Artem Volynets has a track record of building major businesses in mining and metals.
He designed and executed the roll-up strategy that created the world’s second-largest aluminium producer and has been involved in transactions worth $30billion.
So, when he talks about repeating this feat in copper, you sit up and listen.
During our discussion, however, he is less interested in the blue-sky vision and is focused on the here and now—the value already inherent in London-listed ACG Metals, which the market has yet to fully recognise.
He makes a compelling case that ACG should be worth four to five times more than its current valuation, and soon—within a year, give or take. Given his experience, that’s not something to dismiss lightly.
‘I think the base case we have put together is very simple and will move the value of this business,’ says the ACG CEO.
ACG’s immediate focus is Gediktepe, a project in western Turkey acquired for $84million in cash and 35 per cent in shares in ACG that also brought in the vendor, Lidya Madencilik, as a cornerstone investor.
Shifting elements: London-listed ACG Metals is transitioning to copper production
For those unfamiliar with Turkish business, Lidya is the mining arm of Çalik Holdings, one of the country’s largest conglomerates.
The deal itself was something of a bargain. ACG Metals currently trades at 22 per cent of its net asset value (NAV) and at 1.9 times its expected 2026 earnings before interest, tax, depreciation, and amortisation (EBITDA), based on market price forecasts.
This valuation disconnect explains much of the upside not yet reflected in ACG’s $100million market capitalisation.
Currently, Gediktepe produces 55,000 gold-equivalent ounces annually from oxide caps, at an estimated $76million in EBITDA in 2024 at low costs. But the real value lies in its transition to copper production.
Starting in 2026, the mine will process sulphide ore, producing between 20,000 and 25,000 tonnes of copper per year and delivering an estimated $104million in EBITDA annually.
To enable this shift, ACG is investing $146million in a processing plant designed to handle the sulphide ore. Crucially, this is being built on a fixed-price contract, meaning the contractor, not ACG, will absorb any cost overruns.
According to Volynets, the construction work—already underway and due for completion early next year—is relatively straightforward, particularly given the experience of his team.
‘I don’t see any roadblocks, and as work goes on, the risk is decreasing,’ he says.
Funding for the project comes from a $200million bond issue, with some of the proceeds earmarked for cleaning up the company’s balance sheet.
ACG also launched tender offer for its warrants to simplify the corporate structure. Repurchasing 70-80 per cent of these warrants will allow ordinary shareholders to capture more of the upside as the share price rises. The majority will be bought for shares, with investor Argentem Creek funding the acquisition of the rest.
On a conservative valuation basis—using net present values of comparable companies—ACG’s fair value should be four to five times higher than its current share price once copper production begins.
And that’s just the starting point.
ACG’s technical team has identified three promising areas near Gediktepe that could yield additional oxide ore to feed the processing plant. The company just started drilling in these satellite locations.
Meanwhile, the company is reassessing its approach to transitional and enriched ore, which sits between the oxide and sulphide layers.
Previously set aside for later evaluation, this high-grade material contains 1.25 per cent copper, 1.46 per cent zinc, 0.71 grams per tonne of gold, and 27.3 grams per tonne of silver.
ACG is now exploring ways to unlock its value, with engineering studies underway to assess processing options.
Beyond this, there is strong evidence of significant copper and zinc mineralisation outside the existing pit design, with 35-40 per cent of sulphide resources falling beyond the 2022 feasibility study boundaries.
Geological studies suggests this sulphide mineralisation extend well beyond current estimates, with grades increasing at depth. If confirmed, this could materially increase resources and extend the mine’s lifespan.
So what are the risks? Funding is secured, and Volynets believes the execution risk of the processing plant is minimal. Meanwhile, the corporate structure is being tidied up via the warrant repurchase programme.
The next challenge is to bring this ‘oven-ready’ mine development story to a wider London investment audience, generating the share trading liquidity needed to reflect Gediktepe’s real value.
ACG’s board is already structured like that of a much larger company. It boasts deep experience in both capital markets and mining operations. Notably, former US Secretary of State Mike Pompeo sits as an independent director.
‘There’s the attractiveness of the project, but we also have assembled a very strong team to back it up,’ says Volynets.
The shareholder register reinforces this ambition, with emerging markets specialist Argentem Creek and mining major Glencore among its backers.
All of this suggests ACG isn’t looking to be a one-asset business.
A glance at ACG’s corporate presentation reveals that Volynets and his senior team have ambitions of turning the company into a $3-$5billion multi-asset critical metals giant, following his well-rehearsed buy-and-build blueprint.
But that’s a story for another day.
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