Akobo Minerals Ab · OSL:AKOBO
Akobo Minerals Ab — Q2 2023 Earnings Presentation
30 slides from Akobo Minerals Ab's earnings presentation, Sep 7, 2023
Slide 1: Second quarter 2023 Presentation
Second quarter 2023 Presentation AKOBO MINERALS AB (publ) 07.09.2023
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: Scandinavian based Ethiopian gold exploration and mining company
Scandinavian based Ethiopian gold exploration and mining company Strong corporate foundation Strong local foothold, based Low-cost and flexible to support continued growth upon the principles of good operations to be supported of resources and discovery ethics, transparency and by cash flow from bou
Slide 5: 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 6: Key events
Key events Q2 2023 Highlights Post Q2 2023 Highlights • Construction of the main processing plant began • A refinery agreement was signed with the world-renowned gold refiner, MKS PAMP • The small pilot plant was made fully operational • Results from the Gingibil bulk sampling suggest ore grades are
Slide 7: ESG activities
ESG activities ▪ FOCUS on building and maintaining effective relationships with key stakeholders, ranging from local women to Government Departments to industry partners ▪ Construction of the Eco hub completed and celebrated with an opening day of community activities ▪ Training in financial literac
Slide 8: Refinery agreement signed with MKS PAMP
Refinery agreement signed with MKS PAMP Swiss based, family-owned refinery group 1 out of 11 LBMA approved refineries in the world MKS PAMP will provide • collection of the doré – the semi-pure alloy of gold, produced at Akobo’s Minerals’ mine in southwest Ethiopia • managing the transportation of t
Slide 9: Table of Contents
Table of Contents I Introduction II Operational update III Financial update IV Q&A 9
Slide 10: Mining Operations – Progress with a setback
Mining Operations – Progress with a setback Key Recent Developments ▪ Incline Shaft Length: 55m ▪ Eastern Winze Length: 28m ▪ Western Winze Length: 41m* *In Late-August, the angle of the Western Winze was found to have been misdirected Setback in mining of the Western Winze ▪ Planned to have interse
Slide 11: Segele Mining – The past and the future
Segele Mining – The past and the future Q4 2022: Q3 2023: Contract Mining Q2 2023: Owner Operator Started Mining Started Need for change of model identified Planning and recruitment • Rapid start up for transition began • Better supervision • Low Risk • Training of locals • Higher operating cost • L
Slide 12: Segele Operations – Reorganization for greater speed
Segele Operations – Reorganization for greater speed Change to owner operator mining Steven Rupprecht • Better supervision engaged as Mine • Training of locals Manager and Strategic Adviser • Lower cost Prof Steven Rupprecht New Head of Mine Over 35 year’s experience in Operations • Helge Rushfeldt
Slide 13: Processing Plant Foundations Complete
Processing Plant Foundations Complete Civil Engineering Team now focused on Tailings Storage Facility and minor ancillary projects Process Plant Foundations in Numbers ● 40,000 m2 of site clearing ● >12,000 × 100 Kg cement ● ~ 4,000 m3 concrete ● > 175,000Kg reinforcement bar ● > 80 people skilled-
Slide 14: Erection of Major Processing Equipment Complete
Erection of Major Processing Equipment Complete All major equipment has been erected and fitted onto the foundations Pilot Plant Key metrics ▪ 2 t/h plant ▪ 40% recovery of gold ▪ Fully installed and manned. ▪ Expansion options being investigated Main Plant Key metrics ▪ 10 t/h plant – upgradable to
Slide 15: Remaining Works for Processing Plant
Remaining Works for Processing Plant • Pipework ongoing • Electrical installation ongoing • Water supply borehole established and piping to be installed MILL AND GRAVITY • Diesel tanks received and to be TOWER installed CYANIDE CIL DESTRUCTION • 3 x additional generators SYSTEM TANKS WATER TANKS rec
Slide 16: The Gravity Tower - highest man accessible structure in 50,000km2
The Gravity Tower - highest man accessible structure in 50,000km2 50,000km2 = West Virginia (slightly less) 50,000km2 = All of Norway South of Otta 16
Slide 17: Gingibil – bulk sampling and drilling successful
Gingibil – bulk sampling and drilling successful Gingibil Key Facts 10min drive from Segele 1.55m @1.33g/t Processing Plant to from 20.85m Gingibil Visible gold, limonite and malachite at surface Bulk Sampling has produced gold from surface Ongoing Drilling has intersected mineralisation at de
Slide 18: Gingibil – tangible and prospective
Gingibil – tangible and prospective Gingibil Bulk Sampling The bulk sampling program has mined 58 tons of rock and extracted 24 grams of gold using the ultra-small processing plant. Segele Mineral Resource Given the inefficiencies* of the method used this could be expected to be a grade of between 1
Slide 19: Gingibil – Trial Mining to assess near-term production potential
Gingibil – Trial Mining to assess near-term production potential Produce gold from bulk samples using USP or main plant Evaluate Tonnage Capital Economics of assessment investment using estimate quartz float surveying for near-term and, profit mapping Measure mining, transport and processing costs d
Slide 20: Gingibil Drilling – Long Term Growth
Gingibil Drilling – Long Term Growth ● Core drilling has intersected mineralization in drilling spaced at 15m intervals. ● Visible gold has been seen in two holes and matching mineralization has been seen in a third hole. Similar ● First assays received: 1.55m@1.328g/t mineralisation seen in hole fr
Slide 21: Exploration targets
Exploration targets Segele Hill Top Gingibil • 423m drilling • Widespread Visible Gold at surface • Low-grade and to be revisited • Positive grades from surface bulk sampling • 150m from the Segele mine • Drilling successfully intersecting deeper orebody Segele Berebere Korarima • Visible gold seen
Slide 22: High Activity Level and Numerous Triggers in the Near Term
High Activity Level and Numerous Triggers in the Near Term Q4 2024 Q2 Q3 Q4 2025 Q2 Q3 Q4 2026 Q2 Q3 Q4 2027 Processing Phase 1. Segele Ore Phase 2: Segele and Shallow Gingibil Ore Phase 3: Extended Segele and Gingibil Ore Plant Processing Plant Upgrade from 10t//hr to 20t/hr EPCM Large Scale Gingib
Slide 23: Table of Contents
Table of Contents I Introduction II Operational update III Financial update IV Q&A 23
Slide 24: Financial performance overview
Financial performance overview All figures in ‘000 SEK Operational Expenses Development Equity & Debt Development* 23 343 Equity 20 345 19 273 Debt 13 892 154 514 196 108 63 686 178 647 56 928 Q3-2022 Q4-2022 Q1-2023 Q2-2023 24 623 414 -35 904 • The company is still in the project development Q3-202
Slide 25: Corporate structure and top shareholders
Corporate structure and top shareholders Corporate structure and listing Transparent corporate structure Top shareholders Rank Holding % Name Stock listed on Euronext Growth in Oslo and 1 6 025 975 11,4 % PIR INVEST HOLDING AS 2 4 137 348 7,9 % NAUTILUS INVEST AS Frankfurt Stock exchange (ticker:
Slide 26: Key metrics
Key metrics one ee ee) a a er ee ee sme Cathe aeaato ISK SALAD ARH TITROTE ISON MOLINE RIAOIST THAR SAIIST GAIN. SODA AROTLIN ZORA = cn =| am cnn tenatem sess coer na na ne na na na na na na 406 406 406 406 406 ‘Changeccash iron SS oS lee) led eed ed ee _ enue ans nk ms osama smo sano mmo mmo zom—za
Slide 27: Income statement – Group
Income statement – Group Comments to figures • SEK 1.9 million in other expenses mainly relate to consulting services such as accounting, auditing and legal both in Norway and Sweden • SEK 13.4 million in other expenses mainly relate to mining activities in Ethiopia • Personnel costs are primarily s
Slide 28: Balance sheet – Group
Balance sheet – Group 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 and a convertible loan of SEK 22.5 million 28
Slide 29: Cash flow – Group
Cash flow – Group 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 long-term debt relates to the 5000-ounce gold loan affected by gold price and curr
Slide 30: Q&A
Q&A 30 30