ACG Acquisition targets August copper-zinc output at Turkish mine
ACG Acquisition is commissioning a new flotation plant at its Gediktepe mine to pivot from precious metals to copper and zinc, a transition management views as critical to improving its balance sheet and unlocking future dividends.
ACG Acquisition is preparing to launch copper and zinc concentrate production at its Gediktepe mine in western Turkey by the end of August. The new flotation facility marks the final stage of the company's shift away from gold and silver doré processing, according to chair and CEO Artem Volynets.
Located a three-hour drive from the Izmir Port, Gediktepe hosts a high-grade polymetallic deposit with a 2.3% copper equivalent grade. CFO Patrick Henze noted the ore body comprises oxide, sulfide, and an enriched ore stockpile. The oxide portion, which has sustained operations since 2022, already exceeded full-year guidance in the first half of 2026 due to better recoveries and upgraded processing technology applied to stockpiled material.
Future output will rely on the sulfide reserves, which are expected to drive production for several decades. For the full year 2026, ACG has issued guidance of 20,000 to 22,000 tonnes of copper equivalent. This figure incorporates the remaining oxide-derived gold and silver alongside the incoming sulfide concentrate.
Financial implications
The operational pivot carries direct consequences for the London-listed company's capital structure. Management indicated that the switch to copper and zinc output is essential for strengthening liquidity and improving overall debt metrics. Crucially, these balance sheet improvements are a prerequisite for refinancing the company's existing restrictive bonds.
Once that debt refinancing is complete, ACG signaled it will consider returning capital to shareholders through dividends. The strategic shift is timed to capture what management described as constructive structural copper demand. Volynets highlighted artificial intelligence infrastructure, data centers, robotics, electric vehicles, and defense sectors as primary growth drivers for the metal.
Despite the bullish demand outlook, ACG is basing its internal financial assumptions on consensus price forecasts rather than elevated spot prices. This approach indicates the company is relying on the operational transition and cost management to deliver its financial targets, rather than betting on further commodity price spikes.
