Teck announces Q1 2020 update of the Toronto Stock Exchange: TECK.A

VANCOUVER, British Columbia, April 01, 2020 (GLOBE NEWSWIRE) – Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (Teck) today presented an update on Q1 2020 operations , preventive measures taken COVID-19 and updated its annual guidelines for 2020.

Despite the challenges of March related to COVID-19, all of our operations remain in production and our results for the production of steel coal have far exceeded expectations, said Don Lindsay, President and Chief Executive Officer. We remain focused on putting in place the measures necessary to protect the health and safety of our populations and communities, while maintaining safe operations.

Q1 2020 operations update
After a difficult start to the year, the results of our Steelmaking Coal Business Unit improved considerably at the end of February and March. First quarter sales of steel coal are estimated at 5.6 million tonnes, exceeding our forecast by 4.8 to 5.2 million tonnes. At the same time, based on preliminary results, we plan to report an adjusted site cost of sale of approximately $ 65 per tonne, well below previous expectations.

Finished coal inventories at our mining sites were reduced during the quarter, supporting sales and increasing operational flexibility.

Despite a difficult start to the year, our coal supply chain for the steel industry performed well for the remainder of the quarter, with CP and CN recovering from disruptions and blockages due to early weather conditions. All three ports also performed well, particularly the Westshore terminals, which had a solid March.

The upgrade of our Neptune facilities continues to progress and major equipment deliveries are on track. We anticipate that the new ship loader, stacker / reclaimer and replacement of the single dumper will be commissioned by the end of the year. Completion of construction is still scheduled for the first quarter of 2021, and the new double dumper is expected to be commissioned in the second quarter of 2021. The closure of our operations at Elkview to complete the expansion of the plant is also progressing well and we expect completion in mid-April. Elkview Plant Grows From 7 Million Tons To 9 Million Tons, This Will Replace High Cost Production From Our 1.4 Million Tons Cardinal River Mine in 2019, with lower cost production of Elkview when Cardinal River Considering both cost savings and rising average Elkview coal price, assuming a benchmark coal price of US $ 150 and rates exchange rates, this should translate into an annual increase of $ 110 million in EBITDA.

The ongoing impacts of the COVID-19 pandemic can affect both the cost and the timing of these projects, and although the impacts to date have not been significant, we continue to closely monitor progress given the level of uncertainty.

As previously announced, the construction of our Quebrada Blanca Phase 2 (QB2) project was temporarily suspended on March 18. All non-essential employees were safely demobilized. For the time being, construction remains suspended.

COVID-19 Response
Teck has implemented extensive preventive measures in all offices and operations to protect the health of our employees and local communities, while continuing to operate safely and responsibly to maintain employment and economic activity. These measures include improving cleaning and disinfection protocols, eliminating group meetings, reducing the occupancy of crew buses, controlling contractors and visitors, promoting preventive measures such as hand washing, the obligation for employees to return from international trips or to show symptoms to isolate themselves, and the implementation of remote work possible.

As part of our efforts to ensure the health and safety of our employees and our communities, we have also implemented a temporary slowdown in operations and a reduction in teams of up to 50% from regular levels in our operations. Highland Valley steel and copper coal. These measures started on March 25 and will be in place for an initial period of two weeks, after which we will reassess in light of developments. All employees available for work will continue to be paid normally during the initial two-week period.

Impacts of COVID-19 production
The impacts of COVID-19 will vary depending on the operation, but production will continue on the sites on a reduced basis.

Although reductions to our steel coal operations vary by mine, total production is expected to be reduced on average to approximately 80% to 85% of normal levels during the initial two-week period. During this period, historically high stocks of clean coal are expected to be drawn to support sales. Crew reductions at Highland Valley Copper are expected to reduce production to 80% to 85% of normal levels for the initial two-week period.

In our Trail activities, we temporarily reduced the number of employees on site by a third while continuing to operate at the planned production levels. At Red Dog, production remains at expected levels despite significant travel restrictions and modified schedules required to maintain operational security due to the nature of the operation’s fly-in-fly-out. In Peru, our Antamina mine continues to operate at full level with less than half of the normal workforce. At Carmen de Andacollo in Chile, full production has also been maintained to date with a reduction in staff.

In our QB2 project, after the initial two-week suspension, project construction activities remain on hold. It is currently not possible to predict when construction activities will resume. For more information on the current state of QB2, please see our press release titled Teck announces an update to its QB2 capital estimate issued March 31, 2020.

We continue to work with our unions and affected communities and follow the advice of government and public health authorities, and will adapt our response as necessary as this situation evolves.

Orientation 2020
We have described above the immediate impact of these measures on the production levels expected from our operations. We are still evaluating longer term response measures and our ability to maintain operations at current levels, or potentially increase staff and production. COVID-19 has the potential to affect both our customers and some of our suppliers, and we are closely monitoring the potential impacts on demand for our products, as well as on our supply chain. Our operating plans will depend in part on regulatory restrictions that may affect our business, as well as the progression of the pandemic in general, and the extent of additional measures, if any, necessary to protect health and safety employees. The actual extent and duration of production slowdowns and / or reductions in personnel and associated costs are unknown at this time. Due to the high level of uncertainty associated with the current COVID-19 situation, we are suspending our forecasts for 2020. We will provide an additional update when we publish our financial results for the first quarter of 2020.

Forward-looking statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of the United States of 1995 and forward-looking information as defined in the Securities Act (Ontario) (together known as forward-looking statements). Forward-looking statements can be identified by the use of words such as estimate, expect, expect, expect, expect, potential or variations of these words and expressions or statements that certain actions, events or results may, could, should, should, could or will be taken, will occur or will be realized. The forward-looking statements in this press release include statements regarding: the completion of the construction and commissioning of the modernization of the Neptune facility, the completion of the Elkview plant expansion and the operation of the Elkview plant after the closure of the Cardinal River mine; the potential impacts of COVID -19 on the cost and schedule of these projects; the operating restrictions on our steel and Highland Valley coal operations and the associated impact on production. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding: there is no significant and negative impact on individual contractors, suppliers and sub-contractors for sites and projects related to COVID-19 or otherwise; that no new regulatory or other restrictions affect our ability to continue operations or construction, whether associated with COVID-19 or otherwise; timely receipt of permits and other regulatory approvals; construction progress and restart schedule for full construction activities; availability of labor; and the performance of contractors, sub-contractors and suppliers.

Forward-looking statements involve risks, uncertainties and other known and unknown factors, which may cause actual results and performance to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause actual results to vary include, but are not limited to: changes in general economic conditions; work interruptions; unforeseen permit or construction problems, or the suspension, withdrawal or unavailability of permits and authorizations; unforeseen factors affecting construction plans and budget, including supplier, transportation or logistics issues; adverse weather conditions or natural disaster; community or social disorders; disruption of financial markets; additional measures imposed by regulatory authorities to restrict operating activities; measures imposed or taken by suppliers, contractors or sub-contractors in response to COVID-19 which could otherwise, directly or indirectly, affect our operations or projects; and additional measures that we may be required to take to protect the health and safety of our employees.

Some of these risks are described in more detail in Teck’s annual information form and in its public documents filed with Canadian securities regulatory authorities and the United States Securities and Exchange Commission. Teck assumes no obligation to revise, update these forward-looking statements after the date of this document, or revise them to reflect the occurrence of unforeseen future events, except to the extent required by securities laws applicable.

About Teck
Teck is a diversified resource company engaged in responsible mining and mining development with major business units focused on copper, steel coal, zinc and energy. Based in Vancouver, Canada, its shares are listed on the Toronto Stock Exchange under the symbols TECK.A and TECK.B and on the New York Stock Exchange under the symbol TECK. Learn more about Teck atwww.teck.comor follow@TeckResources.

Teck media contact:
Chris Stannell
Public relations manager
604.699.4368
[email protected]

Teck investor contact:
Fraser Phillips
Senior Vice President, Investor Relations and Strategic Analysis
604.699.4621
[email protected]