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12 Feb 2025 07:04
12 February 2025
ACG Metals
ACG METALS LIMITED
("ACG" or the "Company")
Q4 2024 Operations Update
Strong operational performance and on track for Gediktepe Sulphide expansion
ACG Metals Limited is pleased to announce its operations update for the fourth quarter of 2024 ("Q4 2024" or the "Quarter") and the full 2024 financial year ("FY2024" or the "Period").
The Gediktepe Mine delivered strong operational performance achieving a 49% increase in Gold Equivalent production yielding 57koz of Gold Equivalent sales, while maintaining cost discipline in decreasing AISC by 2%, keeping it below $1,150/oz and benefitting from a 22% increase in realized metal prices.
The Company successfully completed key milestones, including a full LTI-free year, re-admission to the London Stock Exchange following the acquisition of the Gediktepe Mine, the signing of a $146m EPC contract with GAP İNŞAAT and a $200m four-year senior secured bond placement to fully fund and advance the Gediktepe sulphide expansion project.
Q4 2024 Highlights
· The average grade of ore was significantly higher compared to the fourth quarter of last year at 3.6 g/t for Gold (51% increase vs Q4 2023) and 83.3 g/t for Silver (45% increase vs Q4 2023).
· 225,861 tonnes of ore were processed in Q4 2024 which is in-line with the life of mine plan (- 20% vs Q4 2023).
· Gediktepe produced 13,097oz of Gold and 215,660oz of Silver resulting in 15,651oz of Gold Equivalent for the Quarter.
· Quarterly average realised prices for Gold ($2,667/oz) and Silver ($32/oz) have improved by 35% and 36% respectively.
· C1 costs remained within the budget at $572 per ounce representing an increase of 57%, with all-in sustaining costs of $1,108 per ounce representing an increase of 44% compared to Q4 2023.
FY2024 Highlights
· Gediktepe Mine achieved 634 LTI-free days or 1,905,841 LTI-free man-hours.
· As per the mine plan, historical operations have consistently followed a seasonal pattern: pre-stripping in Q1, mining of lower-grade, higher areas in Q2, and full oxide production ramping up in Q3 and Q4. This was the case in 2024 and will remain so in 2025.
· The Gediktepe Mine mined 713,181 tonnes of ore, a decrease of 8% from last year. The average grade of Gold (2.17g/t) decreased by 4% from last year and Silver (62.4g/t) increased by 7%.
· 18% more tonnes were processed compared to last year, totaling 801,600 tonnes, as stockpile inventory was strategically managed and drawn down to take advantage of favorable pricing conditions.
· Gediktepe produced 46,993oz of Gold and 709,380oz of Silver yielding 55,374oz of Gold Equivalent for 2024. This is a 49% increase in Gold Equivalent production year-on-year. Realised Gold and Silver prices have improved by 22% year-on-year to $2,387/oz and $29/oz respectively.
· C1 costs remained within the budget at $606 per ounce, with all-in sustaining costs of $1,139 per ounce representing a 4% and 2% decrease for the year respectively.
Artem Volynets, Chairman and CEO of ACG, said:
"2024 has been a transformative year for ACG Metals, marked by strong operational performance and strategic advancements. The Gediktepe Mine continues to deliver solid results, maintaining a stellar safety record while outpacing last year's production by nearly 50%. Our landmark EPC contract with GAP İNŞAAT will enable the transition to sulphide ore processing, unlocking long-term copper production potential and establishing our position in the copper sector.
Financially, our successful US$200 million bond placement in December underscores investor confidence in our strategy, providing the capital needed to execute our growth plans.
Our focus in 2025 remains on operational excellence, the completion of the sulphide expansion project and execution of identified value-accretive opportunities in the copper space. With strong momentum, ACG Metals is well-positioned to deliver sustainable shareholder value and play a vital role in the global copper supply chain."
Q4 2024 Operating Summary
| Q4 2024 | vs Q4 2023 |
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Total Ore Mined | t | 191,664 | -42% | Mining |
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Au Grade | g/t | 3.62 | 51% |
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Ag Grade | g/t | 83.58 | 45% |
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Total Ore Processed | t | 225,861 | -20% | Process |
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Au Grade | g/t | 3.86 | 56% |
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Ag Grade | g/t | 89.69 | 56% |
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Au | oz | 13,097 | -21% | Production |
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Ag | oz | 215,660 | 42% |
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AuEq | oz | 15,651 | -15% |
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Au | oz | 13,669 | -8% | Sales |
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Ag | oz | 204,013 | 43% |
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AuEq | oz | 16,090 | -4% |
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Au | $/oz | 2,666.90 | 35% | Realised Price |
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Ag | $/oz | 31.66 | 36% |
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C1 Cash Costs (produced) | $/oz | 571.65 | 57% | Cost |
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AISC (sold) | $/oz | 1,108.27 | 44% |
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FY 2024 Operating Summary
| 2024 | vs 2023 |
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Total Ore Mined | t | 713,181 | -8% | Mining |
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Au Grade | g/t | 2.17 | -4% |
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Ag Grade | g/t | 62.41 | 7% |
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Total Ore Processed | t | 801,600 | 18% | Process |
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Au Grade | g/t | 2.53 | 11% |
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Ag Grade | g/t | 71.84 | 24% |
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Au | oz | 46,993 | 43% | Production |
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Ag | oz | 709,380 | 107% |
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AuEq | oz | 55,374 | 49% |
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Au | oz | 49,165 | 49% | Sales |
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Ag | oz | 670,130 | 85% |
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AuEq | oz | 57,072 | 52% |
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Au | $/oz | 2,386.73 | 22% | Realised Price |
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Ag | $/oz | 28.56 | 22% |
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C1 Cash Costs (produced) | $/oz | 606.43 | -4% | Cost |
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AISC (sold) | $/oz | 1,139.39 | -2% |
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Safety And Sustainability
The Company's strong safety performance was maintained in 2024, with operations continuing fatality-free and without lost-time injuries (LTIs).
Gediktepe has now achieved 634 LTI-free days and 1,905,841 LTI-free man-hours. This figure is a reflection of the whole team's efforts to maintain the highest standards of safety and operational excellence at the mine.
Sulphide Expansion Project
Following the signing of the $146m fixed price, EPC contract with GAP İNŞAAT, ACG was pleased to announce on 20th December 2024 that it completed the placement of USD 200 million of new four-year, senior secured bonds with a coupon rate of 14.75 percent at par to fully fund the Sulphide expansion project and for general corporate purposes.
Currently, earthworks have commenced, geotechnical drilling has been completed and camp construction is well advanced.
Given ACG's strong cash flow generation from its existing operations and fixed price turnkey EPC contract for the Sulphide expansion project, the Company is expected to maintain a strong financial position and healthy cash balance throughout the construction period.
- 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.
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
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