As of May 2, 2023, copper has become a highly coveted commodity in the mining industry, causing larger companies to seek out smaller players, particularly those with copper discoveries on the horizon. This is due to copper being a key input needed for electric vehicles, batteries, wind and solar power units, and wiring necessary for electrification and decarbonization efforts. Teck Resources is one of the companies looking to acquire copper assets, as they operate a copper and molybdenum mine in Kamloops, B.C. and other copper, coal, and zinc mines in the Americas. In 2016, 21% of Teck’s revenue came from copper.
Over the past decade, mergers and acquisitions (M&A) activity in the mining industry has been robust, with more money spent on copper assets in fewer transactions than for gold. In 2022, buyers spent more on base metals than on gold, with copper being the primary driver. The long-term demand outlook for copper remains highly positive, as the transition to a green economy necessitates a significant increase in the use of renewable energy and a reduction in greenhouse gas emissions.
Despite recent low M&A activity in the copper sector, this may change following two large acquisitions announced by South32 and Sandfire Resources. However, higher borrowing costs and ongoing disagreements over the proper valuation of copper assets still pose challenges for a further acceleration of copper-related M&A activity in 2023. Copper miners also face challenges in finding new sources of supply, as there has been a decade of underinvestment in new supply.
TECK Stock Update: May 2, 2023 – Decrease in Opening Price, Undervalued P/E Ratio, and More
On May 2, 2023, TECK stock opened at 44.73, a decrease of 0.78% from the previous day’s close of 45.51. The day’s range fluctuated between 43.73 and 44.86, with a volume of 3,051,708. TECK’s market cap is currently at $23.6B. The P/E ratio of TECK is 8.5, which suggests that the stock may be undervalued. The price-to-sales ratio of TECK is 1.52, and the price-to-book ratio is 1.27. TECK operates in the coal industry within the energy minerals sector, and its headquarters are located in Vancouver, British Columbia. TECK is expected to report its earnings on July 27, 2023, with an EPS forecast of $1.12. The net profit margin for TECK is 23.61%.
Teck Resources Ltds stock shows strong performance with a 16.47% increase in median target price
On May 2, 2023, Teck Resources Ltd’s stock performed well, with a median target of 51.19, representing a 16.47% increase from the last price of 43.95. The high estimate of 58.72 and the low estimate of 44.04 suggest that analysts are confident in the company’s future performance.
Source: Beststocks.com
