June 4, 2024 - $Teck Resources Ltd (TECK.B.CA)$ shares decreased 4.80% to $66.80 on Tuesday. This was influenced by the fact that copper prices slipped below $10,000/ton in London on Tuesday.

According to Bloomberg, copper (HG1:COM) on the London Metal Exchange recently traded -1.6% to $9,981/ton, as stockpiles on the Shanghai Futures Exchange have climbed to the highest since 2020, and a steady stream of smaller inflows into Asian depots were reported by the London Metal Exchange in recent weeks.

Analyst's View:
"The copper market seems much more sufficiently supplied than some traders had hoped for. Hence a rapid turnaround of copper prices thus looks unlikely in our view, and we rather expect the market to consolidate during the summer months." -  from Julius Baer analyst Carsten Menke.

Company Information:
Teck is a diversified miner with coal, copper, and zinc operations in Canada, the United States, Chile, and Peru. Metallurgical coal is Teck's primary commodity in terms of EBITDA contribution, followed by copper and zinc. Teck is the world's second-largest exporter of seaborne metallurgical coal and is a top-three zinc miner. Its major new copper mine in Chile at the majority-owned Quebrada Blanca 2, in partnership with Sumitomo, will drive an increase in Teck’s attributable copper production by roughly 75%. Along with a number of additional copper growth options, Teck’s strategy is to rebalance its portfolio to low-carbon metals such as copper. It sold its oil sands business in early 2023 and has agreed to sell its coal business. The deal is likely to close in the third quarter of 2024.