Topic: How To Invest

The Successful Investor Hotline – Friday, April 28, 2023

Article Excerpt

TECK RESOURCES LTD., $63.11, Toronto symbol TECK.B, remains a buy for investors seeking long-term gains from the Resources sector of their portfolio. The company has cancelled its plan to spin off its metallurgical coal (a key ingredient in steelmaking) operations as a separate firm. That’s due to difficulty securing the required two-thirds approval of the class B shareholders (1 vote per share), particularly as Switzerland-based mining firm Glencore plc (Over-the-counter Pink Sheets symbol GLCNF) has offered to acquire the company for about $23 billion U.S. in cash and shares. Insiders controlling the class A shares (100 votes per share) oppose the Glencore bid. Under the plan, the remaining copper, zinc, nickel and other mining businesses (operating as Teck Metals) would receive royalty payments from the coal spinoff for about six years. That diminished Teck Metals’ appeal with institutional investors, who are increasingly focused on companies with high environmental, social, and governance (ESG) scores. Teck is now working on a new proposal to separate the…