AMAROQ LTD. (AMRQ) Q2 2026 Earnings Call Transcript

Good morning, everyone, and welcome to the AMROC Q2 and H1 2026 results presentation. My name is Ed Westrop. I'm the Corporate Development and Strategy Officer for AMROC. And this morning, we'll follow the usual course. Elder will take you through the highlights for the period operationally and strategically.

And Elder will take you through the financials, and then we'll follow up with some Q&A from the line. so if you have any questions please follow the usual form uh on the webcast portal and we'll endeavor to try and answer all your questions so um without further ado let's thrust straight into it oh then hey chad um morning everybody um um thanks all for being here i can see how there are a lot of viewers on online and questions already coming in now to begin with i I just want to say how absolutely pleased we are with the result of the quarter. This has been mainly due to hard work of all of the individuals involved in terms of planning, people getting the things done. And the results are that we have done already 9,000 ounces for H1 this year, upper end of that guidance 7 to 10. We continue to have a much higher grade than we planned. in the beginning of the year, approximately 20 grand per ton. The revenue is now something to pick up, 56 million. Phase two is already in operation. And I'm pleased to be able to tell you that during all of June, when we were commissioning, that commissioning went really well. In July, we're reaching already 90% recovery. And phase one and phase two processing plant is operating literally hinkata honkata in a way that we want to see. Part of that is that you've always seen that we have a new oxide RCF on a better terms. This is a testament not only to the liquidity we have now to move other projects as well as increase the liquidity position, but it's also a testament of the financial strength of the company, which will go into in two minutes with LF. Now, we are running now the largest exploration and development program in the history of the company. We started the exploration at Illoa in June, and we finished that by drilling three different areas in Illoa, a rare earth element, a pagmatite zone, which we're very interested in, and a large rare earth play in Greenland. So all in all, we're really, really pleased with the quarter, and a lot of the work that you cannot see here on the highlights has also gone into making sure that we will deliver on our guidance this year, which we are competent on. And again, I want to thank the team and everybody else for their hard work and effort so far. Post-period highlights, we are in an active season. So the first one to mention here is the malnut drilling. And I will go into more detail on the malnut drilling in a minute. But what you're seeing here is that once we are underground and are able to utilize the underground infrastructure i mean the tunnels to drill into the deposit this drilling is now on a 20 meter spacing this has never been drilled so dense ever and out of the 27 hole we could already see a 23 on the visible gold we're getting average grade of 42.8 gram per ton which is absolutely fantastic and this drilling is to confirm when we are mining we mine on the east and we mine on the west so this is to confirm all of the eastern block which is now the double the grade we anticipated originally so our absolute high grade area this levels is from 800 to up to 860 and and constitutes about uh all of 26 and 27 into 28 of of uh resources now we have been focusing on those resources and put in the MRE file where we updated the resource statement alongside the main listing on 31st, that did not take into account any of the underground drilling this year whatsoever. So now that we're drilling every month, defining more and more the focus is to, on the one hand, increase the resources but also confirm the break. We've done more than 100 bags of flotation bags. We're already about approximately 90 percent recovery or total recovery. So I'm really pleased to be able to tell the market that this is just going like clockwork, as I mentioned earlier, and we'll be continuing operating the plant as is. Nanook and Minton, we started drilling there. Nanook is a gold area that we drilled last year. I will speak to that in more detail later on. And Minton is an IOCG, which is iron oxide copper gold, deposit high up in North Greenland, which we are now already drilling. I mentioned earlier we went on the main market on the 31st of July. This was an important milestone for the company. I want to emphasize that we have been working on the kind of how liquidity, how access to the company through the capital market is best secured. When we were on three markets, we were distributing liquidity all three markets, Canada, AIM, and Iceland. We delisted from Canada to focus to get as much liquidity on one market, which we are now focused is to be on the London market. Iceland has been, has a strong investor base, a long-term investor base, but it is a more shallower market so all of our focus is now to increase and build up liquidity on the main market in London. This was an important date for us to get on 31st of July and actually in the middle of a summer holiday here in Iceland, but this gives us the opportunity to be admitted to indexes prior to 1st of September and we will focus on not only indices in the FTSE or FTSE 250 but more importantly also in the gold junior index like DGSG where we need to uphold a certain liquidity over a period of two quarters. In addition to that, we finalized the Garavac JV Funding, that is with our funding partner GCAM, where we funded in total approximately $10 million, Canadian dollars, to fund both the Inlua and Minton drilling program. I thought I would take this opportunity here after six months to give you a little bit of insight into our strategic objectives for what we are starting to name a three-mine focus for AMOC. In fact, we have three operating mines being built. Now, each of these mines have the opportunity to grow in both resources and in production. Now, if we start with Nalanark, our focus point there is to focus on four different sections. On the geology side, our short-term focus, as I mentioned earlier, is to drill underground as close to where we are mining to establish what we call reserves. This will give us better opportunity to guide next year than the following year. And we really started this underground drilling very late last year, once we have established the infrastructure underground drilling. Underground drilling was never done in Nanlac via our predecessors, so we are doing that and we are learning a lot. We are learning structurally how the tick of the ore body keeps the high-grade pocket. And, you know, well, most of it is high-grade, as you can see. So we are seeing much more understanding there. While we're doing this in the medium and long-term target is that we are defining and building up exploration tunnels to go deeper and access more years of development or, I should say, production. meaning to be able to drill out 28 29 30 and i'll show you that in a picture in the next slide furthermore we are looking to do exploration tunnels into areas such as the target block 75 and south block and this is in anticipation to start increasing production in mountain so we need the mine to deliver on the mining end we are focused on reaching an implant capacity that is all about getting the development meters per day into a systematic approach to have the people, the equipment, the maintenance program, and so on, all in good shape. And this is progressing really well. In the medium and long term, we will then push more development meters and more throughput to be able to access new ore zones and to drill out more resources. For our investors, what is key is to grow the resources, both reserves and resources, as well as growing in production. On the plant side, the short term is to reach that nameplate capacity of 27 days or 300 ton per day. Medium and long term, so we'll call it next year, on an annual basis, we want to be producing 100,000 tons of ore through that plant. And what we've already started to do is to do studies on increasing the plant throughput to 450 ton per day and beyond. And there are two ways to do that. On the one hand is to install another mill next to the current mill as well as flotation cells. But we're also looking into what is called an optical ore sorting technology, which will allow us to source the ore that goes to the plant to only take that ore rather than any waste material or effectively bring a more high-crate ore through it, which will have the same effect. On the permitting side in Malnut, we are all permits are in place for our current operation. For the medium and long term, we are looking to build up more efficiency around the dry stack payment facility, put that in place, as well as increased throughput and so on. But overall, this has given us this kind of strategic objective you see here in front of you has given us a game plan for the next two mines, which we're going to take on. Now, here you can see the kind of key areas that we are developing, I want to draw your attention to the green bit on the slide there. You can see where you have number 792 all the way to 874. This is what we have already drilled and this is where the drilling results are coming from which we reported on the middle of July. We are currently starting to drill on the other side to the west where you see eight hand exploration drift in the start of that drilling and that will drill from the same 790 all the way to 875. This will constitute roughly for all of 26, 27 and into 28 and we will have secured that. Mind you, that area there on the east or close to where you see the number 792 to 821, this is where we have an average grade of 42 gram photon. Then you see below the mineral resources zone, that's the target block. Over time, we will start putting exploration drift underneath there and start drilling that. Now, the exploration, 810 exploration drift, as you can see, it goes directly under the area. We are mining at 800 level right now. The mountain goes all the way to 1,350. And this outgrowth we've been sampling this year all the way to the top of the mountain. These are years worth of production, as well as you have 75 in above the main vein there. So this exploration drift, every 100 meters, we are going to be able to drill. And so after we've done exploration drift for 100 meters, which we're expecting to have done before end of the year, we can then start drilling into the area in 28, 29 and 21st year.

Now, we have a new mine based on an old mine called Marmorellic.

Marmorellic, or previously known as Black Angel, is something we've been evaluating now for this whole year. And we have hired WSD, which is a world-known engineering firm, to do an updated mineral resource estimate and preliminary economic assessment on the current resource and any potential future resource for the Marmorellic area. On the geological side, we currently have already 4.4 million tons. Previous operators, they looked to develop a mine directly where the old Black Angel mine was, where you take off the hybrid pillars and you mine that for maybe two years. This would have been equivalent of maybe up to 1 million tons. However, there are 4.4 million tons. We have changed this around to focus on the whole Marmarillic area. When the glacier has been retreating, there's a lot of resources coming to surface, and we already have known resources who are drilled in six different areas and there are a lot more areas coming to surface. So the scale that is much, much, much larger. Now, the idea here is that we will do a string of, we will follow the tons we have and follow each of these resources to develop a mining activity on the 4.4 or even larger and then grow the resources in the redevelopment area of the mine. On the mining front, we are very much focused on the same mining rate that Boletan and Pack mined from the mine previously. So this was about 700,000 tons on an annual basis. We're doing Olita scanning of the old previous mine workings, people's tunnels, and we're working towards a new mineral resource estimate and PEA, preliminary economic assessment. On the processing plant, we're leveraging a previously operated plant that was on site, which produced 60% flotation concentrate, 60% zinc lead, silver, and obviously germanium and gallium. And we have previously had a metagological test work and a lot of data on the ore, which is very clean and good to ore. Effectively, this is also leveraging of what we've already done. On the permit design, we'll follow the same permit process with Nalunar. Same camp, same redevelopment of tunnels, same roads, same dry-start tailings, everything the same, which is going to work really well for us. We are really hopeful and know that this will be a very good project. This is most likely a redevelopment time of three years. But obviously, we will update the market on our update in Emory and a PEA this year. And we feel that this will be a very, very creative company. company here you can see on the marmorellic side and how it looked marmorellic camp this is where the old processing plant where the current camp is where the harbor is where all of the infrastructure already is and what they did previously was to build a cable car from this area 800 meter high up to that what you see pillar resources we don't want to do that because we've never operated the cable car so what we're going to do is that we're going to go back to our own strategy We're going to redevelop the N2 ore tunnel, which is a 9-kilometer tunnel from the Mamarillik camp to the N2 ore body. I was in this tunnel fairly recently. These tunnels are in good shape, so we'll redevelop them. We will then come to surface through a new portal and build a road for approximately 5 to 7 kilometers, going first to the arc zone, which is an ore body of 500,000 tons, Then to the glacier zone, which is 1.7 million tons. Then we will go to the area where you see the new portal. And from there, we will go to Deep Eye Zone, where you already have 7 meters over 40% zinc lead, silver, and the old Black Angel mining. So we'll turn this completely around, do something we feel very comfortable about doing, redeveloping tunnels, doing roads, and actually accessing all of the 4.4 billion tons ore per deal. What is important here, in each of these spots here, you are probably missing 10 other spots of outcrop, and we are now doing sampling of all of these different areas that are outcropping. Each of these areas, the outcrop has only been drilled, maybe down to 100 meters. Nothing has been drilled at strike where the outcrop is then extending or at that. So this is, again, another number where we start with the resource and we grow the resource while the re-development area is to increase the economic value for the company. Really interesting and exciting project that we're taking on here.

Last but not least, it's Nanok.

Nanok, you can think of that as obviously our main focus there, if we go back a second, we drilled 4.5 kilometer last year after drilling two holes a year before that. We got this unbelievable thickness of nine meters, very high grade on surface and only down to 70 meter depth. We are doing similar program this year to drill both infill and step-out drilling to hopefully declare our initial made in mineral resource. Now, once that is in place, we then can assess how we could potentially mine this to begin with. The mining will be open pit, a small open pit on surface, most likely we have to be guided by the drilling, as well as underground mining once we develop that. Now, what is important that we are already assessing how we put up a simple harbor and a road or a track towards the deposit, which is only one and a half kilometer. What that will give us is the opportunity to start shaping out what we call a bulk sample, where we don't have to process that on site, but we can actually move that to Nalanoc. Now, not all ore is amenable to any kind of a processing plant, and we don't know that yet if the Nalanoc ore will be amenable to the Nalanoc processing plant. So we are doing studies now on the outgrowth, on the ore in Nanlok, to see if the ore can be used or processed in the Nanlok plant. If it can't be, it will be a huge impact for us. Because you can imagine, we don't then have to build in the beginning a processing plant in Nanlok. We only have to set up our camp, road, and through mining equipment, which we feel very comfortable doing. I just want to remind you, it's about 70-80% of our cost in Nanlok was to build that plant. That is the biggest impact on the cost structure for a project like this. So with Nanlok, you can see how we can grow the knowledge of the research and the scale of the research by setting a road and harbour in place. It will eliminate the helicopter. It will allow us to have a camp that will extend the season, and we can potentially start generating cash flow when it's upset.

Here you can see the distances from Nanak over to Nalanak.

I want to mention what is important here is that in mining, there's nothing better than bringing material onto a sea. Trucking or handling of all trucking or trains and so on is something that is complex and expensive. So being able to bring this on sea and being so close to shore is very, very beneficial. Nalag is certainly in a different location to Nalag in terms of weather, in terms of ice and so on. But overall, and the same thing applies with Marmarolik, but overall, Suliak, our service company, which we mentioned earlier, will have the ability to give us access to any area that we want to operate in.

Sorry, I want to hand over to Elitir to run through the financial of the quarter.

Looking at the income statement, you can see the transformation in the business between years. A revenue reached 56.2 million in the first half, compared with just 3.4 million in the same period last year. Reflecting the successful ramp-up of Nalanak and sales of 8,610 ounces at an average realized gold price of 4,696 US dollars per ounce. In Q2 alone, we generated 37.3 million of revenue from 5,640 ounces sold. G&A costs increased as expected as we continue to build the organization and progress the main market listing in Q2, which carries with it some one-off costs. While exploration spend increased as the 2026 build season commenced. and that revenue growth is now translating into profitability the h1 gross profit was 34.9 million compared with a small gross loss in the prior year period while operating profit increased to 15.1 million and that income reached 13.6 million an improvement of almost 24 million compared to h1 2025.

Get the balance sheet up there, please.

Now, on the balance sheet, total assets increased from $354 million at year-end to $426 million at the end of June, which continues to be driven primarily by continued investment in Nylonac, i.e. the processing plant, mine development, and infrastructure, as well as higher inventory levels. Inventory increased to $38.8 million, including 24.4 million of metals in Detroit, reflecting higher production levels as operations continue to ramp up. The shift you see there from current assets to investment in the joint venture reflects the conversion of Amarok's receivable from Gardac into equity in Gardac, in accordance with the existing management agreement, which has since been renewed. On the liability side, the increase in loan balances reflects the expanded revolving credit facility completed in Q2 with Landspanken and Gunvor, and we've now drawn down on 57 million of the 70 million facilities. The increase in current liabilities primarily reflects deferred revenue relating to a shipment in progress at period end for which partial payments had already been received, and which was subsequently delivered and sold in full in July. And even after the investment program we've been conducting over the last 18 months, we've continued to retain a strong equity ratio, which stands at 69%, which gives us substantial financial flexibility moving forward. And Gardax cash balance as at 30th of June was quite low, as you can see, but that was recorded just prior to the recapitalization after quarter end and announced in July, which included an injection of approximately six and a half million to fund the current field season. In the first half of 2026, operating activities generated 20.4 million of cash flow compared to the first half of 2025, where operating activities consumed 13.4 million of cash. And that's a swing over 33 million and represents a significant milestone for us. The main operational cash flow adjustments relate to the buildup of inventory as production increased, offset by the deferred revenue. And even with that working capital investment, we continue to generate strong operating cash flow. And in the first half of the year, we've continued in investment mode with 44 million invested during the period, primarily in the ongoing construction and optimization of the Nulnac processing plant. Investment in mining equipment as we took over mining operations from our contractor in the beginning of this year and the completion of the flotation circuit which has been mentioned here before. Financing cash in close of 30 million, protracted expanded facility agreements and as a result from a liquidity perspective we ended the period with 28.5 million of cash and access to a further 18.5 million of undrawn facilities and together that represents approximately 47 million of available liquidity at quarter end which provides a strong pace to continue executing on operational and growth plans.

With that I'll hand back over to Edir.

Thank you, Oler. Yes, I think just to kind of give you a quick outlook of next few new steps here. As you can see, Nal and Magna is in that mode where we are delivering a lot more tonnets on a higher grade. And we continue the ramp up effectively right now because we're running on a 90 percent recovery already, which is really exciting for the company. And as you can see from how the financial have changed it in terms of liquidity and others, this is really exciting for the company and in plan where we are. On Marmarillic, we have a new approach here on an old mine, which is using the strength of Amarok, how we want to approach things. And we look forward to update you on the progress of the mineral resource estimate and the preliminary economic assessment for that project. For Kardec, we're drilling really high-impact tool iron oxide, copper, gold, because it's in Mintern. And then the rare earth pegmatites that we're drilling in Ilua have ultimately drilled and we look forward to update the market on that. These are both assets which we are going for drilling and assessment of something that could potentially be very, very large. and that's what the purpose of Gardag is for. In Suliak, we did continue to develop our asset register in Suliak. As I have mentioned, we have mining equipment, various different sorts of equipment for the organization. And in the end of June, we acquired one of few or the only iceberg available to the North Atlantic, effectively used to be owned by the Danish Navy. And we are very pleased because we've been looking at that acquisition for the past, I want to say, eight years. And this will seriously strengthen our capability in operating in various different regions in Greenland. On NAMOC, the research drilling is underway with a focus on maintenance resource, as well as setting up the company for a bulk sample, which will then hopefully become available for the NALLA plan, subject to the result from the SDS mass sample study. So there's a lot coming into the market in the next few months. We'll continue updating our production. We are on guidance. And I'm really pleased to be in a position where we are delivering quarter by quarter.

Over to you, Ed.

Thanks, Helder.

Thanks very much. Busy time. So we'll just take some questions from the line here. We've got a few questions, and I'll just run through them as they come. Can you provide some additional detail about your exploration plans that Nano can explain the potential value of this asset? And I think you've just been through the plans for it, but can you elaborate a little bit on the potential value up there for it?

Yeah, okay. So, I mean, this is us. We're obviously guided by the process we have to take in terms of mineral resource extent, And then we have to run the column through our EU-compliant quote of preliminary economic assessment and BFS and so on. But with that in mind, I'm going to try to paint the picture how we see things. What we do know is that the central zone, so in total, sorry, let me start again. In total, we have outpropping waning or structures on surface more than six kilometers. we have effectively drilled 600 of those six kilometers. Of that 600 meters, we only drilled down to 70 meters depth on an 80 to 120 meter spacing. So this year, we are drilling in between that to understand the geometry of the Orpo D. Once you understand the geometry of the Orpo D, the grade and these things, you can then are then in a position to declare resources. What is important to us is that when we're doing this drilling, this drilling is fairly expensive for us because we have to use camp and helicopter and we're doing it in a short period of time. A helicopter is maybe third of the total cost and it also has an impact on how long you can operate. So for us to be able to build a road towards that deposit it serves two purposes. It allows us to drill this deeper, further, and on a lower cost over a longer period every year. That gives you a chance to grow the resources quite extensively quicker, which will have an impact on how the market will value this in terms of resources. The market will value these ounces higher, we expect, once we can produce revenue from these resources. And so when you have an outcome of more than one and a half meter on surface for 600 meters, we can literally scrape that resource up from surface, put it into small containers, 20-foot containers, put it on our Silver Africa ship, and ship it over to Nalana and bring it over. We're doing the same thing with the CONSRATED, by the way, in Nalana. So we're used to these operational capabilities in Greenland. By doing that, then the discount on that NPV or that potential resource will be lowered, and it will do two things. It will allow us to drill it quicker, and it will also start generating additional ores towards Narlanak while we're growing this opportunity.

Next question is regards to the main market listing and share price reaction since. I'll take that. Yeah, 31st of July, confirmed the uplisting. Obviously, an interesting time to do it in the middle of most people's summer holidays, but very, very pleased to have got it done at that time. The feedback we've got from shareholders and potential future shareholders has been very positive. Share price reaction since then, we can't really comment on market reaction to that, but we clearly see it as a big potential value uplist for us and access to a much more liquid market and international investors. So very pleased to have got that done. Another question here is on grade. The grade seems exceptionally high. How confident are you that this grade is sustainable for future production at Nalunak? We have always been confident in the grade in Nalunak.

Now, when we built this mine, we did not build this on the basis of having a full PFS called Preliminary Feasibility Study. The main reason for that is that to be able to drill it and define this ore body, you need to do underground drilling and you need to do drifting, which is a high upfront cost. But we took the focus of developing this mine on the back of a preliminary economic assessment, sorry, which means that you can only use infrastructure resources. So we studied previously how much a drilling grade became when it became a developing grade and how much that developing grade became. And we saw a core factor in the previous operative mine. Wherever you were drilling, the grade usually was 60 percent higher. We're not saying that will be the case going forward, but we estimated that would have the potential to be continuously in Malina. What we are learning more now is about the whole structure, the definition of things. So we very much are competent in the grade in the short term for one and a half, two years ahead of us. And with the exploration drive that we're putting in, we will see more and more drilling, which will deliver the same confidence, hopefully, to you in the market. We are also sampling that outcrop of main vein from 800 level all the way to 1,350 level. So that is basically like a trailhole because we sampled the whole outcrop there on a meter by meter basis all the way to the top. And we got some brave Australian army personnel to do that for us this year.

We're very pleased about it. There's a couple of questions on ASIC, all in sustaining costs, and I think we'll punch them into one, Alec, which is how will you maintain or lower the ASIC and what is the current ASIC that we're running at?

And Alec.

Yes, on ASIC, it's a few factors as we mature into a steady-state operation. One of the biggest opportunities for us is to continue to reduce our reliance on contracted services During the ramp-up phase, we've utilized contractors across areas such as drilling, construction, and also certain operational activities. And over time, we expect to bring more of those in-house. And that should improve cost and control over operations. We also see benefits from greater purchasing power across the group, particularly through Zuliac, our services venture. and that would allow us to consolidate procurement and achieve better pricing on key consumables and services. And, yeah, that is mostly it. Basically, we continue to focus on owning and controlling or at least controlling critical equipment and logistics where it makes economic sense. The more control we have, the better positioned we are to control the cost. And for the first half of the year, just going by the numbers, ASIC per ounce is in and around $4,000, but in Q2, it was down to $3,300, and we should see it on kind of a full-year basis that continues to go down as the denominator increases on a fixed cost base. But for the year as a whole, using the mid-range of guidance, we should be at around 2,400 per hour.

Thanks, Alec. Next, again, I'll punch a couple of questions together. We've been asked this a couple of times. The U.S. continues to make noise about green. And have we had any interest from U.S. investors or U.S. government investors, more specifically in Amaral?

Yeah, so I think I would expect all serious mining companies in Greenland would have had dialogue or discussion with one or multiple U.S. agencies.

Any discussion about potential investment is confidential.

Thanks very much.

On that, when do we expect a maiden mineral resource?

So what we're hoping is that we will have a major mineral resource on the back of this year's drilling. And back of this year's drilling is based on, you know, we started drilling fairly recently, as we mentioned. And so once we have all the core, we need to shift the core out of NANAG. We then need to shift that core over to Ireland for independent assay results. and so the reason why i can't answer you if this is going to be october is going to be january has a lot to do with logistics and what we are trying to tell the market here and this goes back into fuliaq why fuliaq is so important and what we mentioned is that to have full control of costs and the execution in greenland we need to control the logistics and the logistic is very much dependent on equipment and may enable sure that your supply line delivers that. We are getting better and better at it and we are getting more and more control around Zuliac and we are obviously pursuing that financing around Zuliac to have that in place. As for the mineral resources, I am very confident there will be a mineral resource on nano. It is all determined on how much drilling you need to do. And we have to remember that geometry of an ore body is into the ground and is in the 3D nature, so it can take time to get there. But we are very hopeful with this infant drilling that we will have our initial maintenance resource this year.

Super. Thanks, Aldo. Again, there's a couple of similar questions here which I'll pull together on costs and variability of costs. previously we said that we had diesel up to the mid-summer what are we seeing as the most sort of variable in our cost base at the moment and has it been impacted by any of the geopolitics or inflationary pressures we've seen no i mean diesel prices have been marginally higher than we budgeted for the year, whereas usage has been lower, so we are actually trending according to plan on diesel costs, so as of yet, it has not affected us. I got it. So an operational one here, and again, there's two very similar ones which I'll ask together, which is when will you start constructing a second ball mill, and what will this take production to? And can you also talk about the technology around optical ore sorting and the cost of that?

Yeah, so there are certain things that are pre... But when we go into the investment decision of increasing the plant throughput, we need to know that there will be ore that is available to get to that 450 ton per day. So the mine needs to be ahead of the processing. Now, it's also a fact that it takes time to design and acquire a ball mill with lead pens, et cetera, et cetera. So when the investment decision is being taken on this, what we have to see is we need to have a clear idea that either NAMLAC has in the short term the potential to grow the resource production, production, sorry, the production flow, that is more than one mining front, so more than only mounting blocks, so it would have to be 75 in or target block, as an example. Or we could then be looking towards getting nano ore available in NALNUX. So that controls that decision. Now, the decision on the actual ore sorting or the mill, when we designed the plant, we had space within the building to put the second 150-ton mill. And then we also have space in the building to have a flotation cell. If we were to bring in optical ore sorting, it would be a lower cost option. But what we have now done is that we shipped out ore to a company who does optical ore sorting to test our ore to see if it's amenable. So there is an opportunity to do ore sorting. it's an opportunity to increase the throughput with a plant by adding the mill or potentially both in addition to this it's important also we have dry stack tailing facilities because we cannot fill the mine forever with tailing and that is a process that we built into our MIMFL impact assessment and are now starting a permitting process work to set up next to the plant that time Thanks, Elliot.

There's a quick question here on the single mine origin status of Nalanak and when it will be sold outside of Greenland. So at the moment, just for everyone's background, we're able to sell our gold through the single mine origin certification portal to retail. At the moment, it's only for Greenland, as that's part of our agreement with the Greenland government. We're currently discussing with them when we can then open it up to the rest of the world. And we're hoping to have some more news on that before the end of the year so that it can then go on general sale. It's all set up to do it on a platform with pricing, et cetera, already in place. So in terms of facility, it's there. We just need to get confirmation of the Greenland government. We can sell it outside of Greenland. Next question is on, I'll read it out to you. Please, can you confirm current mining or processing rates? Are you at 300 tonne per day level? And for H2, what are you expecting in terms of grade and mining processing rates, given the higher grades you've had in H1? Is there a trade-off between mining rates and grade? Yeah, so stop on the first question.

Yes, when we operate the plant, we operate it on a 300 tonne per day. So what we do is we estimate a certain amount of day per month up until Q4. And we've already reached the highest throughput. So think of it, you run it on a 300-thrump a day for, I'm going to say, for 23 days a month. Or to be in a full run rate, you would do it for 27 days a month. We don't run the plant on 240 because it's not an optimal throughput. So we are running it at a 300-thrump a day when we run the plant. Okay, and that throughput is increasing every month, and the throughput was really, really good for July, for example. And the plant is just operating brilliantly at the moment, as per the site. You're right on the grade and throughput. So as an example, you will be able to see in H1 that we were running the same amount of tons in Q1 and Q2. and there are several reasons for that one reason the first one is that during may we decide to stop our war ahead of running the flotation concentration in june this is number one so we didn't have to re-handle as much ore in and out of the mind and we could do this because we were experiencing much higher grade, so we would reach our ounces target for sure. Secondly, on your throughput, for example, when we developed the sills, we've been doing double clustering in the sills. That means you first blast the waste and then you blast the ore. That slows you in production because you have to do two blasts, but you get more higher grade salt by doing that. And in an area where we are to the east, in this high-grade area of 40, 50, 60-gram per ton, we have now started to do a single blast because, A, we don't lose any grade in that process, and, B, we can actually still get such a high grade through the plant that it makes more sense for us. So that may become a typical example of trade-off between mining grades and grades.

Thanks, Ola. A quick one here. Black Angel, West Greenland Hub, and now Marmarillic. Is that a bit confusing for investors? Possibly.

Fair enough. But I think what we have to think of is the following. In South Greenland, we run a South Greenland hub. What we mean by that is that we leverage off the operation in Nalanut, which is a producing operation. And I say this with great disrespect to any other operator in Greenland. If you don't have an operating facility, it means you don't have a warehouse, you don't have an equipment shop, you don't have any of the things you need to have to be able to understand how to build things in Greenland. So that's our South Greenland turf. Around Black Angel, which is our next producing mine, we have West Greenland turf. Okay, so why are we changing the name from Black Angel to Marmorellic? First and foremost, we are not only mining Black Angel, we are mining the whole Marmorellic area. Marmarillic means Marple. This is a big Marple area in the area. It also goes into explaining to people that we are building a Greenlandic legacy and therefore our minds are going to be in Greenlandic names from Nalonak, Marmarillic, and Nalok.

Thanks, Alder.

That's clear.

Hello, one for you here. Has Manishan considered to capitalise exploration and evaluation expenses instead of expensing them in the period they occur?

Yeah, that's a good question, and we've considered and continue to consider that for sure. We regularly review the appropriate accounting treatment of these expenditures and obviously assess it against the accounting standards and alongside our auditor. There's no change in our current approach at this time, but it remains under ongoing review as our assets progress, especially more mature exploration and development projects such as Nanoc and Marmarilic.

Thanks. Again, I'm going to pull two or three questions into one here on Nanoc. The metallurgical testing that SJS is doing, one, can you explain a little bit about what that exactly is? And two, in your best estimate, what do you think the risks are of it not being able to be processed at Nanoc?

So what it is, effectively, we take a fairly large part, for example, from the outcrop in Manok, and we run it through a pilot plant or a very small pilot plant in these SJS facilities where we separate the gold from the material that the gold sits within. And by separating it, we see what equipment will work for it and how amenable the equipment in Manok would theoretically work for it. I don't want to give a percentage. We'll have to wait for that. But I think those results will be imminently coming up to the market.

Thanks, Arthur. The next question is from David Cragen. To those investors who participated in the last equity raise, Amarok's share price, whilst it's up 26%, has lagged physical gold, which is up 29%, but underperformed the Gold Explorer's ETF. Jeff, how committed are you to ensuring that shareholders from the last fundraise in June 25 get their due return before any subsequent equity raise occurs to fund future developments? It's a very good question.

I think a lot of these things, and management here is equally frustrated with the performance. There are various bits and pieces that have impacted this. On the one hand, since the last equity raise we did, we've had a very difficult market here in Iceland. The market here in Iceland is small. It means that the impact of other companies impacted us, and we have not been in line with that. And we can see that directly from the selling pressure we were experiencing in the company for the past year, and especially since June, from the mutual fund here in Iceland. Now, the market here in Iceland is important to us. It has been very supportive. It has long-term investors who will continue to be here. But these are the things that have an impact. Second thing that has been a big issue for us is to be listed on three markets. So we got some criticism for delisting from Canada. Short-term kind of thinking was that, you know, this could have an impact on us around the time when there was interest from the U.S. But that was not the case. It was an incorrect statement because the reason why we're not following the junior gold producers or TGS is because our liquidity was distributed over three markets. And we need one market to ideally have a liquidity over a certain amount to actually be eligible for the indices that follow these markets. Now, we then have focused on being on the main markets. There has been an issue only being on the A-Market in London. It has hindrances for, for example, US investors to participate in London. There is an issue on the market-making mechanism in the A-Market that has an impact on their willingness to invest in the market. So overall, the plumbing of the company and how we set up the company, we have a very good free flow. There is no single large shareholder. most of the 90% of the shareholder group is long only. And so therefore, being on the main market with more than 80, I think 80% of the investors on the main market in methods in London are international investors. And being indexed is important for funds such as Danish pension funds and authentic pension funds and so on. So all of these things that we've been doing has been to actually give us the opportunity to, A, follow the market better. Now, the management focus is to deliver cost by cost, and we've been doing that now continuously now ever since this time last year. We were very pleased with the purpose of our and so the hope is with the right call it plumbing, as well as us delivering cost by cost, we will be able to deliver a lot more value. As for, because the question entails an equity risk, and I get this question over and over again. We will deliver value by delivering what we can control. We have available opportunity to go not only to equity market, but also to other markets, such as bond markets and so on, to develop other projects within our portfolio, as well as we have cash flow from our current activities. Saying that, We will always reserve the right to the user equity market either to fast track our progress or to bring the right set of investors to the company. But we have no intention to do so at the current level of the company.

Thanks, Adam. Just a couple more questions. One, how big is the germanium and gallium resource and opportunity?

And how are we going to commercialize it?

It is a big source of revenue. So the first thing I want to say is that with the zinc-lead silver concentrate, they have been, over a period of time, as we understand it, mostly controlled by what the smelters are willing to accept. Luckily for the marmorellic ore, it is a very clean ore, which is known to both European smelters as well as North American smelters since it was previously operated. Germanium and gallium was something that the smelters would commercialize themselves and was not part of payability previously. There is a change in the industry right now where miners have much more control of what they want to get out of each of these revenue streams, and we will be leveraging as much as possible on that. Germanium and gallium are a fair bit of part of the revenue, even though the main revenue streams are sink, lead, and sink and lead. And we will do our utmost to get that revenue stream directed to the company in as much quantity as we can.

Thanks, Elder. I think it's worth just reiterating, you know, the initial assays from the stockpiles gave quite a high level for germanium gallium, with germanium at over 120 parts per million and similar for gallium, which are quite high. We will be doing further assaying and testing at Marmarillic this year, as Zelda alluded to. So we should get a little bit more data around the Germanium going forward. But from what we see at the moment from the stockpiles and from what we've assayed, there's very good grade there, as you'd expect from Greenland. Okay, last question. Can you tell us something on how you're going to use the icebreaker? Is it going to be mainly for Amarok? Are you going to use the third parties? or how are you going to use it, Pramod?

Yeah, so the intention with Azulia as a service company, currently we own it 100%. The intention is to bring third-party investors to be able to service all mining operators in Greenland. The biggest challenge this year for exploration in Greenland has been availability equipment. We knew this would be coming. And we said this to the market over and over again. And that is because in the past year, maybe two, Up to a billion dollars has been raised for mining projects and oil and gas projects in Greenland. So any helicopter availability, people on the helicopter, logistics of goods and so on, is now very restricted. Luckily, we saw this coming. So we've had a lease on a supply ship. We have a lease. We've acquired the iceberg. But to give you an example, Minton, our project there, we were four weeks behind schedule. We're drilling now and we're pleased to be there. But on the one hand, it was not to do with weather alone. It had to do with when we could procure things and when we could be making sure it would be in Greenland. It had to do with the fact that when we were bringing the helicopter up from Greenland and Selmuk all the way up to North Greenland, we needed maintenance personnel, there were weather delays, et cetera, et cetera. If we would have an icebreaker this year, we would have sailed with the helicopter and artillery all the way to the asset. We would have controlled completely the timeline, that is, and reduced the cost of the program and executed more during the program. On top of that, when we will be operating Nalunak, having an icebreaker that can go in and out gives security and operational security for our operation, as well as we experience in Nalunak every year, pack-eye season, where we have difficulties bringing in goods and services to and from. So this is an essential feature for exploration and from a risk mitigation. We are in discussion with governmental agency of using the ship for other purposes than mining, as well as other mining operators in Greenland as well.

Thanks, Elder and Elliot. And thank you all for listening. That concludes our webcast this morning. um if you have any further questions or we need more detail please don't hesitate to drop me a line and uh and i can see if i can get back to you on there so uh thanks very much for listening and have a good day. Thank you.