Yesterday we saw OZL rally +3.5% ignoring the day’s weakness as rumours circulated that BHP would increase its bid for the copper producer from its original $25 offer. Obviously, we don’t know if the chat is correct or if OZL will say yes but it all makes sense to MM as the “Big Australian” looks to beef up its copper assets as the world evolves towards a cleaner future.
- We believe on balance BHP will ultimately takeover OZL for around $30.
We are now donning our thinking caps towards what, if any miner, we want to buy if we are able to cash out our OZL position in the MM Flagship Growth Portfolio for around $30, Sandfire (SFR) an obvious candidate if OZL leaves the boards. NB: we have recently added SFR to our Emerging Companies Portfolios.
MM is long and bullish OZL
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