SLAM Exploration Ltd. (TSXV: SXL)
‘Exploring for critical elements and precious metals in New Brunswick, Canada.’
Canada wants to build power grids, data centers, and a defense industrial base, and establish new trade relationships without relying on fragile mineral supply chains. Canada already has vast ore deposits, and Teck Resources offers investors a way to own a mining company.
Canadian Prime Minister Mark Carney told investors that over the past year Canada has signed more than 50 critical minerals agreements with over 15 countries, unlocking $20 billion in investment while “reducing dependence on foreign chokepoints in critical supply chains.” The summit even dedicated a panel discussion titled “Starting from the Ground Up: Advancing Canada’s Mining and Critical Minerals Value Chain,” featuring the chief executives of Agnico Eagle (AEM), Cameco (CCJ), and Teck Resources (TECK). Yet this was not really a discussion about digging more mines, but about who controls the materials that will drive the next economic cycle.
Blackstone President Jon Gray succinctly pointed out Canada’s advantages during another summit panel discussion. He said, “The natural resources here are simply extraordinary,” specifically citing “critical minerals, natural gas, and hydropower.” These resources become even more valuable when governments do not want strategic supply chains concentrated in countries they may not always agree with. Carney explicitly made this connection, telling investors: “Strategic autonomy extends to building partnerships in core capabilities such as artificial intelligence, payments, space, critical minerals, and clean energy.”
That is where the opportunity lies. AI data centers require enormous power systems, power grids require copper, defense manufacturing requires secure mineral supplies, and nuclear expansion requires uranium. Canada not only possesses mineral deposits but also has established mining companies capable of developing them at scale. What is worth buying is Teck Resources.
After reshaping its portfolio over the past few years, Teck Resources has become increasingly focused on copper and zinc. Copper is particularly compelling because it underpins many of the summit’s biggest investment themes. Building more transmission lines? You need copper. Connecting large AI data centers? You need more copper. Industrial electrification or expanding renewable power generation? You also need copper.
Teck Resources’ second-quarter copper production reached 135,900 tonnes, up 25% year over year. Adjusted EBITDA surged 204% to $2.2 billion, and operating cash flow reached $1.7 billion. Its massive Quebrada Blanca project also performed steadily for a third consecutive quarter, a significant improvement after a difficult ramp-up.
Teck Resources shares recently traded around $90, close to a 52-week high near $100. At roughly 19 times forward earnings, investors are not finding some forgotten bargain. Moreover, copper prices are cyclical, and a slowdown in global economic growth could hit metal prices before Canada’s ambitious investment plans even enter the construction phase.
