Teck Resources Limited Class A · TSX:TECK.A
Teck Resources Limited Class A — Teck Cominco — Q2 2003 Earnings Presentation
17 slides from Teck Resources Limited Class A's earnings presentation, Jul 24, 2003
Slide 1: A Premier North American Mining & Metals Company
A Premier North American Mining & Metals Company nd Quarter 2003 Conference Call & Webcast July 24th, 2003 David A. Thompson Chief Executive Officer
Slide 2: Forward Looking Information
Forward Looking Information Q2 Some of the statements contained in the following material are forward-looking statements and not statements of fact. Such statements are based on the current beliefs of management, as well as assumptions based on management information currently available. Forward-loo
Slide 3: Second Quarter 2003 Highlights
Second Quarter 2003 Highlights Q2 Q2 Earnings per Share (C$) Three Months Ended 0.10 June 30th (C$ millions except per share amount) 0.08 0.06 2003 2002 0.06 0.04 Net Earnings $12 $8 0.04 EPS $0.06 $0.04 0.02 0.00 2002 2003 3
Slide 4: Second Quarter 2003 - Overview
Second Quarter 2003 - Overview Q2 T Net earnings $12 million vs. $8 million in ‘02 T Impact of FX = $8 million in Q2 T Cash flow $51 million vs. $46 million in ’02 T Debt reduced by $155 million T Fording acquisition loan reduced to US$98 million (C$138 million) 4
Slide 5: Canadian $ Prices
Canadian $ Prices Q2 Before Hedging Gains After Hedging Gains 2003 2002 2003 2002 Change Change C$ C$ C$ C$ C$/US$ FX Rate 1.40* 1.55 -10% 1.47** 1.55 -5% Zinc (per lb) 0.49 0.56 -12% 0.51 0.56 -9% Copper (per lb) 1.06 1.13 -6% 1.12 1.13 -1% Lead (per lb) 0.29 0.31 -6% 0.31 0.31 0% Gold (per oz) 486
Slide 6: Operating Profit
Operating Profit * Q2 Q1 Q2 Q2 2003 2003 2002 Trail 12 6 9 Cajamarquilla 5 3 1 Coal Partnership*** 8 22 - Elkview ** 14 - 27 Red Dog (6) (3) (4) Hemlo 6 5 3 Highland Valley 8 7 9 Others 5 - 4 52 40 49 * Depreciation and amortization are deducted in the calculation of operating profit ** Elkview oper
Slide 7: Trail (100%)
Trail (100%) Q2 Q1 Q2 Q2 2003 2003 2002 Zinc - kt Production 71 73 72 Sales 69 75 80 Lead - kt Production 23 25 21 Sales 22 21 28 Power Sales – GWh 181 257 165 C$ millions Revenue 199 206 214 Operating Profit * 12 6 9 * Includes power sales. Depreciation and amortization expenses are deducted in the
Slide 8: Cajamarquilla (85%)
Cajamarquilla (85%) Q2 Q1 Q2 Q2 2003 2003 2002 Zinc – kt (100%) Production * 32 31 19 Sales * 32 31 20 C$ millions (85%) Revenue 44 42 28 Operating Profit ** 5 3 1 * Production & sales amounts are shown on a 100% basis ** Depreciation and amortization expenses are deducted in the calculation of oper
Slide 9: Coal Partnership (35%)
Coal Partnership (35%) * Q2 Q1 Q2 Q2 2003 2003 2002 1 mos 3 mos 3 mos Coal – mmt (100%) Production ** 1.9 5.8 - Sales ** 1.9 5.8 - C$ millions (35%) Revenue 43 126 - Operating Profit*** 8 22 - * Coal partnership operations in Q1 2003 reflect 1 month of operations ** Production & sales amounts are sh
Slide 10: Red Dog (100%)
Red Dog (100%) Q2 Q1 Q2 Q2 2003 2003 2002 Zinc – kt Production 144 142 136 Sales 147 98 87 C$ millions Revenue 83 56 50 Operating Profit (loss)* (6) (3) (4) * Depreciation and amortization expenses are deducted in the calculation of operating profit (loss) 10
Slide 11: Hemlo (50%)
Hemlo (50%) Q2 Q1 Q2 Q2 2003 2003 2002 Gold – k oz (100%) Production * 137 123 123 Sales * 137 123 123 Grade (g / tonne) 5.4 4.7 4.6 C$ millions (50%) Revenue 36 32 32 Operating Profit** 6 5 3 Cash Costs US$/oz 231 255 245 * Production & sales amounts are shown on a 100% basis ** Depreciation and am
Slide 12: Highland Valley Copper (64%)
Highland Valley Copper (64%) Q2 Q1 Q2 Q2 2003 2003 2002 Copper – kt (100%) Production * 41 43 47 Sales * 31 33 46 C$ millions (64%) Revenue 48 51 65 Operating Profit ** 8 7 9 * Production & sales amounts are shown on a 100% basis ** Depreciation and amortization expenses are deducted in the calculat
Slide 13: Antamina (22.5%)
Antamina (22.5%) Q2 Q1 Q2 Q2 2003 2003 2002 Copper – kt (100%) Production * 73 65 94 Sales * 69 65 88 Zinc – kt (100%) Production * 72 100 47 Sales * 54 108 53 C$ millions Equity Earnings 6 4 5 * Production & sales amounts are shown on a 100% basis 13
Slide 14: Cash Flow / Capex
Cash Flow / Capex Q2 $ millions Q2 75 Cash Flow * Capex 51 50 46 41 27 25 0 2003 2002 * Before working capital changes 14
Slide 15: Cash Flow / Capex
Cash Flow / Capex Q2 $ millions 6 Months 125 Cash Flow * 102 Capex 100 85 81 75 56 50 25 0 2003 2002 * Before working capital changes 15
Slide 16: Liquidity
Liquidity Q2 Dec 31 Mar 31 June 30 2002 2003 2003 Working Capital (C$ millions) 635 624 545 Net Debt (C$ millions) 868 1,079 924 Net Debt / ND + Equity 26% 30% 28% 16
Slide 17: Premier North American Mining & Metals Company
Premier North American Mining & Metals Company