REG - ACG Metals Ltd. - H1 2025 Operations and Capital Structure Update

ACG MetalsAnnouncement

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RNS Number : 0905R  ACG Metals Limited  15 July 2025

15 July 2025

 

ACG METALS LIMITED

("ACG" or the "Company")

H1 2025 Operations and Capital Structure Update

 

Safety Record, Production Guidance Increase, Expansion Progress and Bond
Milestones

ACG Metals Limited (LSE:ACG) is pleased to announce its operations and capital
structure update for the first half of 2025 ("H1 2025").

Artem Volynets (Chairman and CEO) and Patrick Henze (CFO) will provide a live
presentation via Investor Meet Company on 22 July 2025, 13:00 BST. To attend,
investors can join via this link:
https://www.investormeetcompany.com/acg-metals-limited/register-investor
(https://www.investormeetcompany.com/acg-metals-limited/register-investor)

H1 2025 Summary

·    FY2025 production guidance has been upgraded from 30-33koz to
36-38koz AuEq, driven by strong operational improvements, including higher
gold and silver recoveries.

·    Robust safety and operational integrity with a new extended record of
817 LTI-free days as of the end of June 2025.

·    Gediktepe Mine maintained a strong operational performance compared
to H1 2024, achieving a 3% increase in Gold Equivalent production, yielding 23
koz of Gold Equivalent sales.

·    Cost discipline decreased AISC by 13% to $1,060 oz from $1,218/oz in
H1 2024.

·    Realised gold price for H1 2025 of $2,950/oz, a 37% increase over H1
2024.

·    Payment of first scheduled coupon payment in respect of USD
200,000,000 Senior Secured Bond due 2029 (the "Bonds") on 13 July and full
repayment of outstanding sponsor loans, marking a key milestone in
strengthening the group's capital markets performance.

·    Gediktepe Sulphide Expansion Project also continued to advance on
schedule and on budget, completing 48% of engineering design and draft, 36% of
procurement deliveries and 15% of construction with early works completed and
construction underway.

Artem Volynets, Chairman and CEO of ACG, said:

"Our ability to deliver steady production and a significant increase in
recoveries in H1 2025 reflects the strength of our team and continued focus on
operational improvements.

We've built strong momentum through H1 2025, delivering robust operational
results, maintaining our leading safety record, and advancing the Gediktepe
Sulphide Expansion Project on time and on budget. The approx. 17% increase in
production guidance for the year is a testimony to the commitment and
excellence of our team.

I'm also pleased to welcome Peter Carter, our newly appointed Chief Operating
Officer, whose deep industry experience will further support our transition
into a long-life, low-cost copper-gold producer."

H1 2025 Operational Highlights

·    Robust safety and operational integrity with a new extended record of
817 LTI-free days reached as of the end of June 2025.

·    Consistent H1 2025 output achieved through faster utilisation of
existing stockpiles with adjusted reagent mix, ahead of the company's
operational plan.

·    Waste removal to release oxide ore for heap leach processing is
progressing to feed the plant in the second half of this year.

·    Pre-stripping of the sulphide pit was conducted in H1 to prepare the
sulphide plant for the start of commissioning in Q1 2026.

·    Gediktepe produced 18,208oz of Gold and 373,697oz of Silver,
resulting in the production of 22,263oz of Gold Equivalent and sales of
23,021oz of Gold Equivalent in H1 2025.

·    H1 2025 average realised prices were $2,950/oz for Gold (inclusive of
hedging effects) and $32/oz for Silver, representing increases of 37% and 27%
respectively compared to H1 2024.

·    H1 costs remained within budget at $366 per ounce, down 49%, with
all-in sustaining costs of $1,060 per ounce, a 13% decrease versus H1 2024,
and both metrics remain below budget.

 

H1 2025 Operating Summary

                                 H1 2025  vs H1 2024

 Total Ore Mined           t     4,343    -99%        Mining
 Au Grade                  g/t   0.14     -91%
 Ag Grade                  g/t   113      103%

 Total Ore Processed       t     7,432    -97%        Process
 Au Grade                  g/t   0.80     -57%
 Ag Grade                  g/t   141      154%

 Au                        oz    18,208   -2%         Production
 Ag                        oz    373,697  38%
 AuEq                      oz    22,263   3%

 Au                        oz    19,162   -11%        Sales
 Ag                        oz    356,263  32%
 AuEq                      oz    23,021   -7%

 Au                        $/oz  2,950    37%         Realised Price
 Ag                        $/oz  32       27%

 C1 Cash Costs (produced)  $/oz  366      -49%        Cost
 AISC (sold)               $/oz  1,060    -13%

Sulphide Expansion Project Moving Forward at Pace

·    The Gediktepe Copper Sulphide Expansion Project continues to progress
in line with plan and budget. Key site and construction milestones achieved,
including completion of earthworks for contractor areas and the start of
Heating Centre construction for the GAP Blue Collar camp.

·    All long-lead items, including the flotation and thickener tanks,
have been ordered with upfront payments completed.

·    Major contracts awarded for structural, mechanical, electrical and
power line relocation, with 2,100m³ of concrete poured to date.

·    Excavation work at the plant site is progressing well, completing 74%
of plant site earthworks.

·    As at 30 June 2025, the project remains well within its project
schedule milestones, completing 48% of engineering design and draft, 36% of
procurement and 15% of construction.

·    The Sulphide Expansion Project remains on track for commissioning in
Q1 2026, reinforcing Gediktepe's transition into a long-life, low-cost copper
producer.

·    Major construction and equipment installation will ramp up through
the second half of 2025, including key infrastructure and utilities such as
prefabricated buildings, electrical systems, and process water treatment
plant.

Bond Update

The Company issued the Bonds in January 2025 and has since executed four
drawdowns from the escrow account in which the bond proceeds are held
(amounting to $108 million in total) to fund repayment of the debt facility
advanced by Traxys Europe and Argentem Creek Partners to fund the acquisition
of the Gediktepe Mine and the Sulphide Expansion Project.

The Bonds were successfully listed on Nordic ABM in June 2025 (Bond ISIN:
NO0013414565), fulfilling the relevant requirements under the bond covenants
and enhancing secondary market liquidity for investors. The listing of the
Bonds reflects the Company's ongoing commitment to investor transparency and
strong corporate governance.

ACG made the first scheduled coupon payment in respect of the Bonds on 13 July
2025 and remains in compliance with its other obligations under the Bond
documents.

 Capital Structure Update

As of the end of June, 30, 2025, the sponsor loans advanced to the Company
prior to the Gediktepe acquisition have also been fully repaid ahead of the
scheduled October 2025 maturity.

ACG's net debt as of July 13, 2025 was $66 million and a cash balance of $133
million.

Execution of Gold Hedging Strategy

ACG's structured collar hedging strategy did not significantly affect realised
prices but continued to provide effective downside protection while preserving
exposure to upside in the gold price.

 

- ENDS -

Inside information

 

The information contained within this announcement is considered by the
Company to constitute inside information as stipulated under the Market Abuse
Regulation (EU) No.596/2014 (as it forms part of UK domestic law by virtue of
the European Union (Withdrawal) Act 2018). On the publication of this
announcement via a Regulatory Information Service, such information is now
considered to be in the public domain.

 

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

 

Forward looking statements

 

This announcement may contain certain "forward-looking information" and
"forward-looking statements" (collectively, "forward-looking statements").
Forward-looking statements are identified by their use of terms and phrases
such as "believe", "targets", "expects", "aim", "anticipate", "project",
"would", "could", "envisage", "estimate", "intend", "may", "plan", "will" or
the negative of those, variations or comparable expressions, including
references to assumptions. The forward-looking statements in this announcement
are based on current expectations and are subject to known and unknown risks
and uncertainties that could cause actual results, performance and
achievements to differ materially from any results, performance or
achievements expressed or implied by such forward-looking statements. Factors
that may cause actual results to differ materially from those expressed or
implied by such forward looking statements. These forward-looking statements
are based on numerous assumptions regarding the present and future business
strategies of the Group and the environment in which it is and will operate in
the future. All subsequent oral or written forward-looking statements
attributed to the Company or any persons acting on its behalf are expressly
qualified in their entirety by the cautionary statement above. Each
forward-looking statement speaks only as of the date of this announcement.
Except as required by applicable law, regulatory requirement, the UK Listing
Rules and the Disclosure Guidance and Transparency Rules, neither the Company
nor any other party intends to update or revise these forward-looking
statements, whether as a result of new information, future events or
otherwise.

 

 

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)

 

Berenberg

Research Analysts

William Dalby +44 (0) 20 3753 3243

Richard Hatch +44 (0) 20 3753 3070

Cody Hayden +44 (0) 20 3753 3133

 

Joint Broker

Jennifer Lee / Natasha Ninkov

+44 (0) 20 3207 7800

 

Canaccord

Research Analysts

Tim Huff +44 (0) 20 7523 8374
 

Alex Bedwany +44 (0) 20 7523 8387

 

Joint Broker

James Asensio / Charlie Hammond

+ 44 (0) 20 7523 80

 

Stifel

Research Analysts

Andrew Breichmanas +44 (0) 20 3465 1110

 

Joint Broker

Ashton Clanfield / Varun Talwar

+44 (0) 20 7710 7600

 

 

 

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. Gediktepe produced 55koz of AuEq in 2024.

 

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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