Fortescue Ltd (ASX: FMG) shares are marching higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) iron ore giant closed yesterday trading for $19.05. In early morning trade on Tuesday, shares are changing hands for $19.32 apiece, up 1.4%.
For some context, the ASX 200 is up 1.3% at this same time.
The Aussie mining giant should be enjoying some modest tailwinds today from the overnight uptick in global iron ore prices. Iron ore gained 1.2% to be trading at US$102.80 per tonne.
Before market open, investors also learned that Fortescue is succeeding in growing its copper footprint. The miner reported that it has now completed the acquisition of all the shares it did not yet already own in Canadian-listed Alta Copper Corp (TSX: ATCU).
The right copper assets could help boost Fortescue shares longer term, with demand for the red metal widely forecast to remain strong over the decade ahead amid the ongoing global push towards electrification.
Copper is currently trading for US$12,862 per tonne, up 35% over 12 months.
Now, here's what's happening with Fortescue and Alta Copper.
Image source: Getty Images
Fortescue shares increasing copper exposure
Fortescue first announced its intention to acquire the remaining 64% of Alta Copper on 15 December.
This morning, Fortescue confirmed that its wholly owned subsidiary, Nascent Exploration, has completed that acquisition.
Alta Copper shareholders received C$1.40 per share (AU$1.45) in cash, implying a total equity value of approximately C$139 million.
Offering a potential longer-term boost to Fortescue shares, the ASX 200 miner is now the 100% owner of the Canariaco Copper Project. Located in Peru, Canariaco covers 91 square kilometres of what management labelled "highly prospective tenure" with several deposits.
Fortescue said it is well placed to advance the project, with the Aussie miner having been active in Latin America since 2018. The company also pointed to its well-established technical, permitting, and community engagement expertise.
What did management say?
Commenting on the acquisition that looks to be offering a lift to Fortescue shares, Growth and Energy CEO Gus Pichot said, "Copper is a core pillar of Fortescue's growth and diversification strategy and the acquisition of Alta Copper builds on our existing critical minerals exploration activity."
Pichot added:
In particular, the Canariaco Copper Project strengthens Fortescue's copper portfolio and provides exposure to a significant undeveloped resource within an emerging porphyry corridor in Northern Peru.
Our immediate focus will be on technical reviews, community engagement and advancing the studies required to inform future development decisions.
With today's intraday moves factored in, Fortescue shares are up 22.1% over 12 months, not including dividends.
