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.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV