How Did MAC Copper Achieve Record Production Amid a Challenging Market?
MAC Copper Limited reported a 10% revenue decline but narrowed its net loss by 25% in HY25, achieving record daily copper production and advancing its acquisition by Harmony Gold.
- 10% decrease in HY25 revenue to US$163.2 million
- 25% reduction in net loss after tax to US$76.7 million
- Record daily copper production of 385 tonnes in June 2025
- 19% reduction in C1 cash costs to US$1.67/lb
- Progress on Harmony Gold acquisition with key regulatory approvals pending
Financial Performance and Operational Highlights
MAC Copper Limited has released its half year financial results for the six months ending 30 June 2025, revealing a mixed but largely positive operational and financial performance. Revenue declined by 10% to US$163.2 million compared to the prior corresponding period, primarily due to timing and sequencing of high-grade stopes and a 16% decrease in copper sold. Despite this, the company narrowed its net loss after tax by 25% to US$76.7 million, reflecting improved cost control and operational efficiencies.
Underlying EBITDA fell 10% to US$81.2 million, while operational cash flow increased 18% to approximately US$65 million, underscoring stronger cash generation despite lower revenue. The company reported no dividends for the period, maintaining a focus on reinvestment and balance sheet strength.
Record Production and Cost Reductions
Operationally, MAC Copper achieved record daily copper production under its ownership, hitting 385 tonnes in June 2025. Total copper production for the half year was 19,231 tonnes at an improved average grade of 4.3%, a 13% increase from the previous year. This higher grade contributed to a significant 19% reduction in C1 cash costs to US$1.67 per pound, with June 2025 setting a new record low of US$0.94 per pound. Total cash costs also decreased by 20% to US$2.30 per pound, highlighting the low-cost nature of the CSA Copper Mine.
Balance Sheet Strength and Refinancing
MAC strengthened its financial position through a successful refinancing completed in March 2025, which increased liquidity and reduced the average weighted cost of debt by approximately 30% to around 6.85%. The company ended the half year with US$102 million in cash and pro-forma liquidity of US$196 million, including undrawn revolving facilities and strategic investments. Notably, the company repaid its mezzanine debt facility in full during the period, further improving its debt profile.
Strategic Growth and Harmony Transaction Update
MAC is advancing two key growth projects to boost copper production beyond 50,000 tonnes per annum by 2026. The Merrin Mine development is progressing well, with 740 metres of underground capital development completed and first ore expected by Q4 2025. The ventilation upgrade project remains on track for completion by Q3 2026, critical for sustaining increased mining activity.
On the corporate front, MAC is moving forward with its proposed acquisition by Harmony Gold Mining Company Limited. The transaction is subject to shareholder and regulatory approvals, with key meetings scheduled for late August 2025. Harmony has secured necessary regulatory clearances, including from the South African Reserve Bank and the Australian Federal Treasurer, clearing significant hurdles for the deal’s completion.
Contingent Consideration and Safety Improvements
Following the period end, the first contingent payment of US$75 million to Glencore was triggered based on copper price thresholds but is deferred until June 2026, in line with contractual terms. Safety performance also improved markedly, with the Total Recordable Injury Frequency Rate (TRIFR) dropping to 6.9, well below industry averages, reflecting MAC’s ongoing commitment to workplace safety.
Bottom Line?
MAC Copper’s operational momentum and strategic deal progress set the stage for a pivotal year ahead as it targets production growth and transaction completion.
Questions in the middle?
- Will the Harmony acquisition close on schedule and under what terms?
- How will copper price volatility impact MAC’s contingent liabilities and future earnings?
- What are the risks and timelines associated with the Merrin Mine and ventilation projects?