Amaroq trading as expected as it ramps up at Nalunaq

13th May 2026 11:14

(Sharecast News) - Amaroq reported a strong start to 2026 on Wednesday, with first-quarter production and financial performance in line with expectations as it continued to ramp up operations at its Nalunaq gold mine in Greenland.

The AIM-traded mine developer said revenue for the three months ended 31 March was CAD 18.9m, compared with no revenue a year earlier, reflecting gold sales of 2,970 ounces at an average realised price of USD 4,656 per ounce.

Gross profit was CAD 9.8m and net profit was CAD 2.4m.

Capital assets rose to CAD 275.4m at the end of March from CAD 252.7m at the end of December, while gold inventory increased to CAD 20.3m from CAD 15.8m.

Cash fell to CAD 8.8m from CAD 21.5m at the end of 2025, although Amaroq said after the period end it had secured a new USD 70m revolving credit facility with Landsbankinn and Gunvor Group, replacing its previous USD 35m facility and reducing its overall cost of funding.

Nalunaq produced 3,694 ounces of gold in the quarter, in line with guidance.

The average feed grade was 19.9 grams per tonne, ahead of the company's 2026 guidance range of 14 to 15 grams per tonne, while average recoveries of 61% were in line with the planned recovery factor for Phase 1 of around 60%.

During the quarter, 33,404 tonnes of material were mined, equivalent to 11,120 tonnes of ore, while 12,032 tonnes of material were processed.

Development continued in the Mountain Block, with the main ramp approaching the 816 metre level.

The company said commissioning of the flotation circuit remained on track for the second quarter.

Once operational, it was expected to lift overall gold recoveries to about 90% to 95%, from the current gravity-only circuit range of 50% to 70%.

Gold-bearing tailings are being transported back to the mine and stockpiled for reintroduction into the plant once the flotation circuit is commissioned.

Amaroq reiterated its full-year production guidance of 25,000 to 35,000 ounces of gold, with output expected to be weighted to the second half following commissioning of the flotation circuit.

It also said current trading was in line with that range, while first-half production guidance remained 7,000 to 10,000 ounces.

Chief executive officer Eldur Olafsson said he was pleased with a "strong first quarter's operational and financial performance", adding that mining operations and processing at Nalunaq had performed well.

"With the completion of Phase 1 commissioning, we continued to ramp up mining and milling rates through the quarter and successfully navigated the challenging winter month personnel rotations," he said.

"Current trading has been strong, keeping us on track for the H1 2026 guidance of 7 to 10koz of gold and full year of 25 to 35k oz."

Olafsson said the company would begin its 2026 exploration campaign in June, starting at the Ilua rare earth prospect.

Amaroq said exploration plans for the year included work at Ilua to further define rare earth pegmatite systems and initial scout drilling, as well as surface rehabilitation, updated studies and resource growth exploration at Black Angel, the former zinc, lead, silver, germanium and gallium mine acquired in 2025.

The company also planned geophysical work and scout drilling at the Minturn IOCG prospect, systematic drilling at the Nanoq gold project to support a maiden mineral resource estimate, and further work at the Stendalen copper-nickel prospect.

At Nalunaq, Amaroq completed 2,411.5 metres from 31 underground drillholes during the quarter to support short- and medium-term mine planning, while work continued on an updated mineral resource estimate.

The company said it continued to make progress on its planned move to the Main Market of the London Stock Exchange in 2026, after appointing Citigroup as sponsor and financial adviser in February.

Its common shares were voluntarily delisted from the TSX Venture Exchange in March.

At 1045 BST, shares in Amaroq were down 2.1% at 101.33p.

Reporting by Josh White for Sharecast.com.

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