Jim Cramer Discusses Teck Resources (TECK)'s Mega $53 Billion Merger

We recently published 13 Stocks Jim Cramer Discussed During His Historic Morning Appearance. Teck Resources Limited (NYSE:TECK) is one of the stocks Jim Cramer recently discussed.

Teck Resources Limited (NYSE:TECK) is an American copper and zinc company. Its shares have gained 14% over the past two days after the firm announced a merger with mining giant Anglo-American. The deal creates one of the largest mining companies in the world, and before it, Teck Resources Limited (NYSE:TECK)’s shares were down 14% year-to-date. The firm had struggled due to headwinds such as falling coal prices. Cramer discussed the deal in the context of copper demand for data centers:

“Well look copper is the data center. Even though there are a lot of companies that are trying to replace it with glass. Cause copper runs hot. It has not succeeded as of yet. And I think that this is just a terrific situation if you [inaudible] that data center.”

Teck Resources Limited (NYSE:TECK)’s management discussed copper during its Q2 2205 earnings call. Here is what they said:

“Turning to the Mine Life Extension of Highland Valley on Slide 7. Highland Valley is Canada’s largest copper mine and a core asset in our portfolio, and we are excited to announce the sanction of the Highland Valley Copper Mine Life Extension, or HVC MLE project. This is a lower risk and lower complexity brownfield projects that is 100% owned by Teck. The MLE is an extension of the operation to 2046 and is expected to produce 132,000 tonnes of copper per annum on average over the life of mine. Based on additional technical and engineering work, we have optimized the project. As a result, capital estimate sanction is CAD 2.1 billion to CAD 2.4 billion in nominal terms. Compared with our prior estimate of CAD 1.8 billion to CAD 2 billion, it now includes project-level contingencies, accounts for inflation, input cost escalation and the impact of potential tariffs on construction materials and reflects the accelerated procurement of mobile equipment originally planned for later project phases.”

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Disclosure: None. This article is originally published at Insider Monkey.