Sector Update: Base Metal Stocks Tumble As Copper Prices Slide
Shares of Canadian base metal miners tumbled on Monday as copper prices slid to their lowest level this year on economic jitters and the lingering threat of a Greek default, Reuters reported.
Teck Resources (TCK-B.TO) and Lundin Mining (LUN.TO) fell 3% and 5% respectively. Teck Resources, the world's second-largest exporter of coal used in steelmaking, hit a new year low of $37.08 after saying it's focused on expanding Canadian operations even as the volume of coal industry mergers and acquisitions rises to the highest in at least 12 years. "For us, it makes far more sense to build than to buy," Chief Executive Officer Don Lindsay said in Vancouver, according to a Bloomberg report. "It may be boring from an external point of view that there aren't lots of transactions, but it works."
Meanwhile, First Quantum Minerals (FM.TO) slipped 8%, as a court case over a disputed Congo copper project dragged on, and sources told Reuters that the company had been approached over the possible sale of the Guelb Moghrein copper project in Mauritania.
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