Exhibit 99.

Teck Resources Limited

Consolidated Financial Statements
For the Years Ended December 31, 2023 and 2022
Management’s Responsibility for Financial Reporting

Management is responsible for the integrity and fair presentation of the financial information contained in
this annual report. Where appropriate, the financial information, including financial statements, reflects
amounts based on the best estimates and judgments of management. The financial statements have
been prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting
Standards Board. Financial information presented elsewhere in the annual report is consistent with that
disclosed in the financial statements.

Management is responsible for establishing and maintaining adequate internal control over financial
reporting. Any system of internal control over financial reporting, no matter how well-designed, has
inherent limitations. Therefore, even those systems determined to be effective can provide only
reasonable assurance with respect to financial statement preparation and presentation. The system of
controls is also supported by a professional staff of internal auditors who conduct periodic audits of many
aspects of our operations and report their findings to management and the Audit Committee.

Management has a process in place to evaluate internal control over financial reporting based on the
criteria established by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)
2013 framework.

The Board of Directors oversees management’s responsibility for financial reporting and internal control
systems through an Audit Committee, which is composed entirely of independent directors. The Audit
Committee meets periodically with management, our internal auditors and independent auditors to review
the scope and results of the annual audit, and to review the financial statements and related financial
reporting and internal control matters before the financial statements are approved by the Board of
Directors and submitted to the shareholders.

PricewaterhouseCoopers LLP, an independent registered public accounting firm, appointed by the

shareholders, have audited our financial statements in accordance with the standards of the Public
Company Accounting Oversight Board (United States) and have expressed their opinion in the Report of
Independent Registered Public Accounting Firm.

Jonathan H. Price
President and Chief Executive Officer

Crystal J. Prystai
Senior Vice President and Chief Financial Officer
February 22, 2024
Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of Teck Resources Limited

Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidated balance sheets of Teck Resources Limited and its
subsidiaries (together, the Company) as of December 31, 2023 and 2022, and the related consolidated
statements of income, comprehensive income, changes in equity and cash flows for the years then ended,
including the related notes (collectively referred to as the consolidated financial statements). We also have
audited the Company’s internal control over financial reporting as of December 31, 2023, based on criteria
established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the financial position of the Company as of December 31, 2023 and 2022, and its financial
performance and its cash flows for the years then ended in conformity with IFRS Accounting Standards as
issued by the International Accounting Standards Board. Also in our opinion, the Company maintained, in
all material respects, effective internal control over financial reporting as of December 31, 2023, based on
criteria established in Internal Control – Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Company’s management is responsible for these consolidated financial statements, for maintaining
effective internal control over financial reporting, and for its assessment of the effectiveness of internal
control over financial reporting, included in Management’s Report on Internal Control over Financial
Reporting, appearing in Management’s Discussion and Analysis. Our responsibility is to express opinions
on the Company’s consolidated financial statements and on the Company’s internal control over financial
reporting based on our audits. We are a public accounting firm registered with the Public Company
Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to
the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations
of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that
we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial
statements are free of material misstatement, whether due to error or fraud, and whether effective internal
control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of
material misstatement of the consolidated financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included examining, on a test basis,
evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also

PricewaterhouseCoopers LLP
PricewaterhouseCoopers Place, 250 Howe Street, Suite 1400, Vancouver, British Columbia, Canada V6C 3S7
T: +1 604 806 7000, F: +1 604 806 7806, [email protected]

“PwC” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.

included evaluating the accounting principles used and significant estimates made by management, as
well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal
control over financial reporting included obtaining an understanding of internal control over financial
reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and
operating effectiveness of internal control based on the assessed risk. Our audits also included performing
such other procedures as we considered necessary in the circumstances. We believe that our audits
provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles. A company’s internal
control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the
assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted accounting principles,
and that receipts and expenditures of the company are being made only in accordance with authorizations
of management and directors of the company; and (iii) provide reasonable assurance regarding prevention
or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have
a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk
that controls may become inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the
consolidated financial statements that were communicated or required to be communicated to the audit
committee and that (i) relate to accounts or disclosures that are material to the consolidated financial
statements and (ii) involved our especially challenging, subjective, or complex judgments. The
communication of critical audit matters does not alter in any way our opinion on the consolidated financial
statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing
separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Management’s Assessment of Whether the Steelmaking Coal Business Should be Classified as Held for
Sale
As described in Notes 4, 6 and 30 to the consolidated financial statements, in the fourth quarter of 2023,
management announced an agreement to sell the Company’s interest in its steelmaking coal business,
through a sale of the majority interest to Glencore plc (Glencore). Closing of the sale of the majority
interest to Glencore remains subject to receipt of competition approvals in several jurisdictions and
approvals under the Investment Canada Act. As of December 31, 2023, the total assets of the
steelmaking coal business were $19,364 million. In order to be classified as held for sale, a non-current
asset or disposal group must be available for immediate disposal, by sale or otherwise, in its present
condition subject only to terms that are usual and customary for sales of such assets and liabilities and its
sale must be highly probable. Management applied judgment in assessing whether the steelmaking coal
business should be considered as held for sale as of December 31, 2023, which included considering the
likelihood of obtaining requisite regulatory, stakeholder and political approvals. Management believes that
the timing and outcome of these approval processes is not known with sufficient certainty and as such,
management was not in a position to conclude that receipt of requisite approvals, and thus closing of the
sale, is highly probable. Therefore, management determined that the steelmaking coal business did not
meet the criteria to be classified as held for sale as of December 31, 2023.

The principal considerations for our determination that performing procedures relating to management’s
assessment of whether the steelmaking coal business should be classified as held for sale is a critical
audit matter are (i) significant judgment by management when making this assessment, including
assessing whether it is highly probable that the sale will receive all necessary approvals, and (ii) a high
degree of auditor judgment, subjectivity and effort in performing procedures and evaluating audit evidence
related to the probability that the sale will receive all necessary approvals.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with
forming our overall opinion on the consolidated financial statements. These procedures included testing
the effectiveness of controls relating to management’s assessment of whether the steelmaking coal
business should be classified as held for sale, including controls over assessing the probability that the
sale will receive all necessary approvals. These procedures also included, among others, evaluating the
reasonableness of management’s assessment of whether the steelmaking coal business should be
classified as held for sale as of December 31, 2023, by evaluating (i) written agreements between the
parties related to the sale, (ii) public statements by the Company, (iii) applicable regulations, (iv) relevant
regulatory precedents, (v) available public commentary and (vi) information prepared by management’s
external advisors.

Goodwill Impairment Tests for the Steelmaking Coal Group of Cash Generating Units (the Steelmaking
Coal CGUs)
As described in Notes 3, 4, 6, 9 and 18 to the consolidated financial statements, management performs its
annual goodwill impairment test as of October 31 of each year, or when there is an indication that the
goodwill may be impaired. An impairment loss exists if the cash generating unit (CGU) or group of CGUs’
carrying amount, including goodwill, exceeds its recoverable amount. The total carrying value of the
steelmaking coal goodwill allocated to the steelmaking coal CGUs as of December 31, 2023 was $702
million. In November 2023, management entered into an agreement to sell the Company’s interest in the
steelmaking coal CGUs and estimated the recoverable amount of the steelmaking coal CGUs based on
the present value of the agreed-upon cash proceeds from the sale transactions, plus the expected
discounted cash flows from the steelmaking coal CGUs until expected closing of the sale of the majority
interest to Glencore. As of December 31, 2023, as a result of the strengthening of the Canadian dollar
against the U.S. dollar affecting the Canadian dollar equivalent of the expected consideration to be
received in the sale of the Company’s interest in the steelmaking coal CGUs, management performed an
additional impairment test for the steelmaking coal CGUs. Management updated the estimated
recoverable amount based on the consideration expected to be received, consistent with the annual
goodwill testing performed as at October 31, 2023. At both dates, the recoverable amounts of the
steelmaking coal CGUs exceeded the carrying value, and as a result, no impairment loss was recognized
by management. Significant assumptions are used by management in the recoverable amount
calculations, which include: the steelmaking coal price, coal sales volumes, operating costs and foreign
exchange rates.

The principal considerations for our determination that performing procedures relating to the goodwill
impairment tests for the steelmaking coal CGUs is a critical audit matter are (i) significant judgment by
management when determining the recoverable amounts of the steelmaking coal CGUs; (ii) a high degree
of auditor judgment, subjectivity and effort in performing procedures to evaluate significant assumptions
used in the recoverable amount calculations, relating to steelmaking coal price, coal sales volumes,
operating costs and foreign exchange rates; and (iii) the audit effort involved the use of professionals with
specialized skills and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with
forming our overall opinion on the consolidated financial statements. These procedures included testing
the effectiveness of controls relating to management’s goodwill impairment tests, including controls over
the determination of the recoverable amounts of the steelmaking coal CGUs. These procedures also
included, among others, testing management’s process for determining the recoverable amounts of the
steelmaking coal CGUs, including evaluating the appropriateness of the recoverable amount calculations,
testing the completeness and accuracy of underlying data and evaluating the reasonableness of the
significant assumptions used in the recoverable amount calculations. Evaluating the reasonableness of
management’s assumptions involved considering their consistency with: (i) external market and industry
data for steelmaking coal prices and foreign exchange rates, and (ii) current and past performance of the
steelmaking coal CGUs for coal sales volumes and operating costs.

Goodwill Impairment Test for the Quebrada Blanca Cash Generating Unit (the QB CGU)
As described in Notes 3, 4, 9 and 18 to the consolidated financial statements, management performs its
annual goodwill impairment test as of October 31 of each year, or when there is an indication that the
goodwill may be impaired. An impairment loss exists if the CGU’s carrying amount, including goodwill,
exceeds its recoverable amount. The total carrying value of the goodwill allocated to the QB CGU as of
December 31, 2023 was $406 million. Management used a discounted cash flow model with an estimate
of the in situ value applied to the remaining resources to determine the recoverable amount of the QB
CGU. The recoverable amount of the QB CGU exceeded the carrying value, and as a result, no
impairment loss was recognized by management. Significant assumptions are used in the determination of
the recoverable amount, which include: commodity prices, mineral reserves and resources, mine
production, operating costs, capital expenditures, the discount rate, and the fair value per pound of copper
equivalent used in the determination of the in situ value. The mineral reserves and resources, mine
production and capital expenditures for the QB CGU have been prepared by or under the supervision of
qualified persons and management’s experts (management’s specialists).
The principal considerations for our determination that performing procedures relating to the goodwill
impairment test for the QB CGU is a critical audit matter are (i) significant judgment by management when
determining the recoverable amount of the QB CGU; (ii) management’s specialists were used to estimate
the reserves and resources, mine production and capital expenditures; and (iii) a high degree of auditor
judgment, subjectivity and effort in performing procedures to evaluate significant assumptions used in the
determination of the recoverable amount, relating to commodity prices, mineral reserves and resources,
mine production, operating costs, capital expenditures, the discount rate and the fair value per pound of
copper equivalent used in the determination of the in situ value; and (iv) the audit effort involved the use of
professionals with specialized skills and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with
forming our overall opinion on the consolidated financial statements. These procedures included testing
the effectiveness of controls relating to management’s QB CGU goodwill impairment test, including
controls over the determination of the recoverable amount of the QB CGU. These procedures also
included, among others, testing management’s process for determining the recoverable amount of the QB
CGU, including evaluating the appropriateness of the discounted cash flow model and the in situ fair value
approach, testing the completeness and accuracy of underlying data and evaluating the reasonableness of
the significant assumptions used in the determination of the recoverable amount. Evaluating the
reasonableness of management’s assumptions involved considering their consistency with (i) external
market and industry data for commodity prices, (ii) recent actual capital expenditures incurred for capital
expenditures, (iii) recent actual operating expenditures incurred as well as market and industry data for
operating costs and (iv) other third party information for mine production. The work of management’s
specialists was used in performing the procedures to evaluate the reasonableness of mineral reserves and
resources, mine production and capital expenditures. As a basis for using this work, management’s
specialists’ qualifications were understood and the Company’s relationship with management’s specialists
was assessed. The procedures performed also included evaluation of the methods and assumptions used
by management’s specialists, tests of the data used by management’s specialists, and an evaluation of
their findings. Professionals with specialized skill and knowledge were used to assist in the evaluation of
the reasonableness of the discount rate and the fair value per pound of copper equivalent.

/s/PricewaterhouseCoopers LLP

Chartered Professional Accountants

Vancouver, Canada
February 22, 2024

We have served as the Company’s auditor since 1964.

Teck Resources Limited
Consolidated Statements of Income
Years ended December 31

(CAD$ in millions, except for share data) 2023 2022

Revenue (Note 7) $ 15,011 $ 17,316
Cost of sales (9,868) (8,745)
Gross profit 5,143 8,571
Other operating income (expenses)
General and administration (317) (236)
Exploration (86) (90)
Research and innovation (164) (157)
Other operating income (expense) (Note 10) (206) (1,102)
Profit from operations 4,370 6,986
Finance income (Note 11) 112 53
Finance expense (Note 11) (274) (203)
Non-operating income (expense) (Note 12) (266) (275)
Share of profit of joint venture (Note 16) 2 4
Profit from continuing operations before taxes 3,944 6,565
Provision for income taxes from continuing operations (Note 23(a)) (1,610) (2,495)
Profit from continuing operations 2,334 4,070
Loss from discontinued operations (Note 5) (26) (772)
Profit for the year $ 2,308 $ 3,298

Profit (loss) from continuing operations attributable to:

Shareholders of the company $ 2,435 $ 4,089
Non-controlling interests (101) (19)
Profit from continuing operations for the year $ 2,334 $ 4,070

Profit (loss) attributable to:

Shareholders of the company $ 2,409 $ 3,317
Non-controlling interests (101) (19)
Profit for the year $ 2,308 $ 3,298

Earnings per share from continuing operations

Basic $ 4.70 $ 7.77
Diluted $ 4.64 $ 7.63
Loss per share from discontinued operations
Basic and diluted $ (0.05) $ (1.47)
Earnings per share
Basic $ 4.65 $ 6.30
Diluted $ 4.59 $ 6.19
Weighted average shares outstanding (millions) 517.8 526.7
Weighted average diluted shares outstanding (millions) 525.3 535.9
Shares outstanding at end of year (millions) 517.3 513.7

The accompanying notes are an integral part of these financial statements.

7
Teck Resources Limited
Consolidated Statements of Comprehensive Income
Years ended December 31

(CAD$ in millions) 2023 2022

Profit for the year $ 2,308 $ 3,298

Other comprehensive income (loss) for the year

Items that may be reclassified to profit
Currency translation differences (net of taxes of $(9) and $9) (383) 826
Change in fair value of debt securities (net of taxes of $nil and $nil) 1 (3)
Share of other comprehensive income of joint venture — 1
(382) 824
Items that will not be reclassified to profit
Change in fair value of marketable equity securities (net of taxes of $1 and $(14)) (5) 96
Remeasurements of retirement benefit plans (net of taxes of $(68) and $13) 151 (45)
146 51
Total other comprehensive income (loss) for the year (236) 875
Total comprehensive income for the year $ 2,072 $ 4,173

Total comprehensive income (loss) attributable to:

Shareholders of the company 2,191 4,132
Non-controlling interests (119) 41
$ 2,072 $ 4,173

Total comprehensive income (loss) attributable to shareholders of the company from:

Continuing operations 2,217 4,904
Discontinued operations (26) (772)
$ 2,191 $ 4,132

The accompanying notes are an integral part of these financial statements.

8
Teck Resources Limited
Consolidated Statements of Cash Flows
Years ended December 31
(CAD$ in millions) 2023 2022
Operating activities
Profit for the year from continuing operations $ 2,334 $ 4,070
Depreciation and amortization 1,931 1,674
Provision for income taxes from continuing operations 1,610 2,495
Gain on disposal or contribution of assets (273) (21)
Loss on debt redemption or purchase — 58
Net finance expense 162 150
Income taxes paid (990) (1,217)
Remeasurement of decommissioning and restoration provisions for closed operations 103 83
QB2 variable consideration to IMSA and ENAMI 156 188
Other 41 168
Net change in non-cash working capital items (990) (107)
Net cash provided by continuing operating activities 4,084 7,541
Net cash provided by discontinued operating activities — 442
4,084 7,983
Investing activities
Expenditures on property, plant and equipment (4,678) (4,423)
Capitalized production stripping costs (1,104) (1,042)
Expenditures on investments and other assets (137) (199)
Proceeds from sale of Fort Hills 1,014 —
Proceeds from investments and assets 162 113
Net cash used in continuing investing activities (4,743) (5,551)
Net cash used in discontinued investing activities (14) (129)
(4,757) (5,680)
Financing activities
Proceeds from debt 230 569
Redemption, purchase or repayment of debt (710) (1,323)
Repayment of lease liabilities (160) (138)
QB2 advances from SMM/SC 1,292 899
Interest and finance charges paid (753) (459)
Issuance of Class B subordinate voting shares 63 234
Purchase and cancellation of Class B subordinate voting shares (250) (1,392)
Dividends paid (515) (532)
Contributions from non-controlling interests 439 307
Distributions to non-controlling interests (54) (78)
Other liabilities (48) (46)
Net cash used in continuing financing activities (466) (1,959)
Net cash used in discontinued financing activities (3) (31)
(469) (1,990)
Increase (decrease) in cash and cash equivalents (1,142) 313
Change in cash classified as held for sale 35 (35)
Effect of exchange rate changes on cash and cash equivalents (32) 178
Cash and cash equivalents at beginning of year 1,883 1,427
Cash and cash equivalents at end of year $ 744 $ 1,883

Supplemental cash flow information (Note 13)

The accompanying notes are an integral part of these financial statements.

9
Teck Resources Limited
Consolidated Balance Sheets
As at December 31

(CAD$ in millions) 2023 2022

ASSETS
Current assets
Cash and cash equivalents (Note 13) $ 744 $ 1,883
Current income taxes receivable 94 92
Trade and settlement receivables 2,096 1,527
Inventories (Note 14) 2,946 2,685
Prepaids and other current assets 585 540
Assets held for sale (Note 5) — 1,566
6,465 8,293
Non-current assets held for sale (Note 5) — 173
Financial and other assets (Note 15) 1,874 1,466
Investment in joint venture (Note 16) 1,116 1,139
Property, plant and equipment (Note 17) 45,565 40,095
Deferred income tax assets (Note 23(b)) 65 75
Goodwill (Note 18) 1,108 1,118
$ 56,193 $ 52,359
LIABILITIES AND EQUITY
Current liabilities
Trade accounts payable and other liabilities (Note 19) $ 4,001 $ 4,367
Current portion of debt (Note 20) 515 616
Current portion of lease liabilities (Note 21(c)) 195 132
Current income taxes payable 1,181 104
Liabilities associated with assets held for sale (Note 5) — 645
5,892 5,864
Debt (Note 20) 6,019 6,551
Lease liabilities (Note 21(c)) 866 439
QB2 advances from SMM/SC (Note 22) 3,497 2,279
Deferred income tax liabilities (Note 23(b)) 6,188 6,778
Retirement benefit liabilities (Note 24(a)) 445 420
Provisions and other liabilities (Note 25) 4,994 3,517
27,901 25,848
Equity
Attributable to shareholders of the company 26,988 25,473
Attributable to non-controlling interests (Note 27) 1,304 1,038
28,292 26,511
$ 56,193 $ 52,359

Contingencies (Note 28)

Commitments (Note 29)
The accompanying notes are an integral part of these financial statements.

Approved on behalf of the Board of Directors

/s/Una M. Power /s/Tracey L. McVicar

Una M. Power Tracey L. McVicar
Chair of the Audit Committee Director

10
Teck Resources Limited
Consolidated Statements of Changes in Equity
Years ended December 31

(CAD$ in millions) 2023 2022

Class A common shares $ 6 $ 6
Class B subordinate voting shares
Beginning of year 6,133 6,201
Share repurchases (Note 26(i)) (60) (374)
Issued on exercise of options 83 306
Issued on dual class amendment (Note 26(b)) 302 —
End of year 6,458 6,133
Retained earnings
Beginning of year 18,065 16,343
Profit for the year attributable to shareholders of the company 2,409 3,317
Dividends paid (Note 26(h)) (515) (532)
Share repurchases (Note 26(i)) (190) (1,018)
Shares issued on dual class amendment (Note 26(b)) (302) —
Remeasurements of retirement benefit plans 151 (45)
End of year 19,618 18,065
Contributed surplus
Beginning of year 207 253
Share option compensation expense (Note 26(d)) 26 26
Transfer to Class B subordinate voting shares on exercise of options (20) (72)
End of year 213 207
Accumulated other comprehensive income attributable to shareholders of the
company (Note 26(f))
Beginning of year 1,062 202
Other comprehensive income (loss) (218) 815
Less remeasurements of retirement benefit plans recorded in retained earnings (151) 45
End of year 693 1,062
Non-controlling interests (Note 27)
Beginning of year 1,038 768
Loss for the year attributable to non-controlling interests (101) (19)
Other comprehensive income (loss) attributable to non-controlling interests (18) 60
Contributions from non-controlling interests 439 307
Distributions to non-controlling interests (54) (78)
End of year 1,304 1,038
Total equity $ 28,292 $ 26,511

The accompanying notes are an integral part of these financial statements.

11
Notes to Consolidated Financial Statements
Years ended December 31, 2023 and 2022
1. Nature of Operations

Teck Resources Limited and its subsidiaries (Teck, we, us or our) are engaged in mining and related activities including
research, exploration and development, processing, smelting, refining and reclamation. Our major products are copper, zinc,
and steelmaking coal. We also produce lead, precious metals, molybdenum, fertilizers and other metals. Metal products are sold
as refined metals or concentrates.

Teck is a Canadian corporation and our registered office is at Suite 3300, 550 Burrard Street, Vancouver, British Columbia,
Canada, V6C 0B3.

2. Basis of Preparation and New IFRS Accounting Standards Pronouncements

a) Basis of Preparation

These annual consolidated financial statements have been prepared by management in accordance with IFRS® Accounting
Standards as issued by the International Accounting Standards Board (IASB) (IFRS Accounting Standards) and were approved
by the Board of Directors on February 22, 2024.

b) New IFRS Accounting Standards Pronouncements

Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 – Interest Rate Benchmark Reform – Phase 2

In August 2020, the IASB issued amendments to IFRS 9, Financial Instruments (IFRS 9), IAS 39, Financial Instruments:
Recognition and Measurement, IFRS 7, Financial Instruments: Disclosures, IFRS 4, Insurance Contracts and IFRS 16, Leases
as a result of Phase 2 of the IASB’s Interest Rate Benchmark Reform project. The amendments address issues arising in
connection with reform of benchmark interest rates, including the replacement of one benchmark rate with an alternative one.
The amendments were effective January 1, 2021.

Term Secured Overnight Financing Rate (Term SOFR) was formally recommended by the Alternative Reference Rates
Committee (a committee convened by the U.S. Federal Reserve Board) as the recommended fallback for USD London
Interbank Offered Rate (LIBOR) based loans. Term SOFR is expected to be largely equivalent on an economic basis to LIBOR,
allowing for use of the practical expedient under IFRS 9. Our Quebrada Blanca Phase 2 project (QB2) financing facility,
Compañía Minera Antamina S.A. (Antamina) loan agreement and QB2 advances from Sumitomo Metal Mining Co., Ltd. and
Sumitomo Corporation (together referred to as SMM/SC) are our most significant financial instruments that were exposed to
LIBOR.

We transitioned our sustainability-linked revolving credit facility to Term SOFR in 2022. This did not affect our financial
statements as this credit facility remains undrawn. We transitioned the remaining financial instruments that used LIBOR
settings to Term SOFR in the second quarter of 2023. The transition did not result in a significant change to our financial
statements, our interest rate risk management strategy or our interest rate risk.

12
2. Basis of Preparation and New IFRS Accounting Standards Pronouncements (continued)

Amendment to IAS 1 and IFRS Practice Statement 2 – Disclosure of Accounting Policies

We adopted the amendments to IAS 1, Presentation of Financial Statements (IAS 1) on January 1, 2023 with prospective
application. The amendments to IAS 1 replace the requirement to disclose “significant” accounting policies with a requirement
to disclose “material” accounting policies. The adoption of these amendments has been reflected in the accounting policy
information disclosed.

We also referenced the amended IFRS Practice Statement 2 Making Materiality Judgements in application of the amendments
to IAS 1.

Amendments to IAS 7 and IFRS 7 – Supplier Finance Arrangements

In May 2023, the IASB issued amendments to IAS 7, Statement of Cash Flows and IFRS 7, Financial Instruments: Disclosures
to provide guidance on disclosures related to supplier finance arrangements that enable users of financial statements to assess
the effects of these arrangements on the entity’s liabilities and cash flows and on the entity’s exposure to liquidity risk. The
amendments are effective for annual periods beginning on or after January 1, 2024, with early adoption permitted.

We have chosen to early adopt these amendments effective for annual reporting periods beginning on or after January 1, 2023.
The adoption of these amendments did not have a material effect on our annual financial statements.

Amendments to IAS 12 – International Tax Reform – Pillar Two Model Rules

In May 2023, the IASB issued amendments to IAS 12, Income Taxes (IAS 12), to clarify the application of IAS 12 to income
taxes arising from tax law enacted or substantively enacted to implement the Organisation for Economic Co-operation and
Development (OECD)/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) Pillar Two Model rules.

Effective immediately upon release, the amendments introduced a mandatory temporary exception to the accounting for
deferred taxes arising from the implementation of Pillar Two Model rules which an entity must disclose if it has applied the
exception. In addition, effective for annual reporting periods beginning on or after January 1, 2023, disclosure is required to
help users of the entity’s financial statements to better understand the entity’s exposure to Pillar Two income taxes.

In Canada, draft legislation to implement the Global Minimum Tax Act (GMTA) within the framework of the OECD’s Pillar
Two Model rules was released in August 2023 for public consultation but as of December 31, 2023, the GMTA has not been
substantively enacted. Based on Pillar Two legislation already enacted in the United Kingdom, Ireland, and Japan, where we
have ancillary operations, there is no exposure to any material Pillar Two taxes.

Amendments to IAS 1 – Presentation of Financial Statements

In October 2022, the IASB issued amendments to IAS 1, Presentation of Financial Statements titled Non-current Liabilities
with Covenants. These amendments sought to improve the information that an entity provides when its right to defer settlement
of a liability is subject to compliance with covenants within 12 months after the reporting period. These amendments to IAS 1
override and incorporate the previous amendments, Classification of Liabilities as Current or Non-current, issued in January
2020, which clarified that liabilities are classified as either current or non-current, depending on the rights that exist at the end
of the reporting period. Liabilities should be classified as non-current if a company has a substantive right to defer settlement
for at least 12 months at the end of the reporting period. The amendments are effective January 1, 2024, with early adoption
permitted. Retrospective application is required on adoption. We do not expect these amendments to have a material effect on
our financial statements.

13
3. Material Accounting Policy Information

The material accounting policies applied in the preparation of these consolidated financial statements are set out below. These
policies have been consistently applied to all periods presented, unless otherwise stated.

Basis of Presentation

Our consolidated financial statements include the accounts of Teck and all of its subsidiaries. Our significant operating
subsidiaries include Teck Metals Ltd. (TML), Teck Alaska Incorporated (TAK), Teck Highland Valley Copper Partnership
(Highland Valley Copper), Teck Coal Partnership (Teck Coal), Compañía Minera Teck Quebrada Blanca S.A. (QBSA or
Quebrada Blanca) and Compañía Minera Teck Carmen de Andacollo (Carmen de Andacollo).

All subsidiaries are entities that we control, either directly or indirectly. Certain of our business activities are conducted through
joint arrangements. Our interests in joint operations include Galore Creek Partnership (Galore Creek, 50% share) in Canada;
Antamina (22.5% share) in Peru; Minas de San Nicolás, S.A.P.I. de C.V. (San Nicolás, 91% share) in Mexico; and NewRange
Copper Nickel LLC (NewRange, 50% share) in the U.S. We account for our interests in these joint operations by recording our
share of the respective assets, liabilities, revenue, expenses and cash flows. We also have an interest in a joint venture,
NuevaUnión SpA (NuevaUnión, 50% share) in Chile that we account for using the equity method (Note 16).

During the year ended December 31, 2022, we determined that Fort Hills met the criteria to be considered as assets held for
sale. We therefore classified the assets of Fort Hills as current assets held for sale, the liabilities of Fort Hills as current
liabilities associated with assets held for sale and re-presented the operating results of Fort Hills as a single line item of loss
from discontinued operations on the statement of income (Note 5). The transaction closed on February 2, 2023.

All dollar amounts are presented in Canadian dollars unless otherwise specified.

Interests in Joint Operations and Joint Ventures

We are party to joint arrangements where we have joint control, which is when decisions about the activities that significantly
affect the returns of the investee require unanimous consent of the parties sharing control. We have joint arrangements
structured through separate vehicles and classified as joint operations, where the parties have rights to the assets and obligations
for the liabilities relating to the arrangement. In these instances, we assessed the legal form of the separate vehicle, the terms of
the contractual arrangement, and relevant other facts and circumstances. Regarding other facts and circumstances, we have
determined that an arrangement is a joint operation if the arrangement is primarily designed for the provision of output to the
parties, and that the liabilities incurred by the arrangement are, in substance, satisfied by the cash flows received from the
parties through their purchases of the output. Joint operations are accounted for by recording our share of the respective assets,
liabilities, revenue, expenses and cash flows.

We also have a joint arrangement structured through a separate vehicle that is classified as a joint venture. Joint ventures are
accounted for as investments using the equity method.

Foreign Currency Translation

The functional currency of Teck, the parent entity, is the Canadian dollar, which is also the presentation currency of our
consolidated financial statements.

Foreign operations are translated from their functional currencies, generally the U.S. dollar, into Canadian dollars on
consolidation. Items in the statements of income and other comprehensive income (loss) are translated using weighted average
exchange rates that reasonably approximate the exchange rate at the transaction date. Items on the balance sheet are translated
at the closing spot exchange rate. Exchange differences on the translation of the net assets of entities with functional currencies
other than the Canadian dollar, and any offsetting exchange differences on debt used to hedge those assets, are recognized in a
separate component of equity through other comprehensive income (loss).

14
3. Material Accounting Policy Information (continued)

Revenue

Our revenue consists of sales of copper, zinc and lead concentrates, steelmaking coal, refined zinc, lead and silver. We also sell
other by-products, including molybdenum concentrates, various refined specialty metals, chemicals and fertilizers. Our
performance obligations relate primarily to the delivery of these products to our customers, with each separate shipment
representing a separate performance obligation.

Revenue, including revenue from the sale of by-products, is recognized at the point in time when the customer obtains control
of the product. Control is achieved when a product is delivered to the customer, we have a present right to payment for the
product, significant risks and rewards of ownership have transferred to the customer according to contract terms and there is no
unfulfilled obligation that could affect the customer’s acceptance of the product.

Base metal concentrates

For copper, zinc and lead concentrates, control of the product generally transfers to the customer when an individual shipment
parcel is loaded onto a carrier accepted by the customer. A minority of zinc concentrate sales are made on consignment. For
consignment transactions, control of the product transfers to the customer and revenue is recognized at the time the product is
consumed in the customer’s process.

The majority of our metal concentrates are sold under pricing arrangements where final prices are determined by quoted market
prices in a period subsequent to the date of sale. For these sales, revenue is recorded based on the estimated consideration to be
received at the date of sale, with reference to relevant commodity market prices. Adjustments are made to settlement
receivables in subsequent periods based on movements in quoted commodity prices up to the date of final pricing. This
adjustment mechanism is based on the market price of the commodity and, accordingly, the changes in value of the settlement
receivables are not considered to be revenue from contracts with customers. The changes in fair value of settlement receivables
related to price changes are recorded in other operating income (expense).

Metal concentrate sales are billed based on provisional weights and assays upon the passage of control to the customer. The
first provisional invoice is billed to the customer at the time of transfer of control. As final prices, weights and assays are
received, additional invoices are issued and cash is collected. In general, consideration is promptly collected from customers;
however, the payment terms are customer-specific and subject to change based on market conditions and other factors. We
generally retain title to these products until we receive the first contracted payment, which is typically received shortly after
loading or shortly after arrival at the destination port, solely to manage the credit risk of the amounts due to us. This retention of
title does not preclude the customer from obtaining control of the product.

Steelmaking coal

For steelmaking coal, control of the product generally transfers to the customer when an individual shipment parcel is loaded
onto a carrier accepted by or directly contracted by the customer. For a majority of steelmaking coal sales, we are not
responsible for the provision of shipping or product insurance after the transfer of control. For certain sales, we arrange
shipping on behalf of our customers and are the agent to these shipping transactions.

Steelmaking coal is sold under spot or average pricing contracts. For spot price contracts, pricing is final when revenue is
recognized. For average pricing contracts, the final pricing is determined based on quoted steelmaking coal price assessments
over a specific period. Control of the goods may transfer and revenue may be recognized before, during or subsequent to the
period in which final average pricing is determined. For all steelmaking coal sales under average pricing contracts where
pricing is not finalized when revenue is recognized, revenue is recorded based on estimated consideration to be received at the
date of sale with reference to steelmaking coal price assessments. For average pricing contracts, adjustments are made to
settlement receivables in subsequent periods based on published price assessments up to the date of final pricing. This
adjustment mechanism is based on the market price of the commodity and, accordingly, the changes in value of the settlement
receivables are not considered to be revenue from contracts with customers. The changes in fair value of settlement receivables
are recorded in other operating income (expense).

15
3. Material Accounting Policy Information (continued)

Steelmaking coal sales are billed based on final quality and quantity measures upon the passage of control to the customer. If
pricing is not finalized when control of the product is transferred, a subsequent invoice is issued when pricing is finalized. The
payment terms generally require prompt collection from customers; however, payment terms are customer-specific and subject
to change based on market conditions and other factors. We generally retain title to these products until we receive the first
contracted payment, which is typically received shortly after loading, solely to manage the credit risk of the amounts due to us.
This retention of title does not preclude the customer from obtaining control of the product.

Refined metals

For sales of refined metals, control of the product transfers to the customer when the product is loaded onto a carrier accepted
by the customer. For these products, loading generally coincides with the transfer of title.

Our refined metals are sold under spot or average pricing contracts. For spot sales contracts, pricing is final when revenue is
recognized. For refined metal sales contracts where pricing is not finalized when revenue is recognized, revenue is recorded
based on the estimated consideration to be received at the date of sale with reference to commodity market prices. Adjustments
are made to settlement receivables in subsequent periods based on movements in quoted commodity prices up to the date of
final pricing. This adjustment mechanism is based on the market price of the commodity and, accordingly, the changes in value
of the settlement receivables are not considered to be revenue from contracts with customers. The changes in fair value of
settlement receivables are recorded in other operating income (expense).

We sell a portion of our refined metals on commercial terms where we are responsible for providing freight services after the
date at which control of the product passes to the customer. We are the principal to this freight performance obligation.

Refined metal sales are billed based on final specification measures upon the passage of control to the customer. If pricing is
not finalized when control of the product is transferred, a subsequent invoice is issued when pricing is finalized.

In general, consideration is promptly collected from customers; however, the payment terms are customer-specific and subject
to change based on market conditions and other factors.

Financial Instruments

Cash and cash equivalents

Cash and cash equivalents include cash on account, demand deposits and money market investments with maturities from the
date of acquisition of three months or less, which are readily convertible to known amounts of cash and are subject to
insignificant changes in value. Cash is classified as a financial asset that is subsequently measured at amortized cost. Cash
equivalents are classified as a financial asset that is subsequently measured at amortized cost, except for money market
investments, which are classified as subsequently measured at fair value through profit (loss).

Trade receivables

Trade receivables relate to amounts owing from sales under our spot pricing contracts for steelmaking coal, refined metals,
blended bitumen, chemicals and fertilizers. These receivables are non-interest bearing and are recognized at face amount,
except when fair value is materially different, and are subsequently measured at amortized cost. Trade receivables recorded are
net of lifetime expected credit losses.

Settlement receivables

Settlement receivables arise from base metal concentrate sales contracts and average pricing steelmaking coal contracts, where
amounts receivable vary based on underlying commodity prices or steelmaking coal price assessments. Settlement receivables
are classified as fair value through profit (loss) and are recorded at fair value at each reporting period based on quoted
commodity prices or published price assessments up to the date of final pricing. The changes in fair value are recorded in other
operating income (expense).

16
3. Material Accounting Policy Information (continued)

Investments in marketable equity securities

All of our investments in marketable equity securities are classified, at our election, as subsequently measured at fair value
through other comprehensive income (loss). Investment transactions are recognized on the trade date, with transaction costs
included in the underlying balance. Fair values are determined by reference to quoted market prices at the balance sheet date.

When investments in marketable equity securities subsequently measured at fair value through other comprehensive income
(loss) are disposed of, the cumulative gains and losses recognized in other comprehensive income (loss) are not recycled to
profit (loss) and remain within equity. Dividends are recognized in profit (loss). These investments are not assessed for
impairment.

Investments in debt securities

Investments in debt securities are classified as subsequently measured at fair value through other comprehensive income (loss)
and recorded at fair value. Investment transactions are recognized on the trade date, with transaction costs included in the
underlying balance. Fair values are determined by reference to quoted market prices at the balance sheet date.

Unrealized gains and losses on debt securities are recognized in other comprehensive income (loss) until investments are
disposed of and the cumulative gains and losses recognized in other comprehensive income (loss) are reclassified from equity to
profit (loss) at that time. Loss allowances and interest income are recognized in profit (loss).

Trade payables

Trade payables are non-interest bearing if paid when due and are recognized at face amount, except when fair value is
materially different. Trade payables are subsequently measured at amortized cost.

Debt

Debt is initially recorded at fair value, net of transaction costs. Debt is subsequently measured at amortized cost, calculated
using the effective interest rate method.

Derivative instruments

Derivative instruments, including embedded derivatives in executory contracts or financial liability contracts, are classified as at
fair value through profit (loss) and, accordingly, are recorded on the balance sheet at fair value. Unrealized gains and losses on
derivatives not designated in a hedging relationship are recorded as part of other operating income (expense) or non-operating
income (expense) in profit (loss) depending on the nature of the derivative. Fair values for derivative instruments are
determined using inputs based on market conditions existing at the balance sheet date or settlement date of the derivative.
Derivatives embedded in non-derivative contracts are recognized separately unless they are closely related to the host contract.

Expected credit losses

For trade receivables, we apply the simplified approach to determining expected credit losses, which requires expected lifetime
losses to be recognized upon initial recognition of the receivables.

Loss allowances on investments in debt securities are initially assessed based on the expected 12-month credit loss. At each
reporting date, we assess whether the credit risk for our debt securities has increased significantly since initial recognition. If the
credit risk has increased significantly since initial recognition, the loss allowance is adjusted to be based on the lifetime
expected credit losses.

Hedging

For hedges of net investments in foreign operations, any foreign exchange gains or losses on the hedging instrument relating to
the effective portion of the hedge are initially recorded in other comprehensive income (loss). Gains and losses are recognized
in profit (loss) on the ineffective portion of the hedge, or when there is a disposition or partial disposition of a foreign operation
being hedged.

17
3. Material Accounting Policy Information (continued)

Inventories

Finished products, work in process, raw materials and supplies inventories are valued at the lower of weighted average cost and
net realizable value. Work in process inventory includes inventory in the milling, smelting or refining process and stockpiled
ore at mining operations. Raw materials include concentrates for use at smelting and refining operations.

For work in process and finished product inventories, cost includes all direct costs incurred in production, including direct
labour and materials, freight, depreciation and amortization and directly attributable overhead costs. Production stripping costs
that are not capitalized are included in the cost of inventories as incurred. Depreciation and amortization of capitalized
production stripping costs are included in the cost of inventory. For supplies inventories, cost includes acquisition, freight and
other directly attributable costs.

When our operations are producing at reduced levels, fixed overhead costs are only allocated to inventory based on normal
production levels.

When inventories have been written down to net realizable value, we make a new assessment of net realizable value in each
subsequent period. If the circumstances that caused the write-down no longer exist, the remaining amount of the write-down on
inventory not yet sold is reversed.

We use both joint-product and by-product costing for work in process and finished product inventories. Joint-product costing is
applied to primary products where the profitability of the operations is dependent upon the production of these products. Joint-
product costing allocates total production costs based on the relative values of the products. By-product costing is used for
products that are not the primary products produced by the operation. The by-products are allocated only the incremental costs
of processes that are specific to the production of that product.

Property, Plant and Equipment

Land, buildings, plant and equipment

Land is recorded at cost and buildings, plant and equipment are recorded at cost less accumulated depreciation and impairment
losses. Cost includes the purchase price and the directly attributable costs to bring the assets to the location and condition
necessary for them to be capable of operating in the manner intended by management.

Depreciation of mobile equipment, buildings used for production and plant and processing equipment at our mining operations
is calculated on a units-of-production basis. Depreciation of buildings not used for production and of plant and equipment at our
smelting operations is calculated on a straight-line basis over the assets’ estimated useful lives. Where components of our assets
have different useful lives, depreciation is calculated on each component separately. Depreciation commences when an asset is
ready for its intended use. Estimates of remaining useful lives and residual values are reviewed annually.

The expected useful lives of assets depreciated on a straight-line basis are as follows:

• Buildings and equipment (not used for production) 1–50 years

• Plant and equipment (smelting operations) 2–30 years

Mineral properties and mine development costs

The cost of acquiring and developing mineral properties or property rights, including pre-production waste rock stripping costs
related to mine development and costs incurred during production to increase future output, are capitalized.

Waste rock stripping costs incurred in the production phase of a surface mine are recorded as capitalized production stripping
costs within property, plant and equipment when it is probable that the stripping activity will improve access to the orebody,
when the component of the orebody or pit to which access has been improved can be identified and when the costs relating to
the stripping activity can be measured reliably. When the actual waste-to-ore stripping ratio in a period is greater than the
expected life-of-component waste-to-ore stripping ratio for that component, the excess is recorded as capitalized production
stripping costs.

18
3. Material Accounting Policy Information (continued)

Once available for use, mineral properties and mine development costs are depreciated on a units-of-production basis over the
proven and probable reserves to which they relate. Since the stripping activity within a component of a mine improves access to
the reserves of the same component, capitalized production stripping costs incurred during the production phase of a mine are
depreciated on a units-of-production basis over the proven and probable reserves expected to be mined from the same
component.

Exploration and evaluation costs

Property acquisition costs are capitalized. Other exploration and evaluation costs are capitalized if they relate to specific
properties for which resources, as defined under National Instrument 43-101, Standards of Disclosure for Mineral Projects,
exist or are near a specific property with a defined resource and it is expected that the expenditure can be recovered by future
exploitation or sale. All other costs are recorded to profit (loss) in the year in which they are incurred. Capitalized exploration
and evaluation costs are considered to be tangible assets. These assets are not depreciated, as they are not currently available for
use. When proven and probable reserves are determined and development is approved, capitalized exploration and evaluation
costs are reclassified to mineral properties within property, plant and equipment.

Construction in progress

Assets in the course of construction are capitalized as construction in progress. On completion, the cost of construction is
transferred to the appropriate category of property, plant and equipment and depreciation commences when the asset is
available for its intended use.

Repairs and maintenance

Repairs and maintenance costs, including shutdown maintenance costs, are recorded to expense as incurred, except when these
repairs significantly extend the life of an asset or result in a significant operating improvement. In these instances, the portion of
these repairs relating to the betterment is capitalized as part of plant and equipment.

Borrowing costs

Borrowing costs are capitalized at a rate based on our weighted average cost of borrowing or at the rate on the project-specific
debt, as applicable. Borrowing costs are capitalized with the asset they relate to within mineral properties, land, buildings, plant
and equipment, or construction in progress and are amortized over the useful life of the related asset. All other borrowing costs
are expensed as incurred.

Capitalization of borrowing costs begins when there are borrowings, when expenditures on the construction of the asset are
incurred and when activities are undertaken to prepare the asset for its intended use. We stop capitalization of borrowing costs
when substantially all of the activities necessary to prepare the qualifying asset for its intended use are complete. In situations
where we need to suspend the construction of a qualifying asset for an extended period of time, we will suspend capitalization
of borrowing costs, and restart capitalization when construction activities resume.

Impairment and impairment reversal of non-current assets

The carrying amounts of assets included in property, plant and equipment and intangible assets are reviewed for impairment
whenever facts and circumstances indicate that the recoverable amounts may be less than the carrying amounts. If there are
indicators of impairment, the recoverable amount of the asset is estimated in order to determine the extent of any impairment.
Where the asset does not generate cash flows that are independent from other assets, the recoverable amount of the cash-
generating unit (CGU) to which the asset belongs is determined. The recoverable amount of an asset or CGU is determined as
the higher of its fair value less costs of disposal (FVLCD) and its value in use. An impairment loss exists if the asset’s or
CGU’s carrying amount exceeds the estimated recoverable amount and is recorded as an expense immediately.

Fair value is the price that would be received from selling an asset in an orderly transaction between market participants at the
measurement date. Costs of disposal are incremental costs directly attributable to the disposal of an asset. For mining assets,
when a binding sale agreement is not readily available, FVLCD is usually estimated using a discounted cash flow approach,
unless comparable market transactions on which to estimate fair value are available. Estimated future cash flows are calculated
using estimated future commodity prices, reserves and resources, and operating and capital costs. All inputs used are those that
an independent market participant would consider appropriate.

19
3. Material Accounting Policy Information (continued)

Value in use is determined as the present value of the future cash flows expected to be derived from continuing use of an asset
or CGU in its present form. These estimated future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money and the risks specific to the asset or CGU for which
estimates of future cash flows have not been adjusted. A value in use calculation uses a pre-tax discount rate and a FVLCD
calculation uses a post-tax discount rate.

Indicators of impairment for exploration and evaluation assets are assessed on a project-by-project basis or as part of the mining
operation to which they relate.

Tangible or intangible assets that have been impaired in prior periods are tested for possible reversal of impairment whenever
events or significant changes in circumstances indicate that the impairment may have reversed. Indicators of a potential reversal
of an impairment loss mainly mirror the indicators present when the impairment was originally recorded. If the impairment has
reversed, the carrying amount of the asset is increased to its recoverable amount, but not beyond the carrying amount that would
have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior periods. A reversal of
an impairment loss is recognized in profit (loss) immediately.

Intangible Assets

Intangible assets are mainly internally generated and primarily relate to our innovation and technology initiatives. We capitalize
development costs for internally generated intangible assets when the process is clearly defined, the technical feasibility and
usefulness of the asset have been established, we are committed and have the resources to complete the project, and the costs
can be reliably measured.

Intangible assets are recorded at cost less accumulated amortization and impairment losses. Cost includes directly attributable
costs necessary to create, produce and prepare the asset to be capable of operating in the manner intended by management.
Costs associated with maintaining our innovation and technology initiatives, once implemented, are recognized as an expense
as incurred.

Finite life intangible assets are amortized on a straight-line basis over their useful lives. Amortization commences when an asset
is ready for its intended use. Estimates of remaining useful lives are reviewed annually. Changes in estimates are accounted for
prospectively. The expected useful lives of our finite life intangible assets are between 3 and 20 years.

Research and Innovation

Costs incurred during the research phase are expensed as part of research and innovation. Costs associated with the
development of our innovation-driven transformation program, where the process is not clearly defined and technical feasibility
is not established, are also expensed as incurred.

Goodwill

We allocate goodwill arising from business combinations to each CGU or group of CGUs that are expected to receive the
benefits from the business combination. The carrying amount of the CGU or group of CGUs to which goodwill has been
allocated is tested annually for impairment or when there is an indication that the goodwill may be impaired. An impairment
loss exists if the CGU’s or group of CGUs’ carrying amount, including goodwill, exceeds its recoverable amount. Any
impairment is recognized as an expense immediately. Should there be a recovery in the value of a CGU or group of CGUs, any
impairment of goodwill previously recorded is not subsequently reversed.

20
3. Material Accounting Policy Information (continued)

Leases

Contracts are assessed to determine if the contracts are, or contain, a lease. As a lessee, we recognize a right-of-use asset, which
is included in property, plant and equipment, and a lease liability at the commencement date of a lease. The commencement
date is the date when the lessor makes the underlying asset available for use by us. The right-of-use asset is initially measured at
cost, which is comprised of the initial amount of the lease liability adjusted for any lease payments made at or before the
commencement date, plus any decommissioning and restoration costs.

The right-of-use asset is subsequently depreciated from the commencement date to the earlier of the end of the lease term, or
the end of the useful life of the asset. In addition, the right-of-use asset may be reduced due to impairment losses, if any, and
adjusted for certain remeasurements of the lease liability.

A lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,
discounted by our incremental borrowing rate, as the rate implicit in the lease cannot be readily determined.

Our lease liabilities are remeasured when there is a change in future lease payments arising from a purchase, extension or
termination option. Variable lease payments not included in the initial measurement of the lease liability are charged directly to
profit (loss).

We have elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12
months or less and leases of low-value assets. The lease payments associated with these leases are recorded directly to profit
(loss) on a straight-line basis over the lease term.

Income Taxes

Taxes, comprising both income taxes and resource taxes, are accounted for as income taxes under IAS 12, Income Taxes.
Income taxes attributable to assets held for sale at December 31, 2022 are included as part of loss from discontinued operations.

Current taxes receivable or payable are based on estimated taxable income for the current year at the statutory tax rates enacted,
or substantively enacted, less amounts paid or received on account.

Deferred tax assets and liabilities are recognized based on temporary differences and are calculated using enacted or
substantively enacted tax rates for the periods in which the differences are expected to reverse. The effect of changes in tax
legislation, including changes in tax rates, is recognized in the period of substantive enactment.

Deferred tax assets are recognized only to the extent where it is probable that the future taxable profits or capital gains of the
relevant entity or group of entities in a particular jurisdiction will be available, against which the assets can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences arising on investments in subsidiaries, joint ventures
and associates. However, we do not recognize such deferred tax liabilities where the timing of the reversal of the temporary
differences can be controlled without affecting our operations or business and where it is probable that the temporary
differences will not reverse in the foreseeable future.

Deferred tax assets and liabilities are not recognized if the temporary differences arise from the initial recognition of goodwill
or an asset or liability in a transaction, other than in a business combination, which will affect neither accounting profit nor
taxable profit. However, we recognize deferred tax on transactions that, on initial recognition, give rise to equal amounts of
taxable and deductible temporary differences.

Deferred tax assets and liabilities related to assets held for sale are included as part of assets held for sale and liabilities
associated with assets held for sale, as applicable.

We are subject to assessments by various taxation authorities, who may interpret tax legislation differently than we do. The
final amount of taxes to be paid depends on a number of factors, including the outcomes of audits, appeals or negotiated
settlements. We account for such differences based on our best estimate of the probable outcome of these matters.

21
3. Material Accounting Policy Information (continued)

Employee Benefits

Defined benefit pension plans

Defined benefit pension plan obligations are based on actuarial determinations. The projected unit credit method, which sees
each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up
the final obligation, is used to determine the defined benefit obligations, the related current service costs and, where applicable,
the past service costs. Actuarial assumptions used in the determination of defined benefit pension plan assets and liabilities are
based upon our best estimates, including discount rates, salary escalation, expected healthcare costs and retirement dates of
employees.

Actuarial gains and losses can arise from differences between expected and actual outcomes or changes in actuarial
assumptions. Actuarial gains and losses, changes in the effect of the asset ceiling and return on plan assets are collectively
referred to as remeasurements of retirement benefit plans and are recognized immediately through other comprehensive income
(loss) and directly into retained earnings. Measurement of our net defined benefit asset is limited to the lower of the surplus of
assets less liabilities in the defined benefit plan and the asset ceiling less liabilities in the defined benefit plan. The asset ceiling
is the present value of the expected economic benefit available to us in the form of refunds from the plan or reductions in future
contributions to the plan.

The interest component of the defined benefit cost is recorded as part of finance expense. Depending on the classification of the
salary of plan members, current service costs and past service costs are included in cost of sales, general and administration
expenses, exploration expenses or research and innovation expenses.

Defined contribution pension plans

The cost of providing benefits through defined contribution plans is recorded to profit (loss) as the obligation to contribute is
incurred.

Non-pension post-retirement plans

We provide healthcare benefits for certain employees when they retire. Non-pension post-retirement plan obligations are based
on actuarial determinations. The cost of these benefits is expensed over the period in which the employees render services. We
fund these non-pension post-retirement benefits as they become due.

Share-Based Payments

The fair value method of accounting is used for share-based payment transactions. Under this method, the cost of share options
and other equity-settled share-based payment arrangements is recorded based on the estimated fair value at the grant date,
including an estimate of the forfeiture rate, and recorded to other operating income (expense) over the vesting period.

Share-based payment expense relating to cash-settled awards, including deferred, restricted, performance and performance
deferred share units, is accrued over the vesting period of the units based on the quoted market value of Class B subordinate
voting shares. Performance share units (PSUs) and performance deferred share units (PDSUs) vest subject to a performance
metric ranging from 0% to 200% based on corporate performance against grant-specific performance criteria. As defined in our
grant agreements, the performance metric for PSUs and PDSUs issued prior to 2022 was based on both our relative total
shareholder return in comparison to a group of specified companies and by the ratio of the change in our earnings before
interest, taxes, depreciation and amortization (EBITDA) over the vesting period of the share unit to the change in a specified
weighted commodity price index. The performance metrics for PSUs and PDSUs issued in 2022 and 2023 are based on a
balanced scorecard, with 20% related to each of relative shareholder return as compared to our compensation peer group,
change in five-year average return on capital employed for operating assets, operational production and cost performance as
against the annual budget, strategic execution, and performance measured against a sustainability progress index. As these
awards will be settled in cash, the expense and liability are adjusted each reporting period for changes in the underlying share
price as well as changes to the above-noted vesting factors, as applicable.

22
3. Material Accounting Policy Information (continued)

Decommissioning and Restoration Provisions

Future obligations to retire an asset and to restore a site, including dismantling, remediation and ongoing treatment and
monitoring of the site related to normal operations, are initially recognized and recorded as a provision based on estimated
future cash flows discounted at a credit-adjusted risk-free rate. These decommissioning and restoration provisions are adjusted
at each reporting period for changes to factors including the expected amount of cash flows required to discharge the liability,
the timing of such cash flows and the discount rate.

The provisions are also accreted to full value over time through periodic charges to profit (loss). This unwinding of the discount
is recorded to finance expense in the statement of income (loss).

The amount of the decommissioning and restoration provisions initially recognized is capitalized as part of the related asset’s
carrying value. The method of depreciation follows that of the underlying asset. For a closed site or where the asset that
generated a decommissioning and restoration provision no longer exists, there is no longer any future benefit related to the costs
and, as such, the amounts are expensed through other operating income (expense). For operating sites, a revision in estimates or
a new disturbance will result in an adjustment to the provision with an offsetting adjustment to the capitalized asset retirement
cost.

During the operating life of an asset, events such as infractions of environmental laws or regulations may occur. These events
are not related to the normal operation of the asset. The costs associated with these provisions are accrued and recorded through
other operating income (expense) in the period in which the event giving rise to the liability occurs. Changes in the estimated
liability resulting in an adjustment to these provisions are also recorded to other operating income (expense) in the period in
which the estimate changes.

Earnings (Loss) per Share

Earnings (loss) per share is calculated based on the weighted average number of shares outstanding during the year. For diluted
earnings per share, dilution is calculated based upon the net number of common shares issued, should “in-the-money” options
and warrants be exercised and the proceeds be used to repurchase common shares at the average market price in the year. In
periods of loss, the loss per share and diluted loss per share are the same, since the effect of the issuance of additional common
shares would be anti-dilutive.

23
4. Areas of Judgment and Estimation Uncertainty

In preparing our consolidated financial statements, we make judgments in applying our accounting policies. The judgments that
have the most significant effect on the amounts recognized in our financial statements are outlined below. In addition, we make
assumptions about the future in deriving estimates used in preparing our consolidated financial statements. We have outlined
information below about assumptions and other sources of estimation uncertainty as at December 31, 2023 that have a risk of
resulting in a material adjustment to the carrying amounts of assets and liabilities within the next year.

a) Areas of Judgment

Assessment of Impairment and Impairment Reversal Indicators

Judgment is required in assessing whether certain factors would be considered an indicator of impairment or impairment
reversal. We consider both internal and external information to determine whether there is an indicator of impairment or
impairment reversal present and, accordingly, whether impairment testing is required. The information we consider in assessing
whether there is an indicator of impairment or impairment reversal includes, but is not limited to, market transactions for similar
assets, commodity prices, treatment charges, zinc premiums, discount rates, foreign exchange rates, our market capitalization,
reserves and resources, mine plans, operating plans and operating results.

As a result of the strengthening of the Canadian dollar against the U.S. dollar affecting the Canadian dollar equivalent of our
expected consideration to be received in the sale of the steelmaking coal business transactions (Note 6(a)), we performed an
impairment test for our steelmaking coal group of CGUs (Note 9(a)) at December 31, 2023.

In the fourth quarter of 2022, as a result of increased costs and operating challenges at our Trail CGU, we performed an
impairment test for our Trail CGU (Note 9(b) and (d)).

Property, Plant and Equipment – Determination of Available for Use Date

Judgment is required in determining the date that property, plant and equipment is available for use. An asset is available for
use when it is in the location and condition necessary to operate in the manner intended by management.

QB2 consists of property, plant and equipment that become available for use at different dates. When assessing when these
assets are available for use, we consider several factors, the most significant of which are the status of asset commissioning and
whether the assets are capable of operating near design capacity to ensure a reliable and consistent throughput rate to produce
the expected quantity of outputs. The majority of the assets related to QB2 became available for use in December of 2023.

Joint Arrangements

We are a party to a number of arrangements over which we do not have control. Judgment is required in determining whether
joint control over these arrangements exists and, if so, which parties have joint control and whether each arrangement is a joint
venture or a joint operation. In assessing whether we have joint control, we analyze the activities of each arrangement and
determine which activities most significantly affect the returns of the arrangement over its life. These activities are determined
to be the relevant activities of the arrangement. If unanimous consent is required over the decisions about the relevant activities,
the parties whose consent is required would have joint control over the arrangement. The judgments around which activities are
considered the relevant activities of the arrangement are subject to analysis by each of the parties to the arrangement and may
be interpreted differently. When performing this assessment, we generally consider decisions about activities such as managing
the asset while it is being designed, developed and constructed, during its operating life and during the closure period. We may
also consider other activities, including the approval of budgets, expansion and disposition of assets, financing, significant
operating and capital expenditures, appointment of key management personnel, representation on the board of directors and
other items. When circumstances or contractual terms change, we reassess the control group and the relevant activities of the
arrangement.

24
4. Areas of Judgment and Estimation Uncertainty (continued)

If we have joint control over the arrangement, an assessment of whether the arrangement is a joint venture or a joint operation is
required. This assessment is based on whether we have rights to the assets, and obligations for the liabilities, relating to the
arrangement or whether we have rights to the net assets of the arrangement. In making this determination, we review the legal
form of the arrangement, the terms of the contractual arrangement and other facts and circumstances. In a situation where the
legal form and the terms of the contractual arrangement do not give us rights to the assets and obligations for the liabilities, an
assessment of other facts and circumstances is required, including whether the activities of the arrangement are primarily
designed for the provision of output to the parties and whether the parties are substantially the only source of cash flows
contributing to the arrangement. The consideration of other facts and circumstances may result in the conclusion that a joint
arrangement is a joint operation. This conclusion requires judgment and is specific to each arrangement. Other facts and
circumstances have led us to conclude that Antamina, NewRange and San Nicolás are joint operations for the purposes of our
consolidated financial statements. The other facts and circumstances considered for these arrangements include the provision of
output to the parties of the joint arrangements and the funding obligations. For Antamina, NewRange and San Nicolás, we take
our share of the output from the assets directly over the life of the arrangement. We have concluded that this gives us direct
rights to the assets and obligations for the liabilities of these arrangements proportionate to our ownership interests.

Streaming Transactions

When we enter into a long-term streaming arrangement linked to production at specific operations, judgment is required in
assessing the appropriate accounting treatment for the transaction on the closing date and in future periods. We consider the
specific terms of each arrangement to determine whether we have disposed of an interest in the reserves and resources of the
respective operation or executed some other form of arrangement. This assessment considers what the counterparty is entitled to
and the associated risks and rewards attributable to them over the life of the operation. These include the contractual terms
related to the total production over the life of the arrangement as compared to the expected production over the life of the mine,
the percentage being sold, the percentage of payable metals produced, the commodity price referred to in the ongoing payment
and any guarantee relating to the upfront payment if production ceases.

For our silver and gold streaming arrangements at Antamina and Carmen de Andacollo, respectively, there is no guarantee
associated with the upfront payment. We have concluded that control of the rights to the silver and gold mineral interests were
transferred to the buyers when the contracts came into effect. Therefore, we consider these arrangements a disposition of a
mineral interest.

Based on our judgment, control of the interest in the reserves and resources transferred to the buyer when the contracts were
executed. At that time, we recognized the amount of the gain related to the disposition of the reserves and resources, as we had
the right to payment, the customer was entitled to the commodities, the buyer had no recourse in requiring Teck to mine the
product, and the buyer had significant risks and rewards of ownership of the reserves and resources.

We recognize the amount of consideration related to refining, mining and delivery services as the work is performed.

Deferred Tax Assets and Liabilities

Judgment is required in assessing whether deferred tax assets and certain deferred tax liabilities are recognized on the balance
sheet and what tax rate is expected to be applied in the year when the related temporary differences reverse. We also evaluate
the recoverability of deferred tax assets based on an assessment of our ability to use the underlying future tax deductions before
they expire against future taxable profits or capital gains. Deferred tax liabilities arising from temporary differences on
investments in subsidiaries, joint ventures and associates are recognized unless the reversal of the temporary differences is not
expected to occur in the foreseeable future and can be controlled. Judgment is also required on the application of income tax
legislation. These judgments are subject to risk and uncertainty and could result in an adjustment to the deferred tax provision
and a corresponding credit or charge to profit (loss).

25
4. Areas of Judgment and Estimation Uncertainty (continued)

Assets Held for Sale

Judgment is required in assessing whether certain assets are considered as held for sale as at December 31, 2023. For non-
current assets and disposal groups to be considered as held for sale, the asset or disposal group must be available for immediate
disposal, by sale or otherwise, in its present condition subject only to terms that are usual and customary for sales of such assets
or disposal groups, and its sale must be highly probable. Exercising judgment includes considering the likelihood of obtaining
requisite regulatory, stakeholder and political approvals.

In the fourth quarter of 2023, we announced our agreement to sell our interest in our steelmaking coal business, referred to as
Elk Valley Resources (EVR), through a sale of a majority stake to Glencore plc (Glencore) and a sale of minority stakes to
Nippon Steel Corporation (NSC) and POSCO. The NSC and POSCO portions of the transaction closed on January 3, 2024
(Note 6(a)). Closing of the sale of the majority interest in EVR to Glencore remains subject to receipt of competition approvals
in several jurisdictions and approval under the Investment Canada Act. The timing and outcome of these processes is not known
with sufficient certainty and as such, we are not in a position to conclude that receipt of the required approvals, and resulting
closing of the transaction, is highly probable. Therefore, we have determined that our steelmaking coal business did not meet
the criteria to be classified as held for sale at December 31, 2023.

As at December 31, 2022, we determined that the Fort Hills disposal group; the Quintette disposal group; the Mesaba property,
plant and equipment assets; and the San Nicolás property, plant and equipment assets were considered as held for sale (Note 5).

b) Sources of Estimation Uncertainty

Impairment Testing

For the annual goodwill impairment testing for our steelmaking coal group of CGUs, we estimated its recoverable amount
based on consideration expected to be received from the sale transactions (Note 6(a)). This includes the present value of the
agreed-upon cash proceeds from Glencore and NSC, plus the expected discounted cash flows from the steelmaking coal
business until closing of the Glencore transaction. The most significant assumption is the U.S. dollar to Canadian dollar foreign
exchange rate, which is applied to both the cash receipts and the cash flows until closing. Other significant assumptions include
the steelmaking coal price, sales volumes and operating costs.

For other impairment testing required, discounted cash flow models are used to determine the recoverable amount of respective
CGUs. These models are prepared internally or with assistance from third-party advisors when required. When relevant market
transactions for comparable assets are available, these are considered in determining the recoverable amount of assets.

Significant assumptions used in preparing the discounted cash flow model for our Quebrada Blanca CGU goodwill impairment
test include commodity prices, reserves and resources, sales volumes, operating costs, capital expenditures, discount rate and
the fair value per pound of copper equivalent used in the determination of the in situ value.

Significant assumptions used in preparing the discounted cash flow model for our Trail CGU impairment test in 2022 include
zinc prices, smelter production, operating costs, capital expenditures, treatment charges, zinc premiums, discount rate and
foreign exchange rates.

Note 9(d) outlines the significant inputs used when performing goodwill and other asset impairment testing. These inputs are
based on management’s best estimates of what an independent market participant would consider appropriate. Changes in these
inputs may alter the results of impairment testing, the amount of the impairment charges or reversals recorded in the statement
of income (loss) and the resulting carrying values of assets.

26
4. Areas of Judgment and Estimation Uncertainty (continued)

Estimated Recoverable Reserves and Resources

Mineral reserve and resource estimates are based on various assumptions relating to operating matters as set forth in National
Instrument 43-101, Standards of Disclosure for Mineral Projects. Assumptions used include production costs, mining and
processing recoveries, cut-off grades, sales volumes, long-term commodity prices, exchange rates, inflation rates, tax and
royalty rates and capital costs. Cost estimates are based on prefeasibility or feasibility study estimates or operating history.
Estimates are prepared by or under the supervision of appropriately qualified persons, but will be affected by forecasted
commodity prices, inflation rates, exchange rates, capital and production costs and recoveries, among other factors. Estimated
recoverable reserves and resources are used in performing impairment testing, to determine the depreciation of property, plant
and equipment at operating mine sites, in accounting for capitalized production stripping costs and also in forecasting the
timing of settlement of decommissioning and restoration costs. Changes in reserve and resource estimates are most significant
to estimating the recoverable amount in impairment tests.

Decommissioning and Restoration Provisions

Decommissioning and restoration provisions (DRPs) are based on future cost estimates using information available at the
balance sheet date that are developed by management’s experts (Note 25(a)). DRPs represent the present value of estimated
costs of future decommissioning and other site restoration activities, including costs associated with the management of water
and water quality in and around each closed site. DRPs are adjusted at each reporting period for changes to factors such as the
expected amount of cash flows required to discharge the liability, the timing of such cash flows and the credit-adjusted discount
rate. DRPs require significant estimates and assumptions, including the requirements of the relevant legal and regulatory
framework and the timing, extent and costs of required decommissioning and restoration activities. Our estimates of the costs
associated with the management of water and water quality in and around each closed site include assumptions with respect to
the volume and location of water to be treated, the methods used to treat the water and the related water treatment costs. To the
extent the actual costs differ from these estimates, adjustments will be recorded and the statement of income (loss) may be
affected.

Provision for Income Taxes

We calculate current and deferred tax provisions for each of the jurisdictions in which we operate. Actual amounts of income
tax expense are not final until tax returns are filed and accepted by the relevant authorities. This occurs subsequent to the
issuance of our financial statements and the final determination of actual amounts may not be completed for a number of years.
Therefore, profit (loss) in subsequent periods will be affected by the amount that estimates differ from the final tax assessment.

Deferred Tax Assets and Liabilities

Assumptions about the generation of future taxable profits and repatriation of retained earnings depend on management’s
estimates of future production and sales volumes, commodity prices, reserves and resources, operating costs, decommissioning
and restoration costs, capital expenditures, dividends and other capital management transactions. These estimates could result in
an adjustment to the deferred tax provision and a corresponding adjustment to profit (loss).

27
5. Assets Held for Sale and Discontinued Operations

Discontinued Operations – Fort Hills Disposal Group

Fort Hills sale transaction

On February 2, 2023, we completed the sale of our 21.3% interest in Fort Hills and associated downstream assets to Suncor
Energy Inc. (Suncor) and TotalEnergies EP Canada Ltd. (TEPCA). TEPCA had exercised its right of first refusal to purchase its
proportionate share of our Fort Hills interest.

We have accounted for this transaction by recognizing:

• Aggregate cash proceeds of approximately $1 billion from Suncor and TEPCA

• A financial liability estimated at $269 million on closing. The current portion of $26 million was recorded as part of
trade accounts payable and other liabilities. The non-current portion of $243 million was recorded as part of provisions
and other liabilities. This financial liability is related to the remaining term of a downstream pipeline take-or-pay toll
commitment.

We recognized a loss of approximately $8 million, which was presented in loss from discontinued operations upon closing of
this transaction.

During 2022, we recorded a non-cash, pre-tax asset impairment of $1.2 billion (after-tax $961 million) as a result of the
announced sale of our interest in Fort Hills.

Results of discontinued operations of the Fort Hills disposal group:

(CAD$ in millions) 2023 2022

Revenue $ 143 $ 1,597
Cost of sales (161) (1,291)
Gross profit (loss) (18) 306
Asset impairment — (1,243)
Other operating income — 6
Loss from operations (18) (931)
Net finance expense (2) (25)
Loss on sale (8) —
Loss from discontinued operations before taxes (28) (956)
Recovery of income taxes 2 184
Loss from discontinued operations $ (26) $ (772)

Assets Held For Sale and Liabilities Associated with Assets Held for Sale – Fort Hills and Quintette Disposal Groups

Quintette sale transaction

On December 19, 2022, we announced an agreement with Conuma Resources Limited to sell all the assets and liabilities of the
Quintette steelmaking coal mine in northeastern British Columbia, which closed in 2023 (Note 6(c)). The Quintette disposal
group did not meet the definition of discontinued operations, but it did meet the requirements for it to be classified as held for
sale. As at December 31, 2022, we reclassified the assets and liabilities of Quintette as held for sale on the balance sheet.
Immediately before the initial classification of the Quintette assets and liabilities as held for sale, we assessed the fair value and
determined the fair value exceeded the carrying amount and accordingly, no impairment was recorded.

28
5. Assets Held for Sale and Discontinued Operations (continued)

Assets and liabilities of the Fort Hills disposal group and the Quintette disposal group held for sale as at December 31, 2022:

(CAD$ in millions) Fort Hills Quintette Total

Cash and cash equivalents $ 34 $ — $ 34
Inventories 53 — 53
Prepaid and other current assets 49 — 49
Financial and other assets 42 1 43
Property, plant and equipment 1,124 263 1,387
Total assets held for sale $ 1,302 $ 264 $ 1,566

Trade accounts payable and other liabilities $ 172 $ 5 $ 177

Current portion of lease liabilities 9 — 9
Current income taxes payable 46 — 46
Lease liabilities 200 — 200
Deferred income tax liabilities 18 50 68
Provisions and other liabilities 110 35 145
Total liabilities associated with assets held for sale $ 555 $ 90 $ 645

Non-Current Assets Held for Sale

Mesaba arrangement

On July 20, 2022 we announced an agreement with PolyMet Mining Corp. (PolyMet) to form a 50:50 joint arrangement to
advance PolyMet’s NorthMet project and Teck's Mesaba mineral deposit, which closed in 2023 (Note 6(d)). As at
December 31, 2022, we have reclassified property, plant and equipment and other assets of $14 million related to Mesaba to
non-current assets held for sale based on the conclusion that the mineral deposit would become part of a joint operation.
Immediately before the initial classification of the Mesaba assets as held for sale, we assessed the fair value and determined the
fair value exceeded the carrying amount and accordingly, no impairment was recorded.

San Nicolás arrangement

On September 16, 2022, we announced an agreement with Agnico Eagle Mines Limited to form a 50:50 joint arrangement to
advance the San Nicolás copper-zinc development project located in Zacatecas, Mexico, which closed in 2023 (Note 6(b)). As
at December 31, 2022, we have reclassified property, plant and equipment and other assets of $159 million related to San
Nicolás to non-current assets held for sale based on the conclusion that San Nicolás would become part of a joint operation.
Immediately before the initial classification of the San Nicolás assets as held for sale, we assessed the fair value and determined
the fair value exceeded the carrying amount and accordingly, no impairment was recorded.

29
6. Transactions

a) Sale of Steelmaking Coal Business

On November 13, 2023, we announced our agreement to sell our interest in our steelmaking coal business, EVR, through a sale
of a majority stake to Glencore and a sale of a minority stake to NSC and POSCO.

Glencore will acquire 77% of EVR for US$6.9 billion in cash, payable to us at closing of the Glencore transaction, subject to
customary closing adjustments. At closing of the Glencore transaction, Glencore will acquire from us any remaining receivable
that is payable to Teck by EVR.

Closing of the sale of the majority interest in EVR to Glencore remains subject to receipt of competition approvals in several
jurisdictions and approval under the Investment Canada Act (Note 4(a)).

NSC agreed to acquire a 20% interest in EVR in exchange for its current 2.5% interest in our Elkview Operations plus
US$1.3 billion in cash payable to Teck at closing of the NSC transaction. POSCO agreed to exchange its 2.5% interest in our
Elkview Operations and its 20% interest in the Greenhills Operations for a 3% interest in EVR. Teck will continue to operate
the steelmaking coal business and will retain substantially all cash flows from the steelmaking coal business until closing of the
Glencore transaction.

On January 3, 2024, the NSC and POSCO transactions were completed. These transactions will be accounted for as equity
transactions with non-controlling interests.

b) San Nicolás Arrangement

On April 6, 2023, we closed the transaction with Agnico Eagle Mines Limited (Agnico Eagle), forming a 50:50 joint
arrangement to advance the San Nicolás copper-zinc development project located in Zacatecas, Mexico. Agnico Eagle has
agreed to subscribe for a 50% interest in San Nicolás for US$580 million, to be contributed as study and development costs are
incurred by San Nicolás.

We concluded that San Nicolás is a joint operation where we share joint control with Agnico Eagle due to the key facts that
Teck and Agnico Eagle are obligated for their share of the outputs of the arrangement, and that Teck and Agnico Eagle are
required to fund their respective share of cash flows to the arrangement. We account for our interest in the joint operation by
recording our share of the respective assets, liabilities, revenue and expenses and cash flows. As contributions are made by
Agnico Eagle to San Nicolás, their incremental contributions will result in an increase in their share ownership and a reduction
in our share ownership until Agnico Eagle has achieved a 50% interest in San Nicolás. At December 31, 2023, we had 91% and
Agnico Eagle had 9% of share ownership.

We recognized a gain of $5 million in other operating income (expense) (Note 10), attributable to Agnico Eagle's initial
subscription and incremental contributions, totaling an aggregate of 9% of the project during 2023.

30
6. Transactions (continued)

c) Quintette Sale Transaction

On February 16, 2023, we closed the transaction with Conuma Resources Limited (Conuma) to sell all the assets and liabilities
of the Quintette steelmaking coal mine in northeastern British Columbia. In exchange for the sale of the Quintette steelmaking
coal mine, Conuma has agreed to pay in cash $120 million of staged payments over 36 months and an ongoing 25% net profits
interest royalty, first payable after Conuma recovers its initial construction investments in Quintette.

We accounted for this transaction by recognizing:

• Cash of $30 million related to a non-refundable deposit and cash received upon closing
• A financial receivable of $69 million recorded as part of financial and other assets, which reflects the fair value of the
staged payments at the close of the transaction
• A mineral interest royalty in the amount of $200 million recorded as part of property, plant and equipment that is a
non-cash investing transaction and reflects the fair value of the royalty interest on closing of the transaction. The key
facts and circumstances that resulted in concluding the royalty should be accounted for as a mineral interest were the
alignment of cash flow risks and returns with the existing mine plan and that payments will only occur during the life
of the mine.

We recognized a pre-tax gain of approximately $75 million ($50 million post-tax) in other operating income (expense) upon
closing of this transaction (Note 10).

d) Mesaba Arrangement

On February 15, 2023, we closed the transaction with PolyMet, forming a 50:50 joint arrangement to advance PolyMet's
NorthMet project and Teck's Mesaba mineral deposit. The joint arrangement is held and operated through a new entity named
NewRange Copper Nickel LLC.

We concluded that NewRange is a joint operation where we share joint control with PolyMet due to the key facts that Teck and
PolyMet are obligated for their share of the outputs of the arrangement, and that Teck and PolyMet are required to fund their
respective share of cash flows to the arrangement. We account for our interest in the joint operation by recording our share of
the respective assets, liabilities, revenue and expenses and cash flows.

We concluded that both parties contributed groups of assets that do not constitute businesses in the formation of the NewRange
joint operation and we recorded $232 million of property, plant and equipment and $16 million of intangibles in a non-cash
investing transaction. We have measured the fair value of the assets and liabilities contributed by PolyMet through reference to
market share price data, adjusted for transaction-specific factors, which is classified as a Level 3 measurement within the fair
value measurement hierarchy (Note 32).

We recognized a pre-tax gain of approximately $191 million ($142 million post-tax) in other operating income (expense) upon
closing of this transaction (Note 10). The gain was determined by calculating 50% of the fair value of the NorthMet project
contributed by PolyMet, less 50% of the carrying value of the Mesaba mineral deposit contributed by Teck.

31
7. Revenue

a) Total Revenue by Major Product Type and Business Unit

The following table shows our revenue disaggregated by major product type and by business unit. Our business units are
reported based on the primary products that they produce and are consistent with our reportable segments (Note 30) that have
revenue from contracts with customers. A business unit can have revenue from more than one commodity, as it can include an
operation that produces more than one product. Intra-segment revenue is accounted for at current market prices as if the sales
were made to arm’s-length parties and are eliminated on consolidation. As a result of the sale of our 21.3% interest in Fort Hills
and associated downstream assets, we no longer present the revenue related to Fort Hills, which was part of our energy business
unit, in the tables below. Revenue related to Fort Hills is disclosed as part of Note 5, Assets Held for Sale and Discontinued
Operations.

(CAD$ in millions) 2023

Copper Zinc Steelmaking Coal Total
Copper $ 3,016 $ — $ — $ 3,016
Zinc 257 2,443 — 2,700
Steelmaking coal — — 8,535 8,535
Silver 44 414 — 458
Lead 2 386 — 388
Other 106 351 — 457
Intra-segment — (543) — (543)
$ 3,425 $ 3,051 $ 8,535 $ 15,011

(CAD$ in millions) 2022

Copper Zinc Steelmaking Coal Total
Copper $ 2,925 $ — $ — $ 2,925
Zinc 331 3,101 — 3,432
Steelmaking coal — — 10,409 10,409
Silver 40 341 — 381
Lead 4 344 — 348
Other 81 395 — 476
Intra-segment — (655) — (655)
$ 3,381 $ 3,526 $ 10,409 $ 17,316

32
7. Revenue (continued)

b) Total Revenue by Region

The following table shows our revenue disaggregated by geographical region. Revenue is attributed to regions based on the
destination port or delivery location as designated by the customer.

(CAD$ in millions) 2023 2022

Asia
China $ 4,202 $ 4,804
Japan 2,749 3,216
South Korea 1,675 2,178
India 1,214 1,306
Other 697 1,169
Americas
United States 1,577 1,727
Canada 775 857
Chile 339 154
Other 170 38
Europe
Germany 560 428
Spain 246 271
Finland 188 278
Belgium 140 134
Slovakia 126 150
Other 353 606
$ 15,011 $ 17,316

In 2023, one major customer in the steelmaking coal business unit accounted for approximately $1.5 billion in total revenue,
representing more than 10% of total revenue. In 2022, no customer accounted for more than 10% of total revenue.

33
8. Expenses by Nature

(CAD$ in millions) 2023 2022

Employment-related costs:
Wages and salaries $ 1,375 $ 1,121
Employee benefits and other wage-related costs 331 313
Bonus payments 296 350
Post-employment benefits and pension costs 129 154
2,131 1,938
Transportation 1,605 1,515
Depreciation and amortization 1,931 1,674
Raw material purchases 601 655
Fuel and energy 1,233 1,103
Operating supplies consumed 933 782
Maintenance and repair supplies 1,118 845
Contractors and consultants 1,468 904
Overhead costs 498 559
Royalties 285 495
Other operating costs net of recoveries (72) (32)
11,731 10,438
Adjusted for:
Capitalized production stripping costs (1,104) (1,042)
Change in inventory (192) (168)
Total cost of sales, general and administration,
exploration and research and innovation expenses $ 10,435 $ 9,228

34
9. Asset and Goodwill Impairment Testing

a) Impairment Testing – Steelmaking Coal Group of CGUs

Goodwill Impairment Testing – October 31, 2023

Our steelmaking coal group of CGUs has goodwill allocated to it (Note 18). For our annual goodwill impairment testing, we
estimated the recoverable amount of the steelmaking coal group of CGUs based on consideration expected to be received from
the announced sale transactions in November 2023 (Note 6(a)). This includes the present value of the agreed-upon cash
proceeds from Glencore and NSC, plus the expected discounted cash flows from the steelmaking coal group of CGUs until
expected closing of the Glencore transaction. The estimated recoverable amount of the steelmaking coal group of CGUs
exceeded the carrying amount by approximately $600 million at October 31, 2023, our annual goodwill impairment testing
date. These FVLCD estimates are classified as a Level 3 measurement within the fair value measurement hierarchy (Note 32).

The recoverable amount of our steelmaking coal group of CGUs is most sensitive to changes in the U.S. dollar to Canadian
dollar foreign exchange rate, which is applied to both the cash receipts and the cash flows until closing. We used a U.S. dollar
to Canadian dollar exchange rate of 1.38 in our estimation, based on the forward curve at October 31, 2023. In isolation, a
strengthening of the Canadian dollar to 1.33 would result in the recoverable amount of the steelmaking coal group of CGUs
being approximately equal to the carrying amount. Other significant assumptions include the steelmaking coal price, sales
volumes and operating costs.

Impairment Testing – December 31, 2023

As at December 31, 2023, as a result of the strengthening of the Canadian dollar against the U.S. dollar affecting the Canadian
dollar equivalent of our expected consideration to be received in the sale of the steelmaking coal business transactions, we
performed an additional impairment test for our steelmaking coal group of CGUs. We updated the estimated recoverable
amount based on the consideration expected to be received, consistent with the annual goodwill impairment testing performed
as at October 31, 2023. In performing this impairment test, we used a U.S. dollar to Canadian dollar foreign exchange rate of
1.32 based on the forward curve at December 31, 2023 and also updated applicable assumptions including the steelmaking coal
price, sales volumes and operating costs.

The estimated recoverable amount of the steelmaking coal group of CGUs exceeded the carrying amount by approximately $80
million at December 31, 2023. These FVLCD estimates are classified as a Level 3 measurement within the fair value
measurement hierarchy (Note 32).

In isolation, a $0.01 strengthening in the Canadian dollar would result in the recoverable amount being approximately equal to
the carrying amount.

b) Impairment Testing – Trail CGU and Assets Held for Sale – 2022

In the fourth quarter of 2022, as a result of increased costs and operating challenges at the Trail CGU, we performed an
impairment test for our Trail CGU. Cash flow projections used in the analysis as at December 31, 2022 were based on an
operating plan with cash flows covering a period of 80 years. The recoverable amount of our Trail CGU was approximately
equal to the carrying amount of $1.2 billion at the date of testing. As a result, any changes in the key assumptions in (d) below
could result in the carrying amount exceeding the recoverable amount.

In 2022, immediately before the initial classification of assets held for sale, we measured the assets at the lower of their carrying
amount and fair value less costs to sell with the results disclosed in Note 5.

35
9. Asset and Goodwill Impairment Testing (continued)

c) Annual Goodwill Impairment Testing – Quebrada Blanca CGU

Our Quebrada Blanca CGU has goodwill allocated to it (Note 18). We performed our annual goodwill impairment testing at
October 31, 2023, calculating the recoverable amount on a FVLCD basis and did not identify any goodwill impairment losses.
Cash flow projections in the discounted cash flow model cover the current expected mine life of Quebrada Blanca and a
projected expansion, totalling 49 years, with an estimate of in situ value applied to the remaining resources. Given the nature of
expected future cash flows used to determine the recoverable amount, a material change could occur over time, as the cash
flows are significantly affected by the key assumptions described below in (d).

Sensitivity Analysis

The recoverable amount of our Quebrada Blanca CGU exceeded the carrying amount by approximately $600 million at the date
of our annual goodwill impairment testing. The recoverable amount of Quebrada Blanca is most sensitive to the long-term
copper price assumption and discount rate assumption. In isolation, a US$0.10 decrease in the long-term copper price, or a 30
basis points increase in the discount rate would result in the recoverable amount of Quebrada Blanca being equal to its carrying
value.

Significant assumptions used in preparing the discounted cash flow model for our Quebrada Blanca CGU goodwill impairment
test include commodity prices, reserves and resources, sales volumes, operating costs, capital expenditures, discount rate and
the fair value per pound of copper equivalent used in the determination of the in situ value.

d) Key Assumptions – Quebrada Blanca CGU and Trail CGU

The following are the key assumptions used in our Quebrada Blanca CGU impairment testing calculations for the years ended
December 31, 2023 and 2022:

2023 2022
Copper prices per pound Long-term real price in 2028 of US$3.90 Long-term real price in 2027 of US$3.60
Post-tax real discount rate 7.0% 6.5%

In our 2022 impairment assessment of the Trail CGU, we used long-term assumptions of US$1.25 per pound for zinc, US$277
per tonne for treatment charges, US$0.11 per pound for zinc premiums, a U.S. dollar to Canadian dollar exchange rate of 1.30
and a post-tax real discount rate of 5.5%.

Interrelation of Key Assumptions

The key assumptions used in our determination of recoverable amounts interrelate significantly with each other and with our
operating plans. For example, a decrease in long-term commodity prices could result in amendments to the mine plans that
would partially offset the effect of lower prices through lower operating costs and capital expenditures. It is difficult to
determine how all of these factors would interrelate, but in estimating the effect of changes in these assumptions on fair values,
we believe that all of these factors need to be considered together. A linear extrapolation of these effects becomes less
meaningful as the change in assumption increases.

Commodity Price Assumptions

Commodity price assumptions use current prices in the initial year and trend to the long-term prices in the information
referenced above. Prices are based on a number of factors, including historical data, analyst estimates and forward curves in the
near term and are benchmarked with external sources of information, including information published by our peers and market
transactions, where possible, to ensure they are within the range of values used by market participants.

Discount Rates

Discount rates are based on market participant mining and smelting weighted average costs of capital adjusted for risks specific
to the operation or asset where appropriate.

36
9. Asset and Goodwill Impairment Testing (continued)

Foreign Exchange Rates

U.S. dollar to Canadian dollar foreign exchange rates are significant to the Trail CGU and are benchmarked with external
sources of information based on a range used by market participants.

Reserves and Resources, Mine Production and Smelter Production

Future mineral production is included in projected cash flows based on plant capacities, reserve and resource estimates and
related exploration and evaluation work undertaken by appropriately qualified persons.

Future smelter production is included in projected cash flows based on plant capacities.

In Situ Value

The fair value of resources beyond production included in the discounted cash flow model are estimated on a fair value per
pound on a copper equivalent basis using available comparable market data.

Operating Costs and Capital Expenditures

Operating costs and capital expenditures are based on life of mine plans, operating plans and internal management forecasts, as
applicable. Cost estimates incorporate management experience and expertise, current operating costs, the nature and location of
each operation, and the risks associated with each operation. Future capital expenditures are based on management’s best
estimate of expected future capital requirements, with input from management’s experts where appropriate. All committed and
anticipated capital expenditures based on future cost estimates have been included in the projected cash flows. Operating cost
and capital expenditure assumptions are subject to ongoing optimization and review by management.

Recoverable Amount Basis

In the absence of a relevant market transaction, we estimate the recoverable amount of our CGU on a FVLCD basis using a
discounted cash flow methodology, taking into account assumptions likely to be made by market participants unless it is
expected that the value in use methodology would result in a higher recoverable amount. For the asset impairment and goodwill
impairment analyses performed in 2023 and 2022, we have applied the FVLCD basis. These estimates are classified as a Level
3 measurement within the fair value measurement hierarchy (Note 32).

37
10. Other Operating Income (Expense)

(CAD$ in millions) 2023 2022

Settlement pricing adjustments (Note 31(b)) $ 39 $ (371)
Share-based compensation (107) (236)
Environmental costs and remeasurement of decommissioning and restoration
provisions for closed operations (168) (128)
Care and maintenance costs (62) (59)
Social responsibility and donations (66) (65)
Gain (loss) on disposal or contribution of assets 244 (4)
Commodity derivatives (12) 35
Take-or-pay contract costs (75) (86)
Elkview business interruption claim (Note 28) 221 —
Other (220) (188)
$ (206) $ (1,102)

11. Finance Income and Finance Expense

(CAD$ in millions) 2023 2022

Finance income
Investment income $ 97 $ 49
Accretion on long-term receivables 15 4
Total finance income $ 112 $ 53

Finance expense
Debt interest $ 245 $ 253
Interest on QB2 project financing 245 112
Interest on advances from SMM/SC 259 89
Interest on lease liabilities 31 15
Letters of credit and standby fees 39 34
Accretion on decommissioning and restoration provisions 180 138
Other 55 51
1,054 692
Less capitalized borrowing costs (Note 17) (780) (489)
Total finance expense $ 274 $ 203

38
12. Non-Operating Income (Expense)

(CAD$ in millions) 2023 2022

QB2 variable consideration to IMSA and ENAMI (a) $ (156) $ (188)
Foreign exchange gains (losses) (9) 15
Loss on debt redemption or purchase (Note 20(a) and (g)) — (58)
Downstream pipeline take-or-pay toll commitment (40) —
Other (61) (44)
$ (266) $ (275)

a) QB2 Variable Consideration to IMSA and ENAMI

During the year ended December 31, 2023, we recorded $4 million (2022 – $5 million) of expense (Note 31(b)) related to a
derivative financial liability that arose from our 2018 acquisition of an additional 13.5% interest in QBSA through the purchase
of Inversiones Mineras S.A. (IMSA), a private Chilean company. This derivative financial liability is carried at fair value, with
changes in fair value being recognized in profit (loss). The purchase price at the date of acquisition included additional amounts
that may become payable to the extent that average copper prices exceed US$3.15 per pound in each of the first three years
following commencement of commercial production, as defined in the acquisition agreement, up to a cumulative maximum of
US$100 million if commencement of commercial production occurs prior to January 21, 2024 or up to a lesser maximum in
certain circumstances thereafter. At the date of the acquisition, a nominal value was attributed to the additional payments. As at
December 31, 2023, the fair value of this financial liability is $115 million (2022 – $114 million) (Note 25), with estimated
future average copper prices expected to exceed the US$3.15 per pound threshold, based on the expected timing of
commencement of commercial production.

During the year ended December 31, 2023, we recorded $152 million (2022 – $183 million) of expense related to changes in
the carrying value of the financial liability for the preferential dividend stream from QBSA to Empresa Nacional de Minería
(ENAMI). As at December 31, 2023, the carrying value of this financial liability, which is measured at amortized cost, is $444
million (2022 – $286 million) (Note 25). 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 affects the timing of when QBSA repays the
loans.

The fair values of the IMSA and ENAMI liabilities are both calculated using a discounted cash flow method based on quoted
market prices and are considered Level 3 fair value measurements with significant unobservable inputs on the fair value
hierarchy (Note 32).

39
13. Supplemental Cash Flow Information

December 31, December 31,

(CAD$ in millions) 2023 2022
Cash and cash equivalents
Cash $ 399 $ 259
Investments with maturities from the date of acquisition of three months or less 345 1,624
$ 744 $ 1,883

(CAD$ in millions) 2023 2022

Net change in non-cash working capital items
Trade and settlement receivables $ (583) $ 478
Inventories (426) (421)
Prepaids and other current assets (237) (401)
Trade accounts payable and other liabilities 256 237
$ (990) $ (107)

14. Inventories

December 31, December 31,

(CAD$ in millions) 2023 2022
Supplies $ 1,318 $ 1,045
Raw materials 277 278
Work in process 1,046 857
Finished products 655 718
3,296 2,898
Less non-current portion (Note 15) (350) (213)
$ 2,946 $ 2,685

Cost of sales of $9.9 billion (2022 – $8.7 billion) includes $8.9 billion (2022 – $7.7 billion) of production costs that were
recognized as part of inventories and subsequently expensed when sold during the year.

Total inventories held at net realizable value amounted to $49 million at December 31, 2023 (2022 – $40 million). Total
inventory write-downs in 2023 were $26 million (2022 – $50 million) and were included as part of cost of sales.

Non-current inventories consist of ore stockpiles and other in-process materials that are not expected to be sold within one year.

40
15. Financial and Other Assets

December 31, December 31,

(CAD$ in millions) 2023 2022
Non-current receivables and deposits $ 207 $ 163
Marketable equity and debt securities carried at fair value 397 364
Pension plans in a net asset position (Note 24(a)) 446 224
Derivative assets 68 56
Non-current portion of inventories (Note 14) 350 213
Finite life intangibles (a) 345 400
Other 61 46
$ 1,874 $ 1,466

a) Finite Life Intangibles

At January 1, 2022, we had a carrying value of internally developed finite life intangible assets of $395 million, which is net of
accumulated amortization and impairment of $67 million.

During the year ended December 31, 2023, there were additions of $83 million (2022 – $99 million), amortization of $50
million (2022 – $49 million), impairment of $88 million (2022 – $9 million) recorded in the statement of income and $nil assets
transferred to held for sale on the balance sheet (2022 – $36 million).

The ending carrying value as at December 31, 2023 was $345 million (2022 – $400 million), which is net of accumulated
amortization and impairment of $263 million (2022 – $125 million).

16. Investment in Joint Venture

In August 2015, Teck and Newmont Corporation (Newmont) announced an agreement to combine their respective Relincho
and El Morro projects, located approximately 40 kilometres apart in the Huasco Province in the Atacama Region of Chile, into
a single project. The combined project is a joint arrangement that is structured through a separate vehicle, classified as a joint
venture named NuevaUnión, where Teck and Newmont each own 50%. The net assets of NuevaUnión substantially relate to
exploration and evaluation assets.

(CAD$ in millions) NuevaUnión

At January 1, 2022 $ 1,060
Contributions 4
Changes in foreign exchange rates 73
Share of profit 4
Other (2)
At December 31, 2022 $ 1,139
Contributions 2
Changes in foreign exchange rates (27)
Share of profit 2
At December 31, 2023 $ 1,116

41
17. Property, Plant and Equipment

Land, Capitalized
Exploration Buildings, Production
and Mineral Plant and Stripping Construction
(CAD$ in millions) Evaluation Properties Equipment Costs In Progress Total
At January 1, 2022
Cost $ 944 $ 21,362 $ 18,716 $ 7,334 $ 9,931 $ 58,287
Accumulated depreciation — (6,681) (9,578) (4,646) — (20,905)
Net book value $ 944 $ 14,681 $ 9,138 $ 2,688 $ 9,931 $ 37,382
Year ended December 31, 2022
Opening net book value $ 944 $ 14,681 $ 9,138 $ 2,688 $ 9,931 $ 37,382
Additions 102 — 389 1,138 4,964 6,593
Disposals — — (25) — (5) (30)
Asset impairment (37) (247) (959) — — (1,243)
Depreciation and amortization — (325) (906) (630) — (1,861)
Transfers between classifications — 104 1,420 — (1,524) —
Changes in decommissioning,
restoration and other provisions — (743) (145) — — (888)
Capitalized borrowing costs
(Note 11) — 131 — — 358 489
Transfer to assets held for sale (142) (546) (735) — (129) (1,552)
Changes in foreign exchange
rates 28 235 172 52 718 1,205
Closing net book value $ 895 $ 13,290 $ 8,349 $ 3,248 $ 14,313 $ 40,095
At December 31, 2022
Cost $ 895 $ 20,364 $ 18,567 $ 8,596 $ 14,313 $ 62,735
Accumulated depreciation — (7,074) (10,218) (5,348) — (22,640)
Net book value $ 895 $ 13,290 $ 8,349 $ 3,248 $ 14,313 $ 40,095
Year ended December 31, 2023
Opening net book value $ 895 $ 13,290 $ 8,349 $ 3,248 $ 14,313 $ 40,095
Additions 581 198 918 1,198 3,615 6,510
Disposals (12) (2) (34) — (7) (55)
Depreciation and amortization — (377) (964) (739) — (2,080)
Transfers between
classifications (c) — 324 13,787 — (14,111) —
Changes in decommissioning,
restoration and other provisions (7) 926 18 — (6) 931
Capitalized borrowing costs
(Note 11) — — — — 780 780
Changes in foreign exchange
rates (25) (89) (282) (25) (195) (616)
Closing net book value $ 1,432 $ 14,270 $ 21,792 $ 3,682 $ 4,389 $ 45,565
At December 31, 2023
Cost $ 1,432 $ 20,693 $ 32,637 $ 9,738 $ 4,389 $ 68,889
Accumulated depreciation — (6,423) (10,845) (6,056) — (23,324)
Net book value $ 1,432 $ 14,270 $ 21,792 $ 3,682 $ 4,389 $ 45,565

42
17. Property, Plant and Equipment (continued)

a) Exploration and Evaluation

Significant exploration and evaluation projects in property, plant and equipment include the Galore Creek, Zafranal, San
Nicolás and NewRange projects.

b) Borrowing Costs

Borrowing costs are capitalized at a rate based on our weighted average cost of borrowing or at the rate of the project-specific
debt, as applicable. Capitalized borrowing costs are classified with the asset they relate to within mineral properties, land,
buildings, plant and equipment, or construction in progress. Our weighted average borrowing rate used for capitalization of
borrowing costs in 2023 was 5.8% (2022 – 5.7%).

c) Transfers Between Classifications – 2023

The majority of the assets related to QB2 became available for use in December of 2023. As a result, we transferred $1.3 billion
into land, buildings, plant and equipment and $290 million into mineral properties from construction in progress.

18. Goodwill

Steelmaking Quebrada
(CAD$ in millions) Coal Operations Blanca Total
January 1, 2022 $ 702 $ 389 $ 1,091
Changes in foreign exchange rates — 27 27
December 31, 2022 $ 702 $ 416 $ 1,118
Changes in foreign exchange rates — (10) (10)
December 31, 2023 $ 702 $ 406 $ 1,108

The results of our annual goodwill impairment analysis and key assumptions used are outlined in Note 9(a) for the steelmaking
coal group of CGUs and Note 9(c) and (d) for the Quebrada Blanca CGU.

19. Trade Accounts Payable and Other Liabilities

December 31, December 31,

(CAD$ in millions) 2023 2022
Trade accounts payable and accruals $ 2,310 $ 1,897
Capital project accruals 416 1,152
Payroll-related liabilities 351 374
Accrued interest 101 100
Commercial and government royalties 252 302
Current portion of provisions (Note 25(a)) 347 361
Settlement payables (Note 31(b)) 36 45
Contract liabilities – consignment sales 27 19
Other IMSA payable 66 68
Current portion of downstream pipeline take-or-pay toll commitment 29 —
Other 66 49
$ 4,001 $ 4,367

43
20. Debt

($ in millions) December 31, 2023 December 31, 2022

Face Fair Carrying Face Fair Carrying
Value Value Value Value Value Value
(US$) (CAD$) (CAD$) (US$) (CAD$) (CAD$)
3.75% notes due February 2023 (a)(i) $ — $ — $ — $ 108 $ 147 $ 147
3.9% notes due July 2030 (a)(iii) 503 621 658 503 614 673
6.125% notes due October 2035 (a)(iii)(iv) 336 467 439 336 452 449
6.0% notes due August 2040 (a)(iv) 473 642 624 480 631 648
6.25% notes due July 2041 (a)(iii)(iv) 396 544 519 396 531 531
5.2% notes due March 2042 (a)(iii) 395 488 516 395 471 529
5.4% notes due February 2043 (a)(iii) 367 466 481 367 448 492
2,470 3,228 3,237 2,585 3,294 3,469
QB2 project financing facility (b) 2,206 2,979 2,873 2,500 3,419 3,322
Carmen de Andacollo short-term
loans (c) 95 126 126 52 71 71
Antamina loan agreement (d) 225 298 298 225 305 305
$ 4,996 $ 6,631 $ 6,534 $ 5,362 $ 7,089 $ 7,167
Less current portion of debt (389) (515) (515) (454) (616) (616)
$ 4,607 $ 6,116 $ 6,019 $ 4,908 $ 6,473 $ 6,551

The fair values of debt are determined using market values, if available, and discounted cash flows based on our cost of
borrowing where market values are not available. The latter are considered Level 2 fair value measurements with significant
other observable inputs on the fair value hierarchy (Note 32).

a) Notes Purchased or Redeemed

All of our outstanding notes are redeemable at any time by repaying the greater of the principal amount and the present value of
the sum of the remaining scheduled principal and interest amounts discounted at a comparable treasury yield plus a stipulated
spread, plus, in each case, accrued interest to, but not including, the date of redemption. In addition, all of our outstanding
notes, except for notes due October 2035, are callable at 100% (plus accrued interest to, but not including, the date of
redemption) within three to six months of maturity.

i) In February 2023, we redeemed the 3.75% notes due 2023 at maturity for $144 million (US$108 million) plus accrued
interest.

ii) In January 2022, we redeemed the 4.75% notes due 2022 at maturity for $187 million (US$150 million) plus accrued
interest.

iii) In 2022, we purchased US$93 million aggregate principal amount of our outstanding notes pursuant to an open market
purchase. The principal amount of the notes purchased comprised US$47 million of the 3.9% notes due 2030, US$24 million of
the 6.125% notes due 2035, US$8 million of the 6.25% notes due 2041, US$4 million of the 5.2% notes due 2042 and
US$10 million of the 5.4% notes due 2043. The total cost of the purchases, which was funded from cash on hand, including the
discounts and accrued interest was $120 million (US$90 million). We recorded a pre-tax gain of $5 million in non-operating
income (expense) (Note 12) in connection with these purchases.

iv) In 2022, we also purchased US$650 million aggregate principal amount of our outstanding notes pursuant to cash tender
offers. The principal amount of the notes purchased comprised US$249 million of the 6.125% notes due 2035, US$10 million
of the 6.0% notes due 2040, and US$391 million of the 6.25% notes due 2041. The total cost of the purchases, which was
funded from cash on hand, including the premiums and accrued interest was $909 million (US$703 million). We recorded a
pre-tax expense of $63 million in non-operating income (expense) (Note 12) in connection with these purchases.

44
20. Debt (continued)

b) QB2 Project Financing Facility

As at December 31, 2023, the limited recourse QB2 project financing facility had a balance of US$2.2 billion. Amounts drawn
under the facility bear interest at Term SOFR plus applicable margins that vary over time. The facility will be repaid in 15
remaining semi-annual instalments, with the first and second repayments of US$147 million made on June 15, 2023 and
December 15, 2023 respectively. The facility is guaranteed pre-completion on a several basis by Teck and SMM/SC pro rata to
the respective equity interests in the Series A shares of QBSA. The facility is secured by pledges of Teck’s and SMM/SC’s
interests in QBSA and by security over QBSA’s assets, which consist primarily of QB2 project assets.

c) Carmen de Andacollo Short-Term Loans

As at December 31, 2023, we had $126 million (US$95 million) of debt outstanding in the form of fixed rate short-term bank
loans with maturities of less than one year. The purpose of the loans is to fund the short-term working capital requirements at
Carmen de Andacollo.

d) Antamina Loan Agreement

On July 12, 2021, Antamina entered into a US$1.0 billion loan agreement, which was fully drawn as at December 31, 2023.
Our 22.5% share of the principal value of the loan is US$225 million. Amounts outstanding under this facility bear interest at
Term SOFR plus an applicable margin. The loan is non-recourse to us and the other Antamina owners and matures in 2026.

e) Revolving Credit Facilities

We maintain a US$4.0 billion sustainability-linked revolving credit facility maturing October 2026. The facility has pricing
adjustments where the cost will increase, decrease or remain unchanged based on our sustainability performance. Our
sustainability performance over the term of the facility is measured by non-financial variables that are specific to our
greenhouse gas emissions intensity, the percentage of women in our workforce and our high-potential safety incidents.

As at December 31, 2023, the facility was undrawn. Any amounts drawn under this facility can be repaid at any time and are
due in full at maturity. Amounts outstanding under the facility bear interest at Term SOFR plus an applicable margin based on
credit ratings and our sustainability performance, as described above. As defined in the agreement, this facility requires our total
net debt-to-capitalization ratio, which was 0.20 to 1.0 at December 31, 2023, not to exceed 0.60 to 1.0 (Note 33). This facility
does not have an earnings or cash flow-based financial covenant, a credit rating trigger or a general material adverse effect
borrowing condition.

We maintain uncommitted bilateral credit facilities primarily for the issuance of letters of credit to support our future
reclamation obligations. As at December 31, 2023, we had $2.6 billion of letters of credit outstanding.

We also had $1.2 billion in surety bonds outstanding at December 31, 2023 to support current and future reclamation
obligations.

45
20. Debt (continued)

f) Scheduled Principal Payments

At December 31, 2023, scheduled principal payments during the next five years and thereafter are as follows:

CAD$
($ in millions) US$ Equivalent
2024 $ 389 $ 515
2025 294 389
2026 519 687
2027 294 389
2028 294 389
Thereafter 3,206 4,240
$ 4,996 $ 6,609

g) Debt Continuity

($ in millions) US$ CAD$ Equivalent

2023 2022 2023 2022
As at January 1 $ 5,292 $ 5,816 $ 7,167 $ 7,374
Cash flows
Proceeds from debt 170 445 230 569
Redemption, purchase or repayment of debt (530) (1,026) (710) (1,323)
Non-cash changes
Loss on debt redemption or purchase (Note 12) — 45 — 58
Changes in foreign exchange rates — — (164) 474
Finance fees, discount amortization and other 8 12 11 15
As at December 31 $ 4,940 $ 5,292 $ 6,534 $ 7,167

21. Leases

a) Significant Individual Lease Arrangements

TAK leases road and port facilities from the Alaska Industrial Development and Export Authority, through which it ships all
concentrates produced at the Red Dog mine. The lease requires TAK to pay a minimum annual user fee of US$6 million until
2040. As at December 31, 2023, the related lease liability was $85 million (2022 – $91 million).

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. In the fourth quarter of 2023, 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. As at December 31, 2023,
the related lease liability was $428 million. The corresponding right-of-use asset was $447 million.

46
21. Leases (continued)

b) Right-of-Use Assets

Our significant lease arrangements include contracts for leasing office premises, mining equipment, railcars, road and port
facilities and electrical power transmission systems. As at December 31, 2023, $1.1 billion (2022 – $612 million) of right-of-
use assets are recorded as part of land, buildings, plant and equipment within property, plant and equipment.

(CAD$ in millions) 2023 2022

Opening net book value $ 612 $ 728
Additions 673 214
Depreciation (147) (142)
Changes in foreign exchange rates and other (30) 31
Transfer to assets held for sale — (219)
Closing net book value $ 1,108 $ 612

c) Lease Liability Continuity

(CAD$ in millions) 2023 2022

As at January 1 $ 571 $ 694
Cash flows
Principal payments (160) (149)
Interest payments (31) (38)
Non-cash changes
Additions 674 210
Interest expense 31 38
Changes in foreign exchange and other (24) 25
Transfer to liabilities associated with assets held for sale — (209)
As at December 31 $ 1,061 $ 571
Less current portion of lease liabilities (195) (132)
Non-current lease liabilities $ 866 $ 439

47
22. QB2 Advances from SMM/SC

In conjunction with the subscription arrangement with SMM/SC, QBSA entered into a subordinated loan facility agreement
with SMM/SC to advance QBSA up to US$1.3 billion. In 2022, QBSA entered into a second subordinated loan facility
agreement with SMM/SC to advance QBSA up to an additional US$750 million. In 2023, QBSA entered into a third and fourth
subordinated shareholder loan facility agreement with SMM/SC to advance QBSA up to an additional US$580 million and
US$395 million, respectively. The second, third and fourth subordinated loan facilities contain similar terms to the original
subordinated loan facility. The advances for all four facility agreements are due to be repaid in full at maturity on January 15,
2038. Amounts outstanding under the facilities bear interest at Term SOFR plus applicable margins that vary over time.

As at December 31, 2023, the original US$1.3 billion and the second US$750 million subordinated shareholder loan facilities
were fully drawn, US$578 million was outstanding under the third subordinated shareholder loan facility and the fourth
subordinated shareholder loan facility remains undrawn.

($ in millions) December 31, 2023 December 31, 2022

Face Fair Carrying Face Fair Carrying
Value Value Value Value Value Value
(US$) (CAD$) (CAD$) (US$) (CAD$) (CAD$)
QB2 advances from SMM/SC $ 2,661 $ 3,589 $ 3,497 $ 1,693 $ 2,330 $ 2,279

The fair value of the advances is determined using discounted cash flows based on our cost of borrowing. This is considered a
Level 2 fair value measurement with significant observable inputs on the fair value hierarchy (Note 32).

a) QB2 Advances from SMM/SC Carrying Value Continuity

($ in millions) US$ CAD$ Equivalent

2023 2022 2023 2022
As at January 1 $ 1,683 $ 997 $ 2,279 $ 1,263
Cash flows
Advances 960 685 1,292 899
Non-cash changes
Finance fee amortization 1 1 1 1
Changes in foreign exchange rates — — (75) 116
As at December 31 $ 2,644 $ 1,683 $ 3,497 $ 2,279

48
23. Income Taxes

a) Tax Rate Reconciliation to the Canadian Statutory Income Tax Rate

(CAD$ in millions) 2023 2022

Profit from continuing operations before taxes $ 3,944 $ 6,565
Loss from discontinued operations before taxes (Note 5) (28) (956)
Profit for the year from continuing and discontinued operations before taxes $ 3,916 $ 5,609

Tax expense at the Canadian statutory income tax rate of 27% (2022 – 26.53%) $ 1,057 $ 1,488
Tax effect of:
Resource taxes 419 670
Resource and depletion allowances (64) (96)
Non-deductible expenses (non-taxable income) 42 74
Tax pools not recognized (recognition of previously unrecognized tax pools) 8 5
Effect of new Chilean royalty (f) 106 —
Difference in tax rates in foreign jurisdictions 48 76
Revisions to prior year estimates 17 15
Non-controlling interests (25) (21)
Effect from sale of Fort Hills 2 83
Other (2) 17
Total income taxes from continuing and discontinued operations $ 1,608 $ 2,311

Represented by:
Current income taxes 2,228 1,413
Deferred income taxes (620) 898
Total income taxes from continuing and discontinued operations $ 1,608 $ 2,311

Provision for income taxes from continuing operations 1,610 2,495

Recovery of income taxes from discontinued operations (2) (184)
Total income taxes from continuing and discontinued operations $ 1,608 $ 2,311

Current income taxes are accrued and paid in all jurisdictions in which we operate.

49
23. Income Taxes (continued)

b) Continuity of Deferred Tax Assets and Liabilities

January 1, Through Through December 31,

(CAD$ in millions) 2023 Profit (Loss) OCI Transfer 2023
Net operating loss and capital loss
carryforwards $ 48 $ 13 $ — $ — $ 61
Property, plant and equipment (165) (2) — — (167)
Decommissioning and restoration provisions 155 12 — — 167
Other timing differences (TDs) 37 (21) (12) — 4
Deferred income tax assets $ 75 $ 2 $ (12) $ — $ 65
Net operating loss and capital loss
carryforwards $ (458) $ (205) $ 11 $ — $ (652)
Property, plant and equipment 7,234 638 (46) 68 7,894
Decommissioning and restoration provisions (803) (371) 7 — (1,167)
Unrealized foreign exchange (91) 7 9 — (75)
Withholding taxes 133 (14) (3) — 116
Inventories 148 10 3 — 161
Partnership income deferral and other TDs 615 (754) 50 — (89)
Deferred income tax liabilities $ 6,778 $ (689) $ 31 $ 68 $ 6,188

The transfer column refers to deferred tax assets and deferred tax liabilities related to assets held for sale (Note 5).

January 1, Through Through December 31,

(CAD$ in millions) 2022 Profit (Loss) OCI Transfer 2022
Net operating loss and capital loss
carryforwards $ 141 $ (98) $ 5 $ — $ 48
Property, plant and equipment (180) 15 — — (165)
Decommissioning and restoration provisions 190 (35) — — 155
Other TDs 10 51 (24) — 37
Deferred income tax assets $ 161 $ (67) $ (19) $ — $ 75
Net operating loss and capital loss
carryforwards $ (532) $ 93 $ (19) $ — $ (458)
Property, plant and equipment 7,546 (333) 89 (68) 7,234
Decommissioning and restoration provisions (1,050) 261 (14) — (803)
Unrealized foreign exchange (85) 3 (9) — (91)
Withholding taxes 100 27 6 — 133
Inventories 156 (9) 1 — 148
Partnership income deferral and other TDs (162) 789 (12) — 615
Deferred income tax liabilities $ 5,973 $ 831 $ 42 $ (68) $ 6,778

50
23. Income Taxes (continued)

c) Deferred Tax Assets and Liabilities Not Recognized

We have not recognized $57 million (2022 – $299 million) of deferred tax assets associated with unused tax credits and tax
pools in entities and jurisdictions that do not have established sources of taxable income. Of the amount in 2022, $248 million
related to the Quintette disposal group, which was sold in February 2023 (Note 6(c)).

Deferred tax liabilities of approximately $836 million (2022 – $858 million) have not been recognized on the unremitted
foreign earnings associated with investments in subsidiaries and interests in joint arrangements where we control the timing of
the reversal of the temporary differences and it is probable that such differences will not reverse in the foreseeable future.

d) Loss Carryforwards

At December 31, 2023, we had $282 million Canadian net operating loss carryforwards (2022 – $166 million) and $1.89 billion
(2022 – $1.22 billion) of Chilean net operating losses, which have an indefinite carryforward period. The deferred tax benefit of
these pools has been recognized.

e) Scope of Antamina’s Peruvian Tax Stability Agreement

The Peruvian tax authority, La Superintendencia Nacional de Aduanas y de Administración Tributaria (SUNAT), issued
income tax assessments for the 2013 to 2017 taxation years to Antamina (our joint operation in which we own a 22.5% share),
denying accelerated depreciation claimed by Antamina in respect of a mill expansion and other assets, on the basis that the
expansion was not covered by Antamina’s tax stability agreement applicable for the years up until 2017.

Antamina is continuing to pursue the matter in the Peruvian Judiciary Courts. The denial of accelerated depreciation claimed is
a timing issue in our tax provision, which we have recognized together with our share of previously paid interest and penalties.

f) Chilean Mining Royalty Reform

The new two-tiered Chilean mining royalty regime on copper revenues and profit was enacted into law in 2023. As a result, we
recognized a deferred tax expense of $106 million, which represents our estimated additional future mining royalties following
the expiration of the tax stability agreements for Carmen de Andacollo and Quebrada Blanca in 2027 and 2037, respectively.
This expense was calculated based on the existing taxable temporary differences that are scheduled to reverse in future years.

24. Retirement Benefit Plans

We have defined contribution pension plans for certain groups of employees. Our share of contributions to these plans is
expensed in the year earned by employees.

We have multiple defined benefit pension plans registered in various jurisdictions that provide benefits based principally on
employees’ years of service and average annual remuneration. These plans are only available to certain qualifying employees
and some are now closed to additional members. The plans are “flat-benefit” or “final-pay” plans and may provide for
inflationary increases in accordance with certain plan provisions. All of our registered defined benefit pension plans are
governed and administered in accordance with applicable pension legislation in either Canada or the United States. Actuarial
valuations are performed at least every three years to determine minimum annual contribution requirements as prescribed by
applicable legislation. For the majority of our plans, current service costs are funded based on a percentage of pensionable
earnings or as a flat dollar amount per active member depending on the provisions of the pension plans. Actuarial deficits are
funded in accordance with minimum funding regulations in each applicable jurisdiction. All of our defined benefit pension
plans were actuarially valued within the past three years. While the majority of benefit payments are made from registered held-
in-trust funds, there are also several unregistered and unfunded plans where benefit payment obligations are met as they fall
due.

We also have several post-retirement benefit plans that provide post-retirement medical, dental and life insurance benefits to
certain qualifying employees and surviving spouses. These plans are unfunded and we meet benefit obligations as they come
due.

51
24. Retirement Benefit Plans (continued)

a) Actuarial Valuation of Plans

(CAD$ in millions) 2023 2022

Defined Non-Pension Defined Non-Pension
Benefit Post- Benefit Post-
Pension Retirement Pension Retirement
Plans Benefit Plans Plans Benefit Plans
Defined benefit obligation
Balance at beginning of year $ 1,834 $ 343 $ 2,407 $ 420
Current service cost 39 22 63 26
Past service costs arising from plan improvements — — 4 —
Benefits paid (138) (21) (140) (16)
Interest expense 90 16 71 12
Obligation experience adjustments 11 (5) 12 (5)
Effect from change in financial assumptions 93 14 (595) (98)
Effect from change in demographic assumptions 1 — 2 —
Changes in foreign exchange rates (1) 1 10 4
Balance at end of year 1,929 370 1,834 343
Fair value of plan assets
Fair value at beginning of year 2,371 — 2,858 —
Interest income 117 — 86 —
Return on plan assets, excluding amounts included
in interest income 115 — (460) —
Benefits paid (138) (21) (140) (16)
Contributions by the employer 28 21 19 16
Changes in foreign exchange rates (2) — 8 —
Fair value at end of year 2,491 — 2,371 —
Funding surplus (deficit) 562 (370) 537 (343)
Less effect of the asset ceiling
Balance at beginning of year 390 — 99 —
Interest on asset ceiling 19 — 9 —
Change in asset ceiling (218) — 282 —
Balance at end of year 191 — 390 —
Net accrued retirement benefit asset (liability) $ 371 $ (370) $ 147 $ (343)

Represented by:
Pension assets (Note 15) $ 446 $ — $ 224 $ —
Accrued retirement benefit liability (75) (370) (77) (343)
Net accrued retirement benefit asset (liability) $ 371 $ (370) $ 147 $ (343)

A number of the plans have a surplus totalling $191 million at December 31, 2023 (2022 – $390 million), which is not
recognized on the basis that future economic benefits are not available to us in the form of a reduction in future contributions or
a cash refund.

52
24. Retirement Benefit Plans (continued)

We expect to contribute $6 million to our defined benefit pension plans in 2024 based on minimum funding requirements. The
weighted average duration of the defined benefit pension obligation is 13 years and the weighted average duration of the non-
pension post-retirement benefit obligation is 13 years.

Defined contribution expense for 2023 was $68 million (2022 – $61 million).

b) Significant Assumptions

The discount rate used to determine the defined benefit obligations and the net interest cost was determined by reference to the
market yields on high-quality debt instruments at the measurement date with durations similar to the duration of the expected
cash flows of the plans.

Weighted average assumptions used to calculate the defined benefit obligation at the end of each year are as follows:

December 31, 2023 December 31, 2022

Non-Pension Non-Pension
Defined Post- Defined Post-
Benefit Retirement Benefit Retirement
Pension Benefit Pension Benefit
Plans Plans Plans Plans
Discount rate 4.63 % 4.64 % 5.05 % 5.06 %
Rate of increase in future compensation 3.25 % 3.25 % 3.25 % 3.25 %
Medical trend rate — 5.00 % — 5.00 %

c) Sensitivity of the Defined Benefit Obligation to Changes in the Weighted Average Assumptions

2023
Effect on Defined Benefit Obligation
Change in Increase in Decrease in
Assumption Assumption Assumption
Discount rate 1.0 % Decrease by 11% Increase by 12%
Rate of increase in future compensation 1.0 % Increase by 1% Decrease by 1%
Medical cost claim trend rate 1.0 % Increase by 1% Decrease by 1%

2022
Effect on Defined Benefit Obligation
Change in Increase in Decrease in
Assumption Assumption Assumption
Discount rate 1.0 % Decrease by 10% Increase by 12%
Rate of increase in future compensation 1.0 % Increase by 1% Decrease by 1%
Medical cost claim trend rate 1.0 % Increase by 1% Decrease by 1%

The above sensitivity analyses are based on a change in each actuarial assumption while holding all other assumptions constant.
The sensitivity analyses on our defined benefit obligation are calculated using the same methods as those used for calculating
the defined benefit obligation recognized on our balance sheet. The methods and types of assumptions used in preparing the
sensitivity analyses did not change from the prior period.

53
24. Retirement Benefit Plans (continued)

d) Mortality Assumptions

Assumptions regarding future mortality are set based on management’s best estimate in accordance with published mortality
tables and expected experience. These assumptions translate into the following average life expectancies for an employee
retiring at age 65:

2023 2022
Male Female Male Female
Retiring at the end of the reporting period 85.4 years 87.7 years 85.3 years 87.7 years
Retiring 20 years after the end of the reporting period 86.4 years 88.7 years 86.3 years 88.6 years

e) Significant Risks

The defined benefit pension plans and post-retirement benefit plans expose us to a number of risks, the most significant of
which include asset volatility risk, changes in bond yields and any changes in life expectancy.

Asset volatility risk

The discount rate used to determine the defined benefit obligations is based on AA-rated corporate bond yields. If our plan
assets underperform this yield, the deficit will increase. Our strategic asset allocation includes a significant proportion of
equities that increases volatility in the value of our assets, particularly in the short term. We expect equities to outperform
corporate bonds in the long term.

Changes in bond yields

A decrease in bond yields increases plan liabilities, which are partially offset by an increase in the value of the plans’ bond
holdings.

Life expectancy

The majority of the plans’ obligations are to provide benefits for the life of the member. Increases in life expectancy will result
in an increase in the plans’ liabilities.

f) Investment of Plan Assets

The assets of our defined benefit pension plans are managed by external asset managers under the oversight of the Teck
Resources Limited Executive Pension Committee.

Our pension plan investment strategies support the objectives of each defined benefit plan and are related to each plan’s
demographics and timing of expected benefit payments to plan members. The objective for the plan asset portfolios is to
achieve annualized portfolio returns over five-year periods in excess of the annualized percentage change in the Consumer Price
Index plus a certain premium.

Strategic asset allocation policies have been developed for each defined benefit plan to achieve this objective. The policies also
reflect an asset/liability matching framework that seeks to reduce the effect of interest rate changes on each plan’s funded status
by matching the duration of the bond investments with the duration of the pension liabilities. We do not use derivatives to
manage interest rate risk. Asset allocation is monitored at least quarterly and rebalanced if the allocation to any asset class
exceeds its allowable allocation range. Portfolio and investment manager performance is monitored quarterly and the
investment guidelines for each plan are reviewed at least annually.

54
24. Retirement Benefit Plans (continued)

The defined benefit pension plan assets at December 31, 2023 and 2022 are as follows:

(CAD$ in millions) 2023 2022

Quoted Unquoted Total % Quoted Unquoted Total %
Equity securities $ 829 $ — 33 % $ 775 $ — 33 %
Debt securities $ 1,138 $ — 46 % $ 1,099 $ — 46 %
Real estate and other $ 69 $ 455 21 % $ 52 $ 445 21 %

25. Provisions and Other Liabilities

December 31, December 31,

(CAD$ in millions) 2023 2022
Decommissioning and restoration provisions and other provisions (a) $ 3,851 $ 2,805
Obligation to Neptune Bulk Terminals (b) 207 189
Derivative liabilities (net of current portion of $15 (2022 – $10)) 18 26
ENAMI preferential dividend liability (Note 12(a)) 444 286
QB2 variable consideration to IMSA (Note 12(a)) 115 114
Downstream pipeline take-or-pay toll commitment 270 —
Other liabilities 89 97
$ 4,994 $ 3,517

a) Decommissioning and Restoration Provisions and Other Provisions

The following table summarizes the movements in provisions for the year ended December 31, 2023:

Decommissioning and
(CAD$ in millions) Restoration Provisions Other Provisions Total
As at January 1, 2023 $ 2,820 $ 346 $ 3,166
Settled during the year (148) (87) (235)
Change in discount rate 325 — 325
Change in amount and timing of cash flows 715 31 746
Accretion 180 6 186
Additions due to formation of joint operation 44 — 44
Other (5) — (5)
Changes in foreign exchange rates (24) (5) (29)
As at December 31, 2023 3,907 291 4,198
Less current portion of provisions (Note 19) (301) (46) (347)
Non-current provisions $ 3,606 $ 245 $ 3,851

During the year ended December 31, 2023, we recorded $36 million (2022 – $43 million) of additional study and
environmental costs arising from legal obligations through other provisions.

55
25. Provisions and Other Liabilities (continued)

Decommissioning and Restoration Provisions

The decommissioning and restoration provisions represent the present value of estimated costs for required future
decommissioning and other site restoration activities. These activities include removal of site structures and infrastructure,
recontouring and revegetation of previously mined areas and the management of water and water quality in and around each
closed site. The majority of the decommissioning and site restoration expenditures occur near the end of, or after, the life of the
related operation.

After the end of the life of certain operations, water quality management costs may extend for periods in excess of 100 years.
Our provision for these expenditures was $990 million as at December 31, 2023 (2022 – $628 million), of which $515 million
(2022 – $277 million) relates to our steelmaking coal business unit.

For our steelmaking coal operations, the current and future requirements for water quality management are established under a
regional permit issued by the provincial government of British Columbia. This permit references the Elk Valley Water Quality
Plan (EVWQP). In October 2020, Environment and Climate Change Canada issued a Direction under the Fisheries Act (the
Direction) requiring us to undertake certain additional measures to address water quality and fish habitat impacts in the upper
Fording River and certain tributaries, and stipulating deadlines for implementation of certain measures contemplated by the
EVWQP. The Direction does not require construction of any additional water treatment facilities beyond those already
contemplated by the EVWQP, but sets out requirements with respect to water management such as diversions, mine planning,
fish monitoring and calcite prevention measures, as well as the installation by December 31, 2030, of a 200-hectare
geosynthetic cover trial in the Greenhills creek drainage. Certain of the measures in the Direction, including the cover trial, will
require incremental spending beyond that already associated with the EVWQP. The estimated costs of the Direction have been
included in our decommissioning and restoration provisions as at December 31, 2023 and 2022.

In 2023, the decommissioning and restoration provisions were calculated using nominal discount rates between 5.61% and
7.13% (2022 – 6.13% and 8.07%). We also used an inflation rate of 2.00% (2022 – 2.00%) over the long term in our cash flow
estimates. Total decommissioning and restoration provisions include $806 million (2022 – $736 million) in respect of closed
operations.

During the fourth quarter of 2023, our decommissioning and restoration provisions increased by $975 million compared to the
third quarter of 2023, of which $430 million related to a decrease in the discount rate and $545 million related to an increase in
reclamation cash flows. The increase in reclamation cash flows primarily related to changes in planned reclamation work and
updated cost estimates at our steelmaking coal operations, Highland Valley Copper and Antamina.

b) Obligation to Neptune Bulk Terminals

Through our cost of services agreement with Neptune Bulk Terminals (Canada) Ltd. (Neptune), we owe amounts to Neptune
for any loans entered into by Neptune that are specifically related to funding the assets of our steelmaking coal loading and
handling operations. The carrying value of this obligation approximates fair value based on prevailing market interest rates in
effect at December 31, 2023. This is considered a Level 2 fair value measurement with significant other observable inputs on
the fair value hierarchy (Note 32). The current portion of this obligation is recorded as part of trade accounts payable and other
liabilities.

c) British Columbia Output-Based Pricing System

In February of 2024, the Government of British Columbia announced that the newly designed B.C. Output-Based Pricing
System will replace the CleanBC Industrial Incentive Program on April 1, 2024. Management is currently assessing the effect
on our financial statements.

56
26. Equity

a) Authorized Share Capital

Our authorized share capital consists of an unlimited number of Class A common shares without par value, an unlimited
number of Class B subordinate voting shares without par value and an unlimited number of preferred shares without par value
issuable in series.

Class A common shares carry the right to 100 votes per share. Class B subordinate voting shares carry the right to one vote per
share. Each Class A common share is convertible, at the option of the holder, into one Class B subordinate voting share. In all
other respects, the Class A common shares and Class B subordinate voting shares rank equally.

The attributes of the Class B subordinate voting shares contain so-called “coattail provisions”, which provide that, in the event
that an offer (an “Exclusionary Offer”) to purchase Class A common shares, which is required to be made to all or substantially
all holders thereof, is not made concurrently with an offer to purchase Class B subordinate voting shares on identical terms,
then each Class B subordinate voting share will be convertible into one Class A common share at the option of the holder
during a certain period, provided that any Class A common shares received upon such conversion are deposited to the
Exclusionary Offer. Any Class B subordinate voting shares converted into Class A common shares pursuant to such conversion
right will automatically convert back to Class B subordinate voting shares in the event that any such shares are withdrawn from
the Exclusionary Offer or are not otherwise ultimately taken up and paid for under the Exclusionary Offer.

The Class B subordinate voting shares will not be convertible in the event that holders of a majority of the Class A common
shares (excluding those shares held by the offeror making the Exclusionary Offer) certify to Teck that they will not, among
other things, tender their Class A common shares to the Exclusionary Offer.

If an offer to purchase Class A common shares does not, under applicable securities legislation or the requirements of any stock
exchange having jurisdiction, constitute a “take-over bid” or is otherwise exempt from any requirement that such offer be made
to all or substantially all holders of Class A common shares, the coattail provisions will not apply.

b) Sunset of Dual Class Share Structure

On April 26, 2023, Teck’s shareholders approved a six-year sunset for the multiple voting rights attached to the Class A
common shares of Teck (the Dual Class Amendment). On May 12, 2023, each Teck Class A common share was acquired by
Teck in exchange for (i) one new Class A common share and (ii) 0.67 of a Class B subordinate voting share recognized as a
$302 million increase to Class B shares and reduction to retained earnings. The terms of the new Class A common shares are
identical to the previous terms of Class A common shares, except that on May 12, 2029, the new Class A common shares will
automatically convert into Class B subordinate voting shares, which will then be renamed common shares, on a one-for-one
basis, and for no additional consideration or premium.

c) Class A Common Shares and Class B Subordinate Voting Shares Issued and Outstanding

Class B
Class A Subordinate
Common Voting
Shares (in 000’s) Shares Shares
As at January 1, 2022 7,765 526,448
Shares issued on options exercised (d) — 10,209
Acquired and cancelled pursuant to normal course issuer bid (i) — (30,703)
As at December 31, 2022 7,765 505,954
Class A common shares conversion (110) 110
Shares issued on dual class amendment (b) — 5,203
Shares issued on options exercised (d) — 3,139
Acquired and cancelled pursuant to normal course issuer bid (i) — (4,738)
As at December 31, 2023 7,655 509,668

57
26. Equity (continued)

d) Share Options

The maximum number of Class B subordinate voting shares issuable to full-time employees pursuant to options granted under
our current stock option plan is 46 million. As at December 31, 2023, 9,566,369 share options remain available for grant. The
exercise price for each option is the closing price for our Class B subordinate voting shares on the last trading day before the
date of grant. Our share options are settled through the issuance of Class B subordinate voting shares.

During the year ended December 31, 2023, we granted 1,383,085 share options to employees. These share options have a
weighted average exercise price of $54.66, vest in equal amounts over three years and have a term of ten years.

The weighted average fair value of share options granted in the year was estimated at $22.69 per option (2022 – $17.13) at the
grant date based on the Black-Scholes option-pricing model using the following assumptions:

2023 2022
Weighted average exercise price $ 54.66 $ 45.51
Dividend yield 0.92 % 1.10 %
Risk-free interest rate 3.52 % 1.50 %
Expected option life 5.9 years 6.1 years
Expected volatility 42 % 41 %
Forfeiture rate 1.93 % 1.43 %

The expected volatility is based on a statistical analysis of historical daily share prices over a period equal to the expected
option life.

Outstanding share options are as follows:

2023 2022
Share Weighted Share Weighted
Options Average Options Average
(in 000’s) Exercise Price (in 000’s) Exercise Price
Outstanding at beginning of year 15,057 $ 22.38 23,680 $ 21.12
Granted 1,383 54.66 1,729 45.51
Exercised (3,117) 20.07 (10,117) 23.16
Forfeited (252) 44.32 (216) 32.26
Expired (4) 26.70 (19) 26.75
Outstanding at end of year 13,067 $ 25.92 15,057 $ 22.38
Vested and exercisable at end of year 10,018 $ 20.04 9,854 $ 19.04

The average share price during the year was $54.46 (2022 – $45.75).

Information relating to share options outstanding at December 31, 2023, is as follows:

Exercise Weighted Average Remaining Life

Outstanding Share Options (in 000’s) Price Range of Outstanding Options (months)
1,787 $5.34 – $13.57 25
2,571 $13.58 – $17.14 66
3,020 $17.15 – $28.05 29
2,997 $28.06 – $39.89 67
2,692 $39.90 – $63.11 100
13,067 $5.34 – $63.11 59

Total share option compensation expense recognized for the year was $26 million (2022 – $26 million).

58
26. Equity (continued)

e) Deferred Share Units, Restricted Share Units, Performance Share Units and Performance Deferred Share Units

We have issued and outstanding deferred share units (DSUs), restricted share units (RSUs), performance share units (PSUs) and
performance deferred share units (PDSUs) (collectively, Units).

As of 2017, DSUs are granted to directors only. RSUs may be granted to both employees and directors. PSUs and PDSUs are
granted to certain officers only. DSUs entitle the holder to a cash payment equal to the closing price of one Class B subordinate
voting share on the Toronto Stock Exchange on the day prior to redemption. RSUs entitle the holder to a cash payment equal to
the weighted average trading price of one Class B subordinate voting share on the Toronto Stock Exchange over 20 consecutive
trading days prior to the payout date. PSUs and PDSUs vest subject to a performance metric ranging from 0% to 200% based
on corporate performance against grant-specific performance criteria. As defined in our grant agreements, the performance
metric for PSUs and PDSUs issued from 2017 to 2021 was based on both relative total shareholder return as compared to our
compensation peer group and a calculation based on the change in EBITDA over the vesting period divided by the change in a
weighted commodity price index. The performance metrics for PSUs and PDSUs issued in 2022 and later is based on a
balanced scorecard, with 20% related to each of relative shareholder return as compared to our compensation peer group,
change in five-year average return on capital employed for operating assets, operational production and cost performance as
against the annual budget, strategic execution, and performance measured against a sustainability progress index. Once vested,
PSUs and PDSUs entitle the holder to a cash payment equal to the weighted average trading price of one Class B subordinate
voting share on the Toronto Stock Exchange over 20 consecutive trading days prior to the payout date. Officers can elect to
receive up to 50% of their Units as PDSUs, which pay out following termination of employment as described below.

PSUs and PDSUs vest on March 1 of the third year following the grant date. RSUs vest on various dates depending on the grant
date. DSUs granted to directors vest immediately. Units vest on a pro rata basis if employees retire or are terminated without
cause and unvested units are forfeited if employees resign or are terminated with cause.

DSUs and PDSUs may be redeemed on or before December 15 of the first calendar year commencing after the date on which
the participant ceases to be a director or employee, as applicable. RSUs and PSUs pay out on the vesting date.

Additional Units are issued to Unit holders to reflect dividends paid and other adjustments to Class B subordinate voting shares.

In 2023, we recognized compensation expense of $81 million for Units (2022 – $210 million). The total liability and intrinsic
value for vested Units as at December 31, 2023 was $171 million (2022 – $230 million).

In 2023, we recognized total share-based compensation expense of $107 million (2022 – $236 million) in other operating
income (expense) (Note 10).

The outstanding Units are summarized in the following table:

(in 000’s) 2023 2022

Outstanding Vested Outstanding Vested
DSUs 1,837 1,837 2,129 2,129
RSUs 1,336 — 2,203 —
PSUs 656 — 1,072 —
PDSUs 253 219 227 177
4,082 2,056 5,631 2,306

59
26. Equity (continued)

f) Accumulated Other Comprehensive Income

(CAD$ in millions) 2023 2022

Accumulated other comprehensive income – beginning of year $ 1,062 $ 202
Currency translation differences:
Unrealized gain (loss) on translation of foreign subsidiaries (421) 822
Foreign exchange differences on debt designated as a hedge of our
investment in foreign subsidiaries (net of taxes of $(9) and $9) (Note 31(b)) 56 (56)
(365) 766
Gain (loss) on marketable equity and debt securities (net of taxes of $1 and $(14)) (4) 93
Share of other comprehensive income of joint venture — 1
Remeasurements of retirement benefit plans (net of taxes of $(68) and $13) 151 (45)
Total other comprehensive income (loss) (218) 815
Less remeasurements of retirement benefit plans recorded in retained earnings (151) 45
Accumulated other comprehensive income – end of year $ 693 $ 1,062

g) Earnings (Loss) Per Share

The following table reconciles our basic and diluted earnings (loss) per share:

(CAD$ in millions, except per share data) 2023 2022

Net basic and diluted profit from continuing operations $ 2,334 $ 4,070
Net basic and diluted loss attributable to non-controlling interest (101) (19)
Net basic and diluted profit attributable to shareholders of the company from
continuing operations 2,435 4,089
Net basic and diluted loss attributable to shareholders of the company from
discontinued operations (26) (772)
Total basic and diluted profit attributable to shareholders of the company $ 2,409 $ 3,317

Weighted average shares outstanding (000’s) 517,828 526,718

Dilutive effect of share options 7,516 9,136
Weighted average diluted shares outstanding (000’s) 525,344 535,854
Earnings per share from continuing operations
Basic $ 4.70 $ 7.77
Diluted $ 4.64 $ 7.63
Loss per share from discontinued operations
Basic and diluted $ (0.05) $ (1.47)
Earnings per share
Basic earnings per share $ 4.65 $ 6.30
Diluted earnings per share $ 4.59 $ 6.19

At December 31, 2023, 1,321,427 (2022 – 1,635,225) potentially dilutive shares were not included in the diluted earnings per
share calculation because their effect was anti-dilutive.

For the year ended December 31, 2023 and December 31, 2022, there was a net loss attributable to discontinued operations.
Accordingly, for net loss attributable to discontinued operations, all share options would be considered anti-dilutive and have
been excluded from the calculation of diluted loss per share. The weighted average shares outstanding and weighted average
diluted shares outstanding are therefore the same for discontinued operations.

60
26. Equity (continued)

h) Dividends

Dividends of $0.625 per share were paid on our Class A common and Class B subordinate voting shares in the first quarter of
2023, totalling $321 million (2022 – $337 million). We declared and paid dividends on our Class A common and Class B
subordinate voting shares of $0.125 per share in each of the second, third and fourth quarters of 2023 and 2022 respectively.
During the year ended December 31, 2023, we declared and paid a total of $515 million of dividends (2022 – $532 million).

i) Normal Course Issuer Bid

On occasion, we purchase and cancel Class B subordinate voting shares pursuant to normal course issuer bids that allow us to
purchase up to a specified maximum number of shares over a one-year period.

In November 2023, we renewed our regulatory approval to conduct a normal course issuer bid, under which we may purchase
up to 40 million Class B subordinate voting shares during the period from November 22, 2023 to November 21, 2024. All
purchased shares will be cancelled. In 2023, we purchased and cancelled 4,737,561 Class B subordinate voting shares for $250
million. In 2022, we purchased and cancelled 30,703,473 Class B subordinate voting shares for $1.4 billion.

61
27. Non-Controlling Interests

Set out below is information about our subsidiaries with non-controlling interests and the non-controlling interest balances
included in equity.

Percentage of Ownership
Principal Place of Interest and Voting Rights Held December 31, December 31,
(CAD$ in millions) Business by Non-Controlling Interest 2023 2022
Quebrada Blanca (a) Region I, Chile 40 % $ 1,104 $ 874
Carmen de Andacollo Region IV, Chile 10 % 18 26
Elkview Mine Limited British Columbia,
Partnership Canada 5% 126 87
Compañía Minera Arequipa Region,
Zafranal S.A.C. Peru 20 % 56 51
$ 1,304 $ 1,038

a) Quebrada Blanca

The non-controlling interest in QBSA, the entity that owns QB2, consists of SMM/SC, who subscribed for a 30% indirect
interest in QBSA in 2019, and ENAMI, a Chilean state-owned agency that holds a 10% preference share interest. ENAMI’s
interest in QBSA does not require ENAMI to make contributions toward QBSA’s capital spending.

The following is the summarized financial information for Quebrada Blanca before intra-group eliminations. Quebrada Blanca
has non-controlling interests that are considered material to our consolidated financial statements.

(CAD$ in millions) December 31, 2023 December 31, 2022

Summarized balance sheet
Current assets $ 1,025 $ 442
Current liabilities 1,576 1,946
Current net assets (551) (1,504)

Non-current assets 20,639 17,197

Non-current liabilities 14,378 10,647
Non-current net assets 6,261 6,550
Net assets $ 5,710 $ 5,046

Accumulated non-controlling interests $ 1,104 $ 874

Summarized statement of comprehensive income (loss)

Revenue $ 595 $ 105
Loss for the period (465) (257)
Other comprehensive income (loss) (76) 206
Total comprehensive loss $ (541) $ (51)

Loss allocated to non-controlling interests $ (188) $ (95)

Summarized cash flows

Cash flows used in operating activities $ (2,749) $ (1,579)
Cash flows used in investing activities (3,203) (3,304)
Cash flows provided by financing activities 5,994 4,918
Effect of exchange rates on cash and cash equivalents (4) 7
Increase in cash and cash equivalents $ 38 $ 42

62
28. Contingencies

We consider provisions for all of our outstanding and pending legal claims to be adequate. The final outcome with respect to
actions outstanding or pending as at December 31, 2023, or with respect to future claims, cannot be predicted with certainty.
Significant contingencies not disclosed elsewhere in the notes to our financial statements are as follows:

Upper Columbia River Basin

Teck American Inc. (TAI) continues studies under the 2006 settlement agreement with the U.S. Environmental Protection
Agency (EPA) to conduct a remedial investigation on the Upper Columbia River in Washington State.

The Lake Roosevelt litigation involving Teck Metals Limited (TML) by the State of Washington and the Confederated Tribes
of the Coleville Reservation (CCT) in the Federal District Court for the Eastern District of Washington continues. The case
relates to historic discharges of slag and effluent from TML’s Trail metallurgical facility to the Upper Columbia River. TML
prevailed against the plaintiffs on citizen suit claims, seeking injunctive relief, statutory penalties and attorney’s fees. In
December 2012 on the basis of stipulated facts agreed between TML and the plaintiffs, the Court found in favour of the
plaintiffs in phase one of the case, issuing a declaratory judgment that TML is liable under the Comprehensive Environmental
Response, Compensation, and Liability Act (CERCLA) for the plaintiffs’ response costs, the amounts of which were determined
in the second phase of the case. Additional response costs not yet claimed may be recoverable. The third and final phase of the
case pertains to the plaintiffs’ claims for natural resource damages.

In the second quarter of 2022, TML filed two early motions for summary judgment in respect of the CERCLA natural resource
damages claims, which were denied in the third quarter of 2022. Based on one of those rulings, in the first quarter of 2023,
TML subsequently filed a motion seeking a ruling that the CERCLA claims are not fully developed and they should therefore
be dismissed. The motion was denied, but not decided on the merits, and TML sought reconsideration, which was denied by the
Court in June 2023. TML filed a motion seeking certification for an interlocutory appeal to the 9th Circuit Court of Appeals,
which was denied.

In October 2023, TML filed a motion for partial summary judgment on CCT’s tribal service loss claim. This claim comprises
the entirety of CCT’s outstanding individual claims against TML. On February 6, 2024, the court granted TML’s motion and
dismissed CCT’s claim on the basis that tribal service loss claims are not cognizable as natural resource damages claims under
CERCLA.

The previously scheduled February 2024 trial with respect to natural resource damages and assessment costs has been
postponed and a new trial date has not yet been scheduled.

Until the studies contemplated by the EPA settlement agreement and additional damage assessments are completed, it is not
possible to estimate the extent and cost, if any, of any additional remediation or restoration that may be required or to assess the
extent of Teck’s potential liability for damages. The studies may conclude, on the basis of risk, cost, technical feasibility or
other grounds, that no remediation other than some residential soil removal should be undertaken. If other remediation is
required and damage to resources found, the cost of that remediation may be material.

Elk Valley Water Quality

On March 10, 2023, Environment and Climate Change Canada (ECCC) notified Teck Coal Limited (TCL) that it had
commenced an investigation for alleged violations under s.36(3) of the Fisheries Act as a result of alleged mine-impacted
discharges into Dry Creek and the upper Fording River from the Line Creek Operations. TCL is cooperating with ECCC in its
investigation. We are not currently able to determine the outcome of the investigation, which could lead to charges, fines and
administrative penalties that could be material.

Elkview Business Interruption Claim

In the fourth quarter of 2022, we submitted a business interruption insurance claim related to the structural failure of the
Elkview plant feed conveyor belt. No amount was recognized in the consolidated financial statements for the insurance claim as
of December 31, 2022, as the claims process was in progress. During 2023, we received insurance proceeds of $221 million and
the gain was recorded in other operating income (expense) (Note 10).

63
29. Commitments

a) Capital Commitments

As at December 31, 2023, we had contracted for $949 million of capital expenditures that have not yet been incurred for the
purchase and construction of property, plant and equipment. This amount includes $534 million for QB2, $198 million for our
steelmaking coal operations and $216 million for our 22.5% share of Antamina. The amount includes $832 million that is
expected to be incurred within one year and $117 million within two to five years.

b) Red Dog Royalty

In accordance with the operating agreement governing the Red Dog mine, TAK pays a royalty to NANA Regional Corporation,
Inc. (NANA) on the net proceeds of production. A 25% royalty became payable in the third quarter of 2007 after we had
recovered cumulative advance royalties previously paid to NANA. The net proceeds of production royalty rate will increase by
5% every fifth year to a maximum of 50%. The increase to 40% of net proceeds of production occurred in the fourth quarter of
2022. An expense of $262 million was recorded in 2023 (2022 – $461 million) in respect of this royalty. The NANA royalty is
expected to increase by another 5% to 45% in the fourth quarter of 2027.

c) Antamina Royalty

Our interest in the Antamina mine is subject to a net profits royalty equivalent to 7.4% of our share of the mine’s free cash flow.
An expense of $23 million was recorded in 2023 (2022 – $34 million) in respect of this royalty.

d) Purchase Commitments

We have a number of forward purchase commitments for the purchase of concentrates and other process inputs and for shipping
and distribution of products, which are incurred in the normal course of business. The majority of these contracts are subject to
force majeure provisions.

We have contractual arrangements for the purchase of power for Quebrada Blanca. These contracts are effective from a range
of dates occurring between 2016 and 2025. These agreements supply power until 2042 and require payments of approximately
US$248 million per year.

In 2020, we entered into a 14-year contractual arrangement to purchase power for Carmen de Andacollo. This arrangement
requires payments of approximately US$46 million per year.

In 2018, we entered into a 20-year contractual arrangement to purchase power for our Trail Operations, with an option to extend
for a further 10 years. This arrangement requires payments of approximately $75 million per year, escalating at 2% per year.

64
30. Segmented Information

Based on the primary products we produce and our development projects, we have four reportable segments that we report to
our President and Chief Executive Officer – copper, zinc, steelmaking coal and corporate. The corporate segment includes all of
our initiatives in other commodities, our corporate growth activities and groups that provide administrative, technical, financial
and other support to all of our business units. Other operating income (expenses) include general and administration,
exploration, research and innovation and other operating income (expense). Sales between segments are carried out on terms
that arm’s-length parties would use. Total assets do not include intra-group receivables between segments. Deferred tax assets
have been allocated among segments.

As a result of the sale of our 21.3% interest in Fort Hills and associated downstream assets, we no longer present the energy
segment related to Fort Hills in the tables below. The segmented information related to Fort Hills is disclosed as part of Note 5,
Assets Held for Sale and Discontinued Operations.

2023
Steelmaking
(CAD$ in millions) Copper Zinc Coal Corporate Total
Revenue (Note 7(a)) $ 3,425 $ 3,051 $ 8,535 $ — $ 15,011
Cost of sales (2,713) (2,651) (4,504) — (9,868)
Gross profit 712 400 4,031 — 5,143
Other operating income (expense) 56 (86) 201 (944) (773)
Profit (loss) from operations 768 314 4,232 (944) 4,370
Net finance income (expense) (575) (52) (111) 576 (162)
Non-operating income (expense) (190) — (17) (59) (266)
Share of profit of joint venture 2 — — — 2
Profit (loss) before taxes from continuing
operations 5 262 4,104 (427) 3,944

Capital expenditures from continuing

operations 4,018 298 1,442 24 5,782
December 31, 2023
Goodwill (Note 18) 406 — 702 — 1,108
Total assets $ 28,636 $ 4,581 $ 19,364 $ 3,612 $ 56,193

65
30. Segmented Information (continued)

2022
Steelmaking
(CAD$ in millions) Copper Zinc Coal Corporate Total
Revenue (Note 7(a)) $ 3,381 $ 3,526 $ 10,409 $ — $ 17,316
Cost of sales (1,982) (2,755) (4,008) — (8,745)
Gross profit 1,399 771 6,401 — 8,571
Other operating income (expense) (367) (55) (398) (765) (1,585)
Profit (loss) from operations 1,032 716 6,003 (765) 6,986
Net finance income (expense) (248) (38) (86) 222 (150)
Non-operating income (expense) (185) 9 35 (134) (275)
Share of profit of joint venture 4 — — — 4
Profit (loss) before taxes from continuing 603 687 5,952 (677) 6,565
operations

Capital expenditures from continuing

operations 3,910 370 1,167 18 5,465
December 31, 2022
Goodwill (Note 18) 416 — 702 — 1,118
Total assets from continuing operations $ 23,801 $ 4,523 $ 18,070 $ 4,663 $ 51,057
Total assets from discontinued operations –
Unallocated — — — — 1,302
Total assets $ 23,801 $ 4,523 $ 18,070 $ 4,663 $ 52,359

The geographical distribution of all our non-current assets in 2023, and for our non-current assets that were not classified as
held for sale in 2022, other than financial instruments, deferred tax assets and post-employment benefit assets, is as follows:

December 31, December 31,

(CAD$ in millions) 2023 2022
Canada $ 21,678 $ 20,104
Chile 22,400 19,206
United States 2,202 1,787
Peru 2,050 1,845
Mexico 165 —
Other 36 34
$ 48,531 $ 42,976

66
31. Financial Instruments and Financial Risk Management

a) Financial Risk Management

Our activities expose us to a variety of financial risks, which include foreign exchange risk, liquidity risk, interest rate risk,
commodity price risk, credit risk and other risks associated with capital markets. From time to time, we may use foreign
exchange, commodity price and interest rate contracts to manage exposure to fluctuations in these variables. Our use of
derivatives is based on established practices and parameters to mitigate risk and is subject to the oversight of our Financial Risk
Management Committee and our Board of Directors.

Foreign Exchange Risk

We operate on an international basis, and therefore, foreign exchange risk exposures arise from transactions denominated in a
currency other than the functional currency of the legal entity. Our foreign exchange risk arises primarily with respect to the
U.S. dollar, Chilean peso and Peruvian sol. Our cash flows from Canadian, Chilean and Peruvian operations are exposed to
foreign exchange risk, as commodity sales are denominated in U.S. dollars and a substantial portion of operating expenses is
denominated in local currencies.

We also have various investments in U.S. dollar functional currency subsidiaries, whose net assets are exposed to foreign
currency translation risk. This currency exposure is managed in part through our U.S. dollar denominated debt as a hedge
against these net investments.

U.S. dollar financial instruments subject to foreign exchange risk consist of U.S. dollar denominated items held in Canada and
are summarized below.

December 31, December 31,

(US$ in millions) 2023 2022
Cash and cash equivalents $ 59 $ 634
Trade and settlement receivables 1,145 629
Trade accounts payable and other liabilities (743) (570)
Debt (Note 20) (2,470) (2,585)
Reduced by: Debt designated as a hedging instrument in our net investment hedge 2,334 1,686
Net U.S. dollar exposure $ 325 $ (206)

As at December 31, 2023, with other variables unchanged, a $0.10 strengthening of the Canadian dollar against the U.S. dollar
would result in a $33 million pre-tax loss (2022 – $26 million pre-tax gain) from our financial instruments. There would also be
a $1.1 billion pre-tax loss (2022 – $946 million) in other comprehensive income from the translation of our foreign operations.
The inverse effect would result if the Canadian dollar weakened by $0.10 against the U.S. dollar.

67
31. Financial Instruments and Financial Risk Management (continued)

Liquidity Risk

Liquidity risk arises from our general and capital funding requirements. We have planning, budgeting and forecasting processes
to help determine our funding requirements to meet various contractual and other obligations. Note 20(e) details our available
credit facilities as at December 31, 2023.

Contractual undiscounted cash flow requirements for financial liabilities as at December 31, 2023 are as follows:

Less Than 2–3 4–5 More Than

(CAD$ in millions) 1 Year Years Years 5 Years Total
Trade accounts payable and other
financial liabilities $ 3,497 $ — $ — $ — $ 3,497
Debt (Note 20(f)) 515 1,076 778 4,240 6,609
Lease liabilities 197 261 186 1,107 1,751
Obligation to Neptune Bulk Terminals — 31 30 143 204
ENAMI preferential dividend liability — — — 606 606
QB2 advances from SMM/SC — — — 3,520 3,520
QB2 variable consideration to IMSA — 132 — — 132
Other liabilities — 104 11 13 128
Estimated interest payments on debt 394 614 452 1,828 3,288
Estimated interest payments on QB2 advances
from SMM/SC — — — 2,039 2,039
Estimated interest payments on lease and other
liabilities 18 26 19 81 144
Downstream pipeline take-or-pay toll
commitment 29 60 65 254 408

Interest Rate Risk

Our interest rate risk arises in respect of our holdings of cash, cash equivalents, floating rate debt and advances from SMM/SC.
Our interest rate management policy is to borrow at both fixed and floating rates to offset financial risks.

Cash and cash equivalents have short terms to maturity and receive interest based on market interest rates.

A 1% increase in the short-term interest rate at the beginning of the year, with other variables unchanged, would have resulted
in a $50 million pre-tax decrease in our profit (2022 – $29 million pre-tax decrease), not considering applicable capitalization of
interest expense. There would be no effect on other comprehensive income.

Commodity Price Risk

We are subject to price risk from fluctuations in market prices of the commodities that we produce. From time to time, we may
use commodity price contracts to manage our exposure to fluctuations in commodity prices and to avoid mismatches in pricing
reference periods. At the balance sheet date, we had zinc, lead and copper derivative contracts outstanding as described in (b)
below.

Our commodity price risk associated with financial instruments primarily relates to changes in fair value caused by final
settlement pricing adjustments to receivables and payables, derivative contracts for zinc, lead, copper and embedded derivatives
in our TAK road and port contract, in the ongoing payments under our silver stream and gold stream arrangements and in the
QB2 variable consideration to IMSA.

68
31. Financial Instruments and Financial Risk Management (continued)

The following represents the effect on profit attributable to shareholders from a 10% change in commodity prices, with other
variables unchanged, based on outstanding receivables and payables subject to final pricing adjustments at December 31, 2023
and December 31, 2022. There is no effect on other comprehensive income.

Change in Profit
Price on December 31, Attributable to Shareholders
(CAD$ in millions) 2023 2022 2023 2022
Copper US$3.87/lb. US$3.80/lb. $ 37 $ 52
Zinc US$1.20/lb. US$1.35/lb. $ (1) $ 9
Steelmaking coal US$264/tonne US$257/tonne $ 11 $ 9

A 10% change in the price of copper, zinc, lead, silver and gold, with other variables unchanged, would change our net asset
position of derivatives and embedded derivatives, excluding receivables and payables subject to final pricing adjustments, and
would result in a change of our pre-tax profit attributable to shareholders by $34 million (2022 – $35 million). There would be
no effect on other comprehensive income.

Credit Risk

Credit risk arises from cash, cash equivalents, derivative contracts, debt securities and trade receivables. While we are exposed
to credit losses due to the non-performance of our counterparties, there are no significant concentrations of credit risk and we
do not consider this to be a material risk.

Our primary counterparties related to our cash, cash equivalents, derivative contracts and debt securities carry investment grade
ratings as assessed by external rating agencies, which are monitored on an ongoing basis. All of our commercial customers are
assessed for credit quality at least once a year or more frequently if business- or customer-specific conditions change based on
an extensive credit rating scorecard developed internally using key credit metrics and measurements that were adapted from
S&P’s and Moody’s rating methodologies. Sales to customers that do not meet the credit quality criteria are secured either by a
parental guarantee, a letter of credit or prepayment.

For our trade receivables, we apply the simplified approach for determining expected credit losses, which requires us to
determine the lifetime expected losses for all our trade receivables. The expected lifetime credit loss provision for our trade
receivables is based on historical counterparty default rates and adjusted for relevant forward-looking information, as required.
Since the majority of our customers are considered to have low default risk and our historical default rate and frequency of
losses are low, the lifetime expected credit loss allowance for trade receivables is nominal as at December 31, 2023.

Our investments in debt securities carried at fair value through other comprehensive income (loss) are considered to have low
credit risk, as our counterparties have investment grade credit ratings. The credit risk of our investments in debt securities has
not increased significantly since initial recognition of these investments and accordingly, the loss allowance for investments in
debt securities is determined based on the 12-month expected credit losses. The 12-month expected credit loss allowance is
based on historical and forward-looking default rates for investment grade entities, which are low and, accordingly, the 12-
month expected credit loss allowance for our investments in debt securities is nominal as at December 31, 2023.

Cash and cash equivalents are held with high quality financial institutions. Substantially all of our cash and cash equivalents
held with financial institutions exceeds government-insured limits. We have established credit policies that seek to minimize
our credit risk by entering into transactions with investment grade creditworthy and reputable financial institutions and by
monitoring the credit standing of the financial institutions with whom we transact. We seek to limit the amount of exposure
with any one counterparty.

69
31. Financial Instruments and Financial Risk Management (continued)

b) Derivative Financial Instruments, Embedded Derivatives and Hedges

Sale and Purchase Contracts

We record adjustments to our settlement receivables and payables for provisionally priced sales and purchases, respectively, in
periods up to the date of final pricing based on movements in quoted market prices or published price assessments for
steelmaking coal. These arrangements are based on the market price of the commodity and the value of our settlement
receivables and payables will vary, as prices for the underlying commodities vary in the metal markets. These final pricing
adjustments result in gains (losses from purchases) in a rising price environment and losses (gains from purchases) in a
declining price environment and are recorded in other operating income (expense).

The table below outlines our outstanding settlement receivables and payables, which were provisionally valued at December 31,
2023 and December 31, 2022.

Outstanding at December 31, Outstanding at December 31,

2023 2022
Volume Price Volume Price
Receivable positions
Copper (pounds in millions) 127 US$3.87/lb. 168 US$3.80/lb.
Zinc (pounds in millions) 167 US$1.20/lb. 218 US$1.35/lb.
Lead (pounds in millions) 17 US$0.94/lb. 17 US$1.05/lb.
Steelmaking coal (tonnes in thousands) 504 US$264/tonne 388 US$257/tonne
Payable positions
Zinc payable (pounds in millions) 121 US$1.20/lb. 75 US$1.35/lb.
Lead payable (pounds in millions) 15 US$0.94/lb. 18 US$1.05/lb.

At December 31, 2023, total outstanding settlement receivables were $1.3 billion (2022 – $1.1 billion) and total outstanding
settlement payables were $36 million (2022 – $45 million) (Note 19). These amounts are included in trade and settlement
receivables and in trade accounts payable and other liabilities, respectively, on the consolidated balance sheets.

Zinc, Lead and Copper Swaps

Due to ice conditions, the port serving our Red Dog mine is normally only able to ship concentrates from July to October each
year. As a result, zinc and lead concentrate sales volumes are generally higher in the third and fourth quarters of each year than
in the first and second quarters. During 2023 and 2022, we purchased and sold zinc and lead swaps to match our economic
exposure to the average zinc and lead prices over our shipping year, which is from July of one year to June of the following
year.

All zinc, lead and copper swaps derivative contracts mature in 2024. These contracts are not designated as hedging instruments
and are recorded at fair value in prepaids and other current assets on our consolidated balance sheet.

The fair value of our commodity swaps is calculated using a discounted cash flow method based on forward metal prices. A
summary of these derivative contracts and related fair values as at December 31, 2023 is as follows:

Average Price Average Price Fair Value

Derivatives not designated as of Purchase of Sale Asset (Liability)
hedging instruments Quantity Commitments Commitments (CAD$ in millions)
Zinc swaps 209 million lbs. US$1.19/lb. US$1.21/lb. $ 18
Lead swaps 64 million lbs. US$0.94/lb. US$0.96/lb. $ (3)
Copper swaps 18 million lbs. US$3.85/lb. US$3.81/lb. $ (1)
$ 14

70
31. Financial Instruments and Financial Risk Management (continued)

Derivatives Not Designated as Hedging Instruments and Embedded Derivatives

Amount of Gain (Loss)

Recognized in Other
Operating Income (Expense)
and Non-Operating Income
(CAD$ in millions) (Expense)
2023 2022
Zinc swaps $ (23) $ 15
Lead swaps (9) 3
Copper swaps (1) —
Settlement receivables and payables (Note 10) 39 (371)
Contingent zinc escalation payment embedded derivative 5 27
Gold stream embedded derivative 12 (8)
Silver stream embedded derivative 4 (2)
QB2 variable consideration to IMSA (Note 12(a)) (4) (5)
$ 23 $ (341)

Embedded Derivatives

The TAK road and port contract contains a contingent zinc escalation payment that is considered to be an embedded derivative.
The fair value of this embedded derivative was $30 million at December 31, 2023 (2022 – $36 million), of which $7 million
(2022 – $9 million) is included in trade accounts payables and other liabilities and the remaining $23 million (2022 –
$27 million) is included in provisions and other liabilities.

The gold stream and silver stream agreements each contain an embedded derivative in the ongoing future payments due to us.
The gold stream’s 15% ongoing payment contains an embedded derivative relating to the monthly average gold price at the
time of each delivery. The fair value of this embedded derivative was $48 million at December 31, 2023 (2022 – $37 million),
of which $4 million (2022 – $3 million) is included in prepaids and other current assets and the remaining $44 million (2022 –
$34 million) is included in financial and other assets. The silver stream’s 5% ongoing payment contains an embedded derivative
relating to the spot silver price at the time of delivery. The fair value of this embedded derivative was $26 million at
December 31, 2023 (2022 – $24 million), of which $1 million (2022 – $2 million) is included in prepaids and other current
assets and the remaining $25 million (2022 – $22 million) is included in financial and other assets.

Accounting Hedges

Net investment hedge

We manage the foreign currency translation risk of our various investments in U.S. dollar functional currency subsidiaries in
part through the designation of our U.S. dollar denominated debt as a hedge against these net investments. We designate the
spot element of the U.S. dollar debt as the hedging instrument. As only the spot rate element of the debt is designated in the
hedging relationship, no ineffectiveness is expected and no ineffectiveness was recognized in profit for the years ended
December 31, 2023 and 2022. The hedged foreign currency risk component is the change in the carrying amount of the net
assets of the U.S. dollar functional currency subsidiaries arising from spot U.S. dollar to Canadian dollar exchange rate
movements. At December 31, 2023, US$2.3 billion of our debt (2022 – US$1.7 billion) and U.S. dollar investment in foreign
operations were designated in a net investment hedging relationship. During the year ended December 31, 2023, $65 million
(2022 – $65 million) of foreign exchange translation on our U.S. dollar investment in foreign operations was hedged by an
offsetting amount of foreign exchange translation on our U.S. dollar denominated debt. Refer to Note 26(f) for the effect of our
net investment hedges on other comprehensive income.

71
32. Fair Value Measurements

Certain of our financial assets and liabilities are measured at fair value on a recurring basis and classified in their entirety based
on the lowest level of input that is significant to the fair value measurement. Certain non-financial assets and liabilities may also
be measured at fair value on a non-recurring basis and classified in their entirety based on the lowest level of input that is
significant to the fair value measurement. There are three levels of the fair value hierarchy that prioritize the inputs to valuation
techniques used to measure fair value, with Level 1 inputs having the highest priority. The levels and the valuation techniques
used to value our financial assets and liabilities are described below:

Level 1 – Quoted Prices in Active Markets for Identical Assets

Level 1 inputs are unadjusted quoted prices in active markets that are accessible at the measurement date for identical,
unrestricted assets or liabilities.

Certain cash equivalents, certain marketable equity securities and certain debt securities are valued using quoted market prices
in active markets. Accordingly, these items are included in Level 1 of the fair value hierarchy.

Level 2 – Significant Observable Inputs Other than Quoted Prices

Level 2 inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, or
inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability.

Derivative instruments and embedded derivatives are included in Level 2 of the fair value hierarchy, as they are valued using
pricing models or discounted cash flow models. These models require a variety of inputs, including, but not limited to, market
prices, forward price curves, yield curves and credit spreads. These inputs are obtained from or corroborated with the market.
Also included in Level 2 are settlement receivables and settlement payables from provisional pricing on concentrate sales and
purchases, certain refined metal sales and steelmaking coal sales because they are valued using quoted market prices derived
based on forward curves for the respective commodities and published price assessments for steelmaking coal sales.

Level 3 – Significant Unobservable Inputs

Level 3 inputs are unobservable (supported by little or no market activity).

We include investments in certain equity securities in non-public companies in Level 3 of the fair value hierarchy because they
trade infrequently and have little price transparency.

The fair values of our financial assets and liabilities measured at fair value on a recurring basis at December 31, 2023 and 2022,
are summarized in the following table:

(CAD$ in millions) 2023 2022

Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Financial assets
Cash equivalents $ 345 $ — $ — $ 345 $ 1,624 $ — $ — $ 1,624
Marketable and other equity
securities 79 — 150 229 69 — 150 219
Debt securities 184 — — 184 159 — — 159
Settlement receivables — 1,254 — 1,254 — 1,118 — 1,118
Derivative instruments and
embedded derivatives — 92 — 92 — 74 — 74
$ 608 $ 1,346 $ 150 $ 2,104 $ 1,852 $ 1,192 $ 150 $ 3,194

Financial liabilities
Derivative instruments and
embedded derivatives $ — $ 148 $ — $ 148 $ — $ 149 $ — $ 149
Settlement payables — 36 — 36 — 45 — 45
$ — $ 184 $ — $ 184 $ — $ 194 $ — $ 194

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32. Fair Value Measurements (continued)

The discounted cash flow models used to determine the FVLCD of certain non-financial assets are classified as Level 3
measurements. Refer to Note 9 for information about these fair value measurements.

Unless disclosed elsewhere in our financial statements (Note 12, Note 20, Note 22 and Note 25(b)), the fair value of the
remaining financial assets and financial liabilities approximate their carrying value.

33. Capital Management

The capital we manage is the total of equity and debt on our balance sheet. Our capital management objectives are to maintain
access to the capital we require to operate and grow our business while minimizing the cost of such capital and providing for
returns to our investors.

As defined in our internal policies, we target to maintain, on average, over time, a debt-to-adjusted EBITDA ratio of
approximately 2.0x consistent with an investment grade credit rating. This ratio is expected to vary from its target level from
time to time, reflecting commodity price cycles and corporate activity, including the development of major projects. We may
also review and amend such policy targets from time to time.

We maintain one committed sustainability-linked revolving facility in the amount of US$4.0 billion. As at December 31, 2023,
our US$4.0 billion sustainability-linked revolving credit facility was undrawn. As defined in the agreement, it includes a
financial covenant that requires us to maintain a net debt-to-capitalization ratio that does not exceed 0.60 to 1.0 (Note 20(e)).

As at December 31, 2023, our debt-to-adjusted EBITDA ratio was 1.2x (2022 – 0.8x) and our net debt-to-capitalization ratio
was 0.20 to 1.0 (2022 – 0.19 to 1.0). We manage the risk of not meeting our financial targets through the issuance and
repayment of debt, our distribution policy, the issuance of equity capital and asset sales, as well as through the ongoing
management of operations, investments and capital expenditures.

34. Key Management Compensation

The compensation for key management recognized in total comprehensive income in respect of employee services is
summarized in the table below. Key management consists of our directors, President and Chief Executive Officer, Chief
Operating Officer, and senior vice presidents.

(CAD$ in millions) 2023 2022

Salaries, bonuses, director fees and other short-term benefits $ 23 $ 23
Post-employment benefits 7 (7)
Share option compensation expense 11 12
Compensation expense related to Units 29 54
$ 70 $ 82

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