Akobo Minerals AB, the Scandinavian-based Ethiopian gold producer, has released its operational update for April 2025.
Gold production for the months of April and March amounted to 1 kg at an average grade of around 3 g/t, which is below the company’s expectations. Total cumulative production has now reached 19.6 kg. The average grade across all mined material remains high at close to 20 g/t, continuing to place the Segele mine among the highest-grade underground gold operations globally. As previously communicated, the Segele deposit is characterised by a nuggety nature, resulting in significant grade variability. This remains a key factor affecting the short-term predictability of gold output.
The lower-than-expected production during March and April has caused a near-term liquidity requirement in order for the company to meet its requirements as a going concern. To address this, the company is preparing to engage with existing shareholders to secure short-term funding. The evaluation of available alternatives towards securing appropriate financial solutions long-term is continuing.
The mine is currently operating with three active headings for ore extraction, most of which are expected to access high-grade zones. Increasing daily tonnage has proven more challenging than anticipated due to constraints within the current tunnel infrastructure. In the short term, the company is working to improve production levels from existing tunnels through the introduction of additional blasting shifts and by optimising underground cycle times. These tonnage constraints are expected to be resolved through the planned commissioning of a vertical shaft, which will improve access and provide greater operational flexibility.
In parallel with operational improvements, and as part of evaluating available alternatives, Akobo Minerals has initiated discussions with providers of non-equity financial instruments. These efforts are focused on securing non-dilutive financing, such as offtake and streaming agreements, which provide upfront payments in exchange for future gold deliveries at a discount to prevailing market prices. These initiatives are being pursued in close collaboration with Sutton Global and the company’s lender, Monetary Metals. Other funding alternatives, such as a standard equity raise or potential strategic partnership, will also be evaluated depending on the attractiveness of available solutions.