Canada’s economy is walking a fine line this year. Inflation finally eased to 1.7% in April, yet core inflation remains sticky. At the same time, real Gross Domestic Product (GDP) per capita edged higher thanks to growth in construction and energy. These shifts are leaving investors trying to figure out what comes next. Amid all that uncertainty, some opportunities stand out more clearly than others. One of them is Teck Resources (TSX:TECK.B).
Why Teck
This Canadian mining company has exposure to all the right materials at a time when the world is scrambling to build greener infrastructure and ramp up electrification. It produces copper, zinc, steelmaking coal, and specialty metals. Those might not sound exciting, but they’re essential, and Teck is one of the biggest suppliers in North America.
Right now, the Canadian stock is down around 28% from its 52-week high. That dip has more to do with market volatility than anything going wrong at the company. In fact, its most recent quarterly earnings show the business is in excellent shape. In Q1 2025, Teck reported revenue of $2.3 billion, up from $1.6 billion a year earlier. That’s a 41% year-over-year increase, driven by strong demand and higher prices for copper and zinc.
Copper production climbed to 106,100 tonnes, with gross profit from the copper segment reaching $343 million, more than triple the $106 million posted a year ago. Zinc profit also saw a big boost, rising to $218 million from $122 million. Overall, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter came in at $927 million, up from $409 million in the same period last year.
More to come
Teck’s bottom line showed similar strength. Net income from continuing operations hit $370 million, or $0.74 per share. Compare that with a loss in the first quarter of 2024, and the momentum is clear. The Canadian stock’s balance sheet also deserves attention. It ended March with $5.8 billion in cash and a net cash position of $760 million, after adjustments. Meanwhile, it held a healthy debt load of $5.45 billion. That’s a healthy cushion and gives it room to weather downturns, fund projects, and reward shareholders. In fact, Teck paid out $505 million through share repurchases and dividends in the first four months of 2025 alone.
One of the most important growth drivers is Quebrada Blanca Phase 2 in Chile. The site had a rocky quarter due to weather issues and power outages, but full-year guidance remains unchanged. Production is expected between 230,000 and 270,000 tonnes of copper, with costs ranging from US$1.80 to US$2.15 per pound. Once fully ramped up, the mine is expected to add significant value.
Furthermore, the B.C. government recently agreed to extend the life of the Highland Valley Copper Mine. So there’s plenty to look forward to in the future for this Canadian stock.
Considerations
Despite all this strength, the Canadian stock trades well below its peak. That disconnect creates an opportunity. Investors worried about slowing global growth may have dumped the stock too quickly. Teck’s diversification, low-cost base, and long-life assets give it more staying power than many peers.
Teck also offers an annual dividend of $0.50. While modest, it’s backed by growing earnings and strong free cash flow. And with a large buyback program already underway, management is clearly focused on returning value to investors. A $7,000 investment could still bring in about $67 annually!
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| TECK.B | $52.03 | 134 | $0.50 | $67.00 | Quarterly | $6,964.02 |
Bottom line
Zooming out, the broader Canadian economy is holding steady but remains exposed to external shocks. Interest rates are at 2.75%, and while growth is improving, the Bank of Canada is still cautious. In this climate, investors want companies that can perform through cycles.
Teck fits the bill. It’s a Canadian heavyweight with global reach, growing profits, low debt, a generous capital return program, and critical exposure to the future of clean energy. Down about 28% from its highs, this practically perfect stock may be just the one to buy now, and hold for life.
