Latest news with #MACCopper
TimesLIVE
a day ago
- Business
- TimesLIVE
Harmony's $1bn (R18bn) copper deal a 'sweet spot' for the company
South Africa's biggest gold producer Harmony Gold estimates that by the 2035 financial year, 45% of its production will come from Australasia after agreeing to buy Australia's Mac Copper for $1bn (R18.42bn). The MAC Copper acquisition is its second foray into copper after buying the Eva Copper project in Queensland in 2022, a mine that is likely to produce up to 60,000 tonnes of the metal a year from 2029. CEO Beyers Nel said MAC Copper's CSA Copper mine in New South Wales, which produces 40,000 tonnes of the metal a year, represented a 'sweet spot' for the group. 'There is a scramble for copper mines in the market at the moment, people pay top dollar. But we believe because this mine is a deeper mine — it is more of a mine that suits Harmony's skills set — it potentially kept other bidders out of the mine. 'It is too big for the juniors and probably too small for the majors. The 40,000 tonnes of copper from a size point of view is ideal and a sweet spot for a company like Harmony to take it. It is production from day one because it is an operating mine. It is also in a tier-one mining jurisdiction; New South Wales in Australia is a good place to mine,' said Nel. Nel said the shift enhanced profitability, reduced geographical concentration risks, and positioned Harmony to deliver sustainable long-term returns. He said the mine also presented near-term copper into Harmony's production mix as opposed to its Eva project in Australia and Walfi-Golpu, a gold/copper project in Papua New Guinea (PNG) it jointly owns with Newmont Corp. He said the Walfi-Golpu project had been frustratingly slow. However despite violence at Barrick Gold Corporation's Porgera Gold Mine in Papua New Guinea's Enga province, the area was calm. 'I would not say there are problems there. It is calm. People sometimes throw one blanket over Papua New Guinea and think what is happening at Porgera with Barrick is happening everywhere in Papua New Guinea. That is not th e case. Where our mine is, things are calm and the communities are supportive of the mine,' he said. The Harmony share traded 6% lower after the announcement this week. Nel said the market still needs to digest the deal. 'It is still $1bn, it's a lot of money. It is typical that when a big transaction takes place that the buying company's share price comes under pressure. 'We are not fixated about the day trade, we think this is a good asset for Harmony's skills set and we can add a lot of value to it, there is a lot of blue sky, upside potential beyond the current mine life. We are very bullish about the copper price long term. if you think about the global energy transition and supply and demand. We need to look at the long-term perspective.'
Yahoo
3 days ago
- Business
- Yahoo
Harmony Gold to Acquire MAC Copper in $1.03 Billion Deal, Boosting Copper Exposure
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. While we acknowledge the potential of HMY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HMY and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
3 days ago
- Business
- Yahoo
Why Harmony Gold Mining Company Limited (HMY) Went Down On Tuesday
We recently published a list of In this article, we are going to take a look at where Harmony Gold Mining Company Limited (NYSE:HMY) stands against other worst-performing stocks. Harmony Gold saw its share prices tumble by 8.78 percent on Tuesday to finish at $14.45 apiece following news that it is set to acquire MAC Copper Ltd. (NYSE:MTAL) for $1.03 billion. According to the company, the acquisition would be fully paid in cash. Through the Australian firm, it would accelerate its strategic shift into the copper industry. Under the transaction, Harmony Gold Mining Company Limited (NYSE:HMY) would buy MAC Copper's shares at a price of $12.25 apiece. The amount represented a 21-percent premium from its closing price on Friday, or prior to the announcement. An open pit mine with heavy excavation machinery toiling away against the backdrop of a hidden valley. Upon closing of the transaction, Harmony Gold Mining Company Limited (NYSE:HMY) would gain full ownership of MAC Copper's only asset, the CSA copper mine in central western New South Wales, one of Australia's highest grade and oldest operating copper mines. Overall, HMY ranks 3rd on our list of worst-performing stocks. While we acknowledge the potential of HMY, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HMY and that has 10,000x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Why Harmony Gold Mining Company Limited (HMY) Went Down On Tuesday
We recently published a list of In this article, we are going to take a look at where Harmony Gold Mining Company Limited (NYSE:HMY) stands against other worst-performing stocks. Harmony Gold saw its share prices tumble by 8.78 percent on Tuesday to finish at $14.45 apiece following news that it is set to acquire MAC Copper Ltd. (NYSE:MTAL) for $1.03 billion. According to the company, the acquisition would be fully paid in cash. Through the Australian firm, it would accelerate its strategic shift into the copper industry. Under the transaction, Harmony Gold Mining Company Limited (NYSE:HMY) would buy MAC Copper's shares at a price of $12.25 apiece. The amount represented a 21-percent premium from its closing price on Friday, or prior to the announcement. An open pit mine with heavy excavation machinery toiling away against the backdrop of a hidden valley. Upon closing of the transaction, Harmony Gold Mining Company Limited (NYSE:HMY) would gain full ownership of MAC Copper's only asset, the CSA copper mine in central western New South Wales, one of Australia's highest grade and oldest operating copper mines. Overall, HMY ranks 3rd on our list of worst-performing stocks. While we acknowledge the potential of HMY, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HMY and that has 10,000x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
MAC Copper Stock Soars on $1.03 Billion Buyout by Harmony Gold
MAC Copper shares soared Tuesday after the copper miner agreed to be purchased by Harmony Gold for $1.03 billion. MAC Copper shareholders will receive $12.25 for every share they own, a 20.7% premium from MAC Copper's closing price on Friday. The deal gives Harmony the CSA Copper Mine in Australia, which produced approximately 41 kilotons of copper last of MAC Copper (MTAL) soared Tuesday after the copper miner agreed to be purchased by Harmony Gold Mining Company (HMY) for $1.03 billion, in a move that boosts Harmony's reach into the copper market. MAC Copper said the deal will pay investors $12.25 for every share they own, a 20.7% premium to the stock's closing price on Friday. Shareholders will also have the option to be paid in Australian dollars, which the companies said "will be calculated with reference to the applicable exchange rate published on the website of the Reserve Bank of Australia on the Effective Date.' The agreement gives Harmony MAC Copper's sole asset, the CSA Copper Mine in Australia, which CEO Beyers Nel said 'is significant as it introduces a high-quality, established underground producing copper asset to the Harmony portfolio.' He added that CSA produced about 41 kilotons of copper in 2024, and 'meets Harmony's core investment criteria, including increasing free cash flow generation while improving margins at long-term expected commodity prices.' MAC Copper plans to hold a shareholder meeting to vote on the proposal in the fourth quarter. For the acquisition to be completed, approval by at least 75% of the voting shares is necessary, and various regulatory requirements must be met. MAC Copper shares were up over 22% in recent trading, while Harmony Gold dropped about 9%. Read the original article on Investopedia Sign in to access your portfolio
