ACG Metals plc (LON:ACG) has reported a stronger financial performance for the first half of 2026, supported by higher realised gold and silver prices and continued progress at its Gediktepe mine in Turkey. The company is also moving into the next stage of its transition from oxide to sulphide production, with first copper concentrate produced at the end of August.
Revenue increased by 27% to US$90 million in the six months to 30 June 2026, compared with US$71 million in the same period of 2025. Adjusted EBITDA rose by 19% to US$48 million, while cash generated from operations reached US$30 million.
The improvement in financial results came despite lower production during the planned transition between oxide and sulphide operations. Gold equivalent production fell 17% to 18,487 ounces, but this figure had already exceeded ACG’s full-year oxide production target of 17,500 ounces within the first six months of the year. The company expects residual production and re-leaching of oxide ore at Gediktepe to provide an additional approximately 2,500 ounces of gold equivalent by the end of 2026.
Higher metal prices provided significant support to revenue. The realised gold price increased 64% to US$4,838 per ounce, while the realised silver price rose 142% to US$78.20 per ounce. These higher prices helped offset the reduction in sales volumes, with gold sales down 23% to 14,683 ounces and silver sales down 39% to 216,185 ounces.
Costs increased as production volumes declined during the transition. AISC rose 52% to US$1,609 per ounce, reflecting lower oxide production in line with the mine plan and higher royalties associated with increased gold and silver prices. C1 cash costs increased 70% to US$622 per ounce.
The more significant development is the progress of the Sulphide Expansion Project, which was 87.2% complete at the end of June. All major equipment had been delivered to site and the project subsequently reached the production stage when first copper concentrate was produced on 31 August. ACG said the project remains within budget, with the current focus on increasing throughput, optimising plant performance and progressing towards full commercial production by the end of 2026. Zinc concentrate is also expected to form part of the commercial production profile.
The transition to sulphide production represents an important change in the operating profile of Gediktepe. The first half of 2026 was characterised by lower oxide production alongside substantial construction activity, whereas the second half is focused increasingly on commissioning and ramp-up. The pace at which throughput and plant performance improve will therefore be a key factor in determining the company’s production and financial performance as the year progresses.
ACG’s financial position at 30 June included US$60 million of cash, of which US$28 million was restricted, against US$200 million of contractual bond borrowings. On its stated basis, financial net debt was US$140 million. The company said the majority of project capital expenditure had already been incurred by the end of June, including substantially all major process equipment and key long-lead items.
The company has also taken steps to extend the productive life of its existing oxide processing facilities. On 7 September, ACG entered into a binding agreement to acquire the Keşkek licence, subject to licence-transfer approval and permitting. The licence is expected to provide additional oxide feed to the Gediktepe heap-leach facility from 2027. Consideration includes US$7.85 million in cash, comprising US$4 million payable on licence transfer and US$3.85 million on environmental permitting, alongside a 1% gross revenue royalty on gold produced.
