| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 18.00 | -67 |
| Intrinsic value (DCF) | 15.80 | -71 |
| Graham-Dodd Method | 27.40 | -49 |
| Graham Formula | 25.90 | -52 |
Teck Resources Limited (NYSE: TECK) is a diversified Canadian mining company with a century-long legacy in natural resource exploration, development, and production. Headquartered in Vancouver, Teck operates across key segments including Steelmaking Coal, Copper, Zinc, and Energy, serving global markets in North America, Asia, and Europe. The company is a major producer of steelmaking coal, copper concentrates, and zinc, with additional outputs of gold, silver, and specialty metals like indium and germanium. Teck holds strategic assets such as the Frontier oil sands project in Alberta and exploration interests across Chile, Peru, and Australia. With a market cap of ~$18 billion, Teck is a critical player in the basic materials sector, supporting industrial and energy transition demand. Its vertically integrated operations and focus on sustainable mining practices position it as a key supplier in the global commodities market.
Teck Resources offers exposure to essential industrial and energy transition commodities, with diversified revenue streams from steelmaking coal, copper, and zinc. The company’s strong operating cash flow ($2.8B in latest reporting) and liquidity ($7.6B cash) provide resilience, though its high debt ($9.97B) and beta (1.35) reflect cyclical risks. Copper and zinc demand growth—driven by electrification and infrastructure—could offset coal’s long-term uncertainties. Investors should weigh Teck’s cost leadership in steelmaking coal against ESG pressures and volatile commodity prices. The 0.73/share dividend yields modest income, but capital expenditures ($2.6B) signal aggressive growth investments.
Teck Resources competes through scale, geographic diversification, and cost efficiency. Its steelmaking coal business benefits from high-quality reserves in British Columbia, serving Asian steel producers with logistical advantages over Australian rivals. In copper, Teck’s Quebrada Blanca and Highland Valley mines provide tier-1 assets, though it lacks the pure-play focus of larger peers like Freeport-McMoRan. Zinc operations (e.g., Red Dog Mine) are industry-leading in low-cost production. Teck’s energy segment (oil sands) is a minor differentiator but adds optionality. The company’s competitive weaknesses include reliance on coal (50%+ of EBITDA) amid decarbonization trends and smaller copper output compared to global majors. Its ESG initiatives (e.g., carbon reduction targets) lag behind peers like BHP, potentially affecting access to capital. Vertical integration in zinc (from mining to refining) and strategic partnerships (e.g., with Nippon Steel for coal) bolster its moat.