The OZ Minerals Ltd (ASX: OZL) share price has been on fire the past few days amid surging commodity prices.
The company's shares have rocketed 10.98% since market close on 1 March. Today, Oz Minerals shares gained 4.34%. For perspective, the S&P/ASX 200 Index (ASX: XJO) fell 1.02% today.
Let's take a look at what is happening with Oz Minerals shares.
Why is the Oz Minerals share price going up?
It seems investors are optimistic about the Oz Minerals share price in response to a boost in copper and gold prices.
Copper soared to an all-time high in the US overnight amid the Ukraine crisis, Bloomberg reported. The copper price has hiked nearly 9% since market close on 1 March. Meanwhile, gold prices have climbed more than 2% in the same time frame, Trading Economics data reveals.
Oz Minerals explores copper, gold, and other metals. The company owns the Prominent Hill and Carrapateena mines in South Australia, along with the Carajás East Hub in Brazil.
In its full-year financial results, released on 21 February, Oz Minerals reported a 56% increase in revenue to $2,095.8 million. Management advised this revenue surge was driven by higher sales volumes and the increasing copper and gold prices. Net profit also rose 150% to $531 million.
Commenting on the results, Oz Minerals managing director and CEO Andrew Cole said:
These results were delivered notwithstanding a more difficult final quarter impacted by COVID related absenteeism which has continued into 2022.
When combined with an extreme rain event that affected our South Australian logistics, we are likely to see a slower start to 2022 production, building back in line with full year guidance as the year progresses.
The company will pay a dividend of 18 cents per share on 11 March.
Oz Minerals share price snapshot
The Oz Minerals share price has surged nearly 30% over the past year but has fallen 2% year to date.
In the past month, Oz Mineral shares have gained 11.49%, 11% of that in the past week alone.
For perspective, the benchmark ASX 200 has returned nearly 5% in the past year.
Oz Minerals has a market capitalisation of about $9.2 billion based on its current share price.
