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News Release

Teck Reports Unaudited Third Quarter Results for 2026

Sustained operating performance and record copper prices support robust third quarter results

Vancouver, B.C. – Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (Teck) today announced its unaudited third quarter results for 2026.

“Our third quarter results showcase the underlying strength of our business, with increased production, disciplined execution and record copper prices driving strong financial performance and cash generation,” said Jonathan Price, President and CEO. “Across our copper business, we increased production, lowered unit costs and delivered strong margin growth, while our zinc business continued to contribute meaningful cash flow generation. This was achieved while simultaneously dealing with severe weather events across our copper operations, prioritizing the safety of our people while maintaining solid operating performance. These results further demonstrate the strong foundation from which we are advancing toward completion of the planned merger with Anglo American.”

Highlights

Note:

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

Additional corporate information is available at www.teck.com

Financial Summary Q3 2026

Key Updates

Teck and Anglo American plc Merger of Equals

Notes:

QB Action Plan Update and Q3 Performance

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Safety and Sustainability Leadership

Guidance

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Management's Discussion and Analysis

This management's discussion and analysis (MD&A) is dated as at October 28, 2026 and should be read in conjunction with the unaudited condensed interim consolidated financial statements of Teck Resources Limited (Teck) and the notes thereto for the three and nine months ended September 30, 2026 and with the audited consolidated financial statements of Teck and the notes thereto for the year ended December 31, 2025. In this news release, unless the context otherwise dictates, a reference to “the company” or “us,” “we” or “our” refers to Teck and its subsidiaries. Additional information, including our Annual Information Form and Management’s Discussion and Analysis for the year ended December 31, 2025, is available on SEDAR+ at www.sedarplus.ca.

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

Overview

Profit Attributable to Shareholders and Adjusted Profit Attributable to Shareholders

Profit attributable to shareholders in the third quarter increased to $1.6 billion, or $3.24 per share, compared to $281 million, or $0.58 per share, in the same period last year, driven by significantly higher copper and zinc prices, higher by-product revenues, lower smelter processing charges and an impairment reversal at our Trail Operations in Q3 2026.

Adjusted profit attributable to shareholders¹ in the third quarter, taking into account the items identified in the table below, was $923 million, or $1.88 per share, compared with $372 million, or $0.76 per share, in the same period last year. The most significant after-tax adjustment relates to an impairment reversal of $667 million at our Trail Operations as a result of higher expectations for long-term commodity prices and strengthening market fundamentals for strategic metals and improved profitability due to our continued focus on cash flow generation through our optimized feed strategy. As a result of the increased asset values due to Trail's impairment reversal, we also recognized $130 million of deferred tax assets and the recovery related to this reversal.

Note:

In addition to the items identified in the table above, our results include gains and losses due to changes in market prices in respect of settlement pricing adjustments. Pricing adjustments resulted in $101 million of after-tax gains attributable to shareholders ($202 million, before tax) in the third quarter, or $0.21 per share.

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SEGMENTED RESULTS

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

Note:

COPPER SEGMENT

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Performance

Gross profit from our copper segment increased to $1.2 billion in the third quarter from $355 million in the same period last year (see table below), primarily due to significantly higher copper prices. Q3 2026 sales volumes were in line with production in the quarter, and higher than the same period last year.

Copper production increased to 115,700 tonnes in the third quarter compared with 104,100 tonnes in the same period last year. The increase was due to higher production at each of our copper operations, with the exception of Carmen de Andacollo, where production decreased as a result of extreme weather conditions, which caused an extended shutdown of the operation. Production increased at Highland Valley Copper and Antamina due to higher grades, as expected in the mine plan. Quebrada Blanca produced 47,200 tonnes of copper in the third quarter compared with 39,600 tonnes in the same period last year, which had 20 days of downtime required to raise the tailings dam crest. Following strong performance in the month of July, severe weather conditions, including heavy snowfall and high winds, caused intermittent power outages at site, shutting down dewatering and other equipment and the concentrator, which impacted mine productivity and access to higher-grade ore into September due to wet conditions in the mine. Further to these impacts, a planned maintenance shutdown was taken in September.

The table below summarizes the change in gross profit in our copper segment for the quarter.

Property, plant and equipment expenditures in the third quarter totalled $596 million. Sustaining capital totaled $288 million, of which $190 million related to QB. Growth capital of $308 million primarily related to the Highland Valley Copper Mine Life Extension (HVC MLE) project construction and development activities and Zafranal project work, outlined below.

Capitalized stripping costs were $154 million in the third quarter compared with $39 million in the same period last year. The increase relates to $70 million of capitalized stripping costs for HVC MLE with the remainder due to higher waste movement at Antamina and QB in line with mine sequencing.

Markets

In the third quarter of 2026, LME copper prices increased by 5.8% compared with the previous quarter and 44.1% over the same period last year, averaging US$6.40 per pound. The average LME copper price has now risen every quarter since Q1 2025. Spot prices continued to increase through the quarter, reaching new all-time nominal highs in September in excess of US$6.70 per pound.

The copper concentrate market remained very tight during the quarter, with the availability of concentrate to custom smelters continuing to deteriorate, partly due to the impact of El Niño-related weather conditions in Chile. Government statistics showed that Chilean copper production in August declined to its lowest level since 2011. The lack of concentrate also started to impact Chinese smelter output, with refined production falling on a year-on-year basis for the first time since 2022. Despite falling sulphuric acid prices, spot treatment and refining charges for copper concentrate continued to fall, reflecting a growing imbalance between the volume of concentrate required by smelters and the supply available from mines.

Global copper apparent demand remains robust, assisted by government spending on electrical infrastructure and technology-related capital spend. Higher prices have seen growth decelerate in certain end uses, however inventory cover remains low in key Asian consumer markets, most notably China. While the Chinese construction sector continued to act as a drag on global copper demand, this was offset by growth in other areas, most notably robotics and battery storage systems.

Global copper inventory held in exchange warehouses fell by around 60,000 tonnes in the third quarter, declining to below one million tonnes. The imbalance in the geographic distribution of global inventories widened further, with an approximate 100,000 tonne gain in Commodity Exchange (COMEX) warehouses during the third quarter, reflecting the persistent price premium of the Chicago Mercantile Exchange (CME) contract over LME. Much of this material can be viewed as unavailable to Asian consumers at present, and thus, plays only a limited role in copper price formation.

Operations

Quebrada Blanca

Highland Valley Copper

Copper production of 35,200 tonnes in the third quarter was 7,100 tonnes higher than the same period last year. The increase was primarily due to higher grades and throughput rates as we continue to process softer ore from the Lornex pit offset partially by wildfires resulting in power interruptions and drought conditions experienced during the quarter that caused insufficient site water levels to operate the mill and necessitated a 7-day shutdown in the month of August to allow water levels to recover.

Copper sales volumes of 36,600 tonnes in the third quarter were 4,900 tonnes higher than the same period last year, reflecting higher production levels in the quarter.

Operating costs in the third quarter of $283 million, before changes in inventory and capitalization of stripping costs, were $50 million higher than the same period last year, driven primarily by higher diesel costs and increased labour and contractor costs related to higher material movement. Our collective bargaining agreement with USW Local 7619 expired on September 30, 2026. Strike action by USW Local 7619 commenced at HVC on October 24, 2026. Operations are currently continuing at a reduced capacity. However, we continue to expect HVC’s 2026 annual copper production guidance to be towards the high end of our previously disclosed guidance range. The impact on overall production will depend on the duration of the labour action. We are committed to reaching a collective agreement that is fair and reasonable for employees and supports the ongoing viability of the operation.

Capitalized stripping costs in the third quarter were $78 million compared with no capitalized stripping in the same period last year due to the waste stripping requirements for HVC MLE. Capitalized stripping activity is expected to continue to ramp up in the fourth quarter as per the mine plan and is expected to be impacted by changes in diesel prices.

HVC MLE project

Construction activities advanced during the quarter, with a planned temporary shutdown of one grinding line to facilitate processing plant upgrades. Work continued on plant upgrades, tailings infrastructure, power infrastructure, earthworks, pipelines and brownfield work. During the quarter, the project surpassed 1.5 million hours worked without a high-potential incident or lost-time injury, completed its largest concrete pour to date, and advanced infrastructure and construction work. Overall construction progress surpassed 25% during the quarter.

Note:

HVC MLE total project capital cost is estimated to be between $2.1–$2.4 billion and is expected to be spent between 2025 and 2028, which is unchanged from our previous disclosures. HVC MLE project capital expenditures were $230 million in the third quarter of 2026, and we continue to expect 2026 project capital expenditures to be between $900 million–$1.2 billion.

Copper production (100% basis) of 123,000 tonnes in the third quarter was 18,700 tonnes higher than the same period last year. The increase was primarily due to higher copper head grades and strong concentrator performance. Zinc production (100% basis) was 38,500 tonnes in the third quarter compared with 126,700 tonnes in the same period last year due to the higher ratio of copper-zinc ore processed in Q3 2025, as expected.

Operating costs in the third quarter, before changes in inventory and capitalization of stripping costs, of US$124 million (22.5% share) were US$26 million higher than the same period last year, primarily due to higher diesel prices, higher labour costs related to workers' profit sharing participation, and higher concentrator performance, as noted above.

Carmen de Andacollo

Copper production of 5,700 tonnes in the third quarter decreased by 7,200 tonnes compared to the same period last year. Production was significantly impacted by extreme weather conditions during the quarter, including heavy rainfall and flooding that resulted in an extended suspension of operations and a phased restart of processing activities. Production improved progressively through the quarter as operations were restored and plant throughput increased in the month of September returning to full production by month end.

Operating costs in the third quarter of US$36 million, before changes in inventory and capitalization of stripping costs, were US$26 million lower than the same period last year, due to lower production volumes during the quarter resulting from the suspension of operations.

Cost of Sales

Cost of sales was $1.2 billion in the third quarter compared with $1.3 billion in the same period last year. We recorded $359 million of depreciation and amortization expense in the third quarter compared with $385 million in the same period last year as a result of the extension of useful lives at HVC from sanctioning of the HVC MLE project. The decreases in cost of sales were primarily the result of lower expensed waste material movement at HVC, lower transportation costs at QB, and the reclassification of excess fixed overhead costs arising from extreme weather-related events during the quarter.

Excluding QB, total cash unit costs¹ in the third quarter were US$1.76 per pound compared to US$2.18 per pound in the same period last year primarily due to higher production volumes and significantly lower copper smelter processing charges, which were negative in Q3 2026. Including QB, total cash unit costs¹ in the third quarter were US$2.29 per pound compared to US$2.69 per pound in the same period last year due to lower operating costs after inventory change and capitalization of stripping costs, lower smelter processing charges and higher production.

Excluding QB, net cash unit costs¹ in the third quarter were US$1.33 per pound, or US$0.23 per pound lower than the same period last year primarily due to the above-noted total unit cost factors, partially offset by lower zinc by-product credits at Antamina from a higher proportion of copper-only ore produced this quarter. Including QB, net cash unit costs¹ for the third quarter were US$1.77 per pound, US$0.32 per pound lower than the same period last year due to the above noted total unit cost factors, and increased silver and molybdenum by-product credits from QB, offset by the lower zinc by-product credits at Antamina.

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The table below presents our copper unit costs including QB.

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Outlook

Our 2026–2028 annual production and 2026 annual cost guidance for our copper segment is outlined in our guidance tables on pages 30–33.

Annual production plans are based on mine plans which contain normal grade variability and periodic planned maintenance shutdowns, which are reflected in our annual production guidance for our operations. At HVC, based on our current mine plan, we expect lower grades, mill throughput and recoveries in the fourth quarter of 2026 as we process less Lornex ore and more ore from the Bethlehem and Highmont pits, and we complete mill upgrade work related to the HVC MLE project.

Despite the impact of severe weather conditions in the third quarter, our annual 2026 copper production guidance for QB of 200,000 to 235,000 tonnes is unchanged. Based on strong operational performance through September 30, 2026 at HVC, we expect our 2026 annual copper production to be towards the high end of our previously disclosed guidance of 115,000 to 135,000 tonnes. As a result of the significant impact of extreme weather conditions in Q3 at Carmen de Andacollo, we expect our 2026 annual copper production to be at the low end of our previously disclosed guidance of 45,000 to 55,000 tonnes.

We also expect our total annual 2026 molybdenum production to be at the low end of our previously disclosed guidance range of 5,000 to 6,200 tonnes.

As a result of strong year-to-date by-product pricing, we have reduced our 2026 annual copper net cash unit cost¹ guidance to US$1.80–$2.00 per pound compared to our previously disclosed guidance range of US$1.85–$2.20 per pound.

As previously disclosed, we are advancing construction of Rock Bench 6 at the QB TMF, which was not included in our 2026 annual capital expenditure guidance and as a result, we expect to be at the high end of our previously disclosed 2026 annual sustaining capital guidance in our copper segment of between $1.2–$1.3 billion. Our 2026 annual capitalized stripping cost guidance for our copper segment remains unchanged. Costs are expected to increase compared to 2025 as stripping activities increase to enable HVC MLE where capitalized stripping costs are expected to remain at elevated levels through 2029. The year-to-date increase in diesel costs has directly impacted our capitalized stripping costs and as such, we expect our 2026 annual capitalized stripping expenditures to be at the high end of our previously disclosed guidance range of between $450–$550 million.

Our 2026 growth capital expenditure guidance of $1.3–$1.6 billion is unchanged and includes $900 million–$1.2 billion relating to HVC MLE. The remaining growth capital primarily relates to our other near-term copper growth projects including Zafranal, and is focused on advancing engineering, feasibility studies, and permitting.

Projects and Copper Growth

As previously disclosed, we are prioritizing capital and resources towards QB while advancing the execution of HVC MLE. In parallel, we continue to advance our copper growth portfolio through permitting land access, engineering, technical studies, and project development activities at Zafranal and Minas de San Nicolás, S.A.P.I. de C.V. (San Nicolás). Feasibility studies, detailed engineering, and early works are underway to position these projects for future sanction decisions.

Zafranal

Activities continued during the quarter in support of a future sanction decision. Work progressed across exploration, permitting, land access, community engagement and technical studies. Commercial activities also advanced, including evaluation of power supply and infrastructure options to support future project development.

Permitting, stakeholder engagement, land tenure and environmental programs continued to support pre-sanction activities and execution readiness.

Minas de San Nicolás

Activities continued during the quarter to support a potential future sanction decision. Work progressed on power and water planning, condemnation drilling and geological evaluation in proximity to the projected mine area.

Following receipt of the land use change (ETJ) and the environmental impact assessment (MIA-R) permits in July 2026, work continued during the quarter on engineering, critical infrastructure and permitting activities, including advancement of secondary permits for power and water infrastructure, as well as other pre-construction authorizations. These activities continue to refine project scope, capital cost estimates and an execution plan, as the project moves toward a potential sanction decision in late 2027 to early 2028, subject to the receipt of the required permits and authorizations.

ZINC SEGMENT

Gross profit from our zinc segment was $465 million in the third quarter, an increase of $160 million compared to the same period last year. The increase was primarily due to higher zinc prices and higher by-product revenues at both Red Dog and Trail, partially offset by higher cost of sales attributable to increased concentrate purchase costs and royalty costs compared to the same period last year. Gross profit before depreciation and amortization² at Trail Operations improved significantly in the third quarter to $169 million from $54 million in the same period last year due to our continued focus on improving Trail's profitability and cash generation through value driven optimization of feed sources and production, including prioritizing the processing of residues in the near term based on suitable market conditions. The benefit of these initiatives, combined with improved pricing for by-products such as silver and germanium, contributed to an increase in gross profit before depreciation and amortization² in the third quarter compared to the same period last year.

Zinc production at Red Dog in the third quarter decreased by 15,500 tonnes from the same period last year to 106,500 tonnes, primarily due to lower grades, as expected in the mine plan. Red Dog's lead production of 20,600 tonnes decreased by 6,800 tonnes compared to the same period last year due to lower grades. Zinc in concentrate sales volumes from Red Dog of 246,700 tonnes in the third quarter were 26,100 tonnes lower than the same period last year, and were within our previously disclosed guidance range of 220,000 to 270,000 tonnes.

Refined zinc production at Trail Operations in the third quarter was 61,900 tonnes, an increase of 9,300 tonnes compared to the same period last year higher as a result of the zinc electrolytic plant running at full capacity through the quarter, compared to the same period last year where we were operating at lower rates. We continued to optimize feed sources, including balancing the processing of stockpiled residues with the processing of residues generated from the zinc circuit, as expected during the quarter.

Notes:

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

Property, plant and equipment expenditures in the third quarter totalled $117 million, including $42 million for sustaining capital, of which $17 million related to our Trail Operations and $25 million related to our Red Dog Operations. The remainder of the expenditures related to our Red Dog mine life extension project.

Markets

Zinc prices on the LME in the third quarter of 2026 averaged US$1.74 per pound, representing an 11% increase from the previous quarter and a 36% increase from the same period last year. In early September, the LME zinc price increased to above US$1.80 per pound for the first time since 2022. Subsequently, Chinese refined zinc exports increased, reflecting the ability of Chinese smelters to act as swing suppliers to global markets.

The zinc concentrate market experienced a further sharp decline in spot treatment charges, with assessments reaching new all-time lows. After remaining strong during the first half of the year, Chinese concentrate imports trended lower on a year-over-year basis during the third quarter, reflecting weaker than expected mine supply growth and strong smelter demand, despite weakening smelter economics. The Chinese domestic zinc concentrate market also experienced negative treatment charges for the first time on record during the third quarter.

Global reported zinc metal inventory fell sequentially during Q3 2026, with the 73,000 tonne decline representing the sharpest sequential drop since Q3 2024. Overall inventory cover remained low in weeks of consumption. The U.S. Midwest premium for refined zinc (over LME cash) was relatively stable during the quarter, amid resilient North American demand. Global zinc demand in Q3 was roughly flat on a year-on-year basis.

Germanium dioxide prices reached record levels during the quarter amid a global focus on security of supply, while exports from China remained well below levels seen in recent years.

Operations

Red Dog

Zinc production in the third quarter of 106,500 tonnes decreased from 122,000 tonnes produced in the same period last year primarily due to lower grades, as expected in the mine plan. Lead production of 20,600 tonnes in the third quarter was lower than the 27,400 tonnes produced in the same period last year, reflecting lower grades.

Zinc sales volumes of 246,700 tonnes in the third quarter were 26,100 tonnes lower than the same period last year, consistent with lower production. Sales volumes in the third quarter were within our previously disclosed guidance range of 220,000 to 270,000 tonnes.

Operating costs, before changes in inventory, capitalization of stripping costs and royalties were US$133 million in the third quarter, US$11 million lower than the same period last year, primarily due to water treatment costs, partially offset by higher fuel costs, as the operation began to use diesel shipments from 2026. Red Dog procures diesel for the full year during the shipping season, the majority of which was delivered in the third quarter.

Red Dog Mine Life Extension (Red Dog MLE)

We continue to advance the Red Dog MLE project, located in Alaska's Red Dog district approximately 10 to 20 kilometres from our existing Red Dog Operations. The prefeasibility study is progressing, with the updated mine plan completed, underground access development planning advanced, and key exploration and drilling programs completed in support of project development. On September 1, 2026, the project qualified for the FAST-41 federal permit review program following the submission of federal permit applications. For 2026, we expect growth capital expenditures of between $200–$250 million, unchanged from our previously disclosed guidance. Activities during the quarter focused on engineering studies, permitting, baseline environmental assessments and project development. The updated prefeasibility study remains on track for completion in December 2026 and is expected to support a potential underground exploration ramp development decision in the second half of 2027.

Trail Operations

We continued to optimize feed sources, including balancing the processing of stockpiled residues with the processing of residues generated from the zinc circuit as expected during the quarter. Refined zinc production of 61,900 tonnes in the third quarter was 9,300 tonnes higher than the same period last year. Refined lead production was 21,800 tonnes in the third quarter, 4,200 tonnes higher than the same period last year. Production of by-products, such as silver and germanium, was lower compared to the same period last year.

Operating costs, before changes in inventory, in the third quarter were $16 million or 11% higher than the same period last year at $160 million, primarily due to increased operating costs as the zinc circuit ran at full production rates.

Our continued focus at Trail has been on improving its profitability and cash generation through value-driven optimization of feed sources and production, including prioritizing the processing of residues in the near term based on suitable market conditions. The benefit of these initiatives, combined with improved pricing for by-products such as silver and germanium, contributed to an increase in profitability in the third quarter compared to the same period last year.

In the third quarter, we recorded a pre-tax impairment reversal of $888 million at our Trail Operations as a result of higher expectations for long-term commodity prices and strengthening market fundamentals for strategic metals and improved profitability due to our continued focus on cash flow generation through our optimized feed strategy.

On July 7, 2026, Teck, CGF, and NRCan’s "Canada Critical Minerals Accelerator" announced the signing of a Strategic Investment Agreement (the Agreement) to support the potential expansion of production capacity for germanium, gallium, and antimony at Trail Operations smelting and refining complex in British Columbia.

The Agreement establishes the commercial framework for an equity-like investment by CGF of up to $400 million directly into the facility, as part of an up to $850 million-dollar potential total investment by Teck to sustain and enhance critical minerals processing capacity at Trail Operations from a portfolio of feed sources. The Agreement also provides for the establishment of an offtake structure with the Government of Canada, including offtake rights for a portion of future germanium, antimony and gallium produced by Trail, that will build on Canada’s position as a reliable critical minerals supplier to global partners.

The Agreement reflects the intent of both parties to work towards an investment by CGF to unlock the advancement of Trail’s Strategic Metals Initiative, that could double Trail’s existing production capacity for germanium and antimony, and potentially add new gallium production capacity. Realization of the commercial arrangements contemplated by the Agreement remains subject to certain conditions, including the negotiation and execution of definitive documentation and satisfaction of applicable approvals, including demonstration of the value of the initiative in accordance with our capital allocation framework.

Cost of Sales

Cost of sales was $1.6 billion in the third quarter compared with $1.4 billion in the same period last year. The increase was primarily driven by increased concentrate purchase costs at Trail due to higher commodity prices and higher royalty costs tied to the profitability of Red Dog.

Total cash unit costs¹ for Red Dog were US$0.71 per pound in the third quarter, US$0.10 per pound higher than the same period last year due to processing lower-grade ore. Net cash unit costs¹ of US$0.27 per pound in the third quarter were US$0.10 per pound higher than the same period last year due to the above-noted lower-grade ore, offset by higher by-product prices resulting in a similar cash margin for by-products. Our third quarter 2026 net cash unit costs¹ also reflect the normal seasonality of sales at Red Dog.

Outlook

Our 2026–2028 annual production and 2026 annual cost guidance for our zinc segment is outlined in our guidance tables on pages 30–33. As a result of our strong year-to-date cost performance and by-product pricing, we have updated our annual 2026 total and net cash unit cost guidance for our zinc business, as outlined below.

Refined zinc production at Trail in Q4 2026 is expected to be similar to the third quarter as we continue to optimize feed sources, including balancing the processing of stockpiled residues with the processing of residues generated from the zinc circuit. Shutdowns for required maintenance in both the zinc and lead circuits are expected in the fourth quarter in line with our plans and as reflected in our previously disclosed annual 2026 production guidance which will reduce production of by-products. Based on performance through September 30, 2026, we expect our 2026 annual refined zinc production to be at the high end of our previously disclosed guidance of 190,000 to 230,000 tonnes.

We also expect our 2026 annual zinc in concentrate production to be at the high end of our previously disclosed guidance range of 410,000 to 460,000 tonnes due to strong year-to-date performance at Red Dog.

As previously disclosed, grades at Red Dog are expected to decrease as the operation nears the end of mine life. Mining in the Qanaiyaq pit was completed in the third quarter with the Aqqaluk pit as the remaining ore source. Higher than average precipitation events have caused slippage along a known fault in the Aqqaluk pit requiring mining in areas with lower grade, resulting in lower production of zinc in concentrate expected in 2026, 2027 and 2028, as reflected in our previously disclosed guidance.

The Red Dog shipping season commenced on July 12, 2026 and is expected to be completed by early November 2026. We expect sales of zinc in concentrate at Red Dog to be in the range of 65,000 to 75,000 tonnes in the fourth quarter of 2026, reflecting the normal seasonality of Red Dog sales.

As a result of our strong year-to-date cost performance and by-product pricing, we have reduced our 2026 annual zinc total cash unit cost¹ guidance to US$0.70–$0.80 per pound, compared to our previously disclosed guidance of US$0.80–$0.90 per pound, and our 2026 annual zinc net cash unit cost¹ guidance to US$0.30–$0.40 per pound, compared to our previously disclosed guidance of US$0.65–$0.75 per pound.

Our 2026 annual sustaining capital expenditures in our zinc segment are expected to be between $150–$200 million, unchanged from our previously disclosed guidance. Capitalized stripping costs in 2026 are expected to decrease to $5–$10 million as Red Dog nears the end of mine life. As outlined above, Red Dog MLE has several high-quality opportunities that could extend the mine life of Red Dog beyond 2032. The expected 2026 capital spend for these activities is $200–$250 million.

OTHER OPERATING INCOME AND EXPENSES

Other operating income, net of other expense, was $28 million in the third quarter compared with $50 million of expense in the same period last year. The change in the third quarter of 2026 was primarily due to $202 million of positive settlement pricing adjustments in the quarter compared with $108 million in the same period last year and $38 million of gains related to changes in our environmental provisions compared with $40 million of losses in the same period last year. These increases were partially offset by $47 million of losses on our commodity derivatives and $54 million of costs associated with extreme weather-related shutdowns during the quarter.

The table below outlines our outstanding receivable positions, which are valued using provisional prices at September 30, 2026 and June 30, 2026.

In the third quarter, our total general and administration and research and innovation costs were $13 million lower than the same period last year primarily due to the timing of expenditures. For the nine months ended September 30, 2026, our total general and administration and research and innovation costs were in line with the prior year despite higher profit-sharing bonuses related to improved profitability, reflecting ongoing structural cost reductions across our corporate functions.

In the third quarter, our finance income was $60 million, $6 million higher than the same period last year due to higher investment income earned on increased cash balances.

Finance expense includes the interest on our debt, QB project financing, advances from Sumitomo Metal Mining Co., Ltd. and Sumitomo Corporation (SMM/SC), and lease liabilities, as well as letters of credit and standby fees, the interest components of our pension obligations, and the accretion on our decommissioning and restoration provisions, less any interest that we capitalize against our development projects. Our finance expense decreased to $212 million in the third quarter compared with $229 million in the same period last year, primarily due to scheduled semi-annual repayments of the QB project finance facility and higher interest capitalized in respect of the HVC MLE project.

Non-operating expense, net of non-operating income, was $97 million in the third quarter compared with $52 million of expense in the same period last year. The most significant items in the quarter were $59 million of integration planning and transaction costs and a $31 million loss relating to changes in the carrying value of the financial liability for the preferential dividend stream to Corporación Nacional del Cobre de Chile (Codelco). In the same period last year the most significant item within non-operating expense, net of non-operating income, was a $58 million loss relating to changes in the carrying value of the financial liability for the preferential dividend stream to Codelco.

Income Taxes

Provision for income and resource taxes was $695 million, or 31% of pre-tax profit. Our effective tax rate this quarter was higher than the Canadian statutory income tax rate of 27%, primarily due to resource taxes, and partially offset by the recognition of $130 million of deferred tax assets in connection with our Trail Operations. Excluding this item, our effective tax rate for the quarter would have been approximately 36%.

We expect our long-term effective tax rate to be in the range of 39% to 41%, however, quarterly and annual results may vary due to the relative amount of operating margins, the scope and timing of development expenditures for the Highland Valley Copper and Red Dog MLE and other copper growth projects, certain corporate and finance expenses that are not deductible for resource tax purposes, the statutory tax rates in the jurisdictions in which we operate, impairments and impairment reversals, and other factors. We are subject to and pay income and resource taxes in all jurisdictions that we operate in.

On October 9, 2026, Chile enacted tax legislation that gradually reduces the Chilean corporate income tax rate from 27% to 23% between 2027 and 2029. As the legislation was enacted subsequent to September 30, 2026, the effect of this change has not been recognized in this quarter. We estimate the impact from the remeasurement of our Chilean net operating loss carryforwards, net of other temporary differences, at the lower future tax rates will result in a one-time charge to deferred income tax expense of approximately $70 million.

FINANCIAL POSITION AND LIQUIDITY

Our strong balance sheet provides resilience to market uncertainty. As at September 30, 2026, our financial position and liquidity remained very strong. Our debt position, net debt (cash)² and credit ratios are summarized in the table below.

Our liquidity was $10.9 billion as at September 30, 2026, including $6.7 billion of cash. Our cash balance increased by $1.7 billion as of September 30, 2026 compared to December 31, 2025 due to strong cash flows generated by operations.

We returned $61 million to shareholders in the third quarter reflecting our regular base quarterly dividend. During the interim period prior to the closing of the Merger, the arrangement agreement restricts Teck from declaring or paying additional dividend amounts exceeding $0.125 per share per fiscal quarter without the prior approval of Anglo American. We have not executed share buybacks since July 25, 2025, as Teck is restricted from repurchasing securities under the Merger arrangement agreement, and we did not renew our normal course issuer bid in Q4 2025.

Teck maintains a limited recourse QB project financing facility with a remaining balance of US$1.5 billion at September 30, 2026. Pre-completion guarantees for the facility were released upon achievement of project final completion in 2025.

We maintain various committed and uncommitted credit facilities for liquidity and for the issuance of letters of credit. Our US$3.0 billion committed revolving credit facility is a sustainability linked-facility, which involves pricing adjustments that are aligned with our sustainability performance and strategy. Our sustainability performance over the term of the facility is measured by greenhouse gas (GHG) intensity, percentage of women in Teck's workforce, and safety. This facility does not contain an earnings- or cash flow-based financial covenant, a credit rating trigger or a general material adverse effect borrowing condition. The only financial covenant under our bank agreements is a requirement for our adjusted net debt to capitalization ratio not to exceed 60%. That ratio was negative at September 30, 2026. Antamina maintains a US$1.0 billion loan agreement that matures in June of 2030. Our 22.5% share of the loan is US$225 million. The loan is non-recourse to us and to the other Antamina owners.

We also have various other uncommitted credit facilities, standby letters of credit and surety bonds that primarily secure our reclamation obligations. The amounts issued under these facilities totalled $2.7 billion at September 30, 2026. We may be required to post additional security in respect of reclamation at our operating sites in future periods as additional land is disturbed, regulatory requirements change or closure plans are updated.

Operating Cash Flow

Cash flow from operating activities was a source of cash of $1.6 billion in Q3 2026, compared with $647 million in the same period last year. The improvement was primarily driven by higher profitability reflecting increased commodity prices and lower smelter processing charges. These positive factors were partially offset by higher income tax payments resulting from increased profitability.

Changes in working capital resulted in a use of cash of $236 million in Q3 2026, compared with a use of cash of $272 million in the same period last year, primarily related to higher trade receivables due to higher commodity prices and the timing of sales at Red Dog due to the shipping season.

During Q3 2026, the use of cash from changes in working capital was primarily related to the seasonal sales pattern at our Red Dog operation, where significant sales volumes occur in the third quarter each year. As a result, Red Dog had a significant increase in trade receivables, reflecting higher zinc and lead sales volumes and metal prices. The increase in trade receivables was partially offset by a reduction in production inventories following the commencement of the Red Dog shipping season in early July and an increase in the NANA royalty accrual, which will be paid out in Q1 2027. We expect Red Dog's trade receivables to be substantially reduced in the fourth quarter providing a source of cash from changes in working capital.

Investing Activities

Capital expenditures on property, plant and equipment were $716 million in Q3 2026, compared with $488 million in the same period last year, reflecting continued investment in sustaining operations and near-term copper growth. Sustaining capital expenditures were $330 million, up from $278 million in the same period last year. The largest components included $190 million at QB, primarily for TMF development, and $53 million at Antamina. Growth capital expenditures increased to $383 million, consisting of $230 million related to the HVC MLE project, $75 million related to the Red Dog MLE project and $78 million related to our other copper growth projects.

Capitalized stripping costs increased to $157 million in the third quarter compared with $48 million in the same period last year, reflecting stripping activities related to HVC MLE with the remainder due to higher waste movement at Antamina and QB in line with mine sequencing.

The table below summarizes our year-to-date capital spending for 2026.

Financing Activities

Cash flow from financing activities in Q3 2026 included $50 million of interest paid and $61 million of base quarterly dividends paid. No shares were repurchased in Q3 2026, as the normal course issuer bid was not renewed following the announcement of the Merger. In Q3 2025, financing activities included $144 million of share repurchases, $48 million of interest paid and $61 million of dividends paid.

FINANCIAL RISK MANAGEMENT

Foreign exchange exposure

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

U.S. dollar debt and hedging

Our U.S. dollar denominated debt is subject to revaluation based on changes in the Canadian/U.S. dollar exchange rate. As at September 30, 2026, none of our U.S. dollar denominated debt is designated as a hedge against our foreign operations that have a U.S. dollar functional currency. As a result, all foreign exchange gains or losses arising on our U.S. dollar debt are recorded in profit.

Commodity price volatility and macroeconomic uncertainty

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

Longer-term commodity outlook and risks

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

Tariffs and trade measures

We continue to actively monitor the evolving trade environment, including US import tariffs and reciprocal measures implemented by trading partners. This quarter did see a return of tariff escalation between the US and Canada. Through our Trail Operations in British Columbia, we export refined zinc and lead, as well as specialty metals including germanium and indium, into the United States. These critical minerals are exempt from US tariffs and are fully compliant with the Canada-United States-Mexico Agreement (CUSMA) requirements. Consequently, our principal exposure is not to direct tariffs on sales, with the more significant risk stemming from increases in input costs. Currently, we see no significant impact though we continue to actively work with our suppliers to mitigate risks.

Geopolitical developments and Middle East Conflict

The global economy has remained resilient despite ongoing geopolitical uncertainty, with industrial activity expanding across most major economies as AI-related investment continues to accelerate. Physical oil markets are beginning to normalize as demand adjusts to higher prices and flows through the Strait of Hormuz resume. However, refined product markets remain tight, and we continue to monitor the implications for diesel availability and delivered costs to our operations. Higher energy prices have also renewed inflationary pressures, contributing to tightening monetary policy and a stronger US dollar, although demand for industrial metals remains supported by resilient economic activity and continued infrastructure investment. Over the longer term, we expect persistent geopolitical uncertainty to encourage greater inventory accumulation and reinforce structurally positive drivers for copper through continued electrification, grid investment and energy security policies.

Commodity Prices and Sensitivities

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

The sensitivity of our annualized profit attributable to shareholders and adjusted EBITDA⁵ to changes in the Canadian/U.S. dollar exchange rate, commodity prices and West Texas Intermediate (WTI) oil price, before pricing adjustments, based on our current balance sheet, our 2026 mid-range production estimates, current commodity prices and a Canadian/U.S. dollar exchange rate of $1.40, is as follows. Our U.S. dollar exchange sensitivity excludes foreign exchange gain/losses on our U.S. dollar cash and debt balances, and these amounts are excluded from our profit (loss) attributable to shareholders and adjusted EBITDA⁵ calculations in the table below.

Notes:

significant amount of diesel fuel.

FINANCIAL INSTRUMENTS AND DERIVATIVES

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

GUIDANCE

Production Guidance

The table below shows our share of production of our principal products for 2025, our guidance for production for 2026 and for the following two years.

Notes:

Sales Guidance

The table below shows our sales volumes for the last quarter and our sales guidance for the next quarter for zinc in concentrate sales at Red Dog.

Note:

Unit Cost Guidance

The table below shows our unit costs for selected products for 2025 and our unit cost guidance for selected principal products in 2026.

Notes:

Capital Expenditure Guidance

The table below shows our capital expenditures for 2025 and our capital expenditure guidance for 2026.

Notes:

Capital Expenditure Guidance – Capitalized Stripping

QUARTERLY PROFIT (LOSS) AND CASH FLOW

AREAS OF JUDGMENT AND CRITICAL ACCOUNTING ESTIMATES

In preparing our consolidated financial statements, we make judgments in applying our accounting policies. The judgments that have the most significant effect on the amounts recognized in our financial statements include the assessment of impairment indicators and impairment reversal indicators, accounting for joint arrangements, streaming transactions and the accounting for income taxes. In addition, we make assumptions about the future in deriving estimates used in preparing our consolidated financial statements. Sources of estimation uncertainty include estimates used to determine the recoverable amounts of long-lived assets, recoverable reserves and resources, the provision for income taxes and the related deferred tax assets and liabilities, and the valuation of other assets and liabilities including decommissioning and restoration provisions. These areas of judgment and critical accounting estimates are consistent with those reported in our 2025 annual consolidated financial statements and Management's Discussion and Analysis, except as outlined below.

Areas of Judgment

a) Assessment of Impairment Indicators and Impairment Reversal Indicators

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

In the third quarter of 2026, as a result of our optimized feed strategy, which improved profitability at our Trail Operations and combined with higher market expectations for long-term commodity prices and strengthening market fundamentals for strategic metals, we performed an impairment reversal test for our Trail Operations cash-generating unit (CGU), as outlined below.

b) Sources of Estimation Uncertainty

Impairment Testing

When impairment testing is required, discounted cash flow models are used to determine the recoverable amount of respective CGUs. These models are prepared internally or with assistance from third-party advisors when required. When relevant market transactions for comparable assets are available, these are considered in determining the recoverable amount of assets. Significant assumptions used in preparing the discounted cash flow model for our Trail CGU impairment test include the long-term zinc price, long-term silver price, long-term germanium dioxide price, long-term zinc treatment charges, long-term zinc premium, U.S. dollar to Canadian dollar foreign exchange rates, commodity production volumes, operating costs, capital costs and discount rate. These inputs are based on management’s best estimates of what an independent market participant would consider appropriate. Changes in these inputs may alter the results of impairment testing, the amount of the impairment charges or reversals recorded in the consolidated statements of income (loss) and the resulting carrying values of assets.

The recoverable amount of each CGU is determined as the higher of its fair value less costs of disposal and its value in use.

During the third quarter, we recorded a non-cash, pre-tax impairment reversal for our Trail CGU of $888 million (after-tax $667 million).

Sensitivity Analysis

The recoverable amount of our Trail CGU is most sensitive to changes in long-term zinc, silver and germanium prices, zinc treatment charges and foreign exchange rates. Based on the recoverable amount as at September 30, 2026, we estimate that reasonably possible changes in these assumptions, including concurrent decreases in long-term commodity prices of approximately 3% to 5% and a strengthening of the Canadian dollar of $0.03 to $0.05, would reduce the recoverable amount by approximately $220 million to $370 million.

ADOPTION OF NEW ACCOUNTING STANDARDS AND ACCOUNTING DEVELOPMENTS

Amendments to IFRS 9 and IFRS 7 – Contracts Referencing Nature-dependent Electricity

In December 2024, the IASB issued Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7. These amendments aimed to ensure that nature-dependent electricity contracts, where contractual features can expose a company to variability in the underlying amount of electricity because the source of electricity generation depends on uncontrollable natural conditions, are appropriately reflected in the financial statements. The amendments include clarifying the application of the “own use” requirements to these contracts in assessing whether derivative accounting is required, permitting hedge accounting if these contracts are used as hedging instruments and requiring new disclosures that discuss the effect of these contracts on a company’s financial performance and cash flows.

The amendments are effective for annual periods beginning on or after January 1, 2026 and adoption of these amendments did not have an effect on our condensed interim consolidated financial statements.

Amendments to IFRS 9 and IFRS 7 – Amendments to the Classification and Measurement of Financial Instruments

In May 2024, the IASB issued Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7. These amendments updated classification and measurement requirements in IFRS 9 Financial Instruments and related disclosure requirements in IFRS 7 Financial Instruments: Disclosures. The IASB clarified the recognition and derecognition date of certain financial assets and liabilities, and amended the requirements related to settling financial liabilities using an electronic payment system. It also clarified how to assess the contractual cash flow characteristics of financial assets in determining whether they meet the solely payments of principal and interest criterion, including financial assets that have environmental, social and corporate governance (ESG)-linked features and other similar contingent features. The IASB added disclosure requirements for financial instruments with contingent features that do not relate directly to basic lending risks and costs, and amended disclosures relating to equity instruments designated at fair value through other comprehensive income.

The amendments are effective for periods beginning on or after January 1, 2026 and adoption of these amendments did not have a material effect on our condensed interim consolidated financial statements. The amendments resulted in additional disclosures in the equity note (Note 11) relating to gains and losses on equity instruments designated at fair value through other comprehensive income (FVOCI). For financial liabilities settled in cash using an electronic payment system, we applied the election to deem these financial liabilities to be discharged before the settlement date. The amendments have been applied retrospectively with no restatement of comparative information, in accordance with transition requirements on initial application of IFRS 9. The adjustment to the cash balance is reflected as an $8 million increase to the opening balance of cash and cash equivalents in the consolidated statements of cash flows.

IFRS 18 – Presentation and Disclosure in Financial Statements

In April 2024, the IASB issued IFRS 18, Presentation and Disclosure in Financial Statements (IFRS 18), which replaces IAS 1, Presentation of Financial Statements. IFRS 18 introduces a specified structure for the income statement by requiring income and expenses to be presented into the three main categories of operating, investing and financing, and by specifying certain defined totals and subtotals. An entity may use certain subtotals of income and expenses in public communications outside the financial statements to communicate management’s view of an aspect of the financial performance of the entity as a whole to users, and these subtotals are not specifically required by IFRS Accounting Standards. IFRS 18 requires companies to disclose explanations around these measures, which are referred to as management-defined performance measures (MPMs). IFRS 18 also provides additional guidance on principles of aggregation and disaggregation that apply to the primary financial statements and the notes. IFRS 18 will not affect the recognition and measurement of items in the financial statements, nor will it affect which items are classified in other comprehensive income (loss) and how these items are classified. The standard is effective for reporting periods beginning on or after January 1, 2027, including for interim financial statements. Retrospective application is required and early application is permitted.

We are continuing to assess and quantify the effect of this standard on our condensed interim consolidated financial statements. The standard is expected to result in changes to the presentation of our consolidated statements of income, by requiring all income and expenses to be classified into the three main categories of operating, investing and financing. Specifically, we anticipate changes to the presentation of certain income and expense items, for example, that foreign exchange gains and losses will be classified in the same category as the items that gave rise to the exchange difference, rather than being combined into one line. Our consolidated statements of cash flows will begin with the new IFRS 18 specified subtotal of operating profit. We will also have enhanced note disclosures on any identified MPMs, such as adjusted EBITDA. We expect to apply IFRS 18 on its effective date with full retrospective application, including restated comparative information.

OUTSTANDING SHARE DATA

As at October 28, 2026, there were 483.4 million Class B subordinate voting shares and 7.6 million Class A common shares outstanding. In addition, there were approximately 3.0 million share options outstanding with exercise prices ranging between $12.27 and $80.11 per share. More information on these instruments and the terms of their conversion is set out in Note 27 of our 2025 audited consolidated financial statements.

INTERNAL CONTROL OVER FINANCIAL REPORTING

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Any system of internal control over financial reporting, no matter how well designed, has inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

There have been no significant changes in our internal controls during the quarter ended September 30, 2026 that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting.

REVENUE AND GROSS PROFIT

Our revenue and gross profit by reportable segments are summarized in the tables below.

COST OF SALES SUMMARY

Our cost of sales information by reportable segments is summarized in the tables below.

COST OF SALES SUMMARY, continued