Harmony Gold diversifies into copper with MAC Copper acquisition

Harmony Gold's Doornkop Mine. Harmony Gold is diversifying into copper after completing a transaction for the acquisition of New York listed MAC Copper Limited
Harmony Gold is diversifying into copper after completing a transaction for the acquisition of New York listed MAC Copper Limited, which controls CSA Copper mine in Australia for about $1 billion (R17.9bn).
Copper, deemed a future proofing mineral, has been the center of merger and acquisition activity among South African and global miners.
The South African gold miner said Tuesday that it had entered into a binding agreement to acquire 100% of the securities in MAC Copper Limited for $12.25 per share. This implied a total equity value for MAC of $1.03bn or about R18.4bn.
'The acquisition of the CSA Copper Mine in Australia is significant as it introduces a high-quality, established underground producing copper asset to the Harmony portfolio. CSA is one of the highest-grade copper mines in Australia, producing 41kt of copper in calendar year 2024,' said Harmony Gold CEO Beyers Nel.
He described the Australian mine Harmony Gold was acquiring as 'a logical fit with the portfolio' as it meets the company's 'core investment criteria, including increasing free cash flow generation while improving margins at long-term expected commodity' prices.
'We believe that Harmony is well positioned to leverage its expertise in underground mining to further enhance operations. Furthermore, the Transaction represents a significant step forward in transforming Harmony into an increasingly de-risked, higher-quality, global gold and copper producer through disciplined and effective capital allocation,' added Nel.
Earlier this year, Nel said the operating environment in South Africa has started to stabilise, helping the company to lift up earnings for the half year to December although analysts had varying evaluations of the gold miner's diversification strategy into copper.
In the half year to December, Harmony Gold raised revenues by 19% to R35.45 billion, with net profits for the period jumping 33% to R7.93bn and headline earnings per share also soaring by 33% to 1 270 SA cents. View: www.businessreport
BUSINESS REPORT

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

The Citizen

an hour ago

• The Citizen

Navigating economic headwinds of grey list and US tariffs

While South Africa might finally see the end of being on the grey list, the country still faces the US tariffs that could be 30% again. While the world watches various wars and conflicts play out that can affect economies worldwide, including our own, South Africa must also complete its work to get off the grey list and plan and negotiate to manage the US tariffs scheduled to kick in on 9 July. Busisiwe Mavuso, CEO of Business Leadership South Africa (BLSA), says in her weekly newsletter that South Africa's completion of all the Financial Action Task Force (FATF) requirements is a significant achievement for the country's economy. 'I congratulate National Treasury for orchestrating a complex, multi-agency effort that fundamentally strengthened our anti-money laundering and counter-terrorism financing frameworks. 'The final hurdle, to demonstrate sustained improvements in investigation and prosecution capabilities, required rebuilding capacity across our entire criminal justice system, from police units to the National Prosecuting Authority. 'We now have a clear trajectory toward exiting the FATF grey list in October, pending the required on-the-ground peer review.' ALSO READ: South Africa well on its way to get off FATF grey list Grey list costs the economy but can soon be over Mavuso says this progress cannot come soon enough, as grey listing imposed crushing costs on South Africa's economy due to the fact that international financial institutions must apply enhanced due diligence to every South African transaction, a burden many simply avoid by severing relationships with our companies entirely. 'BLSA sounded the alarm about impending grey listing six months before it happened, commissioning a report that analysed the potential economic costs. Throughout this process, business stood ready to support government in meeting FATF requirements, and there have been various joint projects to do so. 'The improvements achieved since February 2023 extend far beyond FATF compliance. We now have comprehensive beneficial ownership registers for companies and trusts, while investigators can finally use the Financial Intelligence Centre's vast data reserves to build prosecutable cases. 'Our law enforcement agencies have also been integrated into global networks combating transnational crime. Let's be clear: Grey listing was state capture's direct legacy. The systematic gutting of our criminal justice system, from crime intelligence to the NPA, created a paradise for white-collar criminals. 'Skilled investigators were purged, replaced by political appointees whose job was protection, not prosecution. The probability of facing consequences for economic crimes became negligible.' ALSO READ: Financial Intelligence Centre: Lawyers and estate agents keeping SA on grey list Treasury reversed institutional decay to get SA off grey list Mavuso points out that the National Treasury's remediation process started to reverse this institutional decay, with important economic implications. 'As I consistently argued, the collapse of the rule of law devastates economic growth. Contracts become unenforceable. Businesses shoulder massive fraud and corruption costs. Criminal syndicates flourish, spawning extortion networks that strangle legitimate enterprise.' Although critical steps remain before October's official exit, Mauvo says prospects are now excellent. 'Removing this economic headwind will provide crucial momentum for growth. Given the challenges we face, we need every advantage we can get.' ALSO READ: Tariffs and Agoa: How Parks Tau summarised US-SA trade talks US tariffs of 30% looming on 9 July However, she says, with this good news, there are also other challenges waiting for the South African economy, and in particular, the significant headwind from Washington that demands urgent attention. 'The current 10% US tariff on South African goods expires on 9 July, reverting to a punitive 30% unless we can secure an extension.' Trade, industry, and competition minister Parks Tau will meet with US officials this week at the US-Africa Summit in Angola, a meeting that could determine our economic trajectory. However, Mavuso says progress has been disappointing since President Trump and President Ramaphosa's Washington discussions, during which South Africa tabled proposals, including mineral access and potential US liquified natural gas acquisitions. 'The US did not give formal feedback, and the clock is ticking. The minister and his team must break the logjam. The broader geopolitical context makes this moment even more critical. China's recent announcement of duty-free access for all African nations with diplomatic ties will not have gone unnoticed in Washington. 'We may be witnessing a fundamental shift in Africa's global orientation, one that could permanently damage American interests on the continent.' ALSO READ: Trump tariffs' seesaw impact on Southern Africa SA cannot afford to lose employment-intensive industries due to US tariffs She says this matters profoundly for two reasons. 'Africa remains a crucial source of critical minerals essential to the American economy, while our continent's young, growing population positions Africa as a key long-term consumer market and manufacturing hub. America risks ceding this strategic advantage to China.' Mavuso believes that South Africa must present a materially different proposition that clearly serves American interests as well as our own. 'In this transactional environment, incremental gestures will not suffice. Business has a vital role here. 'Our daily interactions with American customers and suppliers provide direct insight into genuine opportunities and risks. This intelligence must inform our negotiating strategy. The consequences of failure fall hardest on manufacturing and agriculture, sectors that drive employment. 'Raw material exports remain exempt, but value-added activities that create jobs face significant disruption under 30% tariffs. We cannot afford to lose these employment-intensive industries.' She emphasises that this week's meetings will be defining. 'We need a deal that recognises economic realities while serving mutual interests. The stakes are high.'

IOL News

an hour ago

• IOL News

Middle East tensions could see an increase in SA fuel prices

South African motorists may have to dig deeper into their pockets in July, as another potential fuel price hike looms. Image: Newspress South African motorists may have to dig deeper into their pockets in July, as another potential fuel price hike looms. According to mid-June data from the Central Energy Fund (CEF), Petrol 95 is under-recovering by about 47 cents per litre, and Petrol 93 by around 43 cents. Diesel prices are showing larger under-recoveries of approximately 69 and 71 cents per litre for the two types respectively. Illuminating paraffin is also under-recovering by roughly 57 cents per litre. An under-recovery occurs when fuel levies do not fully cover the rising global oil prices and currency fluctuations, resulting in higher pump prices to compensate for the shortfall. These are only projections based on mid-month data and not final figures. The Department of Mineral Resources and Energy will confirm the official prices just before they take effect in July. The situation is a result of a sharp jump in Brent crude prices because of the ongoing conflict in the Middle East between Israel and Iran. The conflict began last week when Israel launched strikes against Iran, targeting its nuclear and military facilities. These strikes resulted in the deaths of the head of Iran's Revolutionary Guards and several top nuclear scientists. The situation was made worse when the US joined the war by launching an attack on Iranian nuclear sites with US President Donald Trump saying they had "totally obliterated" Iran's main nuclear sites. "Tonight, I can report to the world that the strikes were a spectacular military success," Trump said. According to Oxford Economics since the war began Brent crude oil prices spiked by over 10%. Oxford Economics is a "leading global economic advisory firm, providing data-driven insights and forecasts". "The Brent crude oil price spiked by over 10% as the conflict started and remains elevated in the $70-$78 per barrel range at the time of writing, well above pre-escalation levels. "The most severe scenario is a closure of the Strait of Hormuz. Around one-third of all seaborne oil passes through this chokepoint, and a shutdown would freeze oil exports from Kuwait and Qatar, and restrict exports from Iraq, the UAE, Oman, and Saudi Arabia". [email protected] IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel

The South African

2 hours ago

• The South African

Kaizer Chiefs close in on R5m defender: One obstacle remains

Kaizer Chiefs look set to pull off a major coup in the local transfer market by edging closer to securing the signature of 21-year-old Ime Okon. However, SuperSport United's hefty development compensation fee of over R5 million threatens to derail the deal. Despite Orlando Pirates and Mamelodi Sundowns also expressing interest in the promising defender, Chiefs have emerged as the clear frontrunners. SuperSport United may have allowed Okon's contract to expire on 30 June, but the club retains the right to claim development compensation, a clause that has now become a stumbling block for Amakhosi. 'At the moment it's believed that personal terms have been agreed but there is a fee that Chiefs apparently have to pay to SuperSport United. It's like a compensation fee and it's believed to be around R5 million. A fee because he is a development player and the mother team has to benefit from him. It's not a transfer fee. No, it's not,' a source revealed. This demand comes as no surprise considering Okon rose through SuperSport's development system, making him eligible for compensation under current regulations. Chiefs remain determined to complete the signing before they fly out for their pre-season training camp in the Netherlands. The club wants Okon integrated into the squad as soon as possible, highlighting how highly they rate the defender. By bringing Okon on board, Chiefs would not only beat both Pirates and Sundowns to his signature but also fill a key gap in their backline. An area identified by the technical team as needing reinforcement. With multiple clubs circling and the Dutch tour fast approaching, Amakhosi must act swiftly to finalise terms and satisfy SuperSport's demands. If the Glamour Boys manage to seal the deal, they will have pulled off one of the most strategic signings of the window, a powerful signal of intent as they rebuild their squad for the new season. Will Okon make a difference at Kaizer Chiefs? Let us know by leaving a comment below or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X, and Bluesky for the latest news.