Some magnificent Canadian shares are merely constructed to carry eternally due to their robust financials, worldwide operations, constant profitability, and a long-term outlook that aligns completely with affected person buyers. However now and again, the market provides you the prospect to purchase considered one of these companies at an enormous low cost.
That second is right here proper now with the Canadian mining large Teck Sources (TSX:TECK.B). The inventory is down 29% from its 52-week excessive, regardless that the corporate continues to put up strong outcomes and pursue main growth plans. On this article, I’ll clarify why Teck Sources is without doubt one of the most tasty long-term shares to purchase on the TSX in the present day.
Why this mining large nonetheless deserves a spot in long-term portfolios
Should you don’t understand it already, Teck Sources is considered one of Canada’s largest diversified mining firms, with operations centered on copper and zinc throughout North and South America. It’s headquartered in Vancouver, with its shares at present buying and selling at $51.50 and a market cap of $25.8 billion. The corporate additionally pays a quarterly dividend, translating into an annualized yield of about 1%.
Though the inventory is down 29% from its current highs, this drop has extra to do with market sentiment than the corporate’s long-term fundamentals. Actually, Teck’s first quarter earnings in 2025 confirmed clear enhancements in profitability with the assistance of upper commodity costs and stronger gross sales volumes.
That mentioned, operational challenges at its Quebrada Blanca (QB) undertaking in Chile may very well be one of many components weighing on Teck inventory these days. Climate delays, a nationwide energy outage, and a few technical setbacks lowered its manufacturing within the first quarter.
However, the QB undertaking nonetheless hit main milestones throughout the quarter — together with passing efficiency exams below its US$2.5 billion undertaking financing. That clearly reveals the asset is essentially robust and progressing towards full ramp-up.
And apart from QB, Teck’s different operations delivered strong efficiency as its copper and zinc items reported higher profitability and elevated gross sales with the assistance of rising costs and secure manufacturing.
In consequence, Teck posted $927 million in adjusted quarterly earnings earlier than curiosity, taxes, depreciation, and amortization, up 127% yr over yr. In the meantime, its income jumped to $2.3 billion, and gross revenue greater than tripled to $536 million.
Massive development plans and a robust steadiness sheet
Wanting past its quarterly numbers, Teck is actively laying out a strong path for future development. Its copper manufacturing is predicted to rise this yr, with full-year steerage between 490,000 and 565,000 tonnes. The QB asset is on monitor to hit steady-state manufacturing by year-end. Equally, the corporate’s main copper growth tasks like Zafranal, San Nicolás, and the Highland Valley mine life extension are progressing effectively.
Furthermore, Teck ended the quarter with $10 billion in liquidity and $764 million in web money. That robust monetary base provides it room to spend money on development with out sacrificing shareholder returns.
With copper demand anticipated to rise as a result of electrification, grid growth, and vitality transition traits, Teck inventory appears to be like actually engaging to purchase on the dip proper now and maintain eternally.
