ACG Acquisition Nears Copper-Zinc Pivot as Gediktepe Flotation Plant Targets August Output

Key Points

• ACG Acquisition is nearing a major operational shift at its Gediktepe mine in western Turkey, with the new flotation plant for copper and zinc concentrate now in commissioning and first production targeted by the end of August.
• Management said the company’s 2026 guidance is 20,000 to 22,000 tonnes of copper equivalent, while the mine’s oxide output has already exceeded full-year guidance in H1 due to better recoveries and improved processing technology.
• Looking ahead, ACG sees the sulfide plant and future copper-zinc output as key to improving liquidity, debt metrics and refinancing options, with management also signaling potential dividends once restrictive bonds are refinanced.

ACG Acquisition LON: ACG management said the company is in the final stages of shifting its Gediktepe operation in western Turkey from gold and silver doré production to copper and zinc concentrate production, with first production from its new flotation facility targeted by the end of the summer.

During the H1 2026 operations results investor presentation, Artem Volynets, chair and CEO of ACG Metals, said the company’s recent reported revenue and adjusted EBITDA reflected its legacy production of gold and silver doré. Going forward, he said ACG’s guidance for the year is 20,000 to 22,000 tonnes of copper equivalent, including ongoing gold and silver production from oxide material.

Volynets said the company remains constructive on copper demand, citing growth from sectors including artificial intelligence, data centers, robotics, electric vehicles and defense. He added that ACG’s internal assumptions are based on consensus price forecasts rather than spot prices.

Gediktepe transition moves toward commissioning

ACG’s starter asset is a producing mine in western Turkey, about a three-hour drive from the Izmir Port. Volynets described it as a high-grade, mainly polymetallic deposit with a copper equivalent grade of 2.3%.

Patrick Henze, CFO of ACG Metals, said the ore body consists of three main areas: oxide, sulfide and an enriched ore stockpile. The oxide portion, which has been mined since 2022, is now nearing its end, with first-half 2026 activity focused on processing stockpiled material created in 2025. The sulfide portion is expected to drive the mine’s future production over the next several decades, supported by the new flotation plant.

Graeme Rapley, vice president of projects, said construction of the sulfide plant was 87% complete when the presentation materials were prepared and had advanced further since then. He said the company began the first phase of commissioning at 9 a.m. Turkish time on the day of the presentation, starting with punch listing for the primary crusher building and related equipment through to the conveyors, fine ore bin, SAG mill and ball mill.

Rapley said punch listing includes checks of electrical terminations, safety equipment, handrails, steps and bolt tightness before the plant moves into cold commissioning. He said the company is targeting first production by the end of August.

Oxide output exceeds full-year guidance

Henze said ACG had already exceeded its full-year oxide guidance in the first half of 2026, driven mainly by recovery improvements. He said additional gold and silver production is expected from the oxide project by year-end, providing revenue that had not been included in prior expectations.

Management attributed the improved recoveries to operational efficiencies and a technology designed to reduce cyanide consumption. Henze said the technology is more environmentally friendly and less expensive, and that ACG has received a patent application in Turkey and is pursuing patents in 35 other countries.

In response to an investor question, Volynets said ACG has received inbound inquiries following its announcement of the recovery technology. He said the company is in discussions and will update the market if any commercialization opportunities emerge.

Enriched ore project advances

Management also highlighted progress on the enriched ore project, which Henze said was identified in November 2025 as an economic opportunity from material previously treated as waste.

Rapley said the company was about 24 hours away from finishing the main earthworks for the project, totaling 450,000 cubic meters completed over three weeks. He said geotechnical drilling had begun to confirm ground conditions for the plant foundations, with results to be provided to Turkish designers for the jaw crusher, ball mill and SAG mill foundations.

Rapley said ACG had purchased major equipment for the project, including a SAG mill, ball mill, jaw crusher, gearboxes and electric motors. Henze noted that mills are typically among the longest lead-time items and said ACG is “pretty good on the equipment side.”

Financial position and refinancing outlook

Henze said ACG’s net debt has increased as capital expenditures for the sulfide project were incurred, but management expects liquidity and net debt to improve once copper and zinc concentrate production begins. He said the company has been drawing on its bond proceeds conservatively as the project progressed.

Discussing costs, Henze said the company continues to maintain a tight handle on expenses. He said C1 and all-in sustaining costs are higher than last year because oxide production is declining, reducing the production denominator, while higher gold prices have increased royalty payments to the Turkish government.

Henze said ACG’s bonds continue to trade upward as the first call date in January 2027 approaches. Volynets said refinancing the company’s high-coupon bonds is a key objective, particularly because the company’s yield to maturity is significantly below the current coupon.

During the Q&A, Henze said that assuming a $200 million bond and a conservative $125 million EBITDA projection, ACG would have what he characterized as a healthy debt-to-EBITDA ratio. He said the company has multiple options to reduce, refinance or redistribute debt, depending on market conditions and future business activity.

Management outlines upcoming catalysts

Volynets said the most important catalyst over the next six to nine months is first production from the flotation facility. He also pointed to potential bond refinancing, possible inclusion in additional indexes and increased stock liquidity.

Volynets said any mergers and acquisitions would need to stand on their own financially and described M&A as “a cherry on the cake,” with operational delivery remaining the main priority. He also said that once ACG can refinance bonds with restrictive covenants, it expects to be in a position to begin paying dividends from Gediktepe cash flows.

When asked when the sulfide plant is expected to be fully ramped up, Volynets said the target is by the end of the year.

About ACG Acquisition (LON:ACG)

ACG Metals is a company with a vision to build a global, high-margin, copper-focused producer with safe, efficient, and sustainable operations. 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 39.2koz of AuEq in 2025. ACG's team has extensive M&A experience built through decades spent at blue-chip multinationals in the sector.

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