Teck Resources Ltd. (TCK) is paying down and restructuring its short-term debt while posting solid revenue production.

Company Description

Teck Resources Ltd. operates as a diversified mining, mineral processing and metallurgical company. It owns or has interest in 15 operating mines in Canada, the United States, Chili and Peru and is involved in exploration activities in the Americas, Asia-Pacific, Europe and Africa. Teck Resources was founded in 1906 and has a market cap of $15.8 billion.

Shares of Teck Resources have been trending higher for the last 6 months, helped by the company’s solid second-quarter performance, reported on July 28.

Second-Quarter Results

Revenue was down less than 1% from last year to $1.7 billion, but net earnings came in strong, up $73 million to $570 million.

During the earnings release, Teck noted that it has a substantial cash balance of $750 million and had made huge strides in paying down a short-term loan related to its acquisition of Fording late last year, with the principal outstanding dropping close to $5 billion to $2.74 billion.

Cost Management

The company also noted that it expects to save $70 million in coal shipment costs in 2009 based upon rail-rate arbitration proceedings.

Estimates Up

After word of the good quarter hit the street, estimates ticked higher, with the current year adding 32 cents and advancing to $1.56 per share. The next-year estimate is pegged at $1.79, a 14% growth projection.

Valuation

In spite of the recent run up in shares, this stock is still reasonably priced, trading at 17X projected current-year earnings, in line with the overall market.

The Chart

Shares of TCK are up huge over the last six months, bottoming out just above $2.50 in early March and recently topping off above $28. The MACD is also bullish, with the short-term moving average advancing above its longer-term counterpart. Take a look below.

Zacks Investment Research
View original at: Zacks.com News Feed

1. (RTP) Vale Miners Resuming WorkYesterday, Brazilian miner, Vale S.A. (VALE), announced the resumption of its work in many of...
2. (CNQ) Canadian Natural Resources Limited – Value – Zacks Rank BuyCanadian Natural Resources Limited (CNQ), the oil exploration company, saw production rise in the first...
3. (GILD) Gilead Sciences – estimates have continued to tick higher over the last few monthsGilead Sciences, Inc.’s (GILD) share price continues to head north in response to higher estimates...
4. (MTXX) Matrixx Initiatives, Inc – Analyst estimates have continued to tick higherMatrixx Initiatives, Inc. (MTXX) is fresh off the heels of another strong quarter, reporting results...
5. (ETE) Energy Transfer Equity – Analyst estimates have continued to tick higher since the last reported quarterEnergy Transfer Equity, L.P. (ETE) shares have been rallying after finding a short-term bottom just...
6. (MDU) – MDU Resources Group – ago. But in the last 30 days, consensus estimates have moved sharply higherMDU Resources Group scored a record first quarter as its oil and natural gas division...

Search Posts by Tag: TCK | Teck Resources Limited | Basic Materials | Industrial Metals & Minerals

RSS Feeds by Tag: TCK | Teck Resources Limited | Basic Materials | Industrial Metals & Minerals |

Other Posts by: vitalstocks | RSS Feed for this author