Teck Resources aims to increase copper production by 40% over the period 2009-2013 and triple output over the next decade. While long-term projects could be expensive and complicated, CEO Don Lindsay indicates the company could self-fund the projects and meet other cash needs by even discounting the current commodity prices, according to a JPMorgan report. Additionally, Teck will benefit in the long term, given the exposure to high-growth emerging markets through copper, coal and zinc exports.
For the current quarter, the company is anticipated to reports earnings of $1.22 per share, in comparison with the 70 cents reported in the year-ago period. Teck is set to report 2010 earnings of $3.55 per share and $5.30 per share for 2011, in comparison to earnings of $3.27 in 2009, according to analysts polled by Bloomberg. Of the 18 analysts covering the stock, 13 recommend buying, four suggest holding and one advises selling.
Ahead of its peers, the stock surged 20% during the past one month on increasing copper and metallurgical coal prices. Year-to-date, the stock jumped 61%, in comparison to Freeport-McMoRan Copper & Gold's (FCX) and Southern Copper's (SCCO) gains of 40% and 42%, respectively. During the same period, mining giants Rio Tinto (RIO), BHP Billiton (BHP) and Vale (VALE) gained 28%, 16% and 18%, respectively.