Akobo Minerals announces results for the second quarter of 2023
OSLO, 07 September 2023: Akobo Minerals AB (publ) (ticker: AKOBO), the Scandinavian-based Ethiopian gold exploration and boutique mining company, today reported its second quarter 2023 results. As the company is still in the project development phase prior to production start-up, there was no income during the second quarter of the year. The net loss for the quarter was SEK 31.1 million with a cash position of SEK 25.1 million.
Second quarter of 2023
- Construction of the main processing plant began
- The small pilot plant was made fully operational
- First gold was produced from the Gingibil quartz vein system by way of bulk sampling
- The largest Segele mine underground accessway - the incline shaft – advanced to 37 metres in length
- The two smaller entries into the upper section of the Segele ore body – the eastern and western winzes – both extending down to 26 metres in length
- Challenging weather conditions – with historically heavy rain and flooding in the region
- Internal restructuring began in order to set the company up for the production phase
- Helge Rushfeldt was appointed as Head of Mining Operations
After the quarter closed
- A refinery agreement was signed with the world-renowned gold refiner, MKS PAMP
- Results from the Gingibil bulk sampling suggest ore grades are present at surface
- The Segele incline shaft has advanced to 55 metres in length
- The eastern and western winzes now extend to 28 metres and 41 metres, respectively
- The community ‘ecohub’ facility began construction from local waste plastic bottles
- Dr. Steven Rupprecht was appointed as Mine Manager and Strategic Adviser
- Process initiated to take over all mining operations from IW Mining
- Application filed to begin trading of the AKOBO share on the US OTCQX market
- A convertible loan of NOK 34.4 million was secured
Q2 FINANCIAL PERFORMANCE OVERVIEW
- The result for the period: SEK -31.1 million
- The result for the year-to-date: SEK -68.9 million
- Cash flow for the period: SEK -23.5 million
- Cash at the end of the period: SEK 25.1 million
- Total equity at the end of the period: SEK -35.9 million
- Total external long-term debt at the end of the period: SEK 143.9 million
- Convertible loan of SEK 53 million will be converted to equity beginning of July 2023
KEY COMPANY HIGHLIGHTS
- A 'de-risked' project
- 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 CEST. There will be a Q&A session following the management presentation.
The webcast will be available at: Akobo Minerals Webcast Q2 2023
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 13 years of on-the-ground activity.
Akobo Minerals holds a 16 km 2 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 USD 243 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 and Frankfurt Stock Exchange under the ticker symbol, AKOBO.
Akobo Minerals fully meets and complies with all parts of the JORC code, 2012. For further information, see https://www.jorc.org/