Why is the Copper Mountain share price surging 30% on Monday?

The Copper Mountain Mining Corporation (ASX: C6C) share price is off to the races today, up 30%.

The ASX copper share closed on Friday trading for $1.66 and is currently trading for $2.16.

Here’s what looks to be piquing ASX investor interest.

What’s driving the ASX copper share higher?

With no fresh news out, the Copper Mountain share price looks to be joining in with the broader rally among ASX copper shares.

The Sandfire Resources Ltd (ASX: SFR) share price, for example, is up 8% at the time of writing.

And copper mining focused giant Oz Minerals Limited (ASX: OZL), with a market cap north of $8.5 billion, is soaring an eye-popping 35%.

So, why is the Copper Mountain share price soaring alongside the other ASX copper shares?

The answer lies with Oz Minerals.

This morning Oz Minerals reported that it had rejected a takeover offer from BHP Group Ltd (ASX: BHP).

In an unsolicited, conditional and non-binding indicative proposal, BHP sought to acquire Oz Minerals for $25 per share in cash. Oz Minerals shares closed on Friday trading for $18.92 and have now leapt above BHP’s offer price to trade for $25.60.

Oz Minerals’ board unanimously rejected BHP’s takeover proposal, saying the offer undervalued its shares and wasn’t in the best interests of shareholders.

Commenting on the decision to reject the offer, Andrew Cole, Oz Minerals CEO said:

We have a unique set of copper and nickel assets, all with strong long-term growth potential in quality locations. We are mining minerals that are in strong demand particularly for the global electrification and decarbonisation thematic and we have a long-life Resource and Reserve base. We do not consider the proposal from BHP sufficiently recognises these attributes.

While still trading well above pre-COVID levels, copper prices have come down from highs of US$10,674 per tonne in early March this year to US$7,781 today. The red metal dipped as low as US$7,170 in mid-July.

But with a longer-term horizon in mind, the Oz Minerals board clearly believes those prices will come back up. And that’s certainly been good news for Copper Mountain shareholders today.

Copper Mountain share price snapshot

Despite today’s big bounce, the Copper Mountain share price remains down 42% in 2022, compared to a year-to-date loss of 9% posted by the All Ordinaries Index (ASX: XAO).

The post Why is the Copper Mountain share price surging 30% on Monday? appeared first on The Motley Fool Australia.

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More reading

• The OZ Minerals share price is rocketing 35% after BHP bid
• BHP share price lifts as $8.3b takeover bid rejected
• OZ Minerals share price on watch after miner rejects BHP’s $25 per share takeover offer
• BHP share price has ‘drifted into attractive value territory’ with 25% upside: broker
• The iron ore price has slumped 10% in 5 days. Here’s how ASX 200 mining shares have responded.

Motley Fool contributor Bernd Struben 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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