Codelco Eyes $500M Stake In Teck's Quebrada Blanca Copper Mine
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 10 2024
0mins
Source: Benzinga
- Chilean Mining Deal: Codelco is considering acquiring a 10% stake in Teck Resources' Quebrada Blanca copper mine from Enami for around $500 million.
- Potential Benefits: The acquisition could increase Codelco's domestic copper output and help Enami strengthen its financial position.
- Current Ownership: Teck Resources holds a 60% stake in the Quebrada Blanca mine, with Sumitomo Metal Mining and Sumitomo Corporation owning the remaining 30%.
- Financial Challenges: Enami faces financial difficulties, recording a significant loss in recent years, hindering projects like the Paipote smelter.
- Strategic Move: Acquiring Enami's stake would add a long-life copper asset to Codelco's portfolio, aligning with its history of partnerships in the mining industry.
Analyst Views on TECK
Wall Street analysts forecast TECK stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TECK is 45.92 USD with a low forecast of 39.62 USD and a high forecast of 51.87 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
2 Buy
3 Hold
1 Sell
Hold
Current: 51.240
Low
39.62
Averages
45.92
High
51.87
Current: 51.240
Low
39.62
Averages
45.92
High
51.87
About TECK
Teck Resources Limited is a resource company that operates a portfolio of copper and zinc operations across North and South America. The Company’s projects include the Highland Valley Copper (HVC) Mine Life Extension Project, Galore Creek Project, Zafranal Project, and NuevaUnion. The HVC Mine Life Extension is located at the HVC site, approximately 17 kilometers (km) west of Logan Lake and 75 kilometers southwest of Kamloops. The Galore Creek Project is situated in Tahltan Territory in northwestern British Columbia, around 370 km northwest of Smithers. The Zafranal Copper Project lies in the Arequipa Region of southern Peru, within the prolific porphyry copper belt. The NuevaUnion Project is a undeveloped copper-gold-molybdenum mining venture in the Americas, located in Chile’s Atacama Region; its two deposits are about 40 km apart. Its Red Dog Operations is a zinc mine located approximately 170 km (105 miles) north of the Arctic Circle in northwest Alaska, near Kotzebue.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
