Akobo Minerals announces third quarter preliminary results 2025

Akobo Minerals reported Q3 2025 revenues of SEK 22.9m and its first positive EBITDA of SEK 6.9m (~USD 0.73m) on gold production of ~21 kg at 29.7 g/t (≈USD 2.4m sales); cash at quarter-end was SEK 31.2m and cash plus unsold gold was ~USD 4.3m at end-November. Operationally the company progressed its vertical shaft (20m into hard rock of a planned 60m), completed and shipped headgear, installed processing and water-treatment capacity, increased ROM stockpiles to 385t (indicative in‑situ value ~USD 1.1m), attracted a USD 3m investment from Ethiopian Investment Holdings and restructured the Monetary Metals loan; all remaining convertibles were converted post-period. While stronger gold prices and improving cash flow reduce near-term funding pressure, a deeply negative equity position (SEK -192.4m) and SEK 392.0m of long-term debt leave balance-sheet leverage and refinancing risk as primary investor concerns.

Analysis

Akobo Minerals reported Q3 2025 revenues of SEK 22.9 million and delivered its first positive quarterly EBITDA of SEK 6.9 million (approximately USD 730k) on gold production of ~21 kg at 29.7 g/t, generating about USD 2.4 million in sales; cash at quarter-end was SEK 31.2 million and year-to-date EBITDA remains negative at SEK -6.1 million. Post-period operational metrics show cumulative production rising to ~65 kg and October–November output of ~13.5 kg at 21.0 g/t, supporting management’s expectation of continued positive EBITDA into Q4.

Operationally the company advanced key capital projects: the vertical shaft reached 20 metres of a planned 60 metres, headgear fabrication was completed and shipped, two shaking tables were commissioned, and ROM stockpile rose to 385 tonnes (indicative in-situ value ~USD 1.1 million not recognized in accounts). Ethiopian Investment Holdings injected USD 3 million and the Monetary Metals loan was restructured with reduced interest and a grace period to February 2026, while all remaining convertibles were converted after period-end.

Balance-sheet risk remains pronounced: total equity was SEK -192.4 million and long-term debt SEK 392.0 million, though cash plus unsold gold was ~USD 4.3 million at end-November and rising gold prices improve near-term cash-flow prospects. Key near-term sensitivities are execution of shaft commissioning, sustained production rates, and any further refinancing needs given high leverage.

Key Decisions for Investors

• Require at least one to two additional quarters of positive EBITDA and stable or rising production before materially increasing long exposure to AKOBO,
• Monitor the company webcast and management commentary for confirmed shaft capex schedule and budget adherence because missed timelines will pressure cash and leverage,
• Continue to track financing developments closely—the SEK 392.0m long-term debt position and negative equity mean further capital or refinancing actions would be dilutive or credit-negative,
• If maintaining or adding exposure, consider position sizing limits or hedges to protect against operational setbacks or a reversal in gold prices despite the current positive commodity backdrop