TECK RESOURCES LTD Investor's Guide

This investor's guide summarizes TECK RESOURCES LTD's 2025 annual report, filed in February 2026 for the year ended December 31, 2025. We'll break down the key insights into the company's performance and strategic direction, helping you understand what it means for your investment. All financial figures are in Canadian dollars unless otherwise specified.

Business Overview

TECK is a leading global mining company, primarily focusing on Copper and Zinc. These metals are crucial for the world's energy transition and infrastructure development. TECK also produces other valuable metals such as Silver, Lead, Molybdenum, Germanium, and Gold, and manufactures fertilizers. The company operates across key regions including Canada, Chile, Peru, and the United States, selling its products to markets in Asia, Europe, and the Americas.

Financial Performance

2025 marked a pivotal year for TECK, showcasing significant improvement in its core business performance.

• Revenue Growth: Total revenue climbed to $10.76 billion in 2025, a substantial increase from $9.07 billion in 2024. This growth reflects stronger commodity prices and enhanced operational efficiency.
• Operating Profit Turnaround: Profit from operations, a key indicator of the mining business's health before taxes, dramatically shifted from a $9 million loss in 2024 to a robust profit of $2.25 billion in 2025. This represents a significant operational improvement.
• Earnings Per Share (EPS) Increase: Shareholders saw an overall EPS of $2.84 per share in 2025, a substantial increase from $0.79 per share in 2024.
• Impact of Coal Divestment: Understanding the strategic divestment of their steelmaking coal business (Elk Valley Resources Ltd.) is key. In 2024, this sale generated a one-time profit of $1.21 billion from "discontinued operations." While this boosted 2024's overall profit, it also obscured a significant loss of $923 million from their continuing operations (copper, zinc, etc.) that year.
• Core Business Strength: In 2025, with the coal business fully divested, TECK's continuing operations generated a strong profit of $1.07 billion. This remarkable turnaround from the previous year's loss clearly demonstrates the success of their strategy to focus on core metals.
• Currency Fluctuations: While operational profits were strong, "Total Comprehensive Income" shifted from a $2.07 billion gain in 2024 to a $17 million loss in 2025. This change primarily stemmed from significant currency translation differences, which are non-cash impacts from fluctuating exchange rates on international assets and liabilities, rather than day-to-day mining performance.

Management Discussion & Analysis (MD&A) Highlights

Management highlighted 2025 as a year of strategic transformation and strong operational execution. TECK successfully divested its steelmaking coal business to Glencore in 2024, a major strategic step. This move allowed the company to sharpen its focus on high-growth copper and zinc assets, significantly de-risking the company and providing capital for future critical mineral investments. The 2025 financial results clearly reflect the positive impact of this strategic shift, showing a substantial turnaround in profitability from continuing operations.

A key development management discussed was the active exploration of a potential "merger of equals" with Anglo American plc. This ambitious proposal, if it proceeds, would combine the two mining giants into a new entity, Anglo Teck plc. Such a merger would create a much larger company with a broader global footprint and enhanced resources. While this could unlock significant synergies and growth opportunities, it remained subject to numerous regulatory and shareholder approvals at the time of the report. Management emphasized that this strategic initiative underscores their commitment to maximizing shareholder value and strengthening their position in the global mining sector.

Operationally, TECK continued to advance its major growth projects, particularly Quebrada Blanca Phase 2 (QB2) in Chile, central to its copper growth strategy. Management also reiterated TECK's commitment to environmental protection, social responsibility, and strong governance, through ongoing efforts to reduce its carbon footprint, responsibly manage water resources, and foster positive relationships with local communities.

Financial Health

TECK maintained a strong financial position, supported by robust cash flow from its continuing operations and proceeds from the steelmaking coal business divestment. This enhanced liquidity and strengthened the balance sheet. TECK actively manages its debt profile, aiming for a prudent capital structure that supports growth initiatives and maintains financial flexibility. The company reported substantial cash and cash equivalents, and access to significant undrawn credit facilities. This provides ample liquidity to meet operational needs and fund capital expenditures. TECK manages debt maturities to avoid significant concentrations in any single year, ensuring ongoing financial stability.

Competitive Position

TECK holds a strong competitive position as a major global diversified mining company, especially in copper and zinc. Its competitive advantages arise from a portfolio of long-life, high-quality assets, including some of the world's largest and lowest-cost operations such as Red Dog (zinc) and Highland Valley Copper. Significant investment in projects like Quebrada Blanca Phase 2 (QB2) will further solidify its standing as a top-tier global copper producer, leveraging large-scale, low-cost production capabilities. The company's substantial mineral reserves and resources provide a long-term production runway. Furthermore, TECK's strategic focus on critical minerals essential for the global energy transition aligns with growing market demand, enhancing its relevance and competitive edge. The potential merger with Anglo American, if realized, would further strengthen its global footprint, diversify its asset base, and potentially unlock significant synergies and economies of scale, positioning it as a dominant player in the global mining landscape.

Future Outlook

TECK's future focus centers firmly on growing its copper and zinc production, driven by global demand for these critical minerals. The company is heavily investing in its copper portfolio, with major projects like Quebrada Blanca Phase 2 (QB2) in Chile central to its growth strategy. QB2 is expected to significantly boost copper production volumes and establish TECK as a top-tier global copper producer.

TECK holds substantial reserves of copper and zinc, with many of its key mines, such as Red Dog (zinc) and Highland Valley Copper, offering decades of expected mine life. TECK plans significant capital expenditures to support these growth projects and maintain existing operations, ensuring long-term production capacity. The company anticipates continued strong demand for its products, particularly copper, driven by electrification and renewable energy trends. TECK commits to disciplined capital allocation and operational excellence to maximize returns from its asset base. The potential Anglo American merger, while uncertain, represents a significant future strategic direction that could redefine the company's scale and market presence.

Risk Factors

Investing in the mining sector involves inherent risks, and TECK highlights several key factors that could impact its future:

• Merger Uncertainty: The proposed merger with Anglo American, if it proceeds, presents risks regarding successful completion, integration challenges, and the full realization of anticipated benefits. Potential legal and valuation risks also exist.
• Commodity Price Volatility: Prices for copper, zinc, and other metals are influenced by global supply and demand, economic conditions, and geopolitical events, which can significantly impact TECK's profitability.
• Operational Challenges: Mining operations face risks from geological surprises, adverse weather, equipment failures, labor disputes, and difficulties in obtaining or maintaining permits.
• Inflationary Pressures: Rising costs for energy, labor, and supplies can erode profit margins. While TECK actively manages costs, it remains exposed to broader economic inflation.
• Environmental & Regulatory Changes: Stricter environmental regulations, particularly concerning climate change, water usage, and tailings management, could lead to increased operating costs and capital expenditures.
• Global Economic & Political Instability: Broader economic downturns, trade policies, and political instability in countries where TECK operates can create significant headwinds.
• Cybersecurity Risks: Like any large corporation, TECK faces the ongoing threat of cyberattacks that could disrupt operations or compromise sensitive data.

TECK aims to mitigate these risks through a diversified portfolio, disciplined cost management, continuous operational improvements, and a strong focus on sustainability and stakeholder engagement.

In Conclusion

In 2025, TECK RESOURCES LTD demonstrated a strong financial turnaround in its core copper and zinc businesses, validating its strategic shift away from coal. With significant growth projects underway and the potential for a transformative merger, the company is positioning itself for a future driven by critical minerals. However, investors should remain mindful of the inherent risks within the mining sector and the uncertainties surrounding major strategic initiatives.