These are ugly days in the natural resources sector as the bottomless
pit that was China's appetite for mined commodities apparently had a
bottom after all. Most of the well-known miners have racked up
double-digit losses over the past year, and companies with outsized
exposure to iron ore (like Vale (Nasdaq:VALE) metallurgical coal like Teck Resources (NYSE:TCK) have suffered even worse.
It may not be the worst time to think about Tech Resources, though. The
combination of mines that are still profitable at spot prices,
extensive production expansion potential, good liquidity, and global
prices that are having miners contemplating production curtailment could
make this an appealing time to consider this beaten-down miner, but
investors need to prepared for conditions to get uglier before they turn
around.
Please read the full article here:
http://www.investopedia.com/stock-analysis/062513/teck-profitable-liquid-and-maybe-too-cheap-tck-fcx-bhp.aspx
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