Amaroq

Tick toq

Good Morning Team.

Yesterday, Amaroq released its Q1 2026 operational and financial results.

The headline: everything is proceeding exactly as described in these pages.

No surprises or disappointments.

Thank god. I have more riding on this than is sensible.

Let’s dive in.

The Numbers

Revenue of CAD$18.9 million from 2,970 ounces sold at an average realised gold price of $4,656 per ounce.

Gross profit of CAD$9.8 million.

For a company the market was treating as a development-stage risk story twelve months ago, that is a real profit from a real mine selling real gold at record prices.

Gold production for the quarter came in at 3,694 ounces — in line with guidance, and with an average feed grade of 19.9 g/t against full-year guidance of 14 to 15 g/t.

The ore is running hotter than the model predicted.

Again.

I have said repeatedly that actual grades beating the resource model is extraordinarily rare in mining. At Nalunaq, it keeps happening.

Recovery averaged 61%, exactly in line with the planned Phase 1 gravity-circuit recovery factor of approximately 60%. This is the number that is about to change materially — and the market still hasn’t priced it in.

The Flotation Circuit: The Engine Is About to Start

The entire H1 2026 production profile — guided at 7,000 to 10,000 ounces — reflects the gravity-only circuit running at roughly 60% recovery.

The full-year guidance of 25,000 to 35,000 ounces is back-end weighted because flotation commissioning, expected in Q2, will lift recoveries to approximately 90 to 95%.

That is a step-change in the economics of every tonne of ore that goes through the plant.

When the flotation circuit is online, the same ore body, the same mill feed, the same mine plan — produces 50% more gold per tonne processed.

The Q4 run-rate of 10,000 to 12,000 ounces implied by guidance becomes the new baseline, not an optimistic projection.

I said this twelve months ago. I said it again in January. The commissioning timeline confirms it is arriving on schedule.

We are now just one quarter away from the thesis being visible and provable.

Owner-Operator Transition: Costs Are Falling

Management explicitly confirmed that the transition to fully owner-operated mining has been completed, with the underground fleet largely delivered and commissioned by end of Q1. The guidance for lower H2 costs driven by moving drilling, processing and camp support in-house is reiterated.

Every ounce produced in H2 will cost less than every ounce produced in H1.

Combined with higher output from flotation, the margin expansion in H2 is not subtle.

At $5,000 gold — which is looking increasingly like a floor in this brave new world — the Q4 free cash flow implied by the midpoint of production guidance is approximately USD$40 million from a single quarter.

Annualised, that is USD$160 million per year.

From one mine.

Before Nanoq, Black Angel, or any government support.

A company on that trajectory does not trade at a 22% free cash flow yield unless the market genuinely does not believe it.

And increasingly, the market has no basis left for that scepticism.

The Balance Sheet: Context Required

Cash stood at CAD$8.8 million at quarter end, down from CAD$21.5 million at year end. The net debt position reflects accelerated Phase 2 investment and the underground fleet purchase — capital deployed deliberately to build the asset, not burned through operational weakness.

The important development here is post-period: on April 30, Amaroq secured a new revolving credit facility with Landsbankinn and Gunvor Group, doubling capacity from $35 million to $70 million while reducing the overall cost of funding.

Exploration: Everything Is Active

The 2026 exploration calendar reads like a direct confirmation of every thesis laid out in these pages.

June brings the commencement of drilling at Ilua, the rare earth prospect, targeting the scale and depth potential of REE-hosting pegmatite systems.

July brings rehabilitation of surface facilities at Black Angel, with resource growth drilling targeted in 2026 and/or 2027. The zinc-lead-silver-germanium-gallium project — the one the market is valuing at approximately nothing — is moving toward Phase 1 mining in 2028, with feasibility work underway.

To reiterate: Black Angel contains germanium averaging 44 ppm and gallium averaging 21 ppm, both at commercially significant concentrations, in a past-producing mine with existing infrastructure. China controls 98% of global gallium production and 68% of germanium.

When Trump’s tariffs hit, the first two metals China restricted were germanium and gallium. Amaroq has both.

In the ground and confirmed at scale.

July and August bring systematic drilling at the Central Zone of Nanoq, with the objective of establishing the geological continuity required to underpin a Maiden Mineral Resource Estimate.

I have said repeatedly that the Nanoq results will be a major re-rating catalyst entirely independent of Nalunaq production. That work is now formally active. The metallurgical sample has already been dispatched to SGS Lakefield in Canada for initial processing assessment.

Also in August: Stendalen nickel-copper, where the team is targeting sulphide traps. And Minturn — the large IOCG prospect described in a recent RNS as a mineral system of significant scale — is receiving scout drilling following identification of surface iron grades up to 69.5% Fe, indicating the presence of a significant iron-oxide core.

Companies do not use the language ‘significant scale’ lightly in regulatory filings.

Institutional Validation: The Tide Is Turning

Citigroup has been formally appointed as AMRQ’s sponsor and financial adviser for the Main Market uplisting.

The TSX Venture Exchange delisting is complete. The Final Mine Plan and Closure Plan for the Nalunaq licence has been signed off by the Government of Greenland — a milestone that consolidates the operational foundation.

The structural buying event — index inclusion, passive fund inflows, institutions that cannot touch AIM-listed stocks suddenly able to allocate — has not happened yet. All of it is coming.

And the US government angle has not gone away.

As the BBC reported this week, structured negotiations between Washington, Copenhagen and Nuuk are progressing in regular high-level meetings, with the Greenlandic Prime Minister himself confirming talks are ‘in a better place.’

Reuters is making similar noises, reporting on EIFO’s potential financing for Suliaq.

While headlines focused on Trump’s rhetoric, the diplomatic reality is professional and advancing.

That is the context in which Eldur Olafsson’s conversations with state-backed agencies on both sides of the Atlantic are taking place.

Where We Stand

Twelve months ago, this was a development story with execution risk and a market that did not believe Greenland mining was possible.

Today, it’s a cash-generative gold producer with a net profit on the board, grades beating the model, flotation commissioning one quarter away, a world-class exploration programme kicking off in June, a Citi-backed Main Market uplisting imminent, and a critical minerals portfolio that Western governments are actively seeking to fund.

The sceptics have had a story for every exit. The guidance cut. The commissioning noise. The balance sheet. The H1 weighting. The net debt.

Wrong every time.

Q2 2026 is the quarter that proves the thesis beyond argument. Flotation online, recoveries jumping, owner-operator cost reductions kicking in, and a production quarter that will make it impossible to argue about whether 40,000+ annualised ounces is achievable.

By Q4, when Nalunaq delivers 10,000 to 12,000 ounces at $1,250 to $1,450 AISC, Phase 2 fully commissioned, gold at record highs, and institutional flows beginning in earnest — we will look back at this entry point as a gift.

For those staying out because you believe it can’t be done.

It can.

It is.

Last chance at £1 a share.

The clock’s ticking.

And when this hits £2 by Christmas.

You all owe me a beer.