Teck Resources 2012 Annual Meeting Presentation
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Transcript of Teck Resources 2012 Annual Meeting Presentation
2012 Annual Meeting April 25, 2012
Forward Looking Information
Both these slides and the accompanying oral presentation contain certain forward-looking statements within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario). Forward-looking statements
can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”,
“intends”, “anticipates” or “does not anticipate”, or “believes”, or variation of such words and phrases or state that certain actions, events or results “may”,
“could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties
and other factors which may cause the actual results, performance or achievements of Teck to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking statements.
These forward-looking statements include the statements under the “Looking Ahead” section and the “Project Developments” section which relate to
estimates, forecasts, and statements as to management’s expectations with respect to the matters discussed in those sections, including, but not limited
to, progress and costs of growth projects, future trends for the company, future production and sales volumes, demand and market outlook for
commodities.
These forward-looking statements involve numerous assumptions, risks and uncertainties and actual results may vary materially. These statements are
based on a number of assumptions, including, but not limited to, assumptions regarding general business and economic conditions, the supply and
demand for, inventories of, and the level and volatility of prices of primary metals and minerals produced by Teck as well as oil, natural gas and petroleum
products, the timing of receipt of regulatory and governmental approvals for Teck’s development projects and other operations, the availability of financing
for Teck’s development projects on reasonable terms, Teck’s costs of production and production and productivity levels, as well as those of its
competitors, power prices, market competition, the accuracy of Teck’s reserve estimates (including, with respect to size, grade and recoverability) and the
geological, operational and price assumptions on which these are based, tax benefits, the resolution of environmental and other proceedings, our ongoing
relations with our employees and partners and joint venturers, performance by customers and counterparties of their contractual obligations, and the
future operational and financial performance of the company generally.
2
Forward Looking Information
The foregoing list of assumptions is not exhaustive. Events or circumstances could cause actual results to differ materially. Factors that may cause
actual results to vary include, but are not limited to: adverse developments in business and economic conditions in the principal markets for Teck’s
products, in credit markets, or in the supply, demand, and prices for metals and other commodities to be produced, changes in interest and currency
exchange rates, inaccurate geological or metallurgical assumptions (including with respect to the size, grade and recoverability of mineral reserves and
resources), changes in taxation regimes, legal disputes or unanticipated outcomes of legal proceedings, unanticipated operational difficulties (including
failure of plant, equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and
equipment, government action or delays in the receipt of permits or government approvals, industrial disturbances or other job action, and unanticipated
events related to health, safety and environmental matters), political risk, social unrest, lack of available financing for Teck or its partners or co-venturers,
and changes in general economic conditions or conditions in the financial markets.
Certain of these risks are described in more detail in the annual information form of the company available at www.sedar.com and in public filings with the
SEC. The company does not assume the obligation to revise or update these forward-looking statements after the date of this document or to revise them
to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
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4
2011 in Review
Record Safety Performance
5
0.00
1.00
2.00
3.00
4.00
5.00
6.00
2003 2004 2005 2006 2007 2008 2009 2010 2011
LTIF MAF
Total Reportable Injury Frequency: 2003 – 2011
2011: Record
low injuries
2011 Financial Highlights
Record Revenues $ 11.5 billion
Record Gross Profit
(before depreciation & amortization) $ 5.8 billion
Record Profit (attributable to shareholders)
$ 2.7 billion
Record EBITDA $ 5.5 billion
Revenues up 25%, Profit up 47%
6
2011 Profit
Adjusted Profit
2011 2010
Profit ($millions) $2,468 $1,503
EPS - Basic $4.18 $2.55
Diluted $4.16 $2.54
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$2.54
$4.16
0.00
1.00
2.00
3.00
4.00
5.00
2010 2011
Earnings per Share (C$)
+64%
2011 Operation Highlights
Copper: Record production of 321,000
tonnes
Coal: Expanded proven and probable
reserves by 55% to 1 billion tonnes
Zinc: Record throughput of 3.7 million
tonnes at Red Dog
Energy: Total contingent resources
increased 67% to 3.5 billion barrels of
bitumen
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Our Focus on Sustainability
• Community
• Water
• Energy
• Ecosystems and Biodiversity
• Materials Stewardship
• Our People
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Communities – Antamina
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Making the World a Better Place
11
12
Looking Ahead
Continued Strong Demand for our
Products
13
China 5 year plan:
• Annual 7% GDP growth
• 36 million new low-income housing units
• 200,000 km increase in power
transmission lines
• 83,000 km of National Expressway
Network
Growing middle class:
• 3 billion increase from 2010 to 2030
‘Stay the Course’ Strategy
Low-cost
Incremental Growth Coal
Building
Resources Energy
Converting Resources to Cash Flow
Brownfield
Expansion Copper
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Project Developments
• Quintette Coal Mine
Feasibility study Q2 2012
• Quebrada Blanca Phase 2
Feasibility study Q1 2012
• Relincho Copper Mine
Feasibility study Q1 2013
• Frontier / Equinox Oil Sands Mine Projects
DBM complete and regulatory application filed Q4 2011
• Fort Hills Phase I
Engineering update 2012
15
Our People – Retirements
16
Mike Agg Jim Utley
Our People
17
Teck's Safety Journey April 25, 2012
Robin Sheremeta Vice President, Health and Safety Leadership
2005 – The First Health and Safety Conference
19
Evolution of Safety
Inju
ry f
requency
rate
Time
20
Historic Approach “Good old days”: (accidents will happen)
Era of Engineering: (eg. hand rails, limit switches, machine guards, etc.)
Era of Legislation: procedures, laws and regulations (eg. Mines Act)
How do we close this gap?
Era of Behaviour Based Safety: observations
Historical Focus
Cultural Approach
Technical Programs
We’ve primarily
focused on the
technical side
of safety
21
Cultural Approach
Technical Programs
Historical Focus
We’ve primarily
focused on the
technical side
of safety
22
The Cultural
side has been
more difficult
to figure out
Evolution of Safety In
jury
fre
quency
rate
Time
23
Era of Engineering: (eg. hand rails, limit switches, machine guards, etc.)
Era of Legislation: procedures, laws and regulations (eg. Mines Act)
How do we close this gap?
Era of Behaviour Based Safety: observations
Era of Values Based Safety: CSL, VFL, etc.
Values and Beliefs Dictate Actions
Nobody
Listens…
Accidents
happen… Production
over safety…
• We don’t report incidents
• We don’t listen to each other
• We take shortcuts
• We put ourselves at risk
“Good old
days”
LTI
MA
FA
Near Hits
At Risk Behaviour
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New Values and New Beliefs
Lead to Different Actions
I am
responsible
for safety…
All serious
injuries are
preventable…
My actions
impact others…
• We report all incidents
• We listen to each other’s
concerns
• We lead by example
• We manage our risks
Values-based
Safety
Everyone Goes Home
Safe and Healthy
Every Day
25
A New Focus at Teck
The Balanced Safety System
Cultural Approach
Technical Programs
Training and Procedures
Risk Assessment
Standards and Auditing
Visible Felt Leadership
Courageous Safety Leadership
Management Commitment
Achieving our
health and
safety vision
requires
Commitment
and
Leadership
from every
employee
We must have
effective
technical
Safety
Programs
to support the
overall safety
system
Who and Why What and How
26
Courageous Safety Leadership
• Would create the catalyst for change in our organization
• Would engage employees in a values based approach to safety
• Would lay the foundation for a Culture of Safety in Teck and help
us achieve the vision…
Everyone Going Home
Safe and Healthy
Every Day
The Courageous Safety Leadership Journey
28
2009 – Courageous Safety Leadership
Rollout at Teck
29
30
Rebuilding Culture
2010 and 2011 Site Generated Monthly CSL Topics –
Engagement at Operational Level
Greenhills Operations
The Power of Choice
Fording River
Y.E.S. To Safety
Highland Valley Copper
From Here to Home
Red Dog Operations
Elkview Operations
At Work At Play Changing of the Guard
Trail Operations
In His Footsteps
Duck Pond Operations
Courageous Safety Leadership III:
Next Steps
31
• In the Spring of 2011, we brought together 28 Courageous Safety
Leaders from all around Teck to design the next phase of CSL
• After several review sessions and many months of development we
created the Next Steps in our journey
Courageous Safety Leadership III:
Next Steps
32
• Held the Executive and GM session on March 14, 2012
• And starting in June, we will roll out CSL: Next Steps across Teck
Teck's Evolution of Safety
33
What began in 2005 with our first
Health and Safety Conference…
…has become a company wide
culture shift, recruiting over…
and here’s the value…
At Teck, more people are
Going Home Safe and Healthy Every Day
than ever before…
34
Thank You
35
Everyone Going Home
Safe and Healthy
Every Day
See Yourself at Teck
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37
Questions
2012 Annual Meeting April 25, 2012