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Scandinavian gold producer Akobo Minerals is celebrating a significant milestone, reporting first-ever positive earnings before interest, taxes, depreciation and amortisation (EBITDA) of SKr6.9-million for the third quarter ended September 30. This achievement marks a turning point for the company, which also saw revenues climb to SKr22.9-million during the period. Backed by strong gold prices, the company ended the quarter with a solid cash position of SKr31.2-million, underscoring its improved financial stability and cash flow potential.
The positive financial results were driven by continued output from the company’s Segele mine in Ethiopia. Gold production for the quarter reached approximately 21 kg at an impressive grade of 29.7 g/t. This output brought the cumulative production from the start of operations to September 30 to around 51.5 kg, a figure that has since climbed further to about 65 kg as of November 30. The combined value of the company’s cash and unsold gold position remained robust, totalling about $4.3-million at the end of November, providing a substantial buffer for ongoing development.
Akobo is simultaneously pushing forward with critical infrastructure development at the Segele site. The headgear fabrication is complete and the structure has been shipped from the assembly location, paving the way for the next phase of mining operations. The vertical shaft is advancing steadily, now 20 metres into hard rock out of a planned 60 metres, with preparations for the headgear’s concrete foundation already underway. Further enhancing operational efficiency, the installation of two water treatment plants is progressing, which will improve process water supply and increase the availability of potable water on site. Finally, camp upgrades are moving forward, aiming to boost accommodation capacity and overall general facilities for the workforce.
