I read the transcript of the interchange between Don Lindsay and Grant Moenting of Paradigm Capital. It is easier and clearer to read the transcript than to listen to a replay of the conference call. The transcript is posted on seeking alpha.

http://seekingalpha.com/article/2020541-teck-resources-ceo-discusses-q4-2013-results-earnings-call-transcript

The conversation referenced possible expansion of copper output. came away with a different interpretation of Don Lindsay’s final statement that: “So the sellers' expectations are often very high and we haven't been willing to pay it.” I do not think he was referring to Copper Fox for the following reasons.

1. At the start of the conversation, Moenting asks whether Teck would prefer to expand by buying existing producing assets (immediate production) or by developing projects currently in Teck’s pipeline (build strategy). Lindsay replies that they would look at both options and they could buy an existing projeIct if it was better than the options currently in their pipeline. He goes on to explain that the advantage of owning 76% of QB or100% of Relincho (i.e. projects in their pipeline) is that they control the schedule and could delay those projects if a buy option is better. Note -- Teck owns 75% of Shaft Creek and Schaft is already in their pipeline.They can move Schaft forward if it merits a higher priority or they can put it on the backburner for a future time if some other option (either in the pipeline or on the market) has a higher priority.

2. Moenting pushes further with his enquiry, suggesting that in the current environment it is cheaper to buy than develop production. Lindsay says “it depends”, especially when buying a high-quality, long-life projects is so difficult. Lindsay affirms that the quality of resource and mine life is their priority for achieving value creation for shareholders.

3.And then Moenting questions whether that is a complete explanation. He asks whether a low price for buying production would be a consideration. Lindsay acknowledges that price is always a consideration – that they are always trying to get the right value proposition. He goes on to say that sellers’ expectations are often too high. Note that sellers in this case is in reference to projects that are not in their pipeline.

4.In reply to Sal Tharani of Goldman Sachs, (re Teck’s involvement in the sale offer of Las Bambas by Glencore), Don Lindsay said they do not comment on speculation. He went on to say that they get many offers of sale – some which merit 5 minutes of consideration, some with 5 days, and some with 5 weeks (and detailed due diligence). While Schaft Creek is certainly in the 5 weeks or more category, there has been no confirmation that Ernesto suggested a price prior to the JV or that Teck has made an offer. With so many situations on Teck’s plate, any suggestion that Lindsay is referring to Schaft Creek is pure speculation

5.Don Lindsay’s response was to a question about buying assets that (1) have existing production and (2) are outside their existing pipeline of projects. Shaft Creek does not have existing production and it is within Teck;s pipeline. Therefore, it is inappropriate to attribute his comments to Copper Fox and Schaft Creek.

The key takeaway I got from Teck’s presentation is that they are always evaluating options for the best use of capital, not only within the copper sphere but also between their 4 areas of diversification – copper, coal, zinc and oil sands. Within their objective of diversification, Shaft Creek has to compete.