What's Happening?
Akobo Minerals, a gold producer based in Scandinavia, has reported a strong operational performance for December at its Ethiopian gold operations. The company concluded the fourth quarter with significant improvements in production, revenue, and earnings before interest, taxes, depreciation, and amortization (EBITDA). December's gold production reached approximately 8 kg, contributing to a cumulative doré production of about 73 kg. The Segele mine operations remained stable, with ongoing production from existing underground workings. The company is advancing its vertical shaft development, with shaft sinking reaching 38 meters. This development is part of a strategic decision to proceed with the next phase of vertical shaft development, reflecting
increased confidence in the deposit. The vertical shaft, once completed, will be one of the most advanced small-scale underground shaft developments in Ethiopia.
Why It's Important?
The progress reported by Akobo Minerals is significant for the mining industry in Ethiopia, showcasing the potential for advanced mining operations in the region. The company's decision to advance the vertical shaft development indicates a commitment to long-term value creation and operational efficiency. This development could serve as a model for similar mining operations in Ethiopia, potentially attracting further investment in the country's mining sector. The stable production and strong financial performance also highlight the resilience of the gold mining industry amid fluctuating global gold prices. The ongoing dialogue with the Ministry of Mines regarding training and knowledge transfer underscores the importance of collaboration between private companies and government bodies in fostering sustainable mining practices.
What's Next?
Akobo Minerals plans to continue its vertical shaft development, with expected production uplift from August or September. The company will fund this development through existing cash resources and operational cash flow. As the vertical shaft and associated lateral development are commissioned, production from existing winzes will be phased out. The western winze will be converted to a ventilation shaft, and the eastern winze will be repurposed as a traveling way and emergency exit. The completion of the vertical shaft is expected to enhance the company's production capabilities and operational efficiency, potentially leading to increased profitability and market competitiveness.
