Teck Resources Ltd (USA) (TCK): How It Could Bounce Back From Gold’s Plunge

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Moreover, Teck Resources Ltd (USA) (NYSE:TCK) has had to deal with cost challenges with its mining properties. The miner could face $600 million in capital expenditures to resolve issues with selenium contamination at its Elk Valley coal mines, with a substantial increase in annual operating costs adding further pressure to long-term margins. Meanwhile, Teck’s joint venture with NovaGold Resources Inc. (USA) (NYSEMKT:NG) at Galore Creek has promising prospects for copper, gold, and silver production. Yet NovaGold has been looking to sell off its interest there in favor of its other mining opportunities, and high production costs threaten Galore Creek’s economic viability, especially with metals prices tumbling.

In Teck’s quarterly report, watch for how the company responds to its having received a management plan order from the British Columbia Ministry of Environment on Elk Valley earlier this week. The key for the company will be to keep its permitting activities on other projects moving forward even as the environmental plan takes shape. Otherwise, Teck Resources Ltd (USA) (NYSE:TCK) could face yet more disruptions in its attempt to outlast the downturn in commodities.

The article How Teck Resources Could Bounce Back From Gold’s Plunge originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned.

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