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(Sharecast News) - Amaroq set out 2026 production guidance of 25,000 to 35,000 ounces of gold from its Nalunaq mine in Greenland on Wednesday, with output weighted to the second half as flotation recovery is introduced.
The AIM-traded company said annual production would depend on feed grade, the timing of phase two flotation start-up in the second quarter, planned maintenance and contingencies.
First-half production was expected to be 7,000 to 10,000 ounces, with full flotation recoveries introduced in the second half.
The phase one gravity circuit is projected to achieve recoveries of around 60%, rising to 90-95% once the phase two flotation circuit was fully commissioned.
Average feed grade was expected to be 14 to 15 grams per tonne of gold, subject to variation as different sections of the Mountain Block ore body are mined.
For 2026, Amaroq said it was targeting full-year cash operating costs of $44m to $47m and all-in sustaining costs of $69m to $73m.
Unit costs were expected to fall in the second half as the company transitions from a contractor to an owner-operator model across drilling, processing and camp support functions.
Fourth-quarter AISC was forecast at $1,250 to $1,450 per ounce, with production of 10,000 to 12,000 ounces.
Around $14m of non-sustaining capital expenditure was planned at Nalunaq, primarily to complete processing plant construction and commissioning, invest in underground equipment and expand camp facilities.
Amaroq outlined a base-case exploration budget of $11m across its portfolio, with flexibility to increase spending to $29m subject to market conditions.
Programmes would focus on resource growth, pre-development infrastructure and high-impact exploration.
At Nalunaq, underground resource definition and exploration drilling would run in parallel to support resource replacement.
Elsewhere, work was planned across the West Greenland Hub and Black Angel, Nanoq, regional satellite gold targets in the Nanortalik belt, Minturn IOCG, Ilua rare earth elements and Stendalen.
"With the Nalunaq gold mine now through the commissioning of phase one and running in steady state operations, I am pleased to be announcing our 2026 full year production guidance range of 25-35koz of gold," said Eldur Olafsson, chief executive.
He added that in the current gold price environment the company anticipates "strong free cash flow from operations, supporting comprehensive exploration programmes, as we seek to unlock the substantial value within our portfolio".
Olafsson said the group continued discussions with third parties regarding independent financing of its Suliaq support services and logistics business, and described 2026 as an opportunity to "fast-track the various projects we are developing, in order to realise incremental net present value through accelerated execution".
As at 31 December, Amaroq reported a cash balance of CAD 27.2m (14.7m) and CAD 8.9m of undrawn credit facilities.
The cash balance included CAD 5.6m of gold sales payments in transit but excluded CAD 2.6m of Gardaq liquidity.
Inventory stood at CAD 24.2m, total assets at CAD 352.6m and net debt at CAD 15.3m.
At 1201 GMT, shares in Amaroq were up 6.11% at 119.49p.
Reporting by Josh White for Sharecast.com.