Akobo Minerals Ab · OSL:AKOBO
Akobo Minerals Ab — Q4 2022 Earnings Presentation
29 slides from Akobo Minerals Ab's earnings presentation, Mar 9, 2023
Slide 1: Fourth quarter 2022 Presentation
Fourth quarter 2022 Presentation AKOBO MINERALS AB (publ) 09.03.202
Slide 2: Disclaimer
Disclaimer This document has been used during an oral presentation. Therefore, this document is incomplete without the oral explanations, comments and supporting instruments that were submitted during the referred presentation. To the extent permitted by law, no representation or warranty is given,
Slide 3: Table of Contents
Table of Contents I Introduction II Operational update III Financial update IV Q&A 3
Slide 4: Akobo Minerals
Akobo Minerals Scandinavian based gold exploration and mining company with assets in Ethiopia Corporate structure and listing Transparent corporate structure Stock listed on Euronext Growth in Oslo and Frankfurt Stock exchange (ticker: AKOBO) with a current market capitalization of NOK 300 million
Slide 5: Strong corporate foundation with a 'de-risked' mining project
Strong corporate foundation with a 'de-risked’ mining project Build a strong local foothold, based upon the International recognised ESG program in place principles of good ethics, transparency and Long-term visibility with current exploration and mining communication licenses in place Minin
Slide 6: Significant exploration and high margin gold production potential
Significant exploration and high margin gold production potential Segele Mineral Resource estimate by SRK Inferred and Indicated Mineral Resource of 68.811oz gold @ 22,7g/t Au Indicated Mineral Resources alone of 41.000 oz gold @ 40,6g/t High margin gold production envisaged All-in Sustaining Costs
Slide 7: Key events during fourth quarter
Key events during fourth quarter • The first parts of the processing plant arrived at the site • The contract miner, IW Mining, deployed to the site and broke ground at the Segele mine • The company secured a 5,000-ounce gold loan, equal to USD 8.5 million • Agreement was reached to cease all artisa
Slide 8: Key events after the period
Key events after the period • Some delay expected in startup of processing plant, which also impacts liquidity • Positive dialogue with main shareholders to address potential liquidity constraints through issuance of additional loan • New exploration target discovered at Gindaba - perhaps the most s
Slide 9: Financial performance overview
Financial performance overview Financial figures Remarks • Operating loss for the quarter of SEK 34.2 million • The company is still in the project development phase • Operating loss for the year of SEK 53.8 million prior to production start-up. There was no income • Cash flow for the quarter of SEK
Slide 10: Estimated free cash flow of USD 50 million from the Segele mine
Estimated free cash flow of USD 50 million from the Segele mine The model, based upon Akobo Minerals’ current mineral resource estimate, shows a highly profitable mine operation at Segele, with an estimated free cash flow of USD 50 million for the current 27-month life of mine Key assumptions in the
Slide 11: Slide 11
Slide 12: Table of Contents
Table of Contents I Introduction II Operational update III Financial update IV Q&A 12
Slide 13: The Segele deposit and nearby exploration targets
The Segele deposit and nearby exploration targets Artisanal pit 8.9g/t 12.9g/ 6.2g/t t 88g/t Key metrics ▪ Total mineral resource 69,000 oz, 22,7 g/t New Drill Targets ▪ Indicated resource 41,000 oz, 40,6 g/t Core Drilling Holes ▪ AISC USD 243/oz ▪ Conservative 81% extraction rate Inferred Mineral R
Slide 14: Key contracts secured for low-risk operation
Key contracts secured for low-risk operation CONTRACT MINING OPERATIONS Mine entrance construction IW Mining is a small, focused contractor having delivered a wide range of services such as conveyor belt installation, drop raise training, face advance improvement, equipment reclamation and undergrou
Slide 15: Preparation for underground mining is progressing
Preparation for underground mining is progressing ▪ Mining of incline shaft and winzes is underway ▪ Incline shaft developed 27m - speed will increase ▪ IW Mining Team fully manned and equipped ▪ With current manning and equipment over 2.000 tons per month can be mined ▪ With additional equipment ov
Slide 16: Processing plant supply nearing completion
Processing plant supply nearing completion ● All drawings, designs and fabrication are complete ● 42 shipments in total. 13 Arrived at Segele, 29 in transit ● Construction to start 1st April Significant challenges were overcome, primarily due to power cuts in South Africa. All parts have now been sh
Slide 17: Process Plant Foundations - Under construction
Process Plant Foundations - Under construction ● All designs are complete ● Highly trained civil engineering staff and consultants in work at site ● All machines and equipment are now on-site ● High stock levels of construction materials have already been delivered, with continuous supply ongoing In
Slide 18: Ultra-small production plant
Ultra-small production plant ● Small gravity concentration system to be used with locally- sourced crusher and mill ● Throughput of two tons/hour ● Capable of extracting 40% of gold - the remaining gold will be extracted by the main plant later ● To be shipped by air freight imminently ● Unit can be
Slide 19: Exploration progress
Exploration progress New mineralization with visible gold at Segele There are positive initial findings in new exploration areas, 130 metres west of the main Segele mining area The Hill Top target has been tested with five holes for 423.6m. First assays are expected during Q2 New Mineralisat
Slide 20: Exploration targets
Exploration targets Segele Hill Top Gingibil • Visible gold seen in hand specimen and • Visible Gold seen in numerous hand 423m drilling specimens • Awaiting assays • Priority Drilling, candidate for bulk sampling Segele Berebere Korarima • Visible gold seen in drilling and confirmed • Abundant smal
Slide 21: Segele Berebere Target
Segele Berebere Target (Previously referred to as 3 mineralization) rd New mineralization with visible gold at Segele Berebere The Hill Top target has been tested with five holes for a combined 423.6 metres, with first assays expected during Q2 Mineralization is hosted by a chlorite schist tha
Slide 22: Gingibil target – Our most significant discovery yet?
Gingibil target – Our most significant discovery yet? Newly discovered Gingibil target Three large areas with thousands of tons of quartz vein material laying as scree around outcropping quartz veins Previous kofari artisan mining activity at all three veins Sulphide-bearing quartz of the ‘g
Slide 23: ESG – an integral part of the company
ESG – an integral part of the company The ESG program is a strategic win for Akobo Minerals and has facilitated the swift development to mining Latest initiatives • A Women and Youth Association was registered • Artisanal and small-scale mining and solar technology teaching materials were prepared •
Slide 24: Table of Contents
Table of Contents I Introduction II Operational update III Financial update IV Q&A 24
Slide 25: Income statement – Group
Income statement – Group all figures in SEK Comments to figures • SEK 6.5 million in other expenses mainly relate to consulting services such as accounting, auditing and legal both in Norway and Sweden • SEK 6 million in transaction cost for Monetary Metals loan • SEK 16.5 million in other expenses
Slide 26: Balance sheet – Group
Balance sheet – Group all figures in SEK Comments to figures • Fixed assets are capitalised exploration costs and local mining equipment in Ethiopia • Long term debt is the 5.000 ounces gold loan from Monetary Metals 26
Slide 27: Cash flow – Group
Cash flow – Group all figures in SEK Comments to figures • Cash flow from operating activities relates to all entities • Cash flow from investing activities relates only to operational activities capitalised in Ethiopia • Cash flow from short-term debt relates to a convertible loan and long-term deb
Slide 28: Key metrics
Key metrics Avg grams parton otal Maerscmiea (Rev00H) Accused 1501 1092 127 iar 150 wai 17 od 24 100 asa aa vs vr me m3 1387 1.885 5061 2168 mao 2188 2051 m9 ame a0 a0 3908 a0 6383 zz ore 2410 3908 ve 106 1000 zz00 308 rape on 700 68000 3585 3903 19558 eae 406 63000 3508 rooee | ‘tenched a x ‘hares
Slide 29: Q&A
Q&A 29 29