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Hedging Agreement to Derisk Construction Phase
Hedging Agreement to Derisk Construction Phase.
About this update from Acg Metals Limited Class A
[{"type":"text","content":"\n\n28 March 2025\n \nACG METALS LIMITED\nStrategic Hedging Agreement to Derisk Construction Phase\nACG Metals Limited (\"ACG\" or the \"Company\") announces the signing of a hedging agreement to further derisk the construction phase of the Gediktepe sulphide expansion while preserving the upside on gold prices.\nHighlights\n· Zero cost structured collar options will be put in place on c.14koz of gold production from Gediktepe, equivalent to 50% of estimated gold production from now until January 2026, when the sulphide expansion is expected to enter production.\n· The structure will lock-in downside protection at gold prices 15% higher than ACG's current budgeted gold price, allowing the Company to significantly de-risk cash flows during the Gediktepe sulphide expansion period.\n· This agreement provides a robust financial buffer against commodity price volatility, positioning the Company to deliver on its operational and financial objectives.\n· The Company will continue to benefit from gold price upside on the 50% hedged portion above $3,065/oz - close to current spot prices.\nPatrick Henze, Chief Financial Officer of ACG, said:\n\"Implementing this structured hedging strategy is a pivotal step in strengthening ACG Metals' financial stability. As a copper-focused company, the current oxide gold & silver production serves as a strategic bridge to our long-term objectives. Locking in downside protection at prices 15% higher than our budget price allows us to significantly de-risk cash flows for the remainder of the construction period of our sulphide expansion project at Gediktepe. This approach not only supports prudent financial management but also delivers clear benefits to both equity and bond holders by enhancing cash flow visibility, reducing risk, and preserving upside. It ensures we can continue executing our strategy while delivering sustained value creation to all stakeholders.\"\nGold Hedging Strategy\nACG has successfully entered into a hedging agreement following its strategy to derisk the cash flows from gold and silver production in 2025, to provide a significant cushion for the sulphide expansion project at Gediktepe covering 50% of its planned gold production through to January 2026, which is equivalent to c.14koz of gold.\nThe hed...