Couple things about TECK.I've read a lot from the bashers that Teck won't back in because of a global commodity slowdown and because its' market cap has dropped significantly. Despite that the slowdown will be temporary, especially in emerging markets where I suspect it will be very temporary. (Aside, what is temporary in this digital, knee jerk, panic driven day and age? 14 minutes or 3-6 months?)
Anyways, let's take a closer look at Teck:
Operating profit by BU
Coal - 59%
Copper - 30%
ZInc - 11%
Hmmmm lets see steel production globally has peaked and coal is a declining commodity for energy usage, regardless of the economic conditions.
Copper prices are down on short term volatility and economic slow down, but will be in high demand over the medium term. There are questions about whether the copper demand has even really slowed down, or just caught it's breath and been subject to market manipulation. Regardless, even if copper demand stays steady, I'd rather produce copper in BC than Mexico (BAJ).
Zinc is relatively stable and less material.
What would you invest in if you were running Teck? What about if you have the opportunity to execute a lucrative and mutually beneficial deal through a back in arrangement? With a sound and financially attractive BFS ready to raise capital against when the time comes?
Most of the recent analyst calls on Teck have been Buy, Hold, or Wait.
https://stockchase.com/Company.php?search=Teck
The analysts understand the big picture. Wait three months, when things will have "normalized" and the focus will be on the next crisis. Bottom line - it doesn't f*cking matter. If you can earn an IRR of 25%+ on a safe project in Canada with copper prices at $2.50 and PM prices at who knows how high, then you back in. EOM