EXHIBIT 99.1

Teck Announces Dividend

Vancouver, B.C. – Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (“Teck”) announced today that its Board of Directors has declared an eligible dividend of $0.125 per share on its outstanding Class A common shares and Class B subordinate voting shares, to be paid on September 29, 2023 to shareholders of record at the close of business on September 15, 2023.

About Teck
As one of Canada’s leading mining companies, Teck is committed to responsible mining and mineral development with major business units focused on copper, zinc, and steelmaking coal. Copper, zinc and high-quality steelmaking coal are required for the transition to a low-carbon world. Headquartered in Vancouver, Canada, Teck’s shares are listed on the Toronto Stock Exchange under the symbols TECK.A and TECK.B and the New York Stock Exchange under the symbol TECK. Learn more about Teck at www.teck.com or follow @TeckResources.

Investor Contact:

Fraser Phillips
Senior Vice President, Investor Relations & Strategic Analysis
604.699.4621
fraser.phillips@teck.com

Media Contact:

Chris Stannell

Public Relations Manager

604.699.4368

chris.stannell@teck.com

EXHIBIT 99.2 

Teck Reports Unaudited Second Quarter Results for 2023

First copper concentrate sold and ramp-up advancing at QB2

VANCOUVER, British Columbia, July 26, 2023 (GLOBE NEWSWIRE) -- Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (Teck) today announced its unaudited second quarter results for 2023.

“We were deeply saddened to report an employee fatality in the second quarter at our Quebrada Blanca Operations. Our deepest sympathies go out to the employee's colleagues and loved ones. Learnings from the investigation are being shared across Teck and with industry peers to prevent future incidents," said Jonathan Price, CEO. “In the second quarter we achieved another major milestone at our QB2 project with the first sale of copper concentrate as we ramp up to full production later this year. We continue to explore a range of options to realize the full potential of our world-class base metals business and to progress our overall copper growth pipeline, including receiving regulatory approval for our Zafranal project in May. Strong performance from our steelmaking coal business contributed to solid financial results in the second quarter, further reinforcing the inherent value of our high-margin steelmaking coal business."

Highlights

Note:
1. This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.

Key Updates

Executing on our copper growth strategy – QB2 a long-life, low-cost operation with major expansion potential

Safety and Sustainability Leadership

Guidance

Notes:
1. This is a non-GAAP financial measure or ratio. See “Use of Non-GAAP Financial Measures and Ratios” for further information.
2. Excludes Quebrada Blanca.

Click here to view Teck’s full second quarter results for 2023.

WEBCAST

Teck will host an Investor Conference Call to discuss its Q2/2023 financial results at 11:00 AM Eastern time, 8:00 AM Pacific time, on July 27, 2023. A live audio webcast of the conference call, together with supporting presentation slides, will be available at our website at www.teck.com. The webcast will be archived at www.teck.com.

Reference:

Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analysis: 604.699.4621

Chris Stannell, Public Relations Manager: 604.699.4368

USE OF NON-GAAP FINANCIAL MEASURES AND RATIOS

Our financial results are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. This document refers to a number of non-GAAP financial measures and non-GAAP ratios which are not measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS or by Generally Accepted Accounting Principles (GAAP) in the United States.

The non-GAAP financial measures and non-GAAP ratios described below do not have standardized meanings under IFRS, may differ from those used by other issuers, and may not be comparable to similar financial measures and

ratios reported by other issuers. These financial measures and ratios have been derived from our financial statements and applied on a consistent basis as appropriate. We disclose these financial measures and ratios because we believe they assist readers in understanding the results of our operations and financial position and provide further information about our financial results to investors. These measures should not be considered in isolation or used in substitute for other measures of performance prepared in accordance with IFRS.

Adjusted profit attributable to shareholders – For adjusted profit attributable to shareholders, we adjust profit (loss) attributable to shareholders as reported to remove the after-tax effect of certain types of transactions that reflect measurement changes on our balance sheet or are not indicative of our normal operating activities.

EBITDA – EBITDA is profit before net finance expense, provision for income taxes, and depreciation and amortization.

Adjusted EBITDA – Adjusted EBITDA is EBITDA before the pre-tax effect of the adjustments that we make to adjusted profit attributable to shareholders as described above.

Adjusted profit attributable to shareholders, EBITDA, and Adjusted EBITDA highlight items and allow us and readers to analyze the rest of our results more clearly. We believe that disclosing these measures assists readers in understanding the ongoing cash generating potential of our business in order to provide liquidity to fund working capital needs, service outstanding debt, fund future capital expenditures and investment opportunities, and pay dividends.

Adjusted basic earnings per share – Adjusted basic earnings per share is adjusted profit attributable to shareholders divided by average number of shares outstanding in the period.

Adjusted diluted earnings per share – Adjusted diluted earnings per share is adjusted profit attributable to shareholders divided by average number of fully diluted shares in a period.

Gross profit before depreciation and amortization – Gross profit before depreciation and amortization is gross profit with depreciation and amortization expense added back. We believe this measure assists us and readers to assess our ability to generate cash flow from our business units or operations.

Unit costs – Unit costs for our steelmaking coal operations are total cost of goods sold, divided by tonnes sold in the period, excluding depreciation and amortization charges. We include this information as it is frequently requested by investors and investment analysts who use it to assess our cost structure and margins and compare it to similar information provided by many companies in the industry.

Adjusted site cash cost of sales – Adjusted site cash cost of sales for our steelmaking coal operations is defined as the cost of the product as it leaves the mine excluding depreciation and amortization charges, out-bound transportation costs and any one-time collective agreement charges and inventory write-down provisions.

Total cash unit costs – Total cash unit costs for our copper and zinc operations includes adjusted cash costs of sales, as described below, plus the smelter and refining charges added back in determining adjusted revenue. This presentation allows a comparison of total cash unit costs, including smelter charges, to the underlying price of copper or zinc in order to assess the margin for the mine on a per unit basis.

Net cash unit costs – Net cash unit costs of principal product, after deducting co-product and by-product margins, are also a common industry measure. By deducting the co- and by-product margin per unit of the principal product, the margin for the mine on a per unit basis may be presented in a single metric for comparison to other operations.

Adjusted cash cost of sales – Adjusted cash cost of sales for our copper and zinc operations is defined as the cost of the product delivered to the port of shipment, excluding depreciation and amortization charges, any one-time collective agreement charges or inventory write-down provisions and by-product cost of sales. It is common practice in the industry to exclude depreciation and amortization as these costs are non-cash and discounted cash flow valuation models used in the industry substitute expectations of future capital spending for these amounts.

Adjusted site cash cost of sales per tonne – Adjusted site cash cost of sales per tonne is a non-GAAP ratio comprised of adjusted site cash cost of sales divided by tonnes sold. There is no similar financial measure in our consolidated financial statements with which to compare.

Profit Attributable to Shareholders and Adjusted Profit Attributable to Shareholders

Notes:
1. Adjustments for the three and six months ended June 30, 2022 are as previously reported.
2. Adjustment required to remove the effect of discontinued operations for the three and six months ended June 30, 2022.

Reconciliation of Basic Earnings per share to Adjusted Basic Earnings per share

Reconciliation of Diluted Earnings per share to Adjusted Diluted Earnings per share

Notes:
1. Adjustments for the three and six months ended June 30, 2022 are as previously reported.
2. Adjustment required to remove the effect of discontinued operations for the three and six months ended June 30, 2022.

Reconciliation of EBITDA and Adjusted EBITDA

Notes:
1. Adjustments for the three and six months ended June 30, 2022 are as previously reported.
2. Adjustment required to remove the effect of discontinued operations for the three and six months ended June 30, 2022.

Reconciliation of Gross Profit Before Depreciation and Amortization

CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to as forward-looking statements). These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “should”, “believe” and similar expressions is intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These statements speak only as of the date of this news release.

These forward-looking statements include, but are not limited to, statements concerning: our focus and strategy; anticipated global and regional supply, demand and market outlook for our commodities; expectation that QB2 will be a long-life, low-cost operation with major expansion potential; QB2 capital cost guidance and development capital spending in 2023; expectation that cost pressures at QB2 can be mitigated, expectation that QB2 will reach ramp up to full production capacity by the end of 2023; our expectation that the Antamina MEIA will be approved in the second half of 2023; execution of our copper growth strategy; expectations regarding our QBME project, including the impact of the project and associated timing expectations for permitting, production and completion of the feasibility study; expectations regarding the NewRange joint venture, including our ability to advance permitting at the NorthMet and Mesaba deposits, our ability to have the NorthMet 404 Wetland Permit reinstated, and the timing for completion of the NorthMet feasibility study; expectations regarding the San Nicolás project, including timing for submission of the environmental impact assessment and permit application and completion of the feasibility study; expectations regarding the Highland Valley Copper 2040 project, including its potential to extend operations to at least 2044 and timing for feasibility study completion and EIA submission; expectations regarding the Zafranal project, including timing for completion of the feasibility study; expectations regarding the Galore Creek project, including advancement of the prefeasibility study; expectations regarding the advancement of Schaft Creek and NuevaUnión; expectations regarding impacts to our business from the B.C. port workers strike, including elevated transportation costs; expectations for stabilization and reduction of the selenium trend in the Elk Valley; expectations for total water treatment capacity; projected spending, including capital and operating costs, from 2023-2024 on water treatment, water management and incremental measures associated with the Direction; timing of advancement and completion of key water treatment projects; our expectation that we will increase our water treatment capacity to 127.5 million litres per day by the end of 2026; expectations regarding engagement with U.S. regulators on water quality standards; expectations regarding finance expenses for the second half of 2023; expectations regarding increased general and administrative expenses; expectations with respect to the impacts of the Chilean Mining Royalty bill; expectations regarding timing and amount of income tax payments; liquidity and availability of borrowings under our credit facilities; our ability to obtain additional credit for posting security for reclamation at our sites; all guidance appearing in this document including but not limited to the production, sales, cost, unit cost, capital expenditure, and other guidance under the heading “Guidance” and discussed in the various business unit sections; our expectations regarding inflationary pressures and increased key input costs, including profit based compensation and royalties; and expectations regarding the adoption of new accounting standards and the impact of new accounting developments.

These statements are based on a number of assumptions, including, but not limited to, assumptions disclosed elsewhere in this document and assumptions regarding general business and economic conditions, interest rates, commodity and power prices; acts of foreign or domestic governments and the outcome of legal proceedings; the supply and demand for, deliveries of, and the level and volatility of prices of copper, zinc and steelmaking coal and our other metals and minerals, as well as steel, crude oil, natural gas and other petroleum products; the timing of the receipt of permits and other regulatory and governmental approvals for our development projects and other operations, including mine extensions; positive results from the studies on our expansion and development projects; our ability to secure adequate transportation, including rail and port services, for our products; our costs of production and our production and productivity levels, as well as those of our competitors; continuing availability of water and power resources for our operations; changes in credit market conditions and conditions in financial markets generally; the availability of funding to refinance our borrowings as they become due or to finance our development projects on reasonable terms; availability of letters of credit and other forms of financial assurance acceptable to regulators for reclamation and other bonding requirements; our ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; the availability of qualified employees and contractors for our operations, including our new developments and our ability to attract and retain skilled employees; the satisfactory negotiation of collective agreements with unionized employees; the impact of changes in Canadian-U.S. dollar, Canadian dollar-Chilean Peso and other foreign exchange rates on our costs and results; engineering and construction timetables and capital costs for our development and expansion projects; our ability to develop technology and obtain the benefits of technology for our operations and development projects; closure costs; environmental compliance costs; market competition; the accuracy of our mineral reserve and resource estimates (including with respect to size, grade and recoverability) and the geological, operational and price assumptions on which these are based; tax benefits and tax rates; the outcome of our coal price and volume negotiations with customers; the outcome of our copper, zinc and lead concentrate treatment and refining charge negotiations with customers; the resolution of environmental and other proceedings or disputes; our ability to obtain, comply with and renew permits, licenses and leases in a timely manner; and our ongoing relations with our employees and with our business and joint venture partners.

In addition, assumptions regarding the Elk Valley Water Quality Plan include assumptions that additional treatment will be effective at scale, and that the technology and facilities operate as expected, as well as additional assumptions discussed under the heading “Elk Valley Water Management Update.” Assumptions regarding QB2 include current project assumptions and assumptions regarding the final feasibility study, estimates of future construction capital at QB2 are based on a CLP/USD rate range of 800 — 850, as well as there being no further unexpected material and negative impact to the various contractors, suppliers and subcontractors for the QB2 project that would impair their ability to provide goods and services as anticipated during commissioning and ramp-up activities. Statements regarding the availability of our credit facilities are based on assumptions that we will be able to satisfy the conditions for borrowing at the time of a borrowing request and that the facilities are not otherwise terminated or accelerated due to an event of default. Assumptions regarding the costs and benefits of our projects include assumptions that the relevant project is constructed, commissioned and operated in accordance with current expectations. Expectations regarding our operations are based on numerous assumptions regarding the operations. Our Guidance tables include disclosure and footnotes with further assumptions relating to our guidance, and assumptions for certain other forward-looking statements accompany those statements within the document. Statements concerning future production costs or volumes are based on numerous assumptions regarding operating matters and on assumptions that demand for products develops as anticipated, that customers and other counterparties perform their contractual obligations, that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts and supplies, labour disturbances, interruption in transportation or utilities, or adverse weather conditions, and that there are no material unanticipated variations in the cost of energy or supplies. Statements regarding anticipated steelmaking coal sales volumes and average steelmaking coal prices depend on timely arrival of vessels and performance of our steelmaking coal-loading facilities, as well as the level of spot pricing sales. The foregoing list of assumptions is not exhaustive. Events or circumstances could cause actual results to vary materially.

Factors that may cause actual results to vary materially include, but are not limited to, changes in commodity and power prices; changes in market demand for our products; changes in interest and currency exchange rates; acts of governments and the outcome of legal proceedings; inaccurate geological and metallurgical assumptions (including with respect to the size, grade and recoverability of mineral reserves and resources); operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of labour, materials and equipment, government action or delays in the receipt of government approvals, changes in royalty or tax rates, industrial disturbances or other job action, adverse weather conditions and unanticipated events related to health, safety and environmental matters); union labour disputes; impact of COVID-19 and related mitigation protocols; political risk; social unrest; failure of customers or counterparties (including logistics suppliers) to perform their contractual obligations; changes in our credit ratings; unanticipated increases in costs to construct our development projects; difficulty in obtaining permits; inability to address concerns regarding permits or environmental impact assessments; and changes or further deterioration in general economic conditions. The amount and timing of capital expenditures is depending upon, among other matters, being able to secure permits, equipment, supplies, materials and labour on a timely basis and at expected costs. Certain operations and projects are not controlled by us; schedules and costs may be adjusted by our partners, and timing of spending and operation of the operation or project is not in our control. Certain of our other operations and projects are operated through joint arrangements where we may not have control over all decisions, which may cause outcomes to differ from current expectations.

Current and new technologies relating to our Elk Valley water treatment efforts may not perform as anticipated, and ongoing monitoring may reveal unexpected environmental conditions requiring additional remedial measures. QB2 costs, commissioning and commercial production is dependent on, among other matters, our continued ability to advance commissioning and ramp-up as currently anticipated and successfully manage through any remaining impacts of COVID-19, including but not limited to absenteeism and lowered productivity. QB2 costs may also be affected by claims and other proceedings that might be brought against us relating to costs and impacts of the COVID-19 pandemic. Production at our Red Dog Operations may also be impacted by water levels at site. Sales to China may be impacted by general and specific port restrictions, Chinese regulation and policies, and normal production and operating risks. The forward-looking statements in this news release and actual results will also be impacted by the continuing effects of COVID-19 and related matters, particularly if there is a further resurgence of the virus.

We assume no obligation to update forward-looking statements except as required under securities laws. Further information concerning risks, assumptions and uncertainties associated with these forward-looking statements and our business can be found in our Annual Information Form for the year ended December 31, 2022, filed under our profile on SEDAR (www.sedar.com) and on EDGAR (www.sec.gov) under cover of Form 40-F, as well as subsequent filings that can also be found under our profile.

Scientific and technical information in this quarterly report regarding our coal properties, which for this purpose does not include the discussion under “Elk Valley Water Management Update” was reviewed, approved and verified by Jo-Anna Singleton, P.Geo. and Cameron Feltin, P.Eng., each an employee of Teck Coal Limited and a Qualified Person as defined under National Instrument 43-101. Scientific and technical information in this quarterly report regarding our other properties was reviewed, approved and verified by Rodrigo Alves Marinho, P.Geo., an employee of Teck and a Qualified Person as defined under National Instrument 43-101.

EXHIBIT 99.3

Teck Reports Unaudited Second Quarter Results for 2023

First copper concentrate sold and ramp-up advancing at QB2

Vancouver, B.C. – Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (Teck) today announced its unaudited second quarter results for 2023.

“We were deeply saddened to report an employee fatality in the second quarter at our Quebrada Blanca Operations. Our deepest sympathies go out to the employee's colleagues and loved ones. Learnings from the investigation are being shared across Teck and with industry peers to prevent future incidents," said Jonathan Price, CEO. “In the second quarter we achieved another major milestone at our QB2 project with the first sale of copper concentrate as we ramp up to full production later this year. We continue to explore a range of options to realize the full potential of our world-class base metals business and to progress our overall copper growth pipeline, including receiving regulatory approval for our Zafranal project in May. Strong performance from our steelmaking coal business contributed to solid financial results in the second quarter, further reinforcing the inherent value of our high-margin steelmaking coal business."

Highlights

Note:

All dollar amounts expressed in this news release are in Canadian dollars unless otherwise noted.

Additional corporate information is available at www.teck.com.

Financial Summary Q2 2023

Note:

Key Updates

Executing on our copper growth strategy – QB2 a long-life, low-cost operation with major expansion potential

Safety and Sustainability Leadership

Notes:

Management's Discussion and Analysis

This management’s discussion and analysis is dated as at July 26, 2023 and should be read in conjunction with the unaudited condensed interim consolidated financial statements of Teck Resources Limited (“Teck”) and the notes thereto for the three and six months ended June 30, 2023 and with the audited consolidated financial statements of Teck and the notes thereto for the year ended December 31, 2022. In this news release, unless the context otherwise dictates, a reference to “the company” or “us,” “we” or “our” refers to Teck and its subsidiaries. Additional information, including our Annual Information Form and Management’s Discussion and Analysis for the year ended December 31, 2022, is available on SEDAR at www.sedar.com.

This document contains forward-looking statements. Please refer to the cautionary language under the heading “CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION” below.

Overview

Note:

Note:

Profit Attributable to Shareholders and Adjusted Profit Attributable to Shareholders

In the second quarter, profit from continuing operations attributable to shareholders was $510 million, or $0.98 per share, compared to $1.6 billion, or $2.95 per share, in the same period last year. The decrease compared with a year ago is primarily due to lower prices for our principal products, particularly steelmaking coal. The lower prices were partially offset by a weaker Canadian dollar in the second quarter as compared with a year ago.

Adjusted profit attributable to shareholders1 in the second quarter, taking into account the items identified in the table below, was $643 million, or $1.24 per share, compared with $1.8 billion, or $3.30 per share, in the second quarter of 2022. The most significant second quarter adjustments to profit, reflected in the table below, were after-tax expenses of $67 million resulting from the impact of the valuation of the preferential dividend on the shares in the QB2 project company held by ENAMI and $42 million of share-based compensation, partly offset by an after-tax gain of $81 million relating to the Elkview business interruption insurance claim.

Notes:

In addition to the items identified in the table above, our results include gains and losses due to changes in market prices in respect of pricing adjustments. Pricing adjustments resulted in $108 million of after-tax losses ($172 million, before tax) in the second quarter, or $0.21 per share.

Notes:

BUSINESS UNIT RESULTS

Our revenue, gross profit, and gross profit before depreciation and amortization1 by business unit are summarized in the table below.

Note:

COPPER BUSINESS UNIT

Performance

Gross profit from our copper business unit was $205 million in the second quarter compared with $450 million a year ago. Gross profit decreased from a year ago (see table below) primarily due to a decline in realized copper prices, lower production and sales volumes, and higher unit operating costs2 as expected in our annual unit cost2 guidance.

Copper production of 64,300 tonnes in the second quarter was 10% lower than a year ago as a result of lower production from Highland Valley Copper and Antamina. Production from Highland Valley Copper was primarily impacted by harder ore and lower grades, as well as unplanned maintenance. Antamina's production was impacted by lower grades and a reduction of mill throughput at the beginning of the second quarter in order to manage storage capacities as a result of logistics issues caused by Cyclone Yaku.

The table below summarizes the change in gross profit in our copper business unit for the quarter:

Notes:

Property, plant and equipment expenditures in the second quarter totaled $1.0 billion, including $84 million for sustaining capital and $709 million for project development expenditures for QB2. Capitalized stripping costs were $95 million in the second quarter, $20 million higher than a year ago, as expected in QB2 start up.

Markets

LME copper prices remained above long-term historic trends. Prices in the second quarter declined by 11% compared with the same period a year ago. Global demand for copper was well supported in the second quarter, with Chinese imports of copper concentrates and cathodes each increasing approximately 1.7% over the same period in 2022.

The tightness in the copper concentrate market continued to ease through the second quarter with spot treatment charges rising above the 2023 annual contract terms. Favourable terms for smelters have led to a rise in concentrate imports into China, up 8.5% year to date. Peruvian mine production continues to recover, while Chilean mine production continues to struggle, to return to pre-COVID-19 levels. Global stocks of copper cathode on exchange at the end of the second quarter were 2.3 days of global consumption compared to the long-term average of 11 days, and are the lowest exchange stock levels in days of consumption since 2005. Stocks on exchanges and in bonded warehouses in China decreased by 201,000 tonnes in the second quarter following the first quarter seasonal stock build. Total visible stocks, including bonded stocks, continue to remain at low levels at 3.1 days of consumption, compared to a long-term average of 14.5 days.

Operations

Highland Valley Copper

Copper production of 24,000 tonnes in the second quarter was 7,000 tonnes lower than a year ago due to harder ore and lower copper grade, as expected in the mine plan, as well as unplanned mill maintenance. Copper sales volumes of 25,000 tonnes in the second quarter were 8,700 tonnes lower than a year ago reflecting the lower production levels. Second quarter molybdenum production of 232,000 pounds was 169,000 pounds higher than a year ago. The lower production in the second quarter of 2022 was a result of downtime in the molybdenum leach circuit.

Operating costs were $197 million in the second quarter, or $17 million higher than a year ago before changes in inventory. The increase in operating costs was due to increased consumable costs and maintenance costs on the haul truck fleet to improve availability, and on unplanned mill maintenance.

Copper production in the second half of 2023 is expected to be strong as a result of work being completed to improve haul truck availability and improved mill operations and there has been no change in our previously disclosed 2023 annual production guidance for Highland Valley Copper.

Antamina

Copper production (100% basis) of 112,200 tonnes in the second quarter was 9,600 tonnes lower than a year ago. The decrease in production was primarily due to lower copper grades, as well as reduced milling rates in order to manage concentrate storage facilities as a result of logistics issues caused by Cyclone Yaku in early April. The mix of mill feed in the quarter was 51% copper-only ore and 49% copper-zinc ore, compared with 57% copper-only ore and 43% copper-zinc ore, a year ago. Zinc production (100% basis) of 136,700 tonnes in the second quarter was 39,600 tonnes higher than a year ago, as expected in the mine plan.

Operating costs, before changes in inventory, were US$87 million (22.5% share) in the second quarter, US$4 million lower than a year ago due to lower workers' participation payments.

In 2022, Antamina submitted a Modification of Environmental Impact Assessment (MEIA) to Peruvian regulators to extend its mine life from 2028 to 2036. The regulatory review process is progressing as scheduled, with approval anticipated in the second half of 2023.

Carmen de Andacollo

Copper production of 10,200 tonnes in the second quarter was 500 tonnes lower than a year ago. Production was impacted by blasting restrictions, which resulted in treating a higher proportion of low recovery transition ore.

Operating costs, before changes in inventory, in the second quarter of US$75 million were US$13 million higher than a year ago due to treating lower recovery transition ore and higher power prices.

Quebrada Blanca (including QB2)

At QB2, we completed the first shipment and sale of copper concentrate in the second quarter and continued to progress production ramp-up. Line 1 is operating well as per expectations, and Line 2 is in commissioning. The concentrate pipeline, concentrate filter plant and storage systems are in operation at the port. We continue to expect to achieve full production rates by the end of 2023, and our previously disclosed capital cost guidance for QB2 of US$8.0 to $8.2 billion is unchanged.

Due to delays in construction and commissioning, our 2023 annual production guidance for QB2 has been updated to 80,000 tonnes to 100,000 tonnes. Our previously disclosed 2024 — 2026 annual production guidance for QB2 is unchanged.

Copper cathode production was 2,000 tonnes in the second quarter compared with 2,400 tonnes a year ago.

Cost of Sales

Cost of sales was $528 million in the second quarter compared with $523 million in the same period last year. Total cash unit costs1 of product sold in the second quarter, before cash margins for by-products1, of US$2.33 per pound were US$0.35 per pound higher than the same period a year ago. This was due to the effect of lower production levels and higher consumables costs, specifically for power, as well as higher maintenance and repair costs. Cash margins for by-products1 were US$0.41 per pound compared with US$0.51 per pound in the same period a year ago with the decrease primarily due to lower zinc prices. Total net cash units costs1 for copper, after cash margins for by-products1, of US$1.92 per pound were US$0.45 per pound higher than the same period a year ago. Although copper unit costs1 in the second quarter were above our annual guidance range, the variance is timing related, and our annual guidance range is unchanged.

Notes:

Outlook

Our 2023 annual guidance for our copper business unit is outlined in our guidance tables on pages 28 — 32 and is unchanged from our previously issued guidance, with the exception of annual copper production guidance as a result of the change in QB2 production, as described above. QB2 molybdenum production guidance for 2023 is consistent with our previously disclosed guidance and is expected to commence in the fourth quarter of 2023.

We continue to expect QB2 to reach full production rates by end of the 2023. As a result of recent changes to IFRS, we are required to recognize sales proceeds and related costs associated with products sold during the ramp-up and commissioning phase of QB2 through earnings rather than capitalizing these amounts, as has been previous practice. As previously disclosed, we expect this to increase our unit operating costs for QB2 during ramp-up. We will recognize any losses through earnings prior to achieving commercial production. As a result, we do not expect to generate significant gross profit from QB2 in the third quarter of 2023, despite the ramp-up in production rates.

Copper Growth

In the second quarter, we continued to advance our copper growth strategy with prudent investments in our industry-leading copper growth portfolio. Important milestones included the receipt of the Social Environmental Impact Assessment (SEIA) permit and authorization for the Zafranal copper-gold development project in Peru, the start of significant equipment salvage and recycling program at NewRange Copper Nickel’s NorthMet historic brownfield plant site, startup of significant seasonal drilling, metallurgical and geotechnical programs, and social and environmental baseline programs at Galore Creek and Schaft Creek. In addition, we made meaningful advances in study work, community engagement and permitting across all of the assets. Our copper growth strategy balances growth and return of capital with maintaining a strong balance sheet, and is informed by setting milestone objectives with prudent investment plans to de-risk development of each of the assets, including permitting.

The following are the targeted upcoming key milestones related to each asset in our copper growth portfolio, with more details included below:

The feasibility study for the QBME project, which entails an increase in concentrator throughput of approximately 50% with the addition of one identical semi-autogenous grinding line, continues to advance as planned. This configuration will optimize the timeline to progress the development of the orebody, while leveraging existing infrastructure to maximize capital efficiency. The feasibility study, initiated in mid-2022, is expected to be completed in the second half of 2023. In the second quarter, we continued to progress the permitting process and submitted responses to the initial inquiries from the regulator. QBME is expected to be a significant contributor to our near-term copper growth portfolio.

The NewRange Copper Nickel joint venture (NewRange) was formed late in the first quarter of 2023 and brings together two large, well-defined mineral resources in the established Iron Range mining region of Minnesota, USA under a new leadership and management team. The management team is now focused on resolving outstanding permitting issues and advancing development of the NorthMet deposit as well as permitting of the Mesaba deposit to deliver critical minerals copper, nickel, cobalt, platinum and palladium. Updates to the NorthMet feasibility study are ongoing, including design, construction, execution plans and cost estimates and is expected to be completed by the first half of 2024. In addition, the team is managing a significant equipment salvage and recycling program at NewRange’s NorthMet historic brownfield plant site, which commenced in June 2023. Efforts are underway to reinstate the NorthMet 404 Wetland Permit revoked by the U.S. Army Corps of Engineers, which is the first negative permitting result on the NorthMet project since receipt of the original EIA in 2018. The management team is working with local, state, and federal officials, Indigenous Peoples, communities of interest and supporters of the project, including organized labour, to have the 404 Wetland Permit reinstated.

On April 6, 2023, we announced that Teck and Agnico Eagle formed a joint venture by way of earn-in agreement to advance the San Nicolás copper-zinc development project located in Zacatecas, Mexico. During the second quarter, Teck and Agnico Eagle began to operationalize the 50/50 joint venture governance model, which has each partner working together to advance permitting and development of the project. The joint venture partners are targeting completion of the feasibility study in the first half of 2024 and have finalized the Environmental Impact Assessment permit application with plans to submit it to the Mexican regulator in the third quarter of 2023.

At Highland Valley Copper, work continues on a feasibility study, detailed social baseline studies, community discussions and related environmental permitting work for our HVC 2040 project, which has the potential to extend operations to at least 2044. Completion of the feasibility study, expected in the second half of 2023, is running in parallel to community discussions and an EIA submission is planned in the second half of 2023.

On May 12, 2023, we announced the receipt of the SEIA permit and authorization for the Zafranal copper-gold development project in Peru from SENACE, Peru's National Service of Environmental Certification for Sustainable Investments. In addition, the project team is advancing updates to the capital and operating cost estimates from the January 2020 feasibility study, which we expect to complete in the second half of 2023. Following completion of the updated capital and operating cost estimates, we intend to commence detailed engineering studies later in 2023.

At the Galore Creek copper-gold-silver deposit located in northwestern B.C., Teck and its partner Newmont Corporation continue to advance prefeasibility study work on the project which is expected to conclude in the second half of 2023. A substantial seasonal field campaign, comprised of resource, geotechnical, and metallurgical drilling, extensive environmental baseline studies, and targeted site investigations, commenced in late May 2023, which is planned to continue into early October 2023 in support of planned permitting activities and completion of the prefeasibility study.

Strategic, technical and commercial assessments, including focused field programs, permitting and community engagement work for the advancement of Schaft Creek and NuevaUnión are ongoing.

ZINC BUSINESS UNIT

Notes:

Performance

Gross profit from our zinc business unit was $105 million in the second quarter compared with $156 million a year ago. Gross profit decreased compared with a year ago (see table below) primarily due to lower zinc prices and higher unit operating costs. These items were slightly offset by higher zinc premiums on our refined zinc sales.

At our Red Dog Operations, zinc production of 133,700 tonnes in the second quarter decreased by 7% from a year ago, while lead production increased by 12% compared with the same period a year ago. The decrease in zinc production was driven by lower grades, as expected in the mine plan, and power system availability. At our Trail Operations, refined zinc and refined lead production were 3% and 12% lower, respectively, than a year ago. Refined zinc production was impacted by planned maintenance and by issues in commissioning the new automated equipment to cast zinc. Refined lead production was impacted by unplanned maintenance resulting from boiler leaks. The boiler has reached the end of its life and replacement is planned in 2024.

The table below summarizes the change in gross profit in our zinc business unit for the quarter.

Property, plant and equipment expenditures in the second quarter totaled $55 million, including $32 million for sustaining capital, of which $15 million relates to our Trail Operations and $17 million relates to our Red Dog Operations.

Markets

The refined zinc market came under pressure in the second quarter as metal imports from Asia into Europe and North America pushed zinc prices and premiums lower. Premiums have remained above normal historic levels, however, and they were 20% lower in Europe and 6% lower in North America compared to the first quarter of 2023. Prices for zinc on the London Metals Exchange in the second quarter averaged US$1.15 per pound, a decline from record highs in the second quarter of 2022 of US$1.78 per pound. Zinc prices continue to be impacted by poor macro economic conditions in North America and Europe and slower than expected Chinese economic growth. Automotive sales and production continued to improve in the second quarter with several regions approaching near-historic levels. Physical demand for zinc metal for use in preserving steel for infrastructure applications and renewable energy remains well supported.

The zinc concentrate market continued to improve with spot treatment charges falling in the second quarter, as Chinese buyers continued to restock and most European smelters maintained normal production. Imports of zinc concentrates to China have increased 24% through to May compared with 2022. Imports over the last twelve months reached 2.04 million tonnes, which is the highest rolling twelve month level since 2009.

LME zinc stocks rose by 35,750 tonnes in the second quarter and are up 131% over the end of last year, while stocks held on the Shanghai Futures Exchange (SHFE) fell 37,880 tonnes over the same period. Total global exchange stocks remained well below historical levels, ending the quarter at 3.6 days of global consumption, compared to the 25-year average of 17.2 days. We estimate that total reported global stocks, which include LME, SHFE and bonded stocks, fell by approximately 2,000 tonnes in the second quarter to less than 145,000 tonnes at the end of the quarter, representing an estimated 3.8 days of global demand, compared to the 25-year average of 18.2 days.

Operations

Red Dog

Zinc production decreased to 133,700 tonnes in the second quarter compared with 143,800 tonnes a year ago. The lower production was due to lower zinc grade, as expected in the mine plan, and an unplanned five day shutdown due to power system availability at the beginning of the quarter. Zinc sales volumes of 60,000 tonnes were 8% higher in the second quarter compared to a year ago due to the timing of sales.

Red Dog zinc production is expected to improve in the second half of the year due to increased mill throughput, combined with higher grade and recovery.

Lead production of 23,500 tonnes in the second quarter was 2,500 tonnes higher than a year ago as a result of higher lead grade, as expected in the mine plan. Recovery was lower than plan due to lead solubility in the feed material. This is expected to extend to the second half of the year and as such, we have reduced our 2023 annual production guidance for lead to 95,000 tonnes to 110,000 tonnes from our previous guidance of 110,000 tonnes to 125,000 tonnes. The reduced lead production will increase our net cash unit costs1 for zinc, but we still expect to be within our previously disclosed 2023 annual guidance unit cost1 range.

Operating costs, before inventory changes, in the second quarter were US$116 million, or US$13 million higher than a year ago. The higher costs were expected in our 2023 unit cost1 guidance and reflect the inflationary pressures of annual supplies such as diesel and the timing of shipping.

Trail Operations

Refined zinc production of 67,900 tonnes in the second quarter was 2,300 tonnes lower than a year ago and was impacted by the planned roaster shutdown and commissioning the new automated equipment to cast zinc. Refined lead production of 16,200 tonnes in the second quarter was 2,200 tonnes lower than a year ago, and was impacted by unplanned KIVCET boiler repairs. Due to the ongoing repairs required, the replacement of the boiler will occur in 2024 instead of 2026. Based on this decision, we are expecting a reduction of by-product production in 2024, which will result in lower profitability. We will also be building up working capital as our zinc circuit will still be in operation and our zinc residue will be included in inventory and treated once KIVCET is back in operation.

Operating costs, before changes in inventory, in the second quarter were 7% higher than a year ago at $156 million, primarily due to planned maintenance cost relating to the zinc roaster.

Cost of Sales

Cost of sales was $427 million in the second quarter compared with $477 million a year ago, with the decrease driven by lower concentrate purchases at our Trail Operations, partially offset by higher maintenance costs. Total cash unit costs1 of product sold in the second quarter for Red Dog, before cash margins for by-products1, were US$0.66 per pound. This was US$0.18 per pound higher than a year ago and within our annual unit cost1 guidance, and was primarily driven by the increased cost of diesel and consumables, as expected. Net cash unit costs1 for zinc in the second quarter, after cash margin for by-products1 of US$0.65 per pound were US$0.21 per pound higher compared with a year ago, as expected in our annual guidance. Although second quarter unit costs1 are above our annual guidance range, the variance is related to the timing of sales, and as such, our annual guidance range is unchanged.

Note:

Note:

Outlook

Our 2023 annual guidance for our zinc business unit is outlined in our guidance tables on pages 28 — 32 and has been updated to reduce production guidance for lead contained in concentrate, as outlined above. There are no other changes to our previously disclosed guidance for our zinc business unit.

The Red Dog shipping season commenced on July 4, 2023. We currently expect sales of Red Dog zinc in concentrate to be in the range of 240,000 to 280,000 tonnes in the third quarter of 2023, reflecting the normal seasonal pattern of Red Dog sales.

STEELMAKING COAL BUSINESS UNIT

Note:

Performance

Gross profit in the second quarter from our steelmaking coal business unit was $1.1 billion compared with $2.5 billion a year ago (see table below), due to a significant decline in steelmaking coal prices, which reached all-time highs in the same period last year. Realized steelmaking coal prices in the second quarter remained above historical averages at US$264 per tonne.

Second quarter sales volumes were 6.2 million tonnes, within our previously announced guidance and similar to the same period a year ago. The logistics chain performed well during the quarter, drawing down steelmaking coal inventories as anticipated.

The table below summarizes the change in gross profit in our steelmaking coal business unit for the quarter:

Property, plant and equipment expenditures were $189 million in the second quarter, which included $19 million associated with water projects. Capitalized stripping costs were $120 million in the second quarter compared with $162 million in the same period last year due to expected low stripping activities associated with higher raw coal release in the quarter.

Markets

The FOB Australia price assessments in the second quarter, lagged by one month, averaged US$283 per tonne. This was a decrease from US$315 per tonne in the first quarter of 2023 and down from US$527 per tonne in the second quarter of 2022. Steelmaking coal prices began to stabilize in April 2023 after a period of declining prices, as Australian seaborne exports picked up compared to earlier this year, while there were limited spot transactions. Despite the recent increase in seaborne export levels, annualized Australian exports through May were lower again for the fourth consecutive year. At the same time, demand for steelmaking coal remained resilient, with annualized seaborne imports from key markets through May slightly higher than full year 2019, before the COVID-19 pandemic.

The CFR China price assessments for the second quarter averaged US$242 per tonne compared to US$328 per tonne in the first quarter of 2023 and US$405 per tonne in the second quarter of 2022. Year to date, Chinese steel exports climbed to a 7-year high due to lower than expected domestic steel demand and increased steel production. Recent policy announcements aimed at strengthening the Chinese property sector have yet to be reflected in demand.

Operations

Second quarter steelmaking coal production of 5.8 million tonnes was 9% higher than a year ago. The increase was largely attributable to only one planned maintenance outage in the second quarter, compared to both of our largest operations undergoing maintenance in the same period last year. Overall plant reliability improved relative to the second quarter of 2022, although we did experience intermittent challenges.

Total material movement during the second quarter was 7% lower than the same period a year ago. The decrease was due to longer waste haul distances. However, raw coal mined increased by 20%, which provides our operations with strong raw coal inventories to keep our plants fully utilized. Equipment hours were in-line with the second quarter of 2022, as our workforce levels and equipment utilization continue to stabilize.

Cost of Sales

Cost of sales was $1.2 billion in the second quarter, consistent with the same period last year, and our adjusted site cash cost of sales1 was $94 per tonne compared with $95 per tonne a year ago. Our adjusted site cash cost of sales1 was slightly lower than the same period a year ago due to favourable mining drivers and higher yields.

Transportation unit costs1 in the second quarter were $47 per tonne compared to $46 per tonne in the same quarter last year. The transportation cost increase was driven by higher number of vessels at anchor to start the quarter, decreasing back to normal levels at the end of the quarter. Transportation unit costs1 are expected to decline in the second half of the year with lower anticipated demurrage, as planned.

Note:

The tables below report the components of our unit costs in Canadian and equivalent U.S. dollars.

Note:

Our total cost of sales for the quarter also included a $23 per tonne charge for the amortization of capitalized stripping costs and $22 per tonne for other depreciation.

Outlook

Our steelmaking coal business is well positioned to deliver strong financial performance in the second half of 2023, with our operations and logistics chain performing at planned operating levels. Our 2023 annual guidance for our steelmaking coal business unit is outlined in our guidance tables on pages 28 — 32 and is unchanged from our previously issued guidance. Due to lower than anticipated production levels in the second quarter associated with intermittent plant reliability challenges, we expect annual production to be at the lower end of the guidance range.

With steelmaking coal inventories exiting the second quarter at low levels, third quarter sales are expected to be between 5.6 and 6.0 million tonnes as we undertake planned maintenance shutdown activities at two of our operations during the third quarter.

We have experienced minimal impacts to our business from the B.C. port workers strike initiated at the start of July. However, we continue to monitor the situation as it remains fluid. An ongoing or unresolved labour disruption could reduce our sales volumes in the third quarter should congestion or interruptions extend beyond our ability to mitigate. We expect higher than anticipated transportation costs while we utilize our additional port capacity to deliver on customer commitments. However, our previously disclosed 2023 transportation unit cost guidance is unchanged.

Elk Valley Water Management Update

We continue to implement the water quality management measures required by the Elk Valley Water Quality Plan (the Plan). The Plan establishes short, medium, and long-term water quality targets for selenium, nitrate, sulphate and cadmium to protect the environment and human health.

Our 2023 priorities include the ramp up of our current 77.5 million litres per day constructed water treatment capacity to designed operating rates by the end of the year, a fourfold increase from 2020. With this additional capacity, we expect to achieve one of the primary objectives of the Plan: stabilizing and reducing the selenium trend in the Elk Valley.

Our 2023 and 2024 guidance related to sustaining capital investment in water treatment facilities, water management (source control, calcite management and tributary management) and the incremental measures required under the October 2020 Direction issued by Environment and Climate Change Canada (the Direction) are unchanged from our previously issued guidance. Key projects include the Line Creek Operations (LCO) Line Creek Water Management Project, the LCO Dry Creek Water Treatment Project, the Fording River North 1 Phase 3 Saturated Rock Fill (SRF), and the advancement of the Fording River North 2 Phase 1 SRF, which is expected to increase treatment capacity in the north Elk Valley earlier than previously planned. The continued investment in water treatment during this time frame is expected to further increase our constructed water treatment capacity to 127.5 million litres per day by the end of 2026.

Final costs of implementing the Plan and other water quality initiatives will depend in part on the technologies applied, on regulatory developments and on the results of ongoing environmental monitoring and modelling. The timing of expenditures will depend on resolution of technical issues, permitting timelines and other factors. Certain cost estimates to date are based on limited engineering. Implementation of the Plan also requires additional operating permits. We expect that, in order to maintain water quality, some form of water treatment will continue for an indefinite period after mining operations end. The Plan contemplates ongoing monitoring to ensure that the water quality targets set out in the Plan are protective of the environment and human health, and provides for adjustments if warranted by monitoring results. Proposed amendments to the Plan are under discussion with provincial regulators and Indigenous communities.

The state of Montana's water quality standard for the Koocanusa Reservoir downstream of our mining operations has been set aside on procedural grounds. We continue to engage with U.S. regulators to work towards the establishment of appropriate science-based standards for the reservoir. Ongoing monitoring, as well as our continued research into treatment technologies, could reveal unexpected environmental impacts, technical issues or advances associated with potential treatment technologies. This could substantially increase or decrease both capital and operating costs associated with water quality management or could materially affect our ability to permit mine life extensions in new mining areas.

OTHER OPERATING INCOME AND EXPENSES

Other operating expense, net of other income, was $214 million in the second quarter compared with $373 million a year ago. Significant items in the second quarter included $172 million of negative settlement pricing adjustments and $56 million of share based compensation expense, partly offset by a $117 million gain relating to the Elkview business interruption insurance claim.

The table below outlines our outstanding receivable positions, which are valued using provisional prices at March 31, 2023 and June 30, 2023.

Our finance expense includes the interest expense on our debt, on advances to QBSA from SMM/SC and on lease liabilities, letters of credit and standby fees, the interest components of our pension obligations and accretion on our decommissioning and restoration provisions, less any interest that we capitalize against our development projects. Our finance expense of $67 million in the second quarter was $21 million higher the same period last year partly due to higher accretion for our decommissioning and restoration provision. In the fourth quarter of 2023, we expect our finance expense to increase compared to 2022 as we capitalize lower borrowing cost amounts relating to the development of QB2.

Our non-operating expense was $211 million in the second quarter compared with $101 million in the same period last year. The most significant item in the quarter was a $112 million loss on the changes to the carrying value of the financial liability for the preferential dividend stream to ENAMI. The carrying value of this financial liability is most significantly affected by copper prices and the interest rate on the subordinated loans provided by us and SMM/SC to QBSA, which affect when QBSA repays the loans. In addition, we expensed approximately $40 million in relation to the remeasurement of the financial liability associated with Teck's indirect exposure to the remaining term of a downstream pipeline take or pay toll commitment related to the sale of our interest in Fort Hills.

Our general and administration expenses of $82 million in the second quarter were $32 million higher than the same period last year as we invest in digital tools and systems to enhance productivity across our business. General and administration expenses are expected to continue at current levels through the balance of 2023.

Income Taxes

Provision for income and resource taxes was $336 million, or 42% of pre-tax profit. Our rate is higher than the Canadian statutory income tax rate of 27% due to resource taxes and higher taxes in some foreign jurisdictions. In the second quarter, the loss on the carrying value of the ENAMI preferential dividend stream, which is not deductible for tax purposes, contributed to increasing our overall effective tax rate by an additional 4%.

The Chilean Congress approved the new Mining Royalty bill on May 17, 2023. However, as of June 30, 2023, the President has not yet signed it into law and, therefore, there is no financial statement impact this quarter as the bill of law is not yet substantially enacted. Upon enactment, we expect to record an estimated $98 million charge to deferred income tax expense and a corresponding increase to deferred income tax liabilities. Due to the tax stability agreements we have in place with the Chilean government for Carmen de Andacollo and Quebrada Blanca, we will continue to be subject to the current Specific Mining Tax regime until the end of 2027 and 2037, respectively, before we are subject to the new Mining Royalty regime.

We are subject to and pay cash income and resource taxes in all jurisdictions. In the first quarter of this year, we began making monthly statutory minimum Canadian income tax instalments. Due to income inclusion timing rules related to the partnerships through which our Canadian steelmaking coal and copper operations are held, previously deferred Canadian income taxes of approximately $625 million associated with our 2022 earnings will be payable in February 2024, together with the final tax payment associated with our 2023 earnings.

FINANCIAL POSITION AND LIQUIDITY

Our financial position and liquidity remain strong. Our debt position, net debt2, and credit ratios are summarized in the table below:

Notes:

Our liquidity was $7.0 billion as at July 26, 2023, including $1.7 billion of cash.

On June 15, 2023, we made the first scheduled debt repayment on our senior QB2 project finance facility. Semi-annual payments of US$147 million are required on June 15 and December 15 over the next 8.5 years.

We maintain various committed and uncommitted credit facilities for liquidity and for the issuance of letters of credit. Our US$4.0 billion committed revolving credit facility is a sustainability-linked facility, which involves pricing adjustments that are aligned with our sustainability performance and strategy. Our sustainability performance over the term of the facility is measured by Greenhouse Gas (GHG) intensity, percentage of women in Teck's workforce, and safety. This facility does not contain an earnings or cash flow-based financial covenant, a credit rating trigger or a general material adverse effect borrowing condition. The only financial covenant under our bank agreements is a requirement for our adjusted net debt to capitalization ratio not to exceed 60%. That ratio was 17% at June 30, 2023.

Antamina maintains a US$1.0 billion loan agreement that matures in July 2026. Our 22.5% share of the loan is US$225 million. The loan is non-recourse to us and the other Antamina owners.

We also have various other uncommitted credit facilities, standby letters of credit and surety bonds that primarily secure our reclamation obligations. The amounts issued under these facilities totaled approximately $3.5 billion at June 30, 2023. We may be required to post additional security in respect of reclamation at our sites in future periods as additional land is disturbed, regulatory requirements change or closure plans are updated.

Operating Cash Flow

Cash flow from operations in the second quarter was $1.1 billion compared with $2.9 billion a year ago. The decrease reflects lower prices for our primary products, most significantly steelmaking coal, which reached record highs in the second quarter of 2022.

During the second quarter, changes in working capital items were a source of cash of $81 million compared with $301 million a year ago.

Investing Activities

Expenditures on property, plant and equipment were $1.3 billion in the second quarter, including $709 million for the QB2 project and $309 million of sustaining capital. The largest components of sustaining capital expenditures were $186 million at our steelmaking coal operations, $37 million at Quebrada Blanca and $24 million at Antamina.

Capitalized production stripping costs were $235 million in the second quarter compared with $255 million a year ago. The majority of this represents the advancement of pits for future production at our steelmaking coal operations and initial pre-stripping activities at Quebrada Blanca to ready the operations.

The table below summarizes our year-to-date capital spending for 2023:

Financing Activities

In the second quarter, we made our first semi-annual repayment on the QB2 project finance facility of US$147 million, as outlined above.

Interest and various finance fees paid in the second quarter, including amounts capitalized, totaled $247 million, $141 million higher than year ago. Our higher financing costs reflect the increased borrowing costs related to the development of QB2, which was partly offset by lower balances on our public notes as a result of purchases made in 2022.

In the second quarter, we paid $65 million in respect of our regular base quarterly dividend of $0.125 per share.

We also purchased approximately 1.6 million Class B subordinate voting shares for $85 million in the second quarter under our normal course issuer bid.

FINANCIAL RISK MANAGEMENT

Sales of our products are denominated in U.S. dollars while a significant portion of our expenses and capital expenditures are incurred in local currencies, particularly the Canadian dollar and the Chilean peso. Foreign exchange fluctuations can have a significant effect on our operating margins, unless such fluctuations are offset by related changes to commodity prices.

Our U.S. dollar denominated debt is subject to revaluation based on changes in the Canadian/U.S. dollar exchange rate. As at June 30, 2023, approximately $2.2 billion of our U.S. dollar denominated debt is designated as a hedge against our foreign operations that have a U.S. dollar functional currency. As a result, any foreign exchange gains or losses arising on that amount of our U.S. dollar debt are recorded in other comprehensive income, with the remainder being charged to profit.

Commodity markets are volatile. Prices can change rapidly and customers can alter shipment plans. This can have a substantial effect on our business and financial results. Continued uncertainty in global markets arising from the macroeconomic outlook and government policy changes, including tariffs and the potential for trade disputes, may have a significant positive or negative effect on the prices of the various products we produce.

We remain confident in the longer-term outlook for our major commodities, however, ongoing uncertainty related to global economic growth and the potential impact of monetary policy aimed at curtailing inflation in various jurisdictions, as well as any potential resurgence of COVID-19, may have an impact on demand and prices for our commodities, on our suppliers and employees and on global financial markets in the future, which could be material.

Commodity Prices and Sensitivities

Commodity prices are a key driver of our profit and cash flows. On the supply side, the depleting nature of ore reserves, difficulties in finding new ore bodies, the permitting processes, the availability of skilled resources to develop projects, as well as infrastructure constraints, political risk and significant cost inflation may continue to have a moderating effect on the growth in future production for the industry as a whole.

The sensitivity of our annualized profit (loss) attributable to shareholders and EBITDA5 to changes in the Canadian/U.S. dollar exchange rate and commodity prices, before pricing adjustments, based on our current balance sheet, our 2023 mid-range production estimates, current commodity prices and a Canadian/U.S. dollar exchange rate of $1.30, is as follows:

Notes:

FINANCIAL INSTRUMENTS AND DERIVATIVES

We hold a number of financial instruments and derivatives that are recorded on our balance sheet at fair value with gains and losses in each period included in other comprehensive income and profit for the period as appropriate. The most significant of these instruments are marketable securities, metal-related forward contracts including those embedded in our silver and gold streaming agreements, QB2 variable consideration to IMSA and settlements receivable and payable. Some of our gains and losses on metal-related financial instruments are affected by smelter price participation and are taken into account in determining royalties and other expenses. All are subject to varying rates of taxation depending on their nature and jurisdiction.

GUIDANCE

Our guidance for 2023, including production guidance for the following three years, is outlined in the tables below. The guidance ranges reflect uncertainties including the potential for extreme weather events and other potential disruptions. The guidance outlined below is unchanged from our previous disclosures, with the exception of our 2023 annual production guidance for QB2 copper production and Red Dog's lead production.

Production Guidance

The table below shows our share of production of our principal products for 2022, our guidance for production for 2023 and for the following three years.

Notes:

Sales Guidance

The table below shows our sales for the last quarter and our sales guidance for the next quarter for selected primary products.

Note:

Unit Cost Guidance

The table below shows our unit costs for selected products 2022 and our unit cost guidance for selected principal products in 2023.

Notes:

Capital Expenditure Guidance

The table below shows our capital expenditures for 2022 and our capital expenditure guidance for 2023.