Akobo Minerals announces results for the third quarter of 2023
OSLO, 07 December 2023: Akobo Minerals AB (publ), (Euronext and Frankfurt: AKOBO, OTCQX: AKOBF), the Scandinavian-based Ethiopian gold exploration and boutique mining company, today reported its third quarter 2023 results. As the company is still in the project development phase prior to production start-up, there was no income during the third quarter of the year. The net loss for the quarter was SEK 28.4 million with a cash position of SEK 26.3 million.
Third quarter of 2023
- Refinery agreement signed with the world-renowned gold refiner, MKS PAMP
- Results from the Gingibil bulk sampling suggest ore grades are present at surface
- Inauguration of the community 'ecohub' facility
- Assumption of mining operations from IW Mining
- Secured a convertible loan of NOK 34.4 million
- Commencement of Akobo share trading on the OTCQX, ticker symbol AKOBF
- Completion of all major foundations for the processing plant
After the quarter closed
- Gold price all time high and first high-grade gold produced from the Segele ore body
- Implementation of a new mining team leading to reduced costs and enhanced productivity
- Successful reorganization, establishing new Mining Operations and Business Support Divisions
- Substantial delay in mining progress attributed to significant errors by former mining operator
- Challenges in procurement due to increased inflation and difficulty sourcing consumables and spares in Ethiopia
- Intersection of the Segele ore body in the Western Winze
- Process plant nears completion and commissioning
- Initiation of a cost-saving program
- Commencement of funding dialogue with potential advisers and investors to secure up to 5mUSD
Q3 FINANCIAL PERFORMANCE OVERVIEW
- The result for the period: SEK -28.4 million
- The result for the year-to-date: SEK -97.3 million
- Cash flow for the period: SEK 1.2 million
- Cash at the end of the period: SEK 26.3 million
- Total equity at the end of the period: SEK -16.7 million
- Total external long-term debt at the end of the period: SEK 184 million
KEY COMPANY HIGHLIGHTS
- A 'de-risked' project
- Segele gold ore body reached underground and first high-grade gold produced from the Segele ore body
- Processing capacity available
- Significant cash flow to be generated
- Excitement around latest exploration activity following promising initial findings
- Ambition of developing world class deposits of 1.5 to 2 M oz
- Segele is the first new gold mine in Ethiopia since Legadembi in 1994
- Company has a first mover advantage, with expansion opportunities identified
Akobo Minerals will host a webcast, in English, for all shareholders and interested parties today at 10:00 CET. There will be a Q&A session following the management presentation.
The webcast will be available at: Akobo Minerals Webcast Q3 2023
For more information, contact:
Jørgen Evjen, CEO, Akobo Minerals
Mob: (+47) 92 80 40 14
About Akobo Minerals
Akobo Minerals is a reputable Scandinavian-based gold exploration and boutique mining company. The company currently holds an extensive exploration license encompassing 182 square kilometres and a 16 square kilometres mining license, with an active mining operation in the Gambela region and Dima Woreda, Ethiopia. Akobo Minerals has emerged as the foremost gold exploration company in Ethiopia,
boasting over 13 years of dedicated on-the-ground experience.
What sets Akobo Minerals apart is its strong commitment to fostering positive relationships with local communities, extending all the way to national authorities. This commitment is underscored by the company's unwavering dedication to environmental and social governance (ESG), as evidenced by their ground-breaking shared value program.
Akobo Minerals has firmly established its presence in the region by upholding the principles of ethical conduct, transparency, and open communication. This foundation positions the company to embrace new opportunities and ventures as they emerge, making it a key player in the burgeoning Ethiopian mining industry.
Akobo Minerals has charted a clear course for its future growth, with a strategy centered around amassing a portfolio of valuable gold resources through high-impact exploration and mining activities, all while maintaining an efficient and streamlined business operation.
The company is headquartered in Oslo and is publicly listed on the Euronext Growth Oslo Exchange and the Frankfurt Stock Exchange under the ticker symbol AKOBO. For US investors, Akobo Minerals
AB (OTCQX: AKOBF) is traded on the OTCQX Best Market, adhering to high financial standards, best practice corporate governance, and compliance with U.S. securities laws. Additionally, the company has a professional third-party sponsor introduction, and investors can access current financial disclosures and Real-Time Level 2 quotes for the company on www.otcmarkets.com.
Akobo Minerals places great emphasis on meeting and exceeding industry standards, fully complying with all aspects of the JORC code, 2012. For detailed information on their adherence to this code, please refer to www.jorc.org. Akobo Minerals' unwavering commitment to ethical practices, community engagement, and environmental responsibility positions them as a formidable force in the evolving landscape of the Ethiopian mining sector.