Why I Love Teck Resources Ltd
Diversified Canadian miner Teck Resources Ltd (NYSE: TECK) made a big financial commitment in 2013, one that left it with a huge financial obligation right when the commodity downturn was starting to get really bad. Investors were worried that it couldn't cover both its current debts and its spending plans, but with a lot of hard work and an assist from improving commodity markets, Teck made it through the abyss -- and in a few short months the big commitment will start paying off.
Teck's business today is centered around three commodities: metelurcial coal, copper, and zinc. These three segments wax and wane over time, like all commodities, but steelmaking coal has been the real driving force on the top- and bottom-lines lately. For example, in 2012 coal provided around 45% of revenues and nearly 55% of gross profit before depreciation and amortization. In 2015, just before commodities started to trend higher in 2016, coal's contribution had fallen to 37% of revenues and 34% of gross profit because of a mix of slack demand and weak met coal prices.
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Source: Fool.com
