Teck Resources’ 2018 outlook
Teck Resources (TECK), the Canada-based diversified miner (EWC), rose 23.9% in 2017. While its 2017 gains look decent, most of them came in December. The stock was subdued for most of the year. However, the year-end rally in metals and mining stocks helped it close 2017 on a strong note. Other miners, including Glencore (GLEN-L) and Southern Copper (SCCO), also saw an upward price action in December 2017.
2017 price action
Freeport-McMoRan (FCX) rose sharply in December 2017. The stock, like Teck Resources, was having a subdued year prior to December. Looking at the broader metals and mining space, 2017 was a solid year. Commodity prices, which hit multi-year lows in 1Q16, have rebounded sharply since then. It was the second consecutive year in 2017 for an upward price action in base metals. As concerns over China’s slowdown eased and global economic growth regained momentum, we saw buying interest in metals. While company-specific factors impact mining companies’ price actions, movement in underlying commodity prices also tends to be a key driver.
In this series, we’ll take a close look at Teck Resources’ 2017 performance. We’ll also analyze the company’s 2018 outlook and look at the factors that could drive Teck Resources in 2018.
Let’s start by analyzing Teck Resources’ 2017 price action.