Core Viewpoint - Teck Resources Limited has provided an update on the Quebrada Blanca (QB) Action Plan and operational outlook following a Comprehensive Operations Review, highlighting production and sales volumes for Q3 2025 and adjustments to future production guidance due to ongoing challenges with the Tailings Management Facility (TMF) [1][3][10]. Group 1: QB Action Plan and Operational Review - The Comprehensive Operations Review initiated in August aims to enhance performance through the QB Action Plan, focusing on improving operating practices and setting achievable plans [2]. - A detailed assessment of operating plans was completed with input from third-party experts, leading to revised production guidance for QB and other operations for 2025-2028 [3][10]. - Production at QB is currently constrained by the TMF development, necessitating downtime in the concentrator, with efforts ongoing to enable safe and unconstrained production [4][5]. Group 2: Production and Sales Performance - In Q3 2025, copper production at QB was 39,600 tonnes, with sales volumes of 43,900 tonnes, reflecting ongoing TMF constraints [18]. - The annual 2025 copper production guidance for QB has been revised to 170,000 to 190,000 tonnes, down from 210,000 to 230,000 tonnes [18]. - Copper prices remained strong, averaging US$4.44 per pound in Q3, contributing to $108 million in positive pricing adjustments [8]. Group 3: Future Production Guidance - The annual production guidance for QB has been updated for 2026 to 200,000 to 235,000 tonnes, down from 280,000 to 310,000 tonnes, with similar adjustments for molybdenum production [19]. - For 2027, copper production is expected to be 240,000 to 275,000 tonnes, and for 2028, it is anticipated to be 220,000 to 255,000 tonnes, both lower than previously disclosed guidance [20]. - The company expects capital expenditures related to TMF development to be $420 million in 2026, in addition to $340 million in 2025 [30]. Group 4: Other Operations - Highland Valley Copper (HVC) production in Q3 2025 was 28,100 tonnes, lower than expected due to lower grades and unplanned maintenance, leading to a revised annual production guidance of 120,000 to 130,000 tonnes for 2025 [23]. - Red Dog operations performed strongly with zinc production of 122,000 tonnes in Q3 2025, and the annual production guidance remains unchanged at 430,000 to 470,000 tonnes for 2025 [23]. - Trail Operations continued to meet expectations with refined zinc production of 52,600 tonnes in Q3 2025, and the annual guidance for 2025 remains at 190,000 to 230,000 tonnes [29].

Core Insights - Teck Resources Limited is undertaking a Comprehensive Operations Review to enhance performance and operational delivery, expected to conclude by October 2025 with updates communicated alongside Q3 results [1][7] Group 1: Comprehensive Operations Review - The Comprehensive Operations Review includes detailed assessments of operating plans, third-party expert input, and rigorous execution tracking [1] - The review aims to identify opportunities to enhance operating practices and reinforce confidence in future business plans [7] Group 2: QB Action Plan - The QB action plan focuses on addressing slow sand drainage that has affected TMF development and production pace [2] - Key initiatives include enabling ramp-up by mechanically raising the tailings dam wall and increasing crest height [3] - Significant work has been done to improve sand drainage times, with further initiatives underway to enhance drainage performance [4][8] Group 3: Operational Readiness and Leadership - Teck is committed to strengthening operational readiness and resilience by validating an executable mine plan and optimizing performance across the mine, plant, and port [5] - A respected industry leader has been onboarded as a Special Advisor to the CEO to support QB operations and accelerate TMF development [7] - Senior Vice Presidents of Operations for Latin America and North America will now report directly to the President and CEO to enhance executive oversight [9] Group 4: Leadership Changes - Shehzad Bharmal, Executive Vice President and Chief Operating Officer, has retired after 33 years with the company, contributing significantly to Teck's operations and leadership [10]