Akobo Minerals (AKOBO) Q1 2025 earnings summary

Executive summary

• Commercial gold mining and production commenced at the Segele mine in southwestern Ethiopia, with ongoing expansion, exploration, and a 15-year presence in the country.

• Operations focused on stabilizing production, enhancing safety, and preparing for vertical shaft development, with leadership changes and new mining professionals strengthening the team.

• Record high gold prices and access to higher-grade ore zones are supporting an improved production outlook and cash flow potential.

• Temporary mining halt for safety upgrades led to lower Q1 output, but production recovered as the quarter progressed.

Financial highlights

• Q1 2025 revenue was SEK 4.5 million, with EBITDA at SEK -10 million and a net loss of SEK -55.3 million.

• Cash balance at quarter end was SEK 7.8 million, down from SEK 28.9 million at the start of the year.

• Cash flow from operating activities was SEK -21.0 million for Q1 2025.

• Total external long-term debt reached SEK 314.4 million.

• Gold production totaled 20.5 kg, with ambitions to stabilize at 5 kg/month to cover operational costs.

Outlook and guidance

• Targeting minimum 5 kg gold production per month to cover costs until vertical shaft is operational, which is expected to boost output to 40–60 kg/month.

• Plans to commence vertical shaft work immediately upon securing funding, with estimated capex of USD 1–1.5 million.

• Ongoing efforts to secure up to $6 million in offtake agreements, explore equity funding, and close loan restructuring.

• Production is expected to stabilize and improve in Q2 2025 as access to higher-grade zones increases.