Amaroq's Black Angel

The Strategic Minerals Surprise That Could Change Everything

Good Morning Team.

One month ago, I laid out the investment case for Amaroq Limited.

The thesis was straightforward: a producing high-grade gold miner with district-scale exploration upside, a fortress-like balance sheet, and a strategic position in Greenland that nobody else can replicate.

The West Greenland Hub - anchored by the Black Angel zinc-lead-silver mine - was presented as the second pillar of growth.

A proven brownfield asset with existing infrastructure, ready to be brought back into production using the same playbook that’s working at Nalunaq.

This week’s update from Amaroq changes the equation.

Black Angel isn’t just a zinc-lead-silver restart story anymore. It’s potentially a strategically significant critical minerals project.

Watch the video above, and then let me explain why.

The Discovery Nobody Expected

When Amaroq acquired Black Angel in June 2025, the focus was clear: 11.2 million tonnes of historical production at impressive grades (12.6% zinc, 4.1% lead, 29 g/t silver), existing infrastructure including underground workings and a deep-water port, and a current resource of 3.7 million tonnes waiting to be expanded.

The plan was textbook brownfield development - drill to grow the resource, conduct metallurgical work, update studies, and restart operations targeting zinc, lead and silver production by the late 2020s.

Standard base metals development.

Solid economics.

Nothing revolutionary.

Then Amaroq’s technical team did something that previous operators apparently never bothered with: they re-assayed historical bulk samples for a broader suite of elements.

The results came back this week.

Average grades from the Angel and Cover deposits:

• 24.6% zinc (confirming the high-grade nature)

• 28.1% lead (even better than historical averages)

• 295 g/t silver (high enough on its own)

Lead, zinc and silver are all on the 2025 List of Critical Minerals as defined by the USGS.

But buried in the assay table were three additional elements that transform this project from a good base metals restart into a strategic critical minerals asset:

• Germanium: 44 ppm (ranging up to 93.7 ppm)

• Gallium: 21 ppm (ranging up to 59.4 ppm)

• Cadmium: 1,328 ppm (ranging up to 3,500 ppm)

If you’re not familiar with germanium and gallium, let me provide some context on why these numbers matter.

Why Germanium and Gallium Are Strategic Game-Changers

Germanium and gallium aren’t household names like copper or lithium. But they’re absolutely critical to modern technology and defence systems - and China controls nearly all of it.

Germanium is essential for:

• Fibre optic cables (60% of demand)

• Infrared optics for night vision and thermal imaging

• Satellite solar cells

• High-efficiency photovoltaics

• High-frequency electronics

Gallium is critical for:

• Semiconductors and integrated circuits

• LED technology

• 5G telecommunications infrastructure

• Radar systems and electronic warfare

• Satellite communications

According to the US Geological Survey, China accounts for approximately 98% of global gallium production and 68% of germanium production. That’s not market share - that’s near-total control of the supply chain.

Both elements appear on the EU Critical Raw Materials List and the US Critical Minerals List. And both have been subject to Chinese export controls since 2023, when Beijing restricted exports in response to Western semiconductor restrictions.

The strategic implications are profound. When China can turn off the tap on materials essential to defence systems, telecommunications infrastructure, and advanced manufacturing, Western governments have a serious national security problem.

This is why the Pentagon is planning to stockpile $1 billion worth of critical minerals. This is why the Defense Production Act keeps getting invoked for mining projects. This is why companies like MP Materials have received over $500 million in combined government financing and equity investment.

The US Department of the Interior has cited an $805 million potential GDP loss from foreign trade disruption from germanium alone.

The West needs supply. Urgently.

And Black Angel just became one of the very few projects globally that can deliver it.

The Economics Are Potentially Extraordinary

Amaroq’s preliminary mass-balance calculations suggest that if these elements report to a zinc concentrate as expected - which is standard metallurgy for these minerals - the concentrate grades could reach:

• 102 ppm germanium

• 48.5 ppm gallium

• 3,040 ppm cadmium

All three grades are considered commercially significant for by-product recovery.

Now, germanium and gallium don’t have transparent spot markets like base metals. Pricing is opaque, negotiated through long-term contracts, and heavily influenced by strategic considerations rather than pure supply-demand dynamics.

But we can establish some rough parameters.

Germanium dioxide currently trades around $1,000-1,400 per kilogram depending on purity and contract terms. High-purity metal can command significantly higher prices. Gallium metal trades around $300-500 per kilogram, though prices have been volatile due to the export restrictions.

Let’s run a conservative back-of-envelope calculation on a 10 million ton resource at 8% combined zinc-lead (well below the deposit’s historical performance):

A conventional operation might produce 50,000-75,000 tonnes of zinc concentrate annually. At 102 ppm germanium, that’s 5-7.5 kilograms of germanium per tonne of concentrate, or roughly 250,000-560,000 kilograms of germanium annually.

At $1,000/kg, that’s $250-560 million in gross germanium value per year. Obviously, recovery rates, processing costs, and marketing deductions reduce the net revenue significantly - but even at 50% payability (typical for by-products), you’re looking at $125-280 million annually.

For context, the entire zinc production from a 10Mt resource over 15-20 years might generate $2-3 billion in total revenue at current zinc prices. The germanium and gallium by-products could add 30-50% to total project revenues.

That’s not a rounding error. That’s transformational economics that dramatically improve project IRR and NPV while reducing payback periods.

China’s Monopoly Creates Western Opportunity

China’s dominance of germanium and gallium is the result of decades of strategic investment in processing capacity, vertical integration of supply chains, and willingness to operate assets at low margins to maintain market control.

Western producers existed historically - germanium was recovered as a by-product from zinc mining in the US and Europe for decades. But Chinese production drove prices down to levels where Western operations became uneconomic, and the processing capacity was mothballed.

Now that China has demonstrated willingness to weaponise access through export controls, Western governments finally understand the vulnerability.

The problem is that rebuilding domestic supply chains takes time. You can’t just flip a switch and create germanium refining capacity. You need:

1. Mine supply of concentrates containing germanium/gallium

2. Processing facilities capable of extracting and refining these elements

3. Expertise and workforce with the technical knowledge

4. Long-term off-take agreements providing revenue certainty

Black Angel solves the first problem - mine supply - in a jurisdiction that’s politically stable, Western-aligned, and actively supported by both US and European governments.

The processing question is solvable. Germanium and gallium recovery from zinc concentrates is proven technology. Multiple companies globally have the capability; they just need feed material and economic incentives.

Government support can provide both.

The Government Support Case Just Got Stronger

Last month, I outlined how Amaroq’s critical minerals portfolio positions the company for potential government backing through various mechanisms - state loans, off-take agreements, direct investment or infrastructure grants.

That thesis was based on early-stage exploration projects with years of development ahead: copper targets, nickel-copper prospects, rare earth showings. All prospective, but none near-term.

Black Angel is different.

This is a past-producing mine with 17 years of operational history. The deposit is defined. The metallurgy is understood. The infrastructure exists.

The permitting pathways are clear because it’s been done before.

Most critically, with the right support, first concentrate production could occur within 3-4 years rather than the 7-10+ year timelines typical for greenfield projects.

If you’re a government official tasked with securing critical mineral supply chains, Black Angel is exactly the kind of project you want to back:

• Proven resource with expansion potential

• Established infrastructure reducing capital requirements

• Near-term production timeline (2028-2029 realistic)

• Experienced operator with demonstrated capability in Greenland

• Strategic location in a NATO-aligned territory

• Multiple critical minerals in a single project (Ge, Ga, Cd)

The precedent for government support is well-established. Beyond MP Materials’ $550 million package, we’ve seen:

• The US Export-Import Bank considering $120 million for Greenland’s Tanbreez rare earth project

• The EU designating Greenland’s Amitsoq graphite project as ‘strategic’ under the Critical Raw Materials Act

• Department of War grants for tungsten, antimony and other critical mineral projects

• Infrastructure Investment and Jobs Act funding for domestic mineral processing

CEO Eldur Olafsson stated explicitly this week:

‘In light of the current global supply constraints for critical metals such as germanium and gallium, both vital to AI, defence, renewable energy and advanced technology applications - finding these elements in a mine which has the ability to restart relatively quickly, underscores the strategic importance of Amaroq’s expanding portfolio to Western supply chains.’

That’s management signaling to government stakeholders that they understand the strategic value and are positioned to deliver.

The Nalunaq Playbook Applied to Base Metals

What gives me confidence in execution is that Amaroq has done this before.

Nalunaq was acquired as a past-producer that closed in 2013 due to low gold prices and operational challenges under previous management.

Amaroq systematically de-risked it through drilling, infrastructure development and methodical planning.

They poured first gold ahead of schedule.

Production is ramping faster than guided.

The operation is working.

Black Angel follows the same template:

• Past production: 11.2 million tonnes mined (1973-1990)

• Existing infrastructure: Underground workings, 20+ person camp, aerial tramway, deep-water port

• Current resource: 3.7 million tonnes with significant expansion potential

• High grades: Historical production averaged 12.6% Zn, 4.1% Pb, 29 g/t Ag

• Brownfield advantages: Permitting pathways established, local relationships in place, logistics understood

The 2026 work program is already defined:

• Geophysical surveys to define drill targets

• Systematic drilling focused on the Deep Ice body (where historical drilling returned 6.9m at 13.1% Zn and 19.5% Pb)

• Camp and facility upgrades to support expanded operations

• Resource expansion targeting 10+ million tonnes before technical studies begin

This isn’t speculative exploration where success requires discovering something new. It’s methodical resource definition and engineering work to restart a proven deposit that generated substantial cash flow for 17 years.

The addition of germanium, gallium and cadmium by-products doesn’t complicate the flowsheet - these elements naturally report to zinc concentrates and can be sold directly into existing markets or recovered through toll arrangements with specialised refiners.

Valuation Implications

Here’s what’s fascinating from an investment perspective: the market is still valuing Black Angel as a base metals restart story.

Amaroq’s is producing gold at Nalunaq, holds significant exploration upside across multiple projects, has £75 million in cash, zero debt and owns 100% of the West Greenland Hub.

The critical minerals discovery at Black Angel isn’t priced in because it was just announced this week. The market hasn’t had time to digest the implications.

But let’s think through what this could mean:

If Black Angel progresses to a 10 million tonne resource (very achievable given historical production of 11.2Mt and significant unmined zones), produces zinc-lead-silver concentrates for 15-20 years, and recovers germanium and gallium as by-products with government off-take support...

That’s a project potentially worth several hundred million dollars in NPV. Possibly more if germanium/gallium pricing strengthens due to continued supply constraints.

And that’s just one component of Amaroq’s asset base. Nalunaq is generating cash flow. Nanoq could be a company-maker on its own. The broader critical minerals portfolio provides additional optionality.

The government support angle adds a qualitative element that’s hard to quantify but enormously valuable. If Black Angel receives state-backed financing, guaranteed off-takes, or strategic investment, the de-risking is substantial and the IRR improves dramatically.

The 100% Ownership Clarification Matters

One additional detail from this week’s announcement that shouldn’t be overlooked: Amaroq reconfirmed that the West Greenland Hub will be 100% owned by Amaroq, separate from the Gardaq Joint Venture (in which Amaroq owns 51%).

This matters because it means shareholders capture 100% of the upside from Black Angel and Kangerluarsuk rather than having it diluted through JV partnership economics.

The Gardaq JV will continue focusing on early-stage critical minerals exploration (copper, nickel, rare earths) where risk-sharing makes strategic sense. But the advanced projects with near-term development potential - Nalunaq, Nanoq, Black Angel, Kangerluarsuk - remain fully within the Amaroq portfolio.

From a shareholder perspective, this is optimal structure.

You get full exposure to the highest-probability near-term value creation while maintaining meaningful optionality on the exploration upside through the 51% JV interest.

The Western Supply Chain Imperative

Let’s zoom out to the broader geopolitical picture, because that’s ultimately what makes this discovery so significant.

The West is facing a critical minerals crisis.

Not in five years or ten years.

Right now.

China controls the processing capacity for most technology-critical elements. They’ve demonstrated willingness to restrict exports as geopolitical leverage. Western manufacturing, defence systems and technology infrastructure are vulnerable.

Governments understand this. The policy response is unprecedented - trillions in announced spending across the US Inflation Reduction Act, CHIPS Act, Infrastructure Investment and Jobs Act and European equivalents.

But policy alone doesn’t create supply. You need actual mines producing actual materials.

Germanium is particularly acute because there are very few primary germanium deposits globally. It’s almost always recovered as a by-product from zinc mining or coal combustion. The world’s largest germanium reserves are in China (because they control zinc production and coal-fired power generation where germanium is recovered from fly ash).

Finding economically recoverable germanium outside China, in a jurisdiction with friendly governments, established infrastructure, and an experienced operator, is extremely rare.

Black Angel checks every box.

What Comes Next: The 2026-2027 Timeline

The near-term catalyst pathway for Black Angel is clear:

Q4 2025: Final government approvals from Greenland on the acquisition complete. Site work and planning continues through the winter using existing facilities.

Q2-Q3 2026: Geophysical surveys define priority drill targets. Camp upgrades completed. Drill program mobilisation.

Q2-Q4 2026: Systematic drilling campaign focused on Deep Ice body and resource expansion zones. Target: expand resource from 3.7Mt to 10+ Mt.

2026: Metallurgical test work confirms germanium/gallium recovery rates and establishes processing parameters. Government discussions advance regarding strategic support frameworks.

Q1 2027: Updated resource estimate incorporating 2026 drilling. Preliminary economic assessment or pre-feasibility study initiated.

2027-2028: Detailed engineering and permitting for restart. Off-take agreements negotiated for concentrate sales including by-product terms.

2028-2029: Construction and commissioning. First concentrate production.

That timeline is aggressive but achievable given the brownfield nature of the project and Amaroq’s demonstrated execution capability.

The key inflection points for investors are:

1. Resource expansion results (late 2026) - confirmation that 10Mt+ is achievable

2. Government support announcements (anytime) - any form of state backing dramatically de-risks the project

3. Off-take agreements (2027-2028) - securing customers, particularly for germanium/gallium

4. Restart decision (2027-2028) - formal commitment to production

Each of these could be material catalysts for share price re-rating.

The Strategic Value Beyond Economics

There’s an element of this story that pure financial analysis doesn’t capture: strategic assets trade at premiums to economic value when geopolitical considerations dominate.

Uranium assets in stable jurisdictions command premiums because governments need secure fuel supply for nuclear power.

Rare earth projects in Western countries receive valuations far above what pure NPV calculations justify because China’s dominance creates strategic urgency.

Semiconductor manufacturing capacity in allied nations gets subsidised beyond commercial logic because chip supply is national security.

Black Angel’s germanium and gallium production - if it materialises as expected - falls into this category. It’s not just about tons times price, minus costs.

It’s about Western governments having access to materials essential for defence systems, telecommunications infrastructure, and advanced technology when China controls 98% of supply and has demonstrated willingness to restrict exports.

That strategic premium is real. It shows up in government support that reduces capital costs and improves returns. It shows up in off-take agreements with price floors that eliminate downside risk. It shows up in permitting that moves faster when governments want projects to succeed.

Amaroq is positioned to capture that strategic premium across multiple minerals - gold at Nalunaq, copper and nickel and rare earths through the Gardaq JV, and now germanium and gallium at Black Angel.

Why This Discovery Validates the Broader Thesis

A month ago, I argued that Amaroq represented one of the most compelling risk-reward setups in mining because the market was valuing it as a single-asset gold producer while ignoring the district-scale exploration upside, critical minerals optionality and strategic positioning.

The Black Angel germanium/gallium discovery validates that thesis faster than I expected.

It demonstrates that Amaroq’s technical team is thorough - they’re not just accepting historical data, but systematically re-evaluating assets to identify value that previous operators missed.

It confirms that Amaroq’s strategy of acquiring brownfield projects in Greenland creates upside beyond the obvious commodities because previous operators weren’t looking for critical minerals, didn’t have the same strategic context, and weren’t facing the same geopolitical imperatives.

It shows that the company’s relationships with governments - evidenced by Denmark’s sovereign fund participating in the June fundraise - position them to capture strategic value that purely commercial operators cannot.

And perhaps most importantly, it proves that the Greenland asset portfolio has more surprises left to deliver.

If Black Angel’s germanium and gallium weren’t identified until Amaroq conducted detailed assay work in 2025, what else might be sitting in the Nalunaq ore body, or Nanoq, or Kangerluarsuk, or the broader exploration licenses?

The methodical, technically rigorous approach to unlocking value is exactly what you want to see from management.

The Investment Case Strengthens

Let me be direct about where I see this going.

Amaroq was already undervalued.

But the Black Angel germanium/gallium discovery doesn’t just add incremental value. It fundamentally changes the company’s strategic positioning.

Amaroq is no longer just a gold producer with base metals optionality. They’re now a critical minerals developer with multiple near-term production assets in one of the world’s most strategic mining jurisdictions.

The government support thesis - which was already strong based on early-stage critical minerals exploration - just became significantly more compelling because Black Angel can deliver material into Western supply chains within 3-4 years rather than 7-10+ years.

The valuation discount to comparable producers - which was already unjustified based on Nalunaq’s high grades and low costs - looks increasingly absurd when you factor in the strategic minerals portfolio that’s now confirmed rather than speculative.

Over the next 12-18 months, I expect:

• Nalunaq production to ramp to 40,000-50,000 oz annually, generating substantial free cash flow

• Nanoq assay results to confirm district-scale potential, likely leading to a maiden resource estimate

• Black Angel resource to expand toward 10Mt+ through systematic drilling

• Government support discussions to advance, potentially resulting in announced backing for critical minerals projects

• Main Market uplisting to drive institutional buying and index inclusion

Each of these catalysts should drive material share price appreciation.

The Black Angel germanium/gallium discovery accelerates the timeline and strengthens the magnitude of potential re-rating.

Final Thoughts: Strategic Assets Don’t Stay Cheap

I’ve been investing in mining companies for long enough to recognise when a company is systematically de-risking a portfolio while the market remains fixated on near-term noise.

Amaroq delivered 5,000 ounces of gold by early October during optimisation year - production is running ahead. The Phase 2 shutdown was a strategic decision to accelerate commissioning and improve long-term economics.

Yet the market sold off because the guidance headline looked negative.

That created opportunity for anyone willing to look past quarterly production numbers to the underlying asset value being built.

The Black Angel discovery is another example of the market mispricing strategic value. Most investors will read ‘germanium and gallium by-products’ and not fully appreciate what it means in the current geopolitical environment.

But governments understand. Strategic investors understand. And over the next 12-24 months, the broader market will figure it out.

By then, the entry point won’t look like this.

Strategic assets in friendly jurisdictions, operated by capable management teams with government backing, don’t stay cheap indefinitely.

Eventually, valuation catches up to reality.