Akobo Minerals Ab · OSL:AKOBO
Akobo Minerals Ab — Corporate Update (May 2022)
34 slides from Akobo Minerals Ab's corporate update, May 2022
Slide 1: Corporate Update
Corporate Update AKOBO MINERALS AB May 2022
Slide 2: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute an offer or an invitation to buy, subscribe or sell the securities being registered on Euronext Growth (Oslo). This presentation has not been approved or reviewed by, or registered with, any public authority or sto
Slide 3: Company highlights
Company highlights Inferred and Indicated Mineral Resource of 68.811 oz gold @ 22,7g/t Au. Indicated Mineral Resources Groundbreaking alone of 41.000 oz gold @ 40.6 g/t. Estimate performed by SRK Consulting (Australasia) Pty Ltd. large-scale mining 1 license with vast Better than expected gold r
Slide 4: Corporate structure and shareholder overview
Corporate structure and shareholder overview Corporate structure and listing Shareholder overview (May 2022) Listed on Euronext Growth in Oslo (ticker: AKOBO) with a current market Shareholder # of shares % ownership capitalization of NOK 300 million (USD 30 million) and approx. 3,500 Pir Invest H
Slide 5: Table of Contents
Table of Contents II Company Overview III License, Resources and Mineralization IV Business Plan & Financials 5
Slide 6: Akobo Minerals is an exploration and mining company …
Akobo Minerals is an exploration and mining company … Akobo Minerals is a Scandinavian-based gold exploration Listed on Euronext Growth and boutique mining company in Oslo, Norway Exploration and mining licenses held in the Gambela region and Dima Woreda, Ethiopia The leading gold exploration compan
Slide 7: … with significant gold production potential
… with significant gold production potential Exploration since 1940 with consistent results Location of license in Akobo, Ethiopia No previous modern mining undertaken in the region 182 km2 exploration license – recently renewed An attractive gold-mining jurisdiction 710 km from Addis 16 km2 mining
Slide 8: Lean organizational setup with vast complementary experience
Lean organizational setup with vast complementary experience Jørgen Evjen Johan Sjöberg Dr. Matt Jackson Dr. Cathryn MacCallum Tesfaye Medhane Chief Executive Officer Chief Exploration Officer Chief Operational Officer Head of ESG General Manager (Etno) More than 20 years experience More than 18 yea
Slide 9: More than two decades of experience in the Akobo region
More than two decades of experience in the Akobo region 2010 2010-19 2020 2021 • Akobo Minerals • Significant exploration • Renewed license for three • Established resource established in both work done on the license additional years estimates on Segele and Norway and Ethiopia. completed scoping st
Slide 10: From pure-play exploration to an established mining company
From pure-play exploration to an established mining company Ethiopia and Akobo is an attractive jurisdiction for the mining sector Ethiopia has been one of the fastest growing economies growing at an average annual rate of 10 years 10% for the past 15 years1 Exploration license Dedicated focus o
Slide 11: Uninterrupted operations and prudent ramp-up of activities
Uninterrupted operations and prudent ramp-up of activities Significant drilling activity Accumulated assays Employees (Meters drilled) 10,684 69 19,768 8,410 15,359 39 41 5,594 38 32 33 9,393 4,506 4,054 6,648 7,245 2,887 3,363 23 23 5,718 2,419 2,448 17 4,141 2,828 2,897 1Q'20 2Q'20 3Q'20 4Q'20 1Q'
Slide 12: Akobo is “low-hanging fruit” for modern gold exploration
Akobo is “low-hanging fruit” for modern gold exploration A New Frontier for Gold Exploration Part of the Arabian Nubian shield – home to gold Located in the Western Ethiopian Shield, an ancient mining region largely ignored by modern exploration 1,000 kg extracted by hand in 18 months1 Legadem
Slide 13: Strong ESG policy and active involvement with the local community
Strong ESG policy and active involvement with the local community Dedicated to support the need for responsible Sustainable Natural Resources resource stewardship Management Plan (“SNRMP”) • Akobo Minerals is dedicated to supporting the local community through Development of a structure for managing
Slide 14: Table of Contents
Table of Contents II Company Overview III License, Resources and Mineralization IV Business Plan & Financials 14
Slide 15: Mining and exploration license awarded – major milestones
Mining and exploration license awarded – major milestones Map of the license Area Attractive licenses recently awarded and renewed Licenses granted by the ministry of Mines and Petroleum ensures Akobo Minerals the following: The right to continue exploration in the 182 km2 for a minimum of 3 years
Slide 16: Recent scoping study indicates low-risk high margins operations
Recent scoping study indicates low-risk high margins operations “Estimate of 243 USD per ounce for all in sustaining cost (AISC) vs 1,048 USD per ounce as Key takeaways from test work: mining industry average” Metric Figure Notes 1 Recovery is possible from very simple industry standard processing o
Slide 17: The Segele deposit – successful extension drilling ongoing
The Segele deposit – successful extension drilling ongoing Artisanal pit 8.9g/t 12.9g/t 6.2g/t 88g/t Key metrics Total Mineral Resource 69 kOz, 22,7 g/t New Drill Targets Indicated resource 41 kOz, 40,6 g/t Core Drilling Holes AISC USD 243/oz Conservative 81 % extraction rate Inferred Minera
Slide 18: Great potential from identified exploration targets in the Segele area
Great potential from identified exploration targets in the Segele area Trench 30 Comments Segele Resource Extension Drilling Visible gold and new mineralisation style identified from geology section in the area Segele Mine Project Also provides an improved 3D geological model to place the resour
Slide 19: Highly successful exploration and resource definition
Highly successful exploration and resource definition Segele May Be in the Top Tier of High-Grade Gold Mines Highly Successful Exploration 25 Grade (Au gpt) Cash cost (USD/oz) 1000 Segele 22.7 21.5 900 Potentially high cash flow small-scale mining Potential to expand resources both sides within
Slide 20: Segele Resource Estimate Verifies Outstanding Potential
Segele Resource Estimate Verifies Outstanding Potential Mineral Resources as of 22 April 2022 JORC Mineral Resource Estimate Summary Cut-off grade 1 Au Gold Ounces Classification K tonnes (Au g/t) (g/t) (kOz) The April 2022 Segele Gold Deposit Mineral Resource estimate has been classified in Measure
Slide 21: 15km strike potential including countless exploration targets
15km strike potential including countless exploration targets Map of the license Area Ore Genesis Models and Mineralization Styles Several mineralization styles present SEGELE MINING AREA: A high- and bonanza-grade orogenic gold deposit. Free gold hosted by within metamorphosed ultramafics overpri
Slide 22: Table of Contents
Table of Contents II Company Overview III License, Resources and Mineralization IV Business Plan & Financials 22
Slide 23: Clearly defined strategy to move from exploration to boutique mining
Clearly defined strategy to move from exploration to boutique mining Boutique mining of the Segele deposit Market and Financing Strategy Potential to accelerate the current exploration plans with cash-flow NOK 87m raised in capital during 2020/21 and shares are currently listed generating boutiq
Slide 24: Corporate planning for low-risk operations
Corporate planning for low-risk operations Mine Entrance Construction Incline Shaft Development Stoping Operations CONTRACT MINING OPERATIONS All Hiring, Equipment Purchase and Training and Operations completed by experienced contractor First limited production expected before end 2022 with gradual
Slide 25: Basic and well-known gold mining operations expected
Basic and well-known gold mining operations expected Segele Map Area Comments • The ore will be accessed by an incline shaft, currently planned to be 290m in length, reaching a vertical depth of 160m below surface. Easily extendable to reach deeper ore at low Airstrip Segele incremental cost Resourc
Slide 26: Signed contract for delivery of processing plant – a fundamental milestone
Signed contract for delivery of processing plant – a fundamental milestone Key highlights Tailored to possess the highly Cyanidation gold rich Segele mine ore with and inferred and Indicated Mineral Resource Estimate of 69 kOz gold @ 22.7 g/t Significantly higher than expected grade of 31.03 g/t
Slide 27: High margin cash flow and a pre-tax project NPV of USD 63.5 million
High margin cash flow and a pre-tax project NPV of USD 63.5 million Project financials and key assumptions Quarterly cash flow from production start • The model, based upon Akobo Minerals’ current Mineral Resource 40 estimate, shows a highly profitable mine operation with an estimated free 35 cash f
Slide 28: High activity level with good track-record of ahead of schedule
High activity level with good track-record of ahead of schedule 2022 Q2 Q3 Q4 2023 Q2 Q3 Q4 2024 ON TRACK Processing Plant Construction ON TRACK Contract Miner Negotiations Contract Mining Underway Operational activity Gold production ON TRACK Segele and Adjacent Area Drilling ON TRACK Akobo Explora
Slide 29: Company highlights
Company highlights Large-scale mining license with vast resource potential Attractive and well-established mining jurisdiction Experienced team and attractive corporate setup Established player with strong support from authorities 29
Slide 30: Appendix
Appendix 30
Slide 31: More than two decades of experience in the Akobo region
More than two decades of experience in the Akobo region 1998 - 2010 2010 - 2019 2020 2021 2022 and onwards 1998-99: Predecessors 2010: Granted a large-scale • Started new core drilling • Established the first resource Renewed current exploration to Akobo Minerals exploration license in the Akobo p
Slide 32: Highly experienced board of directors with complementary skillset
Highly experienced board of directors with complementary skillset Hans Olav Torsen Jørn Christiansen Helge Rushfeldt Chairman of the board Board member Board member • Experienced board member with a • Geophysicist with extensive experience • Owner and general manager of Promin, a demonstrated histor
Slide 33: Gold has become a strategic asset benefiting from diverse demand
Gold has become a strategic asset benefiting from diverse demand Definition of grading (gold grams per tonne)1 Gold Valuation Framework Open Pit Open Pit Underground Mine According to an analysis carried out by Reuters, the price performance of gold can be explained by the interaction of four key dr
Slide 34: Cash flow model assumptions
Cash flow model assumptions Metric Figure Notes 94ktonnes@ 22.7g/t Inferred and Indicated Mineral Resource Improved from Scoping Study. SRK MRE 22nd April 2022. 68,811oz 50% fixed cost due to processing plant contract. Remaining factored Scoping CAPEX USD 8.042m Study estimate. Total LOM OPEX USD 87