Scotiabank Downgrades MAC Cooper (MTAL) to Sector Perform

Scotiabank analyst Eric Winmill downgraded MAC Cooper (NYSE: MTAL) from Sector Outperform to Sector Perform with a price target of $13.00.

The analyst comments "OUR TAKE: Positive. MAC Copper announced it has entered into a binding agreement with Harmony Gold (HAR-JSE; Not Covered) that will result in the acquisition of MTAL in an all-cash transaction, subject to approvals noted below. MTAL shareholders will receive cash of $12.25/sh, implying an equity value of ~$1.03B, representing a ~21% premium based on MTAL's closing price and ~32% premium to 30-day VWAP on May 23. The Scheme is subject to limited conditions, and it is not subject to any financing or due diligence conditions by Harmony. A shareholder meeting is planned in Q4/2025 with the transaction planned to close shorly thereafter. Several key shareholders (with combined holding of 20.1%), and board of directors have voted in support of the deal. We view this deal as positive for MTAL shares as the transaction represents a premium to the current share price and provides a liquidity event for shareholders. We see this transaction reinforcing a current industry theme whereby gold companies are increasingly looking to increase copper exposure. While the deal provides a shareholder cash exit, with limited upside to our $13PT, our rating moves to SP (from SO)."

For an analyst ratings summary and ratings history on MAC Cooper click here. For more ratings news on MAC Cooper click here.

Shares of MAC Cooper closed at $10.15 yesterday.

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