ACG Metals Ltd (LSE:ACG, OTC:ACGAF) chief financial officer Patrick Henze talked with Proactive's Stephen Gunnion about the company’s recently announced gold hedging strategy and its importance during ACG’s transition phase from precious to base metals.
Henze explained that while ACG Metals is ultimately targeting copper production from its Gediktepe mine in Turkey by 2026, the mine currently generates strong cash flow from gold and silver. The company has moved to hedge 50% of its gold production at US$2,875 per ounce through January 2026, helping secure revenue in a volatile pricing environment.
He noted: “We are currently producing gold and silver, which is a perfect transition for us to become a copper producer in ’26… we can benefit and protect a bit the cash flows by hedging the gold.”
The hedge program, executed with Alpha, involves no cash outlay and allows ACG to retain upside exposure above US$3,065 per ounce on the hedged portion. Henze emphasised this strategy helps ACG provide more certainty to bondholders and equity investors by de-risking key financial metrics for 2025.
The company remains unhedged on silver and copper, maintaining exposure for future upside.
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