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Akobo declares inaugural cash flow estimate for Segele mine in Ethiopia

Segele mine in Ethiopia is set to generate $50m in free cash flow in two years. Akobo Minerals has declared the inaugural cash flow for the mine to be $42-million in 2023 and $15.1-million in 2024.

According to the Ethiopia-focused gold miner, the mine is on track to start producing gold early in 2023. The first cash flow estimate follows Akobo signing a deal with Solo Resources as a partner to develop the Segele processing plant, as well as an updated mineral resource estimate undertaken by consultancy SRK Australasia.

Akobo Minerals

Based on the current inferred and indicated mineral resource estimate of 94 000 t grading 22.7 g/t gold, for 68 811 oz, the company is confident that Segele will be a highly profitable mine operation with estimated free cash flow of $50-million up until the end of 2024. The cash flow model is based on the assumption of an average gold price of $1 800/oz for 2023 and 2024.

“With more targets being explored and the fact that the orebody is open at depth, we are confident that mining operations will continue for many years beyond 2024,” says CEO Jørgen Evjen.

Akobo Minerals’ story started in 2009 with the launch of alluvial production as well as exploration in the Akobo area. The initial alluvial mining continued until 2013 when the decision was taken to focus on exploration rather than production. Since then Akobo Minerals has until October 2021 been a pure exploration company and their team has gathered extensive data from the area. Extensive and successful drill programs have been planned and started. In October 2021 Akobo Minerals received a large scale gold mining license for its Segele area.

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