EXHIBIT 99.1

Teck Reports Unaudited Third Quarter Results for 2023

Ramp-up of QB2 continues with strong asset performance

VANCOUVER, British Columbia, Oct. 23, 2023 (GLOBE NEWSWIRE) -- Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (Teck) today announced its unaudited third quarter results for 2023.

“We made solid progress on the ramp-up of our flagship QB2 copper project, generating gross profit in the third quarter, and we remain on track to achieve design throughput by year end," said Jonathan Price, CEO. “Positive financial performance was driven by continued strong commodity prices, partially offset by lower steelmaking coal sales due to supply chain disruptions – resulting from the B.C. port strike and wildfires – in the quarter.”

Highlights

Financial Summary Q3 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

Note:

Guidance

Notes:

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

WEBCAST

Teck will host an Investor Conference Call to discuss its Q3/2023 financial results at 8:00 AM Eastern time, 5:00 AM Pacific time, on October 24, 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 annual financial results are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. Our interim financial results are prepared in accordance with IAS 34, Interim Financial Reporting (IAS 34). 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:

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

Notes:

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

Notes:

Reconciliation of EBITDA and Adjusted EBITDA

Notes:

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 expectations for development capital spending and capitalized ramp-up commissioning costs; expectation that cost pressures at QB2 can be mitigated; expectation that QB2 will continue to ramp-up and achieve design throughput by the end of 2023; our expectation with respect to completion of the port and molybdenum plant at QB2; expectation of reduced CO2 emissions in our steelmaking coal supply chain for shipments handled by Norden; expectations with respect to improved plant performance in the fourth quarter; expectations with respect to timing and receipt of approval of the MEIA at Antamina; expectations with respect to execution of our copper growth strategy; expectations regarding our Quebrada Blanca Mill Expansion project, including timing for permitting and completion of the feasibility study; expectations regarding the HVC 2040 project, including timing for feasibility study completion; expectations regarding the San Nicolás project, including timing for submission of the MIA-R permit application and completion of the feasibility study; expectations regarding the Zafranal project, including timing for commencement of detailed engineering; expectations regarding the NewRange joint venture, including our ability to advance permitting and the timing for completion of the NorthMet feasibility study; expectations regarding the Galore Creek project, including advancement of the prefeasibility study; expectations with respect to replacement of the KIVCET boiler at Trail Operations; 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 150 million litres per day by the end of 2026; expectations regarding engagement with U.S. regulators on water quality standards; expectations regarding finance expenses in 2024 and general and administration expenses through year end 2023; 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, capitalized stripping, and other guidance under the heading “Guidance” and as discussed elsewhere 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 99.2

Teck Reports Unaudited Third Quarter Results for 2023

Ramp-up of QB2 continues with strong asset performance

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

“We made solid progress on the ramp-up of our flagship QB2 copper project, generating gross profit in the third quarter, and we remain on track to achieve design throughput by year end," said Jonathan Price, CEO. “Positive financial performance was driven by continued strong commodity prices, partially offset by lower steelmaking coal sales due to supply chain disruptions – resulting from the B.C. port strike and wildfires – in the quarter.”

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 Q3 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

Note:

Notes:

Management's Discussion and Analysis

This management’s discussion and analysis is dated as at October 23, 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 nine months ended September 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 third quarter, profit from continuing operations attributable to shareholders was $276 million, or $0.53 per share, compared to $741 million, or $1.42 per share, in the same period last year. The decrease compared with a year ago is primarily due to lower prices for steelmaking coal and zinc, as well as reduced sales volumes from steelmaking coal and lower production and sales volumes from Highland Valley Copper. The decrease was partially offset by higher copper prices and a weaker Canadian dollar, as compared with a year ago.

Adjusted profit attributable to shareholders1 in the third quarter, taking into account the items identified in the table below, was $399 million, or $0.77 per share, compared with $923 million, or $1.77 per share, in the third quarter of 2022. Significant third quarter adjustments to profit, reflected in the table below, include the effect of the Chilean tax reform of $69 million on our deferred income tax liability and a $45 million gain relating to changes to the carrying value of the financial liability for the preferential dividend stream to ENAMI.

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 $35 million of after-tax gains ($53 million, before tax) in the third quarter, or $0.07 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 $165 million in the third quarter compared with $250 million a year ago. Gross profit decreased from a year ago (see table below) primarily due to lower production and sales volumes from Highland Valley Copper, which negatively impacted unit operating costs2 partially offset by higher realized copper prices. Sales volumes of 14,300 tonnes at QB2 generated a gross profit before depreciation and amortization2 of $19 million in the third quarter.

Copper production of 71,900 tonnes in the third quarter was 8% higher than a year ago and included production of 18,300 tonnes of QB2 production. Third quarter copper production at Highland Valley Copper was impacted by a localized geotechnical event in late August, which required the operation to process lower grade stockpiled ore during the remainder of the third quarter. A section of the Valley pit was safely re-opened at the beginning of October and mining of higher grade ore re-commenced.

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 third quarter totaled $818 million, including $81 million for sustaining capital, $81 million for QB2 capitalized ramp-up costs, which are outlined below, and $550 million for project development expenditures for QB2.

Capitalized stripping costs were $111 million in the third quarter, $33 million higher than a year ago, as expected with QB2 ramping up.

As QB2 continues to ramp-up production, we incur costs that are capitalized because they relate to bringing the asset to its design capacity operating level. These costs are referred to as capitalized ramp-up costs. These costs are not related to the cost of production of copper concentrate sold in the period or project capital construction. As at September 30, 2023, we had capitalized $561 million of these costs. We expect capitalized ramp-up costs in the fourth quarter, although we expect amounts to be lower than those capitalized in the third quarter.

Markets

LME copper prices remained above long-term historic trends. Prices in the third quarter increased by 8% compared with the same period a year ago. Globally, demand for copper remains supported, however, demand trends vary by region. Demand in Europe has come under pressure from high energy costs and high interest rates. In North America, consumer demand is soft while industrial and government spending remains strong. In Asia, Indian demand is growing above long-term trends and Chinese copper demand has been well supported into the third quarter.

The tightness in the copper concentrate market has started to return in the third quarter with spot treatment charges falling below the 2023 annual contract terms. New smelter capacity is starting to come online while mine production improved only marginally in the third quarter. Concentrate imports into China are up 9% year to date compared to the same period a year ago. Peruvian mine production has recovered, while Chilean mine production continues to struggle. Global stocks of copper cathode on exchanges at the end of the third quarter were 3.3 days of global consumption compared to the long-term average of 11 days. Stocks on exchanges and in bonded warehouses in China decreased by 47,000 tonnes in the third quarter and are down 350,000 tonnes since their seasonal peak in March. Total visible stocks, including bonded stocks, continue to remain at low levels at 3.8 days of consumption, compared to a long-term average of 14.5 days.

Operations

Highland Valley Copper

Copper production of 20,500 tonnes in the third quarter was 10,000 tonnes lower than a year ago due a localized geotechnical event in the Valley pit in late August, noted above. In early October, the Valley pit was safely re-opened and mining re-commenced.

A complete analysis on the geotechnical failure and required measures was developed and undertaken for safe re-entry into the Valley pit. This resulted in a revised mine plan to mitigate production losses for the fourth quarter. As a result, annual production guidance for Highland Valley Copper has been updated to 100,000 to 108,000 tonnes.

Copper sales volumes of 20,700 tonnes in the third quarter were 9,900 tonnes lower than a year ago reflecting the lower production levels. Third quarter molybdenum production of 67,000 pounds was

404,000 pounds lower than a year ago as a result of the geotechnical event, which led to the processing of lower molybdenum grade ore.

In the third quarter, operating costs before inventory changes, were $205 million in the third quarter, $24 million higher than a year ago. The increase in operating costs was related to timing of maintenance activities in 2023.

Antamina

Copper production (100% basis) of 99,900 tonnes in the third quarter was 14,000 tonnes lower than a year ago, which was expected in the mine plan. The mix of mill feed in the quarter was 50% copper-only ore and 50% copper-zinc ore, compared with 53% copper-only ore and 47% copper-zinc ore, a year ago. As a result, zinc production (100% basis) of 125,400 tonnes in the third quarter was 10,200 tonnes higher than a year ago.

In the third quarter, operating costs before changes in inventory were US$95 million (22.5% share), US$10 million higher than a year ago due to increased 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 by the end of 2023.

Carmen de Andacollo

Copper production of 9,300 tonnes in the third quarter was 1,400 tonnes higher than a year ago as a result of higher grades, which were expected in the current mine plan. However, production was impacted by a 14-day, unplanned shutdown in August due to a conveyor belt failure. Production in the third quarter last year was impacted by a significant precipitation event resulting in a 5-day shutdown, as well as a change in mill feed strategy.

In the third quarter, operating costs, before changes in inventory, were US$56 million which was US$6 million lower than a year ago due to the maintenance costs required after the precipitation event.

Quebrada Blanca

In the third quarter, we continued to ramp-up operations at QB2 and the assets are performing well. We are working to complete final construction and contract close out, with completion of the molybdenum plant and the port offshore facilities remaining. The following are the key updates relating to both construction and operations at QB2 in the third quarter:

Note:

Cost of Sales

Cost of sales was $622 million in the third quarter compared with $475 million in the same period last year, with the ramp-up of production at QB2 accounting for most of the increase. Total cash unit costs1 of product sold in the third quarter, before cash margins for by-products1, of US$2.24 per pound, excluding QB2 costs, were US$0.38 per pound higher than the same period a year ago. This was due to the effect of lower production levels at Highland Valley Copper and increased maintenance and repair costs. Cash margins for by-products1 were US$0.37 per pound compared with US$0.44 per pound in the same period a year ago with the decrease primarily due to lower zinc prices and lower molybdenum sales, driven by the production issue at Highland Valley Copper as previously described. Total net cash units costs1 for copper, after cash margins for by-products1, of US$1.87 per pound were US$0.45 per pound higher than the same period a year ago. Although copper unit costs1 in the third quarter were above our annual guidance range, the variance is timing related, and our annual unit operating cost guidance range is unchanged.

Notes:

Note:

Outlook

Our 2023 annual guidance for our copper business unit is outlined in our guidance tables on pages 29 — 33. Our 2023 annual guidance has been updated for changes to our capital cost guidance for QB2, our annual copper and molybdenum production, and capitalized stripping.

As outlined above, delays in construction of the molybdenum plant and port offshore facilities, slower than planned demobilization progress and contract claims risk have put pressure on our QB2 capital cost guidance. As a result, we have increased our capital cost guidance for QB2 to US$8.6 to US$8.8 billion from our previously disclosed guidance of US$8.0 to US$8.2 billion. Significant efforts are ongoing to mitigate the risks and cost pressures.

Our 2023 annual copper production guidance has decreased to 320,000 to 365,000 tonnes from 330,000 to 375,000 tonnes, as a result of the localized geotechnical event at Highland Valley Copper. Our 2023 annual molybdenum production guidance has decreased to 3.0 to 3.8 million pounds from 4.5 to 6.8 million pounds, as a result of the delay in the construction of the QB2 molybdenum plant, noted above.

Our 2023 copper capitalized stripping guidance has been updated to $395 million from $295 million as a result of QB2 performing additional stripping activities while the concentrator was in ramp-up. Additional stripping was performed at Antamina and Highland Valley Copper altered the mine plan for the remainder of 2023 to mitigate the effects of the localized geotechnical event.

Our 2023 annual copper production guidance for QB2 is unchanged from our previously disclosed guidance of 80,000 to 100,000 tonnes, although we expect to be at the lower end of this range. We continue to expect QB2 to reach full throughput rates by the end of 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. During the third quarter, we generated gross profit from QB2 and expect gross profit to be generated in the fourth quarter as the ramp-up in production rates continues, subject to copper price changes.

Copper Growth

In the third quarter, we continued to advance our copper growth strategy with prudent investments in our industry-leading copper growth portfolio. Our copper growth strategy balances growth and return of capital with maintaining a strong balance sheet and is informed by milestone objectives with prudent investment plans across the entire portfolio to de-risk development of each of the assets, including permitting.

Targeted upcoming key milestones for key assets in our copper growth portfolio include:

ZINC BUSINESS UNIT

Notes:

Performance

Gross profit from our zinc business unit was $96 million in the third quarter compared with $311 million a year ago. Gross profit decreased compared with a year ago (see table below) primarily due to lower zinc prices, partially offset by higher zinc premiums on our contracted refined zinc sales.

At our Red Dog Operations, zinc production of 124,600 tonnes in the third quarter decreased by 21% from a year ago, while lead production increased by 13%. The decrease in zinc production was driven by reduced mill throughput as a result of equipment failures. At our Trail Operations, refined zinc production was 5% higher than a year ago and refined lead production in the third quarter was the same as last year. Refined lead production continues to be impacted by the KIVCET boiler, which is reaching the end of its life. Planning continues to complete the KIVCET boiler replacement 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 third quarter totaled $71 million, including $44 million for sustaining capital, of which $20 million relates to our Trail Operations and $24 million relates to our Red Dog Operations.

Markets

The refined zinc market remained under pressure through the third quarter. Demand in Europe continued to weaken and investment flows sought returns outside of base metals. Zinc premiums have softened across all regions and are 23% lower in Europe and 10% lower in North America compared to the second quarter of 2023. In Europe, construction demand was weak with high energy costs and high interest rates impacting growth. In North America, automotive sales and production were improving into the third quarter before labour action in North America slowed auto production. Automotive sales continued to increase through the quarter reaching a seasonally adjusted annualized rate of 15.7 million units, well above the 13.8 million unit rate last year. Chinese demand for zinc in autos and renewable energy remained well supported with year to date new energy vehicle sales up 38%. Demand from the energy transition sectors in China has offset the weakness in the construction sector.

Prices for zinc on the London Metals Exchange in the third quarter averaged US$1.10 per pound, a decline from record highs in the third quarter of 2022 of US$1.48 per pound. The continued low zinc price has forced the closure of several zinc mines around the world due to high costs and low prices.

The zinc concentrate market continued to improve with spot treatment charges falling in the third quarter as Chinese buyers maintained imports and most European smelters achieved normal production. Imports of zinc concentrates to China have increased 25% year to date through to August compared with 2022. Imports over the last twelve months reached 2.2 million tonnes, which is the highest rolling twelve month level on record.

LME zinc stocks rose by 22,175 tonnes in the third quarter and are up 92% over extremely low levels last year, while stocks held on the Shanghai Futures Exchange (SHFE) fell 5,600 tonnes over the same period last year. 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 7,600 tonnes in the third

quarter to less than 140,000 tonnes at the end of the quarter, representing an estimated 3.6 days of global demand, compared to the 25-year average of 18.2 days.

Operations

Red Dog

Zinc production decreased to 124,600 tonnes in the third quarter compared with 157,800 tonnes a year ago. Lower production was driven by reduced mill throughput as a result of equipment failures. Lead production of 21,400 tonnes in the third quarter was 2,400 tonnes higher than a year ago as a result of higher lead grade.

Zinc sales volumes of 269,700 tonnes were 15% higher in the third quarter compared to a year ago due to the timing of sales.

Operating costs, before inventory changes, in the third quarter were US$132 million, or US$19 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 consumables.

Trail Operations

Refined zinc production of 67,200 tonnes in the third quarter was 3,400 tonnes higher than a year ago. Third quarter production this year was lower than expected as a result of two concentrate suppliers unable to make shipments. Typically alternate feed would be purchased, however, due to low spot treatment charges it was not economical. By mid October 2023, one of the suppliers re-commenced shipping.

Lead production was 17,200 tonnes, unchanged from a year ago. As previously disclosed, the KIVCET boiler has reached the end of its useful life and the replacement of the boiler will occur in 2024. Until the boiler is replaced, we expect lead production will continue to remain at lower levels than historical.

Operating costs, before changes in inventory, in the third quarter were 14% lower than a year ago at $145 million, primarily due to planned maintenance which increased costs a year ago.

Cost of Sales

Cost of sales was $1.1 billion in the third quarter compared with $951 million a year ago, primarily due to increased sales volumes from Red Dog and higher diesel and consumable costs. Total cash unit costs1 of product sold in the third quarter for Red Dog, before cash margins for by-products1, were US$0.67 per pound, US$0.03 per pound higher than a year ago and within our annual unit cost1 guidance mainly due to higher refining and treatment charges paid to customers. Net cash unit costs1 for zinc in the third quarter, after cash margin for by-products1 of US$0.43 per pound were US$0.06 per pound higher compared with a year ago, as expected in our annual guidance.

Note:

Note:

Outlook

Our 2023 annual guidance for our zinc business unit is outlined in our guidance tables on pages 29 — 33. Although overall guidance remains unchanged, the guidance by site has changed. Due to production issues at Red Dog, as previously discussed, guidance has been reduced by 5,000 tonnes to 545,000 to 575,000. This decrease is offset by a corresponding 5,000 tonnes increase at Antamina as a result of higher than expected zinc production.

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 130,000 to 150,000 tonnes in the fourth quarter of 2023, reflecting the normal seasonal pattern of Red Dog sales.

STEELMAKING COAL BUSINESS UNIT

Note:

Performance

Gross profit in the third quarter from our steelmaking coal business unit was $570 million compared with $1.2 billion a year ago, due to lower steelmaking coal prices and sales volumes (see table below). Realized steelmaking coal prices averaged US$229 per tonne in the third quarter compared with US$304 per tonne in the same period a year ago.

Third quarter sales volumes of 5.2 million tonnes were below our previously disclosed guidance of 5.6 — 6.0 million tonnes and 5.6 million tonnes a year ago. The decrease was due to slower than anticipated supply chain recovery following the impacts of B.C. wildfires, the labour disruption at B.C. ports and plant challenges. The plant improvement initiative implemented in the second and third quarters is successfully driving improved plant performance in the fourth quarter.

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

Property, plant and equipment expenditures were $163 million in the third quarter, which included $11 million associated with water projects. Capitalized stripping costs were $193 million in the third quarter

compared with $103 million in the same period last year, as we continue through a notable peak period of capitalized stripping to advance the development of mine pits to support future production, as anticipated.

Markets

The FOB Australia price assessments ended the third quarter at US$332 per tonne, increasing from the recent low of US$222 per tonne in May of this year. The quarterly price, lagged by one month, averaged US$240 per tonne. This was a decrease from US$283 per tonne in the second quarter of 2023 and down from US$287 per tonne in the third quarter of 2022. Steelmaking coal prices rose through the third quarter as a result of global supply shortage for premium hard coking coals, driven by production and logistics disruptions and strong demand from China and India. Subsequent to the end of the third quarter prices continued to rise, with FOB premium spot prices trading at US$343 per tonne as of October 23, 2023.

The CFR China price assessments for the third quarter averaged US$250 per tonne compared to US$242 per tonne in the second quarter of 2023 and US$310 per tonne in the third quarter of 2022. Blast furnace utilization in China remains elevated at over 90%, with hot metal production up close to 4% year to date.

Operations

Third quarter steelmaking coal production of 5.5 million tonnes was 0.2 million tonnes lower than the same period a year ago. Production in the third quarter was primarily impacted by planned maintenance outages at two of our operations, including Fording River, our largest operation, as well as intermittent plant challenges. Overall plant reliability improved in the third quarter relative to the first half of this year, partially attributed to activities completed during the planned maintenance outages.

Total material movement and equipment hours in the third quarter were in line with the same period a year ago, demonstrating the continued stabilization of workforce levels and equipment utilization.

Cost of Sales

Cost of sales of $1.0 billion in the third quarter was similar to the same period last year. Adjusted site cash cost of sales1 was $101 per tonne, compared with $92 per tonne a year ago, primarily due to reduced production levels and increased maintenance activities associated with planned maintenance.

Transportation unit costs1 in the third quarter were $50 per tonne, compared to $48 per tonne in the same quarter last year. The increase was largely driven by higher demurrage and port costs due to the labour disruptions at ports in B.C. in July and the impact on rail from the B.C. wildfires in August. Transportation unit costs1 are expected to decline in the fourth quarter with the number of vessels at anchor returning to normal levels by the end of the year.

Note:

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

Our total cost of sales for the quarter also included a $22 per tonne charge for the amortization of capitalized stripping costs and $27 per tonne for other depreciation.

Outlook

With steelmaking coal prices entering the fourth quarter above US$330 per tonne, our steelmaking coal business unit is well positioned to continue delivering strong financial performance through the remainder of 2023. Our 2023 annual guidance for our steelmaking coal business is outlined in our guidance tables on pages 29 — 33 and changes from our previously disclosed guidance are outlined below.

As a result of plant challenges to date, we have lowered our 2023 annual production guidance to 23.0 to 23.5 million tonnes from our previously disclosed guidance of 24.0 to 26.0 million tonnes. The plant improvement initiative, combined with the major maintenance activities that were completed earlier this year, is successfully driving improved plant performance in the fourth quarter. Further, strong raw coal inventories are expected to provide product flexibility and optionality into the fourth quarter and beyond.

The lower production levels for the year are expected to put upward pressure on adjusted site cash cost of sales1 and transportation unit costs1, which are expected to be at the upper end of our 2023 annual guidance ranges. Transportation unit costs1 are expected to decline in the fourth quarter with the number of vessels at anchor returning to normal levels by the end of the year.

We expect fourth quarter steelmaking coal sales to be between 5.8 and 6.2 million tonnes, maximizing use of available inventories.

Steelmaking coal capital expenditures in 2023 are expected to be within our previously disclosed guidance of $790 million, with a decrease in water treatment capital (outlined below) to be offset by an increase in other sustaining capital, including the Elkview Administrative and Maintenance Complex project.

Note:

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.

For 2023, our priority is to fully operationalize our 77.5 million litres per day constructed water treatment capacity by the end of the year. This additional capacity, a fourfold increase from 2020, is expected to achieve one of the primary objectives of the Plan: stabilizing and reducing the selenium trend in the Elk Valley. Currently, treatment is effectively removing selenium and water quality monitoring shows that selenium levels are trending down downstream of treatment and stabilizing in the Elk River. We expect further reductions across the watershed and in the Koocanusa Reservoir as additional treatment is completed.

Due to revised timelines for permitting, equipment procurement, and engineering development, we now anticipate our 2023 annual sustaining water capital guidance related to 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) to be approximately $100 million, compared to the previously disclosed guidance of $220 million. As a result, we anticipate our water treatment capital expenditures for 2023 and 2024 to be between $300 to $400 million, compared to our previous guidance of $450 to $550 million. Despite the deferral of water treatment capital expenditures into future years, we continue to expect to meet our water treatment capacity targets by further increasing our constructed water treatment capacity to 150 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 $128 million in the third quarter compared with $435 million a year ago. Significant items in the third quarter included $26 million of share-based compensation expense, $53 million of positive settlement pricing adjustments and a $43 million gain on the remeasurement of our reclamation liabilities relating to an increase in the rates used to discount our decommissioning and restoration provisions for closed operations.

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

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. Finance expense of $71 million in the third quarter was $11 million higher than the same period last year primarily due to higher accretion for our decommissioning and restoration provision. We expect our finance expense to increase in 2024 compared to 2023 as we cease capitalization of borrowing cost amounts relating to the development of QB2.

Non-operating income, net of non-operating expense, was $71 million in the third quarter compared with $116 million expense in the same period last year. The most significant item in the quarter was a $75 million gain 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.

General and administration expenses of $73 million in the third quarter were $19 million higher than the same period last year as we invest in digital technology to enhance productivity across our business. General and administration expenses are expected to continue at current levels through 2023.

Income Taxes

Provision for income and resource taxes was $321 million, or 54% of pre-tax profit. In the third quarter, we recorded a one-time deferred tax charge of $106 million arising from the enactment of the new Chilean two-tiered mining royalty regime which added 18% to our overall tax rate. In addition, the gain on the carrying value of the ENAMI preferential dividend stream, which is not taxable, reduced our overall effective tax rate by 3%. Excluding these items, our effective tax rate would have been 39%, which is higher than the Canadian statutory income tax rate of 27%, primarily due to resource taxes, higher taxes in foreign jurisdictions, and the effect of certain corporate and finance costs that are not deductible in computing income for resource tax purposes. For the full year we expect our effective tax rate to be in the range of 37% to 39% based on our current expectations regarding commodity prices and sales by jurisdiction for the balance of the year.

The new Chilean mining royalty regime consists of a flat 1% ad-valorem component applicable to copper revenues and a profit-based component based on rates ranging from 8% to 26%, determined in reference to mining margin percentage, applicable to adjusted operating profits. The amount of the profit-based royalty is capped so that the overall effective tax rate does not exceed 46.5% as computed in reference to the sum of the ad valorem and profit-based components of the royalty, corporate income tax and imputed withholding tax in relation to adjusted operating profits.

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 October 23, 2023, including $1.5 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 18% at September 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 $3.6 billion at September 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.

Quebrada Blanca (QBSA) entered into a contract with Transelec S.A. to lease an electrical power transmission system to connect the QB2 project with the Chilean national power grid. Subsequent to the end of the third quarter, the Chilean National Electric Coordinator issued the certificate that approves the entry into operation for the transmission system, leading to the commencement date of the lease. The lease requires QBSA to pay approximately US$22 million per year, escalating by 2.2% annually. On initial recognition of the lease in the fourth quarter, we will record a lease liability of approximately US$324 million, with a corresponding right-of-use asset.

Operating Cash Flow

Cash flow from operations in the third quarter was $736 million compared with $1.8 billion a year ago. The reduced cash flow reflects a decrease in profit attributable to shareholders due to lower steelmaking coal and zinc prices and a decrease in steelmaking coal sales volumes, as well as fluctuations in working capital year-over-year.

During the third quarter, changes in working capital items resulted in a use of cash of $233 million compared with a source of cash of $262 million a year ago. The use of cash in the current period reflects the build up of trade receivables and supplies inventory with the ramp-up of QB2, partly offset by the seasonal decrease in production inventories at Red Dog. The reduction of working capital last year and resulting source of cash reflected a decrease in trade receivables in the period.

Investing Activities

Expenditures on property, plant and equipment were $1.1 billion in the third quarter, including $81 million for QB2 capitalized ramp-up costs, $550 million for the development of the QB2 project and $289 million of sustaining capital. The largest components of sustaining capital expenditures were $159 million at our steelmaking coal operations, $25 million at Quebrada Blanca and $36 million at Antamina.

As QB2 continues to ramp-up production, we incur costs that are capitalized because they relate to bringing the asset to its design capacity operating level. These costs are referred to as capitalized ramp-up costs. These costs are not related to the cost of production of copper concentrate sold in the period or project capital construction. As at September 30, 2023, we had capitalized $561 million of these costs.

Capitalized production stripping costs were $325 million in the third quarter compared with $209 million a year ago. The majority of this represents the advancement of pits for future production at our steelmaking coal operations.

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

Financing Activities

Interest and various finance fees paid in the third quarter, including amounts capitalized, totaled $94 million, similar to a year ago.

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

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 September 30, 2023, approximately $2.4 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, current geopolitical uncertainty, 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. Our 2023 annual guidance has been updated for changes to our capital cost guidance for QB2, our copper, molybdenum and steelmaking coal production guidance and capitalized stripping guidance for our copper business unit. The changes to each of these items is further described below.

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.