10 Best Mineral Stocks to Buy Right Now

2. Teck Resources Limited (NYSE:TECK)

Number of Hedge Fund Holders: 69

Teck Resources Limited (NYSE:TECK) operates through its steel-making coal, copper, zinc, and energy segments. The main products include copper, zinc, steelmaking coal, and blended bitumen. In 2024, TECK made a major move by divesting its steelmaking coal business, EVR, to concentrate on copper, zinc, and other metals critical to the energy transition. After this sale, Teck repurchased shares and decreased its debt by $2.75 billion, enhancing its future growth prospects and boosting its capital structure.

In Q3 ended September 30, 2024, Teck Resources Limited (NYSE:TECK) recorded an adjusted EBITDA of $986 million, fueled by solid copper production and strong sales from its Red Dog operations. Copper output totaled 114,500 tons, with Quebrada Blanca contributing 52,500 tons. The company’s adjusted profit from ongoing operations, designated to shareholders, was $314 million or $0.61 per share. However, a loss of $759 million was also recorded, due to an impairment charge at its trail operations. Teck’s copper growth strategy is in the right place, with Q3 results reflecting a positive market environment, as the average copper price was $4.18 per pound.

Teck Resources Limited (NYSE:TECK)’s decision to sell its coal business has enabled it to focus on copper and zinc production, positioning it to excel in the metals sector. The sale of coal assets allowed the company to repurchase $398 million worth of Class B subordinate voting shares and return $322 million in dividends, with a special dividend of $0.50 per share. On January 1 and October 23, 2024, Teck distributed $1.3 billion to shareholders. Additionally, the company’s debt reduction efforts improved its balance sheet, with $1.5 billion in debt repaid in the third quarter.

Teck Resources Limited (NYSE:TECK) aims to boost its copper production with its QB operations estimating a 50% increase in copper production for the coming quarter. The company’s updated 2024 guidance targets 200,000 to 210,000 tons of copper, with a goal of 240,000 to 280,000 tons in 2025. Its main focus on energy transition metals will provide more growth in the future. Analysts from Raymond James and JP Morgan support Teck assigning “Outperform” and “Overweight” ratings, respectively, despite downward revisions to their earnings forecasts.

Teck Resources Limited (NYSE:TECK)’s disciplined approach toward financial management and determination to return value to shareholders places it in a prime position for ongoing success. As the company further progresses with this transition it is financially set for upcoming projects and prepared to capitalize on the increasing demand for energy transition metals.