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Teck (TECK) Resumes Highland Valley Copper & Trail Operations

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Teck Resources Ltd (TECK - Free Report) recently announced that the wildfire evacuation order issued by the District of Logan Lake has been lifted for the company’s Highland Valley Copper Operations (HVC). HVC has resumed operations and is on track to ramp up to full production. On Aug 14, Teck temporarily suspended its British Columbia-based HVC operations in response to the forest fire incident.

Earlier this month, Teck reported smoke from wildfires in southwestern British Columbia that impacted its Trail Operations metallurgical facility. Trail’s oxygen plant was closed down due to poor air quality. While Zinc and Lead refining operations continue to operate normally, lead smelting operations were temporarily idled.

On Aug 13, Trail’s oxygen plants restarted following an improvement in air quality. Operations at the Trail metallurgical facility are ramping back up to full capacity.

The company is focused on safeguarding the health and safety of employees and contractors, and continues to monitor wildfire and regional air quality conditions.

Last month, the company reported second-quarter 2021 results, wherein earnings beat the Zacks Consensus Estimate but sales missed the same. Both the bottom-and top-line figures increased year over year.

Teck Resources expects steelmaking coal production between 25 million tons and 26 million tons in 2021. Copper production is anticipated within 275,000-290,000 tons. Zinc production is projected between 605,000 tons and 630,000 tons. The company estimates Bitumen production for 2021 between 6.6 million barrels and 8.1 million barrels.

For the third quarter, at Red Dog, the company projects sales of zinc in concentrate to be 180,000-200,000 tons. Steelmaking coal sales are projected to be 5.7-6.1 million for the quarter.

Price Performance

The company’s shares have soared 83.9% over the past year, outperforming the industry’s rally of 25.9%.

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Zacks Rank & Stocks to Consider

Teck Resources currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Avient Corporation (AVNT - Free Report) , Veritiv Corporation and Commercial Metals Company (CMC - Free Report) . While Avient and Veritiv flaunt a Zacks Rank #1 (Strong Buy), Commercial Metals carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Avient has a projected earnings growth rate of 75% for 2021. The company’s shares have soared 92% in the past year.

Veritiv has an estimated earnings growth rate of 215% for the current year. Over the past year, the company’s shares have soared 340%.

Commercial Metals has an expected earnings growth rate of 32.8% for the current fiscal year. The company’s shares have gained 54% in a year’s time.


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