Teck Resources offers investors compelling exposure to copper: the metal most critical to the global energy transition through a portfolio of world-class assets positioned to benefit from structural demand growth over the coming decades.
The upcoming merger with Anglo American could create one of the world’s top five copper producers, with more than 70% of the combined business centered on copper and pro forma production projected to reach 1.35 million tonnes by 2027.
Beyond the merger rationale, the company has a strong growth profile and will gain from the structural tailwinds supporting copper demand from electrification, renewable energy infrastructure, and data center expansion.
TECK RESOURCES LTD. (Toronto symbol TECK.B) 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 has ended its alliance with Arras Minerals Corp. (Toronto Venture symbol ARK), which is exploring for copper in the Pavlodar region of Kazakhstan. Since 2023, Teck has contributed $5 million U.S. to these efforts.
Cancelling the Arras deal should help simplify Teck’s upcoming merger with 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.
The merger will let the companies combine their major copper mines in Chile—Quebrada Blanca (60% owned by Teck) and Collahuasi (44% owned by Anglo). That will help the new firm cut $800 million U.S. from its annual costs.
Copper will account for 72% of the new company’s production, followed by iron ore (22%) and zinc (6%).
Shareholders of Teck and U.K.-based mining company Anglo American PLC (Over-the-counter symbol AAUKF) have approved the plan. Canadian officials have also approved the deal. If regulators in other countries also approve, the companies expect to complete the transaction in late 2026 or early 2027.
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Mining Stocks: Teck Resources posts surging profit on higher prices
Thanks to rising copper prices (up 37.5%) and sales volumes (up 46.2%), as well as a 14.0% increase in zinc prices, Teck’s revenue in the three months ended March 31, 2026, jumped 72.2%, to $3.84 billion from $2.29 billion a year earlier. That also topped the consensus forecast of $3.24 billion.
The higher revenue helped lift earnings in the quarter, before unusual items, by 191.7%, to $1.75 a share (or a total of $858 million) from $0.60 a share (or $303 million). That beat the consensus estimate of $1.15 a share.
The company’s copper mines in Chile rely on imported diesel fuel, and the Iran war is pushing up those costs. Even so, earnings for all of 2026 will rise about 28% to $3.97 a share. The stock trades at 19.7 times that forecast. That’s a reasonable multiple considering Teck’s high-quality properties and the cost savings ($800 million U.S. a year) expected from the merger with Anglo American. The $0.50 dividend yields 0.6%.
Recommendation in The Successful Investor: Teck Resources Ltd. is a buy.
