Teck Resources stands as a high-margin, pure-play supplier of critical energy transition metals by following the strategic divestment of its legacy steelmaking coal assets. Copper demand is entering a multi-decade structural bull market driven by global grid modernization, electric vehicle adoption, renewable energy expansion, and power infrastructure for AI data centers. With the QB project now past its capital-intensive construction phase and contributing record sales, the business is poised to convert its expanding production volumes into substantial cash flow.
The stock trades at 17.4 times the company’s forward earnings forecast. Given double-digit projected earnings growth, record sales volumes from the ramped-up Quebrada Blanca mine, and high operating leverage to buoyant copper prices, this multiple is fully justified.
TECK RESOURCES LTD. (Toronto symbol TECK.B; www.teck.com) operates copper and zinc mines. Those include the second phase of the Quebrada Blanca copper mine in northern Chile (called QB2). The company holds a 60% stake in QB2.
Teck remains on track to merge with U.K.-based mining company Anglo American PLC (Over-the-counter symbol AAUKF).
Under the terms of the deal, investors will receive 1.3301 of an Anglo share for each Teck share they hold. Teck shareholders will own 37.6% of the combined company (called Anglo Teck), with Anglo investors holding the remaining 62.4%. The shares will trade on the London, Toronto and New York exchanges.
As well, combining the two firms’ copper mining operations in Chile—Quebrada Blanca and Collahuasi (44% owned by Anglo)—will cut its annual costs by $800 million U.S.
The companies expect to complete the transaction in late 2026 or early 2027.
Meanwhile, the federal government has now agreed to invest $400 million in Teck’s $850 million plan to upgrade its metals-processing facility in Trail, B.C.—a way to lift the country’s production of increasingly important critical minerals.
The plan will raise Trail’s output of critical minerals, such as germanium, antimony and gallium, as global demand rises and U.S. manufacturers, in particular, look for supply outside of China. The metals are key components in computer chips, batteries and electronic devices, all of which are key to the buildout of AI infrastructure.
Note—Teck has not yet said when it expects to complete the Trail upgrades, but the government pledge comes ahead of the company’s planned merger with Anglo American.
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Teck’s results powered by copper and zinc demand and prices
Teck continues to benefit from improving demand and prices for copper and zinc. It’s also improving the performance of its Quebrada Blanca copper mine in northern Chile (called QB2). The company holds a 60% stake in QB2.
Teck’s revenue in the three months ended June 30, 2026, jumped 78.2%, to $3.61 billion from $2.02 billion a year earlier. That also topped the consensus forecast of $3.27 billion.
The higher revenue helped lift earnings in the quarter, before unusual items, by 407.9%, to $1.93 a share (or a total of $948 million) from $0.38 a share (or $187 million). That easily beat the consensus estimate of $1.15 a share.
Teck’s shares have gained almost 42% since the start of 2026. That’s largely due to rising prices for copper, particularly as new artificial intelligence datacentres need large amounts of the metal for electrical power and cooling equipment.
For all of 2026, Teck’s earnings will probably rise about 74% to $5.36 a share. The stock trades at an attractive 17.4 times that forecast. The $0.50 dividend yields 0.5%.
Recommendation in The Successful Investor: Teck Resources Ltd. is a buy.
