14th May 2025 12:22
(Alliance News) - Amaroq Minerals Ltd on Wednesday said its net loss narrowed in the first quarter amid a foreign exchange gain as it reported "significant operational progress" since the end of the quarter.
The mine developer which has gold and strategic mineral assets in southern Greenland said its net loss narrowed to CAD4.4 million, around GBP2.4 million, in the three months to the end of March from CAD9.2 million a year ago.
Exploration and evaluation expenses fell 78% to CAD193,420 from CAD875,213 while general and administrative expenses increased 17% to CAD4.6 million from CAD4.0 million.
The firm swung to a foreign exchange gain of CAD591,610 from a loss of CAD79,509 a year ago.
It did not face an unrealised loss on derivative liability, compared to a CAD4.3 million loss registered in the first quarter of 2024.
Amaroq said the pace of construction and commissioning activities at its Nalunaq plant during the quarter was "understandably slow" due to winter conditions in Greenland.
However, the firm noted "good progress" in the second quarter in plant commissioning, particularly for mining operations.
"We are now in the final stages of agreeing mining [key performance indicators] with our contractor, Thyssen to support feeding the plant with enough ore to allow 300 tonnes per day processing capacity by the end of the year," said Chief Executive Officer Eldur Olafsson.
He continued: "While we remain in the commissioning and construction phase at Nalunaq, I am encouraged by progress to date and, with conditions continuing to improve in Southern Greenland as we head into summer, our teams are working hard to deliver our targeted throughput by the end of the year and a busy exploration season."
The company said it had liquidity of CAD23.4 million at the end of March.
Amaroq expects full year gold production between 5,000 and 20,000 ounces due to "promising operational progress. It said the wide range is due to "the nature of the trial mining and commissioning year".
"There is however potential to narrow this guidance range as we progress operations through the remainder of the year. Once full ramp up is achieved, the company will provide its outlook for the full year run rate in 2026," Amaroq said.
Shares in Amaroq Minerals were down 5.8% at 81.00 pence in London on Wednesday afternoon.
By Michael Hennessey, Alliance News reporter
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