Amaroq Minerals reports solid progress in 2023

26th Mar 2024 14:20

(Sharecast News) - Amaroq Minerals reported a robust liquidity position in its full-year results on Tuesday, with group liquidity reaching CAD 78.2m (£45.62m) as of 31 December.

The AIM-traded firm said its gold business exhibited working capital of CAD 37.6m, while the strategic minerals business showcased available liquidity of CAD 18.7m.

It said it achieved significant milestones in the year, including the successful transfer of its Icelandic listing to the Iceland Nasdaq Main Market and admission to the OMX Iceland 15 Index.

Moreover, Amaroq expanded its licence holdings in South Greenland, and made notable discoveries, particularly in nickel-copper at Stendalen.

In the fourth quarter, operational highlights encompassed advancing contracting, procurement, engineering, construction, and mining activities.

Notably, 80% of key contracts for the processing plant were concluded, and procurement was 80% completed.

Construction efforts included expanding the camp accommodation capacity and progressing the processing plant construction.

Mining activities focussed on rehabilitation works, laying the foundation for trial mining expected to start in the first quarter or early in the second quarter of this year.

Looking ahead to 2024, Amaroq's outlook included progressing permitting, engineering, contracting, construction, mining, and exploration activities.

Notably, the company said it anticipated completing engineering for the processing plant in the second quarter, and concluding remaining contracts by the same period.

Construction milestones included starting steel structure erection for the process plant building and initiating the installation of mechanical and electrical components in the second half of 2024.

Mining efforts would continue with the rehabilitation of mine infrastructure and the development of ramps to facilitate future mining activities, with the aim of achieving first gold production in 2024.

Additionally, Amaroq said it was planning to enhance support infrastructure to accommodate up to 120 personnel and continue exploration activities focused on extending existing blocks and delineating new discoveries.

"Following our successful Fundraising in February 2024, we have increased the scope of the Nalunaq gold project development to account for accelerating the transition of the process plant to nameplate capacity of 300 tonnes per day," said chief executive officer Eldur Olafsson.

"We experienced some operational and procurement delays towards the end of 2023 due to adverse weather conditions, which continued into the start of 2024.

"This situation has now significantly improved and we are making good operational progress."

Olafsson said Greenland offered "significant potential" for improving the security of supply of raw materials for Europe.

"We are particularly encouraged by recent developments following the recent signing of two new collaboration agreements to strengthen the EU-Greenland Partnership and the opening of a new EU office in Nuuk.

"2024 is a crucial year for Amaroq as we focus on bringing Nalunaq into production, whilst accelerating exploration activities across our wider precious and strategic metals portfolio."

At 1400 GMT, Amaroq Minerals shares were down 4.76% at 78.1p.

Reporting by Josh White for Sharecast.com.