Teck Resources (TSX:TECK.B) is a diversified Canadian mining company operating across Canada, the U.S., Chile, and Peru. It mines metallurgical coal, copper, zinc, and oil sands, ranking as the world’s second-largest seaborne metallurgical coal exporter and top-three zinc producer. Teck is strategically rebalancing toward low-carbon metals like copper, including developing Chile’s major Quebrada Blanca 2 (QB2) copper project.
Valued at a market cap of $25 billion, the TSX stock has returned close to 275% to shareholders in the past decade after adjusting for dividends. Despite these outsized gains, Teck Resources stock is down 31% below all-time highs, allowing you to buy the dip.
So, let’s see if Teck Resources stock should be part of your equity portfolio in May 2025.
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Is Teck Resources stock a good buy?
Teck Resources has successfully transformed into a pure-play energy transition metals company following the historic $8.6 billion sale of its steelmaking coal business in 2024. Under CEO Jonathan Price’s leadership, the Canadian mining giant now focuses exclusively on copper and zinc production, positioning itself as a critical supplier for global electrification and industrial development.
The company demonstrated exceptional financial discipline in 2024, achieving record copper production of 446,000 tonnes, a 50% increase year over year while generating $2.9 billion in adjusted EBITDA (earnings before interest, tax, depreciation, and amortization).
Teck returned $1.8 billion to shareholders through dividends and share buybacks, completing $1.25 billion of its authorized $3.25 billion buyback program. Moreover, it maintains a robust balance sheet with $10 billion in liquidity and operates from a net cash position after reducing debt by $2.5 billion.
Chile’s flagship QB2 copper mine continues its measured ramp-up toward full production. The mine has successfully completed the testing requirements for its $2.5 billion project financing.
Despite some tailings management facility challenges requiring extended maintenance shutdowns in the second quarter (Q2) and Q3, management expects steady-state operations by year-end with production guidance of 230,000-270,000 tonnes for 2025.
Teck’s copper production growth strategy targets approximately 800,000 tonnes annually by the end of the decade through multiple value-accretive projects. Three near-term developments are also positioned for potential sanction decisions in 2025. These projects offer attractive returns with capital intensities between $8,000 and $14,000 per tonne on a copper equivalent basis.
Teck benefits from diversified global operations across stable jurisdictions, strong logistics capabilities, and an agile commercial strategy that minimizes tariff exposure. With 80% ownership of Zafranal and a 50-50 partnership with Agnico Eagle at San Nicolás, Teck maintains strategic flexibility while sharing development risks.
What is the target price for the TSX stock?
Analysts tracking Teck stock expect its free cash flow to increase from $155 million in 2024 to $2.44 billion in 2029. A widening cash flow base should enable the mining giant to strengthen its balance sheet, target accretive acquisitions, and raise dividends.
If the TSX stock is priced at 20 times forward free cash flow, it should almost double from current prices over the next four years. Analysts remain bullish and expect Teck stock to gain 29%, given consensus price targets.
Teck’s transformation positions it advantageously for the accelerating energy transition, with copper demand driven by electrification infrastructure, renewable energy deployment, and industrial policy initiatives focused on economic resilience and national security.
