Teck Resources (TSX: TECK) and International Tower Hill (TSX: ITH): 2 Mining Stocks on TSX

• Fourteen of the 30 top performers on the recently released TSX30 2020 ranking are mining companies.
• Mining stocks like Teck Resources (TSX:TECK) and International Tower Hill Mines (TSX:ITH) have been popular among traders despite their production facing hindrance amid the COVID-19 pandemic.
• While Teck Resources mining sites are back in production post-coronavirus lockdown, International Tower Hill Mines is looking to revive its Livengood Gold exploration project.

Stocks of metals and mining companies like Teck Resources Limited (TSX: TECK.B) and International Tower Hill Mines Ltd (TSX:ITH) have been in demand among investors. Both the companies have witnessed heavy trading activities at the Toronto Stock Exchange (TSX), despite suffering setbacks in their businesses due to the coronavirus pandemic. Teck Resources share price, which plummeted during March market crash, has been crawling its way back up to the pre-pandemic levels in February. International Tower Hill Mines Ltd, on the other hand, has been one of the top 30 performers on the TSX in terms of stock price performance in the last three years.

With their low share prices and relatively good performance in these unprecedented times, Teck Resource and International Tower Hill Mines stocks have been gaining traction among investors. Let’s take a closer look at these companies and their stock performances.

Teck Resources Limited (TSX:TECK)

Current TECK.B Stock Price: C$ 18.92

Canadian mining company Teck Resources, which deals in coal, copper, zinc and oil sands, took a hard hit amid the coronavirus pandemic as the demand and price of commodities dipped. Some of its mining sites, spread across Canada, the United States, Chile and Peru, were forced to shut production following lockdown measures and social distancing rules. Teck Resources’ stock price fell nearly 20 per cent year-to-date (YTD). Between February 19 and March 19, around the time when the markets crashed, its scrips plunged about 50 per cent in value, falling as low as C$ 8.71.

In the last six months, however, Teck Resource shares have gained over 42 per cent in value, and is currently witnessing high trading activity on the TSX. It recorded an average trading volume of 3.5 million in the last 10 days.

Teck Resources’ total revenue dropped to C$ 1.72 billion in the second quarter ending 30 June 2020, down from C$ 3.13 billion in Q2 2019. Its gross profit and earnings before interest, taxes, depreciation and amortization (EBITDA) fell to C$ 139 million and C$ 177 million, respectively, in the latest quarter.

The Vancover-based company said all its mining sites are up and running in its latest Q2 2020 report. It recently announced that operations will soon be restarting at the Fort Hills oil sands mines’ second train in Alberta, ramping up production to nearly 120,000 barrels a day. Teck Resources holds 21.3 per cent stake in this project, of which Suncor Energy (TSX:SU) is a majority partner. Teck has also recently invested in Canadian exploration stage company Kodiak Copper Corp (TSXV:KDK).

Teck Resources is the second largest exporter of seaborne metallurgical coal in world. Its market cap currently stands at C$ 9.9 billion. The company pays a quarterly dividend of C$ 0.05, and yields 1.06 per cent.

Teck Resources stock price saw a dip in August-end following the Canadian government’s call to review its Castle Mountain exploration project in British Columbia under the Impact Assessment Act. The decision came in the wake of petitions from several environmental organizations and US government agencies. The Mining Association of Canada (MAC), however, opined that this additional review was “unnecessary”.

International Tower Hill Mines Ltd (TSX:ITH)

Current ITH Stock Price: C$ 1.77

Stock price of mineral exploration company International Tower Hill Mines Ltd has performed well this year. It saw a rise of about 161 per cent YTD and over 302 per cent gains in the last six months. With an average three-year share price performance of over 292 per cent, International Tower Hill Mines has made it to the list of Top 30 Performers on the Toronto Stock Exchange in 2020.

The Vancouver-based company, founded in 1978, deals in acquiring, exploring and developing mineral properties. In the wake of the coronavirus pandemic, the company posted that it had suffered a net loss of US$ 1.48 million in its second quarter ending 30 June 2020, as compared to US$ 1.38 million in its quarter ending 30 June 2019. Its total operating expenses in Q2 2020 was US$ 1.28 million, down from US$ 1.3 million in Q2 2019. International Tower Hill Mines reported in its latest financial statement that its working capital stood at US$ 5.4 million as of 30 June 2020. It had no cash flows from investing and financing activities in the first six months of this year.

International Tower Hill Mines recently announced plans to raise money for a prefeasibility study at its Livengood Gold exploration project in Fairbanks, Alaska.

International Tower Hill Mines’ market cap stands at C$ 332 million. It has a price-to-book (P/B) ratio of 4.32. In the last 10 days, its stocks have seen an average trading volume of over 26,000.