Akobo confident its Segele mine will generate $50m in free cash flow in two years

23rd May 2022 By: Marleny Arnoldi - Deputy Editor Online

Ethiopia-focused gold miner Akobo Minerals has declared an inaugural cash flow estimate for the Segele mine of $42-million in 2023 and $15.1-million in 2024.

The mine is on track to start producing gold early in 2023.

The first cash flow estimate follows Akobo signing a deal with Solo Resources as a partner to develop the Segele processing plant, as well as an updated mineral resource estimate undertaken by consultancy SRK Australasia.

Based on the current inferred and indicated mineral resource estimate of 94 000 t grading 22.7 g/t gold, for 68 811 oz, the company is confident that Segele will be a highly profitable mine operation with estimated free cash flow of $50-million up until the end of 2024.

The cash flow model is based on the assumption of an average gold price of $1 800/oz for 2023 and 2024.

“With more targets being explored and the fact that the orebody is open at depth, we are confident that mining operations will continue for many years beyond 2024,” says CEO Jørgen Evjen