ACG Metals beats 2025 guidance and accelerates its copper shift as Gediktepe sulphide expansion stays on schedule

ACG Metals Limited has reported a stronger-than-expected operational finish to 2025 at its Gediktepe mine in Türkiye, beating production guidance and tightening costs—while moving closer to a major strategic milestone: becoming a copper-focused producer as its sulphide expansion project targets commercial production by the end of the first half of 2026.

The update covers both Q4 2025 and the full year, highlighting improved operating efficiency, lower unit cash costs, and steady construction progress on a new sulphide processing circuit designed to transition the mine’s output mix toward copper. It also outlines new 2026 production and cost guidance, providing investors a clearer picture of what the company calls a “transformational” year ahead.

Why this update matters for investors watching ACG’s copper transition

Mining stories can feel repetitive—tonnes mined, grades, recoveries, costs—until you hit a moment where the business model is about to change. ACG’s latest operational report is one of those moments.

In 2025, Gediktepe operated its oxide flowsheet during the first full year under ACG’s ownership. While oxide production is typically associated with precious metals recovery, ACG’s near-term strategy is bigger than “just” gold and silver: the company is building out its sulphide expansion to unlock copper and zinc production from 2026 onward and move toward a steadier copper-equivalent profile.

That’s a notable shift because copper has become a central “enabler metal” for electrification—power grids, renewable buildouts, electric transport, and data center growth all tend to pull copper demand higher over time. Independent energy-transition research and commodity outlooks increasingly frame copper as one of the most strategic industrial metals for the coming decades.

Against that backdrop, operational delivery in the “old” phase (oxide) matters because it helps fund the “new” phase (sulphide copper) and supports balance-sheet stability. ACG’s 2025 outperformance and reported net debt position suggest the company is trying to enter the copper phase from a position of financial control rather than financial stress.

Headline operational result: ACG exceeded 2025 production guidance

ACG said it exceeded 2025 production guidance at Gediktepe, producing 39.2 thousand ounces of gold equivalent (AuEq) in 2025—reported as around 3% above the top end of guidance—while selling 39.5 thousand ounces AuEq during the year.

From a market perspective, beating guidance tends to carry extra weight when it’s paired with cost reductions. Here, ACG pointed to improved operational efficiency and cost controls, which contributed to a reported 18% reduction in C1 cash costs to US$499/oz AuEq.

However, the update also notes that all-in sustaining costs (AISC) increased to US$1,244/oz AuEq from US$1,139/oz year-on-year, with the company attributing the rise to higher gold and silver prices that led to higher royalty payments.

Quick snapshot of key FY 2025 metrics

Metric	FY 2025 (as reported)	Comment
Total AuEq produced	39.2 koz AuEq	Beat guidance (~3% above top end)
C1 cash costs	US$499/oz AuEq	Lower due to efficiency & cost controls
AISC	US$1,244/oz AuEq	Higher royalties linked to stronger metals prices
Net debt (Dec 31, 2025)	US$65m	Company also reported cash balances

All figures above reflect the company’s published operational update.

Understanding the oxide phase: what changed in mining and processing during 2025

ACG’s report provides a detailed operating summary that helps explain how the mine behaved through 2025 as it sequenced its oxide plan and prepared for sulphide expansion.

Mining and processing volumes moved lower—by design

The company reported 351,723 tonnes of total ore mined in 2025, down year-on-year, which it linked to the natural sequencing of the mine and the production plan. Ore processed was reported at 354,472 tonnes, also down year-on-year, with commentary that oxide stockpiles were drawn down ahead of the sulphide build-out.

Grades improved, supporting value per tonne

Despite lower tonnes, ACG reported improvements in average grades in parts of the oxide cycle. In its operating summary, the company listed mining gold grade at 2.26 g/t and silver grade at 75.4 g/t, while processing grades were shown at 2.56 g/t gold and 94.0 g/t silver.

In practical terms, improved grades can help protect margins even when throughput drops—especially if cost controls are tight. That’s consistent with ACG’s emphasis on operational efficiency improvements across the year.

Costs: lower cash costs, but royalty-linked AISC pressure

The update’s cost story has two layers:

• C1 cash costs fell materially (ACG cited stronger efficiency and tighter cost controls).
• AISC moved higher year-on-year, which the company said reflected higher royalty payments driven by increased gold and silver prices.

This distinction matters because C1 cash costs help signal how well the site is being run day-to-day, while AISC captures sustaining capital and broader site-level costs that can shift with external factors like royalties and price-linked charges.

2026 guidance: a “transformational year” anchored by copper-equivalent targets

One of the most market-moving sections of the announcement is the new 2026 guidance. ACG guided to 20–22 thousand tonnes per annum (ktpa) copper equivalent (CuEq) production in 2026.

The company said this guidance includes 17.5 koz AuEq of oxide production that has been stacked and is currently under leach. In other words, the transition year still includes meaningful precious-metal-equivalent contribution, even as the mine shifts toward copper output.

ACG also provided AISC guidance on a copper-equivalent basis, forecasting approximately US$2.40–US$2.60 per pound CuEq for 2026.

Royalty structure change: why EMX matters to near-term economics

In its update, ACG stated that oxide production costs in 2026 are expected to benefit from a reduced royalty rate with EMX Royalty Corporation, described as 2.25% in 2026 versus 10% last year.

For investors, a royalty rate change is not a “small footnote.” Royalties can meaningfully affect margins, especially when metal prices are high. If the company’s stated royalty reduction applies as described, it could help cushion the cost volatility that sometimes shows up in transition years when both operating systems and metal-price-linked payments can move around.

Gediktepe sulphide expansion: construction milestones and schedule confidence

ACG said the Gediktepe Sulphide Expansion Project advanced significantly during 2025 and remains on time and on budget for commercial production by the end of H1 2026, positioning the company to transition into copper production.

The update lists a series of detailed construction milestones that signal tangible progress rather than vague optimism. Highlights included:

• Primary crusher foundations completed and major components installed (including jaw crusher, ROM feed bin, and feeders).
• Ball and SAG mill foundations finalised, with steel erection underway for the mill building.
• Flotation and filter building foundations completed, with tailings storage facility earthworks progressing.
• Delivery of flotation tanks and cells, and substantial structural steel delivered to site.
• SAG and ball mills completed and prepared for factory testing, with lining and delivery scheduled for January 2026.

Engineering and procurement progress metrics

As of 31 December 2025, ACG reported the following overall progress indicators for the sulphide expansion:

• Engineering: 68% complete
• Procurement: 66% complete
• Construction: 37% complete
• Concrete poured: 86%
• Long-lead items delivered: 80%

These metrics were presented by the company as evidence the project remains on track for commercial production by the end of H1 2026.

Enriched ore treatment: an additional copper-equivalent opportunity beyond the main expansion

Beyond the main sulphide expansion, ACG also outlined plans for an Enriched Ore Treatment Project at Gediktepe. The company said the project targets an additional approximately 57kt CuEq from enriched ore and stockpiles over a four-year period.

According to the update, ACG completed a scoping study and basic engineering in Q4 2025. It also stated that permitting, metallurgical test work, and detailed engineering are expected to begin in Q1 2026.

Phased approach with a longer runway

The company described a phased plan:

• Phase 1: commissioning for gold and silver recovery planned for Q4 2026.
• Phase 2: targeted for 2028, expanding recovery to include copper and zinc alongside precious metals.

For investors, this matters because it suggests optionality: even after the sulphide plant is running, ACG is still exploring ways to create value from material already on site. Execution and permitting will be key, but the concept is straightforward—convert “extra” material into extra metal over time.

Safety, sustainability, and governance: key signals during a construction-heavy year

Large construction periods often amplify safety risk due to contractor headcount spikes and complex site activity. ACG reported a lost-time injury frequency (LTIF) of 0.66 for 2025, including one lost-time incident involving a contract employee across 1.6 million man-hours worked.

The company said it remains focused on improving contractor workplace safety as the construction workforce peaks in the first half of 2026.

On the sustainability and governance side, ACG stated that its inaugural annual Sustainability Report is nearing completion and is expected to be published alongside the annual report in April. It also anticipates completing a comprehensive compliance review in Q1 2026, including updating and introducing compliance policies aligned with corporate governance commitments.

Capital structure and liquidity: where the balance sheet stood at year-end

ACG reported net debt of US$65 million as of 31 December 2025. It also disclosed a cash balance of US$144 million, including a restricted balance and a sulphide cash balance component.

The update further noted that after year-end, the group paid the January 2026 coupon related to its US$200 million Nordic bonds, and stated it was in full compliance with the bond terms.

For a miner approaching a major commissioning event, liquidity and covenant compliance are often closely watched. The company’s disclosures aim to reassure investors that the transition is being managed within the current funding structure.

Market context: why copper strategy is a theme investors keep circling back to

ACG’s shift toward copper production is happening during a period of heightened attention on industrial metals—particularly copper—driven by electrification needs and the buildout of power infrastructure. The International Energy Agency has published scenario-based analysis on copper’s role among energy-transition minerals, including demand/supply outlooks under different policy pathways.

Meanwhile, research and market commentary increasingly highlights newer demand drivers such as data centers and AI-related electricity infrastructure, which indirectly increases the need for copper in grid upgrades and power delivery equipment.

That said, copper markets can be volatile. Recent market reporting has described strong speculative activity around base metals and copper pricing, which can amplify both rallies and corrections.

The practical takeaway: copper’s long-run fundamentals are widely viewed as constructive, but short-run pricing can still swing. For an operator transitioning into copper, execution—on time, on budget, and at guided cost ranges—often becomes the key differentiator that investors reward or punish.

Management’s message: confidence in execution and the LSE growth story

In the update, Chairman and CEO Artem Volynets described the year’s results as consistent outperformance and emphasized progress toward the copper producer milestone. He also framed the broader ambition of establishing ACG Metals as a growth copper company on the London Stock Exchange.

While executive commentary is naturally upbeat, ACG backed the narrative with measurable milestones: production above guidance, lower cash costs, quantified construction progress, and specific 2026 output and cost targets.

What to watch next: the near-term checklist for 2026

Based on ACG’s own timeline and disclosures, the next chapters investors will likely track include:

• Sulphide project commissioning and ramp-up: delivery into commercial production by end of H1 2026.
• Achievement of 2026 guidance: 20–22 ktpa CuEq and AISC of about US$2.40–US$2.60/lb CuEq.
• Progress on enriched ore treatment: permitting, metallurgy, and detailed engineering starting in Q1 2026; Phase 1 commissioning planned for Q4 2026.
• Safety performance during peak construction: particularly contractor-related safety systems in H1 2026.
• Liquidity and funding discipline: maintaining covenant compliance and sufficient cash buffers through commissioning.

FAQ (คำถามที่พบบ่อย) about ACG Metals’ 2025 update and the copper shift

1) What did ACG Metals report for 2025 production?

ACG reported 39.2 koz AuEq produced in 2025 and said this was 3% above the top end of its guidance range, with 39.5 koz AuEq sold during the year.

2) Why did cash costs fall but AISC increase?

ACG said efficiency and cost controls drove a reduction in C1 cash costs to US$499/oz AuEq. AISC increased year-on-year, which the company attributed to higher royalty payments driven by higher gold and silver prices.

3) What is ACG guiding for 2026?

The company guided to 20–22 ktpa CuEq production in 2026 and an AISC range of approximately US$2.40–US$2.60/lb CuEq.

4) When is Gediktepe’s sulphide expansion expected to reach commercial production?

ACG said the sulphide expansion remains on track for commercial production by the end of H1 2026.

5) What is the Enriched Ore Treatment Project and why is it important?

It’s a separate initiative aimed at extracting additional value from enriched ore and stockpiles at site. ACG said it targets about 57kt CuEq over four years, with Phase 1 (gold/silver recovery) planned for commissioning in Q4 2026 and Phase 2 (including copper/zinc) planned from 2028.

6) What did ACG report about debt and cash?

ACG reported net debt of US$65 million as of 31 December 2025 and a cash balance of US$144 million (including restricted and sulphide cash balance components as described).

Conclusion: strong 2025 execution sets up a pivotal 2026 copper milestone

ACG Metals’ FY 2025 update is, at its core, a story about execution. The company beat guidance, lowered cash costs, and provided detailed transparency on construction milestones and schedule health for the Gediktepe sulphide expansion.

The market will likely treat 2026 as the real “proof year”—not because 2025 didn’t matter, but because 2026 is when ACG expects to turn Gediktepe into a copper producer and deliver copper-equivalent targets at a time when copper’s strategic role in electrification keeps drawing global attention.

If ACG can commission smoothly, maintain cost discipline through ramp-up, and keep safety performance steady during peak construction activity, it may strengthen its positioning as a London-listed copper growth story—exactly the direction management is signaling.

#ACGMetals #Copper #Mining #LSE #SlimScan #GrowthStocks #CANSLIM