Harmony Gold Mining Plunges 10.42% on $1.03B Acquisition

On May 27, 2025, Harmony Gold Mining experienced a significant drop of 10.42% in pre-market trading, marking a notable decline in its stock performance.

Harmony Gold Mining has announced a strategic acquisition of MAC Copper Limited for approximately $1.03 billion in cash. This move is part of Harmony's broader strategy to expand its portfolio and enhance its cash flow through the acquisition of high-quality mining assets. The deal involves Harmony Australia acquiring 100% of MAC Copper's issued share capital, which includes the CSA Copper Mine in Australia. This acquisition is expected to provide Harmony with immediate cash flow from copper production, strengthening its position in the global mining industry.

The acquisition is subject to several conditions, including approval from Australia’s Foreign Investment Review Board and the South African Reserve Bank. Additionally, MAC Copper must enter into restructuring deeds or amendment and restatement documents in respect of its existing streaming arrangements with Osisko and its royalty with Glencore. The transaction is not subject to any financing or due diligence conditions, providing a high degree of certainty for shareholders.

MAC Copper's board has unanimously recommended that shareholders vote in favor of the scheme, highlighting the premium offered and the limited conditionality of the deal. Several key shareholders, including Fourth Sail Group, Osisko, Sprott Private Resource Lending II, Victor Smorgon Group, and BEP Special Situations VI LLC, have also confirmed their support for the transaction. The acquisition is expected to be completed in the fourth quarter of 2025, subject to shareholder and regulatory approvals.