Brendan CaldwellTeck Resources Ltd. (B)TECK.B.TOWATCHApr 03, 2025

The question was on the Teck Anglo merger.To maintain copper exposure Teck Resources would be a great asset but it has meandered around through some different things. if you are a Teck holder you wouldn't want the Anglo exposure. You could sell  and re-deploy the money in safer places or just hold the cash.

What we've seen is just a supply response -- there's just not a lot of copper out there. But we're going to need it for a long time. It's a great play, but it's already reflected in the stocks and they're not as cheap as they were. He owns a bunch of them.

Likes HBM, LUN, CS (though higher risk), TECK.B with its Anglo merger. You can own them all, but FCX is probably the best bang for your buck right now.

Canada's largest producer of base metals. Geographically diversified. Cleaned up and greened up. Sold its coal business and oil sands. Likes the merger with Anglo, making it a global top 5 copper producer with 6% global market share. That'll put it on the radar of more investors. Likes organic growth prospects. 

Arbitrage spread of 9% between current share price and value of the merger price. Good margin of safety. Secular tailwinds for copper demand in the face of a very difficult supply picture. Copper's approaching all-time highs and will probably push through. Yield is 0.52%.

He doesn't own resource stocks, because they lack a consistent return on capital and they carry a lot of debt. Also, resource stocks rely on commodity prices which are beyond their control. Doesn't know about the tax situation in this merger.

The merger is a very interesting combination. It'll be very good for Canada. Two ways to look at acquisitions. If you like this company longer term, buy here and hold. Or you can wait until the deal gets done and buy it on a dip. The second option is probably what he'd do.

Execution risk on this one keeps her watching rather than owning. Analyst price target is near $90. Upside, but you need to believe in the merger and the mine ramp up; a show-me story. Last quarter saw a strong earnings beat, copper production up 10%.

A fine way to play copper which is in great demand from AI data centre building. A prolonged high oil price will dampen demand for everything, though, including copper. That's why there is a pullback now, after a huge run. She doesn't own any copper stocks.

With Anglo merger, will be a major global copper play. This name might make sense. Better valuation than others. Less geopolitical risk.

He's generally bullish on the price of copper, and TECK is a big producer. If copper price stays or increases, then cashflow should also increase. Anglo American has complementary assets, so combined entity should be better off.

If you own, hold. If not, don't chase due to recent runup.

The new combination of companies could be quite good, looking beyond the QB2 problems.

Long-term outlook for TECK.B on its own is very strong. If merger gets done, it'll probably become a very important copper name for institutional investors around the world. Disappointment in QB2 mine over the last year, and that's why it's considering this deal. Those issues will get fixed.

He'd be a buyer here. 

Broke out of long-term downtrend, working its way higher. That breakout was driven by the takeover offer. Stocks of companies being taken over often rally to the offer price and then just flatline. 

But copper today is $5, good commodity price support. So in this case, could see some movement (and in the sector) if it trades off the commodity price. If copper blasts through $5, could lift the copper stocks.

Founder is all for the merger. Another chapter to be written to the takeover story. Could be an interloper for either Anglo or Teck. Don't buy here, but if you already own, it's worth holding onto for the optionality. Something's going to happen, and it's more likely to be to the upside than that the bottom falls out of the stock.

It's a no-premium deal. Disappointed a number of investors. Looks like a sewn-up deal with respect to insiders and politicians. He likes copper, and it's harder and harder to find. Likes prospects and synergies for the combined mine in Chile.

He doesn't own mining companies, as they tend not to be good businesses. This one looks interesting if you want some copper.

In a bit of trouble. Copper has come down from $9 highs to ~$4-5. Main mine in Chile is having production issues, costs coming in higher. Revenue announced last week was OK, but can't get over the hurdle of costs. 

FM is an alternative.