Harmony Gold unveils $1.03bn bid for Australia’s MAC Copper
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HARMONY Gold has extended its reach into copper production unveiling today a $1.03bn (R18.4bn) bid for Australia’s MAC Copper, a New York listed company which operates the 41,000 ton a year CSA copper mine in New South Wales.Combined with Eva Copper, a Australian project Harmony hopes to approve and develop, the South African gold miner will have up to 100,000 tons of copper concentrate production annually within the next five years.“CSA is one of the highest-grade copper mines in Australia,” said Beyers Nel, CEO of Harmony Gold in a statement on Tuesday. He said the transaction represented “a significant step forward in transforming Harmony”.Harmony’s offer represents a 20.7% premium to MAC’s closing share price on May 23 of $10.15/share and a 32.1% premium to the firm’s 30-day VWAP of $9.28/share.About 22.5% of MAC Copper’s shareholders support the transaction including management owning 2.2% who have recommended investors take up the offer in the absence of a higher offer. Shareholders will vote on the transaction in December.Harmony said it would finance the transaction using a $1.25bn bridge facility and existing cash resources. As of end-March, Harmony had net cash of R10.83bn and R20.85bn including undrawn facilities. If the proposed transaction succeeds, Harmony’s would have net debt to Ebitda ratio of 0.5x based on its 2024 year-end.MAC has cash and cash equivalents of $75m but total net debt of $150m as of March 31. It also has a host of obligations for which Harmony will take responsibility. These include a 1.5% net smelter return to Glencore’s Australian subsidiary and both a copper and silver purchase agreement with Osisko, a Canadian company.In addition, MAC has contingent payments of $150m to Glencore. These are triggered if the copper price exceeds $4.25 per pound for an unbroken 18 months ($75m), and a further $75m is payable to Glencore if the copper price is $4.50/lb or more for two years.The post Harmony Gold unveils $1.03bn bid for Australia’s MAC Copper appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com
Quelle: Mining.com
