Harmony Gold Expands with MAC Copper Buy

Harmony Gold, a prominent South African gold mining company, has undertaken a strategic expansion into the copper sector by acquiring MAC Copper Limited for approximately $1 billion or R17.9bn. The acquisition includes the CSA Copper Mine in Australia, one of the country's highest-grade copper mines. The transaction is notable as copper is increasingly seen as a critical mineral for future-proofing, attracting keen interest from both South African and global miners. Harmony Gold's CEO, Beyers Nel, emphasized that the acquisition aligns with the company’s core investment criteria, contributing to increased free cash flow and improved margins at anticipated commodity prices. This acquisition, detailed as a $12.25 per share deal, implies a total equity value for MAC Copper of $1.03bn or R18.4bn. Earlier in the year, Harmony Gold's earnings had improved, with a 19% rise in revenue to R35.45 billion for the half year ending December, and net profits increasing by 33% to R7.93bn, indicating a favorable operating environment in South Africa.