Acg Metals Regulatory News (ACG)

28 March 2025

ACG METALS LIMITED

Strategic Hedging Agreement to Derisk Construction Phase

ACG Metals Limited ("ACG" or the "Company") announces the signing of a hedging agreement to further derisk the construction phase of the Gediktepe sulphide expansion while preserving the upside on gold prices.

Highlights

· Zero cost structured collar options will be put in place on c.14koz of gold production from Gediktepe, equivalent to 50% of estimated gold production from now until January 2026, when the sulphide expansion is expected to enter production.

· The structure will lock-in downside protection at gold prices 15% higher than ACG's current budgeted gold price, allowing the Company to significantly de-risk cash flows during the Gediktepe sulphide expansion period.

· This agreement provides a robust financial buffer against commodity price volatility, positioning the Company to deliver on its operational and financial objectives.

· The Company will continue to benefit from gold price upside on the 50% hedged portion above $3,065/oz - close to current spot prices.

Patrick Henze, Chief Financial Officer of ACG, said:

"Implementing this structured hedging strategy is a pivotal step in strengthening ACG Metals' financial stability. As a copper-focused company, the current oxide gold & silver production serves as a strategic bridge to our long-term objectives. Locking in downside protection at prices 15% higher than our budget price allows us to significantly de-risk cash flows for the remainder of the construction period of our sulphide expansion project at Gediktepe. This approach not only supports prudent financial management but also delivers clear benefits to both equity and bond holders by enhancing cash flow visibility, reducing risk, and preserving upside. It ensures we can continue executing our strategy while delivering sustained value creation to all stakeholders."

Gold Hedging Strategy

ACG has successfully entered into a hedging agreement following its strategy to derisk the cash flows from gold and silver production in 2025, to provide a significant cushion for the sulphide expansion project at Gediktepe covering 50% of its planned gold production through to January 2026, which is equivalent to c.14koz of gold.

The hedging program has been implemented in partnership with Alpha Group, a leading FX and treasury risk management provider, who have been selected after a comprehensive tender process. The structure used is a zero cost structured collar option ("Collar"), allowing the Company to secure strong downside protection while retaining exposure to potential upside if gold prices increase further.

The hedge was executed when the gold spot price, referenced to the LBMA PM price, stood at $3,020/oz, enabling ACG to lock in protection 15% above its internal budget assumptions and operational breakeven levels.

Under the terms of the structure:

1. If the gold spot price is below $2,875/oz, ACG sells at $2,875/oz, securing a robust floor.

2. If the spot price is between $2,875 and $2,942.50/oz, ACG sells at prevailing market rates.

3. If the spot price is between $2,942.50 and $3,065/oz, ACG sells at $2,942.50/oz.

4. If the spot price is at or above $3,065/oz, ACG benefits from the increase in gold prices, ensuring continued upside participation above that level.

The Collar structure was tailored for Gediktepe's production profile and ACG's market outlook, striking a balance between risk mitigation and value capture. This structure ensures that ACG benefits from current near-record gold prices while retaining the potential for enhanced revenues under favourable market conditions.

This risk management approach will provide a robust financial buffer, ensuring that ACG's budgeted cash flow expectations are protected again significant gold price downward volatility. By securing pricing stability while preserving potential for further gains, ACG remains well-positioned to deliver on its operational and financial objectives.

The Company continues to actively monitor market conditions and will manage its hedging program while maintaining financial flexibility.

- ENDS -

The person responsible for the release of this information on behalf of the Company is Artem Volynets, Chief Executive Officer.

For further information please contact:

Palatine

Communications Advisor

Conal Walsh / James Gilheany/ Kelsey Traynor/ Richard Seed

acg@palatine-media.com

About the Company

ACG Metals is a company with a vision to consolidate the copper industry through a series of roll-up acquisitions, with best-in-class ESG and carbon footprint characteristics.

In September 2024, ACG successfully completed the acquisition of the Gediktepe Mine which is expected to transition to primary copper and zinc production from 2026 and will target annual steady-state copper equivalent production of 20-25 kt. Gediktepe produced 55koz of AuEq in 2024.

ACG's team has extensive M&A experience built through decades spent at blue-chip multinationals in the sector. The team brings a significant network as well as a commitment to ESG principles and strong corporate governance. 

For more information about ACG, please visit: www.acgmetals.com