MAC Copper Shares Surge Amid Court Approval of Harmony Gold Acquisition Proposal

Mac Copper Limited's shares rose after a court sanctioned Harmony Gold's proposed acquisition. The company operates the CSA copper mine in New South Wales, Australia, and is focused on metals and mining businesses in jurisdictions critical to global electrification and decarbonization.

The Royal Court of Jersey has sanctioned Harmony Gold's proposed acquisition of MAC Copper Limited (NYSE:MTAL; ASX:MAC), a move that has seen MAC Copper's shares rise. The acquisition is a significant consolidation in the metals mining sector, particularly for companies focused on materials critical to global electrification and decarbonization efforts.

MAC Copper Limited, based in Jersey, operates the CSA copper mine in New South Wales, Australia. The CSA Copper Mine is located 700 kilometers west-northwest of Sydney near the town of Cobar. The mine produces 58 underground copper mines and holds a Mining Lease (CML5) over the CSA deposit, supplemented by Mining Purpose Leases (MPL) MPL 193 and MPL 1094. The mine is surrounded by two Exploration Licenses, EL5693 and 5983, covering approximately 366 square kilometers.

Harmony Gold, with a market capitalization of $3.3 billion and strong financial health, maintains a solid balance sheet with more cash than debt. The court order approves the acquisition of 100% of MAC Copper’s issued share capital by Harmony Gold (Australia) Pty Ltd, a wholly owned subsidiary of Harmony Gold Mining Company Limited (JSE:HAR, NYSE:HMY). The acquisition is structured as a Jersey law scheme of arrangement, and trading of MAC CDIs on the Australian Securities Exchange and MAC shares on the New York Stock Exchange will be suspended at the close of trading on October 10.

Following the suspension, MAC shares will be delisted from the NYSE on October 24, with consideration payments to shareholders beginning on October 27 for shares held within DTC and October 31 for shares held outside DTC and for CDI holders. The company will be delisted from the ASX on November 3.

The acquisition represents another consolidation move in the metals mining sector, particularly for companies focused on materials critical to electrification and decarbonization efforts. Harmony Gold’s financial metrics reflect this strategic positioning, with an EBITDA of $408 million in the last twelve months and a healthy current ratio of 1.37, indicating strong operational efficiency.

MAC Copper describes itself as a company focused on operating and acquiring metals and mining businesses in stable jurisdictions that are critical to the global electrification and decarbonization economy.