Teck Resources Ltd (C:TCK)
Shares Issued 566,805,741
Last Close TCK.B 3/23/2015 $19.75
Tuesday March 24 2015 - In the News

Also HudBay Minerals Inc (C:HBM) In the News

The Financial Post reports in its Tuesday edition Teck is facing challenging times. The Post's Peter Koven, writing in Trading Desk, says the company is dealing with weak coal prices and has huge spending commitments at the Fort Hills oil sands project. That is putting some pressure on its balance sheet. National Bank analyst Shane Nagle thinks he has the solution to Teck's problems: buy HudBay Minerals. He figures acquiring HudBay would give Teck greater exposure to copper and zinc, which today have better fundamentals than coking coal. Teck would also get some growth opportunities on the copper side, which it is currently lacking because it has not greenlighted either of its two big internal projects: QB2 and Relincho. "The pro forma company would have an improved growth profile, stronger balance sheet, free cash flow generation and more compelling valuation," Mr. Nagle said in a note. He offered a couple of ways Teck could do this deal. One scenario is to issue all stock. Another would be to offer stock plus a cash component of $5 a share. Mr. Nagle thinks Teck could raise the cash by selling a 20-per-cent silver stream from its Trail, B.C., plant. HudBay's market value is about $2.3-billion.