Amaroq (LSE:AMRQ) Q2 2026 Earnings Call

0:00 Good morning, everyone, and welcome to the Amaroq q two and h one twenty twenty six results presentation. My name is Ed Westrop. I'm the corporate development strategy officer for Amaroq. And this morning, we'll follow the usual course. Elder will take you through the highlights for the period operationally and strategically, and Elliot will take you through the financials, and then we'll follow-up with some q and a from the line. So if you have any questions, please follow the usual form on the webcast portal, and we'll endeavor to try and answer all your questions. So without further ado, let's thrust straight into it. Hold on. Yeah. Morning, everybody.

1:01 Thanks all for being here. I can see how there are a lot of viewers online and questions already coming in. Now, to begin with, 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 individual involved in terms of planning people, getting the things done. And the results are that, you know, we have done already 9,000 ounces for h one this year, upper end of that guidance seven to 10. We continue to have a much higher grade than we planned in the beginning of the year, approximately 20 gram per ton. The revenue is now starting to pick up at 56,000,000.

1:46 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 hink at the hunk at the in a way that we want to see it. Part of that is that you've already seen that we have a new upside RCF on a better terms. This is a testament not only to the liquidity we have now to move all the projects as well as increase the liquidity position, but it's also testament of the financial strength of the company, which we'll go into in a few minutes with Alec. Now, we are running now the largest exploration and development program in the history of the company. We started exploration at Iloha in June, and we finished that by drilling three different areas in Iloha rare earth element, a pegmatite zone, which we're very interested in, and a large rare earth play in Greenland.

2:52 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 confident 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 active season. So we kind of the first one to mention here is a Nalna drilling, and I will go into into more detail on the nylon drilling in a minute. But what you're seeing here is that once we are underground and are able to utilize the underground difference of the 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.

3:49 And out of the 27 hole, we could already see 23 over the visible gold. We're getting average grade of 42.8 gram per ton, which is absolutely fantastic. 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. Absolute high grade area. This level is from 800 to up to eight sixty and constitutes about all of twenty six and twenty seven into 28 of resources. Now, we have been focusing on those resources but in the AMRQ five where we updated the resource statement alongside the main listing on thirty first, that did not take into account any of the underground drilling this year whatsoever.

4:44 So now that we're drilling and refining more and more, the focus is to, on the one hand, increase the resources but also confirm the grade. We've done more than 100 bags of flotation bags. We're already above approximately 90% recovery, of 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 Mintern, we started drilling there. Nanook is a gold area that we drilled last year, and I will speak to that in more detail later on. And is an IOCT, which is iron oxide copper gold, deposited high up in North Greenland, which we are now already drilling.

5:33 As mentioned earlier, went to the main market on the July 31. 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 distributed liquidity over three markets: Canada, Hain and Iceland. We delisted from Canada to focus to get as much liquidity on one market, which we are now focused on the long term market. Iceland has strong investor base, a long term investor base, but it is a more shallower market for all of our focus is not to increase and build up liquidity on the main market in London.

6:28 This was important date for us to get on July 31, and actually in the middle of our summer holiday here in Iceland, but this gives us the opportunity to be admitted to indexes prior to first of September, and we will focus on not only indexes in the FTSE or FTSE two fifty, but more importantly also in the gold junior interest like ETSE where we need to uphold a certain liquidity over period of two quarters. In addition to that, we finalized the government KAV funding that is with our funding partner, GCAM, where we funded in total approximately $10,000,000 to fund both Indoor and Midterm drilling program.

7:21 Now, I wanted to 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 our three mine focus for Amaroq. In fact, we have three operating mines being built. Now each of these mines have the opportunity to grow, improve resources, and in production. Now if we start with Nalunak, our focus point there is to have 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.

8:14 This will give us better opportunity to guide next year and the following year. And we really started this underground drilling very late last year once we have established the infrastructure under construction. Under drilling was never done in Nanlag by our predecessors, so we are doing that, and we are learning a lot. We are learning structurally how the tip of the ore body keeps the hybrid pocket and, you know, but 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, as I said, 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 Talke Block 75 And South Block and this is in anticipation to start increasing production in Malmo. We need the mine to deliver that. On the mining end, we are focused on reaching an intense capacity that is all about getting the development leaders 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.

9:38 In medium and long term, we will then push more development meters and more throughput to be able to access new ore stones and to drill up more resources. For our investors, what is key is to grow the resources, both reserves and resources, as well as growing production. On the plant side, the short term is to meet that nameplate capacity of twenty seven days or three hundred days. Medium and long term, so 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 four fifty tons 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 are also looking into what is called an optical ore sorting technology, 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 on more high grade ore fluid.

10:39 This will have the same effect. On the permitting time and all permits are in place for our current operation. For the medium and long term, we are looking to build more efficiency around price containment facilities 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 months, which we're going to take home. Now, here you can see the kind of key areas that we are developing. I want to draw your attention to the green pit on the slide deck. You can see where you have numbers seven ninety two all the way to 874.

11:28 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 ten exploration grids in the start of that drilling, and that will drill from the same seven ninety all the way to eight seventy five. 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 800, this is where we have another grade of 42 per gram ton. Then you see below the mineral resources shown, that's the target board.

12:18 Over time, we will start putting exploration drift underneath there and start drilling that. Now the eight ten exploration drift, as you can see, it goes directly onto the area. We are at we are mining at 800 level right now. The mountain goes all the way to 1,350, and this outcrop 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 70 by five main above the main vein there. So this exploration grade, every 100 meters, we are then be able to drill. And so after we've done exploration grade for 100 meters, which we're expecting to be have done before end of the year, we can then start drilling into the area in '28, '29, and 2013.

13:09 Now we have a new mine based on an old mine called Marmorelli. Marmorelli or previously known as Black Angel is something we've been evaluating now for this whole year, and we have hired WSP, 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 Marmoryl area. On the geological side, we currently have already 4,400,000 tons. Now previous operators, they looked to develop a mine directly where the old block into mine was, where you take off the hydro pillars and you mine that for maybe two years.

14:08 This would have been equivalent of maybe up to 1,000,000 tons. However, there are 4,400,000 tons. We have changed it around to focus on the whole Maramorelic area. When the glaciers have been retreating, there's a lot of resources coming to surface, and we already have known resources for drills 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 thing where we'll follow the tons we have and follow each of these resources to develop our mining activity on the the 4.4 or or or even larger, and then grow the resources to in the redevelopment area of the mine.

14:57 On the mining front, we are very much focused on the same mining rates that for lithium and pack mined from the mine previously. So this was about 700,000 tonnes on an annual basis. We're doing OLITA scanning of the old previous mine workings, three will turn those, and we are working towards a new mineral resource estimate and preliminary economic assessment. On the downstream plant, we're leveraging of a previously operated plant that was on-site, which produced 60% flotation concentrates, 60% zinc lead silver, and obviously germanium gallium. And we have previously metagolical and a lot of data on the ore, which is very clean and good ore. Effectively, this is also leveraging of what we've already done. On the permitting time, we'll follow the same permit process with Nalunac, same car, same redevelopment of tunnels, same roads, same price duct taping, everything the same, which is gonna work really well for us.

15:56 We are really hopeful and know that this would be a very good project. This is most likely a redevelopment time of three years, but obviously we will update the market on Amaroq Ltd. And the PEA this year, and we feel that this will be a very value created whole company. Here you can see on the Marmorylics side how it works. Marmorylics 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 gonna do is that we're gonna go back to our own strategy.

16:44 We're gonna redevelop the end to or tunnel, which is a nine kilometer tunnel from a mammary camp to the end to. This is 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 the roads for approximately five to seven kilometers going first to the Arc Zone, which is an ore body of 500,000 tons, then to the Glacier Zone, which is 1,700,000 tons, then we will go to the area where you see the new portal, and from there we will go to Deep Ice Zone where you already have seven meters over 40% zinc lead silver, and all black into nine. 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 4,400,000,000 ton ore per day. What is important in each of these spots here, you are probably missing 10 other spots of outcropping, and we are now doing sampling of all of these different areas that are outcropping.

17:51 Each of these areas, the outcropping has only been drilled, maybe down to 100 meters. Nothing has been drilled that strike where the outcrop is then extending or at that. So this is, again, another nun, like, where we start with the resource and we grow the resource while the redevelopment 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 NAMRQ. NAMRQ, you can think of that as obviously our main focus there. If we go back to a second, we drilled 4.5 kilometers last year after drilling two holes the year before that.

18:39 We got this unbelievable thickness of nine meters, very high grade on surface, and only down to 70 meter depth. We're doing a similar program this year to drill both infill and step up drilling to hopefully declare our initial main 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 is we are already assessing how we put up a simple harbor and a road or a track towards the deposit, which is only 1.5 kilometers.

19:29 What will that 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 Nalano. Now not all ore is amenable to any kind of a processing plant, and we don't know that yet if the Nalamor will be amenable to the Nalamor processing plant. So we are doing studies now on the outcrop, on the ore in Nalamor to see if the ore can be used or processed in the Nannoch plant. If it can be, it would be a huge impact for us because you can imagine we don't then have to build in the beginning a processing plant in Nannoch. We only have to set up a pump, roads and to manual equipment, which we feel very comfortable doing.

20:16 I just wanna remind you, it's about seventy, eighty percent of our cost in Nannoch was to build that plant, and it's a big impact on the cost structure from a project like this. So with Nannoch, you can see how we can grow the knowledge of the region and the scale of the research by setting a role 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 on this upset. Here you can see the distances from Namaq over to Nalunak. What is important here is that in mining there's nothing faster than bringing material onto a sea. Trucking or handling around trucking or trains and so on is something that is complex and expensive.

21:05 So being able to bring this on sea and being so close to shore is very, very beneficial. Nalunk is certainly in a different location to to Nalunk in terms of weather, in terms of ice, and so on. But overall, and the same thing applies with Amaroq, but overall, surely, 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'm going to hand over to Aleph here to run through the financial of the quarter. Thank Aleph. Looking at the income statement, you can see the transformation in the business between years.

21:53 Our revenue reached $56,200,000 in the first half compared with just $3,400,000 in the same period last year, reflecting the successful ramp up of Alunac and sales of 8,610 ounces at an average realized gold price of USD4696 per ounce. In Q2 alone, generated $37,300,000 of revenue from 5,640 ounces sold. G and A costs increased as expected as we continued to build the organization and progressed the main market listing in Q2, which carries with it some one off costs, while exploration spend increased as the 2026 field season commenced.

22:41 And that revenue growth is now translating into profitability. The H1 gross profit was CHF34.9 million compared with a small gross loss in the prior year period, while operating profit increased to CHF15.1 million and net income reached CHF13.6 million, an improvement of almost 24,000,000 compared to h one twenty twenty five.

23:11 Let me get the balance sheet up there, please. There we are. On the balance sheet, total assets increased from $354,000,000 at year end to $426,000,000 at the end of June, which is continues to be driven primarily by continued investment in nylonack, I. E, the processing plants, mine development and infrastructure, as well as higher inventory levels. Inventory increased to $38,800,000 including $24,400,000 of metals inventory, 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 Amaroq's receivable from Gardek into equity in Gardek in accordance with the existing management agreement, which has since been renewed.

24:15 On the liability side, the increase in loan balances reflects the expanded revolving credit facility completed in Q2 with Landsbanken and Dunbar, and we've now drawn down on million of the CHF70 million facility. The increase in current liabilities primarily reflects deferred revenue relating to a shipment in progress at period end, for which partial payments have already been received and which was

24:43 subsequently delivered and sold in full in July. And even after the investment program we've been conducting over the last eighteen months, we've continued to retain a strong equity ratio, which stands at 69%, which gives us substantial financial flexibility moving forward. And Cardax cash balance as of June 30 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 6,500,000 to fund the current field season. In the first half of twenty twenty six, operating activities generated $20,400,000 of cash flow compared to the first half of twenty twenty five, where operating activities consumed 13,400,000 of cash, and that's a swing over CHF 33,000,000 and represents a significant milestone for us.

25:52 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 continued in investment mode with million invested during the period, primarily in the ongoing construction and optimization of the Nalnak 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 inflows of CHF30 million, reflecting expanded facility agreements.

26:39 And as a result from a liquidity perspective, we ended the period with CHF28.5 million of cash and access to a further CHF18.5 million of undrawn facilities. Together, that represents approximately CHF47 million of available liquidity at quarter end, which provides a strong base to continue executing on operational and growth plans. And with that, I'll hand back over to Ed. Thank you, Oleg. Yes. I'm not I think just to kind of wanna give you a quick outlook of of next few new steps here. As you can see, Nalunac now is in that mode where we are

27:26 delivering a lot more tonnage on a higher grade and we continue the ramp up effectively right now because we're running on a 90% recovery already, which is really exciting for the company. And as you can see from how the financial changes in terms of liquidity and others, this is really exciting for the company and in plan where we are. On Mammorelic, we have a new approach here on an old mine, which is using the strength of AMRQ, how we want to approach things, and we look forward to updating you on the progress of the mineral resource estimate and the preliminary assessment for that project. For Carlisle, we're drilling really high impact on iron oxide copper gold deposits in mid term, And then the rare earth pegmatites that we're drilling in Iluwa have already drilled, and we look forward to update the market on that.

28:17 These are both assets we are going for drilling and assessment of something that could potentially be very, very large, and that's what the purpose of that idea is for. In Zuliak, we did continue to develop our assets registered in Zuliak. Alex mentioned, we have mining equipment, various different sorts of equipment for the organization. And in end of June, we acquired one or two or the only icebreaker available to the North Atlantic, effectively used to be owned by the Danish Navy. And we're very pleased because we've been looking at that acquisition for the past, I want to say, eight years, and this will seamlessly strengthen our capability in operating various different regions in Greenland.

29:09 On Naloxone, 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 Naloxone, 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 on 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. Thanks, Elder. 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.

29:56 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 the the plans for it, but can you elaborate a little bit on the potential value upgrade for Yeah. Okay. So, I mean, this is this is us. We are obviously guided by the process we have to take in terms of mineral resource assessment, and then we have to undergo through our your compliant calls of of preliminary economic assessment and BFS

30:26 and so on. But with that in mind, I'm I'm gonna try to paint the picture how we see things. What we do know is that the central zone for for in total sorry. Let me start again. In total, we have outcropping raining 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 meter depth on an 80 to 120 meter spacing. So this year, we are drilling in between that to understand the geometry of the ore body. Once you understand the geometry of ore body, the grades, and these things, you can then are then in a position to declare resources.

31:12 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. Helicopters may be a 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 longer period every year. That gives you the to grow the resources quite substantially 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.

32:01 And so when you have an output of more than one and a half meter on surface worth 600 meters, We can literally scrape that resource out from surface, put it into small containers, 20 foot containers, put it on our silver upfitter ship, and ship it over to Nalna and bring it over. We're doing the same thing with the concentrate, by the way, in Nalna. So we're used to these operational capabilities in in Greenland. By doing that, then the discount on that NPV of that potential resource will be lower, and it will do two things. It will allow us to drill it quicker, and it will also start generating additional ores towards Nalunag while we're growing this opportunity. Thanks, Oliver. Next question is regards to the main market listing and share price reaction since. I'll take that. Yeah.

32:52 July 31, confirm the uplisting. Obviously, an interesting time to do it in the middle of most of the summer holidays, but very, very pleased to have got it done at that time.

33:03 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 reactions there, but we clearly see it as a as a big potential value up poorest and access to the 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 Nanolan? We have always been confident in the grade in Nanmac. Now when we start built this mine, we did not build this on the basis of having a full PFS called a preliminary feasibility study.

33:51 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. So we took the focus of developing this mine on the back of a preliminary economic assessment. Sorry. We need to use infrared resources. So we studied previously how much a drilling grade became when it became a developing grade and how much that developing crane became. And we saw a core factor in the previous operative design. Whenever you were drilling, the grade usually was 60% higher. We're not saying that will be the case going forward, but we estimated that would have a potential to be continuously in Malena. What we are learning more now is about the whole structure, the definition of things, so we very much are confident in the grade in the short term for one and a half, two years ahead of us.

34:46 And with the exploration price 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 simply 80 like a drill hole because we sampled the whole outcrop there on on a on a meter by meter basis all the way to the top, and we got some brave Australian acts army personals to do that for us this this year. So we're very pleased about. Thanks, Alda. There's a couple of questions on ASIC, the all in sustaining cost, and I think we'll we'll punch them into one, Elliot, which is

35:29 how you maintain or lower the ASIC, and what is the current ASIC that we're running at? Yes. On ASIC, it's 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 Zuliak, our services venture.

36:18 And that would allow us to consolidate procurement and achieve better pricing on on key consumables and services. And, yeah, that is is mostly it. And, basically, we're continuing 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, basic per ounce is in and around USD 4,000. But in Q2, it was down to USD 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 midrange of guidance, we should be at or around 2,400 for us.

37:20 Thanks, Alex. Next, again, I'll punch a couple of questions together. Been asked this a couple of times. The US continues to make noises about Greenland. Have we had any interest from US investors or US government investors, more specifically in Amaroq?

37:40 Yes. So I think I would expect all serious mining company in Greenland would have had dialogue or discussion with one or multiple US agencies. Any discussion about potential investment is confidential.

38:02 Thanks very much. On that, when do we expect a maiden mineral resource? So what we're hoping is that we will have a maiden mineral resource on the back of this year's drilling. And back back of this year's drilling is based on, you know, we are drilling we started drilling fairly fairly recently, as we we mentioned. And so once we have all the core, we need to shift the core out of Nanog. We then need to shift that core over to Ireland for independent assay result. And so the reason why I can't answer you, if this is going to be October or this is going to be January, has a lot to do with logistics.

38:51 And what we are trying to tell the market here, and this goes back into Zuliak, why Zuliak is so important and what we've mentioned, is that to have full control of cost and execution in Greenland, we need to control the logistics and the logistics is very much dependent on equipment may be enabling sure that your supply line delivers that. We are getting better and better at this, and we are getting more and more control around Zuliak, and we are always pursuing that financing around Zuliak to be have that in place. As for the mineral resources, I am very confident there will be a mineral resource on NAMR. It is all determined on how much drilling you need to do, and we have to remember the geometry of the ore body is into the ground and is in the three d nature, so it can take time to get there. But we are very hopeful with this interim drilling that we will have our initial maintenance resource this year.

39:59 Thanks, Albert. Again, there's couple of similar questions here, which I'll pull together on cost 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 you've seen? No. 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 it has as of yet, has not affected us.

40:45 Right. Got it. So an operational one here. And and again, there's two very similar ones which are all actually all together, which is when when will you stop constructing a second ball mill? And what will this take production to? And can you also talk about the technology of of around optical ore sorting and the cost of that? Yeah. So there there there are sorts of things that we but when we go into the investment decision of increasing the transfer, but we need to know that there will be ore that is available to get to that 450 ton per day. So we have the mind needs to be ahead of the processing. Now it's also a fact that it takes time to design and acquire a ball mill. There's lead times, etcetera, etcetera.

41:34 So so we when the investment decision is being taken on this, what we have to see is that we need to have a clear idea that either has in the short term the potential to grow the resource production oh, sorry, the the production probe. That is more than one mining cost, so more than only mountain cost. So it would have to be 75 in or or or as an example. Or we could then be looking towards getting Nanook or available in Nanook. So that that controls that decision. Now the decision on the actual water sorting or the mill, when we designed the plant, we had space within the building to put the second 150 ton mill.

42:20 And then we also have space in the building to have locations up. 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 it's amenable. So there is an opportunity to oral sebum, there is an opportunity to increase the throughput to the plant by adding the mill, or potentially both. In addition to this, it's important also we have dry stacking facilities because we cannot fill the mine forever. We have to with with with tailings, and that is a process that we built into our environmental impact assessment and are now starting a permitting process for to set up next to the plant outside.

43:15 Thanks, Ola. There's a quick question here on the single mine origin status of Nalhack and 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 line origin certification portal to retail. At the moment, it's only for Greenland. That's part of our agreement with the Greenland government. We're currently discussing with them when we can then open 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, etcetera, already in place. So in terms of facilities there, we just need to get confirmation with the Greenland government. We can sell it outside of Greenland.

44:04 Next question is on I'll read it out to you. Please, can you confirm current mining ore processing rates? Are you at 300 tonne per day level? And for H2, what are you expecting 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? Yes. So start 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 ask them at a certain amount of day per month up until q four, and we've already reached highest throughput. So to think of it, you run it on a 300 pound a day for a, say, for 23 days a month. Or to be in a full run rate, you would do it to twenty seven days a month. We don't run the plant from 240 because it's not our optimal throughput. So we are running it at the three in December day when we run the plant. Okay?

45:03 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 pet design. You're right on the grades and throughput. So as an example, you will be able to see in you will be able to see in h one that we were running the same amount of tons in q one and q two. There are several reasons for that. One reason, the first one, is that during May, we decide to stockpile ore ahead of running the flotation concentrates in June. This is number one, so we didn't have to rehandle as much ore in and out of the mine. And we could do this because we were experiencing much higher grades, so we would reach our ounces target for sure.

46:00 Secondly, on your throughput, for example, when we develop the sills, we've been doing double plastic in the sills. That means you first blast the waste, and then you blast the water. That slows you in production because have to do two blasts, but you get more high grade out by doing that. In an area where we are to the east, in this high grade area of forty, fifty, 60 grams a ton, we have now started to do a single plus because, a) we don't lose any grade in that process, and, b, we can actually still get such a high grade to the plant that it makes more sense for us. So that may become that's become a a typical example of trade off between mining rates and grades. Thanks, Ola. A quick one here. Black Angel, West Greenland Hub, now Amaroq Ltd. Is that a bit confusing for investors? Possibly.

46:52 Fair enough. But I think what we have to think of is the following. In South Greenland, we run up South Greenland Hub. What we mean by that is that we leverage off the operation in Nalanak, which is a producing operation. And I say this with great disrespect to any other operator in Greenland. If you don't have our operating facility, it means you don't have warehouse, you don't have 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 what's happening on Earth. Around Black Angel, which is our next producing mine, we have West Greenland Earth. Okay, so why are we changing the name from Black Angel to Marmorylic? First and foremost, we are not only mining Black Angel. We are mining the whole Marmorylic area. Marmorylic means Marple. This is our old this is our big Marple area and area.

47:49 It also goes into explaining to people that we are building a Greenlandic legacy, and therefore, our minds are gonna be in Greenlandic names from Malvernay, Malmorilli, and. Thanks, Albert. That's clear. Elliot, one for you here. Has management considered to capitalize exploration and evaluation expenses instead of expensing in the period they occur? Yeah. 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 and.

48:48 Thanks. So, Alex, again, there's there's a I'm I'm gonna call two or three questions. There's one here on on. The metallurgical testing that SGS 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 process it now? So what it is, effectively, we take fairly large sample from the outcrop in NAML, and we run it through a pilot plant or a small pilot plant in the 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 and nylon would theoretically work for it.

49:35 I don't wanna give a percentage. We'll have to wait for that, but I think those results will be imminently coming out to the market. Thanks, Oliver. And the next question is from David Craigen. To those investors who participated in the last equity raise, Amaroq's share price was up 26%, has lagged physical gold, which is up 29%, but meet but underperformed the the gold explorer's ETF. How committed are you to ensure that shareholders from the last fundraise in June 25 get their due return before any subsequent equity raise occurs to fund future development? It's a very good question. I think a lot of these things, and we we we management here is is equally frustrated with the the performance.

50:23 There are various different pieces that have impacted this. On the one hand, since the last act of the respite, 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 impact us, and we have nothing in line with that. And we can see that directly from the selling pressure we were experiencing in the company for the past year, not especially since June, from the mutual fund share management. And now, the market management is important to us. It has been very supportive. It has long term investors, so we'll continue to be here, but these are the things that are the main part. Second thing that has been big issue for us is to be listed on three markets.

51:11 So we got some criticism for delisting from Canada. Short term kind of our thinking was that, you know, this could have an impact us around the time when there was interest from The US. 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 AMRQ in London. It has hindrance for, for example, US investors to participate in London.

52:02 There is an issue on the market making mechanism in market that has an impact on their willingness to invest in the market. So overall, we the plumbing of the company and how we set up the company, we have a very good free flow. There's 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 metals in London are international investors. And being in excess, it's important for funds such as such as Danish pension funds and Icelandic pension funds and so on. And so all of these things that we've been doing has been to give us the opportunity to follow the market pattern. Now the management focus is to deliver costume by costume, and we've been doing that now continuously now ever since this time last year. We're very pleased with the progress so far. And so the hope is with the right quality as well as us delivering cost of a cost, we will be able to deliver a lot more value.

53:15 As for I think it was the question entailed an equity raise, 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 for our more 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 type of investor to the company, but we have no intention to do so at the current levels of the company. Thanks, Oliver. Just a couple more questions. One, how big is the germanium and gallium resource and opportunity, and how are we gonna commercialize that?

54:10 It is a big source of remedy. So first thing I wanna 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 these methods are willing to accept. Luckily for the Marmorylic 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 payabilities previously. There is a change in the industry right now with 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. Humanium and gallium are a favorite part of the review even though the main revenue streams are zinc flat and zinc and lead, And we will do our utmost to to get that revenue stream directly to the company in as much quantities as we can. Thanks, Al. I'm 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 over a 120 parts per million and similar for gallium, which are quite high.

55:34 We will be doing further assaying and testing at Marmorylic this year as Elder 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 there's very good grade there as you'd expect from Greenland. Okay. Last question. Can you tell us something on how you're gonna going to use the icebreaker? Is it gonna be mainly for Amaroq? Are you gonna use third parties? And how are you gonna use it for Amaroq? Yeah. So the intention with the sole 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 of equipment. We knew this would be coming, and we said this to the market all and all again, and that is because in the past years, maybe two, up to a billion dollar has been raised for mining projects and oil and gas projects in Greenland.

56:37 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 supply ship. We have a lease. We've acquired a hybrid. But to give you a sample, Mintern, our project there, we were four weeks behind schedule. We're drilling now, and and we're pleased to be there. But on the one hand, it was not to do with whether or alone. It had to do with when we could procure things and when we could be making sure it would be in green. It had to do with the fact that when we were bringing the helicopter up from and and and all the way up to North Greenland, We needed maintenance personnel. There were weather delays, etcetera, etcetera. If we would have icebreaker this year, we would have sailed with the helicopter and all the way to the asset.

57:31 We would have controlled completely the timeline, that is, and reduce the cost of the program and actually put it more during the program. On top of that, when we will be operating Nalanor, having an iceberg that can go in and out, give security and operational security for our operation, as well as we experience in Nalanag every year, where we have difficulties bringing goods and services to and from. So this is an essential feature for exploration 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, Albert and Elliot, and thank you all for listening. That concludes our webcast this morning.

58:22 If you have any further questions or need more detail, please don't hesitate to drop me a line, and I can see if I can get back to you on in there. So thanks very much for listening, and have a good day. Thank you. Thank you.