MAC Copper (MTAL) Soars 21.08% on Harmony Gold Acquisition Deal

MAC Copper (MTAL) shares surged by 21.08% today, marking the second consecutive day of gains, with a total increase of 23.27% over the past two days. The stock price reached its highest level since December 2024, with an intraday gain of 26.11%.

The strategy of buying MTAL shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 28.70% gain. This suggests that the strategy captured some of the subsequent volatility in the stock, although the overall performance was relatively muted. The maximum drawdown of -23.15% during this period highlighted the risk of holding a stock that had recently peaked, underscoring the importance of considering both the potential for gains and the risk of downturns in such a strategy.

The primary driver behind the recent surge in MAC Copper's stock price is the acquisition deal announced by Harmony Gold Mining Company Ltd. Harmony Gold has expressed its intention to acquire MAC Copper in an all-cash transaction valued at $1.03 billion. This acquisition offers MAC Copper shareholders $12.25 per share, representing a 20.7% premium over the stock's recent closing price. The deal is expected to provide Harmony Gold with access to MAC Copper's sole asset, the CSA Copper Mine in Australia, which produced approximately 41 kilotons of copper last year. This acquisition is strategically significant for Harmony Gold as it expands their presence in the copper market and adds a high-quality copper asset to their portfolio.

Analysts have noted that the acquisition deal by Harmony Gold is a major catalyst for the recent stock price movement. The premium offered to shareholders and the strategic value of the CSA Copper Mine have generated significant investor interest, driving the stock price higher. The deal is expected to close in the coming months, subject to regulatory approvals and other customary closing conditions. Investors are optimistic about the potential synergies and growth opportunities that this acquisition could bring to Harmony Gold, further boosting the stock price of MAC Copper.