Shares of Sandfire Resources Ltd (ASX: SFR) are pushing north immediately from the open on Monday despite no company-specific news.
At the time of writing, the share is swapping hands more than 7% higher at $4.89 apiece.
In broad market moves the S&P/ASX 300 Metals and Mining Index (ASX: XMM) is also lifting around 125 basis points on the day.
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What's up with the Sandfire share price?
Despite the strengths exhibited across global commodity markets in 2022, copper has been one exception to the rule.
After a strong run in the 12 months to April, the price of copper then plummeted from a high of US$4.81 a pound and now trades at US$3.55/lbs, a more than 26% drop.
As seen on the chart below, the Sandfire share price tracks the price of copper very closely. This chart shows the relationship since November 2021.
It would come as little surprise, therefore, to see Sandfire shares spike with the news out of OZ Minerals Ltd (ASX: OZL)'s camp this morning.
As TMF reported earlier today, OZ has rejected a $25 per share takeover offer from the world's largest mining company BHP Group Ltd (ASX: BHP).
The OZ board and shareholders believed the offer was too low and not reflective of the company's copper and nickel assets, as well as the current end market.
With OZ's rejection on grounds of market strength and copper's asset value, the market has turned to this as a risk-on indicator with other copper miners like Sandfire.
Despite its gains today, the Sandfire share price still has to reverse a 25% loss incurred this year to date on the chart.
