Post by
4CommonSense on Jun 01, 2024 12:41pm
Teck has a couple of major issues it can't avoid
1) After selling the coal assets, Teck will never replace 75% of its gross profit and 60% of its net earnings with copper earnings
2) Teck only has 1 good source of copper (Chili) HVC is on its last legs- well past its 'best by' date
3) Teck is lacking in finanial resources and acqumen and cannot acquire or develop anything significant (particulerly in the area of copper). It is destined to remain minor mining company - not a significant player in the mining industry
4) Teck is not blessed with good management or BoD - both, unfortantely, only cater to the whims of worlds' greatest mining genius (in his humble opinion) - the other s/hs are simply cannon fodder.
5) Teck's share structure means Teck is not going to be taken over
6) Teck can not paya a reasonbale dividend -- it needs every cent to pay down its debt and create some sorto financail leverage.
The bottom line is this is not a stock with a lot of growth potential now orin the future. The current price is a result of wishful hoping and trend chasing in terms of CU pricie. I.E little hope
Much better investment opportunities available in the mining industry.