Teck Resources Ltd (TECK) 2024 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to Teck's First Quarter 2024 Earnings Release Conference Call. (Operator Instructions) This conference call is being recorded on Thursday, April 25, 2024.

女士們先生們，謝謝你們的支持。歡迎參加泰克資源 2024 年第一季財報發布電話會議。 （操作員說明）本次電話會議於 2024 年 4 月 25 日星期四錄製。

I would now like to turn the conference over to Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analysis. Please go ahead.

我現在想將會議交給投資者關係和策略分析高級副總裁弗雷澤·菲利普斯 (Fraser Phillips)。請繼續。

Thanks, Kaylene. Good morning, everyone. Thank you for joining us for Teck's First Quarter 2024 Conference Call. Please note, today's call contains forward-looking statements. Various risks and uncertainties may cause actual results to vary. Teck does not assume the obligation to update any forward-looking statements.

謝謝，凱琳。大家，早安。感謝您參加泰克資源 2024 年第一季電話會議。請注意，今天的電話會議包含前瞻性陳述。各種風險和不確定性可能導致實際結果有所不同。泰克資源不承擔更新任何前瞻性陳述的義務。

Please refer to Slide 2 for the assumptions underlying our forward-looking statements. In addition, we will reference various non-GAAP measures throughout this call. Explanations and reconciliations regarding these measures can be found in our MD&A and the latest press release on our website.

請參閱投影片 2 以了解我們前瞻性陳述的假設。此外，我們將在整個電話會議中參考各種非公認會計準則衡量標準。有關這些措施的解釋和調節可以在我們的 MD&A 和我們網站上的最新新聞稿中找到。

Jonathan Price, our CEO, will begin today's call with highlights from our first quarter results. Crystal Prystai, our CFO, will follow with additional color on the quarter. Price will then conclude today's session with an update on our key base metals markets and our progress on copper growth in the quarter, followed by a Q&A session.

我們的執行長喬納森·普萊斯 (Jonathan Price) 將在今天的電話會議中介紹我們第一季業績的重點內容。我們的財務長 Crystal Prystai 隨後將對該季度進行更多介紹。普萊斯將在今天的會議結束時介紹我們主要基本金屬市場的最新情況以及本季銅成長的進展，然後進行問答環節。

With that, I'll turn the call over to Jonathan.

這樣，我會將電話轉給喬納森。

Thank you, Fraser, and good morning, everyone. Starting on Slide 4, which highlights from a strong first quarter across our business. We completed all major construction at QB, including the ship loader and molybdenum plant. Our completed port facility, we marked the first shipments of concentrate. And I was acutely [last week] to see the second ship of being loaded and departing on time. It was a beautiful site. We also continue to advance the ramp-up of the molybdenum plant. In January, we closed the minority sale of our steelmaking coal business or Elk Valley Resources to Nippon Steel Corporation and POSCO and received USD 1.3 billion in cash from NSC.

謝謝弗雷澤，大家早安。從幻燈片 4 開始，它突出顯示了我們業務第一季的強勁表現。我們完成了 QB 的所有主要建設，包括裝船機和鉬廠。我們完成了港口設施，我們標誌著第一批精礦的發貨。我（上週）敏銳地看到第二艘船準時裝載並出發。那是一個美麗的地方。我們也持續推進鉬工廠的產能提升。 1月份，我們完成了將煉鋼煤炭業務或Elk Valley Resources少數股權出售給新日鐵公司和浦項製鐵的交易，並從NSC獲得了13億美元現金。

Regulatory approvals for the full sale of the Glencore are progressing as anticipated and closing expected no later than the third quarter of this year. Q1 was a strong quarter from both an operational and a financial perspective. The ramp-up of QB is reflected in our steadily increasing copper quarterly production and all our previously disclosed annual guidance is unchanged. We also continue to focus on sustainability leadership, including improved safety performance. Our high potential incident frequency rate was lower than the same period last year at 0.06.

嘉能可全面出售的監管批准正在按預期進行，預計最遲將於今年第三季完成。從營運和財務角度來看，第一季都是強勁的季度。 QB 的成長反映在我們銅季度產量的穩步增長中，並且我們之前披露的所有年度指導均保持不變。我們也持續專注於永續發展領導力，包括提高安全績效。我們的高潛在事件頻率低於去年同期的 0.06。

Together with global industry leaders, we launched the North Pacific Green Corridor Consortium, which will work together to decarbonize the value chain for commodities between North America and Asia. Activities will be focused on pathways to optimize energy efficiency with a specific goal of advancing projects and infrastructure required to achieve meaningful emissions reductions at the near-term, and we released our 23rd annual sustainability report, which outlines our performance in 2023 in areas such as decarbonization, diversity and working towards a nature positive future.

我們與全球產業領導者一起發起了北太平洋綠色走廊聯盟，該聯盟將共同努力使北美和亞洲之間的商品價值鏈脫碳。活動將著重於優化能源效率的途徑，具體目標是推進近期實現有意義的減排所需的項目和基礎設施，我們發布了第23 份年度永續發展報告，概述了我們2023 年在以下領域的表現脫碳、多樣性和努力創造積極的自然未來。

Looking now at the financial highlights from our first quarter on Slide 5. We reported adjusted EBITDA of $1.7 billion in the quarter compared to $2 billion a year ago with lower copper and zinc prices and higher unit cost in steelmaking coal and at our QB operation partly offset by higher copper sales volumes and higher realized steelmaking coal prices compared to the same period last year. We continue to return cash to shareholders in the quarter with $80 million in share buybacks executed under the $500 million return authorized by the Board following receipt of the NSC proceeds. We also paid $65 million in quarterly base dividends.

現在看一下幻燈片5 上第一季的財務亮點。成本較高。我們在本季繼續向股東返還現金，根據收到 NSC 收益後董事會授權的 5 億美元回報執行了 8,000 萬美元的股票回購。我們還支付了 6500 萬美元的季度基本股息。

Turning to QB on Slide 6. As I mentioned earlier, we completed all outstanding major construction in the first quarter. At the port, we achieved construction completion in Q1, consistent with our guidance and successfully loaded our first vessel of QB concentrate using the ship loader. The mobilization of the construction workforce is substantially advanced, and the operational ramp-up is continuing. We are on track to complete ramp-up with the molybdenum plant in the second quarter.

轉向幻燈片 6 上的 QB。在港口，我們按照我們的指導方針在第一季完成了施工，並使用裝船機成功裝載了我們的第一艘 QB 精礦。建築勞動力的動員工作已取得實質進展，且營運仍在持續進行中。我們預計在第二季完成鉬工廠的產能提升。

Our QB2 project capital cost guidance of USD 8.6 billion to USD 8.8 billion is unchanged. We produced higher QB copper and concentrate quarter-over-quarter at 43,300 tonnes, and we continue to expect progressively stronger production in each quarter throughout the rest of the year. Our full year copper and concentrate guidance for QB is unchanged at 230,000 tonnes to 275,000 tonnes. QB unit costs are expected to remain elevated this year, particularly in the first half, consistent with our guidance. This is driven by the cost of alternative logistics, limited molybdenum production in the first half of the year, continued ramp-up and inflationary pressures. Our full year guidance for QB net cash unit cost is unchanged at USD 195 to USD 225 per pound.

我們的 QB2 專案資本成本指引為 86 億美元至 88 億美元不變。我們季度比季度生產了更高的 QB 銅和精礦，達到 43,300 噸，我們繼續預計今年剩餘時間內每個季度的產量將逐步增強。我們對 QB 的全年銅和精礦指導量維持在 230,000 噸至 275,000 噸不變。今年，特別是上半年，QB 單位成本預計將保持在較高水平，這與我們的指導一致。這是由替代物流成本、上半年鉬產量有限、持續成長和通膨壓力所推動的。我們對 QB 淨現金單位成本的全年指引保持在每磅 195 美元至 225 美元不變。

With that, I'll now turn it over to Crystal for some additional color on the quarter.

有了這個，我現在將把它交給 Crystal，為該季度添加一些額外的顏色。

Thanks, Jonathan. Good morning, everyone. I'm going to start on Slide 8 with our financial performance in the first quarter. There are a number of significant accounting and presentation items, impacting our results compared to the same period last year. Following the minority sale of our steelmaking coal business in January, our financial statements now reflect the 23% minority interest in EVR by NSC and POSCO. With our controlling shareholder, we continue to consolidate 100% of EVR's production and sales volumes revenue, gross profit and EBITDA. Our profit attributable to shareholders is now based on our reduced 77% ownership of EVR with 23% of EVR profit attributable to noncontrolling interest.

謝謝，喬納森。大家，早安。我將從投影片 8 開始介紹我們第一季的財務表現。與去年同期相比，有許多重要的會計和列報項目影響了我們的業績。繼一月份出售我們的煉鋼煤炭業務的少數股權後，我們的財務報表現在反映了 NSC 和 POSCO 在 EVR 中持有 23% 的少數股權。透過我們的控股股東，我們持續鞏固EVR 100%的產銷售、營收、毛利和EBITDA。我們的股東應占利潤現在是基於我們減少了 77% 的 EVR 所有權，其中 23% 的 EVR 利潤歸屬於非控制權益。

This has significantly reduced our profit attributable to shareholders and related EPS compared to the same period last year. It is important to note that despite the noncontrolling interest attribution of profit for EVR, we continue to receive 100% of the cash flows generated by EVR through closing of the transaction with Glencore.

這使得我們的股東應占利潤和相關每股收益與去年同期相比大幅下降。值得注意的是，儘管EVR的利潤屬於非控制權益，但透過與嘉能可的交易完成，我們繼續獲得EVR產生的100%的現金流。

Our finance expense and depreciation and amortization expense have both increased significantly compared to the same period last year as construction is complete and ramp-up continues at QB. We are now depreciating most of the QB assets, and we have stopped capitalizing interest on the QB2 project as anticipated. Our adjusted EBITDA declined in the quarter compared to the same period last year. This was primarily driven by higher operating costs at EVR and at QB operations, reflecting elevated costs at QB during ramp-up. It was also driven by negative pricing adjustments, particularly for steelmaking coal. These items were partly offset by higher copper sales volumes and higher realized steelmaking coal prices compared to the same period last year.

隨著 QB 建設的完成和產能的持續增加，我們的財務費用以及折舊和攤銷費用與去年同期相比均大幅增加。我們現在正在對 QB 的大部分資產進行折舊，並且我們已經按照預期停止了 QB2 項目的利息資本化。與去年同期相比，本季調整後的 EBITDA 有所下降。這主要是由於 EVR 和 QB 營運的營運成本較高，反映出 QB 在產能提升期間的成本上升。這也是受到價格負調整的推動，尤其是煉鋼用煤。與去年同期相比，這些項目被銅銷售增加和煉鋼煤炭實現價格上漲部分抵銷。

Now turning to each of our business units in greater detail and starting with copper on Slide 9. Our relapsed copper price was USD 386 per pound, down 5% compared to the same period last year. We had strong quarterly copper production of 99,000 tonnes, an increase of 74% from the same period last year. This was driven by the ramp-up of QB operations, adding 43,300 tonnes of copper and concentrate production and higher copper production from Antamina due to increased copper-only ore being treated as expected in the mine plan.

現在更詳細地討論我們的每個業務部門，從幻燈片 9 上的銅開始。我們的季度銅產量強勁，達到 99,000 噸，比去年同期成長 74%。這是由於 QB 業務的成長，增加了 43,300 噸銅和精礦產量，以及 Antamina 的銅產量增加，這是由於按礦山計劃預期處理的純銅礦石增加。

Our cost of sales was higher year-over-year, primarily due to the inclusion of QB operations, is also the first full quarter of depreciation of QB's operating assets, as I previously noted, with $125 million recorded in Q1. Excluding QB, our net cash unit costs were USD 1.92 per pound or USD 0.09 per pound higher than the same period last year, due to reduced zinc byproduct revenue at Antamina with significantly lower zinc prices. We were pleased that Antamina received approval of the MEIA for its mine life extension from 2028 to 2036 in the quarter.

我們的銷售成本同比較高，主要是由於納入了 QB 業務，這也是 QB 運營資產折舊的第一個完整季度，正如我之前指出的，第一季度記錄了 1.25 億美元。不包括 QB，我們的淨現金單位成本為每磅 1.92 美元，比去年同期高出每磅 0.09 美元，原因是安塔米納鋅副產品收入減少，鋅價大幅下跌。我們很高興 Antamina 在本季度獲得了 MEIA 的批准，將其礦山壽命從 2028 年延長至 2036 年。

Looking ahead, as Jonathan said, QB's guidance is unchanged, and we continue to expect QB production to increase each quarter through 2024. Our copper production guidance of 465,000 tonnes to 540,000 tonnes at our full year net cash unit cost guidance of USD 1.85 to USD 2.25 per pound are also unchanged.

展望未來，正如喬納森所說，QB 的指導不變，我們繼續預計QB 產量將在2024 年之前每個季度有所增加。為1.85 美元至1.85 美元2.25每磅也沒有變化。

Turning now to our zinc business on Slide 10. In Q1, zinc and concentrate production increased by 15% and lead in concentrate production increased by 10%, both of which were driven by higher mill throughput. At Red Dog, sales of 84,600 tonnes were within our guidance range. Net cash unit costs were lower than last year as a result of byproduct credits.

現在轉向幻燈片 10 上的鋅業務。 Red Dog 的銷量為 84,600 噸，在我們的指導範圍內。由於副產品信貸，淨現金單位成本低於去年。

At Trail operations, production of refined zinc and refined lead both improved, although both quarters were impacted by severe weather events. Our gross profit before depreciation and amortization decreased 27%, primarily due to significantly lower zinc prices and lower contracted zinc premiums on refined zinc -- Trail operations and 2023 treatment charges applied through March 31. This was partially offset by lower nano royalties, which are tied to Red Dog profitability.

在 Trail 業務中，精煉鋅和精煉鉛的產量均有所改善，儘管這兩個季度都受到惡劣天氣事件的影響。我們的折舊和攤銷前毛利潤下降了27%，主要是由於鋅價顯著下降以及精煉鋅的合約鋅溢價降低——截至3 月31 日的試運行和2023 年處理費。特許權使用費的降低所抵消。

Looking forward, at Red Dog, we expect zinc and concentrate sales of 50,000 tonnes to 60,000 tonnes in the second quarter, reflecting normal seasonality of sales. Our full year zinc and concentrated production guidance of 565,000 tonnes to 630,000 tonnes and our full year net cash unit cost guidance of USD 0.55 to USD 0.65 per pound are both unchanged. Our Trail operations, our refined zinc production guidance is unchanged at 275,000 tonnes to 290,000 tonnes. We have begun replacing the KIVCET boiler at Trail, which will impact the lead circuit in the second quarter but is expected to have minimal impact on our zinc circuit.

展望未來，Red Dog 預計第二季鋅和精礦銷售量為 50,000 噸至 60,000 噸，反映了正常的銷售季節性。我們的全年鋅和集中產量指導為 565,000 噸至 630,000 噸，全年淨現金單位成本指導為每磅 0.55 美元至 0.65 美元，均保持不變。我們的 Trail 業務、精煉鋅產量指引維持在 27.5 萬噸至 29 萬噸不變。我們已開始更換 Trail 的 KIVCET 鍋爐，這將在第二季影響主迴路，但預計對我們的鋅迴路影響最小。

Turning now to steelmaking coal on Slide 11. Despite an extreme freezing event in January that affected both sales and production, we generated $1.4 billion in gross profit before depreciation and amortization. The 8% decline from the same period last year was primarily due to higher unit operating costs and lower sales volumes, partially offset by higher steelmaking tool prices.

現在轉向幻燈片 11 上的煉鋼煤炭。較去年同期下降8%，主要是由於單位營運成本上升和銷售下降，但部分被煉鋼工具價格上漲所抵銷。

Sales volumes of 5.9 million tonnes were within our guidance range and production recovered strongly later in the quarter. Adjusted site cash cost of sales per tonne of $112 was higher than last year due to higher repair parts and made it spent. Through the ongoing shortage of skilled trade labor, we also had increased reliance on contractors. In addition, weather-related productivity impacts and less favorable mining drivers were factors.

590 萬噸的銷售量在我們的指導範圍內，產量在本季稍後強勁復甦。調整後的每噸現場現金銷售成本為 112 美元，高於去年，原因是維修零件增加並使其支出。由於熟練貿易勞動力的持續短缺，我們也增加了對承包商的依賴。此外，與天氣相關的生產力影響和不利的採礦驅動因素也是因素。

Transportation costs were down $2 per tonne from the same period last year, largely due to reduced demurrage charges. And we're pleased to achieve record throughput at the saturated rock fill at our Elkview operations in February. Of our 77.5 million liters per day of constructed water treatment capacity continues to ramp up. We are on track to achieve one of the primary objectives of the Elk Valley Water Quality Plan, which is to stabilize and reduce the selenium trend in the Elk Valley.

運輸成本比去年同期每噸下降了 2 美元，這主要是由於滯期費的減少。我們很高興二月在 Elkview 作業區的飽和岩石填充處實現了創紀錄的吞吐量。我們已建成的每天 7750 萬公升的水處理能力仍在不斷提高。我們正在實現麋鹿谷水質計畫的主要目標之一，即穩定並減少麋鹿谷的硒含量趨勢。

Looking forward, second quarter steelmaking coal sales are expected to be 6 million tonnes to 6.4 million tonnes reflecting planned maintenance shutdowns at Elkview and Greenhills. Our full year production guidance of 24 million tonnes to 26 million tonnes is unchanged. And despite elevated adjusted site cash cost of sales in the first quarter, our full year guidance of $95 to $110 per tonne is also unchanged.

展望未來，第二季煉鋼煤炭銷量預計為 600 萬噸至 640 萬噸，反映了 Elkview 和 Greenhills 計畫的維護停工。我們2400萬噸至2600萬噸的全年產量指引保持不變。儘管第一季調整後的現場現金銷售成本有所上升，但我們每噸 95 至 110 美元的全年指引也沒有改變。

Turning now to Slide 12. Our capital allocation framework continues to guide our approach and our priority is to have a disciplined approach to the deployment of capital. Overall, we aim to balance our growth with cash return to shareholders while maintaining a strong balance sheet through the cycle.

現在轉向投影片 12。總體而言，我們的目標是在成長與股東現金回報之間取得平衡，同時在整個週期中保持強勁的資產負債表。

Looking at the considerations for the use of proceeds from the sale of EVR on Slide 13. In total, we are expecting to receive USD 8.6 billion in cash proceeds, including the USD 1.3 billion already received from NSC. Our capital allocation framework guided the board in its decision on the use of proceeds from the minority sale of our steelmaking cool business. And as we've already noted, up to $500 million of the NSC proceeds or 30% are to be returned to shareholders via a share buyback. Our capital allocation framework will also guide the Board's decision on the remainder of the proceeds.

從投影片 13 來看 EVR 出售所得款項用途的考量。我們的資本配置架構指導董事會決定如何使用我們煉鋼冷卻業務少數股權出售的收益。正如我們已經指出的，NSC 收益中最多 5 億美元（即 30%）將透過股票回購返還給股東。我們的資本分配架構也將指導董事會對剩餘收益的決定。

We aim to maintain investment-grade credit metrics through the cycle or getting a net debt to adjusted EBITDA ratio of 1x. We plan to reduce our gross debt and maintain or improve our credit metrics. We will also retain additional cash on our balance sheet to fund our near-term cover growth opportunities and to generate strong returns. We continue to expect to pay transaction-related taxes of approximately USD 750 million in early 2025.

我們的目標是在整個週期中維持投資等級信用指標，或使淨負債與調整後 EBITDA 的比率達到 1 倍。我們計劃減少總債務並維持或改善我們的信用指標。我們還將在資產負債表上保留額外的現金，為我們的近期成長機會提供資金並產生強勁的回報。我們繼續預計到 2025 年初將繳納約 7.5 億美元的交易相關稅金。

And finally, we continue to expect a significant return to shareholders in addition to the $500 million buyback previously authorized by the board in relation to the NSC proceeds. The board will determine the amount for and timing of these returns. Overall, the significant cash proceeds from this transaction will ensure we are well capitalized to unlock the full potential of our base metals business, while maintaining a strong balance sheet and delivering significant cash returns to our shareholders.

最後，除了董事會先前授權的與 NSC 收益相關的 5 億美元回購之外，我們仍然預期股東將獲得可觀的回報。董事會將決定這些回報的金額和時間。總體而言，此交易的巨額現金收益將確保我們擁有充足的資本，以釋放基本金屬業務的全部潛力，同時保持強勁的資產負債表並為股東帶來可觀的現金回報。

Turning now to Slide 14. We are in a strong financial position with $7.1 billion in liquidity, including $1.6 billion in cash as of April '24. We ended the quarter with a net debt to adjusted EBITDA ratio of 1.1x, and we remain focused on maintaining our investment-grade credit metrics, as I noted. As mentioned earlier, the board authorized a share buyback of up to $500 million, of which $80 million has already been executed. We also paid $65 million in quarterly base dividends in March, bringing our total cash return to shareholders to $145 million in the first quarter. This extends our track record of strong cash return to shareholders with approximately $4 billion returns since 2019.

現在轉向幻燈片 14。本季結束時，我們的淨負債與調整後 EBITDA 的比率為 1.1 倍，正如我所指出的，我們仍然專注於維持我們的投資等級信用指標。如前所述，董事會授權回購最多 5 億美元的股票，其中 8,000 萬美元已經執行。 3 月份，我們還支付了 6,500 萬美元的季度基本股息，使第一季股東現金回報總額達到 1.45 億美元。自 2019 年以來，我們為股東帶來了約 40 億美元的回報，這延續了我們向股東提供強勁現金回報的記錄。

With that, I'll turn it back over to Jonathan.

這樣，我會將其轉回給喬納森。

Thanks, Crystal. Like some of you had attended CESCO in Santiago last week, and it's clear that we are at a turning point. It's an exciting time in the copper market, especially given that copper prices have run up significantly since Q1 to about $4.40 per pound a day. We'll response turning from debating where the demand for copper would really rise so quickly to wondering where and how we're going to find more. Given that, I'll provide an update on our key base metals markets.

謝謝，水晶。就像你們中的一些人上週參加了聖地亞哥的 CESCO 展會一樣，很明顯我們正處於一個轉折點。這是銅市場激動人心的時刻，特別是考慮到銅價自第一季以來大幅上漲至每天每磅約 4.40 美元。我們的回應將從辯論哪裡對銅的需求真正會增長得如此之快轉向思考我們將在哪裡以及如何找到更多銅。有鑑於此，我將提供有關我們主要基本金屬市場的最新資訊。

So starting with the copper market on Slide 16. Concentrate tightness has continued into the first quarter with global mine production over 2 million tonnes below the original guidance for 2023 and almost 1 million tonnes lower year-to-date based on last year's projections for 2024. This comes at a time of increased investment in smelting capacity in Asia and India in preparation for stronger demand from the energy transition. Older capacity of 3.7 million tonnes higher than 3 years ago. Spot TC/RCs have fallen 100% from 88 to 00 in less than 4 months, which is now forcing cuts to refine production.

首先從投影片16 上的銅市場開始。減少了近100 萬噸。老產能比 3 年前增加 370 萬噸。現貨 TC/RC 在不到 4 個月的時間內從 88 下降了 100% 至 00，目前正迫使減產以提高產量。

Longer term, we've seen the lack of investment in mining over the past decade as potentially being a constraint for the energy transition. The industry will need to invest around $120 billion in the next 5 years. The energy transition could add 6.5 million tonnes to 7 million tonnes to demand in the next 5 years, including recognition of new demand from AI and data centers. Importantly, an additional 4.5 million tonnes to 5 million tonnes of copper demand growth will flow from green expansions and refurbishment, urbanization and a growing global middle class.

從長遠來看，我們發現過去十年採礦業投資的缺乏可能成為能源轉型的限制因素。未來5年該產業將需要投資約1,200億美元。未來 5 年，能源轉型可能會增加 650 萬噸至 700 萬噸的需求，其中包括認識到人工智慧和資料中心的新需求。重要的是，綠色擴張和翻新、城市化以及不斷壯大的全球中產階級將帶來 450 萬噸至 500 萬噸銅需求的額外成長。

Moving on to the zinc market on Slide 17. Zinc prices have been under pressure for most of 2023 and into Q1 2024, with prices falling a further 2% over Q4 2023. These lower prices have forced the closure of around 500,000 tonnes of mine production, which will continue through 2024. With an additional 120,000 tonnes to 150,000 tonnes lost due to fires, floods and strikes. We expect that sun line production will return in 2024, but that net mine production will decrease to 12.6 million tonnes, which is about 1 million tonnes lower than projected last year. Similar to copper, 5% is zinc concentrate market has put TCs down from $280 per DMT to a historic level of $30 to $50 per DMT, which is now impacting refined metal production.

轉向幻燈片 17 上的鋅市場。 ，這種情況將持續到2024 年。我們預計陽光線生產將於 2024 年恢復，但礦場淨產量將降至 1,260 萬噸，比去年預計減少約 100 萬噸。與銅類似，5% 鋅精礦市場已將 TC 從每 DMT 280 美元降至每 DMT 30 至 50 美元的歷史水平，目前正在影響精煉金屬生產。

Interim metal demand is improving in North America and Europe from a low best and in Asia due to solid automotive production and strong entity transition infrastructure spending. While we expect mine production to return as prices improve, fundamental market tightness is expected to remain until 2027.

由於汽車生產穩健和實體轉型基礎設施支出強勁，北美和歐洲以及亞洲的中期金屬需求正在從最低水平改善。雖然我們預計隨著價格上漲，礦場生產將恢復，但市場基本面緊張預計將持續到 2027 年。

So turning to our progress in copper growth on Slide 18. We continue to invest in our industry-leading copper growth portfolio in the quarter, reflecting our strategy to balance growth and return of capital to shareholders. At Highland Valley, we continue to respond to information requests from regulators on the permit application for the mine-life extension. Gauge work is ongoing with indigenous governments and organizations and key communities of interest.

因此，轉向幻燈片 18 中銅成長的進展。在高地谷，我們繼續回應監管機構關於延長礦山壽命許可申請的資訊請求。與原住民政府和組織以及主要利益群體一起進行的測量工作正在進行中。

We expect to progress engineering and design, project execution planning and construction planning for substantial completion in Q1 of 2025. The team at San Nicolás submitted the MIAR permit application in January, and they continue to engage government and stakeholders in support of permit review. They also continue to advance feasibility study work with plans to initiate detailed engineering in the first half of 2025. And Zafranal, we continue to update capital and operating cost estimates from the 2020 feasibility study, and we advanced our construction permits.

我們預計將推進工程和設計、專案執行規劃和施工規劃，並於2025 年第一季基本完成。許可證審查。他們也繼續推進可行性研究工作，計劃在 2025 年上半年啟動詳細工程。

Project is expected to enter detailed engineering in the second half of this year. And we advanced towards defining debottlenecking opportunities and low capital expansions at QB. We expect to finalize project scope and advanced permitting by the end of 2024. While we do not expect to sanction any projects this year, we remain focused on advancing near-term projects for potential sanctioning in 2025. Importantly, all projects will be required to deliver an attractive risk-adjusted return and will compete the capital in line with Teck's capital allocation framework.

工程預計今年下半年進入詳細工程。我們在 QB 的目標是確定消除瓶頸的機會和低資本擴張。我們預計在2024 年底之前確定項目範圍並提前獲得許可。都需要提供有吸引力的風險調整回報，並將根據泰克資本的資本配置框架進行資本競爭。

Reviewing our priorities on Slide 19. We set up several key priorities for 2024 to ensure we can continue to demonstrate our focus on value creation. Completion of the full sale of our steelmaking coal business where Glencore will acquire a 77% controlling interest in EVR and become the operator of the Elk Valley steelmaking coal mines is a key priority this year. As I mentioned, regulatory approvals continue to progress, floating is expected no later than the third quarter. We are also driving safe operational performance across our portfolio. We have embedded known risks into our guidance to ensure we build confidence in our ability to deliver on our market commitments.

回顧投影片 19 上的優先事項。今年的首要任務是完成煉鋼煤業務的全面出售，嘉能可將收購EVR 77%的控股權，並成為Elk Valley煉鋼煤礦的營運商。正如我所提到的，監管審批繼續取得進展，預計最晚會在第三季上浮。我們也在整個投資組合中推動安全營運績效。我們已將已知風險納入我們的指導中，以確保我們對履行市場承諾的能力建立信心。

At QB, we have now completed all major construction, including the ship loader and the molybdenum plant. We are working hard to achieve consistent operating performance at design capacity. At the same time, we continue to advance the development projects in our industry-leading copper growth pipeline, which are foundational to our future growth. And we will advance that growth in a disciplined way by following our capital allocation framework to ensure that our capital decisions are value maximizing for shareholders.

在 QB，我們現在已完成所有主要建設，包括裝船機和鉬廠。我們正在努力在設計產能下實現一致的營運績效。同時，我們繼續推進業界領先的銅生長管道的開發項目，這是我們未來成長的基礎。我們將遵循我們的資本配置框架，以有紀律的方式推動這一成長，以確保我們的資本決策為股東實現價值最大化。

In conclusion, on Slide 20, our focus remains on value creation. Our priorities help us to do that, and I'm excited for the opportunities ahead of us. We are committed to responsibly creating long-term value for our shareholders and stakeholders. We are in a unique position to deliver significant value through our strategy, centered on copper growth to capitalize on strong demand in the transition to a low carbon economy. We have current production from a premium portfolio of long-life, high-quality assets in stable, well-understood jurisdictions. In the near term, we are adding to that production through the ramp-up of QB. Longer term, we seek to unlock significant value from our copper growth portfolio. And we are pursuing that value-driven growth by employing a rigorous investment framework and continuing to balance growth with cash returns to our shareholders.

總之，在投影片 20 中，我們的重點仍然是價值創造。我們的優先事項幫助我們做到這一點，我對我們面前的機會感到興奮。我們致力於負責任地為股東和利害關係人創造長期價值。我們處於獨特的地位，可以透過我們的策略創造巨大的價值，以銅的成長為中心，利用向低碳經濟轉型的強勁需求。我們目前的生產來自於穩定且易於理解的司法管轄區的優質長壽命資產組合。短期內，我們將透過 QB 的提升來增加產量。從長遠來看，我們尋求從銅成長投資組合中釋放巨大價值。我們透過採用嚴格的投資框架並繼續平衡成長與股東現金回報來追求價值驅動的成長。

Thank you. Operator, please open the line for questions.

謝謝。接線員，請開通提問線。

(Operator Instructions) Our first question is from Orest Wowkodaw with Scotiabank.

（操作員說明）我們的第一個問題來自豐業銀行的 Orest Wowkodaw。

With the BHP bid or reported bid for Anglo American, I'm curious whether Teck seen any opportunities out there to add producing copper assets to the portfolio, just given your balance sheet transformation post the coal sale that's going to close in Q3. I certainly think producing assets are a lot easier to add than building as we saw with QB2. But I'm curious how you see the landscape?

透過必和必拓的出價或據報道對英美資源集團的出價，我很好奇泰克是否看到了將銅生產資產添加到投資組合中的任何機會，考慮到第三季度煤炭銷售即將結束後您的資產負債表轉型。我當然認為添加生產資產比建立資產容易得多，正如我們在 QB2 中看到的那樣。但我很好奇你是如何看待風景的？

Yes, Orest, and thanks for that question. Look, I think, firstly, I'd say that the proposed or potential takeover here of Anglo volume BHP just to reinforce the attractiveness of the long-term fundamentals for the copper market. And long-term fundamentals around, which we have centered our strategy for the years ahead. For us, this announcement, this news doesn't change anything. We remain very focused on completing the transaction over EVR with Glencore, deploying those proceeds to strengthen the balance sheet to ensure long-term resilience of the company coupled with investing in the high-quality projects that we have in our portfolio and making a significant return of capital to shareholders. So no change, Orest. We're very focused on delivering that copper growth, I think the market fundamentals are compelling, and we will continue to focus on those things that we can control to deliver value for our shareholders.

是的，奧雷斯特，謝謝你提出這個問題。我認為，首先，我想說的是，對英美資源集團必和必拓的提議或潛在收購只是為了增強銅市場長期基本面的吸引力。並圍繞長期基本面，我們將其作為未來幾年策略的中心。對我們來說，這個公告、這個消息不會改變任何事。我們仍然非常專注於完成與嘉能可的 EVR 交易，將這些收益用於加強資產負債表，以確保公司的長期彈性，同時投資於我們投資組合中的高品質項目並獲得可觀的回報給股東的資本。所以沒有改變，奧雷斯特。我們非常專注於實現銅的成長，我認為市場基本面令人信服，我們將繼續專注於那些我們可以控制的事情，為股東創造價值。

As a quick follow-up, can you give us an update on QB2? From the Chicilco data, it looked like the monthly production was pretty flat in January, February, March. Can you maybe just speak to what the current challenges are bottlenecks in terms of breaking through from a production standpoint?

作為快速跟進，您能為我們介紹一下 QB2 的最新情況嗎？從 Chicilco 的數據來看，一月、二月、三月的月產量相當持平。您能否從生產的角度談談目前突破的瓶頸是什麼？

Yes. I'll just make some high-level comments and then hand over to Sherhzad Bharmal. Look, where we expect it to be at this point in time, our guidance for this year is unchanged. We expect to increase copper production quarter-over-quarter as the year unfolds.

是的。我將發表一些高層評論，然後將其交給謝爾扎德·巴馬爾 (Sherhzad Bharmal)。看，我們目前的預期是，我們今年的指導沒有改變。我們預計隨著今年的展開，銅產量將比上季增加。

And with that, I'll let Sherhzad give you some further color on where we're up to.

接下來，我將讓 Sherhzad 進一步向您介紹我們的進展。

Thanks, Jonathan. Orest, we are addressing the challenges that we have encountered in the first 3 months. In April, we had a planned shutdown for liner changes and several modifications that we had identified to improve reliability and stability. That shutdown was executed on time very safely. And since we have started up and made those changes, we're seeing some very encouraging results. So we fully expect to be within guidance at the end of the year.

謝謝，喬納森。 Orest，我們正在解決前三個月遇到的挑戰。 4 月份，我們計劃停工以更換班輪，並進行多項修改，以提高可靠性和穩定性。這次關閉非常安全地按時執行。自從我們開始並做出這些改變以來，我們看到了一些非常令人鼓舞的結果。因此，我們完全期望在年底時能夠達到預期目標。

The next question is from Liam Fitzpatrick with Deutsche Bank.

下一個問題來自德意志銀行的利亞姆·菲茨帕特里克。

Jonathan, I just wanted to ask a question about a few areas that you mentioned, I think, late last year and earlier this year, which was about conducting a full review of the QB2 project, just to get learnings from that before you embark on your next phase of growth potentially from next year and also about bringing the right expertise and people on board to ensure you've got the right sort of capabilities. That's the first question, can you just give us an update on where those things stand?

喬納森，我只是想問一個關於你去年年底和今年早些時候提到的幾個領域的問題，這是關於對 QB2 項目進行全面審查，只是為了在你開始之前從中吸取教訓您可能從明年開始進入下一階段的成長，並且還需要引入合適的專業知識和人員以確保您擁有合適的能力。這是第一個問題，您能否向我們介紹一下這些情況的最新情況？

Yes. Thanks for the question, Liam. We do want to extract as many learnings as we can from the construction of QB2, that's going to be critical as we set ourselves up for future growth here. That review is ongoing. As we've referenced before, we are using external experts to support us with that and we expect to complete that review in the months ahead. Meanwhile, the project team under the Karla Mills continues to build capacity and capability, including working on systems and processes that will be required to help us deliver those projects reliably in the future in terms of meeting the schedule and the capital budgets that we set out.

是的。謝謝你的提問，利亞姆。我們確實希望從 QB2 的構建中汲取盡可能多的經驗教訓，這對於我們為未來的發展做好準備至關重要。該審查正在進行中。正如我們之前提到的，我們正在聘請外部專家來支持我們，我們預計將在未來幾個月內完成審查。同時，Karla Mills 旗下的專案團隊繼續建立產能和能力，包括開發所需的系統和流程，以幫助我們在未來可靠地交付這些項目，滿足我們制定的時間表和資本預算。

The findings from the QB review, of course, will be channeled into that team and will be reflected in the continued building of capacity and capability within that area of our business. So we're very focused on that. As I said, we won't be sanctioning any projects until 2025. And of course, we'll only sanction those projects subject both to permits, but also to favorable economics and returns. But we are working hard now to ensure that we set ourselves up for success in the years ahead.

當然，QB 審查的結果將傳達給該團隊，並將反映在我們該業務領域的能力和能力的持續建設中。所以我們非常關注這一點。正如我所說，我們在 2025 年之前不會批准任何項目。但我們現在正在努力工作，以確保我們為未來幾年的成功做好準備。

And as my 1 follow-up, I think it was partly addressed in the previous question. But just to be clear on QB2, could you maybe outline where the current kind of bottleneck or constraint is? And is there a point in the year perhaps towards -- around the middle, where there should be more of a step-up in terms of the production rates?

作為我的第一個後續行動，我認為上一個問題已經部分解決了這個問題。但為了澄清 QB2，您能否概述一下目前的瓶頸或約束在哪裡？今年中是否有某個時間點，生產力應該有更多的提高？

I think as I said, we expect to see a step up quarter-over-quarter as we work our way through the year. There's not one particular bottleneck here that we would point to. It's just about establishing stability and consistency of operations day in, day out.

我認為正如我所說，隨著我們全年的努力，我們預計會出現季度環比的成長。這裡沒有我們要指出的特定瓶頸。這只是為了日復一日地建立營運的穩定性和一致性。

The next question is from Lucas Pipes with B. Riley Securities.

下一個問題來自 B. Riley Securities 的 Lucas Pipes。

This is Nick Giles on for Lucas. I wanted to ask about the remaining net proceeds of EVR. There's the USD 6.9 billion from Glencore, $750 million tax payable in 2025. First one to confirm that, that includes the Glencore proceeds. And can you remind us the timing of the $400 million from EVR cash flows related to NSC and lastly, overall closing costs.

我是盧卡斯的尼克吉爾斯。我想問EVR剩餘的淨收益。其中有來自嘉能可的 69 億美元，即 2025 年應繳稅款 7.5 億美元。您能否提醒我們與 NSC 相關的 4 億美元 EVR 現金流的時間表以及最後的總體結算成本。

Sure. I'll hand you over to Crystal for an overview of our intended use of those proceeds and then to answer some of those more detailed questions.

當然。我會將您交給 Crystal，讓您了解我們對這些收益的預期用途，然後回答其中一些更詳細的問題。

Nick, thanks for the question. I think we've been pretty consistent with our messaging around our intended use of the proceeds that will come in from Glencore being very consistent with our capital allocation and we intend to reduce our debt levels and get to achieving net debt to adjusted EBITDA of 1x through the cycle. And obviously, we'll be in a net cash position on closing and CDOT trending down as we deploy cash towards our growth projects.

尼克，謝謝你的提問。我認為，我們關於嘉能可所得收益的預期用途的信息非常一致，這與我們的資本配置非常一致，我們打算降低債務水平，並實現淨債務達到調整後 EBITDA 的 1 倍通過循環。顯然，隨著我們將現金部署到我們的成長項目，我們將在收盤時處於淨現金頭寸，並且 CDOT 呈下降趨勢。

So secondly, having cash on the balance sheet earmarked for those near-term goals projects being HBC mine life extension, San Nicolás and Zafranal and then thirdly, returning a significant amount to shareholders. Obviously, the board authorized the $500 million returned to shareholders the NSC proceeds received in January. And I think that's a reasonable proxy to think about as we go forward.

其次，將資產負債表上的現金指定用於 HBC 礦山壽命延長、聖尼古拉斯和扎弗拉納爾等近期目標項目，然後第三，向股東返還大量資金。顯然，董事會授權將 NSC 1 月收到的收益返還給股東 5 億美元。我認為這是我們前進時需要考慮的合理代理。

And then I think just lastly, in response to your question about the $400 million remaining proceeds from NSC those proceeds come in through the receive a 100% of the steelmaking coal cash flows through closing of the Glencore transaction. So you won't see $400 million coming in 1 payment on closing of that transaction, but rather you're seeing it come in now as we go through and achieve sort of receive that 100% of cash flows through closing.

最後，我想回答你關於 NSC 剩餘 4 億美元收益的問題，這些收益是透過嘉能可交易完成後獲得 100% 的煉鋼煤炭現金流而獲得的。因此，在交易結束時，您不會看到 4 億美元通過 1 次付款進入，而是在我們完成並通過結束獲得 100% 的現金流時，您會看到它現在進入。

Got it. Got it. Crystal, I really appreciate all that color. Maybe just one follow-up on that. I believe the prior estimate was cash flows of around USD 1 billion. Has that changed at all, especially in the phases kind of weaker met coal prices.

知道了。知道了。水晶，我真的很欣賞這種顏色。也許只是對此的一個後續行動。我認為之前的估計現金流量約為10億美元。這種情況有沒有改變，尤其是煤炭價格走弱的階段。

Yes. I think that's a fair point. I think there is -- you always have to consider the timing of sales and the operating costs as well as the coal prices. So that number will be dynamic as we make our way through. But you've seen, obviously, the gross profit generated from the coal business in the first quarter was very strong at CAD 1.4 billion. So I think we're making very good progress, but that number is -- won't be a fixed number, and it depends on those factors.

是的。我認為這是一個公平的觀點。我認為，你總是必須考慮銷售時間、營運成本以及煤炭價格。因此，當我們通過時，這個數字將是動態的。但你顯然已經看到，第一季煤炭業務產生的毛利非常強勁，達到14億加元。所以我認為我們正在取得非常好的進展，但這個數字不會是一個固定的數字，它取決於這些因素。

The next question is from Carlos De Alba with Morgan Stanley.

下一個問題來自摩根士丹利的卡洛斯·德阿爾巴。

On QB2, I think I read in the release that the operations still had a negative gross profit, but I want to see in terms of EBITDA, if the company -- if the operation already broke even. And if not, if you can provide any color as to how do you see that, obviously, at a spot, say, assuming the spot copper prices, how do you see the path for positive EBITDA in the operation?

在 QB2 上，我想我在新聞稿中讀到，該業務的毛利仍然為負，但我想看看 EBITDA 方面，如果該公司 - 如果業務已經收支平衡。如果沒有，如果你能提供任何顏色來說明你如何看待這一點，顯然，在某個現貨，比如說，假設現貨銅價格，你如何看待運營中正 EBITDA 的路徑？

Thanks, Carlos. I think that in answer to your question, we don't disclose a separate number for QB EBITDA. But I think just in relation to where production levels, where costs were in the quarter, we were in a loss position from an EBITDA perspective. As we ramp up production through this year, we can expect that, that should improve. If we look at the run rate projections we provided when we did the Investor Day at QB, using a range of $350 to $450 per copper price we got to CAD 1.7 billion to CAD 2.6 billion of EBITDA generation from QB once production rates were up to full steady state.

謝謝，卡洛斯。我認為在回答你的問題時，我們不會透露 QB EBITDA 的單獨數字。但我認為，就本季的生產水準和成本而言，從 EBITDA 角度來看，我們處於虧損狀態。隨著我們今年產量的增加，我們可以預期情況會有所改善。如果我們看一下我們在 QB 舉辦投資者日時提供的運行率預測，請使用每銅價 350 至 450 美元的範圍，一旦生產率達到完全穩態。

All right, great. And then the follow-up is on the cost -- coal operation. You faced some difficulties in the quarter and your adjusted site cash cost of sales were elevated basically on some equipment failures. You retain your guidance for the year, which obviously assumes or suggest that things are going to improve. But I want to see if there is any color as to how things came out in March and April, just to get a sense of the cadence on that improvement?

好吧，太好了。接下來就是成本——煤炭營運。您在本季遇到了一些困難，調整後的現場現金銷售成本基本上由於某些設備故障而增加。你保留了今年的指導，這顯然假設或表明情況將會改善。但我想看看三月和四月的情況是否有任何變化，只是為了了解改進的節奏？

Yes. Thanks, Carlos. So I'll hand you to Robin Sheremeta, the President of the Coal business.

是的。謝謝，卡洛斯。我將把您交給煤炭業務總裁 Robin Sheremeta。

Thanks, Carlos. Yes, a few issues through Q1 only exasperated by the cold snap we had. We did have a number of equipment failures that occurred, nothing major, all pretty much a temporary resolve through that period. So with regards to March and April, as we go into those months, we've actually been performing quite strong. So our availabilities are back up to equipments back up. We had to get through that period of cold and then recovery from that. So I think things are well on track and as reviewed our forecast this morning, and we are well within guidance here through the rest of the year. So things are looking much better.

謝謝，卡洛斯。是的，第一季出現的一些問題只是因為我們遇到的寒流而加劇。我們確實發生了一些設備故障，沒什麼大不了的，幾乎都是在那段時間暫時解決的。因此，就三月和四月而言，當我們進入這幾個月時，我們實際上表現相當強勁。因此，我們的可用性取決於設備的備份。我們必須度過那段寒冷時期，然後從中恢復。因此，我認為事情進展順利，正如今天早上回顧的預測一樣，今年剩餘時間我們都在指導範圍內。所以事情看起來好多了。

The next question is from Bill Peterson with JPMorgan.

下一個問題來自摩根大通的比爾彼得森。

A little bit of a follow-on to earlier question about use of proceeds for some of your growth projects. I guess if you look at it today, how would you stack rank between San Nicolás, Zafranal, the QBS expansion. And just for the even longer-term assets, given where we see positive trends in copper, any opportunity to pull these forward or even maybe conversely, with the interest in M&A broadly, especially as we see today, would there even be interest to sell some of these assets that you may have.

這是之前關於您的一些成長項目的收益使用問題的後續問題。我想如果你今天看看，你會如何在聖尼古拉斯、扎弗拉納爾和 QBS 擴張之間排列排名。對於更長期的資產，考慮到銅的積極趨勢，任何推動這些資產向前發展的機會，甚至可能相反，隨著對併購的廣泛興趣，特別是正如我們今天所看到的那樣，是否會有興趣出售您可能擁有其中一些資產。

Yes, thanks for that question, Bill. Just picking up with some of the near-term projects here, we very much manage them as a portfolio, of course, they all have different risk and return characteristics. HBC being a brownfield and a relatively simple project here in British Columbia, Canada is certainly at the lower risk end of that portfolio. San Nicolás in Mexico, 50-50 JV with Agnico Eagle, a relatively simple greenfield project in terms of the scope with respect to us needing to add very little ancillary infrastructure to that as we can tap into available roads, power, port facilities, et cetera.

是的，謝謝你提出這個問題，比爾。只是在這裡挑選一些近期項目，我們非常將它們作為一個投資組合進行管理，當然，它們都有不同的風險和回報特徵。 HBC 是加拿大不列顛哥倫比亞省的一個棕地和一個相對簡單的項目，無疑地處於該投資組合中風險較低的一端。墨西哥聖尼古拉斯，與Agnico Eagle 建立50-50 合資企業，就範圍而言，這是一個相對簡單的綠地項目，我們需要添加很少的輔助基礎設施，因為我們可以利用現有的道路、電力、港口設施等等。

And then Zafranal in Peru, a little more complex than San Nicolás. But again, nothing like what we undertaken at QB2. So a portfolio, we think of both brownfield and greenfield projects, very manageable. One of those executed under a joint venture with Agnico, and we will progress all of those to complete studies, complete engineering, obtained permits. So it will enable us to make decisions on sanctions always with a primary view on optimizing shareholder value through the decisions that we take there.

然後是秘魯的札夫拉納爾 (Zafranal)，比聖尼古拉斯 (San Nicolas) 複雜一點。但同樣，這與我們在 QB2 所做的完全不同。因此，我們認為，在投資組合中，棕地和綠地專案都非常容易管理。其中一項是在與 Agnico 的合資企業下執行的，我們將推進所有這些工作以完成研究、完成工程設計並獲得許可。因此，這將使我們能夠始終以透過我們所做的決定來優化股東價值為主要觀點來做出製裁決定。

To your question on the rest of the portfolio, of course, we always evaluate the long-term value of these options to us and how we maximize value to shareholders, whether that's through the progression and derisking of those projects, whether ultimately through the development of those projects or whether there are other alternatives for those resources and projects, as you alluded to with respect to capitalizing on strength in the copper market. So again, a portfolio approach to what we have here, the advantage we have, of course, is a fairly significant suite of options across different jurisdictions, which does give us choices, and we'll make those choices very thoughtfully with a focus on creating volume.

當然，對於您對投資組合其餘部分的問題，我們始終評估這些選項對我們的長期價值，以及我們如何為股東實現價值最大化，無論是透過這些項目的進展和去風險，還是最終透過開發這些項目的情況，或這些資源和項目是否有其他替代方案，正如您所提到的利用銅市場的實力。再說一次，我們在這裡所擁有的投資組合方法，當然，我們擁有的優勢是跨不同司法管轄區的一套相當重要的選擇，這確實給了我們選擇，我們將非常深思熟慮地做出這些選擇，重點是創造體積。

Jonathan, I want to ask a lesser discussed segment of your zinc market. You discussed your views a little bit on the supply and demand. Zinc's recently just hit a 52-week high on the LME spot, albeit well off 2022 levels. You discussed some of the supply issues. But I guess, against the context of what you put in your slides where you see a slight surplus over the next few years, how should we think about the supply-demand trends within zinc and expectations around the direction of travel in terms of pricing?

喬納森，我想問你們鋅市場中較少討論的部分。您討論了一些關於供給和需求的觀點。 LME 現貨鋅近期剛觸及 52 週高點，儘管遠低於 2022 年的水準。您討論了一些供應問題。但我想，根據您在幻燈片中看到的未來​​幾年略有盈餘的背景，我們應該如何考慮鋅的供需趨勢以及圍繞定價方向的預期？

Yes, always happy to answer questions on zinc. It is one of our favorite commodities. So let me hand you over to Ian Anderson, our Chief Commercial Officer.

是的，總是很樂意回答有關鋅的問題。它是我們最喜歡的商品之一。讓我將您交給我們的首席商務官伊恩·安德森 (Ian Anderson)。

Thank you very much for the question. As Jonathan has said, in terms of supply, we have seen mine production down over the course of this year. That, of course, is faced with a period of low pricing that we've seen. And as a result, we wouldn't expect that all of those mines would come on during the course of 2024 or 2025. So we are expecting the market to be in deficit. Chinese concentrate imports last year were up about 14%, while at the same time, as we said, mine production down.

非常感謝你的提問。正如喬納森所說，就供應而言，我們看到今年的礦場產量有所下降。當然，這面臨著我們所看到的低價時期。因此，我們預計所有這些礦場都不會在 2024 年或 2025 年期間開工。去年中國精礦進口量增加了約 14%，同時，正如我們所說，礦場產量下降了。

So Chinese smelters bought quite aggressively at the end of last year. That then contributed to the low TC/RCs that we're seeing. And I would describe the market as in tightness right now and that's reflections. So optimistic about that, though, again, very tight supply and demand balance and depends both on smelters and their condition and similarly mine production.

因此中國冶煉廠去年底的採購相當積極。這導致了我們所看到的低 TC/RC。我認為目前市場處於緊張狀態，這就是反映。對此非常樂觀，儘管如此，供需平衡仍然非常緊張，並且取決於冶煉廠及其狀況以及類似的礦山生產。

The next question is from Brian MacArthur with Raymond James.

下一個問題是布萊恩·麥克阿瑟和雷蒙德·詹姆斯提出的。

It again goes back to the coal cash flows. Can you maybe just talk a little bit about your stripping over the next few quarters? Because again, you give annual guidance, but if this closes in Q3, you obviously won't get annual numbers. But in the first quarter, your capitalized stripping was like at a run rate well above the high end of your guidance for the year. And conversely, your capital spend is at the low end. So as we're trying to figure out the cash flows available to you, so this should close before year-end. Is it all more weighted on the capital and the capitalized stripping? Is it heavily weighted to Q1, Q2? And therefore, it's been depressed the cash relative to an annual number, or can you just talk a little bit about how that goes throughout the year?

這又回到了煤炭現金流。您能否簡單談談您在接下來的幾季中的脫衣舞活動？因為同樣，您會給出年度指導，但如果在第三季結束，您顯然不會獲得年度數據。但在第一季度，您的資本剝離速度遠高於今年指引的上限。相反，您的資本支出處於低端。因此，當我們試圖計算您可用的現金流時，這應該在年底前結束。是否更偏重於資本和資本化剝離？ Q1、Q2 的權重是否較大？因此，相對於年度數字，現金一直處於低迷狀態，或者您能談談全年的情況嗎？

Okay. The highest level, Brian, I would say that don't assume any major differences quarter-on-quarter here for the way that the business is operating. We expect this to be fairly consistent. But I suggest you get on with Fraser post-call, and he can run you through that in a bit more detail.

好的。布萊恩，最高層，我想說的是，不要假設業務運作方式與季度相比有任何重大差異。我們預計這將相當一致。但我建議你在電話後繼續與弗雷澤聯繫，他可以更詳細地指導你完成這個過程。

Okay. Well, maybe just ask a bigger, higher question, though, there's nothing you see then that really changes that original estimate of USD 1 billion cash flow over the time period from when you originally announced the deal in November for the 12 months. That's still good in numbers anything else other than maybe prices were higher. Is that a fair comment?

好的。好吧，也許只是問一個更大、更高的問題，但是，從你最初在11 月宣布這項交易開始的12 個月內，你所看到的任何東西都不會真正改變你最初估計的10 億美元現金流量。除了價格可能更高之外，這在數字上仍然不錯。這是一個公平的評論嗎？

Well, as Crystal said, prices will be a big variable in that. We've seen pressure in the unit's operating costs, at least in the first quarter not this year. And of course, ultimately, the timing of close of the transaction will be a big determinant as to what quantum of cash flow is flowing to tech ultimately there. So there are a few moving pieces there. But from an underlying operational perspective, including the key mining drivers here, nothing significantly different from what we assumed in our plans.

嗯，正如克里斯託所說，價格將是一個很大的變數。我們已經看到該部門營運成本的壓力，至少在第一季而不是今年。當然，最終，交易完成的時間將是最終流向科技公司的現金流量的重要決定因素。所以那裡有一些移動的部分。但從基本營運角度來看，包括這裡的關鍵採礦驅動因素，與我們計劃中的假設沒有顯著不同。

The next question is from Dalton Baretto with Canaccord Genuity.

下一個問題來自 Canaccord Genuity 的 Dalton Baretto。

Most of my questions have been answered. But Jonathan, I just want to circle back to M&A again. Just for a quick second. I just wanted to get your thoughts on -- I mean, you've allocated most of your proceeds from the Glencore sale to your growth pipeline. But I want to get your thoughts on the buy versus build argument just given valuations in the market today.

我的大部分問題都得到了解答。但是喬納森，我只想再回到併購。只是一會兒。我只是想了解您的想法 - 我的意思是，您已將出售嘉能可的大部分收益分配給了您的成長管道。但我想了解一下您對當前市場估值中購買與建造爭論的看法。

I mean, just to sort of clarify on the allocation of those proceeds, Dalton, we're allocating a fair bit of that to debt reduction, and we will allocate a significant portion of that to returning cash to shareholders. You're right in that the balance then of those proceeds, we will be using to invest in organic growth. Of course, we look at the -- like everybody, you have to look at the buy versus build dynamics in the market.

我的意思是，只是為了澄清這些收益的分配，道爾頓，我們將其中相當一部分用於減少債務，我們將其中很大一部分用於向股東返還現金。你說得對，我們將用這些收益的餘額投資有機成長。當然，我們像每個人一樣，必須關注市場上購買與構建的動態。

We think, in particular, with the projects we have ahead of us here which are smaller in scope and complexity that their capital intensities will be competitive and are likely to be more competitive than the acquisition of assets through M&A and again, which you can assess on a $1 per tonne of production basis. So that's the reason that we're pursuing the strategy we are because of the quality of the projects we have in the portfolio, the capital intensity that they can offer and therefore, the returns that will be available for value creation.

我們特別認為，我們面前的項目範圍和複雜性較小，它們的資本強度將具有競爭力，並且可能比透過併購收購資產更具競爭力，您可以評估這一點按每噸產量 1 美元計算。這就是我們奉行當前策略的原因，因為我們投資組合中專案的品質、它們可以提供的資本強度以及因此可用於價值創造的回報。

I will now hand the call back over to Jonathan Price for closing remarks.

現在我將把電話轉回給喬納森·普萊斯 (Jonathan Price) 作結束語。

Yes. Thank you, and thanks, everyone, for joining us today. Just to reiterate, we are operating well right now, and we've maintained guidance across all areas of the business. We're very happy to have QB construction behind us and the ramp-up of that will pass operation is proceeding to plan. We are focused on the completion of the EVR sale and the thoughtful allocation of proceeds with a focus on creating value for our shareholders. And we believe we have the right portfolio, the right people and the right opportunities to create significant long-term sustainable value for shareholders. As ever, any further questions, please reach out to Fraser or the IR team, and have a great day.

是的。謝謝你們，也謝謝大家今天加入我們。重申一下，我們目前運作良好，並且我們在所有業務領域都保持了指導。我們很高興 QB 建設已經完成，並且該項目的升級正在按計劃進行。我們專注於完成 EVR 出售和深思熟慮的收益分配，重點是為股東創造價值。我們相信，我們擁有合適的投資組合、合適的人才和合適的機會，可以為股東創造顯著的長期永續價值。一如既往，如有任何其他問題，請聯繫 Fraser 或 IR 團隊，祝您有美好的一天。

This brings to a close today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

今天的電話會議到此結束。您可以斷開線路。感謝您的參與，祝您有個愉快的一天。