Whether it's BHP Billiton (BHP), Glencore (OTCPK:GLNCY), or Anglo American (OTCPK:AAUKY), the basic story of weak commodity prices is dominating the investing environment. It's even worse for Teck Resources (TCK)
as this Canadian mining company is very heavily weighted toward
metallurgical coal and prices continue to scrape along the bottom. Teck
Resources has the benefit of unusually low production costs for its
major products (coal, copper, and zinc), but this low price environment
is pushing the company to cut costs and curtail expansion projects and
leading investors to worry about the dividend. I do like this stock as a
way to leverage better base metals and an eventual recovery in met
coal, but there is room to quibble about the fair value today.
Please read the full article here:
Teck Resources Hunkering Down
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