Akobo Minerals (AKOBO) Q4 2024 earnings summary

Executive summary

• Achieved first-ever revenue and transitioned to commercial gold production at Segele after 15 years of development, with the mine formally inaugurated by the Ethiopian Prime Minister.

• Record gold prices significantly boosted cash flow potential and operational outlook.

• Leadership transitions underway, including new CEO and General Manager appointments and strengthened partnership with Sutton Global.

• Strategic partnerships advanced, including Sutton Global and ongoing discussions with the Ethiopian Sovereign Fund.

• Safety enhancements implemented, temporarily impacting production into mid-January.

Financial highlights

• Q4 2024 marked the first revenue quarter, with operating income of SEK 10.6 million and gold sales to the National Bank of Ethiopia.

• Q4 2024 net loss was SEK -48.2 million, improved from SEK -53.8 million in Q4 2023; year-to-date net loss was SEK -176.9 million.

• Cash flow from operating activities was negative SEK 3.6 million, but net cash flow for Q4 was positive SEK 21.8 million due to financing activities.

• Produced 18.5 kg of gold to date, with average grades significantly above industry norms (15–20 g/t vs. 1–3 g/t).

• Long-term debt increased to SEK 281.6 million, mainly from gold and convertible loans.

Outlook and guidance

• No change to overall production ambitions despite a slower start to the year; efficiency and grade improvements expected as new underground areas open and vertical shaft becomes operational.

• Focus on ramping up production, optimizing recoveries, and securing financial flexibility for expansion.

• Vertical shaft and CIL circuit expected to accelerate production and maximize gold recovery in 2025.

• Exploration activities to resume with surface mapping and sampling in Q1 2025.

• Ongoing evaluation of funding options to support long-term growth.