Could you provide an update on Akobo’s first year of production?

2024-2025 was a transformative period. After 15 years of hard work, we declared first production at our Segele mine in Ethiopia last October (2024). I don’t believe everyone can grasp the magnitude of this event: This is the first new international mine to open in the country since 1994. We had no template to rely on or model to copy, so we did everything on our own. After the inauguration of the plant and producing our first doré bar, we’ve been focusing on operational improvements and adjustments, as well as internal changes to reflect the transition from a project-based stage to an operational stage: Akobo has a new GM, and we are outsourcing our operations to Sutton Global, a mining and process consulting group. 

With a streamlined organization, our priority is to run a steady operation, delivering on our promise to the market. Right now, we are mining from two tunnels/winzes that go into the main ore body, that can produce up to  400-500 t/month at 30 g/t, which comes to 10-15 kg of gold/month. Our breakeven is around 5 kg/month. 

Could you comment on the ramp-up plans with the introduction of a vertical shaft? 

Establishing a vertical shaft is a cost-efficient way to increase mine production from the current 400-500 t/month to up to 3,000 t/month – a significant increase, which would result in gold production between 40 and 60 kg/month. The shaft will go down to 130 meters. The capital expenditure (of around US$1.5 million) would be recouped in a month of production. We also restructured our deal with Monetary Metals in May this year for longer maturity, lower interest rates, and a longer period of no-interest payments. As part of the restructuring, we will also raise US$3.5 million from equity shareholders and potentially tap into offtake markets, something that’s becoming more of a norm in our industry. Lastly, we are open to a strategic partnership once we have balanced out our financing. 

What’s your exploration strategy now that you are a producer?

Akobo remains, at its core, an exploration company, with Segele becoming a strategic cash-flow generator for more aggressive exploration. While getting Segele up and running, we had to slow down our exploration efforts, even though we never stopped. Today, exploration is again a top-of-the-agenda item. We applied for a new, larger license of 1,200 km2, just north of Segele and following the same geological structure. The new license, called Gilo, is a pure greenfield play, and we are pending final word from the government.  

Ethiopia launched its Securities Exchange. How do you observe the progress on economic liberalization reforms?

Ethiopia has had its ups and downs, but things look more promising than ever. The US$3.4 billion deal with the IMF was a major catalyst, but the country is still not completely out of the woods. The launch of the Ethiopian Securities Exchange (ESX) earlier this year is a sign that the economy is more open to private investment. The central bank has also introduced new policies that are liberalizing the financial sector, allowing international banks to invest in Ethiopian banks, which means increased access to foreign exchange and a greater integration of the country into global financial markets. Non-Ethiopian property owners in Ethiopia can now invest in purchasing residences (though not the land itself) if they invest at least US$150,000 per transaction.

Ethiopian Investment Holdings has now completed its first international investment by becoming a shareholder in Akobo Minerals. What does this mean for you?

For EIH, Africa’s largest sovereign wealth fund, to choose Akobo as its very first international investment is a strong endorsement of our work. For Akobo, it means having a long-term institutional partner from Ethiopia itself, which adds both credibility and stability. More broadly, it reflects the government’s ongoing liberalization reforms, making it possible for national wealth to be invested in international ventures. 

As a first mover in Ethiopia’s mining space, would you recommend the country as a mining jurisdiction? 

Yes, but I would caution that you must be prepared. If I were to offer one piece of advice, it is to pick your partners carefully. Over the next five to 10 years, I believe Ethiopia will rise to become a huge mining jurisdiction, absorbing much of that capital that is being pulled out of West Africa.