On Tuesday, Harmony Gold Mining Company Ltd. (NYSE:HMY) announced its intent to acquire MAC Copper Ltd. (NYSE:MTAL) in an all-cash deal valued at $1.03 billion. This acquisition aims to increase Harmony Gold’s exposure to copper, which is a vital commodity for the ongoing energy transition.
An open pit mine with heavy excavation machinery toiling away against the backdrop of a hidden valley.
MAC Copper’s primary asset is the CSA Copper Mine, which is located ~700 kilometers north-west of Sydney, Australia. In 2024, the mine produced ~41,000 metric tons of copper and has a current reserve life of over 12 years. The acquisition is also structured to include Harmony repaying MAC’s existing senior debt and assuming obligations related to silver and copper streams with Osisko Bermuda Limited, as well as royalty arrangements with Glencore Operations Australia Pty Ltd. Harmony will also be responsible for a potential $150 million contingent copper payment to Glencore linked to MAC’s previous acquisition of the CSA Copper Mine.
Under the terms of the binding scheme implementation deed, Harmony Gold (Australia) Pty Ltd., which is a wholly-owned subsidiary of Harmony Gold, will acquire 100% of MAC Copper’s issued share capital at $12.25 per share. This offer price represents a 20.7% premium over MAC Copper’s closing share price of $10.15 on Friday, May 23, and a 32.1% premium to the 30-day volume-weighted average price of $9.28 per MAC share on the NYSE up to and including Friday.
Harmony Gold Mining Company Ltd. (NYSE:HMY) explores, extracts, and processes gold, uranium, silver, and copper deposits. Whereas MAC Copper Ltd. (NYSE:MTAL) operates and acquires metals and mining businesses in Australia.
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Disclosure: None. This article is originally published at Insider Monkey.
