Copper has been in the spotlight in 2022, alongside other future-facing commodities like lithium and nickel. Particularly, following BHP Group Ltd (ASX: BHP)âs takeover bid for S&P/ASX 200 Index (ASX: XJO) copper share Oz Minerals Limited (ASX: OZL).
The iron ore giant put forward a $28.25 per share âbest and finalâ offer for its copper counterpart earlier this week. Oz Minerals has accepted the bid.
While that might be great news for those invested in the takeover target â the offer represents a 49% premium to its last undisturbed share price â itâs likely disappointing for those looking to snap up long-term copper investments. Right now, the Oz Minerals share price is just 3% lower than BHPâs bid.
Indeed, Shaw and Partners senior resource analyst Peter OâConnor, speaking with Market Mattersâ James Gerrish, recently commented:
Everyone wants to be in copper but thereâs so few copper equities.
Fortunately, the expert has another copper miner in their sights. Letâs take a look at the other ASX 200 copper share OâConnor believes is trading at around half of its fair value.
ASX 200 copper share tipped a winner
OâConnor has dubbed Oz Minerals a âdead duckâ, continuing:
For all intents and purposes, Oz is no longer trading ⦠if you want to see a 3% return, fine, but if you want to get a return better you need to look elsewhere.
Instead, he is bullish on âinternational, large-scale, long-life targetâ Sandfire Resources Ltd (ASX: SFR).
The $2 billion copper miner has been on a journey over the last few years. Itâs been working on its Motheo project in Botswana and recently snapped up Spainâs MATSA mining complex.
And just in time. Mining activities ceased at its Western Australian DeGrussa copper mine last month.
Beyond that, the ASX 200 copper minerâs share price recently soared on news of a new CEO, set to take the reins in April. Additionally, Sandfire upgraded its financial year 2023 guidance in September.
Beyond Sandfire, there might be excitement among the marketâs smaller copper stocks in the near future. OâConnor tipped consolidation among emerging copper miners in the coming years. Â
Sandfire Resources share price snapshot
The Sandfire share price is down 25% this year to date. However, it soared 44% in November.
The post BHP beat you to Oz Minerals? Buy this ASX 200 copper share instead: fundie appeared first on The Motley Fool Australia.
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More reading
- These were the best performing ASX 200 shares in November
- 5 things to watch on the ASX 200 on Thursday
- Why is the BHP share price smashing the market with a 22% gain in November?
- Is a stock market crash coming for us in 2023?
- Here are the top 10 ASX 200 shares today
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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