Akobo Minerals Ab · OSL:AKOBO
Akobo Minerals Ab — Q3 2022 Earnings Presentation
23 slides from Akobo Minerals Ab's earnings presentation, Nov 24, 2022
Slide 1: Third quarter 2022 Presentation
Third quarter 2022 Presentation AKOBO MINERALS AB (publ) 24.11.2022
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 in a nutshell
Akobo Minerals in a nutshell Ethiopia – vast untapped mineral potential Peace agreement signed – new opportunities and reforms back on track A 'de-risked' project on all levels Project situated in the gold rich and well-known Arabian Nubian shield Fully-funded to production start 14 year
Slide 5: Slide 5
Slide 6: Key events - third quarter
Key events - third quarter Events during third quarter Events after the period • Successful core drilling at the Joru project, including • Peace agreement signed between Ethiopian 12.5g/t over 0.5m government and Tigray People’s Liberation Front • Gold confirmed in a new mineralised zone, west of th
Slide 7: Financial performance overview
Financial performance overview Q3 2022 Remarks • Results for the period SEK -17.2 million* • There was an increase in costs, resulting from the expansion of mining-related activity • Results year-to-date SEK -19.6 million • Cash flow for the period SEK 10.8 million** • Compared to previous quarters
Slide 8: Funding from Monetary Metals – A real gold loan
Funding from Monetary Metals – A real gold loan The loan is structured as a gold loan with Excerpts from the due diligence report from the funding internationally-recognised investors through US-based Monetary Metals • “The project has one of the highest occurrences of visible gold present in a gold
Slide 9: Table of Contents
Table of Contents I Introduction II Operational update III Financial update IV Q&A 9
Slide 10: The Segele deposit
The Segele deposit Artisanal pit 8.9g/t 12.9g/t 6.2g/t 88g/t Key metrics Total mineral resource 69,000 oz, 22,7 g/t New Drill Targets Indicated resource 41,00 oz, 40,6 g/t Core Drilling Holes AISC USD 243/oz Conservative 81% extraction rate Inferred Mineral Resource 10 t/h plant – upgradab
Slide 11: High margin estimated free cash flow of USD 50 million
High margin estimated free cash flow of USD 50 million Project financials and key assumptions 40 35 30 25 The model, based upon Akobo Minerals’ current mineral resource 20 estimate, shows a highly profitable mine operation, with an estimated free cash flow of USD 50 million up until the end of 2024
Slide 12: 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 13: Preparation for underground mining almost complete
Preparation for underground mining almost complete Incline shaft box cut well advanced Underground mining equipment to arrive imminently Enhanced HSE program in place Experienced IW Mining and Akobo team busy at site Equipment shipping delays in South Africa successfully overcome First shipmen
Slide 14: Processing plant supply nearing completion – on-schedule
Processing plant supply nearing completion – on-schedule • Process Plant is on schedule as adjudicated by Consulting Engineer • Challenges due to power cuts and transport strikes in South Africa • Detailed layout drawings and designs 95% complete • Fabrication work 90% completed (completed mid-Decem
Slide 15: Processing plant supply and tailings storage facility
Processing plant supply and tailings storage facility Motor control centre Tailings storage facility design by Epoch Resources nearing completion A state-of-the-art conductive liner to be used to ensure safe deposition Safety steelwork Conveyor systems 15
Slide 16: Exploration progress
Exploration progress Trench 30 Segele East drilling and geological model review Segele resource successfully confirmed geology model for Segele extension drilling Better information for targeting new exploration holes to extend or discover new mineralization Segele mine project New mineralizat
Slide 17: 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 Shortlisted for the Mines and Money London ESG Explorer/Developer of the Year Award for the second successive year Sustainable Natural Resources Management
Slide 18: Table of Contents
Table of Contents I Introduction II Operational update III Financial update IV Q&A 18
Slide 19: Income statement – Group
Income statement – Group Comments to figures • SEK 1.1 million in other expenses mainly relate to consulting services such as accounting, auditing and legal, both in Norway and Sweden • SEK 8.8 million in other expenses mainly relate to mining activities in Ethiopia • Personnel costs are primarily s
Slide 20: Balance sheet – Group
Balance sheet – Group Comments to figures • Fixed assets are capitalised exploration costs and local mining equipment in Ethiopia • Other liabilities include a convertible loan of SEK 50 million • Trade payables are related to production plant invoices from Solo Resources 20
Slide 21: Cash flow – Group
Cash flow – Group Comments to figures • Cash flow from operating activities relates to all entities • Changes in working capital during the period relates to all entities • Cash flow from investing activities relates to operational activities capitalised in Ethiopia • Cash flow from financing activi
Slide 22: Key metrics
Key metrics a a as Se, Sashtaloce — rszo4an go1ss8 S7ezs20 19500549 TI7T9ETE 6740900 a70a7E18 4936757 T9SEE98 _Sar8I57 15682598 Siuetewe —gsoi5i7 1868288 20000000 49945840 coe Sone ne na npn ng nang na 000, s1000—Ghangecash asa zog -ggamsa0 1018129 -647Ra71 7504877 -S6IB7H2 9679954 19659845 saa0m200
Slide 23: Q&A
Q&A 23 23