Amaroq Minerals

I think I’ll skip the disclaimer. So, Amaroq at a glance. So what are we? We are a mine developer, explorer, and an infrastructure company operating out of Greenland only. We have a significant licensed acreage position in the country of more than 8,000 square kilometers, which I think currently is the largest license holder, would make us the largest license holder in Greenland. We operate a gold mine in the southernmost tip of the country called Nalunaq, where we’ve guided this year production in a range of between 25,000 and 35,000 ounces. We poured first gold in November of 2024 and commissioned the gravity circuit of our processing facilities last year and the flotation circuit in June of this year, taking our recoveries from about 60% to 90% plus.

It has exceptional grades, which is a theme in Greenland, where you see mineralization at surface in various parts of the country. The current MRE has a resource grade of 30.4 grams per ton. And furthermore, in the south, we’ve identified what we call the South Greenland Gold Belt going from east to west, and that contains our second most developed gold project called the Nanok Gold Project, which I’ll get into in more detail later.

Then last year, we acquired a past-producing zinc-lead-silver mine, which used to be called Black Angel, which some of you may recognize. It was mined for 17 years by Cominco and then Boliden. It already has a resource of 4.4 million tons of high-grade zinc-lead-silver, and we’ve identified commercial quantities of critical minerals such as germanium and gallium, and we will be redeveloping that mine in the next years.

On top of that, we have a subsidiary called Gardaq, which is our exploration vehicle, and there we are searching for, just say, large deposits of critical minerals across Greenland. So we have a large licensed portfolio in that subsidiary, and we drilled a couple of targets there this year, one in rare earths and another one which is a potential IOCG deposit up in the north of Greenland.

Lastly, we have what we’ve called our enablers, and I’ll just mention the servicing company, which we called Suliak, is currently owned 100% by Amaroq, but is currently being financed on the subsidiary level and that will serve as a wider logistics and servicing company for Greenland as a whole, not only for the Amaroq group or even other mine operators, but also for other infrastructure works in country, which is growing, has been growing quite fast recently.

Just briefly on our balance sheet and shareholder base, we’ve been fortunate to be able to build up a very strong register of institutional investors. We’re listed on the Nasdaq Nordic Exchange, Nasdaq Iceland specifically, and the London Stock Exchange main market. We have around 20% owned by Nordic pension funds, 10% by the Danish sovereign wealth fund and one of Denmark’s largest pension funds. And we also have representation from the Greenlandic Pension Fund and Greenlandic Sovereign Fund. So quite good backing from these long only institutional shareholders. Board and management owns 11%, and the rest is owned by institutional investment companies and individuals.

So these are the hubs we’re working from in Greenland. You can see the largest island in the world. It’s 2 million square kilometers. Our largest area of operations is in the far south. Number one on that graph you see below, that’s where our Nalunaq mine sits in the gold belt, and we also have some prospective copper and rare earth licenses there. Number two is the West Greenland hub, where we acquired the past-producing Black Angel mine last year, and up north, we have an exploration project in iron ore.

Just briefly on this year, as I said earlier, we’re commissioning and ramping up operations in our Nalunaq gold mine. First half of the year, we produced 9,000 ounces, and we’re trending well towards our guidance range for the year of 25,000 to 35,000 ounces. So that’s all going quite well. We guided milled grades of between 14 and 15 grams per ton. What we’ve seen so far this year is something closer to 20 grams per ton going through the mill, which is not in and of itself that surprising to us. The mine plan indicates 14 to 15 grams per ton, but this deposit and ore body has historically always shown a positive mine call factor, i.e. the grades that you actually process are higher than what the models predict. And on these grades, this mine at only 300 tons per day should be able to produce more than 50,000 ounces on a steady run rate.

Revenues and free cash flow is ramping up alongside increased production. And as I said earlier, we commissioned phase two in June. And we continue to drill not only our exploration place, but also at Nalunaq itself. And there we continue to see good indications of grades going forward. So this summer’s drilling program showed an average grade of 42.8 grams per ton. So we’re quite satisfied and confident in that high grade level continuing. Our current resource is 504,000 ounces. And we increased the indicated category of 10.6%. And we’ll continue, obviously, to drill out with reduced spacing to move some of these resources into reserves as we continue to mine and increase the mine life at Nalunaq.

We also completed another funding round of our joint venture that I mentioned earlier, which is conducting the greenfield exploration. And now we finished all field season activities this year on schedule. So those results will be now assayed and brought to the market in the next several weeks and months.

On a corporate level, we uplisted to the main market in London this summer. We had been listed on the AIM secondary market there for the past six years. Had very good experience there and it served us well in that phase of growth. But we’re already seeing dividends with the main market listing, with increased liquidity and inclusion into FTSE indices. So obviously into the FTSE All-Share and SmallCap. And we’re targeting inclusion in the FTSE 250 before year end.

So what’s next for Amaroq? I’ll go through the so-called three mine plan, which includes Nalunaq, the current operating mine, with another gold development project, as well as the redevelopment of the Marmorilik mine. Here you can see the future potential production profile of Nalunaq. And on the graph, you see ounces produced where we’ve guided around 30,000 ounces this year. And at full run rate on a 300 ton per day facility, we should see that around or close to 50,000 ounces. But then we are conducting studies to increase that throughput.

So the processing plant was basically engineered to produce 450 tons per day, except for the mill. So there is a limited amount of investment needed to increase the capacity by 50%. So that’s what we’re working on currently, both on the processing plant level and on the mining level, where we’ll need to open up more faces and more blocks for mining to be able to feed the plant. And furthermore, from 450 tons per day, we are studying the possibility of increasing it to 600 tons per day with ore sorting techniques. And that’s where the satellite deposits around Nalunaq will also come into play, where we can ship in bulk samples from them to the processing facilities at Nalunaq.

Now on the Marmorilik mine, as we’ve dubbed it now, which used to be known as the Black Angel mine, you can see on the map there where it sits in West Greenland. You see on this map the green circle around the area where you see Angel. That’s where the past producing mine was and where Cominco and Boliden mined it for 17 years. What has happened since then, the glacier has retreated. So it used to cover the three lakes you see in the bottom right half. So the glacier has retreated and we have seen outcrops mineralization at surface of high grade zinc, lead and silver. And as I said previously, it already has a resource of 4.4 million tons. What we’re doing now is we are conducting a PEA with WSP with a strategy of an iterative process of where we go from one ore zone to the next while we continue to explore and increase the resource. The PEA will also contain an exploration target and we’re seeing this as our next mine that will be developed.

And on Naalakk, you see on the map there, it’s on the southern tip of Greenland, same as our Nalunaq mine, which you see on the bottom left. Naalakk is on the eastern side. The direct distance is about 120 kilometers. But initially, while we continue to drill out Naalakk, where we’ve already drilled 10,000 meters, we’ve already started building a road and harbor both to facilitate more drilling in the years to come, to be able to start earlier, reduce expensive helicopter times, and spend more time there over the field season and drill more meters. But more importantly, to potentially start shipping bulk samples, order of magnitude 10,000, 20,000, 30,000 tons per annum over to the Nalunaq facilities, process ore there, and start generating cash flow immediately. And we’re currently conducting a study with SGS to see the amenability of the ore at Naalakk to the processing facilities at Nalunaq. So we would effectively barge it over. There is no road in between.

So on the guidance, as mentioned earlier, we’re trending well on all fronts there, both in terms of production, but also on costs. We’ve guided an all-in sustaining cost at Nalunaq of around $70 million US dollars. And we guided specifically for Q4 an AISC of between $1,250 and $1,450 per ounce. And it’s not due to any brilliance on our side. We’ve gone through a lot of learnings building up this mine in a remote location in the Arctic. And I believe we’ve gotten quite good at it now on the team on the ground, certainly. But this is more indicative of the exceptionally high grades that we see at the mine and elsewhere in Greenland, which makes this cost profile so good in comparison to other mines.

So lastly, our focus will be on unlocking the value that we see in our asset portfolio in Greenland. We’ll continue to develop obviously the Nalunaq mine, but also these more developed projects of Mamorelik and Naalakk, continue to explore and elephant hunt in the rest of Greenland and leverage on the infrastructure we already have, the increased growth and interest in Greenland, our operational capability and execution so far to unlock value and de-risk the Greenlandic platform strategy that we’ve been working with for the past few years. I think that’s it from my end. Thank you.

Any questions from the audience?

Thank you. I was just wondering, your mining services initiative, I was wondering what kind of revenue contribution you have modeled the board is considering for the total story that you have there.

Yeah, so currently what we’ve modeled and what’s in the IM, which we are showing to selected investors now, is that for the first two years or so, basically our assumption is that 90% of the revenue will come from the Amaroq Group. So our contribution into that entity will not be in the form of cash, it’ll be in the form of equipment and services and contracts such as those. And then we’re basically taking in, I mean, the compounded annual growth rate of mining exploration in Greenland has grown at about 25% in the last five years, and we assume that we take about 15% of that growth. But just being on the ground in Greenland these days, it’s obviously going to be growing more than that, not only on the mining front, but now with the latest news on the tri-party agreement between the US, Denmark, and Greenland, there will be more infrastructure, whether it comes to army bases or harbors or whatnot. So that’s the value proposition we’re putting forth. And I should mention that we’ve already announced this to the market, that the IFO, which is also a shareholder in Amaroq, the parent company, we have an LOI with them to invest in that Sulik subsidiary to support the growth in Greenland going forward.

And you just mentioned Naalakk phase two planned commission in June.

Yeah.

And can you give us a bit more color on the ramp-up and where do you see it goes in Q4 and goes into 2027?

Yeah. So we completed construction in May, commissioned in June, as you mentioned. And so basically before that point, we’ve already reached the production capacity of throughput, if you will, of 300 tons per day. This essentially added a circuit on the tail end of the gravity circuit to push recoveries up to 90% plus. And very happy to say that we’ve already seen that materializing, so that is going well. And we reiterated the guidance fairly recently, so we feel pretty good about that.

Okay. Thank you.

All right. Thank you. [audience applauding]