TSX:TECK.A - Post by User
Post by
retiredcfon Feb 02, 2022 11:16am
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Post# 34389151
Scotia Capital
Scotia Capital Scotia analyst Orest Wowkodaw presented his top picks in the mining sector,
“We anticipate very robust Q4/21 financial results for the miners driven by elevated commodity prices, although our estimates appear largely in-line with consensus. More important, we anticipate investors to focus on the release of maiden 2022 guidance. In our view, higher than anticipated 2022 opex [operating expenses] and capex [capital expenditure] could weigh on near-term sentiment despite very robust margins. We anticipate few company specific catalysts… with most larger companies practicing major growth discipline, we continue to see the potential for improved shareholder returns ahead (FCX announced a $3.9B buyback/dividend in late 2021; FM-T and CIA-T recently introduced new dividends; TECK-B could also surprise with a modest capital return ahead of the completion of QB2)… Preferred equity exposure. In our view, ERO-T [ Ero Copper Corp.] , FM-T [First Quantum Mineral Ltd.], IVN-T [Ivanhoe Mines Ltd.], LUN-T [Lundin Mining Corp.] , and TECK.B-T [Teck Resources Ltd.] all appear fairly well positioned heading into the Q4 reporting season. Moreover, CIA-T and FCX-N have already reported and therefore offer respite from potential disappointing news.”