The Globe and Mail reports in its Friday, Jan. 23, edition that a month ago investors were wondering why Teck Resources ($15.97) was persisting with its $2.9-billion minority investment in the Fort Hills oil sands project after spot oil prices had fallen by more than 60 per cent. The Globe's Brian Crowley writes that an unnamed investor asked, "Can you afford this project at these prices?" Chief executive officer Don Lindsay's response was difficult for some investors to swallow. He said, "I love low oil prices." Cheaper, he explained, meant lower construction costs for an oil mining complex that is still nearly two years away from production. Now, a month later, oil, coal and copper prices have continued their descent, dramatically shrinking profits and placing more pressure on Mr. Lindsay to defend Teck's strategy. Teck's stock has fallen 74 per cent since its 2011 peak. Unnamed sources say Teck directors are pushing for new senior managers and directors with deeper mining experience. Sources say at least one director has questioned Mr. Lindsay's performance. However, a majority of board members, including the company's controlling shareholder and chairman, Norman Keevil, back Mr. Lindsay's leadership.
http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aTCK-2246020&symbol=TCK®ion=C
