TSX:TECK.A - Post by User
Comment by
VOKBLVRon Jan 03, 2019 7:56pm
143 Views
Post# 29184143
RE:bottom
RE:bottomWhy sell now? Coal prices are ab ove $200.00 per Tonne $US cost to produce and get the coal onto a boat is about US$75.00. Zinc is about US$1.15 and cost is about US$.48/lb The company just signe on with Sumitomo for 40% of QB2 with a cash downstroke that means that Teck will not have to take one nickel out of their jeans until late 2020. Copeer inventories are still shrinking although the spot price has dropped recently probably due to fear of a reduced demand going forward but none of the copper mines where Teck is nvolved will be unprofitable and all have long lives going forward. Go ahead and sell if you want- but I think that sticking around in this company will prove to be a good thing as long as can stand the pain of being underwater without a margin call. Teck announced that thety are consdering an additional dividend after closing the QB 2 deal.
The price of oil is abit of a bummer but remember that fuel costs are a major input costs at the truck and shover operations that Teck and partners operate, and the lower $CDN offsets some of the pain being inflicted at Fort Hills.