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Scandinavian gold producer Akobo Minerals is accelerating development at its Segele mine in Ethiopia, reporting significant progress and signaling an imminent shift to positive cash flow.
For the second quarter of the year, the company posted revenues of SKr9.6-million, and it anticipates this figure to increase in the third quarter, projecting the company’s first-ever positive cash flow from operations. This follows a loss of earnings before interest, taxes, depreciation, and amortization of SKr3.1-million for the second quarter, during which the firm covered part of its operating costs.
The momentum is supported by “world-class” production grades, with July’s output averaging a remarkable 45 g/t at a gold purity above 90%. This performance comes as the gold price remains historically high, surpassing $3,700/oz.
Operationally, the miner has advanced its vertical shaft development, a critical long-lead item. Headgear is now in production, and heavy machinery has arrived on-site, with the dedicated vertical shaft team mobilized and preparatory work underway. The company has also successfully installed and tested two new large shaking tables.
In a key strategic development, Ethiopian Investment Holdings (EIH), the sovereign investment arm of Ethiopia, became a shareholder, subscribing to 15 million new shares through a $3-million private placement. EIH’s involvement is expected to support the project’s contribution to employment and foreign exchange generation.
The company also completed a significant financial restructuring, amending its loan agreement with Monetary Metals. This includes converting remaining convertible bonds into shares, securing a reduced annual interest rate of 22% (down from 30%), and benefiting from an interest-free period until February 15, 2026. Quarterly repayments are slated to begin in March 2026, with the loan maturity extended to July 31, 2027.
The Segele site has also welcomed new operations manager Johnny Swanepoel from Sutton Global, who brings extensive experience focused on maximizing gold recovery. Akobo closed the reporting period with a cash position of SKr7-million.
