Canaccord Genuity has launched coverage of ACG Metals Ltd (LSE:ACG, OTC:ACGAF) with a 'Buy' rating and an 830p price target, pointing to significant upside as the miner prepares to shift from gold to copper at its flagship Gediktepe project in Turkey.
The transition, scheduled for 2026, will see ACG move from its current gold oxide production to a copper sulphide operation.
The $146 million expansion is fully permitted and funded following a recent US$200 million bond issue.
Construction is set to begin in the third quarter of 2025, with first copper output targeted for the second quarter of 2026.
Canaccord describes a “smooth transition at Gediktepe” as key to the investment case.
For 2025, ACG has guided for 30,000–33,000 ounces of gold equivalent at all-in sustaining costs (AISC) of around US$1,150 per ounce.
Canaccord is slightly more optimistic on output and believes cost performance could improve, particularly with a strong end to the year.
Although 2026 is forecast as a lower-margin year due to the transition, Canaccord expects robust cash flow to follow as copper production ramps up, with net debt peaking next year before rapid deleveraging.
With prices of the red metal strong and multiple “de-risking” milestones ahead, Canaccord sees ACG as well placed for a re-rating if it can deliver on execution.
In afternoon trading, the shares were up 4% at 544p.