Teck Resources Ltd "Anglo-Teck: Copper growth and Self-help" (Buy) Allsop

Research evidence excerpt

Teck Resources Ltd "Anglo-Teck: Copper growth and Self-help" (Buy) Allsop

26E

consolidate after the sharp increase so far in 2026 with macro risks elevated, demand From To % ch Cons.

signals mixed, smelter output holding up & exchange inventories up. Q1E 1.75 1.75 0 1.75

Q2E 1.21 1.24 3 0.98

Anglo-Teck: Material copper growth over next 5yrs from world-class assets Q3E 1.06 1.09 2 1.08

Key catalysts near term include: 1) approval of the merger by Chinese regulators Q4E 1.27 1.31 3 0.99

(expected shortly with limited concessions); 2) decision by TSX on index inclusion of 12/26E 5.21 5.30 2 4.84

Anglo-Teck (net buying); 3) potential sale of De Beers with the process now reported to 12/27E 5.60 5.72 2 4.20

be advanced; 4) QB-C JV to be agreed with GLEN/ partners (expected in 1H27) with 12/28E 3.86 4.03 4 2.94

synergies materially higher than $1.4bn due to copper price. Anglo reports 2Q Myles Allsop

production on 23-Jul and 1H results on 30-Jul; visibility is currently limited on volume Analyst

trends though we expect Anglo to lift unit cost guidance for Copper & Iron ore (given myles.allsop@ubs.com

inflationary pressures, partly offset by weaker ZAR). Teck reports 2Q results on 23-Jul; we +44-20-7568 1693

see potential for QB guidance to be lifted after strong 1Q. Daniel Major

Analyst

Valuation: Buy; target based on 9x EV/EBITDA at discount to key copper peers daniel.major@ubs.com

We expect Teck to rerate over the next 12mths as mgmt delivers synergies from the +44-20-7568 3472

agreed Anglo-Teck merger and the stock repositions as a high-quality copper equity Alex Stansbury, CFA

(from a diversified miner). Our price target of C$105/sh is based on an EV/EBITDA Analyst

multiple to 9x EV/EBITDA, at a discount to ANTO & SCCO. alex.stansbury@ubs.com

+1-212-882 0097