Teck’s 2019 outlook is bright

Article Excerpt

TECK RESOURCES LTD. $30 (Toronto symbol TECK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 573.6 million; Market cap: $17.2 billion; Price-to sales ratio: 1.4; Dividend yield: 0.7%; TSINetwork Rating: Extra Risk; www.teck.com) is a leading producer of metallurgical coal, copper and zinc. Teck’s new growth projects should fuel its earnings in 2019 and beyond. They include its 21.31% of the Fort Hills project of northern Alberta, which reached full production in late 2018. The company is also expanding its 90% Quebrada Blanca copper mine in northern Chile; the Chilean government owns the remaining 10%. The project should substantially increase Teck’s annual copper production and extend the production life of the complex by more than 25 years. The stock trades at just 6.9 times Teck’s projected 2019 earnings of $4.35 a share. The $0.20 dividend yields 0.7%. Teck is a buy. buy…

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