If you dig a hole in the ground somewhere in Iraq, keep an eye out for that $6.6 billion in airlifted $100 bills that vanished several years back.
Digging profitably here in the Americas, Teck Resources
While Appalachian coal miners Patriot Coal
Teck has buyers in place already during the second quarter for 6.3 million tons at a still-respectable price of $202 per ton, and expects to "conclude additional sales over the course of the quarter as demand has improved and supplies, particularly from Australia, have been constrained." Torrential rains in Australia have hampered met production there for the second year in a row, contributing to weakness in shares of competitor Peabody Energy
Teck booked $504 million in adjusted net profit from record first-quarter revenue of $2.5 billion. With cash on hand of $3.8 billion, Teck appears well positioned to mull some of the exciting growth opportunities on its plate. After a slight delay, Copper Fox Metals (OTC: CPFXF.PK) expects to deliver a feasibility study on the Schaft Creek project sometime this summer, which will trigger a decision by Teck regarding several attractive earn-in options.
While I find value deep beneath many of the rocks I turn over in the mining industry lately, Teck's value proposition stares investors in the face with a market capitalization that is beneath the recorded value of its consolidated property, plant, and equipment assets! Recalling that the company produced $1 billion in operating cash flow during the first quarter alone, I think that's just about enough said. Reflecting my staunchly bullish long-term outlook on the stock, I have added a bullish CAPScall for Teck Resources to my Motley Fool CAPS portfolio to reflect my real-life holding of the stock.
Fool contributor Christopher Barker can be found blogging actively and acting Foolishly within the CAPS community under the username TMFSinchiruna. He tweets. He owns shares of Alpha Natural Resources, Copper Fox Metals, Peabody Energy, and Teck Resources. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.