Topic: How To Invest

The Successful Investor Hotline – Friday, April 14, 2023

Article Excerpt

TECK RESOURCES LTD., $60.43, Toronto symbol TECK.B, remains a buy for investors seeking long-term gains from the Resources sector of their portfolio. This week, Switzerland-based mining firm Glencore plc (Over-the-counter Pink Sheets symbol GLCNF) launched a new offer for the company. Under its first bid, Glencore proposed to buy Teck for about $23 billion U.S. in stock. This new offer is still for the same amount but includes a cash component of up to $8.2 billion U.S. (or 24%). If successful, Glencore plans to combine and spin off its thermal coal (used to generate electricity) operations and Teck’s metallurgical coal (a key ingredient in steelmaking) operations as a separate firm. The remaining operations will focus on their combined copper, zinc, nickel and other mining businesses. Teck has now rejected Glencore’s second offer, like it did the first. Instead, it still plans to spin off its coal operations as a separate, publicly-traded company called Elk Valley Resources Ltd. (EVR). Investors will receive 0.1 of a common share…