25th Feb 2026 15:58
(Alliance News) - Amaroq Ltd on Wednesday said it is estimating gold production at its Nalunaq site to sit between 25,000 and 35,000 ounces this year.
The Toronto-based, Greenland-focused mining company said production in the first half of 2026 will likely sit in the 7,000 to 10,000 ounces range, as its phase one gravity circuit system only recovers about 60% of gold ore trapped in other minerals.
Flotation, or phase two, would boost that rate to over 90% once it comes online in the second half, explaining the tilt towards the latter part of the year as the company expects further production of 10,000 to 12,000 ounces in the last quarter alone.
Even at the low end of the guidance, it would mean an over four-fold increase in production year-on-year, as the company reported gold production of 6,600 ounces in 2025 earlier this year.
Amaroq shares were up 7.6% at 121.11 pence each on Wednesday afternoon in London.
The mining company also said it will expect all-in sustaining costs between USD69 million and USD73 million, with investment in sustaining capital attributed to "underground development and drilling, together with maintenance capital for plant and camp".
Furthermore, it anticipates experiencing a fall in costs in the second half as it transitions from a contractor to an owner-operator model for all its operations.
Amaroq added that a further USD14 million investment in Nalunaq will go towards the completion of the processing plant, underground mining equipment, and additions to existing camp facilities.
Its exploration programme, with base expenditures set at USD11 million but scalable up to USD29 million, include operations in West Greenland, Nanoq, Nalunaq, Satellite Gold Targets, Minturn IOCG, Ilua REE, and Stendalen.
Amaroq also highlighted a cash balance at the end of 2025 of CAD27.2 million, with CAD8.9 million in undrawn credit facilities, CAD15.3 million of net debt out of CAD62.8 million in total current liabilities, and total assets of CAD352.6 million of which CAD24.2 million in inventory.
Chief Executive Officer Eldur Olafsson said: "Within the current gold price environment and based on our cost and capital budgets for the year, we anticipate strong free cash flow from operations, supporting comprehensive exploration programmes, as we seek to unlock the substantial value within our portfolio.
"We continue to engage in discussions with third parties in relation to the independent financing of our Suliaq support services and logistics business...We have a very exciting opportunity set and are actively looking at ways to fast-track the various projects we are developing, in order to realise incremental net present value through accelerated execution," he added.
By Martin Miraglia, Alliance News reporter
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