Topic: How To Invest

The Successful Investor Hotline – Friday, July 12, 2024

Article Excerpt

TECK RESOURCES LTD., $69.23, Toronto symbol TECK.B, remains a buy. The company is a leading producer of metallurgical coal, a key ingredient in steelmaking. It also produces copper and zinc. In November 2023, Teck agreed to sell its coal business, known as Elk Valley Resources (EVR). In January 2024, Teck sold 23% of EVR to Japanese steel maker Nippon Steel Corp. (which holds 20%) and South Korea’s POSCO (which holds the remaining 3%). It received a total of $1.3 billion U.S. The company will sell the remaining 77% to Switzerland-based mining company Glencore plc (Over-the-counter Pink Sheets symbol GLCNF) for $7.3 billion U.S. Canadian regulators have approved the transaction, and Teck completed the sale on July 11, 2024. The company will use $2.0 billion U.S. of the proceeds to pay down its long-term debt of $6.17 billion (as of March 31, 2024). That’s equal to 17% of its $35.9 billion market cap (the total value of all outstanding shares). Teck will spend a further $2.0 billion U.S….