has made in advancing development of the facility. These photos show the progress that we have made since many of you visited QB in November 2025. In the first quarter, we successfully completed Rock Bench 4. You can see that the dam crest has widened significantly, which enabled the raising of the dam wall with no associated downtime of the mill. We also advanced construction of the paddocks and development of the sand dam, as evidenced in the picture on the right-hand side, as sand production and quality improved from the installation of new cyclone technology late last year. Overall, sand deposition rates improved in the first quarter, and continued improvement is expected throughout the year as we progress construction of the sand dam. Slide 9 summarizes the status of QB's TMF development work, which remains on track. Construction of the mechanical rock benches is aligned with our plan, with the completion of Rock Bench 4 in Q1. We now expect to complete Rock Bench 5 by the end of the second quarter, adding further width to the dam crest. With the installation of the new cyclone technology late last year, and the associated improvements in sand deposition, we expect to continue to advance development of the sand dam and enable steady-state operations by year-end. We have decided to install a secondary sand cyclone system to further improve sand quality. The timing of installation will be determined in the second half of this year. And finally, the schedule for installation of the permanent infrastructure remains under evaluation and will be confirmed later in the year. While we have made significant progress on the TMF, there is still much work to be done throughout the remainder of the year, importantly, completion of the development of the sand dam, and we remain acutely focused on closing out all remaining objectives. Turning to the Highland Valley mine life extension on Slide 10. The project includes enhanced mine infrastructure, an expanded mobile equipment fleet, and a new maintenance shop. The infrastructure work includes a new tertiary grinding mill and replacement of an AG mill with a SAG mill, upgrades to the flotation circuit, and upgraded power and water systems. Construction activities continue to ramp up across these work fronts and are progressing to plan. We have commenced construction of the new maintenance shop, made substantial progress along the tailings corridor, and advanced installation of pilings for the new tertiary mill. The early productivity indicators are positive. Detailed engineering is now over 90% complete, and procurement awards are now over 95% complete, with our focus now shifting to expediting the fabrication and then ensuring that timelines for delivery to site are maintained. We invested $188 million in the project in the first quarter. Our capital expenditure guidance for the project is unchanged at $900 million to $1.2 billion this year, which is a peak year for project spend, and $2.1 to $2.4 billion overall. There is also additional capitalized stripping at HVC to develop future mining areas, and this is expected to continue to ramp up over the remainder of the year. While we expect some impact from higher diesel prices, our 2026 guidance for capitalized stripping is unchanged at $450 to $500 million for the entire copper segment. This project will enable average annual copper production of 132,000 tonnes per annum at Highland Valley and extend the life of this core asset to 2046. With that, I will hand over to Crystal.

Thanks, Jonathan. Good morning, everyone. I will begin with our financial performance in 2026 on Slide 12. As Jonathan mentioned earlier, our adjusted EBITDA more than doubled to $2.1 billion in the quarter, with margins expanding to 53% from 40% in the same period last year. This was driven by our highest ever quarterly copper sales volumes and significantly higher commodity prices, with copper prices averaging a record $5.83 US per pound in the quarter. There was also a meaningful contribution from increased by-product revenue, particularly from silver. We continue to focus on cash flow generation through our optimized feed strategy at Trail Operations. This strategy continues to deliver positive results. Gross profit before depreciation and amortization from Trail significantly improved to $258 million in the first quarter compared with $80 million in the same period last year. We continue to assess our feedstock strategies and remain agile to implement initiatives that will enhance Trail Operations' profitability and cash flow. Slide 13 summarizes our financial performance in 2026 compared to the same period in the previous year. The 125% increase in our adjusted EBITDA was primarily driven by higher primary and by-product prices, resulting in a total increase in adjusted EBITDA of over $1 billion. Lower smelter processing charges remained a tailwind as the concentrate market continues to be tight. Controllable factors made a positive contribution to EBITDA, with higher sales volumes resulting in a $232 million increase. Higher copper volumes were marginally offset by lower zinc sales from Red Dog, which were in line with our expectations. Now looking at each of our reporting segments in greater detail, starting with copper on Slide 14. In the first quarter, our gross profit before depreciation and amortization in copper increased 158% from the same period last year to $1.8 billion, primarily driven by record quarterly average copper prices and copper sales volumes and lower net cash unit costs. Gross profit margin before depreciation and amortization improved substantially to 52% from 47% in the same period last year. Operational performance was strong across all assets in our copper segment. Copper production increased 32% from Q1 2025 to 140,000 tonnes, including the significant increase in QB's production to 56,000 tonnes. We also achieved record quarterly copper sales at QB, which exceeded production at 70,000 tonnes, drawing down inventory built at the end of 2025. These sales were supported by normal operations at the ship loader at QB's port facility following the completion of repairs and return to service in February. Highland Valley's production increased 11,000 tonnes from Q1 2025 due to increased mill throughput and higher grades, partially offset by lower recoveries as mill feed continues to be dominated by softer ore from the Lornex pit. Antamina's production grew 41,000 tonnes due to higher-grade copper-only ore, as expected in the mine plan. And Carmen de Andacollo's production increased to 14,000 tonnes due to higher copper grades and recoveries. Our copper net cash unit costs were significantly lower than the same period last year, down $0.27 US per pound, reflecting higher production, lower smelter processing charges, and higher silver and molybdenum by-product credits at QB and HVC. Looking forward, all of our annual guidance for 2026 to 2028 for our copper segment is unchanged. This year, we continue to expect further growth in copper to 455,000 to 530,000 tonnes compared with 454,000 tonnes last year. Turning now to our zinc segment on Slide 15. In the first quarter, gross profit before depreciation and amortization increased 72% from the same period last year to $387 million, driven by higher commodity prices and, as I mentioned previously, our continued focus on our optimized feed strategy at our Trail Operations. Gross profit margin before depreciation and amortization expanded to 37% compared to 29% in the same period last year. At Red Dog, zinc production of 106,000 tonnes reflected lower grades as expected in the mine plan, and zinc sales were above our quarterly guidance range at 52,000 tonnes. Despite the lower production, we reduced our zinc net cash unit cost by $0.08 per pound compared to the same period last year, due to higher by-product revenue, largely driven by increased silver prices, as well as lower smelter processing charges. Refined zinc production at Trail Operations increased 16,000 tonnes compared to Q1 2025, as the zinc electrolytic plant was running at full capacity in the quarter. Looking forward, we expect Red Dog zinc sales for Q2 2026 to be between 30,000 and 40,000 tonnes, consistent with the normal seasonality of sales. Our annual zinc guidance for 2026 to 2028 is unchanged, and we continue to expect zinc in concentrate production of 410,000 to 460,000 tonnes and refined zinc production of 190,000 to 230,000 tonnes in 2026. Looking more closely now at our unit costs on Slide 16. In the first quarter, our net cash unit costs in both our copper and zinc segments decreased significantly compared with the same period last year. This was a function of disciplined execution at our operations with higher production and improved by-product pricing. The current conflict in the Middle East results in some inflationary and supply chain risks, largely from diesel prices and, in particular, diesel imports into Chile. This inflationary risk to cost needs to be seen in the context of the material benefit on our unit costs from additional by-product revenue, which currently more than offsets the impact of higher diesel prices. Our annual net cash unit cost guidance embeds conservative by-product prices below those achieved last year and below current spot prices. If current commodity prices persist, this would be a benefit to our realized net cash unit cost for the year. Our annual 2026 net cash unit cost guidance ranges for both copper and zinc are unchanged, and we have provided sensitivities for our net cash unit cost to by-products and WTI prices. The largest sensitivities are currently expected to be from silver and the WTI oil price as a proxy for diesel. In our copper segment, our annual net cash unit cost guidance for this year remains $1.85 to $2.20 per pound, compared with $2.03 US per pound last year, and reflecting the growth in copper production that we continue to expect this year. For every $10 US per ounce change in the silver price, our copper net cash unit costs are expected to move $0.02 US per pound. Our 2026 guidance range embeds an assumption of $36 US per ounce, and the spot price is currently trading at around $80 US per ounce. For every $10 US per barrel change in the WTI oil price, our copper net cash unit costs are expected to move $0.03 US per pound. Our 2026 guidance is based on a WTI oil price of $65 US per barrel, and the spot price is currently around $93 US per barrel. In the zinc segment, we continue to expect our annual net cash unit cost for this year to be between $0.65 and $0.75 US per pound, compared with $0.30 to $0.33 US per pound last year, reflecting the expected decline in zinc production volumes this year. For every $10 US per ounce change in the silver price, our zinc net cash unit costs are expected to move $0.05 US per pound. And for every $10 US per barrel change in WTI, our zinc net cash unit costs are expected to move $0.01 US per pound. At Red Dog, we take delivery of all of our required diesel during the shipping season, and we are still consuming fuel shipped in 2025. We are continuing to actively monitor the situation for any potential for further disruptions, including in the cost and supply of inputs. Turning now to our operating cash flow outlook on Slide 17. With the cash flow we have already generated from operations in Q1 of this year, our illustrative EBITDA and cash flow from operations have further improved based on several copper pricing scenarios. Assuming an average copper price of $5.50 US per pound for the rest of the year, we could generate $6.6 billion in EBITDA and $5.5 billion in operating cash. And if copper prices remain at current levels close to $6 US per pound for the remainder of the year, this could increase to around $7.1 billion in EBITDA and $5.9 billion in operating cash flows. These cash flows are primarily driven by our copper segment, including QB, with a significant contribution from our zinc segment. This illustrates the cash flow potential of the business, particularly if current copper prices are sustained. We expect strong operating cash flow conversion, particularly at QB. Turning to our balance sheet on Slide 18. Cash flow from operations in the first quarter was strong at $1 billion. This was despite an $834 million build in working capital due to seasonal working capital outflows throughout the quarter, including payment of the NPI royalty, as well as an increase in receivables at the end of the quarter due to higher sales volumes and higher commodity prices. As a result of our strong operating performance, we are building cash, with a $338 million increase in our net cash position in the quarter to $488 million. We have continued to generate cash into April, with a $276 million increase in our cash balance from March 31, and our current liquidity is $9.8 billion as of yesterday. The cash flows generated from operations also support our capital investments as we continue to execute the HVC MLE project this year. We continue to maintain investment-grade credit ratings and to pay our regular base annual dividend of $0.50 per share, or $61 million in the first quarter. Overall, robust cash flow generation is strengthening our balance sheet and ensuring our resilient position. With that, I will hand back to Jonathan for closing remarks.

Thanks, Crystal. I will come back to our key near-term priorities to wrap up on Slide 20. First, we are working on securing the remaining regulatory approvals for our merger of equals with Anglo American while advancing our integration planning. Second, we are focused on continuing to deliver safe, stable, and predictable operational performance against our plans and guidance. Third, we are pushing hard to progress the TMF development to achieve steady-state operations at QB this year to underwrite the full value of this extraordinary asset. And finally, we are advancing construction of the Highland Valley mine life extension project. With these key near-term priorities, we are setting a strong foundation for our next chapter at Anglo-Teck as a global top-five copper company, as we continue with our relentless focus on unlocking value for our shareholders. With that, over to you, Operator, for questions.

Certainly. You will hear a tone acknowledging your request. We ask that you please limit yourself to one question and one follow-up. If you are using a speakerphone, please ensure you are using the handset before pressing any keys. The first question comes from Liam Fitzpatrick with Deutsche Bank. Liam, you may go ahead.

Good morning, Jonathan and team. First question, just on QB, around the installation of the permanent infrastructure. Can you outline some of the key factors that will drive the timing there? And does it pose any risk to the production guidance that you have given?

Liam, thanks for that question. Firstly, I will say it poses no risk to production guidance, but I will let Dale Webb, our SVP of LatAm, talk through some of the timing considerations.

Thanks for the question, Liam. I think the primary drivers are really our progression in terms of getting the tailings dam to steady state, and that is on track to achieve by year-end. Once we are able to achieve that, then we will find an operating window where we have an extended period of time where we do not need to do additional lifts, at which point we can implement and install that infrastructure. We would be looking at a period of time in 2027 to do that. That would be preliminary at this stage, and it is under constant review as we progress the build of the tailings dam.

Okay. Thank you. And my follow-up is on the Trail asset. This has not been my biggest focus when looking at the numbers, but it has become quite material. Can you help us understand what a sustainable level of EBITDA for this asset will be moving forward? Q1 does look exceptional, but how should we think about 2026 and beyond?

Yes, thanks, Liam. I will get our operations lead to just start with a little bit on the operating strategy at Trail, and then perhaps Crystal can comment on the financial outcomes.

Good morning, and thank you, Liam. As Crystal stated in her opening comments, our strategies have remained consistent for the past eighteen months. There are two key drivers to profitability. One is our feedstock from concentrate and non-concentrate sources. We work closely with the commercial team to set up the feed strategy in advance to optimize pricing. Also note it is an integrated zinc business; our principal feed source is from Red Dog. The second driver is capacity of the plant. We are focused on operating discipline. We have plant shutdowns this year in May and October, approximately 15 to 20 days each.

Thanks. Look, I think the future profitability of Trail as we think forward every quarter is going to depend heavily on commodity prices, the TC environment, and FX rates. Those are all going to be drivers. And as noted, the feedstock is going to be really critical to that. So what you are seeing is by-products really driving the profitability in the quarter. I think it is challenging to measure that sort of EBITDA, but you really have to think about your views on commodity prices. We can have further discussions about the modeling offline if that is helpful.

Okay. Thank you.

The next question comes from Myles Allsop with UBS. Please go ahead.

Great, thanks, and congratulations on a good quarter. Maybe just firstly on the merger with Anglo. How are the discussions progressing with the Chinese regulators? Is there anything untoward? And how quickly, once approval comes through from China, can you actually complete the merger and move forward?

Yes, thanks, Myles. On the first point, the interactions with SAMR, the regulator in China, are proceeding very much in the normal course. We continue, both ourselves and Anglo American, to respond to information requests, which is quite typical at this point in time. Right now, we have not received any requests for remedies arising from this process. So it is very much a normal, two-way, technocratic process, if I can put it that way, and we will continue to remain very engaged in that. As I mentioned before, we do not see any change to the timelines for closing of the transaction, with the twelve to eighteen months from the date of announcement still remaining our best and current view. With respect to completing or closing the transaction post the receipt of the China approval, of course we would look to do that as quickly as possible. There will be a number of considerations that flow into that, but I think you could expect to see one following the other in pretty short order.

Okay. Thank you. And then on the TSX index, how have those discussions been progressing? Is it looking like you may get index inclusion now?

There have been a few green shoots coming in that conversation of late. As you know, it is something we have been focused on since the announcement of the transaction, but I will let Emma provide a little bit of an update as to where we are right now.

Hi, Myles. The good news is we have seen some really positive momentum coming from S&P and the TSX to find a practical solution to enable Anglo-Teck to retain indexation as a combined entity on the TSX. This is ultimately being driven by market participants who really want this outcome. There is currently a consultation process ongoing which could help shape what the potential framework could look like to enable that indexation. At the moment, we are hearing pretty positive feedback from the market that there is an incentive to try and find a positive solution. We just need to establish the timing of what that process could look like and hopefully see a conclusion reached ahead of close of the deal. We will work closely with the market, and we will work closely with S&P and the TSX to try and get that determination for investors.

Great. Thanks. I will jump back in the queue.

Thanks, Myles.

The next question comes from Anita Sarney with CIBC. Please go ahead.

Hi, good morning, Jonathan and team. Thanks for taking my question and congratulations on a good quarter. Just a couple of questions. I want to follow up on the indexation. I think S&P was soliciting feedback from investors. Do you have any idea when you would hear whether or not you would be included in the index? Is there any timeframe?

We have not had any specific timeframe, Anita. I think there are obviously some variables that are uncertain, such as the closing of the transaction. From the feedback that we have received from the market, there is a desire to try and accelerate getting a conclusion done so that it is in advance of the close of the deal. But I do not believe that a set process or timeline has been established at this point. We will again try to work as closely as we can to facilitate an accelerated decision from S&P and TSX.

I think all we know in addition to that, Anita, is that they make these decisions on a quarterly basis, and there is a consultation period ahead of each quarter. So to Emma’s point, it is about timing that consultation to be as close as possible to completion of the transaction.

Just on QB as well. Is there anything that we need to be thinking about as the year evolves in terms of capacity within the tailings dam? At this stage, is there sufficient capacity ahead of you for Q2 and Q3, or could that be a bottleneck going forward? I understand the mill is running well, but I am just thinking about the capacity for deposition.

At a very high level, we have signaled that we expect Rock Bench 5 to be completed within this quarter, within Q2. Assuming we deliver that, then we expect to be able to operate throughout the remainder of 2026 unconstrained by the dam and by tailings capacity.

Another question. The NPI at Fourmile has come up. Are there any plans for you to monetize that, or how are you thinking about that royalty that you have?

No specific plans for that right now. We view that as a valuable asset that we have in the portfolio, and it is a reflection of what is actually quite a large portfolio of various royalties associated with prior exploration projects that we have had in the Teck Resources Limited stable. We are obviously very pleased to see how that project will advance over time. There is a lot of technical work that has to still be done around the Fourmile development, and that will further inform the value of the royalty that we hold. It is something that we will remain very close to, of course, but that is one for the future.

Thank you. That is it for my questions.

The next question comes from Craig Hutchinson with TD. Please go ahead.

Just on the potential for the JV between QB and Collahuasi. I think you had mentioned in Q1 that you are starting to have discussions there. Can you provide any updates on where things stand with regard to a future JV between those two assets?

Thanks for that, Craig. We remain very focused on unlocking the full potential of QB and Collahuasi for all shareholders and stakeholders. We are absolutely convinced that that combination will offer the fastest route to new copper growth; it will have the lowest risk, the lowest capital intensity, and therefore the highest returns relative to any standalone alternatives for either site. However, progressing with QB–Collahuasi and the synergies there will not in any way preclude further expansion of either QB or Collahuasi in the future. We see that district as one that will be able to offer a significant expansion of multi-decade copper growth for all parties. There is a lot of work going on around that right now. We are progressing with scoping studies, we are progressing with permitting strategies, and we are having engagements between the parties and stakeholders more broadly. So lots happening on that front, but, of course, nothing concrete to announce at this point.

And then one more question for me. On Highland Valley, it was really strong grade this quarter. What does the cadence look like from a grade perspective for the balance of the year? Does it drop off fairly significantly in Q2, or is it steady state and then rolls off in the second half? Anything on grades would be helpful. Thanks.

We do expect to see some reduction in grades, but perhaps I will ask our HVC operations lead to comment a little more.

Thanks very much, Craig. The grade in Q1 2026 was expected and in line with our plan and within our annual guidance range. Grades in the first quarter were slightly higher than projected; that was a function of sequencing within the mine plan. We do expect some additional downtime in the second half of the year associated with the mine life extension project. As Jonathan mentioned, we are going to convert the autogenous mill to a SAG mill and install the tertiary grinding mill, so connecting those two things will impact capacity, but all is consistent with guidance.

Guidance is unchanged, Craig.

Great. Thanks, guys.

The next question comes from Carlos De Alba with Morgan Stanley. Please go ahead.

Yes, thank you. Good morning, everyone. Sorry if this question was asked before or the topic was addressed; I joined a little bit late. Have the Chinese authorities indicated any potential request in terms of asset divestitures or something of that nature as they go through the review of the proposed transaction?

Hi, Carlos. Yes, we did address this earlier. Essentially, that process is unfolding under the normal course in terms of the regulatory review.