Amaroq (AMRQ) Q3 2024 earnings summary

Executive summary

• Nalunaq mine's processing plant phase I is complete, with mining ongoing since May and first gold production expected in Q4 2024; major plant components installed and ore stockpiled.

• Off-take agreements signed with Auramet and Metalor for gold sales; gold to be refined in Switzerland.

• 2024 exploration program completed with over 8,600 meters drilled across gold and strategic minerals portfolio; results expected in Q4 2024 and Q1 2025.

• Convertible loan notes of US$22.4 million converted, strengthening the balance sheet and reducing cash interest costs.

• Amaroq is the largest licence holder in South Greenland, focusing on gold and strategic minerals with a diversified project portfolio and local procurement/clean energy initiatives.

Financial highlights

• Capital assets increased to C$117.26M in Q3 2024 from C$85.54M in Q2 2024, mainly due to process plant construction.

• Cash on hand at September 30, 2024, was $25.9 million, down from $31.7 million at June 30, 2024.

• Cash outflows related to Nalunaq project totaled C$86.70M for the nine months ended September 30, 2024.

• Total assets rose to $199.1 million at September 30, 2024, with an equity ratio of 61%.

• Net loss of $18.0 million for the nine months ended September 30, 2024, compared to net income of $13.4 million for the same period in 2023.

Outlook and guidance

• First gold production at Nalunaq is imminent in Q4 2024, with steady-state operation targeted for Q3 2025.

• Production ramping from 130 to 300 tonnes per day, with gold recovery expected to reach 94% by end of next year.

• Updated measured resource statement for Nalunaq expected in Q1 2025, incorporating recent drill results.

• 2026 cash flow projected at $130 million with 40,000-50,000 ounces annual production, assuming current gold prices and all-in costs of CAD 5-6 million per month.

• 2025 exploration strategy includes definition and infill drilling at Nalunaq and resource drilling at Nanoq.