Akobo Minerals Ab · OSL:AKOBO
Akobo Minerals Ab — Q3 2021 Earnings Presentation
27 slides from Akobo Minerals Ab's earnings presentation, Nov 1, 2021
Slide 1: Third quarter presentation 2021
Third quarter presentation - 2021
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: Gold Exploration and Mining Company With Significant Gold Potential
Gold Exploration and Mining Company With Significant Gold Potential 11+ years on-the-ground experience Location of License in Akobo, Ethiopia Experienced team and good relationship with local authorities 182 km2 exploration license in Akobo, Ethiopia An attractive gold-mining jurisdiction 710 km fro
Slide 5: Key events third quarter 2021
Key events third quarter 2021 Events during third quarter Events after the period • Applies for and is awarded a large-scale mining license for • Sources the second drill rig from Midroc gold and associated minerals • TS Environment contracted for Environmental • Listed on Euronext Growth studies in
Slide 6: Key Targets in development – one ready to be mined
Key Targets in development – one ready to be mined 1 Segele 2 Joru ONGOING INFILL AND EXTENSION DRILLING SCOUT CORE DRILLING COMPLETED, AWAITING ASSAYS AWAITING ASSAYS Total of 8,493m of core and RC drilling completed Total of 3,640m of core and RC drilling completed Numerous bonanza grade int
Slide 7: Overview of Licenses
Overview of Licenses Map of the License Areas License Details Located 710 km from the capital city Addis Ababa, connected by modern highway 182 km2 exploration license in South-Western Ethiopia granted by the Ministry of Mines and Petroleum License expires November 2023, in process to be exten
Slide 8: Mining License – major milestone for Akobo Minerals and Ethiopia
Mining License – major milestone for Akobo Minerals and Ethiopia • The right to hold proceeds from sale of gold in overseas USD bank accounts • The right to freely repatriate profits from overseas USD bank accounts • The right to a 5 year Mining Licence covering 16 square kilometres of the Segele mi
Slide 9: Current situation in Ethiopia
Current situation in Ethiopia Federal Parliament Elections complete • Prime Minister Abiy Ahmed’s Prosperity Party won the democratic election with 410 seats out of 436 in the federal parliament New cabinet in place Up until now, we have had normal • Minister of Mines Takele Uma continues - strong s
Slide 10: Table of Contents
Table of Contents I Introduction II Operational update III Financial update IV Q&A 10
Slide 11: Ramp up of activities
Ramp up of activities 10 000 9 393 45 41 39 9 000 40 8 000 7 245 35 32 33 7 000 6 648 5 718 30 6 000 23 23 25 5 000 4 141 20 17 4 000 2 828 2 897 15 3 000 2 000 10 1 000 5 - - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Meters drilled acc Employees 6 000 5 594 • Three drill rigs in operation, all at S
Slide 12: Milestones achieved before time
Milestones achieved before time 2021 Q2 Q3 Q4 2022 Q2 Q3 Q4 2023 Q2 Q3 Q4 2024 ON TRACK Segele and Adjacent Area Drilling DONE Scoping Study DONE SSM Mining License Application Operational EARLY SSM PFS activity SSM DFS SSM Construction, Commissioning and Ramp up ON TRACK Joru Drilling EARLY Surface
Slide 13: Scoping Study Complete
“Estimate of 243 USD per ounce for all in sustaining cost Scoping Study Complete (AISC) vs 1.048 USD per ounce as mining industry average ” Metric Figure Notes Inferred Mineral Resource 78ktonnes@ 20.9g/t SRK MRE 6th April 2021. 52,410oz CAPEX USD 8.042m Factored, including USD 1.2m contingencies To
Slide 14: Scoping Study Complete: Corporate planning for low risk operations
Scoping Study Complete: Corporate planning for low risk operations Portal Construction Incline Shaft Development Stoping Operations CONTRACT MINING OPERATIONS All Hiring, Equipment Purchase and Training and Operations completed by experienced contractor First ore planned to be produced 11months Afte
Slide 15: Scoping Study Complete: Simple gold processing operations
Scoping Study Complete: Simple gold processing operations • Better than expected gold recovery of 97.2% achieved, as compared to 90% assumed in the Segele Scoping Study – directly improving expected future revenue • The testwork confirms that good recovery is possible from a very simple industry sta
Slide 16: Prefeasibility Study for SSM at Segele
Prefeasibility Study for SSM at Segele Objectives 1: Improve on scoping study OPEX and CAPEX, assessments (Accuracy +/-25%) 2: Allow public release of cash flow models Technical Study Steps Required • 30% Infill Drilling • 0% Mineral Resource Estimate Update • Mine planning, including • 0% Geotechni
Slide 17: Environment, Society and Governance
Environment, Society and Governance • Environmental and Social Impact Assessment Underway • Complete Baseline Survey (Environment) Oct • Complete Baseline Survey (Social) Oct • Completion of Draft ESIA Report Nov • Submit the draft ESIA to EFCCC Nov • Receive ESIA Clearance Dec • Sustainable Natural
Slide 18: Segele status – Successful Extension Drilling Ongoing
Segele status – Successful Extension Drilling Ongoing • Since the SRK Resource Estimate a total of 4,739 meters in 28 holes of deep core drilling has been completed • Holes range from 123m in depth to 250m in depth • Visible gold seen in 15 of 28 holes • A total of 1044 samples from Segele submitted
Slide 19: Segele status
Segele status • Assay results from 370 samples from artisanal pits around the resource estimate have shown 88.0g/t, 8.9g/t, 12.9g/t and 6.15g/t. New drilling is planned to follow up these results • The reliability of these grab sample results is relatively diminished when compared to the drilling. •
Slide 20: Joru Central Status
Joru Central Status First Detailed Investigation of the Joru Target Joru Core Drilling Completed A total of 2264m of core drilling has been completed at the Joru target – 1171 samples awaiting assay. Significant Intersections: 28.10g/t over 0.85m and 20g/t over 0.75 in drill hole JODD03 29.1
Slide 21: Table of Contents
Table of Contents I Introduction II Operational update III Financial update IV Q&A 21
Slide 22: Income statement – Group
Income statement – Group Comments to figures All P&L related to operations in Sweden and Norway • Other expenses mainly related to consulting services like accounting, audit and legal. On off items related to IPO/share issue of approx. 500.000 NOK • Personnel cost mainly salaries for fixed employees
Slide 23: Balance sheet – Group
Balance sheet – Group Comments to figures • Strong cash position • No external debt • Tangible and intangible assets relate to operational activity in Ethiopia 23
Slide 24: Cash flow – Group
Cash flow – Group Comments to figures • Cash flow from operating activities relates to operations in Sweden and Norway • Change in working capital during the period from relates to all entities • Cash flow from investing activities relates to operational activities capitalised in Ethiopia • Translat
Slide 25: Key metrics
Key metrics Meters drilled (RC+DDH) 1,244 1577 1,292 Accumulated snot ter 2,814 4391 soe 5,061 6,353 Assays samples generated 497 29 439 476 132 - 283 {incl QAQC) Accumulated 1092 1921 1560 2.036 2168 2.168 2.451 Inferred Resources ounces na na na na 52410 52.410 52,410 ‘Avg grams per ton 209 209 20
Slide 26: Company Highlights
Company Highlights Potential to establish significant gold resources Attractive and well-established mining jurisdiction Experienced team and attractive corporate setup Strategy of high-impact exploration and small-scale mining 26
Slide 27: Q&A
Q&A 27 27