ACG Metals (LSE:ACG, OTC:ACGAF) chairman and CEO Artem Volynets talked with Proactive about the company's strategic focus for 2025, including the construction of its Sulphide expansion project. Volynets confirmed that the project is on track for commissioning in early 2026, setting ACG Metals on the path to becoming a copper producer with an anticipated output of up to 25,000 tonnes of copper equivalent annually.
In the interview, Volynets highlighted the transformational year ACG Metals had in 2024, transitioning from a SPAC to a fully operational company through the acquisition of the Gediktepe asset in Turkey. The company raised $200 million in debt to finance the expansion and restructure acquisition debt, demonstrating strong financial progress. "Now with the acquisition complete, the project fully funded, and staffed with a very experienced team, we are moving to execute on the base case scenario," Volynets said.
ACG Metals achieved $75 million in EBITDA last year, and with the Sulphide expansion, the base case scenario projects EBITDA to exceed $100 million. As the company shifts from gold and silver doré production to a focus on copper, it aims to see a rerating of its shares by four to five times, aligning with industry peers.
Proactive: Artem, it’s great to speak with you. It's been a while since we last spoke to you on Proactive. So for viewers not familiar with the company, tell us more about ACG Metals and what you do.
Artem Volynets: Thank you, Stephen. Last year was a transformational year for ACG. We were reborn as a real operating company. If you may remember, we originally listed ACG as a SPAC—one of the very few in London that ended up doing the transaction. We completed the acquisition of the Gediktepe asset in Turkey last year in September, for a combination of $84 million in cash and 35% in our shares.
And that meant that ACG was reborn as ACG Metals, as a proper operating company with a producing asset in Turkey, and a bright future in the copper sector. Following the acquisition, in the course of the last five and a half months, we've been somewhat busy. Immediately following the completion of the transaction, we signed a fixed-price EPC contract to build the expansion at the mine.
Three months after the transaction, we raised $200 million in debt to finance that expansion and refinance acquisition debt. And finally, just three weeks ago, over the course of the last two weeks, we launched two tender offers to reduce the number of outstanding warrants in our capital structure and move the liquidity in shares.
So now with the acquisition complete, the project fully funded, and fully staffed with a very experienced team, we are moving to execute on the base case scenario which should see our shares rerating at least 4 to 5 times to reach the same trading levels as our peers. So we feel that this is an excellent, very interesting opportunity as ACG Metals grows to become a large copper-producing company.
Proactive: Tell us, Artem, what is the focus for 2025 as you move towards that rerating?
Artem Volynets: So last year we were still producing gold and silver doré to the tune of 57 ounces of gold equivalent. Last year we generated $75 million in EBITDA, which, by the way, means that today we are trading at around 1.2 times EBITDA. That's not very high for a public company with a producing asset. This year, the production of gold will be slightly less as we move to the Sulphide expansion.
The main focus of this year is the construction of that Sulphide expansion. We have already started that, and it's on target to be commissioned in the beginning of 2026. Turning ACG Metals into a copper producer, with approximately up to 25,000 tonnes of copper equivalent production per year. And EBITDA on the base case going to over $100 million.
So that's our target for this year. We'll be updating you as we move through the construction. But it's all well ahead.
Proactive: Well, Artem, I hope you'll keep us posted on any progress as it happens. Thank you very much for the introduction today.