Record profits for Teck

Article Excerpt

TECK RESOURCES LTD. $41 is a buy. The company (Toronto symbol TECK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 531.1 million; Market cap: $21.8 billion; Price-to-sales ratio: 1.1; Dividend yield: 1.2%; TSINetwork Rating: Extra Risk; www.teck.com) is a leading producer of metallurgical coal, a key ingredient in steelmaking. It also produces copper and zinc. Prices for Teck’s commodities continue to rise as industrial activity rebounds. As a result, its revenue in the three months ended June 30, 2022, jumped 126.2%, to $5.79 billion from $2.59 billion a year earlier. If you factor out unusual items, overall earnings in the quarter soared to a record $1.77 billion, or $3.25 share, from $339 million, or $0.63. To meet rising copper demand, Teck is currently expanding its Quebrada Blanca copper mine in northern Chile. The project—called QB2—will increase the company’s copper production 60% and extend the production life of the Quebrada Blanca complex by 28 years. QB2 should begin operating in late 2022. Teck Resources is a buy. buy. …

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