Harmony Gold Mining Company has agreed to acquire MAC Copper, owner of the high-grade CSA Copper Mine in Australia, for a total equity value of $1.03bn (A$1.6bn).
The move is set to introduce a significant underground producing copper asset into Harmony’s portfolio and is expected to enhance the company’s free cash flow generation and margins.
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Located approximately 700km west-north-west of Sydney in the Cobar Region of New South Wales, the CSA Copper Mine is the sole asset of MAC, which is registered in Jersey.
Harmony Gold (Australia), a wholly owned subsidiary of Harmony, will acquire 100% of the securities in MAC at $12.25 per share in cash.
The transaction implies a premium of 20.7% to MAC’s last closing price on the New York Stock Exchange and 32.1% to the 30-day volume weighted average price.
Harmony CEO Beyers Nel said: “The acquisition of the CSA Copper Mine in Australia is significant as it introduces a high-quality, established underground producing copper asset to the Harmony portfolio. CSA is one of the highest-grade copper mines in Australia, producing ~41kt (41,000 tonnes) of copper in calendar year 2024. 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.
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By GlobalData“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 offer price represents a fully diluted equity value for MAC of $1.03bn, with Harmony intending to fund the transaction through a $1.25bn bridge facility and existing cash reserves.
The bridge facility is arranged and underwritten by Citibank, J.P. Morgan Securities and Macquarie Bank, with a tenure of 364 days and a possible six-month extension.
Subject to conditions, the transaction is expected to be completed in the December quarter of 2025, with MAC becoming a wholly owned subsidiary of Harmony.
This acquisition aligns with Harmony’s strategy of value-accretive acquisitions and supports its objective of transitioning into a low-cost, global gold and copper mining company.
Harmony Gold Mining Company reported a 33% increase in net profit to R7.9bn ($440.49m) for the six months ended 31 December 2024, with a strengthened balance sheet showing a net cash position of R7.3bn.
This financial growth was supported by a 19% rise in group gold revenue, reaching R35.4bn.
