ACG Metals (ACG) H2 2025 TU earnings summary

Executive summary

• Transitioning from gold to predominantly copper production, with a transformational year ahead as the sulfide project comes online mid-year and operational performance exceeded guidance with 39,200–39,188 ounces AuEq produced.

• Sulfide/Sulphide Expansion Project is 63% complete, on time and on budget, targeting commercial production by end of H1 2026.

• Enriched Ore Project is fully funded, with permitting underway and Phase 1 gold/silver recovery targeted for Q4 2026.

• Outperformed analyst guidance last year, maintaining a robust safety record with LTIF of 0.66 over 1.6 million man-hours worked.

Financial highlights

• Achieved and exceeded upgraded production guidance, ending above the 36,000–38,000 ounces equivalent range, with 39,188–39,200 oz AuEq produced and 39,416–39,500 oz AuEq sold.

• Realized an 18% reduction in C1 operating/cash costs to $499/oz AuEq, despite inflationary pressures.

• All-in sustaining cost (AISC) increased slightly to $1,244/oz AuEq due to higher royalty payments linked to elevated gold/silver prices.

• Net debt at year-end: $56–$65 million, with $200 million in bonds and $144 million in cash.

• Market capitalization is $449 million, with an enterprise value of $505 million and share price at £14.50 ($19.72) per share.

Outlook and guidance

• 2026 is a transition year, with production guidance of 20,000–22,000 tons CuEq, including 17,500 ounces AuEq from oxide in H1 and 15,000–17,000 tons CuEq from sulfide in H2.

• AISC guidance for 2026 is $2.40–$2.60/lb CuEq, with oxide production cost benefiting from reduced royalty rate (2.25% vs 10%).

• Commercial production from the sulfide project expected by end of H1 2026, with full ramp-up by end of Q2.

• Enriched Ore Project Phase 1 commissioning for gold/silver recovery set for Q4 2026; Phase 2 (copper, zinc) targeted for 2028–2030.

• Anticipates further liquidity improvements and potential FTSE index inclusion.