Teck Resources Case Study

Since the beginning of 2010 to the end of 2015, Teck Resources stock price has dropped by over 85%. Teck resources is a publicly owned mining and energy company, founded in 1913 by James Hughes and Sandy McIntyre at Kirkland Lake Ontario. At this time it was called Teck-Hughes Gold Mines Limited until 1986 when its name was changed to Teck Resources. The Ceo and President of Teck Resources now is Donald R. Lindsay and the chairman is Norman B. Keevil. Their headquarters is now in Vancouver, British Columbia, Canada. Teck Resources is now Canada's largest diversified resource company. They produce 4 main products; Zinc, Steelmaking Coal, Energy, Copper. Teck resources main buyer is the Chinese government and they have spent over 1.75 billion
This solutions states that Teck Resources should have more of a variety of minerals and metals that they sell. I chose this solution because Teck Resources is in over 8 billion dollars of debt and they need all the money then can get. By getting more products they will bring more buyers to their company and overall they will make more money. By doing this they will have enough money to pay off their debt. Also, they will have more money to pay their employees, because of how bad they were doing they had to pay their employees less. If they pay their employees more this means that more people will want to work for Teck Resources and they will put more effort into their work because they are getting paid more. The reason why solution 1 wasn’t chosen was because if Teck Resources went worldwide to places like Australia they will have lots of competition and it will cost a lot of money to ship heavy materials to other continents other than North America. Solution 3 would be a very long-shot for Teck Resources because they would have to save up a lot of billion dollars to buy another company and with the debt they have this could make Teck Resources go bankrupt. Also, there is no guarantee that any company that is doing well would want to be bought by a company this doing worse than them. Solution 2 is the best solution for Teck Resources but there are a few cons. Teck Resources would have to spend a lot of money opening up other mines, to mine other metals and minerals. As well, Teck Resources would have to hire and pay more employees in order to mine other products. In the long run solution 2 will be best for Teck Resources because the pros outweigh the cons and his solution could get Teck Resources out of billions out dollars of