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DATE

Thursday, July 23, 2026 at 11:00 a.m. ET

CALL PARTICIPANTS

• Vice President, Investor Relations - Emma Chapman
• Chief Executive Officer - Jonathan H. Price
• Chief Financial Officer - Crystal J. Prystai
• Chief Commercial Officer - Ian K. Anderson

TAKEAWAYS

• Adjusted EBITDA -- $2.2 billion at Teck Resources Limited (TECK +4.62%), representing a threefold increase from the second quarter of 2025 due to record copper prices and higher byproduct revenues.
• Cash Flow from Operations -- $1.7 billion, which supported a $756 million increase in the company's net cash position during the quarter and a $1 billion increase in the first half of the year.
• Copper Production -- 25% increase year over year, reflecting higher volumes at all operations including stable performance at Quebrada Blanca.
• Adjusted EBITDA Margin -- 61%, a record level for the company driven by a combination of higher copper prices and operational cost discipline.
• Copper Net Cash Unit Cost -- $1.64 per pound, improving 19% from $2.02 per pound in the prior-year period due to increased production and byproduct credits.
• Zinc Net Cash Unit Cost -- 35 cents per pound, down from 49 cents per pound reflecting lower smelter processing charges and stronger byproduct pricing for silver, lead, and germanium.
• Liquidity -- $10.3 billion as of June 30, 2026, which includes $6.1 billion in cash and $4.2 billion in undrawn credit facilities.
• Highland Valley Copper Capex -- $900 million to $1.2 billion for 2026, with construction ramp-up including earthworks, pipelines, and brownfield works.
• Annual Copper Production Guidance -- 455,000 to 530,000 tonnes, which remains unchanged from previous disclosures despite operational headwinds.
• Annual Zinc Concentrate Guidance -- 410,000 to 460,000 tonnes, with production tracking in line with the mine plan at Red Dog.
• Refined Zinc Production Guidance -- 190,000 to 230,000 tonnes for 2026, as management continues to optimize feed sources at Trail.
• Quebrada Blanca Copper Production -- 55,800 tonnes, increasing from 52,700 tonnes a year ago following the completion of Rock Bench 5.
• Capitalized Stripping Guidance -- $450 million to $550 million for the copper business, with activity expected to increase in the second half of the year to prepare future mining areas.
• Trail Operations Gross Profit -- $203 million before depreciation and amortization, up from $42 million in the second quarter of 2025 due to higher byproduct pricing.
• Rock Bench 6 Potential Investment -- $100 million in 2026, estimated if the company proceeds with accelerating development to improve tailings handling efficiency and reduce execution risk.
• Red Dog Sales -- 37,000 tonnes of zinc concentrate, with the shipping season having commenced on July 12, 2026.
• Copper Segment Margin -- 65%, compared with 46% a year ago, primarily due to record average copper prices and production gains.
• Zinc Segment Margin -- 38%, up from 25% in the second quarter of 2025, reflecting higher zinc and byproduct prices.
• Safety Performance -- 0.08 high potential incident frequency rate, with Highland Valley achieving 1 million hours worked without a lost time injury.
• Dividends -- $61 million returned to shareholders through the regular quarterly base dividend payment.
• Molybdenum Production Credits -- Significant contributor to lower net cash unit costs in the copper segment due to favorable pricing and increased byproduct volumes.
• Lead Circuit Shutdown -- Planned maintenance at Trail operations occurred during the second quarter, which was offset by value-driven optimization of feed sources.
• Antamina and HVC Second Half Production -- Management expects lower production volumes at these sites in the second half of the year due to planned maintenance downtime and lower ore grades.

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RISKS

• Price stated, "In the second half at [HVC], we are going to have to have some downtime in the mills for tie ins to the mine life extension project, and we also expect you know, a reduction in grade as well from a feed perspective in the second half of 2026," indicating lower production volumes for that asset in the coming months.
• Prystai noted, "These positive factors were partially offset by higher royalties and profit sharing as a result of higher profitability at our operations," which impacted the overall margin expansion.

SUMMARY

Management focused on the pending merger of equals with Anglo American, targeting completion within 12 to 18 months of the September 2025 announcement. The company reported operational stability at Quebrada Blanca for the third consecutive quarter and progressed construction on the Highland Valley Copper mine life extension project. Financial performance was supported by record average copper prices and increased byproduct revenue, while the company signed an agreement with the government of Canada to support strategic metals production at Trail Operations.

• CEO Price noted that the regulatory approval process with the State Administration for Market Regulation in China "is unfolding, you know, in the normal course" and that no requests for remedies have been received.
• The company is advancing integration planning with Anglo American to ensure the organization is prepared to operate as a combined entity and capture synergy opportunities immediately after closing.
• Management is evaluating the acceleration of Rock Bench 6 construction, which Price stated would "provide greater operational flexibility during completion of the sand dam reducing execution risk."
• Detailed engineering for the Highland Valley Copper mine life extension is 95% complete, with management noting that construction activity is ramping up across earthworks and pipelines.
• Price addressed a potential S&P indexation proposal for foreign issuers, stating, "we are quite encouraged by what we have seen overnight," regarding potential impacts on the Canadian investment landscape.
• Chief Commercial Officer Anderson reported the company is securing long-term feed sources for Trail, including a transaction to "divest the Apex germanium mine to Blue Moon Metals" that secured priority purchase rights.
• Management confirmed the Antamina zinc pipeline has been repaired and is back in operation following a temporary shutdown during the second quarter.

INDUSTRY GLOSSARY

• Adjusted EBITDA: Earnings before interest, taxes, depreciation, and amortization, adjusted for one-time items to reflect core operational profitability.
• Antimony: A chemical element used in flame retardants, batteries, and alloys for national security and electronics applications.
• Byproduct Credits: Revenue from secondary metals produced during primary metal extraction, used to offset production costs of the primary metal.
• Cyclone Station: A facility using centrifugal force to separate solid particles from liquids in mining tailings handling.
• Germanium: A semi-metallic element critical for fiber optics, infrared optics, and semiconductor technologies.
• HVC: Highland Valley Copper, a major copper and molybdenum mine located in British Columbia.
• Net Cash Unit Cost: The total cash cost of production minus the revenue generated from byproduct sales, divided by total primary production volume.
• QB: Quebrada Blanca, a large-scale copper mine located in northern Chile.
• Rock Bench: A structural level or platform built into a tailings dam to manage sand deposition and ensure structural stability.
• SAMR: State Administration for Market Regulation, the Chinese government agency responsible for antitrust and market regulation.
• TMF: Tailings Management Facility, an engineered structure used for the permanent storage of mining waste products.
• WTI: West Texas Intermediate, a grade of crude oil used as a global pricing benchmark.

Full Conference Call Transcript

Operator: Ladies and gentlemen, thank you for standing by. Welcome to Teck's Second Quarter 26 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. This conference call is being recorded on Thursday, 07/23/2026. Would now like to turn the conference over to Emma Chapman, Vice President, Investor Relations. Please go ahead.

Emma Chapman: Thank you, operator. Good morning, everyone, and thank you for joining us for TECH's second quarter 26 conference call. Today's call contains forward looking statements. Actual results may vary due to various risks and uncertainties. Tech does not assume the obligation to update any forward looking statements. Please refer to Slide 2 for the assumptions underlying our forward looking statements. We will reference non GAAP measures throughout this presentation. Explanations and reconciliations are in our MD and A and the latest press release on our website. On today's call, Jonathan H. Price, our CEO, will provide highlights for the second quarter of 2026. Crystal J.

Prystai, our CFO, will follow with further details on our operational performance and financials in the quarter. Jonathan will then wrap up with closing remarks and an opportunity for Q and A. And with that, over to you, Jonathan.

Jonathan H. Price: Thank you, Emma, and good morning, everyone. We have delivered another quarter of strong operational and financial performance. We generated significantly higher earnings and robust flow in the second quarter of 2026 supported by favorable commodity prices including another record quarterly average copper price. Compared with the same period last year, we generated cash flow from operations of $1.7 billion and tripled adjusted EBITDA to $2.2 billion. We also successfully managed our net cash unit costs despite energy cost headwinds, supported by stronger operational performance and favorable byproduct pricing. As a result, we increased our net cash position by $756 million during the quarter, and $1 billion in the first half of the year.

Alongside this strong financial performance, we continue to make good progress against our near term priorities to create shareholder value. We are advancing our merger of equals with Anglo American. With our focus on securing the remaining regulatory approval. Meanwhile, integration planning is intensified to ensure we are ready to close shortly after approval is received. Operationally, we continue to build momentum across the business. Copper production increased by 25% compared with the second quarter of last year with higher production across all our copper operations coupled with continued strong sales volumes.

We are delivering greater operational stability quarter by quarter, through our continued focus on safe, reliable, and consistent performance, and there are no changes to our previously disclosed annual guidance. Importantly, this strong performance includes QB, where we achieved our 3rd consecutive quarter of stable operations. An important step towards realizing the full value of this world class asset During the quarter, we also continued to advance our tailings management facility work at QB. Including the completion of Rock Bench 5. And I will return later in the presentation to some of the TMF options currently under evaluation with the potential to further enhance operational continuity.

At Highland Valley, we continue to advance the mine life extension project, detailed 95% complete. Overall, this was another strong quarter. That demonstrates disciplined execution across the business, reinforces the quality of our portfolio and positions us well as we move towards completing our merger with Anglo American. So turning to the merger update on Slide 5. Regulatory approval process in China continues to progress as expected. We remain focused on engagement with the regulator. In parallel, integration planning continues to advance, Our teams are working hard to ensure we are fully prepared to close the transaction following receipt of necessary approvals. While also continuing to develop our plans to capture the significant value creation opportunities available through the combination.

Consistent with our original expectations, we continue to anticipate completing the transaction within 12 to 18 months of the September 2025 announcement. Turning to our focus on safe and stable operational performance, beginning with safety on slide 6. During the second quarter, our high potential incident frequency rate of tech controlled operations remained low at 0.08. Broadly in line with our performance last year. Any safety incidents are thoroughly investigated, and corrective actions implemented to strengthen critical risk controls. And reduce the likelihood of recurrence. We are also very pleased that the Highland Valley copper mine life extension project has now achieved 1 million hours worked without a high potential incident or a lost time injury.

Reflecting the strong safety culture across the project team. So turning now to our operational performance on slide 7. Copper production increased by almost 25% in the second quarter compared with the same period last year. Higher production across each of our operations as shown in the chart on the left. This higher production, together with favorable commodity and byproduct prices, drove a significant reduction in our net cash unit costs more than offsetting the impact of higher energy prices. As a result, our profitability continued to strengthen. With adjusted EBITDA margins reaching a record 61% up from 36% in the second quarter of 2025.

These results demonstrate how our continued focus on operational performance is translating into higher volumes, lower costs, and improved financial returns. Turning to QB on Slide 8. As we continue to advance tailings management facility development, we have not experienced any TMF related downtime in the past 3 quarters. Supporting improved asset utilization and operational consistency As a result, QB produced 55.8 thousand tons of copper during the quarter, compared with 52.7 thousand tonnes in the same period last year. With stable throughput and recoveries and all key operating metrics tracking in line with our full year guidance. During the planned maintenance shutdown in May, we completed several initiatives designed to optimize plant performance and increase throughput.

We began to see the benefits of that work towards the end of the quarter, providing a solid foundation for continued operational improvement throughout the remainder of the year. Overall, QB continues to demonstrate improving operational consistency, giving us increasing confidence in the long term performance and value of this world class asset. Now looking at the QBTMF on Slide 9, Progress on the TMF remains an important enabler of predictable operating performance at QB. And we made significant progress during the second quarter. As you can see from these photographs, we completed Rock Bench 5 during the quarter an important milestone that supports freeboard management through the remainder of the year.

Completion of the cyclone station upgrades and increased cyclone availability improved our sand deposition rates, and supported continued progress towards planned TMF performance. As mentioned, there was no TMF related downtime at the concentrator in the past 3 quarters, demonstrating the progress we have made in reducing operational constraints. Workers continue to optimize the supporting ancillary infrastructure required to accommodate higher sand deposition rates. Construction of the secondary cyclone station could further improve our sand deposition performance. The latest progress on the QBTMF is reflected in our updated scorecard on Slide 10. As I have already mentioned, we completed Rock Bench 5 as planned.

Looking ahead, we expect to complete installation of the secondary sand cyclone system by the end of the year, further strengthening the robustness of the tailings handling system and increasing its ability to manage variability in plant feed. Consistent with our QB action plan, we are progressing our evaluation of the timing and sequencing of the installation of the permanent TMF pipeline infrastructure which will mechanically raise the tailings pipeline supporting more efficient and optimized TMF performance. As part of this assessment, we are evaluating opportunities to accelerate certain TMF activities including the potential advancement of material placement currently planned for 2027 by constructing an additional rock bench this year.

Proceeding with Rock Bench 6 would allow the permanent pipeline infrastructure to be installed later this year, is earlier than planned. This would provide greater operational flexibility during completion of the sand dam reducing execution risk and supporting continued improvements in operating performance from a stable operating base. If we take the decision to proceed, construction of Rock Bench 6 is expected to commence in late August or early September, and be completed by around year end. With an estimated capital investment of approximately $100 million this year. Overall, we continue to make good progress on the TMF and are focused on opportunities to safely accelerate development and further strengthen the long term reliability of QB operations.

So turning now to the mine life extension at Highland Valley on slide 11. Construction continues to advance well, with the project achieving an important safety milestone of more than 1 million hours worked without any high potential incidents or lost time injuries. During the second quarter, completed installation of the pilings for the mill upgrades and successfully executed the first integrated shutdown between the operation and the mine life extension project. Detailed engineering is now approximately 95% complete, Procurement is nearing completion, and construction activity continues to ramp up across the site including earthworks, pipelines, brownfield works, and supporting infrastructure.

We invested $254 million of project capital during the quarter our capital expenditure guidance remains unchanged at 900 million to $1.2 billion for 2026, and $2.1 to $2.4 billion over the life of the project. Capitalized stripping activity is also expected to increase during the second half of the year as we prepare future mining areas. While higher diesel prices will have some impact, our guidance for capitalized stripping remains unchanged, at $450 million to $550 million for the copper business. Mine life extension will extend Highland Valley's mine life to 2046, while supporting average annual copper production of approximately 132 thousand tonnes. Reinforcing its position as a cornerstone asset in the copper portfolio.

Overall, we are continuing to execute well across our portfolio, with strong operational performance supporting disciplined project delivery, positioning the business well for the future. I will now hand over to Crystal to take you through the financial results in more detail.

Crystal J. Prystai: Thanks, Jonathan. Good morning, everyone. Starting with an overview of our strong financial performance in Q2 2026 on Slide 13. We delivered significantly stronger financial results in the quarter with adjusted EBITDA tripling to $2.2 billion compared to the same period last year. This performance was underpinned by strong copper production across all of our operations, including a 3rd consecutive quarter of stable production at QB together with higher commodity prices, and increased byproduct revenues. In addition, we significantly improved profitability at trail operations as we continue to focus on cash generation through value driven optimization of feed sources and production. As a result, our adjusted EBITDA margin increased to a record 61%.

Our strong earnings in the second quarter translated into robust cash generation with $1.7 billion of cash flow from operations, contributing to a $756 million increase in our net cash position over the quarter. We also returned $61 million to shareholders through payment of our regular quarterly base dividend. Looking now at the key drivers of our higher profitability in Q2 2026 on Slide 14. The increase in adjusted EBITDA was primarily driven by significantly higher commodity prices including favorable pricing adjustments and stronger byproduct pricing. Higher copper production and sales volumes and higher volumes of byproducts also made significant contributions.

Overall, operating costs were lower year on year, more than offsetting higher oil prices while lower smelter processing charges also provided a benefit. These positive factors were partially offset by higher royalties and profit sharing as a result of higher profitability at our operations. Turning to our copper business on Slide 15. Compared with Q2 last year, gross profit before depreciation and amortization (D&A) more than doubled to 1.8 billion with margins substantially higher at 65% compared with 46% a year ago. This stronger performance was driven by record copper prices together with higher production across all operations. Higher copper production reflects higher throughput across our operations as well as higher grades at Highland Valley and Antamina as expected.

QB delivered its 3rd consecutive quarter of stable operations with copper production increasing to 55.8 thousand tons from 52.7 thousand tons in the same period last year. Our copper net cash unit costs improved by 19% reflecting higher copper production and byproduct credits. Looking ahead, guidance for our copper segment remains unchanged and we continue to expect further growth in copper production this year to 455 thousand to 530 thousand tons from 454 thousand tonnes last year. Looking at our zinc segment on Slide 16. Compared with the prior year, gross profit before D&A increased by 122% to $353 million with margins significantly higher at 39% compared with 28% previously.

This improvement was primarily driven by strong performance at Trail Operations. This reflects materially higher byproduct pricing, and the continued execution of our value driven optimization of feed sources and production including prioritizing processing of residues in the near term. As a result, gross profit before depreciation and amortization (D&A) at Craig increased to $203 million compared with $42 million in the same period last year, despite the planned shutdown of the lead circuit during the quarter. On July 7th, we also announced a strategic investment agreement with the government of Canada to support strategic metals production at Trail. The initiative has the potential to expand production of germanium and antimony and add new gallium capacity.

It also remains subject to certain conditions as well as evaluation under our capital allocation framework. At Red Dog, zinc production in the second quarter reflected lower grades and recoveries, consistent with the mine plan and zinc sales were within our guidance range at 37 thousand tonnes. Zinc net cash unit costs improved 29% benefiting from lower smelter processing charges and higher byproduct credits. Looking ahead, Red Dog shipping season commenced on July 12th. As in previous years, the majority of diesel deliveries are expected during the third quarter. Alongside zinc concentrate sales of 220 thousand to 270 thousand tons reflecting the normal seasonal shipping pattern. Our guidance for the zinc business remains unchanged.

We continue to expect zinc in concentrate production of 410 thousand to 460 thousand tonnes and refined zinc production of 190 thousand to 230 thousand tonnes in 2026. Turning now to our net cash unit costs on Slide 17. Despite oil price headwinds during the quarter, we reduced net cash unit costs across both our copper and zinc businesses reflecting strong operational performance cost discipline, and favorable byproduct pricing. In copper, total cash unit cost declined despite approximately 7¢ US per pound of energy inflation impact, supported by higher production across our operations.

Net cash unit costs improved even further from $2.02 US per pound to a $1.64 US per pound as stronger byproduct production and pricing particularly for molybdenum, silver, and zinc increased by product credits. In zinc, total cash unit costs were broadly stable as the impact of lower production volumes has been largely offset by lower smelter processing charges. Red Dog has been largely insulated from higher energy year to date, as diesel for the 2026 shipping season had not yet been delivered. Net cash unit cost in zinc also improved significantly from 49¢ US per pound to 35¢ US per pound driven by stronger byproduct prices, including silver, lead, and germanium.

These cost improvements, together with the favorable pricing environment, translated into materially stronger margins across both of our business segments. Turning now to our margins on Slide 18. We delivered a significant expansion in margins across both of our business segments during the second quarter, reflecting the benefit of higher commodity prices, together with continued operational improvements and disciplined cost performance. In copper, adjusted EBITDA margin increased to 70% compared with 45% in the second quarter of last year, driven by stronger copper prices, higher production and sales volumes and strong byproduct credits.

In zinc, our adjusted EBITDA margin increased to 38% from 25% a year ago, reflecting higher zinc prices, stronger byproduct credits, and the continued optimization of feed sources at Trail operations. Turning now to our balance sheet on Slide 19. As a result of the strong cash generation from our operations, we continue to strengthen our balance sheet while funding the Highland Valley mine life extension project. In the second quarter of 26, we generated significant cash flow from operations of 1.7 billion Net cash increased by $756 million during the quarter to 1.2 billion representing an increase of $1 billion over the first half of this year.

Our liquidity strengthened further to $10.3 billion as at June 30, including $6.1 billion of cash. We also continue to reduce debt through our semiannual repayments under the QB project finance facility positioning us with a strong balance sheet as we move towards completion of the Anglo merger. I will now pass it back to Jonathan for closing remarks.

Jonathan H. Price: Thanks, Crystal. I will now wrap up briefly on Slide 21. We are pleased to have delivered another quarter of strong operational and financial performance. Reflecting the continued progress we are making across the business. As we look to the second half of the year, our key near term priorities remain clear. Advancing our merger of equals with Anglo American, including securing the remaining regulatory approval and progressing integration planning, continuing to deliver safe, stable, and reliable operating performance across our business, further strengthening the performance of QB through continued operational improvements and progress on the tailings management facility, and advancing the Highland Valley mine life extension project.

By remaining focused on these priorities, we believe we are well positioned to complete the merger and create a leading critical minerals company with the financial strength, operational capability, and portfolio quality to deliver long term value for shareholders. So with that, over to you, operator, for questions, please.

Operator: Certainly. To join the question queue, please press * then 1 on your touch We ask that you please limit yourself to 1 question and 1 follow-up. You are using a speakerphone, please ensure you lift the handset before pressing any keys. If you wish to remove yourself from the question queue, you may press * then 2. The first question comes from Orest Wowkodaw with Scotiabank. Please go ahead.

Orest Wowkodaw: Hi, good morning. it is really great to see the ahead. Hi, operational turnaround, especially QB. And before my question, I just wanted to also out a big thank you to Emma for all her help at IR with the best on her next opportunity. What specifically with I am just curious if advancing Rockbench 6 and advancing some of the infrastructure, if that could positively impact throughput rates in terms of versus plan for 2027 and 2028?

Jonathan H. Price: Thanks, Orest, and thank you as well for that comment on Emma. I will talk a little bit about that later. The short answer to your question is no, Orest. We do not that we are taking here expect any impact to throughput rates directly the result of the planned actions You know, as mentioned, we see this as an acceleration and, you know, essentially a derisking that allows us to further underwrite that ongoing operational continuity that we have worked so hard to achieve over the last 3 quarters.

Orest Wowkodaw: Okay. And second question, just in terms of the regulatory approval specifically from China, you give us an update on where things are at whether you any requests for potential offtakes or, asset sales or anything like that? Or is it just really I am curious to what the Chinese may be asking for in terms of the process.

Jonathan H. Price: Yeah. Look. I would say that the process with SAMR, which is the market regulator in China, is unfolding, you know, in the normal course. You know, we continue to respond for to information requests, you know, aligned with the typical pro typical process here. You know, we are we are moving ahead. We still expect completion to be within the originally announced 12 to 18 months from the date of announcement. And beyond that, there is there is nothing more to say in, you know, in that we have not received any request for remedies arriving arising from the approval process. So, you know, business as usual for the time being.

Orest Wowkodaw: Okay. Thank you. And just finally, how quickly do you receive that Chinese approval?

Jonathan H. Price: Sorry. I you just cut out a little bit there. How quickly sorry.

Orest Wowkodaw: How quickly do you expect the transaction to close? Post the Chinese approval?

Jonathan H. Price: Very quickly. You know, we would be talking a matter of a couple of weeks, no more than that. Okay. Thank you very much. Thanks, Orest. Appreciate it.

Operator: The next question comes from Dalton Baretto with Canaccord Genuity. Please go ahead.

Analyst: Thanks, operator. Good morning, Jonathan and team. Thanks for taking my question. On the assumption that you do get the SAMR approvals in short order and you close fairly quickly, Can you give us an update on where you are at in terms of the integration planning? what is of things have been, you know, sort of settled on and ready, you know, what are you still working on? And any thinking around the pro form a portfolio?

Jonathan H. Price: Yeah. Thanks for those questions, Dalton. An enormous amount of work going on integration planning between ourselves and North American right now. Of course, you know, we have to continue to operate entirely as independent companies until such time as the merger closes. We run our own businesses. there is no crossover of decisions in relation to operations or current activities. In the meantime, of course, we have got to ensure that we can seamlessly integrate these 2 new companies. To do 2 things. 1, to maintain operational continuity and to ensure we can operate efficiently and effectively. On the other hand, of course, we have we have got, you know, a lot of value to capture here.

Through the combination of these businesses. So we are planning for both of those things. On the 1 hand, you know, we have to plan the way forward around business processes and systems, organizational structures. Of course, the appointment of leadership and other teams throughout the new organization will be key to standing that new business up. On the other hand, you know, we are we are working hard to build out the synergy capture plans that we have at a much higher level of fidelity to ensure that as soon as the merger closes, teams in the new Anglo Tech organization can get after capturing that value.

So an enormous amount of work going on, and we would expect that work to continue with a high level of intensity all the way through to completion of the transaction. Thanks, Jonathan. And maybe in parallel, as you are working through that, can you comment on where you guys are at either as tech or potentially with Anglo American on the Collahuasi-QB2 type specifically from an ownership perspective? Yeah. So we remain super focused on that. Of course, you know, given the significant value opportunity that presents.

As we have said before, we continue to believe that it offers the shareholders of both QB and Collahuasi the fastest growth route to copper growth lowest risk, lowest capital intensity, and therefore delivers the highest returns of any opportunity available to either operation and either set of shareholders here You know, 1 of the first steps there, of course, is advancing a formal study to ensure that we validate and underwrite the investment thesis here and begin to shape exactly what that project will look like from an execution perspective. We have engaged with shareholders of both operations, We have engaged with local governments.

And, you know, we remain very optimistic that we will arrive at a mutually beneficial agreement here for all parties. Because there is so much value to be shared. You know, I will not comment more on the nature of those commercial interactions that this point because, of course, they remain confidential. But we remain very focused as Anglo American on pursuing that synergy capture opportunity. Orest. Thanks, Shantanu. And just maybe 1 more thing on that. Is that study being conducted or will be conducted as a collective? Or are the different shareholders having people look at this?

So, you know, ultimately, of course, that is gonna have to be a, you know, a shared piece of work across both sites. But what we have to do is of course, come into those interactions with you know, with the specifics here. We are working with Anglo American on developing that. So, you know, we have the coverage, of course, as we do today across both QB and Collahuasi. In that respect. But, of course, ultimately, what that looks like is going to be something for all shareholders to be part of. But for the time being, that is something we are progressing at pace. Thanks, Jonathan. that is all for me.

Operator: The next question comes from Anita Soni with CIBC World Markets. Please go ahead.

Anita Sarney: Thanks for taking my questions. And again, similar to Orest, congratulations on your move and best wishes on your next endeavor. And thanks for all your help over the last couple of years. I just wanted to ask firstly on this Rock Bench 6. What would you need to see to be able to make that go ahead decision to accelerate the Rockbench 6 construction?

Jonathan H. Price: I think, Anita, you know, as ever, when we when we make a decision to invest capital, we need to ensure that, you know, that is the right thing to do in terms of the uplift that it will give to the value of the operation. I think we have a pretty strong conviction view that this is the direction that we will go in because of that acceleration and derisking that I mentioned. But we have just got our, you know, our usual investment committee of processes to work through here and the and the technical assessment of Dale and his team.

But I said, I think a high likelihood that is the direction that we will we will follow.

Anita Sarney: And the idea is that you now build out the rock bench so you would have a wide enough crest field to put the infrastructure in earlier, and then that would help with the sand deposition and accelerate that?

Jonathan H. Price: Yeah. that is exactly right. Of course, you know, the an additional rock bench here, Rock Bench 6 will significantly widen the crest that will enable the installation of the permanent infrastructure on that crest and, of course, then the efficiency of the deposition of tailings upstream and the definite deposition of sand downstream will be significantly enhanced and more efficient than the practices that we are deploying today.

Anita Sarney: Okay. So would there any be any kind of cost savings from that? I mean, just more of the sand deposition is being taken up by just sort of a, you know, automatic deposition rather than physically placing it with trucks?

Jonathan H. Price: Is there any kind of soft cost savings that you guys are looking at? Yes. I mean, I think that is a fair assumption. You know, I do not think they will be, you know, dramatically material. In the context of the overall operation at QB, but, yes, you are right in that, you know, we will gain efficiencies from progressing to this next phase of a steady state operation. Okay.

Anita Sarney: And I just have 1 quick question. On the Antamina zinc pipeline, is there any update on where that stands? I read it says in your release that was shut down during the quarter. Is there any idea when it will would restart?

Jonathan H. Price: Yeah. it is Anita, that is now fixed, and it is it is back in operation. Okay. Thank you, and congratulations on a good quarter. Thanks, Anita.

Operator: The next question comes from Craig Hutchinson with TD Please go ahead. The next question comes from Craig Hutchinson with TD Colin. Please go ahead.

Craig Hutchinson: Hi, guys. Good morning. I just to ask a follow-up question on the throughput at 115 thousand to 132 thousand tonnes, is the goal now in the second half of the year is really kind of push the mill up to its design rate?

Jonathan H. Price: Or are you guys still kind of being a bit cautious on that? I guess, maybe as a follow-up, like, is there anything on the tailings management facility or mill itself that would prevent you guys from operating at design? Yeah. Dale, do you want to provide a bit of color on that, please?

Craig Hutchinson: Sure. Thanks for the question. I think, really, the focus for us in recent quarters of stable operations is stability. And what that is allowed us to do is to, you can see, sort of achieve that stable metallurgical recovery. As well as improved moly plant performance. But, agree, our focus now is to build upon that stability and start optimizing and improving the cloud performance and it is unconstrained from the TMF. So, really, our focus is to be able to achieve stable operations and be able to drive demonstrated results through that improvement over the next few quarters. So that is our focus there.

Jonathan H. Price: Okay. And then that is the improvements in recovery. Is part of that just the stability of the operation, or are you also starting to see improvements just in terms of the geology less oxide, less clay type?

Craig Hutchinson: Interferences with the recoveries. Yeah. As the as the mine continues to develop, we do expect to see improved recoveries as result of the ore type. At the same time, what we are doing today is through stable operations, it is far easier to identify those to make some incremental improvements. This is allowing us also to drive more operating discipline to achieve that stability and repeatability of performance it is really a combination of the 2 as we keep moving forward.

Jonathan H. Price: Okay. Orest. And just maybe 1 last question for me. Just on the Trail deal that you guys announced a few weeks back, just is the plan to double the production of germanium, is part of that just better recoveries from a Red Dog, or is it more you are gonna source more ore from other places? And I am just trying to understand, how much of an uplift would you be for you guys from your existing operations versus just more of a tolling-type of arrangement?

Craig Hutchinson: Yeah. So, Craig, that is more about increasing the processing capacity at Trail over time so we can handle more feed. You know, of course, the majority of our feed today comes from Red Dog, and, of course, that is been supplemented by certain residues and other sources to complement that. And we continue to look on a go forward basis at a wide range of potential sources you know, our commercial group working with our corporate development group has been very active sourcing a, you know, a wide range of feeds to support that going forward.

But fundamentally, the additional volume is not is not a recovery game. it is actually expanding processing capacity, and that is what the investment would be directed towards Agree.

Jonathan H. Price: Thanks, guys. Thank you, Greg.

Operator: The next question comes from Liam Fitzpatrick with Deutsche Bank. Please go ahead.

Liam Fitzpatrick: Hi. Jonathan and team. 2 quick ones probably. First 1, just on indexation. In Canada, any recent updates that you can share with us on that? And second 1 on Trail. You did highlight that Q2 would be impacted by maintenance, but profitability has still remained very strong compared to history in Q2. So should we expect similar or better profitability in the second half? Or anything else you would highlight on that asset?

Jonathan H. Price: Thank you, Liam. I will get Crystal to comment on Trail and the second half. To the point on indexation, there was some movement on that yesterday when we heard from S and P having released a proposal to the market for comment on the potential for foreign issuers to have indexation, which of course, has been the matter that we have been looking to deal with.

Now issuers would have to meet certain domicile criteria for Canada, but that is been quite encouraging in that it talks about the materiality being an important part of the Canadian investment landscape, and it also does not require Canada to be the highest level of, you know, economic component of a business of an issuer to achieve that. So we are quite encouraged by what we have seen overnight. Also, S and P rather than applying strict criteria are giving themselves some flexibility here and some discretion around how these decisions are made and, importantly, when these decisions are made. So the consultation process will start. Shortly. it is open for comment until the August 21st.

And, you know, we expect beyond that to learn more. So I think the signals there, Liam, are being quite positive here, and, you know, we will we will continue to watch that carefully. And of course, our investors and other members of the investment community continue to advocate strongly for that development.

Crystal J. Prystai: And then, Crystal, on Trail, please. Hi, Liam. I hope the day is going well. Similar to what we said in the first quarter, as we think about Trail, we are very focused on the optimization and the profitability as we go forward really depends both on commodity prices as well as that feed profile continue to focus on maximizing profitability over volumes. But there is a couple of things I would note for the second half of the year. First being that we expect the refined zinc production to increase in the third quarter as we continue to optimize feed source, as I mentioned, and that also balances with processing residues.

And then we do have planned shutdowns for required in both zinc and lead in the fourth quarter. So I think those would be things I would use to moderate your expectations for the second half of the year.

Liam Fitzpatrick: Okay. that is great. Thank you.

Jonathan H. Price: Thanks, Liam.

Operator: The next question comes from Myles Allsop with UBS. Please go ahead.

Myles Allsop: Orest. Thanks. And 1 thing that surprised me a little bit is that you did not, you know, point to the upper end of guidance. I mean, how are you just being super prudent given history when thinking about production for this year? Or are there- is there a kind of realistic scenario where you could be at the midpoint of guidance rather than the top end of guidance?

Jonathan H. Price: Yeah, Myles. Thank you. I mean, you know, we are very focused on this, you know, operational consistency and stability through what throughout the year. that is a primary focus for us. I think we have we have spoken before, particularly at HVC that has been very much an H1 weighted story. You know, in the in the second half at HPC, we are going to have to have some downtime in the mills for tie ins to the mine life extension project, and we also expect you know, a reduction in grade as well from a feed perspective in the second half of 2026. So we are expecting lower production there. We are also expecting lower production at Antamina.

In the second half of the year. So, you know, of course, we will we will work as hard as we can to generate the best production outcomes possible across all of our sites, but we do still think that the guidance ranges that we have here are valid and appropriate and reflection and reflect well the full year outcomes that we are anticipating.

Myles Allsop: Okay. And going back to QB, the debottlenecking optimization, now that we are getting, you know, 3 steady quarters. And the tailings have been kind of derisked to a large degree. Should we be thinking about bringing forward the debottlenecking optimization opportunities, getting throughput up that one5, 20% or so?

Jonathan H. Price: Yeah, thanks for the- thanks for the question. I think, certainly, the work in achieving that stable operation is certainly highlighting key areas that will allow us to, 1, optimize and then think about future debottlenecking. So that work is in progress, really building upon that operational information that we are gathering to think about what is next and as we progress But, certainly, our focus now is to certainly drive that and provide that incremental improvement within what we have And that is really highlighting that the really the best cost effective way to cost effective ways to improve the operation as we move forward.

Myles Allsop: what is the best time frame to start debottlenecking? I mean, could that be sort of over the next 2 years? Or would we still be looking further out?

Jonathan H. Price: So I think that is part of the work that we are doing. To understand, what work we are actually needing to do and then how fast we can do that work. Just recognizing all the other work we are doing in terms of the broader picture, what QB will be, what it will look like, and how we progress. So I think that works still being defined to what we can do short and then what would take more work in a bit longer time. Okay. I think, Myles, you know, you can see from, you know, our disclosure today around some of the key operating parameters.

We, you know, we have still got work to do to push those towards design levels. And that provides a, you know, a higher base and a strong foundation on which to execute those debottlenecking projects. Yep. Thank you. Thanks, Myles.

Operator: The next question comes from Lawson Winder with Bank of America. Please go ahead.

Analyst: Thank you, operator. This is Adam Smierowski on for Lawson. I just had a follow-up question on the recovery initiative at QB2. Would you be able to describe some of the work that is being done there And you know, what level of copper recovery we should expect for the remainder of 2026 and into 2027?

Jonathan H. Price: Yeah. Yeah. So look, we are not going to, you know, reguide the copper recoveries. We have set out the parameters for this year that we are we are targeting to operate within. But, Dale, maybe if you can just give some color on some of the initiatives that we are pursuing to improve recoveries At least quite a bit of the work that we have done builds upon the comprehensive operational review that was done last year. 1 key element was certainly accelerated drilling, getting some more information around the ore body to help our operational plans and help develop key playbooks for different ore types as we go forward.

So our work's been done, and now we are currently optimizing that, and that is being fed into our different process control setups to allow us to be more efficient in what we do. In addition, we continue to progress installation of additional sensors and controls to allow us to be fine tuned the operation, really building upon that stable operation and see what we can do to improve that control and just that stable base. Continue to improve and optimize our reagent addition, building upon that stability that is allowed us to be more effective and efficient in how we see things.

And this gives us more confidence in the repeatability of our performance and our ability to build upon it as we continue to improve our throughput rates. Orest. Thank you. And just as to a question on costs. Q1 and Q2 net cash costs have been well below guidance. Byproduct prices are above the sort of the guidance that you provided. So my question is, are you on cash costs setting up to beat guidance and communicate sort of the sensitivity of those unit costs to byproduct prices, as well as especially for the diesel shipments going in. what sensitivity we have to zinc to the diesel prices?

Crystal J. Prystai: Crystal? Sure. Hi. Hope you are having a good day. Again, similar to the story on I think that is an important component as we think about the unit cost in the second half of the year. Obviously, we are very pleased with our cost performance year to date. There remains a lot of volatility in the byproduct pricing as well as in energy costs. So while we do have a more conservative, assumptions embedded in our in our guidance, because those were established late last year. We remain confident in the ranges. I think if byproduct pricing persists, expect to be below the midpoint on copper, and then similarly on the zinc side of things.

From a sensitivity perspective, I think there was a few things you had in there. I am I am not- I believe you said energy. And what the sensitivity to that was, for every sort of $10 change in, per barrel of WTI is about 1¢ on our zinc c ones and about 3¢ on copper. I am not sure if I captured everything that you were asking there, but feel free to weigh in if there was more. No. that is helpful on the energy and just on, some of the byproduct assumptions.

So I think silver is roughly double what you had in your in your guidance just sort of how, you know, $10 change in silver, how that is gonna affect net cost? Sorry. Just give me 1 quick second here to find, not at the top of my head. Can we set let can we circle back with you offline Sorry. I just need to get, the team to provide a bit more on that. I can provide it to you in EBITDA. Context, but I do not have the, I do not have the, c ones off the, off top here.

Analyst: that is perfect. Thank you.

Jonathan H. Price: Okay. We will come we will come back to you offline.

Operator: The next question comes from Brian with Raymond James. Please go ahead.

Analyst: Good morning and thank you for taking my question. I just want to follow-up on Craig's question about the germanium and I guess gallium and other stuff that the Canadian government is putting money in at Trail. As Red Dog, you know, as it currently sits, you know, it runs out over a number of years. We have got a new area. I have got a couple of questions. Does the new area have the same amount of germanium?

Or b, if it does not, how do you get your heads around the fact that you may be losing 1 of the major sources for germanium at Trail on a longer term basis if it is not grading the same the same way. And I realize that this is pretty competitive information. So I will accept whatever you are willing to just actually talk about. Thanks.

Jonathan H. Price: Yeah. Thanks for that question, Brian. I am going to pass you to Ian K. Anderson, our chief commercial officer, because in addition to Red Dog, which he can comment on, you know, he is also been looking at and working to develop a whole series of other feed sources to supplement the feed to Trail over to you, Ian.

Ian K. Anderson: Thanks for the question, Brian. I would say at the outset that decisions in terms of Red Dog NLE and the advancement of that project are independent. What we are doing at Trail. And, of course, subject to the normal both capital allocation and portfolio decisions that are required of any project. But, the feed sources for Trail come from a variety of places, including Red Dog, As we are advancing the Red Dog MLE project, which, of course, is rich in germanium, We have also entered into a number of recent transactions in order to secure offtake agreements with both zinc and germanium miners. And I will give you some examples.

So we recently had a transaction to divest the Apex germanium mine to Blue Moon Metals. And that secured an offtake agreement for zinc concentrate from Blue Moon and marketing rights, for that product produced from Apex. We also had a recent investment on an equity basis to rebuild zinc, lead, and silver capacity in the Idaho Silver Valley, an area that is really growing, and you are seeing more production coming on there through Bunker Hill. And we also engaged in a recent divestment of the Sun-Smucker project to Valhalla Metals. That secured priority purchase rights. And last, an offer of last concentrates produced from the sun and Smucker properties. We are also working on a number of others.

And, of course, based on the announcement, this is an exciting area where there is lots of promise. We intend to continue our strategy of optimizing for value at Trail, both residues and feed sources are important component of that in order create optionality. Orest. that is very helpful. Can I just ask 1 more question? Because when I look at some of the other sources, Kapushi, China, would you take that stuff or are you trying to get your I assume it is all designed to be Western sources. We have got lots of offers, and we will be very careful about how we engage with those. But some of them are pretty exciting, as I said.

Both on the residue basis and on the raw feed basis. So more to come on that 1.

Analyst: Thank you very much. that is very helpful.

Jonathan H. Price: Thanks, Brian.

Operator: Thank you. We are out of time for further questions. I will now hand the call back over to Jonathan H. Price for closing remarks.

Jonathan H. Price: Okay. Thank you, operator. And before we sign off and to some of the kind comments earlier in the call, I did want to note that this is Emma Chapman's last quarterly conference call with tech. Of course, I would like to thank Emma for her incredible contributions, for the incredible relationships that she's built and has maintained. Throughout both the sell side and the buy side, and I know she's worked in very close partnership with many of you. Of course, Emma's been with us through what has been an intensely active period of time, and she's done an amazing job on behalf of Teck. And we wish her all the very best in her next chapter.

Edwin Shadeo has stepped in as acting vice president, investor relations and treasurer Many of you will already know Edwin from his previous roles with the company since 2005. he is been in treasury. he is been in corporate development and previously in investor relations. So please do reach out to Edwin, and, of course, other members of our IR team on anything that you want to follow up on. So thanks again to all of you for joining us today, and enjoy the rest of your day. Thank you.

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