Scandinavia-based gold producer Akobo Minerals has delivered its strongest quarter since production started at its Segele mine, in Ethiopia, with record gold production and earnings before interest, taxes, depreciation and amortisation (Ebitda) as well as considerable debt repayment, while continuing to invest in future growth.

Gold production reached about 37 kg during the quarter ended June 30, the company’s highest quarterly production to date, at an average recovered grade of 38.5 g/t, which the company says is among the highest grades reported by any operating underground gold mine globally.

About 134 kg cumulative doré gold production has been achieved since the start of operations.

Production resumed during June following temporary operational disruptions earlier in the quarter.

Based on preliminary management accounts, Akobo generated revenue of about SKr57.3-million ($6.1-million) and Ebitda of about SKr40.7-million ($4.3-million) for the quarter.

Strong cash generation supported continued mine development and considerable repayments to Monetary Metals for a gold loan facility while maintaining a solid liquidity position.

Monetary Metals initially provided funding in November 2022 to support development of Segele and has remained a committed partner throughout.

About $3.4-million was repaid to Monetary Metals during the quarter.

Cash at the end of the quarter amounted to SKr31.5-million ($3.4-million).

THIRD QUARTER
Akobo further reports that its doré production for the third quarter to September 30 is about 35 kg, bringing cumulative production since the Segele mine’s startup to about 169 kg.

About $3-million was repaid to Monetary Metals during September, bringing total repayments during the year to about $7-million.

Verdant Capital was appointed as financial adviser to support refinancing of existing debt facilities. Preparations for official launch are under way.

Onboarding with a London Bullion Market Association-approved refinery and preparations for first gold exports continued during the third quarter.