TSX Commentary

Teck reported Q3/09 fully diluted adjusted EPS of $0.47 versus $0.36 in Q2/09 and $1.19 in Q3/08. The adjusted number of $0.47 was in line with RBC CM’ estimate of $0.46. Elk Valley sales were 5.7 million tonnes in the quarter versus target of 6.0 million tonnes, including 0.7 million tonnes of 2008 carry-over tonnage and 0.7 million tonnes of spot sales. 2009 sales guidance was raised slightly to 19.5-20.5 million tonnes from 18-20 million. Price guidance was lowered slightly to US$155-$158/tonne from US$155-$160/tonne, as the proportion of thermal and PCI sales in 2009 is expected to be 13% versus average guidance
Page 3 October 29, 2009
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RBC DOMINION SECURITIES
of 10%. RBC CM’ analysis suggests that Teck no longer has any liquidity or balance sheet problems. The company no longer has to sell assets and can be very patient when executing its strategy of selling 20% of Elk Valley. RBC CM believes Teck will continue to benefit from its diversified product mix and strong asset base. The shares are trading at a discount to NAV even after a tremendous run-up in price. RBC CM maintains its Outperform recommendation.