Topic: How To Invest

The Successful Investor Hotline – Friday, February 28, 2020

Article Excerpt

TECK RESOURCES LTD., $13.50, Toronto symbol TECK.B, remains a buy for investors seeking long-term gains in the Resources sector of their portfolio. The company is a leading producer of metallurgical coal, a key ingredient in steelmaking. It also produces copper and zinc. Teck has now decided to suspend work on its proposed Frontier oil sands project in northern Alberta. Two reasons seem behind the decision: it is widely believed that Ottawa was unprepared to approve the project; and low oil prices have hurt Frontier’s economic viability. As a result, Teck will now write down the entire $1.13 billion carrying value of Frontier. Low oil prices have also forced the company to write down the value of its 21.3%-owned Fort Hills oil sands project by $1.2 billion. If you factor out unusual items, Teck earned $122 million in the fourth quarter of 2019. That’s down 76.6% from $500 million a year earlier. Due to fewer shares outstanding, earnings per share dropped 74.4%, to $0.22 from $0.86….

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