Teck Resources (TCK) is a company that concentrates on producing oil. It is a corporation that has been investing lots of resources, their time, and effort into the mining projects. Currently, it has a project that will transform the mining process. Although the project is halfway done, it is expecting to be an exact change of miners.
Teck Resources is a mining company that produces coal, copper, and zinc. All these elements contribute almost half of the revenue by more than 30%. However, the slow growth of the commodities has reduced their profit margin. Additionally, this decrease has affected it production and many the company to lay off some workers.
Despite the challenges, the Teck Resources has not slowed down their ambition of the oil project. Teck Resources which is a Canadian firm is expecting to set a record as the oil project is unique. The oil exploitation project is entirely different from what we have been used. It is because instead of oil to be drilled like other oil companies do, it will use oil sands’ process.
Besides choosing this method, the company cannot do it. It has led to a partnership with Suncor Energy. It is a method that consists of mining oil sands through the process of using heat and related chemicals. When both heat and chemicals are used, they extract oil from the oil fields deep down the earth.
The oil fields are located at Teck Resources’s alleyways. It led to a joint deal with Suncor Energy; moreover, Suncor Energy has been the most leading firm in this field. Additionally, completing the remaining project does not look complicated as Teck Resources has $1.3 billion in its accounts and the amount for completion is $1billion.
Their project (Fort Hills) is no longer a liability but an investment. Besides, they will diversify and sell coal, zinc, copper, and oil. From three products to four products that will bring about the balance to their revenue and expenditures. It is with a lot of enthusiasm that the mining will start its operations in 2017.
The company is expecting to be producing about 13 million barrels of oil in a year. It is the reason why one should invest in its shares now that we are heading to the unveiling of Fort Hills. When you invest a few of your investment, you will be expecting a massive profit by the end of the year.
However, the good news of Teck Resources is exciting, but there are signs that its investors will have to wait for a longer period before they start enjoying these profits. The steel market is slumping down; hence, the market is very unstable. Furthermore, when they are not selling their revenue will reduce.
All these problems are caused by china’s weak economy. China has had a slow economic pace, and the global supply is alarming. Currently, when one views all the options to see if Teck Resources’ shares will rise but will end up disappointed as the commodity prices are predicted to remain constant for some time. If a girl does not want to end up with losing, a girl is advised should sell Teck Resources shares now.