East African Mining News Unearthing Mining Opportunities in East Africa
Related Articles
Akobo Minerals, the Scandinavian gold explorer with its sights set firmly on Ethiopia, has encountered a temporary setback in its production timeline. Nationwide fuel shortages and evolving customs procedures threw a spanner in the works, delaying the mine’s official launch.
However, amidst the recent hurdles, Akobo has not been twiddling its thumbs. The company has secured crucial funding, brought in seasoned industry professionals, and streamlined its operations to maximize efficiency. This strategic maneuvering positions Akobo for a strong start, with an updated mine plan predicting a potential revenue windfall of $20 million in the first few months of production.
Gone are the days of relying on convertible debt; Akobo has restructured its obligations, leaving only long-term debt with Monetary Metals. This financial prudence is further bolstered by strategic discussions with industry heavyweights, all aimed at mitigating risks and optimizing production.
A key addition to the team is Wondwossen Zeleke, a seasoned consultant boasting over 15 years of leadership experience in the Ethiopian mining and oil sectors. His expertise will be invaluable in navigating the local landscape and ensuring smooth operations.
Fuel supply is no longer a concern. Akobo has secured a direct agreement with the Ethiopian National Oil Company, guaranteeing a reliable flow of the precious resource. Additionally, partnerships with Leeder Industrial and Airland Logistics are solidifying the supply chain, while a focus on local sourcing promises to further streamline costs.
The most exciting news lies in the revised mine plan. This meticulous rework reveals a significant improvement, with a projected $9 million EBITDA boost in the first year alone. The initial months of full production are predicted to yield a staggering $20 million, roughly translating to 10,000 ounces of gold.
Gold prices have also played their part, with the recent upward trend significantly increasing the value of Akobo’s Segele resource compared to previous estimates.
While the exact launch date remains elusive, Akobo is expected to be up and running by July or August. With a clear focus on efficiency, strategic partnerships, and a revitalized mine plan, this Scandinavian gold hopeful is primed for a lucrative Ethiopian adventure.
