ACG Updates Gediktepe Royalty Terms for Smooth Transition to Copper Production

In a significant move to streamline its operations, ACG Metals Limited has announced amendments to the net smelter return royalty agreement dating back to July 17, 2019. This agreement was originally made for production efforts at the Gediktepe mine, involving ACG, Polimetal Madencilik Sanayi ve Ticaret A.Ş., and Alacer Gold Madencilik A.Ş., which subsequently assigned its interests to EMX Royalty Corporation. The revisions to this agreement were finalized on September 30, 2025, following a collaborative effort with EMX to ensure mutual benefits.

Starting on January 1, 2026, the modified terms will significantly alter the financial landscape for ACG. Notably, the royalty percentage on oxide production will see a steep drop from 10% to just 2.25%, while sulphide production will see a slight increase to the same rate of 2.25%. Such adjustments are poised to provide crucial support as ACG transitions away from oxide-based operations and shifts focus towards sulphide production.

One of the most impactful outcomes of this amendment is the complete release of ACG and Polimetal from certain milestone payments tied to the commencement of sulphide commercial production. This decision, which affects payments totaling US$ 6 million due in 2026, is expected to alleviate financial pressure as the mine operates during this critical transition period.

ACG believes that the updated royalty agreement will lead to a substantial reduction in all-in sustaining costs for their operations at the Gediktepe mine. The expected decrease in financial burdens, coupled with the easing of royalty rates, should fortify the company’s cash flow during the pivotal changeover to sulphide mining.

Patrick Henze, the CFO of ACG, expressed enthusiasm regarding these revised terms. He stated, “We are very pleased to have completed the process of amending our royalty arrangements with EMX and believe that the amended royalty terms leave us well positioned to navigate the transition from oxide to sulphide production in the near term.” He further acknowledges the positive collaboration experienced with EMX throughout this process, indicating a strong foundation for future partnerships.

The transition to sulphide production at the Gediktepe mine is not only a strategic move for ACG but also aligns with their broader objectives of transitioning towards copper and zinc output, which is slated to stat from 2026. Following a successful production figure of 55,000 ounces of gold equivalent in 2024, the company is aiming for steady copper equivalent outputs of 20-25 kilotonnes annually.

These changes reflect ACG’s commitment to elevating the copper industry while adhering to best-in-class environmental standards and corporate governance practices. The timely amendments to the royalty agreement grant ACG a formidable capacity to enhance their operational efficiency and strategically navigate market fluctuations.

As ACG continues to evolve with a clear focus on sustainable practices and efficient operational models, these amendments signify a robust step forward in their journey, not only alleviating immediate financial pressures but also establishing a foundation for long-term stability and success pre and post transition to copper production. For more information about ACG Metals, visit www.acgmetals.com.