Akobo Minerals (AKOBO) Q2 2024 earnings summary

Executive summary

• Commissioned the Segele processing plant and produced first gold, marking transition to daily mining operations and batch processing from the Segele ore body.

• Completed financial restructuring, including equity raise, debt conversion, and gold loan restructuring, enhancing flexibility for Segele mine development.

• Benefited from record-high gold prices, significantly boosting the value of Segele resources and projected cash flow.

• Applied for a new large exploration license (Gilo), ensuring future growth and sustainability.

• Strong ESG policy recognized, enabling premium gold sales and solid community relations.

Financial highlights

• No revenue or income reported in H1/Q2 2024 as the company remains in project development and ramp-up.

• Cash burn and operating expenses lower than anticipated, with cash at end Q2 2024 at SEK 19.4 million.

• Result after financial items for Q2 2024 was a loss of SEK 31.2 million; YTD net loss SEK 80.3 million.

• Proceeds from share issue YTD: SEK 129.3 million; total external long-term debt: SEK 185.8 million.

• Gold price at end Q2 2024: $2,325/oz, supporting future cash flow and resource value.

Outlook and guidance

• Production ramp-up ongoing with first and second gold batches produced; production estimates remain uncertain during ramp-up.

• Lower burn rate than anticipated, moving closer to break-even.

• Ongoing discussions with partners to address short-term capital requirements and increase liquidity.

• Near-term triggers include plant upgrades, resource drilling, and potential expansion of processing capacity.

• Long-term vision to become Ethiopia's leading mining company, leveraging first-mover advantage in an underexplored region.