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Lundin Mining Corp is a diversified Canadian base metals mining company with operations in Brazil, Chile, Portugal, Sweden, and the United States of America, producing copper, zinc, gold, and nickel. Its material mineral properties include Candelaria, Chapada, Eagle, and Neves-Corvo. The majority of the revenue is from Copper.

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Despite looming copper deficit, substitution not enough to fill supply gap. EVs, renewable energy, China pose challenges. JPMorgan favors Teck, Lundin, Sandfire, Zijin, CMOC, Rio Tinto, and Anglo American for copper exposure.

Copper Deficit To Reach 4 Million Tons By 2030, Analyst Predicts: Mining, Electrification Plays Set To Benefit

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BHP and Lundin Mining have agreed to jointly acquire Filo Corp. for C$4.1 billion, creating a 50/50 joint venture in Argentina and Chile to develop copper projects.

BHP To Unlock South American Copper Riches: Partners With Lundin For Filo Acquisition

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Lundin Mining invests $350 million to increase ownership in Caserones mine to 70%, boosting copper and rare metal output and strengthening presence in Chile.

Lundin Mining Invests $350M To Expand Caserones Stake, Enhance Copper Production

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Despite the global copper market&#8217;s looming long-term supply deficit, talk of substitution as a savior is more smoke than fire, according to JPMorgan <a href="https://www.benzinga.com/topic/copper">analyst Patrick Jones</a>. 
While concerns about copper being swapped out for cheaper materials have been frequent, Jones notes, &#8220;Substitution &amp; thrifting could accelerate over the medium term, especially in newer technologies such as xEVs and renewables, we do not believe it will be sufficient to fill the long-term market deficit.&#8221;
<h2 class="wp-block-heading">Why It Matters: No Escape From Deficits</h2>
The energy transition has put copper in the spotlight, with demand surging due to its vital role in electric vehicles (EVs) and renewable energy infrastructure.
As Jones highlights, &#8220;xEVs typically contain 2-4x as much copper as Internal Combustion Engine vehicles,&#8221; which positions copper as a vital component for future technologies. Even though improvements in battery technology could reduce copper intensity in EVs, growing vehicle size and battery density are likely to offset these gains.
<h2 class="wp-block-heading">The China Conundrum</h2>
China, responsible for over half of global copper demand, poses a unique challenge when it comes to substitution. &#8220;In power generation, we do not expect significant further aluminum adoption in thermal power generation or offshore wind, given technological constraints and significant substitution has already occurred in onshore wind,&#8221; Jones says.
Although <a href="https://www.benzinga.com/topic/solar-energy">solar power</a> could see increased <a href="https://www.benzinga.com/topic/aluminum">aluminum</a> use, safety concerns and regulatory hurdles remain significant barriers to its broader adoption in other areas.
Jones also emphasizes the importance of copper recycling: &#8220;Now that historic copper networks are being replaced, this ‘urban mining' could release material copper scrap supply by 2030.&#8221;
<h2 class="wp-block-heading">Mining Plays To Watch</h2>
JPMorgan remains positive on long-term copper prices and equity exposure. In North America, Jones favors Teck Resources Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TECK#NYSE">TECK</a>), while in Europe, he highlights Lundin Mining Corp (OTCPK:LUNMF) for its &#8220;re-rating potential and de-risked growth pipeline.&#8221; 
In APAC, Sandfire Resources America Inc (OTCQB:<a class="ticker" href="https://www.benzinga.com/stock/SRAFF#OTCQB">SRAFF</a>), Zijin Mining Group Co Ltd (OTCPK:ZIJMF), and CMOC Group Ltd (OTCPK:CMCLF) are top picks, with Rio Tinto PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIO#NYSE">RIO</a>) and Anglo American PLC (OTCQX:<a class="ticker" href="https://www.benzinga.com/stock/AAUKF#OTCQX">AAUKF</a>) (OTCQX:<a class="ticker" href="https://www.benzinga.com/stock/NGLOY#OTCQX">NGLOY</a>) being key diversified miners deriving over 20% of their EBITDA from copper by 2025.
Jones remains cautious, however, on miners with &#8220;more expensive valuations and more idiosyncratic risks,&#8221; including Antofagasta PLC (OTCPK:ANFGF), Southern Copper Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCCO#NYSE">SCCO</a>), and Jiangxi Copper Co Ltd (OTCPK:JIAXF).
Read Also: <a href="https://www.benzinga.com/news/24/09/40684007/teck-resources-unveils-post-coal-business-structure-promotes-new-executives">Teck Resources Unveils Post-Coal Business Structure, Promotes New Executives</a>
<h2 class="wp-block-heading">Electrification Boom: Another Copper Catalyst</h2>
Beyond mining, Jones points out that greater electrification is a strong driver for cable and charging infrastructure names like Prysmian SpA (OTCPK:PRYMF) (OTCPK:PRYMY), ChargePoint Holdings Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHPT#NYSE">CHPT</a>), Xuji Electric, and Sieyuan Electric. 
In addition, he sees a potential upside for telecoms like BT Group PLC (OTCPK:BTGOF), which stands to benefit from recycling legacy copper telecoms wiring, with the company expecting to recycle about 200kt of copper from its network.
&#8220;We forecast the global copper market will face a ~4 mmt deficit by 2030E given accelerating demand growth and limited supply additions,&#8221; Jones concludes, also stating that while &#8220;substitution could diminish demand and delay larger deficits, it is unlikely to close the long-term supply gap.&#8221; 
Investors should brace for higher copper prices as the supply-demand gap widens, with mining and electrification plays looking poised to benefit.
Read Next: 
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40348381/small-caps-set-for-a-comeback-heres-why-they-deserve-your-attention">Small Caps Set For A Comeback? Here&#8217;s Why They Deserve Your Attention</a></li>
</ul>
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Consideration for the Acquisition to be&nbsp;$33.00&nbsp;per share in a mix of cash and Lundin Mining shares; concurrently, Filo announces a&nbsp;C$115 Million&nbsp;Private Placement to BHP and Lundin Mining in
Consideration for the Acquisition to be&nbsp;$33.00&nbsp;per share in a mix of cash and Lundin Mining shares; concurrently, Filo announces a&nbsp;C$115 Million&nbsp;Private Placement to BHP and Lundin Mining in connection with the Acquisition. 
&nbsp;
Highlights of the deal
<ul>
<li>Crystalizes immediate value for Filo shareholders and delivers a clear and credible path to developing Filo del Sol to its full potential, backed by two of the world&#39;s leading copper miners;</li>
<li>Consolidation of two key assets in the Vicu&ntilde;a district by the JV creates a market-leading operational footprint in the district and offers:
<ul>
<li>Strong balance sheet capacity to fund future project development;</li>
<li>Potential to capture synergies and operational efficiencies; and</li>
<li>The ability for&nbsp;Filo del Sol to benefit from recently passed legislation in&nbsp;Argentina&nbsp;benefiting projects entering development;</li>
</ul>
</li>
<li>Filo shareholders that receive Lundin Mining shares will maintain upside exposure to the JV, while also benefiting from:
<ul>
<li>Jurisdictional and project risk diversification in a company with diversified asset portfolio with long-life assets operating globally;</li>
<li>Exposure to strong and increasing cash flow generation and dividends; and</li>
<li>Enhanced market profile with greater share liquidity.</li>
</ul>
</li>
</ul>

CORRECTED: Reported Monday, BHP And Lundin Mining To Acquire Filo Corp For C$4.1B, Offering C$33/ Share In Cash And Lundin Mining Shares Or Mix Of Both

BHP Group Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) shares are trading lower today. The company and Lundin Mining Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LUNMF#OTC">LUNMF</a>) have agreed to jointly acquire all outstanding shares of Filo Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/FLMMF#OTC">FLMMF</a>) for a total consideration of <a href="https://www.benzinga.com//node/40026058">about C$4.1 billion, or C$33.00 per Filo share. </a>
The offer represents a 32.2% premium over Filo Corp.&#8217;s 30-day volume-weighted average price on the TSX as of July 11, 2024, the day before transaction rumors surfaced, and a 12.2% premium over the company&#8217;s last closing price on July 29, 2024.
BHP&#8217;s total cash payment for the proposed transaction is projected to be around $2.1 billion.
As part of the Filo acquisition, BHP and Lundin Mining will also purchase 3.48 million common shares of Filo at C$33.00 per share, totaling C$115 million in gross proceeds. This share placement is intended to provide interim financing to Filo.
Upon completion of the acquisition, BHP and Lundin Mining will each hold a 50% stake in Filo Corp. and the FDS project.
Filo shareholders can elect to receive cash, Lundin Mining shares, or a combination of both. BHP will contribute approximately C$1.908 billion ($1.377 billion) in cash, while Lundin Mining will provide around C$859 million in cash and C$1.289 billion in Lundin Mining shares.
BHP and Lundin Mining will also establish a 50/50 joint venture to manage the FDS and Josemaria projects in the Vicuña district of Argentina and Chile. Lundin Mining owns 100% of the Josemaria project.
Additionally, BHP will buy a 50% stake in the Josemaria project from Lundin Mining for around $690 million, subject to adjustments.
The company anticipates closing the deal in the first quarter of 2025, pending satisfaction of all closing conditions.
Read: <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/05/39068033/time-runs-out-for-bhp-deal-49-billion-acquisition-of-anglo-american-proves-too-complex-to-solve" rel="noreferrer noopener">Time Runs Out For BHP Deal: $49-Billion Acquisition Of Anglo American Proves Too Complex To Solve</a>
Mike Henry, BHP&#8217;s&nbsp;Chief Executive Officer, said, &#8220;This transaction aligns with BHP&#8217;s strategy to acquire attractive early-stage copper projects and enter into strategic partnerships with parties where complementary skills and experience can deliver long-term economic and social value.&#8221;
&#8220;The joint venture with Lundin Mining will advance the development of the Vicuña district, which offers the potential to become a major contributor to the economy of Argentina for decades to come. At the same time, by partnering with Lundin Mining, BHP is continuing to invest in the growth of a robust mining sector in Canada.&#8221;&nbsp;
Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39725092/bhp-to-temporarily-shut-down-western-australia-nickel-operations-details" rel="noreferrer noopener">BHP To Temporarily Shut Down Western Australia Nickel Operations: Details</a>
This month, BHP reported second-quarter copper production of 504.9 Kt (+6% Y/Y), led by growth at Escondida (+6% Y/Y), Copper South <a target="_blank" href="https://www.benzinga.com//node/39816439" rel="noreferrer noopener">Australia (+17% Y/Y), and Antamina (+5% Y/Y).</a>
Investors can gain exposure to the stock via&nbsp;Exchange Traded&nbsp;Concepts Trust Optica Rare Earths &amp; Critical Materials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRIT#NYSE">CRIT</a>) and&nbsp;VanEck Natural Resources ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAP#NYSE">HAP</a>).
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/40015779/bhps-escondida-mine-faces-potential-strike-over-contract-dispute-report" rel="noreferrer noopener">BHP&#8217;s Escondida Mine Faces Potential Strike Over Contract Dispute: Report</a>
Price Action: BHP shares are down 2.47% at $53.65 premarket at the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock
Read Next:
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<li><a href="https://www.benzinga.com/news/large-cap/24/06/39500608/bhp-group-anticipates-uptick-in-2024-carbon-emissions-remains-committed-to-30-reduction-by-2030" target="_blank" rel="noreferrer noopener">BHP Group Anticipates Uptick In 2024 Carbon Emissions, Remains Committed To 30% Reduction By 2030</a></li>
</ul>

Lundin Mining (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LUNMF#OTC">LUNMF</a>) announced a $350 million investment to boost its ownership in the Caserones copper-molybdenum mine in Chile to 70%. After acquiring control of the mine in March 2023, the Canadian miner is now exercising a right to expand its stake, boosting its <a href="https://www.benzinga.com/topic/copper">copper and rare metal output.</a>
&#8220;This strategic investment reinforces our commitment to expanding our copper portfolio and strengthens our presence in a key mining region,&#8221; <a href="https://lundinmining.com/news/lundin-mining-exercises-option-to-increase-ownersh-123157/">stated</a> CEO Jack Lundin.
Caserones is situated in the Atacama Region of northern Chile, near the border with Argentina, and operates at an altitude of approximately 4,200 meters. The mine produces both copper concentrate and copper cathodes alongside molybdenum concentrate. Anticipated production in 2024 stands between 100,000 and 130,000 metric tons of copper and around 3,000 metric tons of molybdenum.
Now read: <a href="https://www.benzinga.com/markets/asia/24/06/39508095/japan-discovers-200-million-tons-of-rare-earth-metals-near-remote-island-expects-mining-to-begin-202">Japan Discovers 200 Million Tons Of Rare Earth Metals Near Remote Island, Expects Mining To Begin 2026</a>
The mine&#8217;s strategic location and substantial production capacity make it a valuable asset in Lundin Mining&#8217;s portfolio. As part of the investment agreement, Lundin Mining will now be entitled to a yearly operator fee in the form of a $21 million preferred dividend, which will increase to $28 million in 2025.
Management plans to fund this transaction through its revolving credit facility, ensuring the investment does not impact the company's immediate liquidity.
Expanding a stake in a copper mine is no surprise to the industry, as BHP's recent $50 billion attempted acquisition of Anglo American showcases the importance of quality copper assets.
Speaking at this week&#8217;s London Indaba, Benchmark Mineral Intelligence analyst Piotr Ortonowski commented on the positive trend and growing demand for copper as a pivotal metal in the global energy transition.
"I think we&#8217;re moving into a new era of demand where we might see, instead of 2% to 2.5% growth per annum copper demand, we&#8217;ll probably see 2.5% to 3% demand growth, which might not sound like a lot, but it is, in absolute terms," he said, <a href="https://www.miningweekly.com/article/copper-market-facing-renewed-caution-from-investors-2024-06-26">per</a> Mining Weekly's report.
Lundin Mining&#8217;s increased stake in Caserones positions them well to capitalize on this upward trend.
Read Next:
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<li><a href="https://www.benzinga.com/news/large-cap/24/06/39500608/bhp-group-anticipates-uptick-in-2024-carbon-emissions-remains-committed-to-30-reduction-by-2030">BHP Group Anticipates Uptick In 2024 Carbon Emissions, Remains Committed To 30% Reduction By 2030</a></li>
</ul>
 Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:licensing@benzinga.com">licensing@benzinga.com</a> to get started!
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The investment landscape for copper has been ignited by recent bullish predictions, particularly from prominent hedge fund <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37985516/not-just-nvidia-ai-is-also-fueling-global-copper-demand-analyst-reveals-3-top-stock">manager Pierre Andurand</a>. 
Andurand's <a href="https://www.ft.com/content/725234a6-9e6f-4a4a-9406-2bda667ca511">forecast</a> of copper prices reaching $40,000 per tonne underscored a compelling investment opportunity in copper miner stocks and the Global X Copper Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COPX#NYSE">COPX</a>).
Here are the drivers behind his optimistic outlook for copper. Benzinga will also touch upon the performance and holdings of the Global X Copper Miners ETF and examine technical indicators to present a comprehensive case for investors.
<h1 class="wp-block-heading">Copper Demand-Supply Dynamics</h1>
Copper, a critical metal in the energy transition, is poised for significant demand growth. Andurand&#8217;s prediction is based on the increasing electrification of the world, including:
<ul>
<li>electric vehicles</li>
<li>renewable energy infrastructure</li>
<li>military applications</li>
<li>data centers</li>
</ul>
As these sectors expand, the demand for copper is expected to double, outpacing supply, which traditionally takes about 15 years to develop new mines.
<h1 class="wp-block-heading">Pierre Andurand's Bullish Outlook For Copper</h1>
Andurand, known for his success in commodities trading, shifted his focus to copper after experiencing setbacks in the oil market.
His Commodities Discretionary Enhanced fund rebounded from a 55% loss last year and is now up 83% year-to-date, largely due to diversified commodity investments.
He believes current supply constraints and robust demand will propel copper prices to unprecedented heights.
<h1 class="wp-block-heading">COPX ETF Overview</h1>
The Global X Copper Miners ETF (COPX) offers a targeted investment in copper mining companies. With an expense ratio of 0.65%, the ETF has shown impressive returns:
<ul>
<li>3 Month Return: 32.70%</li>
<li>YTD Return: 27.36%</li>
<li>1 Year Return: 39.32%</li>
</ul>
<h1 class="wp-block-heading">Key Holdings</h1>
Global X Copper Miners ETF's portfolio includes leading copper miners, reflecting a diversified exposure to the industry (Company name, U.S.-listed ticker, allocation%):
<ol>
<li>First Quantum Minerals Ltd. (OTCPK:FQVLF) &#8211; 5.31%</li>
<li>KGHM Polska Miedz S.A. (OTCPK: KGHPF) &#8211; 5.30%</li>
<li>Boliden AB (OTCPK:BDNNY) (OTCPK: BLIDF) &#8211; 4.82%</li>
<li>Lundin Mining Corp. (OTCPK: LUNMF) &#8211; 4.72%</li>
<li>Teck Resources Limited Class B (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TECK#NYSE">TECK</a>) &#8211; 4.69%</li>
<li>BHP Group Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) &#8211; 4.64%</li>
<li>Glencore plc (OTCPK: GLCNF) (OTCPK: GLNCY) &#8211; 4.60%</li>
<li>Zijin Mining Group Co., Ltd. Class H (OTCPK: ZIJMF) (OTCPK: ZIJMY) &#8211; 4.58%</li>
<li>Antofagasta plc (OTCPK: ANFGF) &#8211; 4.54%</li>
<li>Freeport-McMoRan, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCX#NYSE">FCX</a>) &#8211; 4.51%</li>
</ol>
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38292100/freeport-mcmoran-vs-teck-resources-which-copper-stock-has-more-upside">Freeport-McMoRan Vs. Teck Resources — Which Copper Stock Has More Upside?</a>
<h1 class="wp-block-heading">Charts Indicate Bullish Outlook For Global X Copper Miners ETF</h1>
The technical indicators for Global X Copper Miners ETF reveal a moderately bullish trend, with buying pressure suggesting a positive outlook.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="625" height="454" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/27075654/Screenshot-2024-05-27-at-3.57.03-PM.png" alt="" class="wp-image-357042" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/27075654/Screenshot-2024-05-27-at-3.57.03-PM.png 625w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/27075654/Screenshot-2024-05-27-at-3.57.03-PM-300x218.png 300w" sizes="(max-width: 625px) 100vw, 625px" /></figure>
<a href="https://pro.benzinga.com/dashboard" target="_blank" rel="noreferrer noopener">Chart: Benzinga Pro</a>
The Global X Copper Miners ETF share price is $48.66 while the 8-day simple moving average (SMA) is $49.98, which signals short-term bearishness.
However, the 20-day SMA at $48.35 and the 50-day SMA at $45.74 both indicate a bullish momentum. The 200-day SMA stands at $38.34, further reinforcing the bullish signal as the stock price remains well above it.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="625" height="454" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/27075708/Screenshot-2024-05-27-at-3.56.13-PM.png" alt="" class="wp-image-357043" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/27075708/Screenshot-2024-05-27-at-3.56.13-PM.png 625w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/27075708/Screenshot-2024-05-27-at-3.56.13-PM-300x218.png 300w" sizes="(max-width: 625px) 100vw, 625px" /></figure>
<a href="https://pro.benzinga.com/dashboard" target="_blank" rel="noreferrer noopener">Chart: Benzinga Pro</a>
The Moving Average Convergence Divergence (MACD) indicator is 1.21, suggesting bullishness, while the Relative Strength Index (RSI) at 53.65 indicates that the ETF is neither oversold nor overbought. 
Additionally, the Bollinger Bands support bullish signals as the ETF is trading within the upper range.
Given the bullish forecast for copper prices, driven by robust demand and constrained supply, copper miner stocks and the COPX ETF represent a compelling investment opportunity. 
Andurand's expertise and confidence in the market, coupled with strong ETF performance and supportive technical indicators, suggest that investors could consider taking exposure to this sector. 
As the world continues to electrify and transition towards renewable energy, the demand for copper is set to soar, making now an opportune time to invest in copper miners through Global X Copper Miners ETF.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37985516/not-just-nvidia-ai-is-also-fueling-global-copper-demand-analyst-reveals-3-top-stock">Not Just Nvidia, AI Is Also Fueling Global Copper Demand: Analyst Reveals 3 Top Stock Picks</a>
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Copper To $40,000 A Tonne, Says Hedge Fund Titan Pierre Andurand: What ETF Investors Should Watch

Australian multinational miner&nbsp;<a href="https://www.benzinga.com/quote/BHP">BHP Group</a>'s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) nearly $40 billion bid for rival Anglo American (OTC:&nbsp;NGLOY) may not be enough to acquire the company as other diversified miners will probably make rival bids amid the global scramble for copper assets.
After completing a $6.4 billion takeover of Australian copper producer&nbsp;OZ Minerals&nbsp;last year, BHP is doubling down on the red metal amid widespread expectations that demand will greatly increase in coming years as the global economy transitions from fossil fuels. 
Solar and wind farms and electric vehicles require more copper than traditional utilities and internal combustion engine automobiles.
"This is the latest move to consolidate in industrial metals driven by a scramble for copper and other metals central to the world&#8217;s clean energy movement,"&nbsp;Sean Casterline, founder of the investment consulting firm&nbsp;Delta Capital Management, told Benzinga.
BHP, already the world's biggest mining company, is currently the third-largest copper producer behind Chile's state-run&nbsp;Codelco&nbsp;and U.S.-based heavyweight&nbsp;Freeport-McMoRan Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCX#NYSE">FCX</a>). A combination with Anglo American would push BHP to the pole position.&nbsp;&nbsp;
"In our view, the copper assets are the primary driver of a proposed transaction,"&nbsp;RBC Capital Markets analysts said.&nbsp;
<h1 class="wp-block-heading">Rival Bids Seem Likely</h1>
BHP said it offered 25.08 pounds ($32.27) a share for London-based Anglo American, which said it is reviewing the proposal. The all-share deal values Anglo American at GBP 31.1 billion ($38.9 billion) and is contingent on the U.K. company spinning off its shareholdings in Anglo American Platinum Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ANGPY#OTC">ANGPY</a>) and Kumba Iron Ore Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/KIROY#OTC">KIROY</a>), which are both listed in South Africa.
The proposal represents a nearly 14% premium for Anglo American's London-listed shares and a 31% premium without the platinum and iron ore units.
Analysts said that probably isn't enough.
Also Read: <a href="https://www.benzinga.com/markets/asia/24/04/38090219/will-copper-reach-10-000-an-essential-metal-that-faces-an-uncertain-future">Will Copper Reach $10,000? &#8216;An Essential Metal That Faces An Uncertain Future&#8217;</a>
Anglo American's shares have been so beaten down recently that its board and shareholders probably see BHP's bid as undervaluing the company, including copper assets in Chile and Peru, where BHP also has copper operations. Anglo American's shares have been suffering because of operational problems, a disappointing production outlook and a slump in diamond and platinum-group markets.
BHP's offer is "a timid and somewhat convoluted bid" that "won't be enough to draw either Anglo's board or its key shareholders," Liberum analyst Ben Davis said. After BHP's offer, he raised Anglo's price target to 27.50 pounds ($34.41), a near 25% bump from the stock&#8217;s closing price before the offer was officially made public.
Jefferies analysts went higher, saying a price of at least 28 pounds ($35.04) per share would be required for serious discussions between the companies, and a takeout price north of 30 pounds ($37.54) per share would be the outcome of a bidding war.
"If BHP does indeed continue to pursue this deal, we would be surprised if other bidders do not emerge," the company said. "Let the games begin."
The RBC Capital Markets analysts pegged diversified miner Glencore (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLNCY#OTC">GLNCY</a>) as one logical bidder because of the potential advantages in combining the companies' copper assets. The company also listed Vale (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VALE#NYSE">VALE</a>) as a possibility because of the attractiveness of combining iron ore assets in Brazil. 
Davis pointed to diversified multinational miner&nbsp;Rio Tinto&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIO#NYSE">RIO</a>) as his top pick for an interloper, although he noted the company has a reputation for preferring to build mines rather than buy them.
<h1 class="wp-block-heading">Gold Miners Expand Copper Holdings</h1>
One reason why copper acquisitions are attractive is that building new copper mines from scratch is expensive and time-consuming.
That's especially true in the U.S., where getting a permit is difficult, or in other jurisdictions such as Panama, where a court ruling recently forced the closure of a huge copper mine after local protests, said&nbsp;Jason Crawshaw, portfolio manager at&nbsp;Polaris Capital, which invests in copper miners&nbsp;Lundin Mining Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LUNMF#OTC">LUNMF</a>) and Antofagasta (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ANFGF#OTC">ANFGF</a>).
"There is a scramble for assets," he told Benzinga. "Everybody is always looking to get more exposure to copper."
Even gold miners have been interested in bulking up on copper assets.&nbsp;
Last year, U.S.-based gold mining major&nbsp;Newmont Corp.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>) bought Australian gold miner Newcrest Mining Ltd. for nearly $17 billion, adding nearly 50 billion pounds of copper reserves and resources in one fell swoop.
Meanwhile, Canada-headquartered rival&nbsp;Barrick Gold Corp.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GOLD#NYSE">GOLD</a>) is spending nearly $2 billion to expand a copper mine in Zambia, targeting expanded plant production in 2028.&nbsp;
Investors looking for diverse exposure to copper producers can consider the&nbsp;Global X Copper Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COPX#NYSE">COPX</a>),&nbsp;Sprott Copper Miners ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COPP#NASDAQ">COPP</a>),&nbsp;Sprott Junior Copper Miners ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COPJ#NASDAQ">COPJ</a>)&nbsp;and&nbsp;iShares Copper and Metals Mining ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ICOP#NASDAQ">ICOP</a>).
Now Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37924793/rising-copper-prices-portfolio-review-make-underperforming-anglo-american-stock-a-p">Rising Copper Prices, Portfolio Review Make Underperforming Anglo American Stock A Potential Bargain: Report (CORRECTED)</a>
Photo: Anglo American copper mine in Chile courtesy of Anglo American Flickr

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Copper Is A Hot Commodity: Bidding War for Anglo American May Emerge After BHP's 'Low Ball' Offer — 'Let The Games Begin'

Lundin Mining Corp (OTC: <a class="ticker" href="https://www.benzinga.com/stock/lunmf#OTC">LUNMF</a>) shares were <a href="https://www.benzinga.com/quote/LUNMF">climbing in early trading on Wednesday</a>.
The company is&nbsp;a defensive name with strong cash flows in the near term, while being leveraged to copper prices in the longer term, according to BMO Capital Markets.
The Lundin Mining Analyst: Jackie Przybylowski upgraded the rating for Lundin Mining from Market Perform to Outperform, while raising the price target from $12 Canadian dollars ($8.83) to CA$16 ($11.78).
The Lundin Mining Thesis: The company now has &ldquo;plenty of cash after the sale of its Tenke stake, stable operations, and the generous NCIB in place,&rdquo; Przybylowski said in the upgrade note.
Check out <a href="https://www.benzinga.com/analyst-stock-ratings">other analyst stock ratings</a>.
With operating challenges in the rearview mirror, Lundin Mining&rsquo;s assets are poised for steady production, which should generate strong cash flows in 2024, the analyst stated.
&ldquo;Acquisitions of Josemaria and Caserones between 2021 and 2023 provide the company with growth optionality,&rdquo; Przybylowski wrote, adding&nbsp;that Lundin Mining enjoyed&nbsp;&ldquo;a long-term leverage to copper prices through the future development of some of the industry&rsquo;s best potential major growth projects of the next generation.&rdquo;
LUNMF Price Action: Shares of Lundin Mining had risen by 1.86% to $9.85 at the time of publication on Wednesday.
Read Next:&nbsp;&#39;<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37955066/time-to-buy-apple-stock-says-expert-out-of-all-mag-7-stocks-after-maybe-tesla-apple">Time To Buy&#39; Apple Stock, Says Expert: &#39;Out Of All Mag 7 Stocks, After Maybe Tesla, Apple Is Currently The Most Hated&#39;</a>
Photo: Shutterstock

Upgrades

Price Target

Why This Lundin Mining Analyst Is Turning Bullish

BMO Capital analyst Jackie Przybylowski upgrades Lundin Mining (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LUNMF#OTC">LUNMF</a>) from Market Perform to Outperform and raises the price target from $12 to $16.

BMO Capital Upgrades Lundin Mining to Outperform, Raises Price Target to $16

Raymond James analyst Farooq Hamed maintains Lundin Mining (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LUNMF#OTC">LUNMF</a>) with a Market Perform and raises the price target from $9.5 to $11.5.

Raymond James Maintains Market Perform on Lundin Mining, Raises Price Target to $11.5

JP Morgan analyst Patrick Jones maintains Lundin Mining (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LUNMF#OTC">LUNMF</a>) with a Underweight and lowers the price target from C$8.4 to C$8.

JP Morgan Maintains Underweight on Lundin Mining, Lowers Price Target to $8

TD Securities analyst Greg Barnes upgrades Lundin Mining (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LUNMF#OTC">LUNMF</a>) from Hold to Buy and raises the price target from $11 to $11.5.

TD Securities Upgrades Lundin Mining to Buy, Raises Price Target to $11.5

Barclays analyst Matthew Murphy maintains Lundin Mining (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LUNMF#OTC">LUNMF</a>) with a Equal-Weight and raises the price target from C$10 to C$11.

TSX:LUN

Barclays Maintains Equal-Weight on Lundin Mining, Raises Price Target to C$11

Deutsche Bank analyst Abhi Agarwal maintains Lundin Mining (TSX:<a class="ticker" href="https://www.benzinga.com/stock/LUN#TSX">LUN</a>) with a Hold and lowers the price target from C$10.25 to C$8.

Deutsche Bank Maintains Hold on Lundin Mining, Lowers Price Target to C$8

Intraday Update

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