Australian copper miner MAC Copper on Thursday posted a sharp rise in second-quarter copper production and reaffirmed its target of surpassing 50 000 t/y of copper equivalent by 2026, while advancing its proposed acquisition by South Africa’s Harmony Gold Mining Company.

Copper production rose 23% quarter-on-quarter to 10 587 t, buoyed by the sequencing of high-grade stopes in the CSA copper mine. The average copper grade during the quarter was 4.4%, with June production reaching a record 5 556 t at 6.2% copper, and a new daily record of 385 t set during the period.

“Our team has again built on the positive momentum achieved on safety with a further reduction in not only the total incidents recorded, but also the severity of these incidents during the quarter,” said CEO Mick McMullen. “TRIFR [total recordable injury frequency rate] reducing to 6.9, down from 9.9 recorded at the end of the first quarter of 2025. This is a remarkable effort considering the disruptive impact the Harmony transaction had on site.”

MAC’s low-cost production credentials were underscored by a record-low C1 cost of $0.94/lb in June, further bolstering the company’s free cash flow. Cash on hand rose to $102-million, a 36% increase quarter-on-quarter, supported by a 71% jump in free cash flow.

MAC is holding firm on its plan to boost production by roughly 23% by 2026, reaching more than 50 000 t/y of copper equivalent. This growth will be powered by two key projects: the Merrin mine, which is now under accelerated development, accounting for 42% of this quarter’s 1 196 m of underground development, and the Capital Vent project, expected on line by the third quarter of 2026.

“We made great progress on delivering on our growth strategy,” McMullen said. “Over 42% of the capital development for the quarter related to the Merrin mine which has the ability to impact our production in the near term.”

MAC also provided an update on the recommended acquisition by Harmony, announced in May, under which Harmony will acquire 100% of MAC via a Jersey law scheme of arrangement.

Key restructuring agreements have now been executed with OR Royalties, formerly Osisko, and Glencore, addressing the copper and silver streams and royalty arrangements. Only a few final steps remain before the consents condition is deemed satisfied, including delivery of legal documents and finalisation of the deed of release on senior debt.

“The teams are working tirelessly on the Harmony transaction to progress the conditions precedent towards closing,” McMullen said. “The transaction presents a great outcome for all stakeholders in the CSA Copper Mine, who will benefit from the stewardship of a well-respected and high-quality operator in Harmony.”

A court directions hearing is scheduled for July 30 in Jersey, as MAC moves toward shareholder votes and regulatory signoffs. The transaction still requires approvals from Australia’s Foreign Investment Review Board, the South African Reserve Bank, and a 75% shareholder vote in favour of the scheme.

“Alongside my fellow directors, I have no hesitation in supporting the Transaction, in the absence of a superior proposal," said McMullen.