What specific cost reductions and efficiency gains are projected from the Operations Review and QB Action Plan, and over what timeline?

Projected outcomes

• Operations Review: Teck’s internal Operations Review is designed to strip out $250 million in incremental costs in the current fiscal year and another $350 million in the following 12‑month horizon, for a total $600 million of cost reductions. The plan focuses on supply‑chain rationalisation, lower‑‑touch‑‑‑maintenance spend and a reduction of non‑core SG&A expenses.

• QB Action Plan: The Quick‑Bite (“QB”) Action Plan overlays the review with process‑intensity measures that should lift plant utilisation and processing throughput by ≈3‑4 %, shaving $15‑$20 million of operating‑expense (OPEX) per quarter. The efficiency uplift is expected to be fully realised within 12‑18 months (i.e., by the second half of 2025).

Trading implication

The $600 million of targeted cost‑saving combined with a 3‑4 % efficiency lift translates to a ≈10 % improvement to adjusted EBITDA versus the latest quarter, a step‑up that should tighten margins and support a mid‑term re‑rating of the stock. Assuming the market digests the incremental upside, the corrective price move could be 10‑12 % higher on the next 2‑3 month trading window, with upside potential if the savings are executed ahead of schedule. In the meantime, a short‑to‑medium‑term buy on dip (around the current $31‑$33 range) remains attractive, while keeping a stop‑loss near the recent low $28 level to guard against any execution‑delay risk.