Teck is best-performing Canadian stock in 7 years – by Eric Lam and Allison McNeely (Globe and Mail/Bloomberg – August 25, 2016)


In a year where commodities producers have propelled Canadian stocks to the top of the developed world, Teck Resources Ltd. has been the biggest winner of them all.

The country’s largest diversified miner has risen five-fold on the S&P/TSX Composite Index to a market value of $16-billion this year, the biggest year-to-date gain of any stock since 2009. The company’s bonds are also the best-performing debt on the Bank of America Merrill Lynch U.S. High Yield Index, returning 104 per cent.

The shares rose 2.2 per cent to $28.11 at 9:36 a.m. in Toronto, the highest since January, 2014. A Teck representative didn’t immediately return a request for comment, outside the Vancouver-based company’s normal business hours.

“Teck is a good company that got trashed with the rest of the market and has rallied since,” John Stephenson, CEO at Stephenson & Co. Capital Management, said in a phone interview from Toronto. With the stock slumping almost 95 per cent from its peak in 2011, Mr. Stephenson held short positions in Teck going into this year. He switched to a long position after the stock started to rally and cashed out of the position two or three months ago.

The key to Teck’s success has been the rally in commodity prices, especially in metallurgical coal, used in making steel, and zinc. Met coal more than tripled to a record $245.50 per metric ton as of Monday, after a surprise output cut from China which moved to help lift prices for struggling miners and curb pollution.

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