Q4 2025 Amaroq Ltd Earnings Call

Speaker #1: For joining us. we're going to do a slightly different format to usual. There's no conference call line, so all questions will be written in via the webcast service, so please, if you have any questions, add those in, and we'll deal with those at the end of the call.

Speaker #1: we'll follow the normal form today. Elder Olafsson, the Chief Executive, will take you through the summary, of the year and some, strategic areas, Ellert Arnarson will take you through some of the financials, and I'll finish off and host the Q&A at the end.

Speaker #1: So thanks very much for joining. Welcome. Elder, hand over to you.

Speaker #2: Thank you. good morning, everybody. it's good to be with you here today. I want to turn your attention to the first slide. I want to start this, meeting here just to kind of set the scene a little bit where Amaroq is, at the moment.

Speaker #2: Now, we have an operating mine where, where we've guided 25 to 35 thousand ounces for 2026, a full year, first full year of, of, of production for our, our, our Malmö mine.

Speaker #2: we have the West Greenland hub, which is our next development project, which we are, focused on, putting together feasibility study, and, and some research development this year, to start development of that mine in 2027, 2028.

Speaker #2: And then we have the NanoCoal project, which we are actively pursuing to bring into resources. Now, in Garlak, we are drilling two, early-stage projects, but very impactful projects, both in rare earth element and iron ore.

Speaker #2: And then the two enablers to allow us to do all of this, is Suliak and IMEC. Suliak seeing service venture that we've set up, and we've just announced this morning about, cooperation with, IFO and other Greenlantic funds on that.

Speaker #2: This will help our working capital. It will help other mining companies and infrastructure companies in Greenland working capital. And then IMEC, where, where we have finalized our feasibility study to start producing green energy.

Speaker #2: or at the side, which will, decrease our uses of diesel by, 1.6 million liters, which will lower our operating costs and, and give more stability.

Speaker #2: Now, at a glance, you can see we are one of the largest license holders, very prospective licenses. We are we have developed the mine now in Greenland.

Speaker #2: we are operating a mine, we are a-actively pursuing exploration, we have, large resource, scale, both in Black Angel and in Nalluna. And effectively, we have multiple company makers, within Amaroq, assistance, and we intend to use the experience from the great team that we built up today to develop these other opportunities as fast as possible.

Speaker #2: Now, taking you over to the next slide, so this is how we do it. This is effectively you can look at this as a, a 5 to 7-year plan within Amaroq.

Speaker #2: Now, what you see here on the right is the Nalluna Phase One operating, which is now in, in, in full-scale production, where we are producing through gravity recovery, making a Dora bar, on-site every month now, generating good cash flow.

Speaker #2: Phase Two, we will have in, in which is the flotation recovery. That means that we are taking moving recovery of the gold from each town from 65 all the way up above 90% recovery Phase Two is progressing on plan, on schedule.

Speaker #2: We will have that, operating, by June. And, Phase Three is what we are analyzing now is to, grow the potential production in Nalluna from 300 tonnes per day, to 450 tonnes per day.

Speaker #2: So that is still being, assessed. but we've designed that. So this is where the production is going, where the free cash flow is, providing the group.

Speaker #2: Now, Black Angel has a previous feasibility study that we are updating. it was a mine. We know the operating procedure. We're doing the same thing again, similar kind of a scale in terms of investment and in terms of timing.

Speaker #2: From a very high-yielding asset. And then we're moving up the w-which we call the elephant in Nalluna, Kanka, Pin Miniature, Iloa, up the, value curve by drilling them and defining them.

Speaker #2: So, so we, we can see that th-there's a huge value potential that we are building up within, i-in Amaroq. Now, if we turn we'll focus on the next slide.

Speaker #2: So y-year to date, the production was, above 6,000 ounces, last year. we got our initial revenues. we went through, various different aspects of selling and moving the gold out, selling it.

Speaker #2: we got an average gold price of about 6,000 3,000 and, and, and 600, dollar, per ounce. we transitioned our mining operation from an owner-operating, from, from a kind of a contractor to an owner-operating, operation.

Speaker #2: This means that on-site, our biggest cost on-site is, is effectively people. We now control all of our mining equipment, our own people. This has given us more efficiency, more control, and, and lower cost in the end.

Speaker #2: And this is this has been very, very, successful pro-process so far. we acquired the West Greenland hub, in May last year. This sets us up.

Speaker #2: So as you can see, now we're operating and generating cash flow from Nalluna. We have a full development team that is now moving towards the West Greenland hub to bring that mine into into production.

Speaker #2: And while we have been doing that, we've been had very successful exploration program, in, in, other assets. And, and, and mainly Nalluna, that was what we drilled about 5,000 meters last year.

Speaker #2: And, and I just want to put this into perspective, to the market that Nalluna was, we drilled about 27 holes, more than 63% of the holes that we drilled, were success hit, gold mineralization to, to put this into perspective.

Speaker #2: In Nalluna, one out of eight holes gave us, great. In, in this instance, we were getting more than 63% of the holes. We're getting thick intersection all the way from one and a half meter up to nine meters with really, really high grade.

Speaker #2: So now our intention this year is that we are starting the infill drilling of this area, focusing on creating a mating resource. And then, multiplying the scale of drilling to declare, hopefully, what we think could be, a resource and a and a and a scalable kind of potential world-class, resources.

Speaker #2: So last year, we obviously finished, getting to a 300 tonnes per day. We finalized our Phase One, activities in terms of construction. So the last quarter of last year was very construction-heavy, which was a, a great result for us because it gave us the opportunity to produce really well during this first quarter, and, and, and, and finalize Phase Two, during this quarter and next quarter.

Speaker #2: I'm gonna turn now over to Ellert to walk you a little bit through our, our finances, before we, we, we go again on, on, on, on giving you a bit of an outlook for this year.

Speaker #3: Thanks, Ellert. Thank you for we had sales of 1,949 ounces, for gross proceeds of 10.7 million, Canadian dollars. and, the average prices we were able to sell at, was 3,920 US per ounce.

Speaker #3: in comparison, gross revenue in Q3 was slightly higher at 12.8 million. and it, it, it was lower in Q4 due to the planned shutdown for, for commissioning activities that took place in the in the quarter.

Speaker #3: and as Ellert mentioned, for the year as a whole, we recorded revenues of 27 million, from the sale of 5,310 ounces. Expiration and devaluation, expenses were 4.6 million in the quarter, most of it was incurred at the Nalluna campaign.

Speaker #3: Where we, drilled roughly 5,000 meters this year with, with good results, as mentioned. And, after incorporating other income and expenses, the company recorded in at loss of 3.2 million for the period.

Speaker #3: And moving on, please. On the balance sheet side, cash balance at year-end, it's at 21.5 million. Compared to '55, at the end of September.

Speaker #3: And this is mainly driven by continued CapEx, which was quite heavy in the quarter, at Nalluna. Mainly processing plant construction, as well as starting up of spares and consumables.

Speaker #3: In relation to finalizing, commissioning of Phase One, and also driven by investments in a new mining fleet, alongside, taking over mining operations in Q4.

Speaker #3: We continue to see an increase in metals inventory, which stands at 15.8 million at quarter-end, compared to 11 million at the end of Q3.

Speaker #3: This represents our gold contained in our stockpiles, gold in circuit in the in the processing plant, and, as well as gold-bearing tailings, which we will be, bringing back to the processing plant once Phase Two is operational, in Q2.

Speaker #3: so that puts us at, total current assets of 67 million at year-end. and on the non-current assets, the main movement here, consistent with prior periods, is a 30 million dollar increase in capital assets, to 252.7 million at, year-end.

Speaker #3: again, driven by the Nalluna project and, and the 300 tonnes per day processing plant. On the liability side, accounts payable stay roughly the same between quarters at around 20 million.

Speaker #3: the main, change here between current and non-current liabilities is the amendment to our RCF facilities. We announced in Q4, where we extended, the facilities to, February 2028.

Speaker #3: So that takes them from, current liabilities to, to non-current liabilities. So total liabilities at 74.4 million at year-end, which results in an equity ratio of 79%.

Speaker #3: And on the bottom there, you will see, cash balance at, at Kardak, our joint venture, at 2.6 million, with, with not, not very much activity in, in Q4.

Speaker #3: so moving on to cash flow. so we, we recorded a net loss of 18.6 million for the year. after adjusting for non-cash items, cash flow used in operating activities, negative 30 million, roughly.

Speaker #3: And cash flow used for investing activities at 84 million, roughly, which represents the CapEx at our Nalluna project predominantly. and against that, we had positive cash flow from financing activities of 90 million, which is, mostly due to, an equity raise that was closed in June of last year, of 80, million, roughly.

Speaker #3: And a drawdown on our facilities of, of about 10 million. So all in all, this results in a reduction of, of, cash of 23 million, throughout the year, 23.6, and, and our cash balance was sitting at 21.5 million at year-end.

Speaker #3: And, in excess of that, we had on-drawn credit facilities of 8.9 million, at year-end. the table on the bottom, is, where we show the main cash flow movements in relation to the Nalluna project in and of itself.

Speaker #3: now that that is, is closing completion. Closing to completion, we had a total of about, yeah, 25, roughly, outflow of, of cash due to additions to capital assets.

Speaker #3: And then we had, as previously stated, we were stocking up on supplies and consumables in relation to the commissioning of Phase One. And, increasing our metals inventory as well.

Speaker #3: I think that's it on this one. Thank you, Ed. Back to you, Elder.

Speaker #2: Thank you. Now, as you and kind of, turning our attention to, to 2026, and, and, and, and walking you through a little bit what, what, you know, really, really exciting year we have ahead of us.

Speaker #2: if we look at, you know, our, guidance for 2026, so this will be our first full year, of operating, the Nalluna mine. and our guidance is 25 to 35 thousand ounces.

Speaker #2: Now, using, using the current, gold prices, today is we are, we are looking at then a cash flow of anywhere between, 112 to 160 million US dollar, within this year.

Speaker #2: And if we then look at the cost for the overall year, that sits, if you take into account all interest-staying costs for Nalluna investments in Nalluna, as well as, the base case of, exploration outside of Nalluna, of a total of 100 million dollars.

Speaker #2: So the free cash flow generation will be, or is targeting on these kind of a gold prices to be very, very good. Now, to give us ample liquidity throughout the year, and to even fast-track some of our programs because we have the potential to grow our exploration, budget and, and develop faster, this year, this means that we're effectively doing more this year.

Speaker #2: We have announced this morning that we have increased the, the, the loan facility we have by another 35 million, taking it from 35 to 70 million, doubling it.

Speaker #2: And, and, and, and lowering the interest rate, at the same time. and so this shows really the development of where we are going from, you know, more of a, development or exploration company to a more of a cash flow-generating business, which is great.

Speaker #2: See, to help further on the enabling our strategy of developing faster, creating value-quicker, we have now come to, an understanding with, one of our largest investors, IFO, to support us in the venture of setting up Suliac, which is, the servicing venture we have in Greenland.

Speaker #2: Now, to give you an idea of why this is important, not only for our company but for all mining and, and infrastructure company in Greenland, working capital, in Greenland is of importance.

Speaker #2: You, you need to buy equipment, drill rigs, maritime equipment, and mining equipment upfront. And, and that obviously binds a lot of capital. So having a servicing venture in Greenland will help, us and, and a lot of other opportunities in Greenland.

Speaker #2: And it will be a very good business because this is a very growing market. So we're extremely pleased with that, not only for this, but, but also years to come.

Speaker #2: and this will allow a lot more equipment availability in a country like Greenland, as well as consumables and others. So, so we're extremely pleased with that.

Speaker #2: and underpinning all of that, we have announced to the market in this quarter that we are, going on the main market in London this year.

Speaker #2: And we have pointed city, group to, to, to, to assist us in that progress. all we can say right now is that, the work is progressing really well.

Speaker #2: And we are getting a lot of very good feedback from, from the market there. We have subsequently delisted from the, Toronto Stock Exchange, the focus here is a little bit of plumbing of the business, so to say, in the way that we want more and more liquidity, to remain within fewer markets, to help with indexing and various other, liquidity, for the company as it, as an whole.

Speaker #2: But overall, our, our, you know, we couldn't be more excited about, the strategy going forward. We have extremely strong team, both on the ground and operation development exploration, for standardizing everything within the business.

Speaker #2: And, and this will be a transformational year for the business, as we see it. Over to you, Ed.

Speaker #3: Thanks, Elder. I just thought we might dive, a little bit into that exploration program. It is the busiest we've done to date. and it's across the whole portfolio.

Speaker #3: And it's, it's the first time we've been so polymetallic in our, exploration campaign. clearly focusing on the Nalluna mines, to begin with. we're gonna continue to underground, underground exploration.

Speaker #3: we're looking at, if you take our current MRE, we're at 400, about 185,000 ounces. which gives us a-around a 10-year mine life. The idea is we're gonna replace resource each year through underground exploration to try and tap into some of that, over 2 million ounce exploration target that we've got.

Speaker #3: so th-that'll be the strategy going forward at Nalluna. And, and, and we'll continue to talk about it in that way and give detail on the, on the results of that this year.

Speaker #3: But we're, we're extremely, excited about the opportunity there. None of the, Nannock, which, Elder has, has talked about briefly there, is, is a incredibly exciting opportunity for us, given the results we got from last year.

Speaker #3: We're gonna continue drilling this year on that. We've already winterized the rigs. They're at size already. There's infrastructure there in place. So as soon as, as soon as the exploration season starts, we'll be there drilling, looking to target a major mineral resource estimate, as Elder highlighted earlier.

Speaker #3: So, you know, again, look out for that this year. That'll be, that-that's a very exciting, next gold project for us. and then around that, you've got the satellite gold.

Speaker #3: We'll continue to define targets there. We-we'll continue to do some geophysical work on those. as we look to, de-risk that whole gold, the Nautilus gold belt that we talked about down in the south there.

Speaker #3: outside of that, we've got our critical minerals asset base. Black Angel, we've talked about. Clearly, after the acquisition last year and the completion of it, there's been a lot of work on the technical data.

Speaker #3: James and Will and the team and the geos, his geological team have been doing quite a lot of work on the data set that they've now received with our post-completion.

Speaker #3: And they're quite excited about that. and clearly, s-since the, successful reassay of the stockpiles, there's also really interesting, internal discussions going on around the commercialization of the, germanium and the gallium that we have there.

Speaker #3: which, is quite a, a topic at the moment, generally, in the world. outside of that, and within our Gold Act JV, the midterm, IOCG and iron ore prospect in the far north.

Speaker #3: we had some really interesting and successful, surface work done on that with indicating to very high-grade magnetite iron ore. This year, it's gonna be all about, doing some scout drilling on that to see the depth and, and volumetrics of that.

Speaker #3: and that, th-this asset is right in the far north, right up just, quite near Canada, actually, in a, in an area that we it seems to be an Arctic desert, very flat.

Speaker #3: So, we're looking at all the logistics of that at the moment as well. down in the south, again, we've got the Illira rare earth, element, exploration campaign.

Speaker #3: Again, scout drilling on that posts some really interesting, surface work that we did last year. and this is a pegmatite rare earth, so a sort of conventional rare earth.

Speaker #3: and again, it's gonna be w-working out the volumetrics of that through scout drilling, which will give us the opportunity then potentially to do some resource drilling on that thereafter.

Speaker #3: And Thendalen, we still haven't, that's still very much in the portfolio. still looking to target a high-grade copper and nickel there. we'll be doing some further geophysical work on that.

Speaker #3: So we just wanted to lay out some of the exploration catalysts this year, which we're very excited about. the last slide is, is a sort of nice to have, really.

Speaker #3: This is just some photos showing you the, the work to date on phase two progress with at Nalluna. Clearly, you can see along the civil works that are already completed and a lot of the equipment's now being installed in there, as you can see.

Speaker #3: So, really just to highlight that, things are on track, very much on schedule. and a lot of work is going on there at the moment, which is, which is great to see.

Speaker #3: And certainly, having gone through the m you know, the, the winter season so far to date, we're really pleased with the progress there.

Speaker #2: Absolutely.

Speaker #3: So I think, we'll wrap up there. what we're gonna do is we'll take some questions from the line. and I'll just give us, I'll just give us a couple of seconds for people, if they want to just, take a minute to, to, type in some of those questions there.

Speaker #3: And I'll, I'll crack on and start asking them, in the meantime. So first question. Can you please discuss the timeline to profitability and any potential significant investments from government agencies?

Speaker #4: Yeah. So I mean, I mean, profitability is something we see within this year from our, from our absolute free cash flow. and, and we're in a positive EBITDA territory already this year.

Speaker #4: So that, that is very good. And as we mentioned earlier, in relation to, I mean, I, I reiterate here, in the current gold prices, you know, the range from 25,000 ounces to 35,000 ounces, it ranges from 112 million to up to 160 million dollars in cash flow.

Speaker #4: Now, that is on a 4,500-dollar gold price. All of the capital investment within the group, both in terms of all-in cost of Nalluna, further investments in Nalluna, as well as all exploration, expenditures within all of the group, we're still well above the free cash flow there, for this year.

Speaker #4: And in addition to that, we have the new, long facility, to give us even more wiggle room, i-if we intend to do more this year.

Speaker #4: So that, that, that puts it in a very good position. Now, on what we said on various different agencies being, Denmark, European Union, and/or, US agency, we maintain a good dialogue with all of these different agencies.

Speaker #4: with, all of these agencies now for four or five years. And we will continue to do so going forward.

Speaker #3: Thanks, Elder. next one. does the potential RCF upsize and equity, injection to CDAC mean you can now spend more than the minimum on exploration in 2026?

Speaker #4: yes, it does. however, we also need to take into account operational efficiencies, meaning we need to make sure we have the people and the rigs and, and all of that a-as the mid.

Speaker #4: Now, the good thing about our program is that most of the programs start around mid-summer, June, July. when a lot of our, w our cash flow this year, as we've, said in, in, in our release, in the first half of the year, we're looking at 7 to 10 thousand ounces.

Speaker #4: And in the second half of the year, we are, we are, looking to produce more because then we're getting the flotation. Now, that helps us, assessing how much we wanna spend and how much we wanna do.

Speaker #4: But we need to make sure we can secure the rigs and secure all of the people to be able to do the work. So that is also an element there that we need to look into.

Speaker #3: Yeah. Nice. question around CDAC. Do you already have potential clients or customers contacting you for these services? Or do you, and do you currently have leases out for the equipment to other companies?

Speaker #4: Currently, we don't have leases out to other, companies. But we, have been contacted by various different parties. I mean, the whole idea behind CDAC being CDAC is servicing Amaroq, it can be servicing various different projects within Amaroq, who we either own 100% or partly.

Speaker #4: And the idea here is that we need to have an arm's length agreement with Amaroq, so meaning we will offer the same terms to anyone operating Greenland.

Speaker #4: So it's a cost-plus model. And therefore, we've already had three inbounds, to us, and, and, and, and, and more, actually. And, and, you know, you there, there are 33 companies in mining in Greenland.

Speaker #4: But mining is one thing. There's also a lot of infrastructure. There is hydro projects. There are, s governmental services. there's defense projects. So, so th-th-there is a, a lot of interest here to set something up.

Speaker #4: And, and, and I, I, I do wanna emphasize the fact that this company comes as a servicing opportunity aside with all of the great Greenlandic servicing companies.

Speaker #4: Who lack often the equipment but have the people. So there is a win-win scenario here for, for all parties involved.

Speaker #3: Thanks, Elder. can, Eller, this is probably one for you. Can you just confirm the 2026 cash flow numbers? Were they in Canadian dollars or US dollars?

Speaker #4: Yeah. I think that's in relation to, to, Elder's comments earlier. And, and that would have been in US.

Speaker #3: Yeah.

Speaker #4: Yeah. In line with, with the, with the guidance that we gave out. yeah.

Speaker #3: When do you expect to move to the main market, when will that be completed? And what are the costs involved? Do you want me to take that down?

Speaker #3: So we are, as Elder suggested, we are, we're right in the midst of that process at the moment. we're looking to get those drafted as expected in, there's a CPR being drafted in the background as well.

Speaker #3: So there's two windows. Normally, the Ju end of June window and then the, the, the autumn window. W-we're, we're working towards the first window, if we can.

Speaker #3: But if, if, if we're not, then it'll be in September. But currently, our expectation is we're trying to do it by the end of June.

Speaker #3: and one of the reasons we're coming to the main market is because dropping, listing in Canada, etc., is to drop costs. So, whilst I'm not gonna give you the exact cost of the process, the point of it is to drop costs in the first place.

Speaker #3: so thanks for that. would it be possible for Elder, to comment on data points you looked at coming in from, would it be possible for Elder to comment on the data points you looked at that are coming in from Nalluna, which gives him comfort on the 2026 gold target?

Speaker #4: Yeah. No, I can. certainly. I think, I think the data points you wanna be looking for there, is the following. I mean, we are estimating not a full production this year, meaning in terms of tonnage.

Speaker #4: So we, we are estimating about 75% of tonnage of the total production, to just to give us, to be kind of on the cost side.

Speaker #4: Now, what then controls the, the what the ounces will come out is the grade. And it's the recovery. And I can say without going into details here because we will ask it in the Q1, is that both the grade and the recovery are very good in this first quarter we are seeing them.

Speaker #4: And so we are confident on that. And furthermore from the drilling underground drilling, the resource drilling we are doing and resource conversion drilling, we're also, seeing, the grade as well as what we call a call factor.

Speaker #4: That means what the mining model is telling us and what then actually comes out of the grade. These are all positive indicators so far.

Speaker #4: And therefore, yes, th-these are all, all, all, all very, positive for us. And, and, and therefore, we are very confident for, for, for this, guidance.

Speaker #3: j a question just on, on diesel, and energy costs. Obviously, lower impact from leaving less diesel, which is great. But can you talk a bit about the sensitivity forecast to the diesel price?

Speaker #4: Yeah. C-certainly. I mean, our to, to give you a little bit of kind of idea of cost, base, I mean, about 50, 60 percent of our cost base is actually people or something related to people.

Speaker #4: Then we have travel and we have, consumables and so on. So actually, the energy cost, in, Nalluna for the year, we're estimating about 8 million, which is only about 8% of our total cost in that whole sustaining cost number.

Speaker #4: So, so we don't see a massive impact there. What, what is also important, we've purchased all of our diesel or energy up until mid-summer.

Speaker #4: So, so, so we are quite well protected from there. and there is another angle here as well. Greenland, due to the fact that they are very much dependent on diesel for the heating of their towns and operator, they purchase much of their diesel and they fix the prices usually for two years in a time.

Speaker #4: That can be negative, you know, because sometimes the prices are higher than the market. But it can also be positive because then, you know, you're, you're operating on a diesel price, that is, you know, doesn't have the impact of something that is happening in the Middle East at the moment.

Speaker #4: But very much this energy cost is not the big item in our cost, category. Effectively, we have diesel now up until mid-year. And thirdly, the Greenlandic government, purch or, or polar oil has purchased, a fair bit of diesel for the next two years for, for the country.

Speaker #3: Thanks, Elder. Eller, maybe one for you. Are we looking at putting a hedge in with gold prices high at the moment?

Speaker #4: So we haven't hedged, gold prices at all, up to this point. and we are looking into whether we can opportunistically hedge a part of our costs, capitalized costs this year.

Speaker #4: other than that, we'll continue we'll, we'll be opportunistic. We, we're not too precious with, with kind of 100% no hedging at all. But we haven't done done so, so far.

Speaker #4: if you were to do it this year, it would be to cover, the rest of the CapEx.

Speaker #3: Yeah. And a-as a-as an example, I mean, we, pre-sold, 1,500 ounces, a couple of weeks ago on a $5,000, per ounce. So there are opportunities like that.

Speaker #3: I don't wanna, say we are very good at predicting the prices here. But, but it's, there are opportunities to cover your capital costs for sure.

Speaker #3: Thanks. Thanks, Ed. working capital outflows. The working capital outflows were consistent through 2025. How do you see them flowing this year?

Speaker #4: Yes. It so it will be different this year. so for the first six months, we'll continue our CapEx and construction of the, processing plant facilities.

Speaker #4: But that should recede quite quickly, post Q2. And the non-sustaining CapEx that we've guided on will be front-heavy. but then once the, the, flotation recoveries kick in and the CapEx recedes for the second half of the year, working capital will, will become, quite benign.

Speaker #4: And, we should see that reflected in the cash balance in, in, in, especially in H2.

Speaker #3: Super. Thanks. I think the next one is around CapEx and capital spend. So can you confirm the 2026 capital spend, was it 100 million US?

Speaker #3: And this assumes a minimum expiration?

Speaker #4: Yes. about that number, yes.

Speaker #3: and is any of the 2026 capital spend, on expanding to 450 tons per day?

Speaker #4: W-we will do some assessment on that. But just to give you a little bit on the assessment there and, and, and, and the idea of the f increasing to 450.

Speaker #4: When we designed the plant in Nalluna, the only thing we need to expand is to put in a second mill. The rest of the plant is designed for 450.

Speaker #4: So we are doing the assessment now on the lead time of the mill and the construction. So, so that, that and we will be updating in, in either the next quarter or the following quarter with, with that plan.

Speaker #4: Now, that needs to be followed with more mining, of course. And so having 450 tons a day doesn't only potentially give us more cash flow.

Speaker #4: It also gives us also, the opportunity to have lower grade for the plant, if that would be the case in, in future years. Because the, the operating cost stays really the same if you're doing 450 a day, tons per day versus 300 tons per day.

Speaker #4: That gives you an idea of why we are looking at that.

Speaker #3: thanks, Elder. this is a question regards, sort of reconciliations of grades. Can you give us any indication on how the grade in Nalluna is now when you've experienced with the processing compared to the drilling results?

Speaker #4: Yeah. So what we're seeing, the coal factor from the mine plant towards what we are mining is positive. So we are having getting higher grades.

Speaker #4: that is not only to look for is that we are getting higher grades. What we also have to, what we also have to kind of look into is, is, you know, what is the dilution?

Speaker #4: How well we mine it? And that has also been going really, really well. So, so those are the two elements. But positive and positive on both how we're mining it and also the grade so far.

Speaker #3: Thanks, Elder. Eller, maybe one for you here. Could you give us more insight on the gross profit margin and how you see that going forward with increased scale?

Speaker #3: Do you have a target margin in mind for the long term?

Speaker #4: Yeah. so we, we don't have, a target margin in the long term. But I would say that, the point to the, the ASIC, really that we've guided on, in Q4 being in the range of 1,250 to 1,450, US dollars per ounce.

Speaker #4: And then depending on the gold price, you can calculate, kind of net margins, from those numbers.

Speaker #3: a, a question on likely impact. Obviously, very, pertinent at the moment. What's the impact from the current Iran situation on costs? And will our ASIC be impacted by it?

Speaker #4: we, we don't see that, as changing, anything from now. o-obviously, we are we are impacted by kind of general, inflationary, effects. but, again, as, as alluded to earlier, fuel costs are, are, are quite a low percentage of our overall costs.

Speaker #4: so that we don't see a large effect. at this moment, no. So we're not we're not yet so, so we're reiterating our guidance, today.

Speaker #3: Yeah. And, and clearly, Elder highlighted the, the, the slight hedge we have on diesel costs and things. So that's, that's. Actually.

Speaker #4: Yes. A-and I, I just maybe just as a comment. I mean, it's a very reasonable question to ask. In, in a mining operation where you have low grade, you need a lack of power to power big mills and so on.

Speaker #4: Right? So the impact of higher oil prices does have an impact. Whereas in an operation like we have that is high grade, high yielding, the impact of power and so on is much, much, much lower.

Speaker #1: I think the next one is around CapEx and capital spend. So, can you confirm the 2026 capital spend—was it $100 million US?

Speaker #4: Right?

Speaker #3: Thanks, Elder. last question. and so if anyone has any other questions, please, add them in now. But this is the last question for the moment.

Speaker #1: And this assumes a minimum expiration?

Speaker #2: Yes. above that number, yes.

Speaker #3: Can you please elaborate on the support that the executive management receives from the board in relation to any negotiations it has to have with government agencies in Denmark, Greenland, and the US?

Speaker #1: And is any of the 2026 capital spend on expanding to 450 times per day?

Speaker #2: We will do some assessment on that, but just to give you a little bit on the assessment there and, and, and, and the idea of the increasing to 450.

Speaker #3: Do we d-do you feel that the existing board, is providing all the support and contact base that it has?

Speaker #2: When we designed the plan in Maroq, the only thing we need to expand is to put in a second mill. The rest of the plant is designed for 450, so we are doing the assessment now on the lead time of the mill and the construction.

Speaker #4: yes. The existing board is doing that. And the board is kept abreast to any discussion or, potential, opportunities within, discussion with these agencies. And, government.

Speaker #2: So, so that, that and we will be updating in, in an either the next quarter or the following quarter with, with that plan. Now, that needs to be followed with more mining, of course.

Speaker #3: Thanks, Elder. so there are no further questions currently. but please, if you have any, please send them through to me, Ed Westropp, my emails and details on the bottom of the releases, etc.

Speaker #2: And so having 450 times a day doesn't only potentially give us more cash flow; it also gives us, also, the opportunity to have lower grade for the plant.

Speaker #3: and we'll get to those if you need them. thanks very much for joining. we will be coming back for another one of these at the time of the Q1 results in May.

Speaker #2: If that would be the case in, in future years. Because the off-breathing cost stays really the same if you're doing 450 days to 100 days versus 300 to 100 days.

Speaker #2: So it gives you an idea of why we are looking at that.

Speaker #1: Thanks, Ole. This is a question regarding, sort of, reconciliations of grades. Can you give us any indication on how the grade in Maroq is now when you restrict the processing compared to the drilling results?

Speaker #2: Yeah. So, what we're seeing, the coal factor from the mine plant towards what we're mining is positive. So we're getting higher grades. That is not only to look for, it's that we are getting higher grades.

Speaker #2: What we also have to, what we also have to kind of look into is, you know, what is the dilution? How well we mine it?

Speaker #2: That has also been going really, really well. So, those are the two elements. Both are positive—positive on how we're mining it and also on the grades so far.

Speaker #1: Thanks, Ole. Ole, maybe one for you here. Could you give us more insight on the gross profit margin and how you see that going forward with increased scale?

Speaker #1: Do you have a target margin in mind for the long term?

Speaker #3: Yeah. so we, we don't have, a target margin in the long term, but I would say that, the point to the, the ASIC, really that we've guided on, in Q4 being in the range of 1,250 to 1,450, US dollars per ounce.

Speaker #3: And then, depending on the gold price, you can calculate kind of net margins from those numbers.

Speaker #1: A question—likely impactful and obviously very pertinent at the moment—what's the impact from the current Iran situation on costs? And will our ASIC be impacted by it?

Speaker #3: we, we don't see that, as changing, anything for now. o-obviously, we are we are impacted by kind of general, inflationary, effects, but, again, as, as alluded to earlier, fuel costs are, are, are quite a low percentage of our overall costs.

Speaker #3: So that we don't see a large effect at this moment, no. So, we're not— we're not yet. So, we're reiterating our guidance today.

Speaker #1: Yeah. And, and clearly, Ole highlighted the, the, the slight hedge we have on diesel costs and things. So that's,

Speaker #2: Yes. A-and I, I just—maybe just as a comment—I mean, it's a very reasonable question. In a mining operation where you have low grades, you need a lot of power to power big.

Speaker #2: And so on, right? So, the impact of higher oil prices does have an impact. Whereas in an operation like we have, that is high grade, high yielding, the impact of power and so on is much, much, much lower.

Speaker #2: Right?

Speaker #1: Thanks, Ole. Last question—and if anyone has any other questions, please add them in now. But this is the last question for the moment.

Speaker #1: Can you please elaborate on the support that the executive management receives from the board in relation to any negotiations it has to have with government agencies in Denmark, Greenland, and the US?

Speaker #1: Do we—do you feel that the existing board is providing all the support and contact base that it has?

Speaker #2: Yes, the existing board is doing that. And the board is kept abreast of any discussion or potential opportunities within the discussion with these agencies.

Speaker #2: And the government.

Speaker #1: Thanks, Ole. So there are no further questions currently. But please, if you have any, send them through to me, Ed Westrup—my email and details are at the bottom of the releases, etc.

Speaker #1: And we'll get to those if you need them. Thanks very much for joining. We will be coming back for another one of these at the time of the Q1 results in May.

Ed Westropp: I think the next one is around CapEx and capital spend. Can you confirm the 2026 capital spend? Was it $100 million, and this is to meet the minimum exploration?

Ed Westropp: I think the next one is around CapEx and capital spend. Can you confirm the 2026 capital spend? Was it $100 million, and this is to meet the minimum exploration?

Eldur Ólafsson: Yes. About that number, yes.

Eldur Ólafsson: Yes. About that number, yes.

Ed Westropp: Is any of the 2026 capital spend on expanding to 450 tons a day?

Ed Westropp: Is any of the 2026 capital spend on expanding to 450 tons a day?

Eldur Ólafsson: We will do some assessment on that. Just to give you a little bit on the assessment there and an idea of why increasing to 450. When we designed the plant in Nalunaq, the only thing we need to expand is to put in a second mill. The rest of the plant is designed for 450. We are doing the assessment now on the lead time of the mill and the construction. We will be updating in either the next quarter or the following quarter with that plan. Now, that needs to be followed with more mining, of course.

Eldur Ólafsson: We will do some assessment on that. Just to give you a little bit on the assessment there and an idea of why increasing to 450. When we designed the plant in Nalunaq, the only thing we need to expand is to put in a second mill. The rest of the plant is designed for 450. We are doing the assessment now on the lead time of the mill and the construction. We will be updating in either the next quarter or the following quarter with that plan. Now, that needs to be followed with more mining, of course.

Eldur Ólafsson: Having 450 tons today doesn't only potentially give us more cash flow, it also gives us the opportunity to have lower grades for the plant, if that would be the case in future years. Because the operating cost stays really the same if you're doing 450 tons a day versus 300 tons a day. It gives you an idea of why we're looking at that.

Eldur Ólafsson: Having 450 tons today doesn't only potentially give us more cash flow, it also gives us the opportunity to have lower grades for the plant, if that would be the case in future years. Because the operating cost stays really the same if you're doing 450 tons a day versus 300 tons a day. It gives you an idea of why we're looking at that.

Ed Westropp: Thanks, Eldur. This is a question regarding sort of reconciliations of grades. Can you give us any indication on how the grade in Nalunaq is now when you register the processing compared to the drilling results?

Ed Westropp: Thanks, Eldur. This is a question regarding sort of reconciliations of grades. Can you give us any indication on how the grade in Nalunaq is now when you register the processing compared to the drilling results?

Eldur Ólafsson: Yeah. What we're seeing the core factor from the mine plan towards what we're mining is positive, so we're getting higher grades. That is not only that we're getting high grades, but we also have to kind of look into is you know what is the dilution, how well we mine it. That has also been going really well. Those are the two elements. Positive and positive on both how we're mining it, and also the grades so far.

Eldur Ólafsson: Yeah. What we're seeing the core factor from the mine plan towards what we're mining is positive, so we're getting higher grades. That is not only that we're getting high grades, but we also have to kind of look into is you know what is the dilution, how well we mine it. That has also been going really well. Those are the two elements. Positive and positive on both how we're mining it, and also the grades so far.

Ed Westropp: Thanks, Eldur. Ellert, maybe one for you here. Could you give us more insight on the gross profit margin and how you see that going forward with increased scale? Do you have a target margin in mind for the long term?

Ed Westropp: Thanks, Eldur. Ellert, maybe one for you here. Could you give us more insight on the gross profit margin and how you see that going forward with increased scale? Do you have a target margin in mind for the long term?

Ellert Arnarson: Yeah. So we don't have a target margin in the long term, but I would say that the point to the AISC really that we've guided on in Q4 being the range of $1,250 to 1,450 US dollars per ounce. Then depending on the gold price, you can calculate kind of net margins from those numbers.

Ellert Arnarson: Yeah. So we don't have a target margin in the long term, but I would say that the point to the AISC really that we've guided on in Q4 being the range of $1,250 to 1,450 US dollars per ounce. Then depending on the gold price, you can calculate kind of net margins from those numbers.

Ed Westropp: A question on likely impact, obviously very pertinent at the moment. What's the impact from the current Iran situation on costs, and will our AISC be impacted by it?

Ed Westropp: A question on likely impact, obviously very pertinent at the moment. What's the impact from the current Iran situation on costs, and will our AISC be impacted by it?

Ellert Arnarson: We don't see that as changing anything for now. Obviously, we are impacted by kind of general inflationary effects. But again, as Eldur alluded to earlier, fuel costs are quite a low percentage of our overall costs, so that we don't see a large effect at this moment, no. We're not, yeah. We're reiterating our guidance today.

Ellert Arnarson: We don't see that as changing anything for now. Obviously, we are impacted by kind of general inflationary effects. But again, as Eldur alluded to earlier, fuel costs are quite a low percentage of our overall costs, so that we don't see a large effect at this moment, no. We're not, yeah. We're reiterating our guidance today.

Ed Westropp: Yeah. Clearly, Eldur highlighted the slight hedge we have on diesel costs and things. That's-

Ed Westropp: Yeah. Clearly, Eldur highlighted the slight hedge we have on diesel costs and things. That's-

Eldur Ólafsson: Yes. And I just maybe just as a comment, I mean, it's a very reasonable question to ask. In a mining operation where you have low grades, you need a lot of power to power big mills and so on, right? The impact of higher oil prices, it does have an impact. Whereas in an operation like we have that is high grade, high yielding, the impact of power and so on is much, much, much lower, right?

Eldur Ólafsson: Yes. And I just maybe just as a comment, I mean, it's a very reasonable question to ask. In a mining operation where you have low grades, you need a lot of power to power big mills and so on, right? The impact of higher oil prices, it does have an impact. Whereas in an operation like we have that is high grade, high yielding, the impact of power and so on is much, much, much lower, right?

Ed Westropp: Thanks, Eldur. Last question. If anyone has any more questions, please, add them in now. This is the last question for the moment. Can you please elaborate on the support that the executive management receives from the board in relation to any negotiations it has to have with government agencies in Denmark, Greenland, and the US? Do you feel that the existing board is providing all the support and contract rates that it has?

Ed Westropp: Thanks, Eldur. Last question. If anyone has any more questions, please, add them in now. This is the last question for the moment. Can you please elaborate on the support that the executive management receives from the board in relation to any negotiations it has to have with government agencies in Denmark, Greenland, and the US? Do you feel that the existing board is providing all the support and contract rates that it has?

Eldur Ólafsson: Yes, the existing board is doing that, and the board is kept abreast to any discussion or potential opportunities within discussion with these agencies and the government.

Eldur Ólafsson: Yes, the existing board is doing that, and the board is kept abreast to any discussion or potential opportunities within discussion with these agencies and the government.

Ed Westropp: Thanks, Elder. So there are no further questions currently. But please, if you have any, please send them through to me, Ed Westrup. My email is in the details on the bottom releases, et cetera. And we'll get to those if you need them. Thanks very much for joining. We will be coming back for another one of these at the time of the Q1 results in May. Look forward to speaking to you all then. Thanks very much.

Ed Westropp: Thanks, Elder. So there are no further questions currently. But please, if you have any, please send them through to me, Ed Westrup. My email is in the details on the bottom releases, et cetera. And we'll get to those if you need them. Thanks very much for joining. We will be coming back for another one of these at the time of the Q1 results in May. Look forward to speaking to you all then. Thanks very much.