Hi, everyone. Thank you for your interest. I would note that this presentation is not about drilling. It's not about hoping to find some copper underground. It's not about permitting. It's not about construction. All of these things are behind us. Two years ago, we acquired a very high-grade VMS deposit in Turkey, 2.3% copper equivalent grade. We've done well for our shareholders. We've been generating cash from the oxide, gold-bearing cap of the deposit. We think that the future is bright, and the best things are in front of us. In September 2024, two years ago, we bought a VMS deposit, 2.3% copper equivalent, which had remaining production of 18 months of gold production from the oxide cap and had unfunded BFS for 20,000 tonnes of copper production. Fast-forward two years, we bought the asset for $420 million in cash and shares.
We raised $200 million in bonds to invest in the asset. As of today, most of the CapEx for the main processing facility is done. We're building one more smaller processing facility to take full advantage of the rich deposit that we have, called SART. All of that is manifested in the updated competent person report we published 10 days ago, which is the same as National Instrument 43-101 in Canada, called CPR, and that gives us a value of $1.2 billion. So a pretty good investment, 120 equity, you get to 1.2. Massive increase in reserves, resources, and the production profile. Going forward, we're looking to do 36,000 tonnes of copper equivalent per year. Next year will be a ramp-up year as we just completed building the main production facility. That is a conservative number.
We have a VMS deposit, which is a polymetallic, diversified revenue streams, with copper and gold being the main elements. This is based on consensus pricing, which assumes long-term copper of 12,400. Clearly, we're not in that environment. If you plug spot prices, copper is likely to be higher. We have developed our asset to have three processing facility. We just finished building a flotation plant to treat the main part of the ore body, which is sulfide. We continue to produce gold and silver through the heap leach, which we acquired to begin with. We have find a way to treat so-called enriched transitional ore, which is the layer of the ore between oxide and sulfide. Originally, in the previous owners treated that waste. We have over 3 million tonne of that waste stockpile at the site at the same 2.3% copper equivalent.
Just finished building a flotation plant, $146 million in CapEx, no overruns, three months late on the startup, but we have produced the first concentrate and now in the ramp-up. The second major contribution to value is so-called SART plant to treat the transitional or enriched ore. That is a layer between oxide and sulfide, as I mentioned, and this is very rich at the same 2.3% copper equivalent. The SART plant delivers some phenomenal recoveries, and with no mining cost, with no CapEx, to get things out of the ground, a small $60 million build, which has already started. I don't even want to put IRRs on this slide because when you put three-figure IRRs, people don't believe it.
But that's the reality. Then finally, when we acquired the asset, we had a heap leach operation, which had 18 months to run. We have continued to produce gold. Last year, EBITDA $76 million. EBITDA for the first six months of this year, $48 million. We are continuing to generate cash while we embark on our massive construction projects, which is now mostly behind us. We have identified an additional deposit 70 km from us. We acquired that, and that will extend the life of mine for oxide operation for a foreseeable future.
The numbers that you see here in terms of production and free cash flows do not include those additional tonnes or gold equivalent answers from the extension of the oxide operation. I would note that cash flows are also based on consensus pricing. If you put spot prices, they will be whatever, 20%, 25% higher. Construction behind us, CapEx behind us, massive cash flows in front of us.
We have built this copper capacity at a very, very significant discount to what the big and the best companies in our industry are doing. I would challenge you to find another company in this conference who has built copper capacity at below $9,000 per tonne. Built, not about permitting, not about the future. This is about the past that already happened. Just a note of the financials for the first six month. This is only from production of gold and silver from the heap leach. As you can see, solid financials, especially assuming that we are in the middle of the construction. We have raised $200 million to invest in asset via Nordic Bonds. Those bonds are trading at around 9% yield to maturity. When we did it two years ago, the company had a market cap of six times less than today, so about $100 million.
We had two and a half people working there. Therefore, the initial coupon was high, 14.75, but we are looking to refinance those now in the high single digits, and that will provide an additional value creation, and that should happen in the next one or two quarters. What is important as well is the country where we operate in is extremely favorable to mining investments. Every time you read in Financial Times or The Wall Street Journal about that country or the other country raising corporate tax, in Turkey, they have lowered corporate tax from 25%- 12.5% from the 1st of January for mining companies like us who mine and process their own ore. On top of that, we get 50% rebate for copper and zinc royalties and 40% rebate on gold and silver royalties. The royalties are included in our average cost of $2.40 per pound.
All of the above very simply means that ACG Metals is a massive cash printing machine, and that is our philosophy. Our focus very much is not about whether we find something in the future if we do bunch of drilling. Our focus is on cash generation, and returning this cash to shareholders, buying other assets that can repeat the same story. Very high free cash flow. This is post-royalties, post-tax, which obviously means that as of today, we are valued at a very significant discount to peers. This is normal. The company is two years old. We just completed building a major CapEx. We are ramping up. This is not reflected in trading multiples yet. But again, you do not find too many companies in copper and gold that are trading at half of its net asset value.
The same story goes if you look at any other trading multiples, whether it's EV/EBITDA, or especially my favorite, price to free cash flow. Again, this is a reflection of very high margin that we have and a massive amount of free cash flows that we set to generate now as the construction is behind us. What we expect to happen so that our shares, which are trading at about GBP 19 today, we traded on the main board of the London Stock Exchange, can re-rate to the 34 at NAV at consensus pricing or over 40 at spot pricing. Number one, obviously, it's a delivery of a ramp-up. We're aiming to get to the full commercial production by the end of this year and to the full production in Q1 next year.
We have acquired the license three weeks ago. We are going to start for the oxide continuation of utilizing our heap leach. We are going to start processing that all from the middle of next year, which will add on top of the 36,000 tons of copper equivalent, which I mentioned in the previous slides. That will probably get us to close to 40,000 tons of copper equivalent. We have started building a smaller project, a $60 million SART project that treats the enriched ore layer that is between oxide and sulfide. We plan to put it into production in Q3 next year and extract all four metals at a very low all-in sustaining cost because there is no mining cost in treating this ore. I mentioned that another catalyst for us in the immediate future is refinancing our bonds.
That will save us about $10 million per year in interest cost, obviously very value-accreting. Then finally, we are about a $600 million market cap. If we were rate to peers, we should be over a billion-dollar market cap company. As you cross $750 million threshold on the London Stock Exchange, $750 million, we shall be eligible for [FTSE 250], which will drive the passive flows and further help with the liquidity in shares. Very simple. The only thing you need to remember about this company is these two slides. Very high cash flow generation. CapEx is behind, fully permitted, all infrastructure in place, producing. Number two, a very low multiples from where we are today. That is not going to remain the case going forward. Thank you. Any questions, please?
Thank you, Artem. Any questions from the room?
Any eyes on acquisitions outside of Europe?
Yes, very much so. I set up ACG as a platform to consolidate assets like that. The success story in Turkey helps us to attract other people who might be interested in working with us. We are looking to buy other assets in so-called Tethyan Metallogenic Belt and in Central Asia copper belt. Our geographies of interest are Turkey, Eastern Europe, other parts of Europe and Central Asia. At any given moment in time, we work on about three deals. In last two years, as we are building up Gediktepe, that's the name of our asset in Turkey, we walked away from five deals just because we didn't see the same potential for value creation as we've seen in our first asset. But at any given moment in time, we are in a number of M&A discussions.
I've been in this business for 30 years. I've done about $30 billion worth of deals. The previous experience of mine, building a large company in one single sector, one is aluminum. I was a Deputy CEO, Head of Strategy of Rusal, and then CEO of En+ Group. We built the company to $20 billion in market cap, when I listed that in Hong Kong in 2010, through a series of acquisitions and improvements. That is exactly what I'm doing in copper now, starting with this asset in Turkey.
Artem, maybe just as a follow-up to that question, you've highlighted the slides that demonstrate that it's a fantastic investment opportunity for people in the room, but relating that back to M&A, does it make it more challenging that you're trading at a discount to find those accretive deals and execute on them? Or are you confident you can do that?
There is a lot of enthusiasm on the part of the sellers. You can engage with people and if they believe in the consolidation play, if they believe that a company with several assets in a number of jurisdictions should trade at a better multiple than single jurisdiction, single asset company, there is plenty of upside that can be shared. The typical mechanisms you use to bridge the price gap is milestone payments, shares, and other payments links to the delivery of the business plan in the future, and that's possible.
Okay. Any further questions?
Some comments around your sustainability initiatives?
Yes. Two weeks ago, I was visiting the local villages around us, and the governor of Balıkesir region in Turkey, where we are the largest foreign investor by far. 90% of all people who can work from the local villages are working for us. We currently have 1,000 people at the site. That will decrease to about 600 once we finish all of our construction activities. We are the company that providing basically everything in this part of the world, from roads to the fresh water, wells to employment in the secondary business that supply us, that we help to set up. From a social responsibility perspective, that's a way to work, whether you're in Turkey or Africa or North America. It doesn't matter. On the environmental front, we are pretty good. Everything that we've done is fully permitted.
We have all the environmental permits required, and there is no challenges that we're facing. As I said, local communities are very keen to work with us. We are the main provider of bread to their families. We have, as a public company, on the main board of the London Stock Exchange, we recently published our first sustainability report. It's available on our website. Please do take a look.
Okay. Any last questions? Maybe one from me on refinancing of the bonds. There's probably not too much that you can say, but is that likely to be a more traditional debt-like product, and can you get support from groups like?
We were happy with the Nordic Bonds process. We have done $ 200 million, three months after the acquisition, when the market cap of the company was $100 million. We completed the process in five weeks. It is very likely that the next bond will also be Nordic one. The one after that is probably rated.
Okay. Groups like the EBRD, are they supportive? Would they support a debt package for you or?
I am sorry?
Groups like the EBRD, would they?
I'm sure they can support. They just don't have a capacity to work at the speed as we do.
Yeah.
EBRD will take two years to review the investment proposition. We have already built the plant by that time.
Yeah.
Yes, very happy to work with them. Have great dialogue. But we are a private business that is keen to move ahead very quickly. We have no issues whatsoever with the access to funding. Never had since I launched this company. We are generating cash. We have more cash than we require. Once we refinance the bonds, we'll establish the dividend policy. Money is a commodity. What's more important is to have a good team and a good asset.
Fantastic. Thank you very much, Artem. That's great.
Thank you.