(C) Reuters. Is Teck Resources a Good Mining Stock to Add to Your Portfolio?
Canada-based Teck Resources (NYSE:TECK) reported impressive second-quarter earnings results and its shares have advanced in price over the past month. However, can the stock continue to rally even as COVID-19 cases and wildfires continue to increase? Let’s find out.Headquartered in Vancouver, Canada, established mining company Teck Resources Limited (TECK) has grown significantly over the past few years. Its Neptune port upgrade project is operational and ramping up to full capacity, and the new facility is being integrated into its logistics chain, which is expected to reduce costs, enhance flexibility, and improve performance. The stock has gained 17.8% in price over the past month to close yesterday’s trading session at $25.32.
However, it is currently trading 14.3% below its 52-week high of $27.08, which it hit on September 15, 2021. In March 2021, TECK pleaded guilty to two charges that it violated the country’s Fisheries Act, and agreed to pay a CAD60 million ($46.91 million) penalty.
Furthermore, we think rising COVID-19 cases due to the rapid spread of the Delta variant, and increasing wildfires, make the company’s near-term outlook uncertain because its production could be significantly impacted.
Is Teck Resources a Good Mining Stock to Add to Your Portfolio?
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