TECK RESOURCES LTD

COPPER SEGMENT

Notes:

Performance

Gross profit from our copper segment increased to $1.3 billion in the second quarter from $328 million in the same period last year(see table below), primarily due to significantly higher copper prices and higher copper production volumes. Q2 2026 sales volumes were in line with production in the quarter.

Copper production increased to 135,900 tonnes in the second quarter compared with 109,100 tonnes in the same period last year. The increase was due to higher production at each of our copper operations. Production increased at Highland Valley Copper and Antamina due to higher grades, as expected in the mine plan. In Q2 2025, Antamina had an extended shutdown due to a fatality, which also contributed to the comparatively higher production. QB produced 55,800 tonnes of copper in the second quarter compared with 52,700 tonnes in the same period last year with continued operational stability and ongoing TMF development supporting higher sustained operating rates.

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

Property, plant and equipment expenditures in the second quarter totalled $544 million. Sustaining capital totaled $223 million, of which $163 million related to QB. Growth capital of $321 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 $139 million in the second quarter compared with $35 million in the same period last year. The increase relates to $62 million of capitalized stripping costs related to HVC MLE with the remainder due to higher waste movement at Antamina and QB in line with mine sequencing.

Markets

In the second quarter of 2026, LME copper prices increased by 3.6% compared with the previous quarter and 40.0% over the same period last year, averaging US$6.05 per pound. This represented the third quarter in a row of all-time nominal highs in quarterly average prices, and the first in history averaging above US$6.00 per pound. Following early quarter volatility closely related to the conflict in the Middle East, LME prices stabilized in the US$5.90–US$6.30 per pound range, well above historical averages.

The copper concentrate market remained very tight during the quarter, resulting in spot treatment and refining charges falling to new record lows. A key element of this was the surge in sulphuric acid prices following disruption to Middle East sulphur supply. With this, smelters had economic incentive to maximize output to boost acid by-product sales, and were willing to accept lower treatment charges to source raw material. 2026 is proving to be another year where there is an imbalance between the volume of concentrate available from global mines, and that desired by smelters to maximize production. As such, global smelter utilization remains below average levels observed over the past decade.

Despite prevailing growth concerns, copper demand remains resilient, supported by investment in grid infrastructure and electricity intensive products. In particular, the market excluding China is now exhibiting positive growth, supported by strong Chinese wire and cable exports.

Global copper inventory held in exchange warehouses fell by around 190,000 tonnes in the second quarter, in line with usual seasonality. Over half of exchange inventory is now in U.S. warehouses, 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.