Breaking News

Ebay to Separate eBay, Paypal Into Independent Companies in 2015
Tweet TWEET

Teck Reports Unaudited Fourth Quarter Results for 2013

Teck Reports Unaudited Fourth Quarter Results for 2013 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 02/13/14 --  
All dollar amounts expressed in this news release are in Canadian
dollars unless otherwise noted. 
Teck Resources Limited (TSX: TCK.A and TCK.B, NYSE: TCK, ("Teck"))
reported annual adjusted profit attributable to shareholders of $1.0
billion, or $1.74 per share, compared with $1.8 billion or $3.03 per
share in 2012. Fourth quarter adjusted profit attributable to
shareholders was $227 million, or $0.40 per share, compared with $409
million, or $0.70 per share, in the fourth quarter of 2012. 
"We were pleased with our operating performance in 2013," said Don
Lindsay, President and CEO. "We achieved record annual steelmaking
coal sales, had record throughput at three of our mines, implemented
approximately $360 million in savings from our cost reduction program
and, with our partners, announced that we are proceeding with the
construction of the Fort Hills oil sands project. However, prices for
all of our key products were down compared to last year, resulting in
lower profits and cash flows than in 2012." 
Highlights and Significant Items 


 
--  Gross profit before depreciation and amortization in 2013 was $3.7
    billion compared with $4.5 billion in 2012. Gross profit before
    depreciation and amortization was $875 million in the fourth quarter
    compared with $1.1 billion in the fourth quarter of 2012. 
    
--  Cash flow from operations, before working capital changes, was $2.6
    billion in 2013 compared with $3.7 billion last year. Cash flow from
    operations, before working capital changes, was $636 million in the
    fourth quarter compared with $862 million a year ago. 
    
--  Profit attributable to shareholders was $961 million in 2013 compared
    with $1.1 billion in 2012. Profit attributable to shareholders was $232
    million in the fourth quarter of 2013 compared with $200 million in the
    same period last year. 
    
--  To date we have reached agreements with our coal customers to sell 5.9
    million tonnes of coal in the first quarter of 2014 and we expect total
    sales in the first quarter, including spot sales, to be at or above 6.3
    million tonnes. 
    
--  Our cash balance was $2.5 billion at February 12, 2014. 
    
--  We achieved a number of significant operating and sales records in the
    quarter and year, including: 
    
    --  record annual coal sales of 26.9 million tonnes as a result of
        increased global steel production; 
        
    --  new quarterly record copper production at 105,000 tonnes in the
        fourth quarter; and 
        
    --  record annual throughput at Greenhills, Antamina, Carmen de
        Andacollo and Red Dog. 
        
--  At Highland Valley Copper, the mill optimization project achieved
    substantial mechanical completion in the quarter and commissioning of
    the new flotation facility has commenced. 
    
--  We continue to implement our cost reduction program and to date our
    existing operations have identified over $380 million of annual, ongoing
    potential costs savings at constant production levels, of which $360
    million have been implemented. 
    
--  In October 2013, we and our partners Suncor Energy Inc. and Total E&P
    Canada Ltd. announced that we are proceeding with the construction of
    the Fort Hills oil sands project. The mine has an expected life of
   greater than 50 years, which meets our strategic goal of developing long
    life assets in stable jurisdictions. 
    
--  On November 20 we announced an eligible dividend of $0.45 per share on
    our outstanding Class A common shares and Class B subordinate voting
    shares to be paid on January 2, 2014. 
    
--  On January 21, 2014, we were ranked as one of the Global 100 Most
    Sustainable Corporations for 2014 by media and investment research
    company, Corporate Knights. This is the second consecutive year we have
    been included on the list. 
    
--  Since mid-2013, the Canadian/U.S. dollar exchange rate has moved
    significantly in our favour. At the current exchange rate, EBITDA would
    be positively impacted by approximately $500 million if the current rate
    continues for the balance of 2014. 

 
This news release is dated as at February 13, 2014. Unless the
context otherwise dictates, a reference to "Teck," "the company,"
"us," "we," or "our" refers to Teck and its subsidiaries. Additional
information, including our annual information form and management's
discussion and analysis for the year ended December 31, 2012, is
available on SEDAR at www.sedar.com.  
This document contains forward-looking statements. Please refer to
the cautionary language under the heading "CAUTIONARY STATEMENT ON
FORWARD-LOOKING INFORMATION" below. 
Overview 
Profits are lower than last year as a result of lower prices for all
of our principal products, especially coal. Coal and copper prices
declined by 23% and 8%, respectively, on an annual basis and 11% and
10% in the fourth quarter compared with the same period a year ago. 
For 2013 we exceeded our production targets for the year and compared
with 2012 production level our coal and zinc production both rose by
4%, while copper was lower by 2% due to lower ore grades, which were
partially offset by mill throughput increases at most of our mines.  
We continue to focus on our cost reduction program at all of our
sites. We have identified over $380 million of potential ongoing,
annual operating cost savings across the company, of which $360
million have been implemented. An additional $150 million of one-time
cost savings and deferrals have also been identified and implemented.
We note that while we have achieved significant efficiencies through
this program, there are offsetting factors such as lower grades,
increased waste haul distances, higher fuel prices and contractual
labour rate increases which tend to offset these cost control
measures and that some of these will become more significant as
mining progresses at each of our sites. 
In October 2013, we and our partners Suncor and Total announced that
we are proceeding with the construction of the Fort Hills oil sands
project. The mine has an expected life of greater than 50 years,
which meets our strategic goal of developing long life assets in
stable jurisdictions. Planned capacity is 180,000 barrels per day of
which our 20% share would be 36,000 barrels per day. First oil is
planned for the end of 2017 with a ramp up to 90% of capacity within
12 months. Our share of the fully escalated capital cost is expected
to be $2.94 billion. 
We continue to review our capital spending on other projects and in
respect of sustaining capital, reducing these amounts where we
consider it prudent to do so. 
Profit and Adjusted Profit(i) 
Adjusted profit, which excludes the effect of certain transactions
described in the table below, was $227 million, or per $0.40 share,
in the fourth quarter of 2013 compared with $409 million, or $0.70
per share, in the same period a year ago. The decline in adjusted
profit was primarily due to lower prices for our products, a decline
in zinc and copper sales volumes due to timing of shipments and
higher unit costs at our coal operations. 
Profit attributable to shareholders was $232 million, or $0.40 per
share, in the fourth quarter compared with $200 million or $0.34 per
share in the same period last year. Profit last year was affected by
a $259 million after-tax charge related to the refinancing of our
remaining high-yield notes. 


 
                                         Three months            Year ended 
                                   ended December 31,          December 31, 
($ in millions)                       2013       2012       2013       2012 
--------------------------------------------------------------------------- 
                                                                            
Profit attributable to                                                      
 shareholders as reported        $     232  $     200  $     961  $   1,068 
Add (deduct):                                                               
 Asset sales and provisions            (36)         4         (9)       (39)
 Foreign exchange (gains) losses        (2)        (1)        11         20 
 Derivative gains                        2         (3)         -        (98)
 Collective agreement charges            -         11          -         70 
 Financing items                         -        259          -        784 
 Asset impairments and other            31          -         31          - 
 Tax items                               -        (61)        10        (29)
                                ------------------------------------------- 
Adjusted profit((i))             $     227  $     409  $   1,004  $   1,776 
                                ------------------------------------------- 
                                                                            
Adjusted earnings per share(i)   $    0.40  $    0.70  $    1.74  $    3.03 
                                ------------------------------------------- 

 
((i)) This is a non-GAAP financial measure. See "Use Of Non-GAAP
Financial Measures" for more information. 
Business Unit Results 
Our business unit results are presented in the tables below. 


 
Three Months ended December 31                                              
                                        Gross profit                        
                                           before                           
                                        depreciation                        
                                             and                            
($ in millions)       Revenues        amortization((i))     Gross profit    
----------------------------------------------------------------------------
                      2013      2012      2013      2012      2013      2012
----------------------------------------------------------------------------
                                                                            
Copper           $     762 $     895 $     384 $     463 $     269 $     355
Coal                   963     1,010       352       435       167       304
Zinc                   649       824       138       194       110       165
Energy                   2         1         1         2         -         1
----------------------------------------------------------------------------
Total            $   2,376 $   2,730 $     875 $   1,094 $     546 $     825
----------------------------------------------------------------------------

 
((i)) This is a non-GAAP financial measure. See "Use Of Non-GAAP
Financial Measures" for more information. 
Gross profit before depreciation and amortization from our copper
business unit in the fourth quarter decreased by $79 million compared
with a year ago. The decrease was primarily a result of lower
realized copper prices, reduced by-product revenues and a 7% decrease
in sales volumes due to the timing of shipments, which was behind
production. These items were partly offset by lower operating costs,
particularly at our Quebrada Blanca and Carmen de Andacollo
Operations. Copper production in the fourth quarter was 105,000
tonnes, which was a new quarterly production record, compared with
103,000 tonnes a year ago and an increase of 15% from the third
quarter of 2013. The higher production is a result of record mine and
mill throughput at Antamina and improved production from Quebrada
Blanca. Cash unit costs in the fourth quarter of 2013, before and
after by-product credits, were US$1.90 and US$1.57 per pound,
respectively. This compares with cash unit costs, before and after
by-product credits, of US$2.08 and US$1.58 per pound, respectively,
in the fourth quarter of 2012. 
In our coal unit, gross profit before depreciation and amortization
in the fourth quarter declined by $83 million compared with last year
due primarily to lower realized coal prices and increased unit
operating costs. Production in the fourth quarter was 6.7 million
tonnes, or 5% higher than in the same period in 2012. Sales volumes
of 6.5 million tonnes in the fourth quarter reflect continued demand
for our products from customers in all market areas and were slightly
ahead of levels a year ago. For the year, sales volumes of 26.9
million tonnes represent a record for the coal operations, 2.9
million tonnes above 2012 and 1.9 million tonnes above the previous
high in 2004. Coal prices were 11% lower than a year ago and averaged
US$142 per tonne in the fourth quarter. The lower coal price was
partially offset by the effect of the stronger U.S. dollar. The cost
of product sold in the fourth quarter, before transportation and
depreciation charges, was $6 per tonne higher than the same period a
year ago due to higher fuel costs, contracted labour rate increases
and the completion of deferred maintenance activities. Operating
costs also included a $3 per tonne charge related to the write-down
of thermal coal inventories which forms a small portion of our
production. Depreciation and amortization, before the inventory
write-downs noted above, rose by $7 per tonne as a result of
increasing amortization for capitalized stripping costs and new
capital equipment investments made during the year, which are now
being depreciated. 
Gross profit before depreciation and amortization from our zinc
business unit decreased by $56 million to $138 million in the fourth
quarter compared with a year ago as a result of substantially lower
sales volumes from Red Dog due to the timing of shipments. In 2012,
poor weather in the third quarter caused delays to shipments
originally scheduled for the third quarter which were then deferred
to the fourth quarter. Trail's refined zinc production increased 3%
from a year ago due to better roaster throughput and improved
operating efficiencies. Refined lead and silver production was lower
in the fourth quarter compared with a year ago, as throughput from
the KIVCET lead furnace was affected by a series of production
interruptions. Zinc and lead production from Red Dog in the fourth
quarter was similar to a year ago. 
Revenues 
Revenues from operations were $2.4 billion in the fourth quarter
compared with $2.7 billion a year ago. Revenues from our copper
business unit decreased by $133 million from a year ago as a result
of softer copper prices, reduced by-product revenues and lower sales
volumes due to timing of shipments. Coal revenues decreased by $47
million compared with the fourth quarter of 2012 primarily due to
weaker coal prices. Revenues from our zinc business unit decreased by
$175 million compared with a year ago. The decrease was primarily due
to substantially lower silver revenues from Trail and a 22% decrease
in Red Dog's zinc sales volumes. The effect of the stronger U.S.
dollar in the fourth quarter compared with a year ago partly offset
the declines in commodity prices. 
Average Prices and Exchange Rates(i) 


 
                                  Three months             Year ended       
                               ended December 31,         December 31,      
                                                   %                       %
                                2013    2012  Change    2013    2012  Change
----------------------------------------------------------------------------
                                                                            
Copper (LME Cash -                                                          
 US$/pound)                     3.24    3.59    -10%    3.32    3.61     -8%
Coal (realized - US$/tonne)      142     159    -11%     149     193    -23%
Zinc (LME Cash - US$/pound)     0.86    0.88     -2%    0.87    0.88     -1%
Silver (LME PM fix -                                                        
 US$/ounce)                       21      33    -36%      24      31    -23%
Molybdenum (published price                                                 
 - US$/pound)                     10      11     -9%      10      13    -23%
Lead (LME Cash - US$/pound)     0.96    1.00     -4%    0.97    0.94     +3%
CAD/U.S. exchange rate (Bank                                                
 of Canada)                     1.05    0.99     +6%    1.03    1.00     +3%
(i) Except for coal prices, the average commodity prices disclosed above are
based on published benchmark prices and are provided for information only.  
Our actual revenues are determined using commodity prices and other terms   
and conditions specified in our various sales contracts with our customers. 
The molybdenum price is the price published in Platts Metals Week.          

 
Our year-to-date business unit results are presented in the table
below: 


 
Year ended December 31                                                      
                                        Gross profit                        
                                           before                           
                                        depreciation                        
($ in millions)       Revenues        and amortization      Gross profit    
----------------------------------------------------------------------------
                      2013      2012      2013      2012      2013      2012
----------------------------------------------------------------------------
                                                                            
Copper           $   2,853 $   3,142 $   1,391 $   1,601 $     988 $   1,240
Coal                 4,113     4,647     1,729     2,405     1,007     1,892
Zinc                 2,410     2,550       534       497       429       391
Energy                   6         4         5         4         2         1
----------------------------------------------------------------------------
Total            $   9,382 $  10,343 $   3,659 $   4,507 $   2,426 $   3,524
----------------------------------------------------------------------------

 
BUSINESS UNIT RESULTS 
The table below shows our production and sales of our major products. 


 
                 Units                                                      
                 (000's)        Production                   Sales          
----------------------------------------------------------------------------
                           Fourth                    Fourth                 
                           Quarter   Year-to-date    Quarter   Year-to-date 
                        ----------------------------------------------------
(note 1)                  2013  2012   2013   2012  2013  2012   2013   2012
----------------------------------------------------------------------------
                                                                            
Principal                                                                   
 products                                                                   
                                                                            
 Copper                                                                     
  Contained in                                                              
   concentrate   tonnes     88    88    304    307    83    90    303    305
  Cathode        tonnes     17    15     60     66    16    16     59     67
                        ----------------------------------------------------
                           105   103    364    373    99   106    362    372
                        ----------------------------------------------------
                                                                            
 Coal            tonnes  6,667 6,358 25,622 24,652 6,480 6,422 26,911 23,989
                                                                            
 Zinc                                                                       
  Contained in                                                              
   concentrate   tonnes    158   157    623    598   166   207    578    578
  Refined        tonnes     69    67    290    284    73    67    294    287
                                                                            
Other products                                                              
 Lead                                                                       
  Contained in                                                              
   concentrate   tonnes     25    26     97     95    40    50    100     96
  Refined        tonnes     21    24     86     88    22    23     85     88
                                                                            
 Molybdenum                                                                 
  Contained in                                                              
   concentrate   pounds  2,236 3,040  8,322 12,692 2,220 3,620  8,386 13,016
                                                                            
----------------------------------------------------------------------------
                                                                            
(1) We include 100% of production and sales from our Highland Valley Copper,
Quebrada Blanca and Carmen de Andacollo Operations in our production and    
sales volumes, even though we own 97.5%, 76.5% and 90%, respectively, of    
these operations, because we fully consolidate their results in our         
financial statements. We include 22.5% of production and sales from         
Antamina, representing our proportionate equity interest in Antamina.       

 
REVENUES AND GROSS PROFIT 
QUARTER ENDED DECEMBER 31 
Our revenues, gross profit before depreciation and amortization, and
gross profit by business unit are summarized in the table below: 


 
                                       Gross profit                        
                                          before                           
                                       depreciation        Gross profit    
($ in millions)       Revenues       and amortization         (loss)       
-------------------------------------------------------------------------- 
                     2013      2012      2013     2012      2013      2012 
-------------------------------------------------------------------------- 
                                                                           
Copper                                                                     
 Highland Valley                                                           
  Copper         $    220  $    314  $    110 $    171  $     86  $    136 
 Antamina             250       257       180      191       168       174 
 Quebrada Blanca      111       119        36        9        (8)      (17)
 Carmen de                                                                 
  Andacollo           140       174        59       72        33        50 
 Duck Pond             40        31       (2)       15       (11)        7 
 Other                  1         -         1        5         1         5 
-------------------------------------------------------------------------- 
                      762       895       384      463       269       355 
                                                                           
Coal (note 1)         963     1,010       352      435       167       304 
                                                                           
Zinc                                                                       
 Trail                428       499        33       25        20        13 
 Red Dog              280       376       109      170        94       153 
 Other                  2         1       (4)       (1)       (4)       (1)
 Inter-segment                                                             
  sales               (61)      (52)        -        -         -         - 
-------------------------------------------------------------------------- 
                      649       824       138      194       110       165 
                                                                           
Energy                  2         1         1        2         -         1 
-------------------------------------------------------------------------- 
                                                                           
TOTAL            $  2,376  $  2,730  $    875 $  1,094  $    546  $    825 
-------------------------------------------------------------------------- 
                                                                           
(1) Our coal business unit represents our interest in six operating mines.  
We wholly own the Fording River, Coal Mountain, Line Creek and Cardinal     
River Operations, and have a 95% partnership interest in the Elkview Mine   
and an 80% interest in the Greenhills Operations.                           

 
REVENUES AND GROSS PROFIT 
YEAR ENDED DECEMBER 31 
Our revenues, gross profit before depreciation and amortization, and
gross profit by business unit are summarized in the table below: 


 
                                        Gross profit                        
                                           before                           
                                        depreciation        Gross profit    
($ in millions)        Revenues       and amortization         (loss)       
--------------------------------------------------------------------------- 
                      2013      2012      2013     2012      2013      2012 
--------------------------------------------------------------------------- 
                                                                            
Copper                                                                      
 Highland Valley                                                            
  Copper          $    882  $  1,012  $    408 $    530  $    297  $    415 
 Antamina              822       897       596      682       549       644 
 Quebrada Blanca       422       499       121      115         3        16 
 Carmen de                                                                  
  Andacollo            606       597       244      227       150       144 
 Duck Pond             113       130        19       42       (14)       16 
 Other                   8         7         3        5         3         5 
--------------------------------------------------------------------------- 
                     2,853     3,142     1,391    1,601       988     1,240 
                                                                            
Coal (note 1)        4,113     4,647     1,729    2,405     1,007     1,892 
                                                                            
Zinc                                                                        
 Trail               1,751     1,865       112       59        61         9 
 Red Dog               874       892       418      440       364       384 
 Other                  13         7         4       (2)        4        (2)
 Inter-segment                                                              
  sales               (228)     (214)        -        -         -         - 
--------------------------------------------------------------------------- 
                     2,410     2,550       534      497       429       391 
                                                                            
Energy                   6         4         5        4         2         1 
--------------------------------------------------------------------------- 
                                                                            
TOTAL             $  9,382  $ 10,343  $  3,659 $  4,507  $  2,426  $  3,524 
--------------------------------------------------------------------------- 
                                                                            
(1) Our coal business unit represents our interest in six operating mines.  
We wholly own the Fording River, Coal Mountain, Line Creek and Cardinal     
River Operations, have a 95% partnership interest in the Elkview Mine and an
80% joint venture interest in the Greenhills Operation.                     

 
COPPER 
Highland Valley Copper (97.5%) 
Operating results at the 100% level are summarized in the following
table: 


 
                                   Three months ended            Year ended 
                                         December 31,          December 31, 
                                      2013       2012       2013       2012 
----------------------------------------------------------------------------
                                                                            
Tonnes milled (000's)               11,750     11,660     44,861     45,383 
                                                                            
Copper                                                                      
 Grade (%)                            0.33       0.36       0.29       0.30 
 Recovery (%)                         86.8       88.4       85.9       86.7 
 Production (000's tonnes)            33.7       37.4      113.2      116.3 
 Sales (000's tonnes)                 28.4       36.8      111.6      117.0 
                                                                            
Molybdenum                                                                  
 Production (million pounds)           1.7        2.5        6.1       10.0 
 Sales (million pounds)                1.6        3.1        6.2       10.0 
                                                                            
Cost of sales ($ millions)                                                  
 Operating                       $     101  $     131  $     440  $     445 
 Distribution                    $       9  $      12  $      34  $      37 
 Depreciation and amortization   $      24  $      35  $     111  $     115 
                                                                            
Gross profit summary ($                                                     
 millions) (note 1)                                                         
 Before depreciation and                                                    
  amortization                   $     110  $     171  $     408  $     530 
 Depreciation and amortization         (24)       (35)      (111)      (115)
----------------------------------------------------------------------------
 After depreciation and                                                     
  amortization                   $      86  $     136  $     297  $     415 
----------------------------------------------------------------------------
(1) Results do not include a provision for the 2.5% non-controlling interest
in Highland Valley Copper.                                                  

 
Highland Valley Copper's fourth quarter gross profit declined by $61
million, before depreciation and amortization, primarily due to lower
copper prices and lower sales volumes of both copper and molybdenum. 
Copper ore grades mined in the fourth quarter were higher than
previously expected leading to a strong production quarter, although
grades were not as high as the fourth quarter of 2012. Average copper
grades in 2014 are expected to be similar to 2013, with lower grades
expected in the first half of the year. Mill throughput was strong in
the fourth quarter at 128,000 tonnes per day benefitting from the new
pebble crushing facility commissioned in the third quarter.
Molybdenum production declined to 1.7 million pounds from 2.5 million
pounds a year ago primarily due to lower ore grades.  
Operating costs in the fourth quarter of $101 million decreased as a
function of the lower sales volumes in the period. Cost improvement
initiatives were successful in offsetting other cost pressures
associated with shutdown work and higher labour and material costs in
the fourth quarter. Capitalized stripping costs in the fourth quarter
of 2013 were $31 million compared with $19 million a year ago. 
The mill optimization project achieved substantial mechanical
completion in the quarter and commissioning of the new flotation
facility has commenced. Approximately 40% of the plant feed has been
transferred to the new plant which is performing as expected, with
the remainder of feed expected to transfer by early March. In
addition, Highland Valley is planning to relocate one of the
semi-mobile crushers in the Valley pit with detailed engineering
beginning in the first quarter of 2014. This sustaining capital
project is expected to cost approximately $70 million and is expected
to be complete by mid-2015. 
Highland Valley Copper's production in 2014 is expected to be in the
range of 110,000 to 120,000 tonnes of copper. Molybdenum production
in 2014 is expected to be in the range of 5 to 6 million pounds.  
Antamina (22.5%) 
Operating results at the 100% level are summarized in the following
table: 


 
                                   Three months ended            Year ended 
                                         December 31,          December 31, 
                                      2013       2012       2013       2012 
--------------------------------------------------------------------------- 
                                                                            
Tonnes milled (000's)                                                       
 Copper-only ore                     8,447      8,619     32,468     32,160 
 Copper-zinc ore                     4,074      3,133     14,571     14,323 
--------------------------------------------------------------------------- 
                                                                            
                                    12,521     11,752     47,039     46,483 
Copper (note 1)                                                             
 Grade (%)                            1.15       1.16       1.07       1.10 
 Recovery (%)                         87.5       88.7       87.2       87.9 
 Production (000's tonnes)           130.2      121.6      443.0      446.8 
 Sales (000's tonnes)                136.9      131.3      436.2      448.3 
                                                                            
Zinc (note 1)                                                               
 Grade (%)                            1.78       1.73       2.12       1.85 
 Recovery (%)                         81.9       82.5       84.4       80.7 
 Production (000's tonnes)            58.8       44.4      260.4      219.0 
 Sales (000's tonnes)                 64.6       62.9      256.9      229.2 
                                                                            
Molybdenum                                                                  
 Production (million pounds)           2.5        2.7       10.0       12.1 
 Sales (million pounds)                2.9        2.4        9.9       13.5 
                                                                            
Cost of sales (US$ millions)                                                
 Operating (note 2)              $     196  $     189  $     652  $     620 
 Distribution                    $      32  $      29  $     107  $     109 
 Royalties (note 3)              $      48  $      54  $     143  $     206 
 Depreciation and amortization   $      49  $      75  $     200  $     168 
                                                                            
Gross profit summary (our 22.5%                                             
 share) ($ millions)                                                        
 Before depreciation and                                                    
  amortization                   $     180  $     191  $     596  $     682 
 Depreciation and amortization         (12)       (17)       (47)       (38)
--------------------------------------------------------------------------- 
 After depreciation and                                                     
  amortization                   $     168  $     174  $     549  $     644 
--------------------------------------------------------------------------- 
                                                                            
(1) Copper ore grades and recoveries apply to all of the processed ores.    
Zinc ore grades and recoveries apply to copper-zinc ores only.              
(2) Cost of sales in the fourth quarter of 2012 included a US$43 million    
one-time labour settlement charge.                                          
(3) In addition to royalties paid by Antamina, we also pay a royalty in     
connection with the acquisition of our interest in Antamina equivalent to   
7.4% of our share of cash flow distributed by the mine.                     

 
Our 22.5% share of Antamina's gross profit decreased by $11 million
before depreciation and amortization in the fourth quarter, primarily
due to lower copper prices. In 2012, gross profit included a one-time
$10 million (US$43 million - 100% basis) labour settlement charge. 
Mill throughput was 7% higher than the fourth quarter of 2012 at
136,000 tonnes per day, a quarterly record. The mix of mill feed in
the fourth quarter was 67% copper-only ore and 33% copper-zinc ore,
compared with 73% and 27%, respectively, in the same period a year
ago. Copper production, on a 100% basis, rose by 8,600 tonnes
compared with a year ago to a new quarterly record 130,200 tonnes.
Zinc production increased to 58,800 tonnes from 44,400 tonnes in the
same period a year ago primarily due to the higher amount of
copper-zinc ore processed in the quarter. 
Operating costs (100% basis) in the fourth quarter, before a one-time
US$43 million labour settlement charge in 2012, increased to US$196
million, US$50 million higher than the fourth quarter of 2012,
reflecting the higher throughput and sales volumes. Capitalized
stripping costs were US$64 million (100% basis) in the fourth quarter
compared with US$91 million in the same period of 2012. 
Despite expected continued improvement in mill throughput rates,
production in 2014 is expected to be significantly lower than 2013 as
the mill feed will consist of lower grade ore, both from active mine
phases and stockpiles, consistent with the mine plan. Antamina is a
skarn deposit and grades can vary significantly depending on which
phases of the open pit are being mined. A gradual return to higher
production is expected after 2014 as grades improve. 
Our 22.5% share of Antamina's copper production in 2014 is expected
to be in the range of 75,000 to 80,000 tonnes and our 22.5% share of
zinc production is expected to be in the range of 40,000 to 45,000
tonnes. 
Quebrada Blanca (76.5%) 
Operating results at the 100% level are summarized in the following
table: 


 
                                   Three months ended            Year ended 
                                         December 31,          December 31, 
                                      2013       2012       2013       2012 
--------------------------------------------------------------------------- 
                                                                            
Tonnes placed (000's)                                                       
 Heap leach ore                      1,650      1,495      6,140      6,625 
 Dump leach ore                      1,543      5,668     10,078     25,361 
 -------------------------------------------------------------------------- 
                                                                            
                                     3,193      7,163     16,218     31,986 
Grade (TCu%) (note 1)                                                       
 Heap leach ore                       0.83       0.96       0.83       0.89 
 Dump leach ore                       0.39       0.54       0.42       0.50 
                                                                            
Production (000's tonnes)                                                   
 Heap leach ore                        9.8        9.3       31.6       39.5 
 Dump leach ore                        6.3        5.0       24.6       22.9 
 -------------------------------------------------------------------------- 
                                                                            
                                      16.1       14.3       56.2       62.4 
                                                                            
Sales (000's tonnes)                  14.6       15.1       55.3       62.2 
                                                                            
Cost of sales (US$ million)                                                 
 Operating                       $      71  $     108  $     287  $     377 
 Distribution                    $       1  $       2  $       6  $       7 
 Depreciation and amortization   $      41  $      27  $     114  $      99 
                                                                            
Gross profit (loss) summary ($                                              
 millions) (note 2)                                                         
 Before depreciation and                                                    
  amortization                   $      36  $       9  $     121  $     115 
 Depreciation and amortization         (44)       (26)      (118)       (99)
--------------------------------------------------------------------------- 
 After depreciation and                                                     
  amortization                   $      (8) $     (17) $       3  $      16 
--------------------------------------------------------------------------- 
                                                                            
(1) TCu% is the percent assayed total copper grade.                         
(2) Results do not include a provision for the 23.5% non-controlling        
interest in Quebrada Blanca.                                                

 
Despite lower copper prices, Quebrada Blanca's gross profit before
depreciation and amortization in the fourth quarter increased by $27
million primarily due to significantly improved operating costs. 
Copper production increased by 13% compared with the same period a
year ago and was significantly higher than the third quarter of 2013
primarily due to maintenance improvements and higher grades and
throughput through the heap leach facilities. Production from the
dump leach was also higher as previously placed material in inventory
was irrigated to supplement production. As planned, the amount of
dump leach ore placed and the associated grades continue to be
significantly lower this year. 
Operating costs decreased by US$37 million in the fourth quarter and
by US$90 million in 2013 compared with 2012. The restructuring plan
put in place for 2013 has been very successful in lowering the
operating cost structure. Maximizing heap leach throughput and
further cost reduction will continue to be a major focus as grades
are expected to continue to gradually decline. Capitalized stripping
costs in the fourth quarter were US$8 million compared with US$12
million a year ago. Depreciation expense rose in the fourth quarter
as a result of increasing amortization of capitalized deferred
stripping costs. 
Work continues to progress on updating the permits for the existing
facilities for the supergene operation with an anticipated mine life
that has cathode production extending into 2020. Submission of the
social and environmental impact assessment ("SEIA") for the supergene
facilities is anticipated in the second quarter of 2014.  
Quebrada Blanca's production in 2014 is expected to be in the range
of 45,000 to 50,000 tonnes of copper cathode. Sales in the first
quarter of 2014 are expected to be lower than production due to the
recent port strikes in Chile. 
Carmen de Andacollo (90%) 
Operating results at the 100% level are summarized in the following
table: 


 
                                   Three months ended            Year ended 
                                         December 31,          December 31, 
                                      2013       2012       2013       2012 
--------------------------------------------------------------------------- 
                                                                            
Tonnes milled (000's)                4,837      4,233     18,048     16,723 
Copper                                                                      
 Grade (%)                            0.48       0.54       0.48       0.52 
 Recovery (%)                         88.6       87.1       87.7       86.8 
 Production (000's tonnes)            20.6       19.7       76.8       75.8 
 Sales (000's tonnes)                 18.5       20.0       78.8       72.8 
                                                                            
Gold (note 1)                                                               
 Production (000's ounces)            14.9       16.7       68.0       57.6 
 Sales (000's ounces)                 12.8       17.4       67.1       56.3 
                                                                            
Copper cathode                                                              
 Production (000's tonnes)             1.4        0.8        4.4        4.0 
 Sales (000's tonnes)                  1.1        1.1        4.1        4.4 
                                                                            
Cost of sales (US$ million)                                                 
 Operating                       $      70  $      94  $     322  $     341 
 Distribution                    $       8  $       9  $      30  $      28 
 Depreciation and amortization   $      24  $      23  $      91  $      84 
                                                                            
Gross profit summary ($                                                     
 millions) (note 2)                                                         
 Before depreciation and                                                    
  amortization                   $      59  $      72  $     244  $     227 
 Depreciation and amortization         (26)       (22)       (94)       (83)
--------------------------------------------------------------------------- 
 After depreciation and                                                     
  amortization                   $      33  $      50  $     150  $     144 
--------------------------------------------------------------------------- 
                                                                            
(1) Carmen de Andacollo processes 100% of gold mined, but 75% of the gold   
produced is for the account of Royal Gold Inc.                              
(2) Results do not include a provision for the 10% non-controlling interest 
in Andacollo.                                                               

 
The decrease in Carmen de Andacollo's fourth quarter gross profit
before depreciation and amortization was primarily due to lower
realized copper prices and an 8% decline in sales volumes as a result
of timing of shipments.  
An increase in mill throughput and recoveries as a result of blasting
and process improvement initiatives helped to increase copper
production in the fourth quarter compared with a year ago, and offset
a decline in the copper grades. Consistent with the mine plan, copper
grades are expected to continue to decline in 2014 and future years.
Further mill throughput improvement initiatives are anticipated to
offset planned grade declines, although this is expected to place
additional cost pressure on the operation. 
Operating costs in the fourth quarter decreased by US$24 million to
US$70 million compared with a year ago, partly due to the 8% decline
in sales volumes and to lower energy costs. Capitalized stripping
costs in the fourth quarter and last year were minimal. 
Carmen de Andacollo's production in 2014 is expected to be in the
range of 65,000 to 75,000 tonnes of copper contained in concentrate
and approximately 5,000 tonnes of copper cathode. Cathode production
is currently planned until mid-2015, but further extensions could be
possible depending on economics and ore sources available. We do not
expect the recent port strikes in Chile to affect Carmen de
Andacollo's concentrate shipments in the first quarter of 2014. 
Duck Pond (100%) 
Duck Pond incurred an operating loss, before depreciation and
amortization, of $2 million in the fourth quarter compared with gross
profit of $15 million in the same period a year ago primarily as a
result of lower copper prices in addition to substantially higher
unit operating costs. Copper and zinc production in the fourth
quarter were 3,700 tonnes and 3,200 tonnes, respectively, compared
with 3,500 tonnes and 4,200 tonnes, respectively, last year. Copper
and zinc sales in the fourth quarter were 5,400 tonnes and 4,600
tonnes, respectively, compared with 3,600 tonnes and 4,200 tonnes,
respectively, last year. 
Duck Pond's production in 2014 is expected to be in the range of
14,000 to 16,000 tonnes of copper and approximately 15,000 tonnes of
zinc. 
After thorough exploration of the Lower Duck deposit, studies have
concluded that an extension to the underground mine at depth is not
economic. The current deposits being mined are expected to be
exhausted in the first half of 2015, after which time the mine will
be permanently closed. Closure and reclamation costs, which have been
provided for, are estimated to be $10 million. 
Copper Development Projects 
Quebrada Blanca Phase 2 
During the fourth quarter, detailed design for the Quebrada Blanca
Phase 2 project continued with the level of engineering activities
and associated costs being ramped down. A further slowdown in
activities will continue in the first half of 2014. Certain
commitments have been made by Quebrada Blanca in connection with the
development of Quebrada Blanca Phase 2, including with respect to
certain long-lead equipment and power purchase contracts. Quebrada
Blanca is evaluating ways to manage its exposure in connection with
these commitments in light of the permitting delays at Quebrada
Blanca. 
As previously announced, the permits for our existing facilities need
to be updated before resubmission of the Phase 2 SEIA. Timing for
resubmission of the Phase 2 SEIA will depend to some extent on
progress on updating permits for the existing facilities.  
Relincho 
A feasibility study was completed in the quarter on our 100% owned
Relincho project and concludes that developing a 173,000
tonnes-per-day concentrator and associated facilities would cost
approximately US$4.5 billion (in August 2013 dollars, not including
working capital or interest during construction) with an estimated
mine life of 21 years based on mineral reserves. 
The total mineral reserve and mineral resource estimates for the
project, as at December 31, 2013, are set out in the tables below.
Mineral resources are reported separately from and do not include
that portion of mineral resources that are classified as mineral
reserves.  
Mineral Reserves 


 
                  Tonnes                        
                 (000's)         %Cu         %Mo
------------------------------------------------
Proven           435,300        0.38       0.016
Probable         803,800        0.37       0.018
------------------------------------------------
Total          1,239,100        0.37       0.017

 
Mineral Resources 


 
                  Tonnes                        
                 (000's)         %Cu         %Mo
------------------------------------------------
Measured          79,900        0.27       0.009
Indicated        317,100        0.34       0.012
Inferred         610,800        0.38       0.013

 
Reserves have been reported within designed life of mine pits created
during the feasibility study assuming US$2.80/lb copper and
US$13.70/lb molybdenum prices with a mining cost of US$0.95 per tonne
moved, a processing cost of US$9.13 per tonne milled, and with
assumed metallurgical recoveries of 88.8% for copper and 47.2% for
molybdenum. 
Estimated key project operating parameters are summarized in the
following table. 


 
                                                 Years 2-6(i)   Life of Mine
----------------------------------------------------------------------------
Strip ratio (tonnes waste/tonnes ore)                  1.28:1         1.28:1
Tonnes milled (nominal tonnes per day)                173,000        173,000
Copper grade (%Cu)                                      0.41%          0.37%
Molybdenum grade (%Mo)                                 0.018%         0.017%
Contained copper production (tonnes per annum)        228,000        207,000
Contained molybdenum production (tonnes per                                 
 annum)                                                 5,300          5,100
C1 cash costs (US$)(ii)                                  1.53           1.72
                                                                            
(i) First five years at full production rate.                               
(ii) C1 cash costs are presented after by-product credit assuming US$10.00  
per pound of molybdenum.                                                    

 
Estimates of mineral reserves and resources have been prepared under
the general supervision of Rodrigo Marinho, P.Geo., who is an
employee of Teck and a qualified person for the purposes of National
Instrument 43-101. 
Given current economic conditions, no significant activities are
planned for Relincho in 2014. We will work on optimization studies
that will focus on capital and operating cost reductions and explore
other ways to enhance the value of the project. 
Other Copper Projects 
A small technical work program at Galore Creek is planned for 2014 to
incorporate the results of recent drilling activity and engineering
studies, with no significant field activity planned. No significant
work was done in the fourth quarter at Schaft Creek. Some engineering
studies will continue, but no drilling activities are planned for
2014. 
COAL (100%) 
Operating results at the 100% level are summarized in the following
table: 


 
                                   Three months ended            Year ended 
                                         December 31,          December 31, 
                                      2013       2012       2013       2012 
--------------------------------------------------------------------------- 
                                                                            
Production (000's tonnes)            6,667      6,358     25,622     24,652 
                                                                            
Sales (000's tonnes)                 6,480      6,422     26,911     23,989 
                                                                            
Average sale price                                                          
 US$/tonne                       $     142  $     159  $     149  $     193 
 C$/tonne                        $     149  $     157  $     153  $     194 
                                                                            
Cost of sales (C$/tonne)                                                    
 Operating                       $      55  $      49  $      51  $      57 
 Transportation                  $      39  $      41  $      38  $      37 
 Depreciation and amortization   $      29  $      20  $      27  $      21 
                                                                            
Gross profit summary ($                                                     
 millions)                                                                  
 Before depreciation and                                                    
  amortization                   $     352  $     435  $   1,729  $   2,405 
 Depreciation and amortization        (185)      (131)      (722)      (513)
--------------------------------------------------------------------------- 
 After depreciation and                                                     
  amortization                   $     167  $     304  $   1,007  $   1,892 
--------------------------------------------------------------------------- 

 
Gross profit before depreciation and amortization in the fourth
quarter declined by $83 million compared with last year due primarily
to lower coal prices and increased unit operating costs, which
included a write-down of thermal coal inventory. The lower coal
prices were partially offset by the effect of a stronger U.S. dollar
and slightly higher sales volumes than in the same period in 2012.  
Production in the fourth quarter was 6.7 million tonnes, or 5% higher
than in the same period a year ago. The mines continue to effectively
manage inventories and as a result of the increased global steel
production and related demand for our products, production rates have
increased throughout the year. Annual production of 25.6 million
tonnes was about 1 million tonnes above 2012 production, and included
record production of 5 million tonnes from our Greenhills operation
following the successful expansion of the processing plant capacity.
To align production rates with anticipated demand and effectively
manage inventories, we plan to produce 26 to 27 million tonnes of
coal in 2014 compared with our current capacity of 28 million tonnes. 
Sales volumes of 6.5 million tonnes in the fourth quarter reflect
continued demand for our coal products from customers in all market
areas and were slightly ahead of levels a year ago. For the year,
sales volumes of 26.9 million tonnes represent an all-time record for
the coal operations, 2.9 million tonnes above 2012 and 1.9 million
tonnes higher than the previous record in 2004. The largest growth
areas were in the traditional markets of Asia, although we
experienced strong sales growth across virtually all market areas.  
Coal prices have been agreed with the majority of the quarterly
contract customers for the first quarter of 2014 based on pricing of
US$143 per tonne for the highest quality products, which is
consistent with prices reportedly achieved by our competitors. The
reduction in price versus the previous quarter is a reflection of the
well-supplied market. We are continuing contract discussions with our
customers and are also anticipating selling additional tonnage on the
spot market, including to customers who have traditionally purchased
the majority of their coal requirements on a quarterly pricing basis.
Additional sales priced on a spot basis will reflect market
conditions at the time the sale is concluded. We are expecting total
sales for the first quarter of 2014 to be at least 6.3 million
tonnes. Vessel nominations for quarterly contract shipments are
determined by customers and final sales and average prices for the
quarter will depend on timely arrival of vessels and the performance
of our coal-loading facilities. In addition, first quarter sales
levels can be affected by weather conditions on the west coast that
affect the loading of vessels. 
The cost of product sold in the fourth quarter, before a write-down
of thermal coal inventories and transportation and depreciation
charges, was $52 (US$50) per tonne or $3 per tonne higher than the
$49 per tonne in the same period a year ago. Cost reduction
initiatives focused on productivity improvement in mining,
maintenance and processing operations as well as reducing input and
overhead costs across the business unit. These initiatives continued
to reduce unit costs, with costs in the quarter down $6 per tonne
when compared with those from the first nine months of 2012 before
our cost reduction program was put in place. However, the fourth
quarter of 2012 was the first quarter of cost reduction initiatives
for the coal business and when comparing the fourth quarter of 2013
to 2012, the effect of these initiatives were offset by the
completion of maintenance activities originally planned for 2012
being moved to the fourth quarter of 2013, combined with higher
energy prices and contractual labour rate increases.  
In the current period, capitalized stripping costs were $112 million
compared with $79 million last year. We expect our 2014 annual cost
of product sold to be in the range of $55 to $60 per tonne (US$50 to
US$54 based on current exchange rates), based on our current
production plans, reflecting longer haul distances and higher fuel
prices.  
Transportation costs in the quarter were $39 per tonne, $2 per tonne
lower compared with the same quarter a year ago, resulting primarily
from selling less coal inclusive of ocean freight. The lower
proportion of sales inclusive of ocean freight is a reflection of a
broad-base increase in sales across most market areas where we sell
coal. We expect our 2014 annual transportation costs to be
approximately $38 to $42 per tonne. 
Depreciation and amortization increased by $9 per tonne to $29 per
tonne primarily due to the accumulation of capital assets being
depreciated under the new capitalized stripping accounting policy.
Also contributing to the increase were investments in capital
equipment made during the year, which are now commissioned and
operating at our sites. We expect depreciation and amortization
expense to be approximately $29 per tonne in 2014.  
We are continuing to proceed with detailed engineering work at the
Quintette project so that we will be in a position to proceed with
the reopening if market conditions are favorable. Production could
commence within 14 months of a construction decision. We are
currently executing a bulk sample program at the site which will be
completed over the next six months to produce saleable coal for trial
by potential customers.  
Elk Valley Water Management 
Our Elk Valley Water Management program continued to progress
throughout the fourth quarter. As we have previously communicated, in
the course of mining we generate large quantities of rock that
contains naturally occurring substances such as selenium. Water from
both precipitation and runoff flows through rock piles and carries
these substances into the local watershed. If present in high enough
concentrations, those substances have the potential to adversely
affect aquatic health. Although studies that we have commissioned
have found no population-level effects on fish within the Elk Valley
watershed to date, our research indicates that without additional
measures, concentrations will increase over time to levels that may
have ecological effects.  
In February 2013, we submitted a draft valley-wide Selenium
Management Action Plan to the British Columbia provincial government,
which proposed draft selenium concentration targets for the Elk
Valley watershed and a water management strategy including water
diversion and treatment facilities in order to achieve those targets.
While the provincial government did not adopt this plan, it led to an
Area Based Management Plan Order in April 2013, which provided
further clarity around the province's requirements for a water
quality plan and a regulatory framework in which water quality can be
managed on a regional basis.  
The Order calls for us to develop an Elk Valley Water Quality Plan
("Plan") to address the effects of selenium as well as other
substances released by mining activities throughout the watershed,
assess the associated economic and social costs and benefits of
treatment and establish the concentration targets and time frames
required to stabilize and reduce levels of these substances over the
short, medium and long term. The Plan will be informed by scientific
advice received from a Technical Advisory Committee chaired by the
B.C. Ministry of Environment and including representatives from Teck,
the U.S. Environmental Protection Agency, State of Montana, Ktunaxa
First Nation, other provincial and federal agencies and an
independent scientist. The Plan is now being developed and is
expected to be complete and submitted to the B.C. Ministry of
Environment in the third quarter of 2014.  
While the previous draft valley-wide Selenium Management Action Plan
contemplated total capital spending over the next five years of up to
$600 million on the installation of water diversion and treatment
facilities, the estimated capital and operating costs of implementing
the Elk Valley Water Quality Plan are not yet known. The final costs
will depend on the water quality targets established in the Plan, as
well as the technologies applied to manage selenium and other
substances. The initial cost estimate in the previous Plan assumed
the application of biological treatment technology, which is
currently being installed in the water treatment plant under
construction at our Line Creek operation. This facility is
progressing satisfactorily towards expected commissioning in the
second quarter of 2014. We are actively investigating alternative
technologies with the potential to reduce treatment costs while
ensuring water quality objectives are met. 
Our work on the Plan is expected to result in revised cost estimates
in the third quarter of 2014. We expect that, in order to maintain
water quality, water treatment will need to continue for an
indefinite period after mining operations end. Our ongoing work could
reveal technical issues or advances associated with potential
treatment technologies which could substantially increase or decrease
both capital and operating costs associated with water quality
management. Delays in obtaining approval of the Plan could result in
consequential delays in permitting new mining areas, which would
limit our ability to maintain or increase coal production in
accordance with our long term plans. If this were to occur, the
potential shortfall in future production could be material. 
ZINC 
Trail (100%) 
Operating results at the 100% level are summarized in the following
table: 


 
                                   Three months ended            Year ended 
                                         December 31,          December 31, 
                                      2013       2012       2013       2012 
--------------------------------------------------------------------------- 
                                                                            
Metal production                                                            
 Zinc (000's tonnes)                  68.9       67.2      290.1      284.2 
 Lead (000's tonnes)                  20.9       23.5       86.4       87.9 
 Silver (million ounces)               6.3        6.7       22.8       22.9 
                                                                            
Metal sales                                                                 
 Zinc (000's tonnes)                  73.1       67.1      294.1      287.4 
 Lead (000's tonnes)                  21.6       23.4       85.2       88.3 
 Silver (million ounces)               6.2        6.7       22.5       22.9 
                                                                            
                                                                            
Cost of sales ($ millions)                                                  
 Concentrates                    $     274  $     346  $   1,145  $   1,239 
 Operating                       $      95  $     103  $     386  $     461 
 Distribution                    $      26  $      25  $     108  $     106 
 Depreciation and amortization   $      13  $      12  $      51  $      50 
                                                                            
Gross profit summary ($                                                     
 millions)                                                                  
 Before depreciation and                                                    
  amortization                   $      33  $      25  $     112  $      59 
 Depreciation and amortization         (13)       (12)       (51)       (50)
--------------------------------------------------------------------------- 
After depreciation and                                                      
 amortization                    $      20  $      13  $      61  $       9 
--------------------------------------------------------------------------- 

 
Gross profit at Trail, before depreciation and amortization,
increased by $8 million compared to the same quarter last year due to
higher zinc sales volumes, reduced operating costs, and the effect of
the stronger U.S. dollar, partially offset by lower prices.  
Zinc production was higher in the current quarter due to better
roaster throughput and improved operating efficiencies. KIVCET
throughput was negatively affected by a series of production
interruptions which resulted in lower lead and silver production in
the current quarter compared with a year ago.  
Operating costs in the fourth quarter were the same as a year ago
after excluding a one-time $59 million labour settlement charge in
2012, of which $8 million was charged to the fourth quarter.
Operating costs on an annual basis were lower in 2013 primarily due
to the one-time labour settlement charge incurred in 2012. The cost
of concentrate purchases in the fourth quarter was lower than a year
ago due to lower metal prices, especially for silver, and to lower
lead and silver production levels.  
Construction continued on the new acid plant, which is replacing an
aging facility and is expected to lower emissions. Fourth quarter
spending was $28 million bringing the total spending on the project
to $112 million.  
On January 28, 2014, up to 25 cubic meters of a high pH solution was
discharged to a domestic sewer line that goes to the Regional
District sewage treatment plant. There is not expected to be any
long-term effects on fish or the environment as a result of the
discharge. We are conducting a full investigation and additional
operational safeguards have already been implemented. 
Trail's production in 2014 is expected to be in the range of 280,000
to 290,000 tonnes of refined zinc, 82,000 to 87,000 tonnes of refined
lead and 22 to 25 million ounces of silver. 
Upper Columbia River Basin (Lake Roosevelt)  
Teck American Inc. ("TAI") continues studies under the 2006
settlement agreement with the U.S. EPA to conduct a remedial
investigation on the Upper Columbia River in Washington State. 
The Lake Roosevelt litigation involving Teck Metals Ltd. ("TML") in
the Federal District Court for the Eastern District of Washington
continues. In September 2012, TML entered into an agreement with the
plaintiffs, agreeing that certain facts were established for purposes
of the litigation. The agreement stipulates that some portion of the
slag discharged from our Trail Operations into the Columbia River
between 1896 and 1995, and some portion of the effluent discharged
from Trail Operations, have been transported to and are present in
the Upper Columbia River in the United States, and that some
hazardous substances from the slag and effluent have been released
into the environment within the United States. In December 2012, 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 response costs, the amount of which will be determined
in a subsequent phase of the case. 
In October 2013, the Confederated Tribes of the Colville Reservation
filed an omnibus motion with the District Court seeking an order
stating that they are permitted to seek recovery from TML for
environmental response costs, and, in a subsequent proceeding,
natural resource damages and assessment costs, arising from the
alleged deposition of hazardous substances in the United States from
aerial emissions from TML's Trail Operations. Prior allegations by
the Tribes related solely to solid and liquid materials discharged to
the Columbia River. The motion does not state the amount of response
costs allegedly attributable to aerial emissions, nor did it attempt
to define the extent of natural resource damages, if any,
attributable to past smelter operations. In December 2013, the
District Court ruled in favour of Plaintiffs. 
A hearing with respect to liability in connection with air emissions
and past response costs is now expected to take place in December
2015 and a subsequent hearing, with respect to claims for natural
resource damages and assessment costs, is expected to follow,
assuming the remedial investigation and feasibility study being
undertaken by TAI are completed, which is now expected to occur in
2017. 
There is no assurance that we will ultimately be successful in our
defence of the litigation or that we or our affiliates will not be
faced with further liability in relation to this matter. 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 remediation or restoration that may be
required or to assess our potential liability for damages. The
studies may conclude, on the basis of risk, cost, technical
feasibility or other grounds, that no remediation should be
undertaken. If remediation is required and damage to resources found,
the cost of remediation may be material. 
Red Dog (100%) 
Operating results at the 100% level are summarized in the following
table: 


 
                                   Three months ended            Year ended 
                                         December 31,          December 31, 
                                      2013       2012       2013       2012 
----------------------------------------------------------------------------
                                                                            
Tonnes milled (000's)                  985      1,001      3,853      3,576 
                                                                            
Zinc                                                                        
 Grade (%)                            17.2       18.1       17.0       18.2 
 Recovery (%)                         83.9       78.6       84.0       81.3 
 Production (000's tonnes)           141.9      142.3      551.3      529.1 
 Sales (000's tonnes)                147.3      188.5      504.1      509.6 
                                                                            
Lead                                                                        
 Grade (%)                             3.9        4.6        3.9        4.6 
 Recovery (%)                         66.5       57.5       64.9       57.7 
 Production (000's tonnes)            25.4       26.3       96.7       95.4 
 Sales (000's tonnes)                 40.4       49.2      100.2       95.6 
                                                                            
Cost of sales (US$ millions)                                                
 Operating                       $      77  $      94  $     214  $     212 
 Distribution                    $      35  $      41  $     106  $     107 
 Royalties (NANA)                $      51  $      73  $     120  $     137 
 Depreciation and amortization   $      14  $      16  $      53  $      56 
                                                                            
Gross profit summary ($                                                     
 millions)                                                                  
 Before depreciation and                                                    
  amortization                   $     109  $     170  $     418  $     440 
 Depreciation and amortization         (15)       (17)       (54)       (56)
----------------------------------------------------------------------------
 After depreciation and                                                     
  amortization                   $      94  $     153  $     364  $     384 
----------------------------------------------------------------------------

 
Red Dog's gross profit in the fourth quarter, before depreciation and
amortization, decreased by $61 million compared with the same period
a year ago primarily due to a 22% decrease in sales volumes of zinc
as a result of the timing of shipments. Shipments were higher than
normal in the fourth quarter of 2012 when poor weather in the third
quarter deferred shipments to the fourth quarter. In addition, in
2013 certain customers that drew from consignment inventories
deferred delivery of zinc from the fourth quarter of 2013 to the
first quarter of 2014. 
Annual mill throughput was a record at 3.85 million tonnes in 2013
and combined with improved recoveries, zinc production was 4% above
last year. Softer, favorable ore types accounted for the record mill
throughput and improved recoveries compared with 2012. 
Operating costs in the fourth quarter of US$77 million decreased in
relation to the lower sales volumes in the period. Capitalized
deferred stripping costs were US$16 million in the fourth quarter of
2013 compared with US$11 million in the fourth quarter of 2012. 
Offsite zinc inventory available for sale from January 1, 2014 to the
beginning of the 2014 shipping season total 274,000 tonnes (2013 -
218,000 tonnes) of contained metal. Zinc sales volumes in the first
quarter of 2014 are estimated to be approximately 136,000 tonnes of
contained metal. All offsite lead inventories have been sold as of
the end of 2013. 
Red Dog's production of contained metal in 2014 is expected to be in
the range of 500,000 to 525,000 tonnes of zinc and 95,000 to 100,000
tonnes of lead. 
ENERGY 
Fort Hills Project  
In October 2013, we and our partners Suncor Energy Inc. ("Suncor")
and Total E&P Canada Ltd. ("Total") announced that we are proceeding
with the construction of the Fort Hills oil sands project. The Fort
Hills partnership has three limited partners: Suncor (40.8%), Total
(39.2%) and Teck (20%). An affiliate of Suncor is the developer and
operator of the Fort Hills project under an operating services
contract. The project is scheduled to produce first oil as early as
the fourth quarter of 2017 and achieve 90% of its planned production
capacity of 180,000 barrels per day of bitumen within 12 months. Our
share of production is expected to be 36,000 barrels per day, or 13
million barrels per year, of bitumen. Construction is on budget and
progressing substantially in accordance with the project schedule. 
Based on Suncor's project cost estimates, our portion of the
fully-escalated capital investment in Fort Hills from the date of
project sanction is estimated at approximately $2.94 billion over
four years (2014-2017), including remaining earn-in commitments of
$240 million. The gross overall project costs to all partners since
the project restart in 2011 are estimated by Suncor at a capital
intensity of approximately $84,000 per flowing barrel of bitumen,
within the range of similar recent oil sands projects.  
Our share of Fort Hills spending in 2013, including our ongoing
earn-in commitments, was $298 million. Suncor has indicated a 2014
planned project spending of $3.16 billion, of which our share would
be $850 million, including our earn-in commitment.  
As a result of changes made to the agreements governing the project,
we are accounting for Fort Hills by recording our share of the
assets, liabilities, revenues, expenses and cash flows effective
October 30, 2013. Prior to that date, we accounted for our investment
in Fort Hills using the equity method. 
Frontier Energy Project  
The project has been designed for a total nominal production of
approximately 277,000 barrels per day of bitumen.  
In November 2011, the Frontier project application was submitted to
regulators. We have subsequently responded to two rounds of
supplemental information requests and review of the application
continues. The cumulative federal review period is estimated to be
approximately two years, making 2015 the earliest an approval
decision and receipt of required permits is expected. 
An exploration program is planned at Frontier in the winter of 2014
to provide additional data to support the regulatory review process
and ongoing engineering work. 
Wintering Hills Wind Power Facility  
During 2013, our share of the power generation from Wintering Hills
was 85 GWhs. Expected power generation in 2014 is dependent on
weather conditions and the anticipated 85 GWhs of power generated
will result in approximately 55,000 tonnes of CO2 equivalent offsets. 
OTHER COSTS AND EXPENSES 
Other operating expense, net of other income, was $80 million in the
fourth quarter compared with $54 million in the fourth quarter of
2012. Fourth quarter expenses in 2013 included $9 million in
share-based compensation expense, $23 million of provisions for our
closed properties and $14 million of losses on operating assets.
Positive pricing adjustments in the fourth quarter were $10 million
compared with $20 million of negative price adjustments in the fourth
quarter of 2012. 
During the quarter we completed our annual testing of goodwill for
impairment and tested other operating assets where indicators of
possible impairment indicators existed. Our tests, using our
expectations of long term prices and market discount rates, did not
indicate any impairments. Long term commodity price assumptions are
based on internal forecasts, which are based on a number of factors,
including forward curve in the near-term, and are bench marked with
external sources of information including information published by
our peers, to ensure they are within the range of values used by
market participants.  
The table below outlines our outstanding receivable positions, which
were provisionally valued at September 30, 2013 and our receivable
positions provisionally valued at, December 31, 2013. 


 
                                    Outstanding at        Outstanding at
                                September 30, 2013     December 31, 2013
                            --------------------------------------------
(pounds in millions)             Pounds     US$/lb     Pounds     US$/lb
------------------------------------------------------------------------
                                                                        
Copper                              138       3.31        135       3.35
Zinc                                224       0.86        109       0.94
                                                                        
------------------------------------------------------------------------

 
Financing expenses were $81 million in the fourth quarter compared
with $102 million a year ago as changes in the joint venture
agreement resulted in the requirement to capitalize interest in
respect of our interest in the Fort Hills project. 
In the fourth quarter our non-operating income was $40 million, which
was mainly comprised of gains on the sale of marketable securities.
This compares with non-operating expense of $314 million in the
fourth quarter of 2012, which primarily consisted of a $313 million
charge on the redemption of the final portion of our high-yield
notes. 
Income and resources taxes for the fourth quarter were $134 million,
or 36% of pre-tax profits, which is higher than the Canadian
statutory income tax rate of 26%. The effective higher rate is due
mainly to the effect of resource taxes and higher tax rates in
foreign jurisdictions. Because of available tax pools, we are
currently shielded from cash income taxes, but not resource taxes in
Canada. We remain subject to cash taxes in foreign jurisdictions.  
Subsequent to year end, the Canada Revenue Agency proposed that most
of the gains realized in 2008 on the sale of our 19.95% interest in
Fording Canadian Coal Trust at the time of our acquisition of the
Trust's assets should be taxed as income rather than capital gains.
Although management remains confident that the gains were capital
gains, the Canada Revenue Agency may nonetheless raise assessments on
this basis. There can be no assurance that such assessments would not
be upheld in whole or in part, in which case up to approximately $900
million of additional income for tax purposes would reduce our
existing tax pools resulting in an additional deferred tax liability
of $235 million. In addition, cash interest of up to approximately
$50 million could be due. 
OPERATING CASH FLOW, FINANCIAL POSITION AND LIQUIDITY 
Cash flow from operations, before changes in non-cash working capital
items, was $636 million in the fourth quarter compared with $862
million a year ago, with the reduction primarily a result of the
effect of lower prices for our products.  
Changes in non-cash working capital items contributed $133 million of
cash in the fourth quarter compared with $49 million in the same
period a year ago. The decrease in working capital was mainly due to
the seasonal drawdown of Red Dog's product inventories and timing of
payment of trade accounts payable.  
Expenditures on property, plant and equipment were $541 million in
the fourth quarter and included $243 million on sustaining capital,
$117 million on major enhancements and $181 million for new mine
development. The largest component of sustaining expenditures was $90
million at our coal operations. Major enhancements included $90
million at Highland Valley Copper for the mill optimization project
and $14 million at our existing coal operations. New mine development
included $57 million for Quebrada Blanca Phase 2, $12 million at
Relincho, $35 million for Quintette and $60 million at Fort Hills.
Capitalized production stripping costs, excluding capitalized
depreciation, were $185 million in the fourth quarter compared with
$151 million a year ago.  
During the fourth quarter we received proceeds of $498 million on the
sale of marketable securities for a gain of $42 million. 
We have committed and unused bank credit facilities aggregating
US$2.0 billion maturing in 2018. 
OUTLOOK 
We continue to experience volatile markets for our products and
prices for some of our products have declined significantly.
Commodity markets have historically been volatile, prices can change
rapidly and customers can alter shipment plans. This can have a
substantial effect on our business. Demand for our products,
particularly coal, remains strong. However, new sources of supply
have put downward pressure on coal prices. While we believe that the
longer term fundamentals for steelmaking coal, copper and zinc are
favorable, the recent weakness in some of these markets may well
persist for some time. We are also significantly affected by foreign
exchange rates. The Canadian dollar has fallen significantly against
the U.S. dollar to date in 2014 and this has had a positive effect on
the profitability of our Canadian operations. It will, to a lesser
extent, put upward pressure on a portion of our operating costs and
capital spending. 
We have committed to spending an estimated $2.94 billion over the
next four years on the development of the Fort Hills oil sands
project which will consume a significant portion of our cash
resources. In the meantime, the Company's financial position is
strong. We are taking further steps to manage our capital spending
profile and we continuously monitor all aspects of our cost reduction
program, our capital spending and key markets as conditions evolve in
order to be in a position to take whatever actions may be
appropriate. 
Commodity Prices and 2014 Production 
Commodity prices are a key driver of our profit. On the supply side,
the depleting nature of ore reserves, difficulties in finding new ore
bodies, the permitting processes, the availability of skilled
resources to develop projects, as well as infrastructure constraints,
political risk and significant cost inflation may continue to have a
moderating effect on the growth in future production for the industry
as a whole. We are starting to see improvements in global economic
conditions and believe that over the longer term the
industrialization of emerging market economies will continue to be a
major positive factor in the future demand for commodities.
Therefore, we believe that the long term price environment for the
products that we produce and sell remains favourable.  
Based on our expected 2014 mid-range production estimates and a
Canadian/U.S. dollar exchange rate of $1.10, the sensitivity of our
annual profit attributable to shareholders to the indicated changes
in commodity prices, before pricing adjustments and the U.S. dollar
exchange rate is as follows: 


 
----------------------------------------------------------------------------
                                                                            
                           2014                                             
                      Mid-Range                    Effect of                
                     Production                       Change       Effect on
                      Estimates       Change       On Profit          EBITDA
----------------------------------------------------------------------------
                                                                            
Coal (000's                                                                 
 tonnes)                 26,500   US$1/tonne    $ 19 million    $ 29 million
Copper (tonnes)         330,000   US$0.01/lb     $ 5 million     $ 7 million
Zinc (tonnes)           855,000   US$0.01/lb     $ 7 million    $ 10 million
US$ exchange                        CAD$0.01    $ 40 million    $ 62 million
----------------------------------------------------------------------------
                                                                            
(1) The effect on our profit attributable to shareholders of commodity price
and exchange rate movements will vary from quarter to quarter depending on  
sales volumes.                                                              
(2) Zinc includes 285,000 tonnes of refined zinc and 570,000 tonnes of zinc 
contained in concentrates.                                                  
(3) All production estimates are subject to change based on market and      
operating conditions.                                                       

 
Foreign exchange translation gains and losses on our U.S. dollar
denominated debt arising from exchange rate fluctuations are not
expected to have a significant effect on our 2014 profit as our U.S.
dollar debt is expected to be designated as a hedge against our
investments in U.S. dollar denominated foreign operations. 
Copper and zinc prices, to date in 2014, are trading similar to 2013
average prices. Coal prices continue to be weak. The fluctuations in
the Canadian/U.S. dollar exchange rate can have a significant effect
on our profit and financial position. The Canadian dollar, to date in
2014, has averaged approximately $1.10 against the US dollar compared
with $1.03 on average for 2013. 
Our copper production for 2014 is expected to be in the range of
320,000 to 340,000 tonnes compared with 364,000 tonnes produced in
2013. The lower expected production is a result of lower production
from Quebrada Blanca with less dump leach production and from
Antamina as the mine enters a period of significantly lower grades
consistent with the mine plan. Antamina is expected to gradually
increase production after 2014 as grades improve which together with
higher production from Highland Valley Copper, is expected to offset
declines from the closure of Duck Pond and lower grades at Quebrada
Blanca and Carmen de Andacollo. We expect our copper cash unit costs
in 2014, before and after by-product credits, to be in the range of
US$2.00 to US$2.20 per pound and US$1.70 and US$1.90 per pound,
respectively. 
Our coal production in 2014 is expected to be in the range of 26 to
27 million tonnes. Our actual production will depend primarily on
customer demand for deliveries of steelmaking coal. Depending on
market conditions and the sales outlook, we may adjust our production
plans. We have the flexibility to devote additional resources to
pre-stripping in these circumstances. Our current production capacity
is approximately 28 million tonnes, but our actual production will
ultimately depend on the demand from our customers. Our plan for 2014
includes a significant increase in the average waste haul distance
for our coal operation, which will have a significant effect on unit
costs and this trend will continue in 2015. 
Our zinc in concentrate production in 2014 is expected to be in the
range of 555,000 to 585,000 tonnes compared with 623,000 tonnes in
2013 as Red Dog's production is expected to decrease by approximately
25,000 tonnes, and our share of Antamina is expected to decline by
15,000 tonnes. Refined zinc production from our Trail metallurgical
complex in 2014 is expected to be in the range of 280,000 to 290,000
tonnes compared with 290,000 tonnes in 2013. 
Capital Expenditures 
Our forecast of approved capital expenditures, including $700 million
of capitalized production stripping costs, for 2014 is expected to be
approximately $2.6 billion and is summarized in the following table:  


 
----------------------------------------------------------------------------
                                                                            
                                   Major    New Mine Capitalized            
($ in millions)   Sustaining Enhancement Development   Stripping       Total
----------------------------------------------------------------------------
                                                                            
Copper           $       235 $       100 $       120 $       255 $       710
Coal                     215          70          25         415         725
Zinc                     150           -          15          30         195
Energy                     -           -         955           -         955
Corporate                 20           -           -           -          20
----------------------------------------------------------------------------
                                                                            
                 $       620 $       170 $     1,115 $       700 $     2,605
----------------------------------------------------------------------------

 
These amounts do not include expenditures on new mine development
projects which have not received board approval and which would be
incurred should those projects proceed.  
Major enhancement projects in 2014 include: $70 million for the
completion of Highland Valley's mill optimization project and $70
million at our coal operations. New mine development in 2014 includes
$100 million for Quebrada Blanca Phase 2, $25 million for Quintette,
$850 million for Fort Hills and $105 million for our Frontier oil
sands project. 
The amount and timing of actual capital expenditures is also
dependent upon being able to secure permits, equipment, supplies,
materials and labour on a timely basis and at expected costs to
enable the projects to be completed as currently anticipated. We may
change capital spending plans for the balance of this year and next,
depending on commodity markets, our financial position, results of
feasibility studies and other factors. 
Foreign Exchange and Debt Revaluation  
The sales of our products are denominated in U.S. dollars, while a
significant portion of our expenses are incurred in local currencies,
particularly the Canadian dollar. Foreign exchange fluctuations can
have a significant effect on our operating margins, unless such
fluctuations are offset by related changes to commodity prices. 
Our U.S. dollar denominated debt is subject to revaluation based on
changes in the Canadian/U.S. dollar exchange rate. As at December 31,
2013, all of our U.S. dollar denominated debt is designated as a
hedge against our U.S. dollar denominated foreign operations. As a
result, any foreign exchange gains or losses arising on our
designated U.S. dollar debt are recorded in other comprehensive
income.  
FINANCIAL INSTRUMENTS AND DERIVATIVES 
We hold a number of financial instruments and derivatives, which are
recorded on our balance sheet at fair value with gains and losses in
each period included in other comprehensive income and profit for the
period as appropriate. The most significant of these instruments are
marketable securities, foreign exchange forward sales contracts,
metal-related forward contracts and settlements receivable and
payable. Some of our gains and losses on metal-related financial
instruments are affected by smelter price participation and are taken
into account in determining royalties and other expenses. All are
subject to varying rates of taxation depending on their nature and
jurisdiction. 
QUARTERLY EARNINGS AND CASH FLOW 


 
(in                                                                         
 millions,                                                                  
 except for                                                                 
 share data)              2013                            2012              
----------------------------------------------------------------------------
                  Q4      Q3      Q2      Q1      Q4      Q3      Q2      Q1
                                                                            
Revenues     $ 2,376 $ 2,524 $ 2,152 $ 2,330 $ 2,730 $ 2,505 $ 2,561 $ 2,547
                                                                            
Gross profit     546     597     582     701     825     827     880     992
                                                                            
EBITDA((i))      766     815     670     902     653     861     933     848
                                                                            
Profit (note                                                                
 1)              232     267     143     319     200     256     354     258
                                                                            
Earnings per                                                                
 share       $  0.40 $  0.46 $  0.25 $  0.55 $  0.34 $  0.44 $  0.60 $  0.44
                                                                            
Cash flow                                                                   
 from                                                                       
 operations      769     656     690     763     911     729     965     813
----------------------------------------------------------------------------
                                                                            
(1) Attributable to shareholders of the company.                            
                                                                            
((i)) This is a non-GAAP financial measure. See "Use Of Non-GAAP Financial  
Measures" for more information.                                             

 
OUTSTANDING SHARE DATA 
As at February 12, 2014 there were 566.9 million Class B subordinate
voting shares and 9.4 million Class A common shares outstanding. In
addition, there were 8.3 million director and employee stock options
outstanding with exercise prices ranging between $4.15 and $58.80 per
share. More information on these instruments and the terms of their
conversion is set out in Note 21 of our 2012 year-end financial
statements.  
USE OF NON-GAAP FINANCIAL MEASURES 
Our financial results are prepared in accordance with International
Financial Reporting Standards ("IFRS"). This document refers to gross
profit before depreciation and amortization, EBITDA, adjusted profit,
adjusted earnings per share, net debt, debt to debt-plus-equity
ratio, and the net debt to net debt-plus-equity ratio, which are not
measures recognized under IFRS in Canada and do not have a
standardized meaning prescribed by IFRS or Generally Accepted
Accounting Principles ("GAAP") in the United States.  
Gross profit before depreciation and amortization is gross profit
with depreciation and amortization added back. EBITDA is profit
attributable to shareholders before net finance expense, income and
resource taxes, and depreciation and amortization. For adjusted
profit, we adjust profit attributable to shareholders as reported to
remove the effect of certain types of transactions that in our
judgement are not indicative of our normal operating activities or do
not necessarily occur on a regular basis. Adjusted earnings per share
is calculated by dividing the adjusted profit amount by our reported
weighted average shares outstanding. We believe that disclosing these
measures assist readers in understanding the cash generating
potential of our business in order to provide liquidity to fund
working capital needs, service outstanding debt, fund future capital
expenditures and investment opportunities, and pay dividends. 
Net debt is total debt less cash and cash equivalents. The debt to
debt-plus-equity ratio takes total debt as reported and divides that
by the sum of total debt plus total equity. The net debt to net
debt-plus-equity ratio takes net debt and divides that by the sum of
net debt plus total equity. These measures are disclosed as we
believe they provide readers with information that allows them to
assess our potential financing needs and capacity and the ability to
meet our short and long-term financial obligations. 
The measures described above do not have standardized meanings under
IFRS, may differ from those used by different issuers, and may not be
comparable to such measures as reported by others. These measures
have been derived from our financial statements and applied on a
consistent basis as appropriate. We disclose these measures because
we believe they assist readers in understanding the results of our
operations and financial position and are meant to provide further
information about our financial results to investors. These measures
should not be considered in isolation or used in substitute for other
measures of performance prepared in accordance with IFRS. 
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION 
This news release contains certain forward-looking information and
forward-looking statements as defined in applicable securities laws.
All statements other than statements of historical fact are
forward-looking statements. These forward-looking statements,
principally under the heading "Outlook," but also elsewhere in this
document, include estimates, forecasts, and statements as to
management's expectations with respect to, among other things,
anticipated costs and production at our business units and individual
project and operations and expectation that we will meet our
production guidance, sales volume and selling prices for our products
(including settlement of coal contracts with customers), the expected
timing of the submission of the SEIA for the Quebrada Blanca
supergene facilities, statements under the heading "Copper
Development Projects", the mine life, capital cost and timing of
first oil from the Fort Hills Project, the start-up date of new acid
plant at Trail and water treatment plant at Line Creek, timing of the
stages of the Frontier project review process anticipated capital
expenditures and demand and market outlook for commodities. These
forward-looking statements involve numerous assumptions, risks and
uncertainties and actual results may vary materially. 
These statements are based on a number of assumptions, including, but
not limited to, assumptions regarding general business and economic
conditions, the supply and demand for, deliveries of, and the level
and volatility of prices of, zinc, copper and coal and other primary
metals and minerals as well as oil, and related products, the timing
of the receipt of regulatory and governmental approvals for our
development projects and other operations, our costs of production
and production and productivity levels, as well as those of our
competitors, power prices, continuing availability of water and power
resources for our operations, market competition, the accuracy of our
reserve estimates (including with respect to size, grade and
recoverability) and the geological, operational and price assumptions
on which these are based, conditions in financial markets, the future
financial performance of the company, our ability to attract and
retain skilled staff, our ability to procure equipment and operating
supplies, positive results from the studies on our expansion
projects, our coal and other product inventories, our ability to
secure adequate transportation for our products, our ability to
obtain permits for our operations and expansions, our ongoing
relations with our employees and business partners and joint
venturers. The foregoing list of assumptions is not exhaustive.
Events or circumstances could cause actual results to vary
materially. 
Factors that may cause actual results to vary materially include, but
are not limited to, changes in commodity and power prices, changes in
market demand for our products, changes in interest and currency
exchange rates, acts of foreign governments and the outcome of legal
proceedings, inaccurate geological and metallurgical assumptions
(including with respect to the size, grade and recoverability of
mineral reserves and resources), unanticipated operational
difficulties (including failure of plant, equipment or processes to
operate in accordance with specifications or expectations, cost
escalation, unavailability of materials and equipment, government
action or delays in the receipt of government approvals, industrial
disturbances or other job action, adverse weather conditions and
unanticipated events related to health, safety and environmental
matters), union labour disputes, political risk, social unrest,
failure of customers or counterparties to perform their contractual
obligations, changes in our credit ratings, unanticipated increases
in costs to construct our development projects, difficulty in
obtaining permits, inability to address concerns regarding permits of
environmental impact assessments, and changes or further
deterioration in general economic conditions. Our Fort Hills project
is not controlled by us and construction and production schedules may
be adjusted by our partners. 
Statements concerning future production costs or volumes, and the
sensitivity of the company's profit to changes in commodity prices
and exchange rates are based on numerous assumptions of management
regarding operating matters and on assumptions that demand for
products develops as anticipated, that customers and other
counterparties perform their contractual obligations, that operating
and capital plans will not be disrupted by issues such as mechanical
failure, unavailability of parts and supplies, labour disturbances,
interruption in transportation or utilities, adverse weather
conditions, and that there are no material unanticipated variations
in the cost of energy or supplies.  
We assume no obligation to update forward-looking statements except
as required under securities laws. Further information concerning
risks and uncertainties associated with these forward-looking
statements and our business can be found in our Annual Information
Form for the year ended December 31, 2012, filed on SEDAR and on
EDGAR under cover of Form 40-F. 
WEBCAST 
Teck will host an Investor Conference Call to discuss its Q4/2013
financial results at 11:00 AM Eastern time, 8:00 AM Pacific time, on
Thursday, February 13, 2014. A live audio webcast of the conference
call, together with supporting presentation slides, will be available
at our website at www.teck.com. The webcast is also available at
www.earnings.com. The webcast will be archived at www.teck.com. 


 
Teck Resources Limited                                                      
Consolidated Statements of Income                                           
(Unaudited)                                                                 
                                                                            
--------------------------------------------------------------------------- 
(CAD$ in millions,          Three months ended            Year ended        
 except for share data)        December 31,              December 31,       
                                2013         2012         2013         2012 
--------------------------------------------------------------------------- 
                                                                            
Revenues                 $     2,376  $     2,730  $     9,382  $    10,343 
                                                                            
Cost of sales                 (1,830)      (1,905)      (6,956)      (6,819)
--------------------------------------------------------------------------- 
                                                                            
Gross profit                     546          825        2,426        3,524 
                                                                            
Other operating expenses                                                    
 General and                                                                
  administration                 (31)         (42)        (129)        (137)
 Exploration                     (20)          (8)         (86)        (102)
 Research and                                                               
  development                     (8)          (5)         (18)         (19)
 Other operating income                                                     
  (expense) (Note 1)             (80)         (54)        (216)         (24)
--------------------------------------------------------------------------- 
                                                                            
Profit from operations           407          716        1,977        3,242 
                                                                            
Finance income                    10           19           13           33 
Finance expense (Note 2)         (81)        (102)        (339)        (510)
Non-operating income                                                        
 (expense) (Note 3)               40         (314)          (6)        (848)
Share of (losses) income                                                    
 of associates                     1           (1)          (2)         (10)
                                                                            
--------------------------------------------------------------------------- 
Profit before tax                377          318        1,643        1,907 
                                                                            
Provision for income and                                                    
 resource taxes                 (134)        (101)        (633)        (767)
--------------------------------------------------------------------------- 
                                                                            
Profit for the period    $       243  $       217  $     1,010  $     1,140 
--------------------------------------------------------------------------- 
                                                                            
Profit attributable to:                                                     
 Shareholders of the                                                        
  company                $       232  $       200  $       961  $     1,068 
 Non-controlling                                                            
  interests                       11           17           49           72 
--------------------------------------------------------------------------- 
                                                                            
Profit for the period    $       243  $       217  $     1,010  $     1,140 
--------------------------------------------------------------------------- 
Earnings per share                                                          
 Basic                   $      0.40  $      0.34  $      1.66  $      1.82 
                                                                            
 Diluted                 $      0.40  $      0.34  $      1.66  $      1.82 
                                                                            
Weighted average shares                                                     
 outstanding (millions)        576.2        584.1        578.3        585.5 
                                                                            
Shares outstanding at                                                       
 end of period                                                              
 (millions)                    576.3        582.3        576.3        582.3 
--------------------------------------------------------------------------- 
                                                                            
Teck Resources Limited                                                      
Consolidated Statements of Cash Flows                                       
(Unaudited)                                                                 
--------------------------------------------------------------------------- 
                                  Three months ended        Year ended      
                                     December 31,          December 31,     
(CAD$ in millions)                    2013       2012       2013       2012 
--------------------------------------------------------------------------- 
                                                                            
Operating activities                                                        
  Profit                         $     243  $     217  $   1,010  $   1,140 
  Adjustments for:                                                          
   Depreciation and amortization       329        269      1,233        983 
   Provision for deferred income                                            
    and resource taxes                   9          8        106        250 
   Share of losses of associates        (1)         1          2         10 
   Gain on sale of investments                                              
    and assets                         (43)        (2)       (43)       (53)
   Unrealized gains on                                                      
    derivatives                          -         (1)         -       (114)
   Foreign exchange loss (gains)        (2)        (1)        12         24 
   Loss on debt repurchase               -        313          -        965 
   Finance expense                      81        102        339        510 
   Other                                20        (44)       (16)       (30)
--------------------------------------------------------------------------- 
                                                                            
                                       636        862      2,643      3,685 
  Net change in non-cash working                                            
   capital items                       133         49        235       (267)
--------------------------------------------------------------------------- 
                                       769        911      2,878      3,418 
Investing activities                                                        
  Property, plant and equipment       (541)      (572)    (1,858)    (1,700)
  Capitalized production                                                    
   stripping costs                    (185)      (151)      (744)      (732)
  Financial investments and                                                 
   other assets                        (47)       (67)      (325)      (326)
  Acquisition of SilverBirch                                                
   Energy Corporation                    -          -          -       (432)
  Proceeds from the sale of                                                 
   investments and other assets        498         14        502         51 
--------------------------------------------------------------------------- 
                                                                            
                                      (275)      (776)    (2,425)    (3,139)
Financing activities                                                        
 Issuance of debt                        -         37          -      2,767 
  Repayment of debt                    (15)      (693)       (39)    (3,027)
  Debt interest paid                   (31)       (59)      (355)      (428)
  Issuance of Class B                                                       
   subordinate voting shares             -          1          1          2 
  Purchase and cancellation of                                              
   Class B subordinate voting                                               
   shares                                -       (123)      (176)      (129)
  Dividends paid                         -          -       (521)      (469)
  Distributions to non-                                                     
   controlling interests                (4)       (11)       (38)       (50)
--------------------------------------------------------------------------- 
                                                                            
                                       (50)      (848)    (1,128)    (1,334)
                                                                            
Effect of exchange rate changes                                             
 on cash and cash equivalents           78         50        180        (83)
--------------------------------------------------------------------------- 
                                                                            
Increase (decrease) in cash and                                             
 cash equivalents                      522       (663)      (495)    (1,138)
                                                                            
Cash and cash equivalents at                                                
 beginning of period                 2,250      3,930      3,267      4,405 
--------------------------------------------------------------------------- 
                                                                            
Cash and cash equivalents at end                                            
 of period                       $   2,772  $   3,267  $   2,772  $   3,267 
--------------------------------------------------------------------------- 
                                                                            
Teck Resources Limited                                                      
Consolidated Balance Sheets                                                 
(Unaudited)                                                                 
----------------------------------------------------------------------------
                                                 December 31,   December 31,
(CAD$ in millions)                                       2013           2012
----------------------------------------------------------------------------
                                                                            
ASSETS                                                                      
                                                                            
Current assets                                                              
 Cash and cash equivalents                     $        2,772 $        3,267
 Current income and resource taxes receivable              71            141
 Trade accounts receivable                              1,232          1,285
 Inventories                                            1,695          1,783
----------------------------------------------------------------------------
                                                        5,770          6,476
                                                                            
Financial and other assets                                746            973
Investments in associates                                  24            828
Property, plant and equipment                          27,811         24,937
Deferred income and resource tax assets                   164            204
Goodwill                                                1,668          1,637
----------------------------------------------------------------------------
                                               $       36,183 $       35,055
----------------------------------------------------------------------------
LIABILITIES AND EQUITY                                                      
                                                                            
Current liabilities                                                         
 Trade accounts payable and other liabilities  $        1,784 $        1,468
 Dividends payable                                        259            262
 Current income and resource taxes payable                 61             55
 Debt                                                      59             35
----------------------------------------------------------------------------
                                                                            
                                                        2,163          1,820
                                                                            
Debt                                                    7,664          7,160
Deferred income and resource tax liabilities            5,908          5,581
Retirement benefit obligations                            479            760
Other liabilities and provisions                        1,158          1,470
                                                                            
Equity                                                                      
 Attributable to shareholders of the company           18,597         18,075
 Attributable to non-controlling interests                214            189
----------------------------------------------------------------------------
                                                       18,811         18,264
----------------------------------------------------------------------------
                                               $       36,183 $       35,055
----------------------------------------------------------------------------
                                                                            
 
1.  OTHER OPERATING INCOME (EXPENSE) 
 
--------------------------------------------------------------------------- 
                                          Three months           Year ended 
                                     ended December 31,        December 31, 
(CAD$ in millions)                       2013      2012      2013      2012 
--------------------------------------------------------------------------- 
                                                                            
Pricing adjustments                  $     10  $    (20) $    (62) $     45 
Share-based compensation                   (9)      (23)      (22)      (34)
Environmental costs                       (14)       (6)      (27)      (10)
Social responsibility and donations        (9)        -       (30)       (5)
Gain (loss) on operating assets           (14)       (2)      (33)       24 
Care and maintenance                       (2)       (3)      (10)      (12)
Commodity derivatives                      (1)        4         2         - 
Provision for closed properties           (23)       14         1        (1)
Other                                     (18)      (18)      (35)      (31)
--------------------------------------------------------------------------- 
                                                                            
                                     $    (80) $    (54) $   (216) $    (24)
--------------------------------------------------------------------------- 
 
2.  FINANCE EXPENSE 
 
--------------------------------------------------------------------------- 
                                           Three months         Year ended  
                                     ended December 31,        December 31, 
(CAD$ in millions)                       2013      2012      2013      2012 
--------------------------------------------------------------------------- 
                                                                            
Debt interest                        $     92  $     95  $    358  $    427 
Discount and financing fee                                                  
 amortization                               2         1         6        13 
Less capitalized borrowing costs          (45)      (26)     (134)      (43)
--------------------------------------------------------------------------- 
                                                                            
                                           49        70       230       397 
Net interest expense on retirement                                          
 benefit plans                              8        11        29        34 
Decommissioning and restoration                                             
 provision accretion                       19        16        69        67 
Other                                       5         5        11        12 
--------------------------------------------------------------------------- 
                                                                            
                                     $     81  $    102  $    339  $    510 
--------------------------------------------------------------------------- 
 
3.  NON-OPERATING INCOME (EXPENSE) 
 
--------------------------------------------------------------------------- 
                                           Three months         Year ended  
                                     ended December 31,        December 31, 
(CAD$ in millions)                       2013      2012      2013      2012 
--------------------------------------------------------------------------- 
                                                                            
Gain on sale of investments          $     42  $      5  $     42  $     29 
Provision for marketable securities        (1)       (7)      (32)       (7)
Foreign exchange gains (losses)             2         1       (12)      (24)
Other derivative gains (losses)            (2)        -        (2)      119 
Debt repurchase and financing costs         -      (313)        -      (965)
Other                                      (1)        -        (2)        - 
--------------------------------------------------------------------------- 
                                                                            
 
                                     $     40  $   (314) $     (6) $   (848)
--------------------------------------------------------------------------- 

Contacts:
Teck Resources Limited
Greg Waller
VP Investor Relations & Strategic Analysis
604.699.4014 
Teck Resources Limited
Marcia Smith
SVP Sustainability and External Affairs
604.699.4616
www.teck.com
 
 
Press spacebar to pause and continue. Press esc to stop.