ACG Metals’ Copper Consolidation Strategy: Key Insights from Artem Volynets

ACG Metals’ Founder, Chairman, and CEO, Artem Volynets, provided a clear outlook on the copper market and ACG Metals’ strategy at the Ignite Investment Summit in Hong Kong.

Copper Deficit and Pricing

Mr. Volynets agreed with the other panelists that the copper supply is underestimated. Analyst forecasts often rely on uncommitted projects that will face delays.
On the other side, the demand is surging demand. Beyond traditional uses, major new copper demand is coming from AI data centers, robotics, and defense spending. Ultimately, the combination of constrained supply and explosive new demand means the copper sector is set to see new pricing levels globally

The growth strategy for ACG Metals: Buy, Not Build

Mr. Volynets highlighted that ACG Metals’ clear preference is to buy producing or near-producing assets, not greenfield exploration projects. This allows the company to secure assets before prices rise and strategically use debt to increase the return on equity in consolidation plays.
Additionally, Mr. Volynets stated that capital is available for good projects, but the main issue is finding de-risked assets.

Geographical & Geopolitical Focus

According to Mr. Volynets, future acquisitions are focused on the Tethyan Copper Belt (Eastern Europe, Central Asia), the African Copper Belt (for large assets), and producers in Chile and Peru. Regarding geopolitics, Mr. Volynets
noted the world’s supply chains are breaking down. Strategic partnerships are crucial, leading to the appointment of figures like Mike Pompeo to the ACG Metals board to aid in engaging decision-makers in key geographies.