ACG Metals Limited (LSE: ACG, ACGW) has announced the completion of a scoping-level economic study for a major expansion initiative at the Gediktepe mine in Türkiye. The Enriched Ore Treatment Project aims to convert material previously categorized as waste into saleable copper, gold, silver, and zinc concentrates. The development will be enabled through the installation of a new comminution and Sulphidisation, Acidification, Recycling, and Thickening plant, positioned to operate alongside the mine’s oxide processing facility and the sulphide plant currently under construction.
Why is ACG Metals Limited launching a new SART plant for waste ore recovery at Gediktepe?
The central rationale is resource value optimization. Approximately 3.3 million tonnes of stockpiled ore and enriched ore remain from earlier mining phases and were not processed due to metallurgical limitations. Rather than leaving these materials dormant or incurring future rehabilitation costs, ACG Metals Limited intends to extract copper and precious metals using the SART process, which is specifically designed to address complex, cyanide-consuming ore materials. This enables ACG Metals Limited to generate incremental production volumes without needing to expand its mine footprint or conventional processing circuits.
What does the financial model reveal about the copper-equivalent value hidden in enriched stockpiles?
According to results from the internal scoping study, the Enriched Ore Treatment Project is expected to generate US$562 million in total revenue from 2026 to 2030. Over the life of the project, it is expected to deliver 57,000 tonnes of copper equivalent output, comprising 29,000 tonnes of copper, 71,000 ounces of gold, 1.9 million ounces of silver, and 7,000 tonnes of zinc. The project is forecast to generate US$465 million in EBITDA and US$317 million in free cash flow. The post-tax net present value is estimated at US$212 million with an internal rate of return of 185 percent at consensus pricing. Development capital expenditure is estimated at US$39 million, implying a net present value to capital ratio of 5.4 times.
How does the two-phase timeline of the Gediktepe project align with ACG Metals Limited’s 2026 targets?
The project will be implemented in two phases. Phase 1 involves processing of previously mined stockpiled ore to produce gold and silver. Commercial production for this stage is targeted for the fourth quarter of 2026, creating early cash flow generation that supports the broader expansion strategy. Phase 2 involves the processing of enriched ore, which is expected to produce copper and zinc in addition to gold and silver. First production from Phase 2 is projected for the fourth quarter of 2028 with commercial operation by the first quarter of 2029. The project has entered its permitting stage, with approval expected in 2026.
What is SART technology and why is ACG Metals Limited using it over conventional processing routes?
SART is a hydrometallurgical process that allows the regeneration of cyanide and the selective recovery of copper and other metals from cyanide-bearing solutions. It is particularly effective on ores that are metallurgically challenging and uneconomic to process using flotation alone. The technology has been adopted by several global producers, including Newmont Corporation at Yanacocha and Torex Gold Resources Inc. at El Limón Guajes. For Gediktepe, the use of SART is designed to maximize metal recovery, reduce cyanide consumption, and lower operating costs. The process additionally allows ACG Metals Limited to monetize material previously considered subeconomic.
How much capital will the project need and how is ACG Metals Limited planning to fund the buildout?
The Enriched Ore Treatment Project requires a total development capital expenditure of US$39 million. Approximately US$29 million is allocated to Phase 1 and US$10 million to Phase 2. While the company states that internal cash reserves are sufficient to fund the entire project, management has elected to raise external capital to support liquidity, broaden institutional participation, and align upcoming growth milestones with shareholder access to value creation.
What is the structure of the £11.8M fundraise and who can participate in the institutional and retail offers?
The company intends to raise gross proceeds of approximately US$15.5 million or £11.8 million through the issuance of new Class A ordinary shares. The offering includes a placing of shares to institutional investors and a separate retail offer accessible through Retail Book Limited. The placing is targeting approximately US$15 million or £11.4 million, while the retail offer is expected to raise approximately US$0.5 million or £0.4 million. The issue price of £10.80 per share represents a 6.1 percent discount to the previous closing price of £11.50 but is marginally above the ten-day volume-weighted average price. Shares from this issuance will rank equally with existing shares and are expected to begin trading on the London Stock Exchange on 14 November 2025, subject to conditions.
How has ACG Metals Limited’s stock price responded to the Gediktepe expansion and equity raise?
ACG Metals Limited’s shares closed at 1,150 GBX on 11 November, unchanged day-over-day but up 9.5 percent over the past five trading sessions. The market capitalization is currently £24.91 million with a price-to-earnings ratio of 71.67. The stock has been trading near the top end of its 52-week range, which spans from 5 GBX to 1,180 GBX, reflecting a strong shift in market perception following the company’s operational updates and guidance upgrades.
What progress has ACG Metals Limited made on its sulphide expansion and 2025 gold output guidance?
The Gediktepe Sulphide Expansion Project remains on schedule, with engineering design 58 percent complete, procurement 56 percent complete, and plant construction 27 percent complete. Full commercial production is targeted for the first half of 2026. In parallel, production guidance for full-year 2025 was revised upward to 36,000 to 38,000 ounces of gold equivalent, compared to the previously guided 30,000 to 33,000 ounces. Higher recoveries and operational optimization underpin the improvement. All-in sustaining costs remain within guidance at US$1,131 per ounce.
What are the key engineering and permitting milestones investors should watch for in the next 12 months?
The primary milestones include the formal permitting of Phase 1, detailed engineering for SART plant construction, procurement of critical components, and scheduling alignment between oxide, sulphide, and SART circuits. Consistency of capital discipline, construction pacing, and process commissioning outcomes will shape investor expectations as ACG Metals Limited transitions toward multi-stream production.
How does ACG Metals Limited compare to other junior miners using SART or waste reprocessing strategies?
A small number of publicly listed mining companies have adopted SART plants as part of their core production strategy, but most operate at significantly larger scale. ACG Metals Limited’s model stands out for its combination of small capex, rapid payback timeline, and the ability to integrate the process into an already producing mine with minimal disruption. This gives the company a differentiated position among junior copper and gold developers.
What this means for investors tracking ACG Metals Limited and the copper-gold recovery trend
- ACG Metals Limited plans to develop a SART-based plant to process 3.3 million tonnes of enriched and stockpiled ore at the Gediktepe mine in Türkiye.
- The two-phase Enriched Ore Treatment Project is projected to generate US$562 million in revenue and US$317 million in free cash flow through 2030.
- Total development capex is estimated at US$39 million, with Phase 1 targeted for Q4 2026 and Phase 2 by Q1 2029.
- The company is raising £11.8 million to part-fund Phase 1 through a placing and a UK retail offering priced at £10.80 per share.
- Stock has surged 9.5 percent in the past week, hitting a 52-week high and reflecting strong investor interest in the project’s upside.
- SART technology is expected to increase recovery rates and reduce reagent costs, positioning ACG Metals Limited among innovative junior miners.
- The sulphide expansion project is progressing on schedule, while 2025 production guidance has been upgraded due to higher-than-expected recoveries.
- Key near-term catalysts include permitting for the new plant, construction updates, and final results of the equity raise.
- Broader market sentiment remains positive, with the fundraise potentially improving liquidity and institutional participation.
- Analysts see ACG Metals Limited’s waste-to-value strategy as a replicable model for similar polymetallic mining assets.
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