Akobo Minerals announces first cash flow estimate for its Segele gold mine in Ethiopia

Investors invited to corporate update at lunch presentation on 25 May 2022

OSLO, 23 May 2022: Akobo Minerals AB (publ) (EURONEXT: AKOBO), the Scandinavian-based Ethiopian gold exploration and boutique mining company, today released the first ever cash flow estimate for its Segele mine, which is expected to commence production at the beginning of 2023.


The company will be hosting a lunch presentation at SpareBank 1 Market’s office in Oslo on Wednesday 25 May 2022, at 11.00 am CET to present the estimated numbers. To register, please contact: corporateaccess@sb1markets.no.


This first cash flow estimate announcement follows the signing of a deal with Solo Resources as a partner to develop the Segele processing plant; an updated Mineral Resource estimate from SRK Australasia; and good visibility on other cost elements for its operations. As was expected, the economics are very positive, with high and bonanza grade intersects, as well as ore body close to surface and still open at depth.


The updated Mineral Resource estimate means a considerable step towards mining at Segele. A critical aspect of this was the upgrade to Indicated Resources which has allowed the company to move forward with a resilient mining schedule. This schedule has given the company the knowledge needed to create a reliable prediction of when and how the mineralization can be extracted and processed.


The cash flow estimate is as follows:



























Income tax
















Free carry








Free cash flow









The model, based upon Akobo Minerals’ current Mineral Resource estimate, shows a highly profitable mine operation with an estimated free cash flow of USD 50 million up until the end of 2024.



Jørgen Evjen, CEO of Akobo Minerals, stated: “This is the first time we have released cash flow numbers for our Segele mine operation, – adding up to 50 million dollars by the end of 2024. With more targets being explored and the fact that the ore body is open at depth, we are confident that mining operations will continue for many years beyond 2024.”


The cash flow model is based upon the following assumptions:

  • Average gold price of 1,800 USD per ounce for the period 2023-2024
  • Royalty fee to the Ethiopian Government of 5% of revenues
  • Community fund payment of 2% of net profits
  • Free carry to federal and regional governments of 7 % of net profits
  • Income tax of 25%


Other relevant assumptions are from the scoping study, namely:






Inferred and Indicated Mineral Resource 

94ktonnes@ 22.7g/t 


Improved from Scoping Study.  SRK MRE 22nd April 2022. 


USD 8.042m 

50% fixed cost due to processing plant contract. Remaining factored Scoping Study estimate. 


USD 87 / tonne 



USD 137 / ounce 

 Without royalties


All in Sustaining Costs (AISC) 

USD 243 / ounce 

7% royalties at 20g/t and 1,500 USD/oz 

LOM Plant Head Grade 


Factored from dilution.

Underground Development Time 

Ongoing throughout life of mine

Stoping commences in May 2023

Production Rate 

6,500 tonnes per month 

At peak production 

Metallurgical Recovery 


Improved from Scoping Study on metallurgical test work

Extraction Rate 






Ore Loss 



Plant Throughput 



Negotiated royalty


7% in the Segele scoping study


The underground mine design has changed slightly from the scoping study to allow for the development of two steeply angled winzes in addition to the planned incline shaft. These winzes will allow for fast access to the mineralization.


After considerable investigation, Akobo Minerals considers that the key cost assessments released from the Scoping Study of September 2021 are still valid. Since the scoping study was released, the company has made advances in several key areas. The signing of the fixed price processing plant contract has provided certainty to half of the upfront capital cost. Negotiations with a mining contractor have also brought greater certainty to the cost of establishing the underground operation, thereby further improving confidence in the anticipated up-front capital costs.


The financial information for year 2022 and onwards is only an illustrative example on potential future development, based on a flat gold price of USD 1,800/ounce and USD/NOK of 9. Any deviations in actual development of these assumptions may have potentially material impact on the actual financial performance of the company.



For more information, contact:

Jørgen Evjen, CEO, Akobo Minerals

Mob: (+47) 92 80 40 14

Mail: jorgen@akobominerals.com

LinkedIn: www.linkedin.com/company/akobominerals

Web: https://akobominerals.com/www.akobominerals.com


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 licence and is working to start up mining of its very promising Segele target. It has an Inferred and Indicated Mineral Resource yielding a world-class gold grade of 22.7 gr/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 it places environment, social and environment (ESG) at the heart of its activities – as demonstrated by a planned industry-leading community 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, while 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.


Important information

This release is not for publication or distribution, directly or indirectly, in or into Australia, Canada, Japan, the United States or any other jurisdictions where it would be illegal. It is issued for information purposes only and does not constitute or form part of any offer or solicitation to purchase or subscribe for securities, in the United States or in any other jurisdiction. The securities referred to herein have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), and may not be offered or sold in the United States absent registration or pursuant to an exemption from registration under the U.S. Securities Act. Akobo Minerals does not intend to register any portion of the offering of the securities in the United States or to conduct a public offering of the securities in the United States. Copies of this publication are not being, and may not be, distributed or sent into Australia, Canada, Japan or the United States.



220523 – Akobo Minerals – Corporate Update May 2022 – FINAL