ACG Metals H1 revenue rises 27% as Gediktepe copper ramp-up begins

ACG Metals Limited has reported stronger revenue, adjusted EBITDA and operating cash flow for the first half of 2026, helped by higher realised gold and silver prices.

The operational headline is equally important. The Gediktepe mine produced its first copper concentrate after the reporting period, marking a significant step in ACG's transition from oxide gold and silver production towards a copper-focused operation.

There are still two big qualifications for investors. Gediktepe must complete its ramp-up successfully, while financial net debt stood at a substantial US$140 million at the end of June.

ACG Metals' H1 2026 results at a glance

Metric	H1 2026	Year-on-year change
Revenue	US$90 million	Up 27%
Adjusted EBITDA	US$48 million	Up 19%
Cash from operations	US$30 million	Not disclosed
Gold equivalent production	18,487 oz	Down 17%
Gold equivalent sales	18,231 oz	Down 21%
Realised gold price	US$4,838/oz	Up 64%
Realised silver price	US$78.2/oz	Up 142%
C1 cash cost	US$622/oz	Up 70%
All-in sustaining cost	US$1,609/oz	Up 52%
Financial net debt	US$140 million	Not disclosed

Gold equivalent, or AuEq, converts production from different metals into an equivalent number of gold ounces. It provides a single measure of overall output.

Higher metal prices offset lower production

ACG's revenue increased from US$71 million to US$90 million, while adjusted EBITDA rose from US$40 million to US$48 million.

That performance came despite gold equivalent production falling 17% to 18,487 oz and sales declining 21% to 18,231 oz. The lower output was expected as Gediktepe moved from oxide mining towards sulphide production.

The difference was pricing. ACG reported a 64% increase in its realised gold price to US$4,838/oz and a 142% rise in its realised silver price to US$78.2/oz.

This was a powerful earnings tailwind, but it also highlights the results' sensitivity to commodity prices. Realised prices at these levels may not persist, while production volumes will need to carry more of the financial performance as the sulphide operation matures.

ACG nevertheless exceeded its full-year oxide production target of 17,500 oz AuEq during the first six months. Residual production and the re-leaching of previously processed oxide ore are expected to contribute approximately another 2,500 oz AuEq by the end of 2026.

Costs moved sharply higher

The weaker part of the results was the increase in unit costs.

C1 cash costs, which measure the direct cash cost of producing metal, rose 70% to US$622/oz. All-in sustaining costs, or AISC, increased 52% to US$1,609/oz. AISC is a broader measure that includes the spending required to maintain existing production.

Management attributed the increase to lower oxide production volumes, in line with the mine plan, and higher royalties linked to stronger gold and silver prices.

The fact that adjusted EBITDA grew more slowly than revenue also sits alongside this higher cost base. The immediate question is whether unit costs settle as the new sulphide operation increases throughput and plant performance improves.

First copper concentrate is the key milestone

At 30 June, the Sulphide Expansion Project was 87.2% complete, with all major equipment delivered to the site. ACG subsequently produced its first copper concentrate on 31 August, safely and within budget.

That moves the project beyond construction and into the commissioning and ramp-up stage. ACG is now focused on increasing throughput, optimising plant performance and reaching full commercial production, including zinc concentrate, by the end of 2026.

This is the central issue for shareholders. Construction progress is encouraging, but commercial production requires equipment and processing circuits to operate reliably at the intended scale. Revenue and production guidance for the completed sulphide operation was not disclosed in this announcement.

Investors wanting the earlier context can read about ACG's FY2025 margins and copper transition.

Net debt remains substantial

ACG reported financial net debt of US$140 million at 30 June. This was calculated using the contractual value of its US$200 million bond, less US$60 million of cash.

The cash balance included US$28 million of restricted cash, meaning it was subject to limits on how it could be used. That distinction matters when considering the group's financial flexibility.

There are mitigating factors. ACG generated US$30 million of cash from operations during the half, while the majority of project capital expenditure had already been incurred. Substantially all major processing equipment and key long-lead items had also been purchased.

Even so, US$140 million of net debt is material. The balance sheet case now depends partly on converting the sulphide investment into dependable commercial production and cash generation. The announcement did not disclose a debt-reduction schedule.

Keşkek could extend oxide production from 2027

After the period ended, ACG entered into a binding agreement to acquire the Keşkek licence. The aim is to supply additional oxide feed to Gediktepe's existing heap-leach facility from 2027, extending its productive life.

The consideration comprises US$7.85 million in cash, with US$4.0 million payable when the licence transfers and US$3.85 million due following environmental permitting. ACG will also pay a 1% gross revenue royalty on gold produced.

The acquisition remains subject to licence-transfer approval and permitting. The announcement did not disclose the quantity of recoverable metal, expected production or project economics associated with Keşkek.

For further detail, see the earlier analysis of ACG's Keşkek licence acquisition.

What investors should watch next

The original company announcement presents a business that generated meaningful cash while funding a major operational transition.

The positives are clear:

• Revenue and adjusted EBITDA increased despite lower output.
• Operating cash flow reached US$30 million.
• The full-year oxide production target was exceeded within six months.
• First copper concentrate was produced safely and within budget.
• Most expansion capital expenditure has already been incurred.
• Keşkek could provide additional oxide feed from 2027.

The risks are just as relevant:

• The sulphide operation is still ramping up and remains execution-dependent.
• Financial net debt is substantial at US$140 million.
• US$28 million of the US$60 million cash balance was restricted.
• Unit costs increased significantly during the half.
• Part of the earnings improvement came from sharply higher realised metal prices.
• Keşkek still requires licence-transfer approval and environmental permitting.

The next meaningful test is whether Gediktepe reaches full commercial copper and zinc concentrate production by the end of 2026. If it does, attention can move from construction milestones to production consistency, costs and debt reduction. Until then, this remains a stronger set of interim numbers attached to a transition that is not yet complete.