ACG Metals Ltd (LSE:ACG, OTC:ACGAF) said gold production rose sharply in the first quarter of 2025, while it moved to streamline its balance sheet and protect future cash flows.
The London-listed metals producer reported a 29% increase in gold equivalent production compared to the same period last year, reaching 16,200 ounces in sales.
ACG also said it had cut its all-in sustaining costs, or AISC, a metric that includes direct mining costs as well as sustaining capital expenditure, by 13% during the quarter. This was helped by a 38% rise in realised gold prices.
Construction work at ACG’s Gediktepe Sulphide Expansion Project, located in western Turkey, continued on schedule and on budget.
The company said major early works had been completed and that construction would "ramp up materially" over the next quarter.
At the same time, ACG said it had strengthened its capital structure through the early repayment of acquisition and some shareholder loans.
It also completed share and cash tender offers to simplify its equity structure and put in place a gold hedging programme to shield near-term cash flows from market volatility.
"The first quarter of 2025 has further demonstrated the strength and reliability of our operations at Gediktepe, as well as the exceptional performance of our team," said Artem Volynets, ACG chairman.
"We have already delivered nearly 50% of the full-year production forecast shared during the bond roadshow last year, with further inventory in hand - a strong indicator of our performance trajectory and conservative projections to investors.
"Even as the market faced inflationary pressure in Türkiye, we controlled costs, resulting in a decrease compared to the first quarter of last year.