Here's Why the Best Is Yet to Come for Teck Resources Ltd
Diversified Canadian miner Teck Resources Ltd (NYSE: TECK) is benefiting from a recovery in the steelmaking coal industry. Downturns in that commodity and others took a heavy toll on results a few year back, leading investors to worry about the strength of the miner's balance sheet, especially given the heavy investment it was making in a new mining project. That project, however, is expected to come online at the end of 2017, and it's why I think the best is yet to come for Teck Resources Ltd.
A couple of years ago, when commodities were still in a deep downturn, investors were concerned that Teck's debt level was too high. Adding to that concern was the company's 20% stake in the Fort Hills Oil Sands project. Operator Suncor Energy (NYSE: SU) owns roughly 50% of the oil mining project, with Total's stake accounting for the remainder. This oil investment was approved in late 2013, a little more than six months before oil prices started a precipitous fall from which they have yet to fully recover.
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Source: Fool.com