Akobo Minerals (AKOBO) Q3 2024 earnings summary

Executive summary

• Transitioned from exploration and construction to gold production at the Segele mine, with first gold smelting, sales, and cash inflow achieved in Q4 2024.

• Inaugurated the Segele mine with strong support from local and national government, including the Ethiopian Prime Minister, highlighting national significance and community impact.

• Strengthened management team and secured a NOK 25.5 million convertible loan to enhance financial flexibility.

• Initial gold sales to National Bank of Ethiopia at approximately USD 2,400/oz; preparing for first gold export.

• Focused on scaling production, optimizing recovery, and expanding exploration footprint.

Financial highlights

• No revenues recorded in Q3 2024; first revenues from gold sales expected in Q4 2024.

• November gold production exceeded expectations, covering all operating expenses for the month.

• Estimated $1 million in revenue as of end of November from gold sales to the National Bank of Ethiopia.

• Q3 2024 operating expenses were SEK 16.7 million, with a loss of SEK 48.4 million and cash balance at SEK 6.6 million at period end.

• Operating costs stable at approximately $480,000 per month.

Outlook and guidance

• Preparing for first gold export to Switzerland, expected by end of December or January.

• Short to medium-term production targets: 25 days of blasting per month, 25 tons of ore moved daily, average grade of 35g/t, and gravity recovery rate up to 65%.

• Plans to reprocess tailings through CIL tanks for higher recovery, with commissioning expected in Q1 2025.

• Exploration drilling to resume imminently, with focus on near-mine and new targets, including Gilo license application.

• Strategic priorities include responsible scaling, minimizing gold losses, and expanding exploration.