Topic: How To Invest

The Successful Investor Hotline – Friday, September 24, 2021

Article Excerpt

TECK RESOURCES LTD., $31.34, Toronto symbol TECK.B, remains a buy for investors seeking long-term gains from 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. In addition, Teck owns 21.31% of the Fort Hills oil sands project of northern Alberta. Wildfires in British Columbia have disrupted Teck’s zinc operations, including a 10-day shutdown of its smelter in Trail. Manufacturers use zinc to make steel more resistant to rust and corrosion. As a result, the company expect its zinc production for 2021 will range from 285,000 tonnes to 290,000 tonnes. That’s down from its earlier forecast of 290,000 tonnes to 300,000 tonnes. The wildfires will also cut Teck’s 2021 coal production by roughly 2%. The company is still reportedly trying to sell or spinoff of its metallurgical coal business. In the second quarter of 2021, coal accounted for 43% of its revenue and 35% of its gross profits. Separating the…