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Harmony Gold has secured a multicurrency funding package worth more than R20bn to back its copper-focused growth strategy and refinance its acquisition of MAC Copper.The package includes loan facilities of $500m, A$500m and R7bn, which will be used to refinance the MAC Copper acquisition bridge facility, as well as existing dollar and rand syndicated facilities entered into in 2022, the company said on Tuesday.Harmony’s $1bn acquisition of MAC Copper last year gave it control and full ownership of the CSA copper mine in Australia, an asset that is expected to add 17,500-18,500 tonnes of copper to the group’s upcoming annual results.(Dorothy Kgosi) The miner, South Africa’s largest gold producer by volume, has long set its sights on copper as a tool to diversify away from gold and hedge against a downturn in gold prices.In a statement on Tuesday, it told investors that securing Australian dollar-denominated funding indicates the “evolution of its asset portfolio”.“As the group builds a meaningful Australian copper business alongside its South African gold operations, this funding structure improves financial flexibility, enhances the alignment between funding sources and underlying assets, and supports the disciplined execution of Harmony’s long-term growth strategy.”The funding package also includes four sustainability-linked loans, which will reward the miner for increasing its installed renewable energy capacity, reducing potable water consumption from external sources and spending more on community development.These metrics will act as key performance indicators which, if met, cut Harmony’s margin by up to 5 basis points. If not met, their margin will increase by the same amount.As these sustainability-linked loans have an original term to maturity of three years and include two one-year extension options, they could be extended by two years.Harmony CEO Beyers Nel said the transaction “extends our maturity profile and provides funding capacity in the currencies most relevant to our growth pipeline”.“This ensures that our balance sheet remains well-positioned to support disciplined investment in our strategic growth objectives while creating sustainable value for our stakeholders,” said Nel.Earlier this month, Harmony said it was on track to meet production and cost guidance for the year to end-June, with output forecast at 1.4-1.5-million ounces. The miner will publish its latest annual results in just less than a month.
