Amaroq Ltd

Good morning, everyone. Welcome to the Q3 2025 results from Amarok. Thanks for joining. We'll follow the usual course for today, so manage what takes you through the presentation, and then we'll follow that with Q&A. First of all, from the line, moderated by Sean, and then I'll moderate the questions on the web. So thanks very much for joining. I'll hand over to Elder Oleson, the Chief Executive.

Thank you, Edward. Good morning, everybody. It's a pleasure to be with you here today after a very busy and successful quarter. I want to start the day off by giving you a snapshot of our operation, as we usually do on this quarter. We are very much focused on our mining development in Greenland, meaning now production, development, and exploration. To do that, we are in Greenland, and as you can see, Greenland needs a lot of services and energy to enable these businesses to be successful. And therefore, out of necessity, we have set up these businesses as well. We are mainly focused on two different regions in Greenland. We are in South Greenland, where you have Gold Belt, you have rare earth, known rare earth areas, and then you have copper and base metals. There we have the Nalnok mine. We have the Nalnok exploration development project, and then we have early state exploration in Baaref. In West Greenland, there we have the Black Angel past producing mine, and the intention is to bring that into production in the coming years. We have then the Kangalusrak exploration set X-PLAY, again, very similar to what we have in Nalnok. So you have a high-grade, development or producing assets supporting larger scale exploration assets. These two regions in Greenland are the most developed region in terms of mining. There is well known by the market, by the various participants, even though all of Greenland is obviously very prospective, but we managed to situate ourselves in these two regions with the most advanced asset to date. To give you highlights of the quarter, we had a very, very successful quarter. We produced in early October 5,000 ounces. We sold 2,636 ounces during the quarter. And year to date, we've sold 4,347 ounces on an average price of approximately 3,500 per ounce. The liquidity is very strong. The cash balance hit at 55 million. And mind you, after a very heavy CAPEC quarter. So we've been fast tracking development on the plant and various different things. Furthermore, this quarter is also very heavy on exploration. We do most of our exploration work within it. And we have finished all of that exploration to date. They come on budget. We finished all of the work that we wanted to do. The only thing that still remains and will be ongoing during winter is drilling in Nalanak, both on surface and underground. And we will be reporting on Nalanak exploration result in Q4, and we'll be reporting on Nanog in Q4, as well as some strategic mineral targets that we've been exploring. We commenced trading on the OTC within the quarter, which has been very good and gave us good access to the U.S. market. We invested in one of kind of a fully operating or moving from a contractor to a fully operating mining setup. This means that we acquired our own equipment, our own supplies. We've been over the past year hiring our own people. And so this will mean, yes, it has some cap is involved, but this will then mean a lower opus and more throughput going forward. And this has been going really, really well. And on that, we've seen, and you will hear that from John Plant later on, we've seen a very good operational uptake both in the plant, also in the mining, and then we have delivered our gold production this year. And as you see in the outlook this year, we have updated our annual outlook to be producing between 6,000 to 7,000 ounces by year end. I wanted to take this opportunity to give you a little bit of understanding on how our business model works and how we develop our assets using something that is called the , which is very well known in the mining industry. The Lausanne curve sets out where projects are on the development cycle, so if they're exploration assets versus development assets or a producing asset, and what is usually the multiple on PNAV during that process. As you can see, NALUNAC should have the highest multiple as it is in production, and that multiple should go higher and higher. What controls that multiple is grade, it's a jurisdiction, and it's the fact that if you can grow the resources while you're producing from it. So the good thing about both NALNAC and Black Angel, we have the opportunity due to the fact that it is high grade to start with resources of somewhere between like we did in NALNAC six to ten years, and then continue growing the resources. So that in itself gives a good value proposition for a master. The intention is then to utilize the management team and, more importantly, the cash flow to move nano-calculators and other exploration up this curve. So that gives a very good proposition to the investors. Now, the enabler of developing all of these things is the services and energy. In most countries around the world, you have services and energy. In Greenland, we have to build them ourselves. And so by doing that, we allow these projects to go off the development timeline and we allow them to do that at cost competitive. And what I want to say, the reason why we do it in this manner in Greenland is because Greenland is underexplored. And the hindrance in Greenland to explore has been it's remote and doesn't have a lot of people. And now with these two operations, we have all of these things and the service equipment. So this will allow us to move up this curve, in our opinion, relatively quickly. especially with the positive cash flow coming next year.

Thanks, Alder. In Q3, we had sales of 2,636 ounces for gross proceeds of 12.8 million, with average price per ounce of $3,568. In comparison, gross revenue in Q2 amounted to 3.4 million. Subtracting cost of sales results in 5.9 million in gross profit, and subtracting G&A results in 1.7 million in operating profit. Q3 is always our most busiest month when it comes to exploration, and this year was no exception. Total expenditure this quarter was 5.5 million, but most of it was incurred at the NANOC campaign, that is 4.4 million out of the 5.5. where we drilled roughly 5,000 meters this year. And at the end of the reporting period, approximately 60% of the core had been logged and sampled with results pending in Q4. After incorporating other income and expenses, the company recorded a net loss of 5.3 million for the period, a big improvement from the $14 million loss in the prior year when, of course, no revenue was generated. Now, the key balance sheet movements in Q3 consistent with prior periods was a 21.1 million increase in capital assets to 221.9 million at quarter end. And this was obviously driven by the Nylon Act project. primarily reflecting ongoing construction at our 300 ton per day processing facilities by the mine. Supplies inventory and escrow account is more or less in line with the last quarter, but we are seeing continued increase in metals inventory, which stands at 11 million at quarter end, compared to 9.2 million at the end of Q2. This represents our gold contained in ore stockpiles and tailings as well, as well as gold in circuit, associated with processed but not yet smelted material in the processing plant. Now prepaid, worth mentioning, they increased by 3.6 million between quarters, and this is mainly due to operational spares and supplies being stocked up for winter and down payments on mining equipment that we are acquiring as we transition from contractor-operated mining to owner-operated mining, which we will discuss in more detail later in the presentation. Change in loan payable, you can see there in Q3, which is our RCF facility, is due to accrued interest, no drawdowns or payments made on the facility in the quarter. And including cash balance of 55.3 million at quarter end, total assets amount to 339 million, and very healthy 79% equity ratio. Now the last four lines on the slide are connected to our investment in the GARDEC joint venture. Exploration activities continued there in Q3 and the cash balance sits at 2.8 million at quarter end compared to 3.6 million at the end of Q2. Amarok's receivable balance from GARDEC increased and amounted to 8.4 million at quarter end. And as a reminder, this receivable represents allocated G&A costs to manage the joint venture and this will be converted to shares in GARDAQ in 2026. On liquidity and cash movements, at the end of the quarter our cash balances are sitting at 55.3 million as mentioned before. Adding undrawn credit facilities of 8.9 million and subtracting payables of 18.8 results in 45.4 million in liquidity compared to 75.1 million at the end of Q2. And this reflects our main cash flow movements in the quarter in relation to the NALMAC project, a total of 23.9 million in cash outlay in the quarter. This is mainly attributable to additions in capital assets of 20.2 million. as well as increase in prepaids that was mentioned before, as well as metals inventory. And additions to capital assets represents cash outlay, not only due to construction, but also mine development, as well as capitalized cap costs.