Summary
- Teck Resources is closing in on its plan to separate into a metals business and a coal business.
- This separation could unlock value for shareholders, and the metals business already has multiple suitors lining up.
- Mining giants are primarily eyeing Teck’s copper assets, which could be undervalued compared to other major copper producers.
Canada’s largest mining company, Teck Resources Ltd. (TECK, Financial), is primarily known for its steelmaking coal business, which made up a little over half of its revenue and 73% of its gross profit for the fourth quarter of 2022. However, it also has a substantial copper mining business and a small zinc operation as well. The metals business has attracted more than six offers as investments in electric vehicles and other technologies ramp up, driving an expectation of long-term sustained demand growth for the red metal.
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