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Amaroq (AMRQ): BUY 1Q grade better than expected; on-track for FY26 target Amaroq enjoyed a strong start to 2026, with 1Q26 operational and financial performance in-line with management expectations and full-year guidance. The flagship high-grade Nalunaq mine in Greenland produced 3.7koz of gold during 1Q26 (4Q25: 2.0koz; 1Q25: nil) from 12.0kt of material at an average feed grade of 19.9g/t Au (materially ahead of FY26 guidance of 14-15g/t) and average recovery of 61% (in-line with the planned c.60%). Cash cost totalled US$9.8m while All-In Sustaining Cost (AISC) was US$16.7m – comparing well with respective FY26 guidance of US$44-47m and US$69-73m. Revenue was C$18.9m (4Q25: C$10.7m) from 2.97koz sold at an average realised gold price of US$4,656/oz, generating gross profit of C$9.8m (4Q25: C$5.8m) and net profit of C$2.4m (4Q25: C3.2m). Cash at period-end was C$8.8m (Dec’25: C$21.5m), with gold inventory of C$20.3m (Dec 25: C$15.8m).The company said that current trading has been strong, keeping it on-track to meet 1H26 production guidance of 7-10koz, and 2H-weighted FY26 production guidance of 25-35koz Au. Importantly for achieving the latter, Phase 2 (a flotation circuit, which should see recoveries improve to c90-95%) remains on-track for commissioning in 2Q26. We have not yet updated our model and valuation for the 1Q26 results.

‘MRE5 is overdue by now (Q1 2026).’

It was targeted for earlier. I had expected it by now.

I think there’ll be more on that later today.

No AISC given but seems much higher than anticipated in Q4 2025 (USD 1.250 – 1.450 /oz).’

The guidance is unchanged ( though there has been a better feed rate ) It reflects that which was said earlier.

‘2026 financial guidance

Targeting full year cash cost of operations of USD44-47m and all-in sustaining cost (“AISC”) of USD69-73m. Investment in sustaining capital is mainly attributed to sustaining underground development and drilling, together with maintenance capital for plant and camp.Increased gold production in H2 2026, as well as an anticipated reduction in costs, driven by transition from contractor to owner-operator model, including drilling, processing plant and camp support functions; resulting in unit costs being lower in H2 2026 relative to H1 2026, with Q4 2026 AISC expected to be within a range of USD1,250-1,450 per oz and Q4 2026 production to be in the range of 10-12k oz.A further ~USD14m of Nalunaq non-sustaining capital investment is expected, largely associated with the completion of the processing plant construction and commissioning, investments in underground mining equipment and adding to existing camp facilities.’

Well, solid is good, and spectacular wasn’t expected.

The cash position will improve as year passes.

MRE4 was modelled on $2100 gold, cut off 5.9gm per ton.

More to come from them later, in capital markets, leading into London Main listing and form of prospectus.

As hoped for/expected. A year ahead moving into/at steady state production at enhanced recovery rates, and proving up potential value across the tenements, as finances permit.

Tomorrow is an important day. Firstly to confirm, or otherwise, Amaroq is on track (with the flotation circuit) to deliver free cash flow and to more quickly explore the wider prospects, and develop the infrastructure for Black Angel and Nanoq. I think, for Nalunaq, it will be the first full quarter of uninterrupted activity, save for the much-enhancing flotation circuit. It will have costed at Nalunaq, but that is inevitable, it has to be paid for, as progress moves to steady state at better recovery rates. That should, or nearly, dependent on where they’re at just now, take care of Nalunaq capex.

We may get MRE 5. If we do not get something on that, analysts will probe ( capital markets day ) I don’t think there’s much doubt, on what we have so far, MRE5 will underpin immediate future production, and very likely extend mine life. Subsequently with the option to add to throughput from Nanoq in its earlier mining existence.

There is potential for much, not necessarily included in RNS, to come from later company comment, as part of capital markets day.

Suliaq, Imeq, other stuff. Could be wide ranging. And all progressive - all being well, and why not?

Well, I think that 7000 to 10000 oz is H1 target, if I read you right. Seems at least possible to me that Q2 production will be greater than Q1, should flotation circuit be up and running sometime in Q2, enhancing recovery rate.

Ariel.

Hello. It may be a matter of oil down, gold up today on expectation of events. Cash transitioning. Or perhaps punters catching on.

I don’t take too much notice of that. Nalunaq MRE 4 was modelled on gold $2100, at 5.9 gms per ton.

Of course, projects, developments, seem to be queuing up. Higher the price, the more they’ll be able to do. Flexible exploration budget, ‘market circumstances’, attest to that, as they said.

“However, mineralisation was consistently encountered across these multi-metre intercepts (up to 9.0m thick), which is very encouraging. Importantly, mineralisation occurs predominantly at shallow depths and in stacked (nested) structures, supporting the view that the Nanoq gold system may be amenable to open-pit mining. At the same time, deeper extensions are apparent in the saddle-reef fold hinges and vertically extensive shear zones, leaving significant room for further expansion.”

All the best.

The honest answer is I really don’t know.

If Nanoq turns out to be as big as suggested, even if not, an elephant, then it strikes me exploration, delineation, resource building, will be ongoing.

They say additionally, “In Stage 3 across 2026/27, Nanoq is expected to reach a bulk sampling stage through a trial portal extending from the deep-water entry to the mineralized structure, with sample processing conducted at the Nalunaq process plant.”

My post was really intended to convey that open pit mining will not of itself require the sort of infrastructure taking years to build out to start.

We know Black Angel is slated for 2027/2028. I’m just thinking, fingers crossed in air really, Nanoq need not be far behind. So say 2028?

I appreciate just now we’re looking at further exploration this year, as you suggested earlier with a view to maiden MRE Q1 2027.

And on Nanoq, once road complete in due course, and bulk sampling done, seems to me, as always all being well, we’re probably looking at a relatively earlier more straightforward open pit start-up, processing at Nalunaq. Hopefully it’ll prove to be a monster, as originally touted.

The efforts for this year, seem reasonably clear, and from an investment case dependent pretty much solely on successful execution ( why not, as miners go )

Very much geared at increasing resource at Nalunaq ( MRE 5 anytime ) and at the nearer term Black Angel, and in turn Nanoq development projects. Much higher gold recovery on full commissioning of Nalunaq flotation circuit I think pretty obviously, will be of greatest importance, to fund the rest.

And a deal of further exploration across the tenements.

Then we have the Hydropower and Suliaq businesses.

And London Main Market listing. They’ll want their prospectus, or form of it, to be persuasive. Citigroup will be working on all things surrounding that.

If all goes well, 3 or 4 years will see this as a multi-mine, multi-commodity producer.

Just a mention.

https://substack.com/app-link/post?publication_id=1504413&post_id=196250675&utm_source=post-email-title&utm_campaign=email-post-title&isFreemail=true&r=4xupfa&token=eyJ1c2VyX2lkIjoyOTg3MjQ2NjIsInBvc3RfaWQiOjE5NjI1MDY3NSwiaWF0IjoxNzc3ODAxNDM2LCJleHAiOjE3ODAzOTM0MzYsImlzcyI6InB1Yi0xNTA0NDEzIiwic3ViIjoicG9zdC1yZWFjdGlvbiJ9.qW0HObP_S1IjSl08Sg5vjc810t_visSysg_raAjUdzc

‘most PIs have become numb to the progress being made. Or perhaps PIs aren't clever enough to see such solid foundations being laid lol.’

I think Mr. Archer may have nailed that one, all being well, in this extract from his many publicised Amaroq articles.

“Scepticism Creates Opportunity

Here’s what I find most interesting about Amaroq’s current valuation: the market seems to fundamentally not believe it’s possible to succeed in Greenland.

Many have tried and failed. Projects get permitted but never built. Development timelines stretch indefinitely. Costs overrun. Operations prove unworkable in Arctic conditions.

The institutional memory of Greenland mining is failure.

And that’s precisely why Amaroq trades at a massive discount to what it should command based on assets, production, and strategic positioning.

Nobody genuinely believes this is workable. The scepticism is so deeply ingrained that even as Amaroq produces gold ahead of schedule, expands resources beyond expectations, and discovers strategic minerals that governments actively want to fund - the stock still trades as if execution risk remains enormous.

Watch their recent video on Black Angel to get a sense of the real scale here. The infrastructure. The logistics capabilities. The operational expertise required to run multiple field camps simultaneously across Greenland’s most remote regions.

Amaroq is the only operator in Greenland worth knowing. They’ve built what nobody else could: a functioning mining operation with year-round logistics, established permitting pathways, government relationships and local workforce.

That competitive moat is nearly impossible to replicate. You can’t hire it. You can’t acquire it through M&A. You’d have to spend a decade and tens of millions learning what Amaroq already knows.

When the market finally accepts that Amaroq has cracked the code on Greenland mining - when sustained production, positive cash flow and resource expansion prove beyond doubt that this actually works - the re-rating will be violent.

Because right now, you’re getting proven production at development-stage prices.”

Got this from AI.

Summary of Differences

Auramet = Immediate gold offtake + Pre-export finance.

Gunvor = Broad strategic support, logistics, and potential future commodity offtake.

These agreements ensure Amaroq has both a dedicated buyer for their production and the logistical/financial backing to operate in the challenging Greenland environment.

That, with Auramet, , who had agreed to take 100%, I believe at market rates, makes two offtake agreements.

This is an interesting line or two, perhaps an inference of future collaboration.

“Gunvor is excited by, and well positioned to, support the Company’s broader expansion strategy in metals and mining project development, throughout the region and abroad.”

‘On 13 May 2026, following publication of Q1 2026 results, the Company plans to hold a Capital Markets Update for investors and sell-side analysts to provide detail on strategy, operations and growth initiatives’

Teeing up with London Main Market listing in mind.

It would not be unreasonable to expect them to have addressed Nalunaq MRE 5 by then.

If things go reasonably well, flotation circuit commissioned this quarter, recovery commensurate as RNS’d, and MRE5 is anywhere near anticipated, then the bottom should hopefully be under this.

With FCF from Nalunaq ( flexible, $11m USD base, rising according to market conditions )paying for exploration and advancement of the core projects - satellite gold targets, West Greenland hub, and Black Angel.

And there’s so much more.

As per Mr. Archer’s summary.

https://thatstocksguy.substack.com/p/amaroq

When I mention geological model, it’s this, particularly second paragraph, I’m thinking of

‘ Results from the first four drillholes confirmed the presence of the Main Vein hosting structure at the predicted stratigraphic and structural level. This confirmation provides compelling evidence that the Main Vein continues significantly farther down-dip and under cover than previously modelled.

Importantly, this new extension potential is in addition to the Company’s previously reported Exploration Target6, underscoring significant potential for further growth at Nalunaq beyond existing exploration scenarios.

Following these encouraging results, the surface drilling programme has been expanded by approximately 5,700m and is now progressing up-dip toward the mine. The objective is to define the continuity, geometry, and grade potential as well as defined potential high-grade corridors to support targeted resource drilling in 2026.

The drilling also intersected the basal fault as predicted, confirming its location and supporting the interpretation that it represents a key control on Main Vein displacement. This information will be integrated into broader district-scale geological models, including consideration of the newly identified adjacent mineralisation at Napasorsuaq (3.58 g/t Au and 0.54% Cu; as announced on 28 October 2025).’

Well, there’s the Nalunaq MRE 5 anticipated, on which the ‘target date’ was missed. I imagine, because the geological model incorporating the new drilling findings, greater potential than previously recognised, is taking a little longer. Can’t see that MRE being other than ‘good’, as these things go.

And then, later, the transfer from Aim to the London main market. Again, something that should prove beneficial. There’ll be a prospectus for that.

Suliaq coming up too, middle of year I should think. Asset being recognised at £40m anyway.

Then there’s the rest, including a maiden MRE for Nanoq, end of year. And a wealth of drilling prospects.

Any foreseeable risk seems to be in Nalunaq execution. I have confidence that they’ll get the flotation circuit operational this quarter. So that should see the ramping up of gold production, and the revenue with it, with capital costs done, leading to increasing Nalunaq free cash flow, as this year progresses.