Harmony Gold to Acquire MAC Copper in $1.6B Deal

About MAC Copper Ltd

MAC Copper Ltd (ASX: MAC) is an emerging Australian-focused base metals company engaged in the exploration, development, and production of copper. With corporate offices in Sydney and a core operational footprint in regional New South Wales, MAC Copper operates the CSA Copper Mine, one of Australia’s deepest and highest-grade underground copper mines. The company is committed to delivering high-quality copper concentrates to global markets, supported by long-life reserves and efficient underground mining methods. MAC Copper is focused on sustainable, long-term resource development and maintains strategic partnerships to support operational excellence and cost control. The company pursues disciplined capital allocation and growth through brownfield optimisation and regional exploration, with an emphasis on safety, innovation, and responsible environmental stewardship. Positioned to meet growing global demand for critical minerals, MAC Copper plays a key role in supporting clean energy transition and industrial infrastructure development through reliable copper supply.

From Glencore Carve-Out to Takeover Target

MAC Copper, owner of the CSA copper mine in New South Wales, is set to be acquired by South Africa’s Harmony Gold in a deal worth US$1.6 billion. Just 15 months after its ASX debut, the company has entered into a binding scheme implementation deed with Harmony, positioning MAC shareholders for a significant cash windfall and bringing a swift end to the miner’s brief run as an independent operator.

The all-cash offer of US$12.25 (A$18.93) per share represents a 21.1% premium on MAC’s last ASX trading price of A$15.51 and a 32.8% premium to its 30-day volume-weighted average price. The transaction reflects an equity valuation of US$1.03 billion on a fully diluted basis and highlights the strategic value of MAC’s flagship CSA mine in Australia’s copper supply chain.

MAC Copper, formerly Metals Acquisition Corporation, only completed its acquisition of the CSA copper mine from Glencore in June 2023 for US$1.1 billion. The deal was a bold entry into the Australian resource sector by the New York-based SPAC-turned-operator, and culminated in a dual listing on the ASX and NYSE in February 2024. The company’s IPO was among the most high-profile resource listings of the past year, underpinned by bullish long-term demand forecasts for copper.

The CSA mine, located near Cobar in regional NSW, is one of Australia’s deepest and highest-grade copper mines, with average production of 40,000 tonnes of copper annually. With a projected mine life of more than a decade, CSA was expected to anchor MAC’s ambitions to become a mid-tier copper producer with expansion potential across Australia.

However, copper price volatility and the capital intensity of sustaining operations in the current cost environment weighed on MAC’s valuation. Since its February listing, shares had fallen nearly 18% to A$15.51 prior to entering a trading halt. Despite those headwinds, MAC has steadily gained investor confidence, rising 5.8% in the month before the takeover was revealed.

Deal Terms and Shareholder Support

Harmony Gold’s proposal to acquire MAC Copper comes with strong board and shareholder support. MAC’s board has unanimously backed the scheme, representing approximately 2.4% of issued shares. A further 20.1% of shares, held by institutional investors, have also indicated support—providing early momentum for the transaction’s approval.

The scheme is subject to several regulatory conditions, including clearances from the Australian Foreign Investment Review Board and South Africa’s Reserve Bank, as well as consents tied to existing financial arrangements. These include a copper streaming agreement with Osisko Bermuda and a royalty with Glencore that remain linked to the CSA mine’s performance.

A scheme meeting will be held in Q4 2025, with transaction completion expected shortly after. To safeguard both parties, the deal includes a US$23.6 million break fee payable by MAC if it walks away, and an US$11.8 million reverse break fee payable by Harmony under certain conditions.

MAC CEO Mick McMullen described the offer as a “compelling opportunity” for shareholders to de-risk their investment and realise value above recent trading levels. He also emphasised the strategic upside of handing CSA over to a well-capitalised and experienced mining operator. “Harmony brings long-term stability and operational strength,” McMullen said, “and this transaction provides certainty in a volatile commodity environment.”

Outlook for MAC Copper Stakeholders

For MAC shareholders, the Harmony offer represents a clean exit at a premium valuation, with minimal conditionality and high deal certainty. After a rapid corporate lifecycle, acquisition, listing, and now buyout, investors are being offered a full-cash return at a time of rising copper demand but persistent sectoral volatility.

Copper prices have rallied in recent months, trading near US$9,800 per tonne on the London Metal Exchange, driven by accelerating investment in electrification infrastructure and constrained global supply.

Despite favourable long-term fundamentals, many smaller and newly listed miners like MAC face challenges funding exploration and development, making consolidation with larger players increasingly attractive.

For CSA mine employees and regional stakeholders, the transition to Harmony Gold could bring stability and additional capital for development. Harmony, which also holds the Eva Copper Project in Queensland, has signalled its intention to build a long-term Australian copper platform around MAC’s assets.

The acquisition of MAC Copper by Harmony Gold caps a brief but transformative chapter in the company’s history. From a high-profile Glencore carve-out to its ASX/NYSE debut and now a strategic takeover, MAC has quickly become a valuable asset in the global copper supply chain. For shareholders, the deal provides a timely and attractive exit amid ongoing market uncertainty, while for Harmony, it marks a calculated entry into Australia’s base metals sector with strong operational upside.