Teck Resources: A Top Metal Stock Pick by Analysts

Teck Resources (TECK) has been making waves in the mining industry, with analysts taking notice of the company's strong performance and strategic decisions. The Vancouver-based mining company recently reported its unaudited fourth quarter results for 2024, highlighting record annual copper production and a significant return of capital to shareholders. Let's delve into the key factors contributing to Teck Resources' positive outlook and why analysts are bullish on this metal stock.

Record Copper Production and Growth

Teck Resources achieved record annual copper production of 446,000 tonnes in 2024, up 50% from the previous year. This impressive growth was driven by the ramp-up of the Quebrada Blanca (QB) project, which reached design throughput rates by the end of 2024. The company's copper business generated gross profit before depreciation and amortization of $732 million in the fourth quarter, up 160% from a year ago, with strong sales volumes and higher copper prices. Teck Resources expects its annual 2025 copper production to further increase to between 490,000 and 565,000 tonnes as QB continues to ramp up.

Strong Financial Performance and Capital Returns

Teck Resources reported adjusted EBITDA of $835 million in Q4 2024, driven by record copper production and strong base metals pricing. This resulted in a profit from continuing operations before taxes of $256 million in Q4 2024. The company returned $1.8 billion to shareholders through share buybacks and dividends in 2024, demonstrating its commitment to returning cash to shareholders and maintaining a healthy balance sheet. Teck Resources also reduced its debt by US$1.8 billion in 2024, further improving its financial position.



Strategic Sale of Steel-making Coal Business

Teck Resources' strategic decision to sell its steelmaking coal business in 2024 has positioned the company as a pure-play energy transition metals company focused on copper and zinc. This move allows Teck to allocate proceeds from the transaction in accordance with its Capital Allocation Framework, which includes cash returns to shareholders, reducing debt, setting aside cash for taxes and transaction costs, and retaining funds for strategic copper projects that drive long-term value growth. The sale of the steelmaking coal business has had a positive impact on Teck Resources' long-term financial prospects and has contributed to analysts' positive recommendations.

Analyst Recommendations and Price Targets

Analysts have taken note of Teck Resources' strong performance and strategic decisions, with most maintaining a positive outlook on the company. As of January 22, 2025, the average analyst price target for Teck Resources stock is $65, with a low estimate of $50 and a high estimate of $80. This average target predicts an increase of 64.31% from the current stock price of $39.56. The average analyst rating for Teck Resources stock from 8 stock analysts is "Buy," indicating that analysts believe this stock is likely to outperform the market over the next twelve months.



In conclusion, Teck Resources' record copper production, strong financial performance, strategic decisions, and positive analyst recommendations make it an attractive metal stock to consider. As the company continues to execute on its growth strategy and deliver strong results, investors can expect Teck Resources to remain a top pick among analysts in the metal sector.