ACG Metals Ltd (LSE:ACG, OTC:ACGAF) chairman and CEO talked with Proactive about the company’s application to trade on the OTCQX Best Market and what it means for liquidity, valuation and global investor appeal.
In this interview, Artem Volynets explains how “we are still trading below two times free cash flow, which for the company of our size is not common” and highlights that peers in the copper sector typically trade at eight times free cash flow, implying a potential “3 to 5 times upside” on ACG Metals shares.
Volynets details that moving to the OTCQX in New York is “one more step in our program to increase liquidity in ACG Metals shares,” enabling predominantly retail investors to gain exposure to a fast-growing, cash-generative copper producer.
He adds that with copper “on the front pages of many leading newspapers in the United States,” there are few pure-play opportunities outside household names—and ACG Metals fills that gap as it pursues consolidation across the global copper space.
Finally, Volynets underscores that the dual-market presence will benefit long-term shareholders who already believe the company is undervalued, and he hints at upcoming M&A that could deliver further upside.
Proactive: Artem, very good to speak with you. You’ve applied to trade on the OTCQX Best Market. What’s behind the move and why is now the right time?
Artem Volynets: Thank you very much. Stephen, great to be back. Simply, this is one more step in our programme to increase liquidity in ACG Metals shares. We have seen increasing levels of trading for each month since May of this year as we pushed ahead with the comprehensive due diligence programme. Getting an OTC listing in New York is a logical step in that progress.
This will enable more predominantly retail investors to get exposure to the ACG Metals story. We believe this is an exciting story and are happy to see that many investors share our excitement. We are still trading below two times free cash flow, which for the company of our size is not common. And therefore there is plenty of upside in shares. The typical companies in our industry trade at eight times free cash flow, so there is a three to five times upside on the shares for the base case of ACG and listing OTC in New York is an additional measure to improve liquidity and to enable more investors to play in the stock.
Proactive: So, apart from the potential upside, Artem, what’s the appeal for US investors?
Artem Volynets: Well, thanks to the current administration, the word copper has been on the front pages of many leading United States newspapers. But there are not that many opportunities to gain exposure to a pure-play copper producer outside of well-known household names. ACG Metals provides a unique opportunity as we have a fast-growing, highly cash-generative company focused on consolidation of the global copper space.
Artem Volynets: And we believe this will appeal to investors on both sides of the Atlantic as the copper market gains more attention from the mainstream investment crowd.
Proactive: How do you see the dual-market presence benefiting your long-term shareholders?
Artem Volynets: Of course. Our long-term strategic shareholders are here with us to stay. They share our view that the company is massively undervalued and is, on a base-case scenario, three to five times upside from our current share price—and this is before any M&A that we are working on. Any M&A transaction will increase that by a further two to three times from these base levels.
Proactive: Well Artem, good luck with that OTCQX trading. We look forward to speaking to you again shortly.