ACG Metals Ltd (LSE:ACG, OTC:ACGAF) told investors that its Gediktepe sulphide expansion project remains on schedule and within budget for first production in the middle of 2026, as the company used a lower-output first quarter to push ahead with its transition toward copper and zinc production.
More broadly, chief executive Artem Volynets described 'a strong start to the year'.
"Lower C1 cash costs and strong revenues underscore the quality of the operation, while sulphide stripping and the Gediktepe Sulphide Expansion Project continue to progress in line with plan towards production in the middle of 2026," Volynets said.
"With a robust financial position and key growth projects advancing on schedule, we are well positioned to deliver a transformational year as ACG transitions into a long‑life copper producer."
ACG produced 12,168 ounces of gold equivalent in the first quarter, down 22% from a year earlier, while sales fell 30% to 11,334 ounces.
ACG said the decline was expected and aligned with the mine plan as Gediktepe moves from oxide to sulphide ore, with oxide mining already completed and all oxide material stockpiled by the end of 2025.
There was a mixed cost picture, with C1 cash costs falling 12% year on year to US$387/oz, helped by the absence of oxide mining, but AISC climbed 49% to US$1,438/oz as royalties rose alongside sharply stronger realised prices.
Gold prices realised in the quarter rose 77% to US$5,023/oz, while silver prices climbed 166% to US$84.4/oz.
On the balance sheet, ACG reported net financial debt of US$78 million at 31 March, supported by US$122 million of cash, including US$28 million of restricted cash.
The company also said technical and procurement work on its enriched ore project is advancing, with test work largely complete, early engineering underway and EPC tender preparation in progress.