Teck Resources Ord Shs Class A T.TECK.A

RE:RE:Will Teck Resources Ltd.’s Monster Rally Continue?

[VOKBLVR]

It was my understanding from a recent Teck presentation was that zinc was already in a deficit position and that the price run up from .70 to .90  per pound meant that the benefit to the bottom line for the company was several million dollars per penny of price increase. Do not forget that India's growth rate now exceeds China and India is also a consumer of coking coal. I understand that high grade Metallurgical coal prices are now about $100.00 per ton and for Teck each $ increase per pound translates to $23 million dollars in profit. The increase in copper prices as I understood the presentation was for some strength to be found in the latter half of this year rather than now. and for copper prices to be later than zinc to recover.. The recent restructuring of the debt due in 2017 means that there is no pressure on Teck until after the planned start up of Fort Hills and according to Teck presentations the actual operating costs for Fort Hills will be in the vicinity of $25.00 per barrel. If this number is correct then there is lots of room between the selling price of $60.00 and a cost of $25 to pay back some capital. From my viewpoint Teck is still undervalued and should continue to gain ground as commodity prices rebound. 
Long and going along for the ride.