REG - ACG Metals Ltd. - Q4 2024 Operations Update

ACG MetalsAnnouncement

12/02/2025 07:15

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RNS Number : 8294W  ACG Metals Limited  12 February 2025

12 February 2025

 

ACG Metals

ACG METALS LIMITED

("ACG" or the "Company")

Q4 2024 Operations Update

 

Strong operational performance and on track for Gediktepe Sulphide expansion

ACG Metals Limited is pleased to announce its operations update for the fourth
quarter of 2024 ("Q4 2024" or the "Quarter") and the full 2024 financial year
("FY2024" or the "Period").

The Gediktepe Mine delivered strong operational performance achieving a 49%
increase in Gold Equivalent production yielding 57koz of Gold Equivalent
sales, while maintaining cost discipline in decreasing AISC by 2%, keeping it
below $1,150/oz and benefitting from a 22% increase in realized metal prices.

The Company successfully completed key milestones, including a full LTI-free
year, re-admission to the London Stock Exchange following the acquisition of
the Gediktepe Mine, the signing of a $146m EPC contract with GAP İNŞAAT and
a $200m four-year senior secured bond placement to fully fund and advance the
Gediktepe sulphide expansion project.

Q4 2024 Highlights

·    The average grade of ore was significantly higher compared to the
fourth quarter of last year at 3.6 g/t for Gold (51% increase vs Q4 2023) and
83.3 g/t for Silver (45% increase vs Q4 2023).

·    225,861 tonnes of ore were processed in Q4 2024 which is in-line with
the life of mine plan (- 20% vs Q4 2023).

·    Gediktepe produced 13,097oz of Gold and 215,660oz of Silver resulting
in 15,651oz of Gold Equivalent for the Quarter.

·    Quarterly average realised prices for Gold ($2,667/oz) and Silver
($32/oz) have improved by 35% and 36% respectively.

·    C1 costs remained within the budget at $572 per ounce representing an
increase of 57%, with all-in sustaining costs of $1,108 per ounce representing
an increase of 44% compared to Q4 2023.

 

FY2024 Highlights

·    Gediktepe Mine achieved 634 LTI-free days or 1,905,841 LTI-free
man-hours.

·    As per the mine plan, historical operations have consistently
followed a seasonal pattern: pre-stripping in Q1, mining of lower-grade,
higher areas in Q2, and full oxide production ramping up in Q3 and Q4. This
was the case in 2024 and will remain so in 2025.

·    The Gediktepe Mine mined 713,181 tonnes of ore, a decrease of 8% from
last year. The average grade of Gold (2.17g/t) decreased by 4% from last year
and Silver (62.4g/t) increased by 7%.

·    18% more tonnes were processed compared to last year, totaling
801,600 tonnes, as stockpile inventory was strategically managed and drawn
down to take advantage of favorable pricing conditions.

·    Gediktepe produced 46,993oz of Gold and 709,380oz of Silver yielding
55,374oz of Gold Equivalent for 2024. This is a 49% increase in Gold
Equivalent production year-on-year. Realised Gold and Silver prices have
improved by 22% year-on-year to $2,387/oz and $29/oz respectively.

·    C1 costs remained within the budget at $606 per ounce, with all-in
sustaining costs of $1,139 per ounce representing a 4% and 2% decrease for the
year respectively.

Artem Volynets, Chairman and CEO of ACG, said:

"2024 has been a transformative year for ACG Metals, marked by strong
operational performance and strategic advancements. The Gediktepe Mine
continues to deliver solid results, maintaining a stellar safety record while
outpacing last year's production by nearly 50%. Our landmark EPC contract with
GAP İNŞAAT will enable the transition to sulphide ore processing, unlocking
long-term copper production potential and establishing our position in the
copper sector.

Financially, our successful US$200 million bond placement in December
underscores investor confidence in our strategy, providing the capital needed
to execute our growth plans.

Our focus in 2025 remains on operational excellence, the completion of the
sulphide expansion project and execution of identified value-accretive
opportunities in the copper space. With strong momentum, ACG Metals is
well-positioned to deliver sustainable shareholder value and play a vital role
in the global copper supply chain."

Q4 2024 Operating Summary

                                         Q4 2024  vs Q4 2023

 Total Ore Mined               t         191,664         -42%      Mining
 Au Grade                      g/t       3.62            51%
 Ag Grade                      g/t       83.58           45%

 Total Ore Processed           t         225,861         -20%      Process
 Au Grade                      g/t       3.86            56%
 Ag Grade                      g/t       89.69           56%

 Au                            oz        13,097          -21%      Production
 Ag                            oz        215,660         42%
 AuEq                          oz        15,651          -15%

 Au                            oz        13,669          -8%       Sales
 Ag                            oz        204,013         43%
 AuEq                          oz        16,090          -4%

 Au                            $/oz      2,666.90        35%       Realised Price
 Ag                            $/oz      31.66           36%

 C1 Cash Costs (produced)      $/oz      571.65          57%       Cost
 AISC (sold)                   $/oz      1,108.27        44%

 

 

FY 2024 Operating Summary

                                         2024   vs 2023

 Total Ore Mined               t         713,181       -8%   Mining
 Au Grade                      g/t       2.17          -4%
 Ag Grade                      g/t       62.41         7%

 Total Ore Processed           t         801,600       18%   Process
 Au Grade                      g/t       2.53          11%
 Ag Grade                      g/t       71.84         24%

 Au                            oz        46,993        43%   Production
 Ag                            oz        709,380       107%
 AuEq                          oz        55,374        49%

 Au                            oz        49,165        49%   Sales
 Ag                            oz        670,130       85%
 AuEq                          oz        57,072        52%

 Au                            $/oz      2,386.73      22%   Realised Price
 Ag                            $/oz      28.56         22%

 C1 Cash Costs (produced)      $/oz      606.43        -4%   Cost
 AISC (sold)                   $/oz      1,139.39      -2%

 

 

Safety And Sustainability

 

The Company's strong safety performance was maintained in 2024, with
operations continuing fatality-free and without lost-time injuries (LTIs).

Gediktepe has now achieved 634 LTI-free days and 1,905,841 LTI-free man-hours.
This figure is a reflection of the whole team's efforts to maintain the
highest standards of safety and operational excellence at the mine.

Sulphide Expansion Project

Following the signing of the $146m fixed price, EPC contract with GAP
İNŞAAT, ACG was pleased to announce on 20(th) December 2024 that it
completed the placement of USD 200 million of new four-year, senior secured
bonds with a coupon rate of 14.75 percent at par to fully fund the Sulphide
expansion project and for general corporate purposes.

Currently, earthworks have commenced, geotechnical drilling has been completed
and camp construction is well advanced.

Given ACG's strong cash flow generation from its existing operations and fixed
price turnkey EPC contract for the Sulphide expansion project, the Company is
expected to maintain a strong financial position and healthy cash balance
throughout the construction period.

 

- ENDS -

The person responsible for the release of this information on behalf of the
Company is Artem Volynets, Chief Executive Officer.

 

For further information please contact:

 

Palatine

 Communications Advisor

Conal Walsh / James Gilheany/ Kelsey Traynor/ Richard Seed

 acg@palatine-media.com (mailto:acg@palatine-media.com)

 

About the Company

 

ACG Metals is a company with a vision to consolidate the copper industry
through a series of roll-up acquisitions, with best-in-class ESG and carbon
footprint characteristics.

 

In September 2024, ACG successfully completed the acquisition of the Gediktepe
Mine which is expected to transition to primary copper and zinc production
from 2026 and will target annual steady-state copper equivalent production of
20-25 kt.

 

ACG's team has extensive M&A experience built through decades spent at
blue-chip multinationals in the sector. The team brings a significant network
as well as a commitment to ESG principles and strong corporate governance.

 

For more information about ACG, please visit: www.acgmetals.com
(http://www.acgmetals.com)

 

 

 

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