Canadian mining company Teck Resources ($TSE:TECK.A) has no shortage of ambition. In fact, it just rolled out a plan to pull 800,000 tons of copper out of the ground in a year, which includes plenty of new investment. The audacious plan was welcomed by investors, who gave Teck shares a 1.5% boost in trading on November 5.
Teck is planning investments of between $3.2 billion and $3.9 billion in four separate projects in order to reach its goal of 800,000 tons of copper extraction. These projects include the Quebrada Blanca mine in Chile, the Highland Valley copper mine in Canada, the Zafranal mine in Peru, and the San Nicolas mine in Mexico. Teck is part owner of all four mines, except for Highland Valley, which it owns outright.
Teck will not be pulling the copper all at once. Rather, it looks to finish this year with somewhere between 420,000 tons and 455,000 tons of copper. In 2025, it plans to pull between 510,000 tons and 590,000 tons of the red colored industrial metal.
A Growing Optimism
Copper has long been seen as a barometer for the economy. In fact, some refer to it as “Doctor Copper,” because it has a remarkable ability to predict economic movements. This makes sense as copper is connected to a host of industries, so if copper demand is up, then a lot of things are getting produced.
Given that copper prices have remained high throughout much of the current fourth quarter, that will likely spur mining operations like Teck to pull copper from the ground at elevated rates. A lot of this optimism is coming from China, as it looks like that country might be starting to recover from its post-COVID hangover.
Is Teck Resources a Good Stock to Buy?
Turning to Wall Street, there are no analysts currently covering Teck Resources. So instead, we turn to the last three months of trading for the stock. The last three months have been overall positive, as TECK.A shares are up 9.75%. There was a fairly significant drop in late August going into early September, but by mid-September the share price had reversed.
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