Akobo Minerals AB, the Scandinavian-based Ethiopian gold producer, has reported its second quarter results 2025. The company reported revenues of SEK 9.6 million and an EBITDA of SEK -3.1 million.
The company covered part of its operating costs in the quarter, holding a cash position of SEK 7.0 million. The company expects revenues to continue increasing in the third quarter and anticipates delivering positive cash flow from operations for the first time.
Latest key events
- The gold price continued to remain historically high, surpassing USD 3,700/oz.
- July production delivered a world-class average grade of 45 g/t, with gold purity above 90%.
- Mining Progress and Vertical Shaft Development:
- Two new large shaking tables installed and successfully tested.
- Headgear for the new vertical shaft, identified as the long-lead item, is in production.
- Heavy machinery has arrived on site to support the start of vertical shaft work.
- The vertical shaft team has mobilised, with preparatory work in progress.
- Johnny Swanepoel from Sutton Global joined as the new Operations Manager at the Segele site. Johnny brings extensive experience in mining and processing, with a proven track record of maximizing gold recovery and ensuring high purity from ore.
- Ethiopian Investment Holdings (EIH) became a shareholder in Akobo Minerals through a USD 3 million private placement, subscribing for 15 million new shares at USD 0.20 per share. As the sovereign investment arm of the Federal Democratic Republic of Ethiopia, EIH supports strategic projects in the mining sector, contributing to employment, foreign exchange generation, and national economic growth.
- Akobo completed its financial restructuring by amending and restating the loan agreement with Monetary Metals and converting remaining convertible bonds into shares. Key elements include:
- Interest rate reduced from 30% to 22% per annum, with an interest-free period from 15 August 2025 to 15 February 2026.
- Quarterly repayments beginning in March 2026, with loan maturity extended to 31 July 2027.
- Gold loan limit set at 10,490.1 troy ounces before default.
- Issuance of new warrants to Monetary Metals, increasing their entitlement from 2% to 3% of Akobo’s fully diluted market capitalisation, with a strike price of USD 0.20 per share on new warrants.
- Conversion of the two remaining convertible bonds into shares.
Second quarter financial performance overview
- Revenue for the period: SEK 9.6 million
- Revenue YTD: SEK 14.1 million
- EBITDA for the period: SEK -3.1 million
- EBITDA YTD: SEK -13.1 million
- Cash flow for the period: SEK -0.7 million
- Cash flow YTD: SEK -21.9 million
- Cash at the end of the period: SEK 7.0 million
- Total equity at the end of the period: SEK -182.3 million
- Total external long-term debt at the end of the period: SEK 346.5 million
