Teck Resources (TECK, Financial) experienced a significant increase in options trading activity, with a notable volume of 9,662 call options being traded. This figure is four times the anticipated amount, indicating heightened investor interest. The implied volatility for these options also saw a notable rise, increasing by nearly 5 percentage points to reach 53.66%.
The most active options are the 5/2 weekly 39 calls and the May-25 42 calls. Together, these accounted for nearly 6,500 contracts in total trading volume. Such concentrated activity suggests traders are particularly focused on these strike prices.
The Put/Call Ratio for Teck Resources is remarkably low at 0.03, reflecting a strong bullish sentiment among market participants. Investors appear optimistic about the company's upcoming earnings report, which is scheduled for release on April 24th.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for Teck Resources Ltd (TECK, Financial) is $50.35 with a high estimate of $63.83 and a low estimate of $40.33. The average target implies an upside of 38.10% from the current price of $36.46. More detailed estimate data can be found on the Teck Resources Ltd (TECK) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, Teck Resources Ltd's (TECK, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Teck Resources Ltd (TECK, Financial) in one year is $29.14, suggesting a downside of 20.08% from the current price of $36.46. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Teck Resources Ltd (TECK) Summary page.
TECK Key Business Developments
Release Date: February 20, 2025
- Revenue from Sale of Steelmaking Coal Business: USD 8.6 billion.
- Cash Returned to Shareholders in 2024: USD 1.8 billion, including USD 514 million in dividends and USD 1.25 billion in share buybacks.
- Debt Reduction in 2024: USD 2.5 billion.
- Liquidity as of December 31, 2024: USD 11.3 billion, including USD 7.1 billion in cash.
- Net Cash Position as of December 31, 2024: USD 2.1 billion.
- Adjusted EBITDA in 2024: USD 2.9 billion, more than double the prior year.
- Fourth Quarter Adjusted EBITDA: USD 835 million, a 160% increase compared to the same period last year.
- Annual Copper Production in 2024: 446,000 tonnes, a 50% increase from the prior year.
- Reduction in Corporate Costs in 2024: 21% or USD 88 million compared with 2023.
- Fourth Quarter Cash Flow Generation: USD 1.3 billion.
- Fourth Quarter Cash Returned to Shareholders: USD 549 million.
- Fourth Quarter Debt Reduction: USD 275 million.
- Fourth Quarter Copper Production at QB: 67,000 tonnes.
- 2025 Copper Production Guidance: 490,000 to 565,000 tonnes.
- 2025 Copper Net Cash Unit Cost Guidance: USD 1.65 to USD 1.95 per pound.
- 2025 Zinc Production Guidance: 525,000 to 575,000 tonnes.
- 2025 Zinc Net Cash Unit Cost Guidance: USD 0.45 to USD 0.55 per pound.
- 2025 Sustaining Capital and Capitalized Stripping Guidance: CAD 1 billion to CAD 1.2 billion.
- 2025 Growth Capital Guidance: USD 625 million to USD 700 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Teck Resources Ltd (TECK, Financial) completed the sale of its steelmaking coal business, repositioning as a pure-play energy transition metals company focused on copper and zinc.
- The company announced the largest cash return to shareholders in its history, returning $1.8 billion in cash, including $514 million in dividends and $1.25 billion in share buybacks.
- Teck Resources Ltd (TECK) reduced its debt by $2.5 billion and maintained a strong balance sheet with $11.3 billion in liquidity, including $7.1 billion in cash.
- The company set a record for annual copper production with a 50% increase from the prior year to 446,000 tonnes.
- Teck Resources Ltd (TECK) received recognition for its sustainability leadership, being named one of Canada's Top 100 Employers and one of the World's Top Companies for Women in 2024.
Negative Points
- The company faces potential challenges from tariffs and trade restrictions between the US and Canada, although it does not expect a material impact on its business.
- Teck Resources Ltd (TECK) experienced an increase in net cash unit costs for its copper segment due to the ramp-up of QB operations.
- The zinc segment's net cash unit costs are expected to increase in 2025 due to lower zinc production and higher labor and consumable costs.
- The Highland Valley life extension project faces delays due to a challenge by an indigenous government organization, impacting the approval process.
- Trail operations were impacted by a localized fire, affecting refined zinc production, and the company is focused on maximizing profitability and cash generation from this asset.
