Akobo Minerals announces third quarter 2022 results
OSLO, 24 November 2022: Akobo Minerals AB (publ) (EURONEXT: AKOBO), the Scandinavian-based Ethiopian gold exploration and boutique mining company, today reported its third quarter 2022 results. As the company is still in the project development phase prior to production start-up in early 2023, there was no income in the third quarter of the year. The net loss for the period was SEK 17.2 million. The company has a convertible loan of SEK 50.1 million and a cash position of SEK 15.6 million.
- A 'de-risked' project on all levels
- Fully-funded to production start
- Gold production on schedule
- Significant cash flow expected
- Potential for dividend after repayment of loan
- The first new gold producer in Ethiopia since Legadembi in 1994
- First mover advantage, with several expansion possibilities identified
In the third quarter of 2022
- Successful core drilling at the Joru project including 12.5g/t over 0.5m
- Gold confirmed in a new mineralised zone, west of the main Segele mineralisation
- Contract signed with IW Mining to provide underground mining services
- Secured USD 5m convertible loan for the Segele mine development
After the period
- Peace agreement signed between Ethiopian government and Tigray People's Liberation Front
- Obtained collaborative agreements with several academic and training institutions
- Contract miner IW Mining deployed to site
- Broke ground at Segele with development of the incline shaft box cut
- Secured USD 8.5m funding in a loan facility from US based Monetary Metals
FINANCIAL PERFORMANCE OVERVIEW
- Results for the period SEK -17.2 million*
- Results year to date SEK -19.6 million
- Cash flow for the period SEK 10.8 million
- Cash end of period SEK 15.6 million**
- Total equity end of period SEK 56.9 million
- Total external debt end of period SEK 63.7 million
* Incl. SEK 8.8 million in operational costs from Etno Mining. Previously capitalised.
** Incl. SEK 50 million raised in convertible bond.
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: https://inqrate.com/xtravideos/akobo-minerals-q3-22-presentation-24-november/
For more information, contact:
Jørgen Evjen, CEO, Akobo Minerals
Mob: (+47) 92 80 40 14
About Akobo Minerals
Akobo Minerals is a Scandinavian-based gold exploration and boutique mining company, currently holding an exploration license covering 182 km2 and with an ongoing mine development in the Gambela region and Dima Woreda, Ethiopia. The company has established itself as the leading gold exploration company in Ethiopia through more than 12 years of on-the-ground activity.
Akobo Minerals holds a 16 km2 mining license and is working to start up mining of its very promising Segele target. It has an Inferred and Indicated Mineral Resource of 68.000 ounces yielding a world-class gold grade of 22.7 g/ton, combined with an estimated all-in sustaining cost (AISC) of 243 USD per ounce. Still open to depth, the gold mineralised zone continues to expand and will have a positive impact on future resource estimates and mine life. The exploration license holds numerous promising exploration resource-building prospects in both the vicinity of Segele and in the wider license area.
Akobo Minerals has an excellent relationship with local communities all the way up to national authorities and we place environment and social governance (ESG) at the heart of our activities – as demonstrated by a planned industry-leading extending shared value program.
Akobo Minerals has built a strong local foothold based upon the principles of sound ethics, transparency, and communication, and is ready to take on new opportunities and ventures as they arise. The company is uniquely positioned to become a major player in the future development of the very promising Ethiopian mining industry.
Akobo Minerals has a clear strategy aimed at building a portfolio of gold resources through high-impact exploration and mining, whilst adhering to a lean business operation. The company is headquartered in Oslo and is listed on the Euronext Growth Oslo Exchange under the ticker symbol, AKOBO.