Bullish options flow was detected in TECK stock on December 6, 2019.
6,791 calls trading, 12x expected, and implied vol increasing over 1 point to 37.66%. Feb-20 16 calls and Jan-20 17 calls are the most active options, with total volume in those strikes near 4,600 contracts. The Put/Call Ratio is 0.02. Earnings are expected on February 21st.
Teck Resources announced that the Teck Carmen de Andacollo Workers Union, which represents 473 workers at Teck Carmen de Andacollo Operations in Chile, has ratified a new 36-month collective agreement. The benefits of the agreement are effective as of December 5, and operations have now resumed at CdA, the company said.
Royal Gold (RGLD) announced that Teck Resources Limited (TECK) provided an update on the resumption of operations at its Carmen de Andacollo operation in Chile. Teck reported today that the Andacollo Workers Union ratified a new 36-month collective agreement. The benefits of the agreement are effective as of December 5, 2019, and operations at Andacollo have now resumed. As previously reported by Teck, operations, with the exception of essential activities to maintain safety and the environment, were suspended when the Workers’ Union commenced strike action on October 14, 2019. Royal Gold owns the right to purchase 100% of the payable gold produced from Andacollo until 900,000 ounces have been delivered, and 50% of the payable gold thereafter, for a cash purchase price of 15% of the monthly average gold price for the month preceding the delivery date. Gold production from Andacollo contributed approximately 55,000 ounces and 16.4% of total revenue, to Royal Gold in the fiscal year ended June 30, 2019. The impact of the strike on Royal Gold is expected to be reflected with the June 2020 quarterly results, as gold deliveries are generally received from Andacollo within six months of concentrate shipment.
On December 4, 2019, CN (CNI) and Teck Resources (TECK) announced a long-term rail agreement for shipping of steelmaking coal from Teck’s four B.C. operations between Kamloops and Neptune Terminals, and other west coast ports. The agreement runs from April 2021 to December 2026, and will enable Teck to significantly increase shipment volumes through an expanded Neptune Terminals. The agreement also provides for investments by CN of more than $125M to enhance rail infrastructure and support increased shipment volumes to Neptune.
“This agreement and the associated infrastructure investment will provide us with rail capacity to match the major upgrades underway now at Neptune Terminals,” said Don Lindsay, President and CEO of Teck. “We expect this will lower our total transportation costs and improve overall rail and terminal performance.”
“CN is proud to sign this agreement with Teck and to be playing such a significant role in moving the steelmaking coal from Kamloops to the last mile at Neptune Terminals on Vancouver’s north shore,” said JJ Ruest, President and Chief Executive Officer of CN. “This significant volume commitment from Teck is further proof of CN’s ability to serve our customers into Canada’s trade gateway on the west coast. This agreement also further enhances CN’s role as a supply chain enabler for Teck’s shipments into Neptune Terminals.”
With this new agreement in place Teck and CN are committed to working together to move significant volumes of steelmaking coal to markets safely and efficiently.
Alert price is $16.08.