ACG Metals (ACG) Status update summary

Operational transition and performance

• H1 2026 oxide production exceeded full-year guidance, reaching 18,487 oz AuEq due to improved recoveries from proprietary technology and higher commodity prices.

• Realised gold and silver prices surged by 64% and 142% respectively, supporting strong revenues despite lower volumes.

• Safety performance improved, with LTIF reduced to 2.9 per million man-hours amid intensive construction activity.

• Proprietary heap leach process improved gold recovery to 85% and reduced cyanide use by 45%, enhancing cash flow.

• Production and sales volumes declined year-on-year as planned, with AuEq production down 17% and sales down 21% versus H1 2025.

Project development and expansion

• Sulphide Expansion Project reached 87.2% completion by 30 June 2026, with all major equipment delivered and commissioning underway.

• First copper and zinc concentrate production expected in August 2026, transitioning from gold and silver doré.

• Enriched Ore Project is fully funded, with major earthworks nearly finished, procurement completed, and permitting in progress.

• FY2026 production guidance reiterated at 20,000–22,000 tonnes CuEq and AISC of $2.40–2.60/lb CuEq, with further 2,500 oz AuEq expected by year end.

• Mine life includes oxide, sulphide, and enriched ore, with production planned through 2035+.

Financial and capital markets update

• Net financial debt stood at $140 million as of 30 June 2026, with $60 million in cash, including $28 million restricted.

• Adjusted EBITDA as of 31 December 2026 was $76m, with a net debt/EBITDA ratio of 1.83x.

• Bonds are trading at a premium, with a coupon rate around 8.5% and an implied yield to maturity of 11.8% as of June 2026.

• H1 2026 AISC rose 52% to $1,609/oz AuEq, mainly due to higher royalties and lower production volumes.

• Sustaining CapEx is minimal due to outsourced mining and new processing plant.