Copper and nickel miner Oz Minerals rocketed higher over 35% today ending the day at $25.59 a share after the company took hold of some big news to start the week.
This morning Oz Minerals Ltd received an indicative takeover proposal from none other than mining mogul BHP Group Limited. The offer entailed an all cash acquisition of OZL shares at a price of A$25.00 per share. For reference, Oz Mineral's previous closing price was $18.920.
While this may seem quite attractive to current investors, the board was swift to unanimously reject this offer. Various reasonings came from the board for this including an opportunistic attempt since the copper price has fallen and the fact that OZL has traded above this suggested price for 5 of the last 12 months.
Oz Minerals also said there was a “strong long-term outlook” for the copper and nickel market. The company highlighted the growing geological scarcity, global electrification and decarbonisation.
OZ Minerals CEO Andrew Cole stated:
“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 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.”