Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 29 Oct, 25 | TECK | Buy | USD 43.2 | USD 46.0 | USD 48.5 | 20 days | Closed |
8.43%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Teck Resources Limited engages in exploring for, acquiring, developing, and producing natural resources in Asia, Europe, and North America. It operates through Steelmaking Coal, Copper, Zinc, and Energy segments. The company's principal products include copper, zinc, steelmaking coal, and blended bitumen. It also produces lead, silver, and molybdenum; and various specialty and other metals, chemicals, and fertilizers. In addition, the company explores for gold. The company was formerly known as Teck Cominco Limited and changed its name to Teck Resources Limited in April 2009. Teck Resources Limited was founded in 1913 and is headquartered in Vancouver, Canada.
Profit Recovery: The company achieved a strong earnings turnaround, shifting from a loss before tax of CAD 759 million in Q3 FY2024 to a profit before tax of CAD 289 million in Q3 FY2025, marking a CAD 1.05 billion improvement in profitability.
Revenue Growth: Teck’s total revenue increased from CAD 2.86 billion in Q3 FY2024 to CAD 3.39 billion in Q3 FY2025, representing an 18.4% year-over-year rise driven by higher copper and zinc prices.
Operational Downtime Impact: Concentrator downtime linked to TMF development at QB resulted in approximately 20 days of lost production in September 2025, versus relatively stable operations in the same period last year (Q3 FY2024), delaying throughput normalization until 2027
QB Copper Output Decline: Copper production at the Quebrada Blanca (QB) operation declined from 52,500 tonnes in Q3 FY2024 to 39,600 tonnes in Q3 FY2025, reflecting a drop of 12,900 tonnes (–24.5%) due to ongoing tailings management facility (TMF) constraints
Teck’s near-term investment risk stems from operational delays and production constraints at Quebrada Blanca, which could impact cash flows and synergies ahead of the Anglo American merger completion
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 43.2 | 40.0 | 46.0 | 48.5 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Strategic Milestone: Merger with Anglo American: In September 2025, Teck Resources Limited announced a transformational merger of equals with Anglo American plc to form Anglo Teck, a Canada-headquartered global leader in critical minerals and one of the world’s top five copper producers. The transaction is designed to enhance portfolio quality, financial and operational resilience, and long-term strategic positioning. The merger is expected to deliver annual pre-tax synergies of approximately US$800 million, with 80% of benefits realized within two years post-completion, and a further US$1.4 billion average annual EBITDA uplift through integration of the Collahuasi and Quebrada Blanca assets from 2030 to 2049.
Solid Financial Performance and Earnings Recovery: Teck delivered a robust financial performance in Q3 FY2025, underpinned by stronger commodity prices and operational efficiency. Revenue rose 18.4% year-over-year to CAD 3.39 billion, while gross profit increased 38% to CAD 660 million. Adjusted EBITDA improved 19% to CAD 1.17 billion, reflecting higher copper and zinc prices and improved by-product revenues. The company swung to profitability, posting a profit from continuing operations of CAD 289 million, compared to a loss of CAD 759 million in Q3 FY2024, indicating a strong recovery in operational execution.
Earnings and Shareholder Value Enhancement: Teck’s adjusted profit from continuing operations attributable to shareholders increased to CAD 372 million (CAD 0.76 per share) from CAD 314 million (CAD 0.61 per share) in the prior-year quarter. Reported profit stood at CAD 281 million (CAD 0.58 per share), versus a loss of CAD 748 million (CAD –1.45 per share) in Q3 FY2024, underscoring substantial bottom-line improvement. The company’s liquidity position remained strong at CAD 9.5 billion, including CAD 5.3 billion in cash, reinforcing its financial flexibility to fund growth and merger-related initiatives.
Operational Excellence in Copper Segment: The copper business continued to demonstrate resilience, generating gross profit before depreciation and amortization of CAD 740 million, up from CAD 604 million a year earlier. This growth was primarily driven by higher copper prices averaging US$4.44 per pound and reduced smelter processing charges. Total copper sales remained steady at 110,300 tonnes, resulting in a gross profit of CAD 355 million for the segment. Despite operational constraints at the Quebrada Blanca site, copper profitability improved on stronger market fundamentals.
Strong Zinc Segment Performance: Teck’s zinc operations reported another quarter of strong results, with gross profit before depreciation and amortization of CAD 454 million, up from CAD 358 million in Q3 FY2024, representing a 27% year-over-year increase. This improvement was mainly driven by exceptional performance at the Red Dog mine, which achieved zinc sales of 272,800 tonnes, exceeding guidance (200,000–250,000 tonnes). Gross profit for the zinc segment rose to CAD 305 million, reflecting enhanced operational efficiency and favorable pricing dynamics.
Operational Challenges at Quebrada Blanca (QB): The company continued to face headwinds in its Quebrada Blanca operations, primarily related to tailings management facility (TMF) constraints that limited concentrator throughput. Copper production at QB declined 24.5% year-over-year to 39,600 tonnes, while molybdenum output reached 480 tonnes during the ramp-up of the molybdenum plant. Teck is implementing a comprehensive QB Action Plan focused on sand drainage improvement and ultra-fines removal to restore steady-state operations by 2027. Despite temporary disruptions, the company remains on track with long-term production guidance.
Commitment to Safety and Sustainability: Teck maintained its strong safety culture, with a High-Potential Incident (HPI) Frequency rate of 0.06 for the nine months ended September 30, 2025, 50% lower than the 2024 rate of 0.12. The company continues to prioritize sustainability and responsible resource development, aligning its operational goals with global environmental and safety standards to reinforce its leadership in sustainable mining practices.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Teck Resources Ltd (NYSE: TECK) at the closing market price of USD 43.20, as on October 28, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Basic Materials Industry: Other Industrial Metals & Mining
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| TECK Teck Resources Ltd Class B |
4.55 8.34% | 59.11 | 13.36 | 9.18 | 1.57 | 1.06 | 2.04 | 5.11 |
| BHP BHP Group Limited |
3.32 4.78% | 72.71 | 13.32 | 11.30 | 3.15 | 3.88 | 3.35 | 6.30 |
| BHPLF BHP Group Limited |
- -% | 34.00 | 13.29 | 11.21 | 3.18 | 3.85 | 3.35 | 6.30 |
| RTNTF Rio Tinto Group |
- -% | 107.00 | 17.11 | 11.85 | 2.81 | 2.79 | 2.88 | 7.27 |
| RTPPF Rio Tinto Group |
0.0025 0.0027% | 93.15 | 14.16 | 9.87 | 2.26 | 2.29 | 2.35 | 5.93 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on October 29, 2025. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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