#Turkey #ACG Metals #Gediktepe Mine #Gediktepe #SART Process

ACG Metals Completes Scoping Study for Ore Treatment Project

ACG Metals Limited, listed on the London Stock Exchange (LSE: ACG), has recently completed a comprehensive scoping study concerning its Enriched Ore Treatment Project located at the Gediktepe mine in Türkiye. This initiative aims to address previously considered waste materials by constructing a new facility designed to process these resources efficiently. The method being proposed involves the state-of-the-art SART process, known for its effectiveness in enriching base and precious metal yields from complex ores.

Project Overview

The Enriched Ore Treatment Project is set to unfold in two key phases. Phase 1 focuses on the immediate handling of stockpiled ore, targeting gold and silver production with the goal of commencing commercial operations in the fourth quarter of 2026. Following this, Phase 2 aims to include the extraction of copper and zinc from enriched ores, expected to begin commercial production by the first quarter of 2029.

ACG Metals anticipates the initial phases to generate significant financial returns, with projections indicating total revenues of approximately $562 million and an EBITDA of $465 million throughout the project's lifespan. Notably, this project will not impede the operation of the existing oxide plant or the planned sulphide plant currently under construction, thus ensuring a smooth transition into increased production levels.

Financial Highlights

The internal scoping study outlines an estimated development capital cost of $39 million, with an exciting NPV (Net Present Value) of $212 million at an 8% discount rate, showcasing robust financial viability. An IRR (Internal Rate of Return) of 185% at consensus pricing further solidifies the project’s attractiveness to investors. This favorable cost-benefit ratio is crucial for potential stakeholders interested in participating in the company's growth trajectory.

Fundraising Initiative

To support the ambitious goals of the Enriched Ore Treatment Project, ACG Metals is launching a capital raising initiative, aiming to collect up to roughly $15.5 million, or £11.8 million. This initiative will consist of two components: a non-pre-emptive placing for institutional investors and an additional retail offer for public investors, priced at £10.80 per share. Given the stock's latest closing price of £11.50, this represents a modest discount, providing an appealing entry point for new investors.

ACG Metals' management believes that the funding raised will facilitate critical development expenditures, thus enhancing liquidity and reinforcing investor confidence in the company's strategic direction. As stated by Artem Volynets, the Chairman and CEO, this project is a testament to ACG's operational improvements and the team's ability to unlock value from previously underutilized resources.

Commitment to Sustainability and Innovation

ACG Metals has emphasized its commitment to sustainable practices throughout the project's development phases. Utilizing the SART process is not only economically advantageous but also environmentally responsible, aiming to minimize waste while maximizing output. This technology has previously been proven effective at other global operations, contributing to the project’s credibility and expected success.

Moreover, ACG’s focus on operational excellence extends beyond just financials. With extensive experience in the mining sector, the team is well-positioned to navigate the complexities involved in expanding production capabilities while adhering to best practices in environmental, social, and governance (ESG) criteria.

In conclusion, ACG Metals Limited stands at the forefront of innovation in the mining industry with its endeavors to enhance production at the Gediktepe mine while developing a responsible financial model through the Enriched Ore Treatment Project. As the company moves forward, it offers investors a unique opportunity to be part of a promising future in copper and zinc production.