Feb. 26 at 3:15 PM
$AMRQF Cavendish Review
Cavendish !!
2026: Commercial production and turning FCF-positive Amaroq is set to achieve ‘commercial’ production and turn FCF-positive during 2026. The recently completed gravity-based Phase 1 of the flagship high-grade Nalunaq gold mine in Greenland is reported to be at steady state, while Phase 2 (a flotation circuit, which should see recoveries improve from c60% to 90-95%) is set to begin commissioning during 2Q26. FY26 guidance, issued today, is for production of 25-35koz Au (FY25A: 6.6koz) at total cash cost of US
$44-47m (implying US
$1,343-1,760/oz) or All-In Sustaining Cost (AISC) of US
$69-73m (which works out at US
$2,086-2,760/oz). Notably, 4Q26 is explicitly being guided at 10-12koz at US
$1,250-1,450/oz – which is of significance, we believe, in that this should be representative of production and costs thereafter. For context, the spot gold price is currently cUS
$5,200/oz, suggesting significant cash generation at healthy margins.