Teck Resources Ltd. (B) (TECK.B-T)

When breadth is weakening, he stops putting new positions on. But he's always building a farm team of things he'd like to own. Long-term view of this name and copper miners is very favourable. Technical chart's not good. Recently when we had a couple of really bad days, the copper stocks really broke. This is what tells him we may be headed for a recession.

Likes it. Dynamite assets. Cashflow will be good. But he needs to see things get better before putting money to work.

He's so bullish on copper, recently added this to the portfolio.

Under pressure for a while. Correction today is just going along with the market. If economic slowdown, base metal and commodity prices will suffer. Not a direct 1:1 tariff impact. 

This is a moment that Canada has, as a country, to really take advantage of our position in the global dynamic. We need to show the world that we're open for business. It's not about just reacting to the president of the US, it's about what we want to be as a country when we grow up. If we're supposed to be united, why do we have all these inter-provincial trade barriers? Why do we make it so difficult to bring a mine into production? Right now, we're not an attractive venue to raise capital or to put $$ into the ground to make our wealth of resources available to the world.

Mainly copper and zinc. Incredibly cyclical. In 2011, share price was higher than today. Easier to look for companies that are delivering consistent profit growth over time. Pass on this type of business.

Capital discipline has been very strong. Assets have allowed company to do well through various pricing cycles. Excellent prospects going forward. Would recommend buying for the long term. Copper assets very high quality. Recent acquisition of shares has been good capital allocation. 

The question was on Iamgold and Teck Resources. IMG has declared some good news from its Quebec mine and Teck has more copper production with gold as an add-on. However both operate in some places that are less politically agreeable. He likes the gold sector but prefers bigger and more diversified companies in more stable countries including the U.S., Canada, Mexico and Chile. Following along this theme he owns both Kinross and Agnico Eagle.

He remains bullish on the copper industry over the next 5 years. Whether to step in here depends on your timeframe. Near term might be soft, as global economy showing signs of softness. Extraordinarily strong balance sheet. Well run given its size. Enviable inventory of zinc and copper mines, plus smelters.

QB2 will be a very valuable asset. Always bumps getting a new mine underway, but outlook for copper long term is very positive. Biggest risk to portfolios is that inflation eats your money, so you need to own things that can put up prices tomorrow if inflation goes up today.

Loves that it's focusing on copper and zinc. Very challenging to build those mines anywhere in the world, so it's great long term. But it is a commodity company, subject to swings in copper and zinc, and that's why he usually stays away from commodity companies.

Still likes it, given where we are in the cycle. Copper still has some room to run. Look at this one or IVN.

Good for 3-5 investment horizon. Earnings have been downgraded a bit, but overall the business is high quality. Very large asset base with good management team. Better than other options in the mining industry. 

Demand coming for power, but only so much copper being produced. New mine is operating on track with room to grow capacity. (Chile produces 30% of world's copper, but has little new capacity coming on.) Generates cash and will pay shareholders over time. Copper prices likely to be firm over the next 5 years, and both earnings and the multiple can double. Yield is 0.7%.

A multi-bagger during last commodity cycle. Stocks should start to behave better under the current easing cycle.

Can't have a view on this name without having a view on copper. Emerging view that historical cyclicality of copper may be dampened going forward by secular demand of greening the grid and EVs. But the cyclicality is still there. Global GDP growth is slowing, China's economy remains anemic underlying all the "stimulus".

There will be a time to get behind this name, but not right now. FCX would be his #1 choice, TECK.B #2.

(Note short timeframe.) Always M&A potential, but he kind of hopes not because it would take away some opportunity. Will be way higher in 5 years. Look at the last resource cycle from 2000-2011, this was up 1000%. Great cashflow generator, big dividend payer.

We're in a world of stickier inflation, cuts will be less than we think, economy is pretty robust. If so, these companies have pricing power. AI data centres and EVs need copper.