Harmony Gold Mining has entered into a binding agreement to acquire MAC Copper, the 100% owner of the producing CSA Copper Mine in Australia, in a deal worth $1.03bn.
The underground copper mine is located 700km west-northwest of Sydney, within the Cobar Region of New South Wales.
In addition to the CSA mine, MAC Copper is also advancing the Merrin Mine, anticipated to enhance copper and zinc production.
MAC Copper holds 756km2 of tenements, presenting opportunities for extending CSA’s operational life. In the fiscal year concluding on 31 December 2024, CSA Copper Mine reported a copper output exceeding 41,000 tonnes with a C1 cash cost of $1.92 per pound after by-product credits.
Shareholders of MAC Copper, which is listed on both the New York Stock Exchange (NYSE) and the Australian Securities Exchange (ASX), are offered $12.25 per share.
This offer signifies a premium of 32.1% over the 30-day volume-weighted average price (VWAP) of $9.28 per share on the NYSE as of 23 May 2025, and a premium of 32.8% over the 30-day VWAP of A$14.26 per CDI on the ASX as of 26 May 2025.
Additionally, it represents a premium of 20.7% compared to the last closing share price of $10.15 on the NYSE and a premium of 22.1% against the last closing CDI price of A$15.51 on the ASX.
MAC Copper’s board has unanimously endorsed this transaction and recommends that shareholders approve the scheme, barring any superior proposals. Key stakeholders holding or controlling 20.1% of the miner’s shares have expressed their intention to support this scheme.
MAC Copper CEO Mick McMullen said: “MAC has recently updated the market with several developments including our larger reserve life, production guidance, the new Merrin Mine development and the recent debt refinancing which we feel has enabled the market to remain fully informed.
“The board believes the Transaction provides MAC shareholders with a compelling opportunity to de-risk their investment and realise an attractive cash value of $12.25 per MAC share, which is also a premium to MAC’s recent historical trading levels. Additionally, the Scheme is subject to limited conditionality, which provides MAC shareholders with a high degree of Transaction certainty.”
This acquisition aligns with Harmony Gold Mining’s strategy of pursuing value-accretive acquisitions and transitioning into a low-cost global gold and copper mining entity through strategic capital allocation. The transaction further diversifies the firm’s portfolio by incorporating an established copper asset in a premier jurisdiction like Australia.
The CSA mine is a high-grade copper operation with an annual production exceeding 40,000 tonnes in concentrate, consistent with Harmony Gold Mining’s geographic focus.
The mine boasts over 12 years of reserve life and has seen stable resource management over the past decade, enhanced by MAC Copper’s significant resource growth since 2023.
As drilling continues, CSA’s grade is expected to improve with depth, while recent discoveries indicate additional mining prospects within the Merrin Mine area set to commence ore production in December quarter 2025.
Harmony Gold Mining CEO Beyers Nel said: “The operation is a logical fit with the portfolio given it meets Harmony’s core investment criteria, including increasing free cash flow generation while improving margins at long-term expected commodity prices. We believe that Harmony is well positioned to leverage its expertise in underground mining to further enhance operations.
“Furthermore, the transaction represents a significant step forward in transforming Harmony into an increasingly de-risked, higher-quality, global gold and copper producer through disciplined and effective capital allocation.”
The agreement is contingent upon certain conditions including approvals from Australia’s Foreign Investment Review Board and the South African Reserve Bank. It is also contingent on MAC Copper entering into restructuring deeds concerning existing streaming arrangements with Osisko Bermuda and royalty agreements with Glencore Operations Australia.
