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.
So, why is the Copper Mountain share price soaring alongside the other ASX copper shares?
The answer lies with Oz Minerals.
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).
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