ACG starts copper concentrate output in Turkey

ACG Metals (LSE: ACG) produced the first copper concentrate from its Gediktepe mine in Turkey, marking its transition from precious metals as it targets full sulphide production by the end of 2026.

The copper concentrate was produced safely and on budget, the company said on Tuesday. ACG is targeting 20,000 to 22,000 tonnes of copper-equivalent production this year, with Gediktepe expected to average 20,000 to 25,000 tonnes annually once the sulphide operation reaches steady state.

As demand for the metal continues to rise globally, Gediktepe now moves into the ramp-up stage, focusing on increasing throughput and optimizing plant performance, ACG CEO and chairman Artem Volynets said in a news release.

“Our priority is now a disciplined ramp-up, progressively increasing throughput and recoveries, delivering consistent concentrate quality and advancing towards steady-state production,” Volynets said.

Enrichment project

ACG’s joint broker Stifel called first concentrate an important milestone and said a smooth ramp-up would substantially de-risk ACG. Mining analysts Alex Bedwany and Mavis Liu rate the shares “buy” with a £24.50 target and see further gains from an enriched ore project, due for completion late this year, and exploration that could extend Gediktepe’s mine life.

Shares in ACG Metals gained 1.5% to close at £21 in London on Tuesday, valuing the company at around £486 million. The stock has more than tripled over the last 12 months.

ACG acquired Gediktepe from Turkey’s Lidya Madencilik in September 2024 as part of a $290-million (C$403-million) acquisition and financing transaction that included $100 million in cash, shares issued to Lidya and funding for a $145-million sulphide expansion. Lidya, a subsidiary of Çalık Holding, now owns 35% of ACG.

A company presentation in August shows total production rising to 38,000 tonnes copper-equivalent in 2027 and 45,000 tonnes in 2028, but that includes the enriched-ore project and is copper-equivalent, not copper concentrate.

Rising needs

The mine was previously a single-stream gold and silver operation and is now moving into copper and zinc concentrate production as artificial intelligence, electrification and other technologies increase demand for the red metal.

Copper demand is projected to grow to 42 million tonnes by 2040, a 50% increase from current levels even as supply decreases, according to a recent study by S&P Global.

Volynets, who led Russian aluminum giant Rusal’s $2.2-billion initial public offering on the Hong Kong Stock Exchange in 2010, aims to build ACG into a low-cost, multi-asset copper producer. He has said the company intends to pursue a series of roll-up acquisitions targeting producers with best-in-class environmental, social and governance characteristics.

Its board includes former U.S. Secretary of State Mike Pompeo.