And investors in gold stocks have been reaping the rewards as many share prices soared.

Newmont Corporation CDI (ASX: NEM) (NYSE: NEM) – the world's largest gold miner – has seen its shares rise 38% in the last twelve months to around $90.

ASX 200 powerhouse Northern Star Resources Ltd (ASX: NST) also impressed with its shares up 28% to $16.57 at the time of writing.

But there's another metal making headlines – and major miners are taking notice.

That metal is copper, which rocketed to record highs this week after President Trump proposed a 50% tariff on US copper imports.

The red metal

Copper is one of the oldest metals known to humanity – and still one of the most important.

It boasts mass industrial applications due to its ductility, malleability, resistance to corrosion, and its thermal and electrical conductivity.

In a nutshell, copper is everywhere – from residential and commercial construction to power grids, transportation, household appliances, and consumer electronics such as smartphones.

And in the era of electrification, its strategic significance could be poised to grow further.

It plays a vital role in electric vehicles (EVs) and the infrastructure that supports them.

To illustrate this point, EVs use about four times more copper than traditional internal combustion engine vehicles.

Bright future ahead?

Copper's widespread industrial use and its vital role in electrification could see demand skyrocket.

According to research by the International Energy Forum (IEF), 115% more copper will need to be mined over the next 30 years than has been extracted in all of history.

And that's just to meet business-as-usual trends.

Electrifying the global vehicle fleet may require 55% more copper mines than would otherwise be needed.

Such forecasts paint a bullish picture for copper miners, and ASX mining giant BHP Group Ltd (ASX: BHP) is paying attention.

Scaling up copper production

BHP has significantly ramped up its copper exposure in the last couple of years, headlined by its A$10 billion acquisition of Oz Minerals (ASX: OZL).

It also invested A$3.2 billion to acquire Canadian group Filo Corp (TSE: FIL) and its flagship Argentinian project through a joint venture with Lundin Mining Corp (TSE: LUN).

These strategic moves add to BHP's already vast portfolio of copper mines spanning Chile, Peru, South Australia, and Arizona.

And its crown jewel is Escondida – the world's largest copper mine and majority-owned asset.

BHP claims that it now holds the largest copper resource base globally – and with demand projected to boom, the timing couldn't be better.

The post Forget gold! This metal just hit record highs and ASX 200 miner BHP is betting big appeared first on The Motley Fool Australia.

The $219 billion iron ore giant announced the completion of its $9.6 billion acquisition yesterday afternoon. That sees it become the official parent company of the copper miner.

Trading of OZ Minerals shares ceased on the close of 18 April. That stock has been halted at $28.19 since.

So, what's next for the ASX 200 copper giant and its fans? Let's take a look.

All OZ Minerals shares have been acquired by BHP

BHP has officially enveloped OZ Minerals shares, with those holding stock in the takeover target being paid $28.25 per share yesterday.

That means anyone wanting exposure to the company from today forward ­­will need to invest in BHP stock to get it.

The good news? The acquisition leaves BHP with a far larger critical metals footprint. CEO Mike Henry commented yesterday:

This acquisition strengthens BHP's portfolio in copper and nickel and is in line with our strategy to meet increasing demand for the critical minerals needed for electric vehicles, wind turbines and solar panels to support the energy transition.

The payment made to the takeover target's shareholders yesterday included $26.50 per share of cash from BHP and a fully franked $1.75 per share dividend offered by OZ Minerals. BHP's portion of the payment was funded using cash reserves and the proceeds of a debt facility.

BHP first bid for the copper giant in August last year, first offering $25 per share before upping its offer to $28.25 per share. The OZ Minerals share price soared 35% on the initial bid and leapt another 4% on the revised offer.

Following the takeover's implementation, BHP holds OZ Minerals' major Prominent Hill and Carrapateena assets. They're located nearby its existing Olympic Dam asset in South Australia.

Prominent Hill's underground operations delivered 1.2 million tonnes of ore at 1.31% copper last quarter. Carrapateena, on the other hand, produced 15,080 tonnes of copper and 19,868 ounces of gold over the period.

Commenting in the company's final quarterly production report late last month, CEO and managing director Andrew Cole said:

The board and management would like to thank all our stakeholders for their contribution to OZ Minerals' success.

We trust that they feel value has been created for them in line with our strategy of creating value for all our stakeholders and our purpose, going beyond what's possible to make lives better.

All that's left to do now is bid farewell to the ASX 200 copper favourite before it delists this afternoon.

The post Bye bye OZ Minerals shares appeared first on The Motley Fool Australia.

The scheme was granted the go-ahead by the Federal Court of Australia yesterday, just days after the takeover target's shareholders gave the $9.6 billion acquisition the thumbs up.  

Today, it officially became effective. But what does that mean for shareholders? Let's take a look.

BHP set to acquire all OZ Minerals shares

Today might be bittersweet for those invested in OZ Minerals as trading of its shares comes to a close ahead of BHP's takeover.

The copper miner expects its shares will be suspended when the ASX closes on Tuesday, with the scheme to be implemented on 2 May.

BHP first put forward an all-cash $25 per share bid for OZ Minerals in August 2022.

That offer was later upped to $28.25 per share in cash, less a $1.75 per share dividend declared by the takeover target last week. The dividend – which includes 75 cents of franking credits – is expected to be paid on 2 May.

Shareholders were given their chance to vote on the takeover on Thursday. Of those who cast a vote, nearly 98% were in favour of the acquisition.

OZ Minerals produces copper at two South Australian mines – Prominent Hill and Carrapateena. Both are located nearby BHP's Olympic Dam copper project.

The OZ Minerals share price is trading in the green on what is expected to be its last active session. The stock is swapping hands for $28.20 at the time of writing, 0.07% higher than its previous close.

Meanwhile, the BHP share price is up 0.47% at $46.83.

And the pair aren't the only ASX miners to benefit from the takeover.

Bellevue Gold Ltd (ASX: BGL) could also gain some advantage. The gold mining company will take OZ Minerals' place on the S&P/ASX 200 Index (ASX: XJO) before tomorrow's open.

The post BHP clears final hurdle to acquire all OZ Minerals shares. What's next for investors? appeared first on The Motley Fool Australia.

When a share goes ex-dividend, it means that the rights to an upcoming dividend payment have been settled. Anyone that buys a share from that day onwards will not receive the dividend, which will stay with the seller instead.

Three ASX 200 shares that are going ex-dividend this week include:

New Hope Corporation Limited (ASX: NHC)

This coal miner's shares are trading ex-dividend this morning for its massive interim and special dividends.

Last month, the company released its half-year results and declared a fully franked interim dividend of 30 cents per share (up 76% year over year) and a 10 cents per share special dividend. Underpinning this was a big rise in coal prices, which gave its profits a material boost over the prior corresponding period.

Eligible shareholders can look forward to receiving these dividends on 3 May.

OZ Minerals Limited (ASX: OZL)

Last week, shareholders of this copper miner gave the thumbs up to the BHP Group Ltd (ASX: BHP) takeover offer. As part of the agreement, the company will be allowed to pay a special $1.75 per share fully franked dividend to shareholders before being taken over.

OZ Minerals shares will trade ex-dividend for this special dividend on Thursday 20 April. After which, eligible shareholders can look forward to receiving this payout at the start of next month. The miner is planning to make its payment on 2 May if all goes to plan.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Last month, this conglomerate released its half-year results and reported a 38% increase in profit to $475.7 million. This allowed the company's board to increase its interim dividend by 24.1% to 36 cents per share.

If you want to receive this dividend, you will need to act fast and own Soul Patts shares before they trade ex-dividend on Wednesday 19 April.

Like the others, if you're eligible for it, you will then be paid this dividend next month. Soul Patts plan to pay its dividend on 12 May.

The post 3 ASX 200 shares trading ex-dividend this week appeared first on The Motley Fool Australia.

As you're likely aware, the S&P/ASX 200 Index (ASX: XJO) copper miner is being pursued by global mining giant BHP Group Ltd (ASX: BHP).

BHP made its first acquisition offer on 8 August, offering $25 cash for the copper miner's shares.

That offer was rejected by the board. But BHP didn't walk away.

Yesterday OZ Minerals shareholders voted on an improved offer of $28.25 per share. More than 98% voted in favour of the acquisition deal, which values the copper stock at $9.8 billion.

But as we said up top, that hasn't seen the company's operations slow down.

What are the latest developments?

In an ASX release this morning, GR Engineering Services Ltd (ASX: GNG) announced that it's entered into two contracts with OZ Minerals Musgrave Operations – a wholly owned subsidiary of OZL.

The contracts involve designing and constructing the West Musgrave Mineral Processing Plant, located in Western Australia. Revenue on completion of the contracts is forecast to be $312 million over a two-year period.

"We are pleased to have been engaged by OZ Minerals to play a key role in the delivery of the world-class West Musgrave Project," said Tony Patrizi, managing director at GR Engineering.

Commenting on the deal, Debbie Morrow, project executive for OZ Minerals added:

We're delighted to be working with GR Engineering on the design and construction of the Minerals Processing Plant for the West Musgrave Project, which is set to be one of the largest, lowest cost, lowest emissions copper nickel projects.

GR Engineering is being contracted for engineering design, drafting, project management and commissioning, as well as structural, mechanical, piping, electrical and instrumentation construction works.

OZ Minerals share price snapshot

As you can see in the chart below, the ASX 200 copper stock enjoyed a big lift back in August following BHP's initial takeover offer.

Over the past 12 months, OZ Minerals shares are up 5%.

The post No signs of OZ Minerals slowing down as BHP takeover looms appeared first on The Motley Fool Australia.

At the time of writing, the mining giant's shares are down 0.5% to $46.62.

What was the good news?

This morning, OZ Minerals Limited (ASX: OZL) shareholders were invited to vote on BHP's proposed acquisition of the copper miner at a scheme meeting.

The Big Australian has tabled an offer of $28.25 per share, which values OZ Minerals at $9.8 billion on an enterprise value basis.

The good news for BHP is that the deal took a big step forward today after OZ Minerals shareholders gave the deal the thumbs up.

According to the release, 98.33% of the votes cast by OZ Minerals shareholders were in favour of the scheme.

BHP's CEO, Mike Henry, was pleased with the results of the meeting. He said:

This is a strong endorsement from OZ Minerals shareholders on the value they will receive under the scheme and the hard work of the OZ Minerals team over many years to create a successful business. We look forward to bringing together our talent and resources to create an even stronger organisation.

This sentiment was echoed by OZ Minerals' management team, which commented:

Today's strong endorsement from our shareholders enables the next chapter for OZ Minerals as, pending endorsement of the Court, we will become part of a major global mining company which values our strategy of creating value for stakeholders, enabled by our agile culture of inclusion, innovation and collaboration, as well as our portfolio of modern minerals operating assets and our pipeline of growth opportunities. We thank all our stakeholders for their contribution over the years.

What's next?

The deal is not quite done just yet, but it is almost there. That's because the scheme still requires the approval of the Federal Court of Australia.

OZ Minerals is expected to apply for court orders approving the scheme on 17 April 2023. If approved by the court, the scheme is expected to become effective on 18 April 2023 and be implemented on 2 May 2023.

The post BHP share price lower despite OZ Minerals' shareholders approving takeover appeared first on The Motley Fool Australia.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to edge lower

The Australian share market is expected to have a subdued session on Thursday after a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 2 points lower this morning. In the United States, the Dow Jones dropped 0.1%, the S&P 500 fell 0.4%, and the NASDAQ dropped 0.85%. This was driven by recession concerns, which offset positive inflation news in the US.

BHP-OZ Minerals scheme meeting

All eyes will be on BHP Group Ltd (ASX: BHP) and OZ Minerals Limited (ASX: OZL) shares on Thursday. That's because the latter will be holding a scheme meeting to allow shareholders to vote on BHP's proposed takeover of the copper miner for $28.25 per share or $9.8 billion.  The meeting will begin at 10:30am AEST.

Oil prices storm higher

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a strong session after oil prices stormed higher on Wednesday night. According to Bloomberg, the WTI crude oil price is up 2.1% to US$83.21 a barrel and the Brent crude oil price is up 1.9% to US$87.19 a barrel. This was driven by a lower than expected inflation reading in the United States.

Mineral Resources rated as a buy

The Mineral Resources Ltd (ASX: MIN) share price could be a top option for investors looking for exposure to the mining sector. That's the view of analysts at Bell Potter, which have just retained their buy rating with a trimmed price target of $100. It explained: "We reduce our Target Price by 9.1%, driven by reductions to our lithium price forecasts, and maintain our Buy recommendation in accordance with our ratings structure, given our forecast TSR of 31.8%."

Gold price rises

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a decent session after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.45% to US$2,028 an ounce. Gold rose after US inflation came in softer than forecast, sparking hopes that the US Fed could pause its rate hikes.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) iron ore miner's stock is taking off amid news of its planned acquisition of copper producer OZ Minerals Ltd (ASX: OZL).

For comparison, the ASX 200 is up 1.21% right now while BHP's home sector – the S&P/ASX 200 Materials Index – is gaining 2.11%.

The takeover is one step closer to being realised after it was granted approvals from Vietnam's competition regulator.

Let's take a closer look at the latest from the ASX's biggest company.

BHP copper acquisition receives regulatory approval

The BHP share price is climbing amid good news of its proposed $9.8 billion acquisition of OZ Minerals.

The pair today announced that Vietnam's Competition and Consumer Authority has approved the takeover – leaving one less condition to be satisfied prior to its implementation.

And just in time. The acquisition will face a shareholder vote on Thursday.

If approved by investors, the court will be given the final say, with implementation then scheduled for early May.

BHP put forward a $28.25 per share bid for the copper miner in November 2022.

That offer will likely be less a $1.75 fully franked dividend OZ Minerals intends to declare, as revealed in February.

Interestingly, the OZ Minerals share price is flat this morning at $28.14 a share, the same as Thursday's closing price.

BHP share price underperforms ASX 200 in 2023

Both stocks have underperformed the broader ASX 200 so far this year.

The index has risen 4% in 2023 so far. At the same time, BHP shares have dumped 0.6% and OZ Minerals' have lifted 0.6%.  

Looking further back, the BHP share price is down 12.8% over the last 12 months while OZ Minerals' stock has gained 9.3%. Meanwhile, the ASX 200 has slumped 3.2%.

The post The BHP share price is taking off today. Could this be why? appeared first on The Motley Fool Australia.

That's one less hurdle the $9.6 billion acquisition has to face. Though, it's still conditional on shareholder and court approval.

It also comes as the mining sector bounces back from Friday's carnage. The S&P/ASX 200 Materials Index (ASX: XMJ) is currently up 0.79%.

Right now, the BHP share price is among the sector's front-runners, up 0.89% to trade at $48.335. In earlier trade, it shot 1.33% higher.

At the same time, the S&P/ASX 200 Index (ASX: XJO) is down 0.05%.

Let's take a closer look at the latest on the ASX 200 iron ore miner's massive copper deal.

BHP share price lifts amid Oz Minerals regulatory approval

The BHP share price is rising amid news Brazil's Administrative Council for Economic Defence has given the company's planned acquisition of ASX 200 copper miner Oz Minerals its tick of approval.

A scheme booklet is expected to be sent to Oz Minerals shareholders early next month.

The takeover target accepted BHP's $28.25 per share bid in November. The Oz Minerals share price is currently $27.96, the same as Friday's closing price.

The acquisition is expected to face a shareholder vote in late March or early April, with the takeover implemented shortly afterwards.

The BHP share price might also be being impacted by iron ore's upwards movement today. Iron ore futures lifted 1.1% on Friday to reach US$125.26 a tonne. That marked a weekly gain of 2.1% despite Thursday's 1.9% fall.

The materials sector plunged 1.4% on Friday, likely partially driven by the steel-making ingredient's slump, with BHP shares closing the day 1.9% lower.

And it wasn't just Friday that saw the iron ore giant struggling. Its stock has been underperforming against the ASX 200 for a while now.

Shares in the mining monolith have gained around 6% so far this year while the ASX 200 has jumped nearly 9%. Looking longer term, BHP shares have gained 1% over the last 12 months compared to the index's 6% rise.

The post BHP share price jumps as Oz Minerals acquisition clears major hurdle appeared first on The Motley Fool Australia.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to edge higher

The Australian share market looks set to rise slightly on Monday following a positive finish to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 12 points or 0.15% higher this morning. On Wall Street, the Dow Jones was up 0.1%, the S&P 500 rose 0.25 %, and the NASDAQ stormed 0.95% higher.

Oil prices fall

It could be a difficult start to the week for ASX 200 energy shares such as Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices pulled back on Friday. According to Bloomberg, the WTI crude oil price was down 2% to US$79.38 a barrel and the Brent crude oil price fell 1% to US$86.66 a barrel. Oil prices fell in response to a stronger supply outlook.

ResMed rated as a buy

The ResMed Inc (ASX: RMD) share price could be good value according to analysts at Goldman Sachs. In response to the sleep disorder treatment company's quarterly update, the broker has retained its buy rating with an improved price target of $38.00. Goldman commented: "Steady improvements in diagnosis rates and supply chain could widen opportunity for share gains."

Quarterly updates

It is likely to be another day filled with quarterly updates. Among those scheduled to release updates this morning are rare earths producer Lynas Rare Earths Ltd (ASX: LYC) and copper miner and BHP Group Ltd (ASX: BHP) takeover target, OZ Minerals Ltd (ASX: OZL).

Gold price softens

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a soft start to the week after the gold price edged lower on Friday. According to CNBC, the spot gold price fell 0.1% to $1,927.6 per ounce. Despite this, the precious metal secured its sixth successive weekly gain.

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

That's despite today's 0.6% retrace following the hotter-than-expected CPI numbers just released by the ABS.

The S&P/ASX 200 Index (ASX: XJO) iron ore giant is currently trading for $49.37. The BHP share price, as you can see in the chart below, closed out 2022 at $45.63.

Is it too late to buy?

With those kinds of gains already in the bag so early in 2023, is it too late to buy BHP shares?

The answer to that question largely relies on what happens with iron ore prices (the miner's top revenue earner) and copper prices (its number two revenue earner) over the coming months.

The BHP share price has already benefited from a big lift in the price of both metals in 2023.

Iron ore was trading for US$118 per tonne at beginning of the calendar year and is currently fetching US$125 per tonne, up 6%.

The copper price has gained even more, lifting 12% since 30 December to currently trade for US$9,315 per tonne.

And while no one has a working crystal ball, most analysts are tipping significant further gains for both industrial metals over the year ahead.

Iron ore could gain from increased demand out of China, as the world's most populous nation reopens following three years of pandemic lockdowns.

Copper could also benefit from China's reopening, while demand for the red metal is expected to continue to run high for its critical role in the world's transition towards electrification.

Both of these aspects would suggest it's not too late to buy, even after the big BHP share price rally.

On the copper front, Goldman Sachs head of commodities research Jeff Currie believes that in the "longer-term" the copper price will reach US$15,000 per tonne.

Citing "a structural imbalance in these markets", Currie said "You are likely to see peak copper supply in 2024."

As for iron ore, Morgan Stanley commodities strategist Marius van Straaten notes the commodity rally coming ahead of China's reopening is largely built on hype rather than actual increases in steel production.

According to van Straaten (quoted by The Australian Financial Review):

The previous nine bull markets we looked at were all underpinned by either periods of expanding China steel production or tightening supply from the iron ore majors.

While China's steel mills have been restocking ore recently, this is basically the first serious bull market that is mostly driven by sentiment/optimism, rather than an actual physically tightening market.

Despite the current speculative-driven nature of the price increases, van Straaten sees iron ore trading for US$140 in the June quarter. That represents a 12% increase from today's levels and would certainly offer some helpful tailwinds for the BHP share price.

What else could boost the BHP share price in 2023?

Atop potentially rising iron ore and copper prices, the BHP share price could receive a boost should the miner's $28.25 per share (approximately $9.6 billion) cash takeover proposal of ASX 200 copper stock OZ Minerals Limited (ASX: OZL) go through.

The Oz Minerals board has unanimously recommended shareholders approve the acquisition. Shareholders are expected to vote on the proposal in late March or early April.

And let's not forget the juicy, fully franked dividends on offer.

At the current share price, BHP pays a 9.4% trailing dividend yield. That will place the big miner high on the radar of income investors, increasing the demand for (and potentially the price of) its shares in 2023.

The post The BHP share price has had a stellar start to 2023. Is it too late to buy? appeared first on The Motley Fool Australia.

That would certainly be good news for investors in blue-chip copper stocks like Sandfire Resources Ltd (ASX: SFR) and Oz Minerals Limited (ASX: OZL).

What's happening with the copper price?

The copper price topped US$10,600 in March last year before sliding to lows of US$7,200 in July as soaring inflation and rising interest rates temporarily took the shine off the industrial metal.

2023 has seen the copper price march steadily higher, helping lift the prospects of ASX 200 copper shares.

Year-to-date copper has gained more than 12%, currently trading for US$9,315 per tonne.

That's helped propel the Sandfire Resources share price to a 20% gain so far in 2023.

Oz Minerals is a bit of a different story, due to the ongoing takeover process with BHP Group Ltd (ASX: BHP).

With BHP seeking to acquire Oz Minerals via a scheme of arrangement for a cash price of $28.25 per share, the ASX 200 copper share has been trading in a fairly narrow band over the past weeks.

Forecast outperformance could boost ASX 200 copper shares in 2023

Copper is already off to a strong start in 2023.

And according to the latest MLIV Pulse survey, reported by Bloomberg, professional and retail investors alike have pegged copper as "the most likely commodity to outperform when compared to oil, corn and gold".

Part of that investor bullishness comes from copper's widespread use in construction activities, with China's reopening from its zero-COVID forecast to boost demand for the metal.

Copper, a highly conductive metal, is also a vital element in EVs and the broader global march towards electrification.

Goldman Sachs head of commodities research Jeff Currie is among the analysts who believe the copper price will continue to increase in 2023, which would offer support for ASX 200 copper shares.

According to Currie:

Our target end of year is US$11,500…but longer term, we are in line with Trafigura, we see US$15,000 a tonne. You know, there's a structural imbalance in these markets. You are likely to see peak copper supply in 2024.

The post Investing in ASX 200 copper shares? Here's the outlook for the red metal in 2023 appeared first on The Motley Fool Australia.

BHP shares are climbing 0.73% and are currently trading at $49.76. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 0.05% today.

Let's take a look at what could be weighing on the BHP share price today.

What's going on?

BHP has entered a deal with Canadian company Mundoro Capital Inc. (TSXV: MUN) to explore copper in Serbia.

In a release overnight, Mundoro said it had entered into a "definitive agreement" with a wholly owned subsidiary of BHP. This will provide BHP with the right to earn an option in three copper exploration areas held by Mundoro.

The copper projects are located within and near the Timok Magmatic Complex in Serbia.

Commenting on the news, Mundoro CEO Teo Dechev said:

Mundoro welcomes BHP as an exploration partner that recognizes the potential of further exploration in the western Tethyan Belt. 

The news comes after BHP entered a scheme implementation deed to potentially acquire 100% of copper miner OZ Minerals Limited (ASX: OZL) in late December. The proposal is subject to approval by Oz Minerals shareholders at a meeting likely to be held in late March or early April 2023.

The copper price edged higher overnight amid stronger demand from China. Copper lifted 0.3% to US $9,356 a tonne. In a research note this morning, ANZ senior economist Catherine Birch said:

Copper edged higher as supply risks added to the positive tone as investors look to stronger demand from China.

The reopening of the world's second largest economy is expected to unleash a wave of pent-up demand.

BHP is also a major iron ore producer. The iron ore price has fallen 0.18% to US$121.94 a tonne, trading economics data shows. The share price of fellow iron ore giant Rio Tinto Limited (ASX: RIO) is down 0.1% today, while Fortescue Metals Group Limited (ASX: FMG) shares are climbing 0.4%.

BHP share price snapshot

The BHP share price has soared nearly 23% in the last year. In the past month, BHP shares have climbed 7.8%.

BHP has a market capitalisation of about $252 billion based on the current share price.

The post BHP share price lifts amid copper deal appeared first on The Motley Fool Australia.

ASX mining shares with exposure to copper include Rio Tinto Limited (ASX: RIO), Oz Minerals Limited (ASX: OZL), Sandfire Resources Ltd (ASX: SFR) and Hot Chili Ltd (ASX: HCH).

Rio shares are leaping 1.4% today, while Sandfire Resources shares are leaping 1.21%. Hot Chili shares are leaping 5.06% and Oz Minerals shares are 0.02% in the green at the time of writing.

So what is the outlook for the copper price?

Copper price tipped to jump higher

The copper price hit US$9,000 a tonne this week on the London Metal Exchange, its highest level since June.

However, a Goldman Sachs commodities analyst is tipping it to reach US$11,500 a tonne by the end of the year and US$15,000 in the long term.

Commenting on Bloomberg TV, Goldman head of commodities research Jeff Currie said:

Our target end of year is US$11,500…but longer term, we are in line with Trafigura, we see US$15,000 a tonne.

You know, there's a structural imbalance in these markets. You are likely to see peak copper supply in 2024.

Oz Minerals operates the Prominent Hill copper and gold mine in South Australia. In December, Oz Minerals advised Prominent Hill ore reserves have lifted 23% to 59 Mt at 1.4% copper equivalent. BHP Group Ltd (ASX: BHP) is proposing to acquire 100% of Oz Minerals, with a scheme meeting expected to take place in late March or early 2023 this year.

Rio Tinto explores copper from multiple projects globally and produced 138,000 tonnes of copper in the third quarter of 2022. This was a 10% lift on the third quarter of 2021. Sandfire is also developing multiple copper projects in the USA, Botswana, Spain and Australia. Hot Chili is developing the Costa Fuego copper hub in Chile.

Why is copper tipped to go higher?

Goldman's Currie highlighted the role of copper in decarbonisation, describing copper as "the new oil". He said:

You cannot decarbonise the world and use electricity to the extent we expect without substantial copper consumption.

Meanwhile, China's reopening is also being slated as a possible reason for investor optimism in the copper sector.

Marex analyst Alastair Munro, also commenting on Bloomberg, highlighted the impact of increased demand from China. He said:

You've got more of these commodity trade adviser and discretionary fund bids on copper. There has been Chinese buying onshore.

Share price snapshot

The Rio Tinto share price has leapt 13% in the last year

Oz Minerals shares have slid nearly 3% in the past 52 weeks.

Sandfire Resources shares have descended nearly 9% in the past year.

Hot Chili stocks have plummeted 45% in the last year.

The post Goldman tips continued surge in copper price. Which ASX mining shares might benefit? appeared first on The Motley Fool Australia.

In 2022 there was a deterioration in the copper price. That's despite some other commodities having a strong run such as lithium. While copper isn't involved with energy generation, it is playing an important part in the decarbonisation of the world. Copper is used in electricity cables.

Despite the recovery of the Sandfire Resources Ltd (ASX: SFR) share price in recent weeks, it's still down by 17% for the year.

There has been a prediction that next year could be good for the copper price, which could help copper miners including Sandfire, BHP Group Ltd (ASX: BHP) and Aeris Resources Ltd (ASX: AIS).

It may previously have been a help for the OZ Minerals Limited (ASX: OZL) share price too, but it has accepted a takeover offer from BHP.

Optimistic call on the copper price

According to reporting by CNBC, Bank of America commodity strategies think that the copper price could rally to US$12,000 per tonne in the second quarter if things go well.

However, the circumstances that could be required for that rally include the US Federal Reserve pivoting to a "less aggressive" monetary policy tightening, "limiting upside in the US dollar, and for demand to remain supported as the planned energy transition accelerates."

Commodity strategist Michael Widmer said in Bank of America's 2023 metals outlook report:

Notwithstanding the macro headwinds, physical markets have remained tight, highlighting the lack of spare copper units available at present.

Taking this a step further…China's grid spending has offset weakness in the wider economy: indeed, building out the electricity infrastructure has completely offset weakness in the housing market.

CNBC noted that the analyst wondered whether this is a one-off or the start of a structural trend. Widmer said that over the past year and a half there has been a break in the correlation between global copper demand and industrial production growth. Widmer concluded:

In our view, this confirms to some extent that green spending has already supported global copper demand and physical markets.

Bank of America data suggests that copper demand could grow by 4.5% year over year to 2030. That compares to demand growth of 2.1% over the past two decades.

Foolish takeaway

Higher demand could be very helpful for the copper price in the shorter term. Higher profit could then be a boost for the share prices of these ASX copper shares. How much of a boost? Time will tell, and it could depend on how the copper price performs. It's also possible things won't go as well as the optimistic view of Bank of America.

The post 3 ASX shares that could benefit from a predicted copper price boom next year appeared first on The Motley Fool Australia.

In morning trade, the mining giant's shares are up 1% to $46.77.

Why is the BHP share price rising?

Investors have been buying the Big Australian's shares this morning after it announced an agreement to acquire copper miner OZ Minerals Limited (ASX: OZL).

According to the release, after a four-week exclusive due diligence period, the two parties have entered into a scheme implementation deed that will see BHP acquire 100% of OZL by way of a scheme of arrangement for a cash price of $28.25 per share.

This agreement is on the same terms as BHP's non-binding indicative proposal that was revealed on 18 November 2022.

The cash price of $28.25 per share equates to an enterprise value of $9.6 billion and represents a 49.3% premium to where OZ Minerals shares were trading prior to its initial proposal back on 5 August.

The scheme comes with a break fee of $95 million and allows for a dividend of up to $1.75 per share to be paid by OZ Minerals. However, the offer price will reduce in line with this dividend.

Unanimous support

The OZ Minerals board has unanimously recommended that its shareholders vote in favour of the scheme, in the absence of a superior proposal and subject to the independent expert's report.

Each OZ Minerals director intends to vote their shares in favour of the scheme, subject to the same conditions.

BHP's CEO, Mike Henry, was pleased with the news and believes the combination of the two miners will unlock opportunities that wouldn't be possible separately. He said:

The combination of BHP and OZL's assets, skills and technical expertise provides a unique opportunity not available under separate ownership, with complementary resources including the Oak Dam exploration prospect and existing facilities within close proximity, backed by BHP's strong balance sheet, capital discipline and commitment to sustainable development. We thank the OZL Board and management for their engagement through the due diligence process and look forward to working together to continue to take steps forward to complete the transaction.

The post BHP share price higher on OZ Minerals $9.6b takeover agreement appeared first on The Motley Fool Australia.

Also likely driving the market lower were announced changes to the Bank of Japan's monetary policy. The central bank has decided to modify the conduct of yield curve control.

Meanwhile, the RBA revealed it considered both hiking rates by 0.5% and keeping them flat amid continuous inflation at its last meeting of 2022. Of course, it ultimately declared a 0.25% hike earlier this month.

The S&P/ASX 200 Energy Index (ASX: XEJ) outperformed for much of today following a strong night's trade for oil prices. However, by the end of Tuesday's trade, it had dropped 1.4%.

Coming in as today's top-performing sector was instead the S&P/ASX 200 Utilities Index (ASX: XUJ), which dropped 0.1%. The worst performer, meanwhile, was the S&P/ASX 200 Information Technology Index (ASX: XIJ). It fell 4.4%.

So, with all that in mind, which ASX 200 shares come in as today's top performers? Keep reading to find out.

Top 10 ASX 200 shares countdown

The index's biggest gains today were posted by shares in Steadfast Group Ltd (ASX: SDF). That was despite no news having been released by the insurance broker.

Today's biggest gains were made by these shares:

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

With the broker tipping copper prices will hit new all-time highs in 2023 as demand exceeds supply, copper stocks could be set for some fresh tailwinds.

There are more than a dozen ASX shares exploring for and digging up copper.

Sticking to the biggest three we have:

• Oz Minerals Limited (ASX: OZL), with a market cap of $9.2 billion
• Sandfire Resources Ltd (ASX: SFR), with a market cap of $2.4 billion
• Aeris Resources Ltd (ASX: AIS), with a market cap of $366 million

So, why is Goldman forecasting a surge in prices?

Why might copper prices hit new all-time highs in 2023?

As The Australian Financial Review reports, Goldman has revised its forecast for the copper market in 2023 from the previous 169,000 tonne surplus to its new expectations of a 178,000 tonne deficit.

The bullish revision, certainly to be welcomed by ASX shares producing copper, is based on both supply and demand dynamics.

On the supply side, Goldman expects reduced output from Chile, a major player in the copper space.

On the demand side, China's reopening as it moves away from its economy hampering COVID zero policies should see a significant boost from the world's top copper importer. Copper is also widely used in the construction and green energy sectors, both of which Goldman sees powering ahead in 2023.

Copper prices previously hit all-time highs on 4 March this year, at US$10,670 per tonne. ASX copper shares, as you'd expect, rallied over that period.

New record prices would help support ASX copper shares

That March 2022 record will be broken in 2023 if Goldman is correct, with the broker forecasting the red metal to hit US$11,000 per tonne next year.

Commenting on that forecast, Nicholas Snowdon, metals strategist at Goldman Sachs said (quoted by The AFR):

The sequential increase in policy targets and commitments to green transition, alongside a minimal supply response so far… have resulted in earlier and larger open-ended deficit conditions that essentially are already here, not beginning at some point in the future…

Another deficit in the market next year will take fundamental conditions to an unprecedented extreme in terms of tightness.

In longer-term good news for ASX shares hunting for and producing copper, Goldman Sachs forecasts copper prices to remain strong, averaging US$12,000 per tonne in 2024.

Below you can see how the big copper shares have been tracking.

The post Goldman tips record copper prices in 2023. Which ASX shares have exposure? appeared first on The Motley Fool Australia.

BHP shares soared 21.84% last month from $37.36 a share to $45.52 a share. At the time of writing, the BHP share price is holding its own for a 0.36% gain. For perspective, the S&P/ASX 200 Index (ASX: XJO) is 0.21% in the red in lunchtime trading.

Let's check what might be in store for the BHP share price.

BHP share price gains

BHP is a major ASX iron ore producer. Higher iron ore prices in November appeared to boost the BHP share price.

The iron ore price soared 27% during the month from US$81 per tonne at the start of November to US$103 a tonne at the end. Iron ore contributed 53.4% of BHP's underlying EBITDA in the 2022 financial year.

Also in November, BHP submitted an improved acquisition offer for OZ Minerals Limited (ASX: OZL) for a cash price of $28.25 a share. The OZ Minerals board advised it intends to recommend BHP's proposal.

Commenting on the deal, BHP CEO Mike Henry said at the time:

BHP's proposal represents a highly compelling offer for OZL shareholders, providing certainty at a time of macroeconomic uncertainty and market volatility, and increasing risks for the industry.

What's ahead?

Broker outlook on the BHP share price is mixed. For example, Morgans retained an add rating and placed a $47 price target on BHP's shares in November. Morgans also predicted a fully franked dividend of $2.96 a share for BHP in FY 2023. Analysts said:

We view BHP as relatively low risk given its superior diversification relative to its major global mining peers.

On the flip side, analysts at Goldman Sachs downgraded BHP's share price to neutral with a price target of $42.90. Goldman was concerned about BHP's valuation and production growth versus its peers in the sector.

Meantime, Bell Direct market analyst Grady Wulff recently named BHP as a stock he would want to hold if the "market closed tomorrow for four years". He told Motley Fool:

I think for us it's BHP because it's diversifying into the battery metal space as we've just recently seen through its acquisition of OZ Minerals for $9.6 billion. 

This is really important to note, because to date, they're obviously one of the biggest miners in the world, but they hadn't diversified into the way forward, which is decarbonisation, greener future, greener energy — and now they've got that under their belt. 

Looking at the iron ore price, Citi appears optimistic on iron ore in the short term amid China's COVID policy shift. Analysts said:

Policy tailwinds are likely to remain in favour of the bulls in the short term. A perceived U-turn in China's Covid policy and the country's efforts to shore up the beleaguered property sector drove an iron ore price rally during November.

We expect further improvement in reopening sentiment. However, we maintain our view that the physical fundamentals will remain weak in the near term.

BHP share price snapshot

The BHP share price has surged 32% in the last year, while it has soared more than 26% year to date.

For perspective, the ASX 200 has slipped around 0.5% in the last year.

BHP has a market capitalisation of more than $236 billion based on the current share price.

The post Up 20% in a month, can the BHP share price continue it's run in December? appeared first on The Motley Fool Australia.

You can stick to a long-term mindset but it is still human nature to feel depressed seeing a sea of red on the stockbroking dashboard.

Gerrish told his Market Matters newsletter that the most recent leg-up has quietened the cynics.

"There have been plenty of non-believers in equities over the last 12 to 18 months but the reality is, when we include dividends, the market is only 0.7% below its all-time high," he said.

"Where's the bear market?"

The past week, according to Gerrish, had seen a "risk-on" mindset return "with a bang" after US Federal Reserve chair Jerome Powell made comments interpreted as dovish.

His team noticed three ASX shares in particular that had piqued their interest as investors rediscover their enthusiasm:

Take the extra shares

Copper producer Sandfire Resources Ltd (ASX: SFR) is almost the last man standing after rival OZ Minerals Limited (ASX: OZL) last month agreed to be absorbed into BHP Group Ltd (ASX: BHP).

Sandfire shares are thus up a stunning 47% over the past month.

Gerrish's team is still "long and bullish" on Sandfire, while noting the current stock purchase offer to existing investors.

"We still have a week to apply for the entitlement to Sandfire shares at $4.30, significantly below where the stock closed yesterday," he said.

"Hence it's highly likely that Market Matters will be taking the extra shares."

Gold, gold, gold for Australia

Gerrish's team is also keen on the gold market.

For example, the Ramelius Resources Limited (ASX: RMS) share price has rocketed up close to 15% over the past few days.

"If we are correct, both Ramelius and the gold sector have further to rally."

This ASX 200 share has already rallied an amazing 65% since mid-October to close Friday at 99 cents.

Gerrish reckons there's more to come, though.

"We feel at least the next 20% looks set to be on the upside," he said.

"We think Ramelius can now rally towards the $1.13 initial resistance following Jerome Powell's dovish statement."

The post 'Long & bullish': Expert picks 2 ASX shares to buy as investors flock back to market appeared first on The Motley Fool Australia.