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(Sharecast News) - Berenberg lifted its ACG Metals target price to 2,400p from 2,300p and reiterated its 'buy' rating on the stock, saying the miner's latest Competent Person's Report underlined the strength of its copperled growth strategy.
The broker noted that ACG shares have climbed around 60% yeartodate, driven by the group's transition from a singleasset preciousmetals producer into a higherquality basemetals business with copper at its core. The updated CPR for the Gediktepe mine in Turkey showcased a rephased mine plan that brings forward basemetal output and lifts nearterm copperequivalent volumes.
ACG has raised its FY27-31 average CuEq production guidance to croughly 6,000 tonnes per annum, around 60% above the previous 20,000 to 25,000 tpa target and ahead of Berenberg's 34,000 tpa estimate. Total CuEq output over the initial 11year mine life was now expected to reach approcimately 352,000 tonnes, helped by accelerated enrichedore production from Q327 and an extended oxideore schedule through 2028.
Ore reserves have increased 43% to 26.5m tonnes, including a 35% uplift in copper reserves to 176,000 tonnes, with further upside expected from drilling targeting downdip sulphide extensions. Berenberg also highlighted regional potential at the nearby Ke_kek gold project, which could provide additional heapleach feed.
The German bank said its valuation for Gediktepe remains broadly unchanged at $802m, but said the CPR supports stronger nearterm growth and longerterm optionality. ACG shares trade at 1.06x net asset value and 2.9x FY27 underlying earnings, with Berenberg seeing further value to unlock as the copper strategy progresses.
Reporting by Iain Gilbert at Sharecast.com
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