RE: two years agoThere is no comparision what so ever to 2 yrs ago. wages and materials have probably gone up by 20-25%, and more importantly teck had zero net debt 2 yrs ago, and mega cash in the bank. If teck had've paid out all their earnings, and the 4 bln they spent on Aur, plus other wastes like galore, diamonds, and ft hills, it wouldve been abput 15-20 bucks a share in dividends, instead we're left weith this dogs breakfast.
the FGD debt is now 26 dollars per share.
you have to look at things in scale here, ie the debt is 8 times the market cap, thats FN unheard of, and its has an operational cash flow P/E of 1 to 1 even at current metal prices!! It screams as an earlier post eluded to, the company is priced for failure., or at least a major break up, disposal, or rediculous share base dilution. I can see the banks taking up to a 50% stake in the company if the "call" for interest or principal can't be made. this is truly a non-investment grade stock, junk, there are jrs with no producing assets whatsover with less downside risk than teck.
take taseko. they have little debt, and wont survive either if copper goes much lower, but the ROI would be about same or greater than tecks for the same price increase in copper, plus they have that fabulous insurance instrument called gold in their reserves / future production, so really not much downside.