Teck is about to report earnings. As a miner they are held ransom to commodity prices and geo-political circumstances.
Any downturn in China which reduces demand for steel will have negative impact on demand for metallurgical coal and will immediately depress prices and margins.
Mining costs have been rising very quickly in the past few years. As commodity prices cycle down Teck may get caught with classic high cost producer problems and will be forced to swing the axe and machete.
Teck’s copper properties are not low-cost. any downturn in prices will hurt quickly.
On the other hand Teck has properties in Canada, Chile and the USA. All countries are politically stable and do not politically interfere with ongoing operations. Furthermore there are few remaining sources of good metallurgical coal and Teck will profit when the planets align correctly.
George Gutowski writes from a caveat emptor perspective.