Q2 2025 Financial Results
Reykjavík, Aug. 14, 2025 (GLOBE NEWSWIRE) -- ("Amaroq" or the "Company")
Q2 2025 Financial Results
Maiden revenue and good operational progress across all commissioning activities at Nalunaq gold mine
TORONTO, ONTARIO, 14 August 2025, Amaroq Ltd. ((AIM, TSX-V, NASDAQ Iceland: AMRQ, OTCQX:AMRQF), an independent mine development corporation focused on unlocking Greenland's mineral potential, is pleased to announce its Q2 2025 Financial Results. All dollar amounts are expressed in Canadian dollars unless otherwise noted.
A remote presentation for analysts and investors will be held later today at 9:30am BST, details of which can be found further down in this announcement.
Eldur Olafsson, CEO of Amaroq, commented:
"I am pleased to report good progress across all of the commissioning activities at our Nalunaq mine, as we continued the trial mining, on-going construction and commissioning of the processing plant, development of essential infrastructure, as well as stabilization of process plant operating activities. By the end of Q2-25, we had reached two significant milestones, with the first shipment and export of gold doré bars and the associated maiden revenue from operations of C$3.4 million. In terms of commissioning progress, I am very encouraged that in Q2-25, we achieved an average of 3.6x more processing throughput versus Q1-25 and mining ore production was 2.6x better in Q2-25 versus Q1-25. I am pleased to note that this trend has continued in the third quarter, with a further 36kg of doré bars in the safe at site, at the time of writing.
"In June 2025, we successfully completed an oversubscribed and upsized £45 million equity fundraise, following significant reverse interest from international institutional investors. Alongside the fundraise we announced the acquisition of the West Greenland Hub, a new mining province for the Company in Greenland. The West Greenland Hub contains the previously producing Black Angel mine and Kangerluarsuk licences and crystallises our position as the largest acreage holder in Greenland, as well as geographically diversifying our operations into this highly prospective new area in the north west of Greenland.
"With good commissioning progress to date, coupled with the flexibility provided by the enhanced liquidity position following the upsized fundraise; management have decided to bring forward certain construction and commissioning activities for the installation of the flotation recovery (Phase 2) systems, into Q3 and Q4 2025. This will require a period of shut down at the processing facility to accommodate these activities but will enable critical work to be completed before winter, when operating conditions are more challenging, however mining will continue as normal. Once completed, the processing facility will be calibrated to higher recovery rates, enabling higher cash generation from the facility, which will be further enhanced once it is running at the nameplate throughput of 300 t/d, which remains our target by year end 2025. The additional proposed construction and commissioning activities in Q3 and Q4-25 means we are targeting production for the year of approximately 5koz of gold for the full year 2025.
"During the Period, we also completed the planning and scheduling for all of our seasonal exploration field work activities across the gold and strategic mineral asset base, this includes a comprehensive, multi-rig drilling programme at Nalunaq, targeting continued resource expansion, with up to 3,500 metres of surface drilling and near-continuous underground drilling planned, as well as at Nanoq, the analogous gold prospect east of Nalunaq within the Nanortalik gold belt, with approximately 5,000 metres of core drilling to advance towards a maiden Mineral Resource Estimate, as well as operations to expand our understanding across existing and new satellite gold targets within the Nanortalik gold belt."
Q2 2025 Corporate Highlights
Maiden revenue of $3.4 million in Q2 2025, following the first commercial sale of gold doré bars from the Nalunaq mine.
Successfully completed an oversubscribed and upsized equity fundraise in June 2025, raising gross proceeds of approximately £45.0 million.
In June 2025, Amaroq announced the proposed acquisitions of the past producing Black Angel mine and Kangerluarsuk licences to create a West Greenland Hub.
In May 2025, Amaroq signed a non-binding heads of terms with JLE Group Ltd to establish a special purpose vehicle and create a joint venture company to be called Suliaq ApS, dedicated to the provision of essential services, supplies and supporting assets to Greenland's growing mining sector and wider economy.
Amaroq group liquidity of $75.0 million, at period end, consisting of cash balances of $86.0 million, an undrawn revolving credit facility of $8.9 million less trade payables of $19.8 million ($23.4 million as at 31 March 2025).
Q2 2025 Operational Highlights
Completion of first commercial shipments and export of doré bars containing 808 ounces of gold.
Gold doré bars containing 724 ounces of gold were shipped to a refinery facility in Switzerland, and subsequently sold to Auramet for gross proceeds of $[3.4] million.
The Company further shipped 84 ounces of gold to a specialised refinery in the UK for further refining and accreditation as Single Mine Origin ("SMO") gold, which will be available for purchase by the local Greenlandic population and jewellery makers.
In May 2025, Amaroq announced the results of its successful 2024 exploration results across the Company's strategic minerals portfolio JV, Gardaq AS.
Operations at Nalunaq continue to ramp up and remain on track to reach nameplate processing capacity of 300 t/d by the end of the year.
Commissioning and Outlook Highlights
Significant operational progress throughout Q2-25 has continued into Q3-25.
With continued up-time in mine development rates and processing throughput of ~145 t/d in July 2025 on a single shift due to continued construction and commissioning work, the Company continues to target a run rate production of 300 t/d by the end of 2025.
Enhanced liquidity post fundraise has enabled the Company to bring forward certain construction and commissioning activities for the installation of flotation recovery (Phase 2) into the third quarter of 2025, which will require a short period of shut down at the processing facility, however mining will continue as normal.
Once these activities are completed the processing facility will be calibrated to higher recovery rates, enabling higher cash generation from the facility, which will be further enhanced once it is running at nameplate throughput of 300 t/d.
As a result of having the flexibility to bring forward this Phase 2 work, and the subsequent period of shut down, the Company is targeting full year production of approximately 5koz for the full year 2025.
Post Period Corporate Highlights
On 1 July 2025, Amaroq commenced trading on the OTCQX, enabling higher transparency and trading opportunities for investors in the U.S.
In July 2025, Amaroq commenced its 2025 exploration campaign, one of the most ambitious and wide-ranging programs in Amaroq's history.
On 15 July 2025, the Company changed its name from "Amaroq Minerals Ltd." to "Amaroq Ltd."
At Nanoq, a large multi-rig programme was mobilised post period end, with operations commencing in August 2025. This programme will include the construction of a ~40-person camp.
Post period, Amaroq published its inaugural Sustainability Report, highlighting the Company's commitment to responsible development across four key areas: corporate governance, our environment, our people, and our community. The report is available on the Company's website at https://www.amaroqminerals.com/responsibility/#tab-sustainabilityreport .
Services and Renewable Energy business linesAlongside the Company's focus on its two key pillars of mining development and exploration, below is an update on the two mining associated business units:
Suliaq ApS - During Q2-25, the Company incorporated a subsidiary entity called Suliaq ApS in order to create a standalone business which will look to take advantage of the increased interest in mining and infrastructure in Greenland, through the provision of Amaroq's equipment and services, generating additional revenue. In addition, on 28 May 2025, the Company signed a non-binding head of terms with JLE, whereby JLE will invest £4.0 million, by way of an equity contribution in exchange for a 10% shareholding in the subsidiary company, with Amaroq holding 90%. JLE has the option to increase its investment up to a total of £12.0 million, structured in additional tranches of £4.0 million, which will result in proportional increases in JLE's equity stake in the company. During the second half of 2025 a Board and management team will be put in place and initial contracts for the rental of equipment and services to third parties and other companies controlled by the Company, will be finalised.
Renewable energy generation, Power generation and energy provision are some of the most expensive and polluting cost items within remote mining operations. To de-risk the future life of mine at Nalunaq, whilst at the same time investing in technologies to power the future mines, the Corporation is in advanced plans for the construction of at least one mega watt ("MW") of hydro power, within close proximity of Nalunaq. During the second half of 2025, following the request for the trial pit investigation licence in July 2025, designs will be finalised and tenders for turbine, generator, transformer, powerhouse & penstock will be solicited, ahead of the publication of the prefeasibility report and application for the project to take place within the existing Nalunaq Mine Plan framework by the end of 2025, allowing for construction and power generation in 2026. It is anticipated that by year end 2025, the hydro electric business will be formally incorporated in Greenland, under the name IMEQ ApS.
Strategic Acquisitions and West Greenland HubFurther to the announcement on 11 June 2025, the Company has signed the asset purchase agreement for the acquisition of the Kangerluarsuk licences from 80 Mile plc (and Disko Exploration Ltd). Preparations for completion are underway. For the Black Angel transaction with FBC Mining (BA) Limited, which includes the former producing mine and associated infrastructure, the parties are progressing the agreed conditions precedent. On completion, these acquisitions will form the West Greenland Hub as previously outlined.
Update on Impact Benefit AgreementAdditionally, the Company provides an update on the progress of the Impact Benefit Agreement (IBA).
Amaroq has been actively working in collaboration with the Government of Greenland and Kommune Kujalleq to advance the IBA. However, due to the Government of Greenland's need to address competing priorities, and in recognition of these circumstances, an extension of the deadline to 31 December 2025 has been agreed. Amaroq remains fully committed to its collaborative approach to ensure the IBA reflects the shared objectives of all parties. This delay to the formalization of the IBA will not impact current and future operations.
Details of conference callA conference call for analysts and investors will be held this morning at 9:30am BST, including a management presentation and Q&A session.
To join the meeting, please register at the below link:
https://us06web.zoom.us/j/88070384541
Financial Results
Period ended June 30, 2025
Sixmonths
Sixmonths
2025
2024
$
$
Financial Results
Revenue
3,445,308
-
Cost of Sale
(3,874,670)
-
Selling, refining and royalty costs
(196,203)
-
Gross loss
(625,565)
-
Exploration and evaluation expenses
(725,983)
(748,040)
General and administrative expenses
(9,517,159)
(8,294,917)
Gain on lease modification
30,543
-
Foreign exchange gain (loss)
1,718,627
435,012
Interest income
120,243
41,192
Gardaq project management fees
1,257,538
1,214,894
Share of net losses of joint arrangement
(714,208)
(1,909,817)
Unrealised gain (loss) on derivative liability
-
5,291,615
Finance costs
(1,281,497)
(18,132)
Net loss and comprehensive loss
(10,044,723)
(3,988,193)
Basic and diluted loss per share
(0.025)
(0.013)
Financial Position
As at
June 30, 2025
December 31, 2024
$
$
Financial Position
Cash
86,010,495
45,193,670
Inventory
15,213,555
10,182,744
Investment in equity-accounted joint arrangement
14,188,105
14,902,313
Total assets
342,020,663
255,976,986
Total current liabilities
60,170,699
46,973,753
Total non-current liabilities
8,075,788
7,845,657
Shareholders' equity
273,774,176
201,157,576
Working capital (before convertible notes liability and loan payable)
99,470,230
47,525,515
Working capital (loan payable included)
59,221,096
18,903,783
Gold business liquidity
75,040,966
50,860,477
Enquiries:
Amaroq Ltd.Eldur Olafsson, Executive Director and CEO
Ed Westropp, Head of BD and Corporate Affairs+44 (0)7385755711
Eddie Wyvill, Corporate Development+44 (0)7713
Panmure Liberum Limited (Nominated Adviser and Corporate Broker)Scott MathiesonNikhil Varghese+44 (0) 20 7886 2500
Canaccord Genuity Limited (Corporate Broker)James AsensioHarry ReesTel: +44 (0) 20 7523 8000
Camarco (Financial PR)Billy CleggElfie KentFergus Young+44 (0) 20 3757 Company updates:Follow @Amaroq Ltd.on X (Formerly known as Twitter)Follow Amaroq Ltd. on LinkedIn
Further Information:
About AmaroqAmaroq's principal business objectives are the identification, acquisition, exploration, and development of gold and strategic metal properties in South Greenland. The Company's principal asset is a 100% interest in the Nalunaq Gold mine. The Company has a portfolio of gold and strategic metal assets in Southern Greenland covering the two known gold belts in the region as well as advanced exploration projects at Stendalen and the Sava Copper Belt exploring for Strategic metals such as Copper, Nickel, Rare Earths and other minerals. Amaroq is continued under the Business Corporations Act (Ontario) and wholly owns Nalunaq A/S, incorporated under the Greenland Companies Act.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Glossary
Au
gold
g
grams
g/t
grams per tonne
km
kilometres
koz
thousand ounces
m
meters
MRE3
Mineral Resource Estimate 2022
MRE4
Mineral Resource Estimate 2024
oz
ounces
t
tonnes
t/d
Tonnes per day
t/m3
tonne per cubic meter
USD/ozAu
US Dollar per ounce of gold
Inside InformationThis announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No. 596/2014 on Market Abuse ("UK MAR"), as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018, and Regulation (EU) No. 596/2014 on Market Abuse ("EU MAR").
Qualified Person StatementThe technical information presented in this press release has been approved by James Gilbertson CGeol, VP Exploration for Amaroq Ltd. and a Chartered Geologist with the Geological Society of London, and as such a Qualified Person as defined by NI 43-101.
Amaroq Ltd.
UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTSFor the three and six months ended June 30, 2025
The attached financial statements have been prepared by Management of Amaroq Ltd. and have not been reviewed by the auditor
As at June 30,
As at December 31,
Notes
2025
2024
$
$
ASSETS
Current assets
Cash
86,010,495
45,193,670
Sales tax receivable
137,327
163,611
Prepaid expenses and others
3
10,203,201
10,223,447
Interest receivable
107,500
114,064
Financial Asset - Related Party
6,18
7,719,717
-
Inventory
4
15,213,555
10,182,744
Total current assets
119,391,795
65,877,536
Non-current assets
Deposit
178,541
181,871
Escrow account for closure obligations
5
7,298,682
6,799,104
Financial Asset - Related Party
6,18
-
6,699,179
Investment in equity accounted joint arrangement
6
14,188,105
14,902,313
Mineral properties
7
48,683
48,683
Right of use asset
11.1
107,433
621,826
Capital assets
8
200,807,424
160,846,474
Total non-current assets
222,628,868
190,099,450
TOTAL ASSETS
342,020,663
255,976,986
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued liabilities
9
19,843,329
18,233,113
Loans payable
10
40,249,134
28,621,732
Lease liabilities, current portion
11
78,236
118,908
Total current liabilities
60,170,699
46,973,753
Non-current liabilities
Lease liabilities
11
74,609
591,805
Asset retirement obligation
12
8,001,179
7,253,852
Total non-current liabilities
8,075,788
7,845,657
Total liabilities
68,246,487
54,819,410
Equity
Capital stock
13
373,477,993
291,169,401
Contributed surplus
8,361,946
8,009,215
Accumulated other comprehensive loss
(36,772)
(36,772)
Deficit
(108,028,991)
(97,984,268)
Total equity
273,774,176
201,157,576
TOTAL LIABILITIES AND EQUITY
342,020,663
255,976,986
Subsequent events
21
The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
Three monthsended June 30,
Six monthsended June 30,
Notes
2025
2024
2025
2024
$
$
$
$
Revenue
Revenue
3,445,308
-
3,445,308
-
Cost of Sales
(3,874,670)
-
(3,874,670)
-
Selling, refining and royalty costs
(147,851)
-
(196,203)
-
Gross loss
(577,213)
-
(625,565)
-
Expenses
Exploration and evaluation expenses
15
(532,563)
127,173
(725,983)
(748,040)
General and administrative
16
(4,890,837)
(4,335,691)
(9,517,158)
(8,294,917)
Foreign exchange gain
1,127,017
514,521
1,718,627
435,012
Operating loss
(4,873,596)
(3,693,997)
(9,150,079)
(8,607,945)
Other income (expenses)
Interest income
93,937
25,866
120,243
41,192
Gardaq Project management fees
18.1
613,985
578,568
1,257,538
1,214,894
Gain on lease modification
-
-
30,543
-
Loss on liability derecognition
(307,263)
-
(307,263)
-
Share of net loss of joint arrangement
6
(343,865)
(1,263,385)
(714,208)
(1,909,817)
Unrealized gain on derivative liability
-
9,591,828
-
5,291,615
Finance costs
17
(829,224)
(9,558)
(1,281,497)
(18,132)
Net income (loss) and comprehensive income (loss)
(5,646,026)
5,229,322
(10,044,723)
(3,988,193)
Weighted average number of common shares outstanding, basic
403,008,869
326,825,939
400,371,106
308,700,211
Weighted average number of common shares outstanding, diluted
403,008,869
364,748,474
400,371,106
308,700,211
Basic earning (loss) per common share
19
(0.014)
0.016
(0.025)
(0.013)
Diluted earning (loss) per common share
19
(0.014)
0.014
(0.025)
(0.013)
Effect of dilution
-
0.002
-
-
The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
Amaroq Ltd.Consolidated Statements of Changes in Equity(Unaudited, in Canadian Dollars)
Notes
Number of common shares outstanding
Capital Stock
Contributed surplus
Accumulated other comprehensiveloss
Deficit
