Thursday, September 24, 2015

Teck Resources Limited - TCK.b.t

Teck Resources Limited - TCK.b.t is a significant producer of copper, the second largest seaborne exporter of steelmaking coal and the third largest producer of zinc concentrate. The Company also produces molybdenum and specialty metals.

Teck has interests in oil sands development, 13 mines in Canada, the USA, Chile and Peru as well as a metallurgical complex in Canada.

On July 30, 2015 the media released News

Van Sun/wire say Teck bonds trading like junk

The Vancouver Sun reports in its Thursday edition investors are selling Teck Resources bonds as if they are headed back to junk. A Bloomberg dispatch to The Sun says the cost of hedging against losses on Teck's debt have soared to its highest level since the 2008 financial crisis as commodity prices plunged to a 13-year low.

Now, Teck's investment-grade bonds are trading like junk after its outlook was cut to "negative" in June. Teck's undoing was its bet on steelmaking coal, adding $9.8-billion (U.S.) of debt through the acquisition of Fording Canadian Coal Trust in the second half of 2008. Cut to junk after the transaction, Teck remade its balance sheet and debt maturities and regained its investment-grade rating in 2010. "With the slowdown in China, more and more people are becoming bearish to the commodity space, and Teck Resources plays right into that," said Zachary Chavis Sage Advisory Services in Austin, Tex. Five-year credit-default swaps for Teck, the world's largest exporter of seaborne coal used to make steel after BHP-Mitsubishi Alliance, widened in the past week by 111 basis points to 638 basis points, touching the most since May, 2009.