Amaroq reports solid second-quarter operational performance
14th Aug 2024 10:52
(Sharecast News) - Greenland-focussed mine developer Amaroq Minerals reported liquidity of $62.2m in its second quarter results on Wednesday, including cash balances and undrawn credit facilities, down from $96.3m at the end of the first quarter.
The AIM-traded firm said working capital for the gold business, excluding convertible note liabilities, stood at $50.5m as of 30 June.
Operationally, Amaroq achieved significant milestones in the development of its Nalunaq gold project.
The Greenland government approved both the environmental impact assessment (EIA) and the social impact assessment (SIA) for the project in June.
Amaroq said it was now focussed on finalising the impact benefit agreement (IBA) by the end of the year.
Construction at the Nalunaq site was progressing well, with plant pad earthworks and civil construction completed, and overall process plant construction reaching 56% completion.
The first ore round was successfully blasted on 30 June, marking a critical step in mine development.
In terms of exploration, Amaroq said it mobilised drill crews and equipment for surface exploration at the Nalunaq site, targeting expanded mineralisation at the Target Block.
Additionally, the company launched an expanded drilling programme at the Stendalen copper-nickel discovery, supported by three drill rigs and a semi-permanent camp.
Post-period, Amaroq said it secured a $35m increase in its revolving credit facilities with Landsbankinn and appointed Ellert Arnarson as chief financial officer.
Looking ahead, Amaroq said it was on track to deliver first gold from the Nalunaq project in the fourth quarter, with further infrastructure expansions planned to accommodate increased personnel on-site.
The company continued to advance its exploration efforts at Stendalen, targeting significant copper-nickel mineralisation.
"Progress at Nalunaq is advancing smoothly, and we remain on track to achieve first gold production later this year," said chief executive officer Eldur Olafsson.
"The completion of the main building works marks a significant milestone, and we are now focused on installing the key components of the processing plant.
"A standout achievement this quarter was receiving approval from the Greenlandic Government for our environmental and social impact assessments - upholding the highest standards of environmental and social responsibility is fundamental to our mission as we bring Nalunaq into production."
Olafsson said the company's exploration efforts across its gold and strategic minerals targets were also progressing well.
"At Nalunaq, the Target Block resource expansion program is underway, with drill crews now fully mobilised on-site.
"At Stendalen, we have successfully completed the camp construction, and drilling operations have begun, informed by promising results from recently completed ground geophysics.
"Additionally, we are pleased to announce a significant post-period development: the successful arrangement of a substantial increase and extension of our debt financing package with Landsbankinn."
At 0943 BST, shares in Amaroq Minerals were up 3.15% at 61.38p.
Reporting by Josh White for Sharecast.com.