​Teck’s share price has rebounded in recent months alongside the recovery in steelmaking coal prices. The company has addressed concerns over its near-term debt maturities and we believe Teck is well positioned to fund the remaining capex spending on Fort Hills.
Zinc has outperformed all other major metals, rising 23% since 2012. Teck derives 25% of revenue and 38% of its gross profits from zinc operations. Developments in the company’s zinc operations, combined with overall efficiency improvement, pave the way for a shift in focus toward zinc production and the potential for increased profitability.
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