The first half of the year has been one of strong strategic progress for ACG Metals Ltd (LSE:ACG, OTC:ACGAF) as the miner confirmed that steel and concrete have now been laid at its sulphide expansion project in Turkey.
The development, it said, will transform the company’s future production profile.
The London-listed group, which acquired the Gediktepe mine in 2024, is currently producing gold and silver.
The new facilities will allow it to begin commercial production of copper and zinc concentrates by mid-2026.
ACG said construction remained firmly on budget and schedule, with nearly half of engineering design complete, more than a third of procurement secured and 15% of construction work carried out by the end of June.
Artem Volynets, chairman and chief executive, said: “The first half of 2025 has been a strong period of strategic progress for ACG Metals, strengthening our foundations as a business and advancing our long-term growth plans."
Alongside the physical build-out, the company has also been reshaping its balance sheet.
It issued a $200 million four-year bond in January to fund the sulphide expansion and repay acquisition debt tied to Gediktepe. ACG has since repaid historic sponsor loans, tendered the majority of outstanding warrants and simplified its capital structure. Its net debt stood at $46 million at the end of June.
Operationally, the Gediktepe mine produced 22,263 ounces of gold equivalent in the half year, up 3% on the previous period. Sales volumes fell slightly, but the benefit of stronger metal prices and lower costs meant earnings improved.
Realised gold prices averaged $2,950 an ounce, up 37%, while silver fetched $32 an ounce, up 27%. All-in sustaining costs dropped 13% to $1,060 an ounce.
That translated into group revenues of $71 million and earnings before interest, tax, depreciation and amortisation of $36 million, representing a margin of around 51%. Operating cash flow came in at $31 million, or 44% of revenue.
The company also reported progress on safety, recording more than 800 days without a lost-time incident, and highlighted senior management appointments, including Peter Carter as chief operating officer to lead the copper expansion strategy.
After the reporting period, ACG began trading on the OTCQX Best Market in New York under the ticker ACGAF in addition to its London Stock Exchange listing. Volynets said the step would broaden its investor base and improve liquidity in the shares.
He added: “Gediktepe is on track to reach full commercial production of copper and zinc concentrates by the end of the first half of 2026. With the first steel and concrete now in place, we are firmly into the construction phase of this transformational project.”