Amaroq (LSE:AMRQ) reported first-half 2026 gold production of approximately 9,000 ounces at its Nalunaq mine in Greenland, ahead of the midpoint of its 7,000 to 10,000 ounce guidance range for the period.
The independent mine development company, focused on unlocking Greenland's mineral potential, generated second-quarter revenue of $37.3 million from gold sales of 5,640 ounces at an average price of $4,678 per ounce, taking first-half revenue to $56.2 million.
Net profit reached $11.1 million in the quarter, bringing first-half net profit to $13.6 million, while the cash balance climbed to $28.5 million at the end of June from $8.8 million three months earlier.
Amaroq completed and commissioned the flotation circuit at Nalunaq in June, marking what chief executive Eldur Olafsson called an "important step-change in the mine's operating capability and recoveries", with recoveries already reaching around 90% in July, up from a historical 50-70% range under gravity-only processing.
The company secured an upsized $70 million revolving credit facility with Landsbankinn and Gunvor Group in April, replacing its previous $35 million facility at lower cost.
Amaroq reiterated full-year 2026 production guidance of 25,000 to 35,000 ounces and Nalunaq all-in sustaining cost guidance of $69 million to $73 million, with third-quarter production tracking in line with management's expectations.
Resource drilling began this month at the Nanoq gold project and the Minturn iron ore and IOCG prospect, with initial results from Minturn and the Ilua Pegmatite rare earth element prospect expected before year end.
Panmure Liberum analyst Duncan Hay, in a note, described it as a strong second quarter with production ahead of estimates, lower costs and materially improved flotation recoveries.
Hay, who rates Savills as a 'Buy' with a 160p target, also flagging the flotation circuit ramp and continued production scale-up will be key catalysts for meeting FY2026 guidance.
News Intelligence what this means for the company
Amaroq beat H1 production guidance at 9,000 ounces—above the 7,000–10,000 range midpoint—as the flotation circuit at Nalunaq reached design specification with recoveries of 90–95%, nearly doubling the prior 50–70% gravity-only baseline. The company swung to $13.6 million net profit for the half and cash jumped to $28.5 million from $8.8 million in Q1, while the $70 million revolving credit facility replaced a $35 million predecessor, lowering cost and doubling liquidity headroom into 2028.
The flotation upgrade is now live and delivering on its promise, removing a key execution risk and validating the path to higher margins and cash generation. Full-year guidance of 25,000–35,000 ounces remains on track, but the real test is whether the 90% recovery rate holds at scale and whether exploration drilling at Nanoq, Minturn, and Ilua yields resources that justify the company's Greenland platform bet.
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