Teck Resources: Significantly Undervalued With High Upside Potential

Michael Hughes profile picture
Michael Hughes
61 Followers

Summary

  • Teck Resources is delivering record sales and profits, has crushed the S&P 500 in the past 12 months, and yet is only trading at 4x earnings.
  • The diversified mining company aims to expand copper production by over 340% in ten years, which includes doubling output next year.
  • This is part of Teck Resources' long-term strategy to rebalance its portfolio amid the global net-zero carbon transition.
  • Despite impressive growth prospects, the stock is potentially trading at about 40% below its intrinsic value.
Copper Sheets

mabus13

Investment Thesis

Teck Resources (NYSE:TECK) has a long-term plan to boost annual copper equivalent output from about 340,000 tonnes to 1.5 million tonnes by 2033 - representing growth of over 340% - as it rebalances its portfolio away from steelmaking coal amid the

This article was written by

Michael Hughes profile picture
61 Followers
Mr. Hughes is a research analyst focused on material and industrial stocks with a eye on long-term value. He has over 15 years of management consulting and operations management experience, a decade of journalism experience, and an M.A. in Global Security Studies from Johns Hopkins University.

Disclosure: I/we have a beneficial long position in the shares of TECK either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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