Akobo Minerals (AKOBO) Q3 2024 earnings summary

Executive summary

• Transitioned from exploration and construction to production at Segele mine, achieving first gold smelting and sales in Q4 2024.

• Inaugurated Segele mine with attendance from the Ethiopian Prime Minister, highlighting strong governmental and community support.

• Strengthened management team and secured 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 in Q3; Q4 marks the first quarter with gold sales revenue, totaling approximately $1 million by end of November.

• Q3 2024 operating expenses were SEK 16.7 million, with a result after financial items of SEK -48.4 million.

• Cash balance at end of Q3 2024 was SEK 6.6 million; total external long-term debt: SEK 217.6 million.

• Convertible loan of NOK 25.5 million issued with a 20% interest rate and 24-month term.

• Financing activities provided SEK 91.3 million YTD; net cash flow for Q3: SEK -12.8 million.

Outlook and guidance

• Ramping up Segele mine operations and optimizing high-grade ore processing.

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

• Plans to reprocess tailings for higher gold recovery 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.