ACG Metals Ltd (LSE:ACG, OTC:ACGAF) has agreed new royalty terms at its Gediktepe mine in Turkey as it prepares to switch production from gold to copper.
The London-based miner said the amendments, struck with partner EMX Royalty Corporation, would lower costs in the short term and improve cash flow during the transition.
From the start of 2026, the royalty on oxide ore, the gold-rich material that has so far been the mine’s focus, will drop from 10% to 2.25%. At the same time, the levy on sulphide ore, which contains copper and zinc, will rise slightly from 2% to 2.25%.
In addition, ACG and its partner Polimetal Madencilik have been released from paying US$6 million of milestone payments that had been due next year when sulphide production begins.
The company said the changes would cut costs on the remaining gold production and free up cash as the mine moves into its next phase. Any future extension of oxide mining at Gediktepe will also now attract the lower 2.25% royalty rate.
Patrick Henze, chief financial officer of ACG, said: “We are very pleased to have completed the process of amending our royalty arrangements with EMX and believe that the amended royalty terms leave us well-positioned to navigate the transition from oxide to sulphide production in the near term.”
The Gediktepe mine, in western Turkey, began producing gold in 2021 and is expected to shift its focus to base metals over the coming year.