2022 Full Year Financial Results and Update

·16 min read

TORONTO, ON / ACCESSWIRE / March 31, 2023 / Amaroq Minerals Ltd. ("Amaroq" or the "Corporation" or the "Company") (AIM:AMRQ)(TSXV:AMRQ)(NASDAQ:AMRQ), an independent mine development company with a substantial land package of gold and strategic mineral assets covering an area of 7,866.85 km2 in Southern Greenland, its Q3 2022 financials and provides an update on its exploration and development activities.

The Financial Statements and the accompanying Management Discussion and Analysis are available on the Corporation's website at www.amaroqminerals.com and will be filed under the Corporation's SEDAR profile at www.sedar.com later today. All figures are in Canadian dollars unless otherwise noted.

A remote presentation for sell-side analysts and investors will be held remotely today, at 15:00 BST, followed by an opportunity to ask questions.

Analysts and investors who wish to participate in the webcast are requested to register via the link here: https://brrmedia.news/AMRQ_FY22

FY 2022 Highlights

  • Rebrand from AEX Gold to Amaroq Minerals to reflect incorporation of strategic minerals portfolio and focus on Greenland.

  • Completion of £30m Capital Fundraising (circa C$46.4 million) in London and Iceland to accelerate development of the Company's precious metals portfolio.

  • Established joint venture with strategic investor ACAM for the exploration and development of Amaroq's strategic mineral assets and receipt of initial £18 million funding (circa C$28.5 million), expected to close in April 2023.

  • Listing of Icelandic Depository Receipts on the Nasdaq First North Growth Market in Iceland.

  • Updated Nalunaq Mineral Resource Estimate (MRE), prepared by SRK Consulting (UK) Limited and announced on September 6, 2022 and reported in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards on Mineral Resources and Mineral Reserves (May 2014), resulting in a Inferred Mineral Resource of 355.0 Kt @ 28.0 g/t Au for 320 Koz gold , and confirming the project within the top 2% of global deposits in terms of grade globally. Doubling of the size of the footprint of the Valley Block following 2022 Nalunaq exploration results.

  • Completion of most active exploration programme to date, with drilling across three projects, mineralisation expansion and discovery of new copper/gold/molybdenum mineralisation targets, in addition to completion of two new geophysical surveys in preparation for the 2023 exploration season.

Post-period Highlights

  • Non-binding term sheets signed for US$49.5 million senior secured financing package, announced in March 2023, to bring forward production at Nalunaq, with completion expected in the coming months.

  • Preparation for 2023 field season highly advanced with additional drill rig in transit as well as other consumables in readiness for the programme to commence in early May.

  • Contracts and quotes in place for camp upgrades, fuel storage, on-site assaying laboratory, and all equipment and facilities required for trial mining and processing.

  • Strengthened the team with senior hires including Nalunaq Project Director Axel Schultz, a professional engineer with over 30 years' experience in the mining industry, including surface and underground equipment, construction, installations, EPC, financial and project management (EPCM).

FY 2023 Outlook

Gold Projects

  • Nalunaq: Further project development to commence in May 2023 with resource drilling along strike from the initial mining face. Site and mine preparation activities will commence shortly ahead of commencing new trial mining operations within the Mountain Block from 2024.

  • Vagar Ridge: Additional data collection and further geological mapping and sampling aimed at constructing a robust geological and mineralisation model to inform future exploration. Ground preparation and drill readiness preparations will occur in 2023 ahead of the 2024 season.

  • Nanoq: Following 2022 geophysical work, the results of which are expected to be published in Q2, surface exploration will be conducted to evaluate additional structural targets as well as site preparation ahead of initial drilling in 2024.

Strategic Minerals

  • Sava Copper Belt:

    • Expansion of drilling and geological mapping programmes across observed mineralisation at Sava to two drill rigs guided by external Iron-Oxide Copper Gold (IOCG) experts.

    • Incorporation of North Sava licence and additional targets in 2023 programme.

    • Detailed airborne geophysical survey across Kobberminebugt licence area.

  • Stendalen: Conducting of detailed magnetotellurics (MT) geophysical survey across the extension of layered intrusion, ahead of a deep stratigraphic drillhole to intersect the known Titanium and Vanadium mineralisation as well as potential Nickel sulphide mineralisation.

  • Saqqaa Dyke: Concentrated drilling campaign to be conducted from the valley floor to intersect the platinum group element hosting ultramafic dyke along strike from outcropping mineralisation.

  • Paatusoq: Planned reconnaissance exploration programme across Paatusoq and previously identified targets to define areas of potential economic Rare Earth and Niobium mineralisation.

Operational priorities

  • Amaroq plans to conduct prefeasibility studies on renewable energy potential to determine the feasibility of using hydropower to supply Nalunaq and the nearby South Greenland community.

  • Amaroq continues to work with ABD Solutions on the potential integration of autonomous vehicles at Nalunaq, with proposals for the design and offsite construction of an operations centre and associated infrastructure expected in the next twelve months.

  • The Company plans to work with a Group Purchasing Organisation supply chain management partner to develop a strategic execution model for operating effectively in remote and logistically challenging conditions.

Eldur Olafsson, CEO of Amaroq, commented:

"2022 was a transformational year for Amaroq in terms of the repositioning of our business. We completed our most active exploration program to date, and with our partners we are planning an even more aggressive programme for this year, drilling seven targets across our gold and strategic minerals portfolio. We continue to carry out impactful surface sampling and geophysical studies, uncovering additional significant targets.

"Following our recent financing announcement, we now have the funding in place to bring Nalunaq onstream, and I look forward to providing updates as we progress with our development plans.

"We remain committed to being a responsible operator in Greenland, and a partner to our local community. We are now establishing the potential to build up hydropower infrastructure near our sites, both to power our operations and to provide renewable energy to our local community for the future."

Selected Financial Information

The following selected financial data is extracted from the Financial Statements for the three and nine months ended December 31, 2022.

Financial Performance

Three months ended December 31

Year ended

December 31









Exploration and evaluation expenses





General and administrative





Net loss and comprehensive loss





Basic and diluted loss per common share





Financial Position

As at December 31, 2022


As at December 31, 2021


Cash on hand



Total assets



Total current liabilities



Shareholders' equity



Working capital



Qualified Person Statement

The Mineral Resource Estimate was prepared by Dr Lucy Roberts, MAusIMM(CP), Principal Consultant (Resource Geology), SRK Consulting (UK) Limited., an independent Qualified Person in accordance with the requirements of National Instrument 43-101 ("NI 43-101"). Dr Roberts has approved the disclosure herein.

The technical information presented in this press release has been approved by James Gilbertson CGeol, VP Exploration for Amaroq Minerals and a Chartered Geologist with the Geological Society of London, and as such a Qualified Person as defined by NI 43-101.

Use of a Standard

The resource information included within this announcement is reported in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards on Mineral Resources and Mineral Reserves (May 2014) as required by CIM Definition Standards.


Amaroq Minerals Ltd.
Eldur Olafsson, Executive Director and CEO
+354 665 2003

Eddie Wyvill, Investor Relations
+44 (0)7713 126727

Stifel Nicolaus Europe Limited (Nominated Adviser and Broker)
Callum Stewart
Varun Talwar
Simon Mensley
Ashton Clanfield
+44 (0) 20 7710 7600

Panmure Gordon (UK) Limited (Joint Broker)
John Prior
Hugh Rich
Dougie Mcleod
+44 (0) 20 7886 2500

SI Capital Limited (Joint Broker)
Nick Emerson
Charlie Stephenson
+44 (0) 1483 413500

Camarco (Financial PR)
Billy Clegg
Elfie Kent
Charlie Dingwall
+44 (0) 20 3757 4980

For Company updates:

Follow @Amaroq_minerals on Twitter

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Further Information:

About Amaroq Minerals

Amaroq Minerals' principal business objectives are the identification, acquisition, exploration, and development of gold and strategic metal properties in Greenland. The Company's principal asset is a 100% interest in the Nalunaq Project, an advanced exploration stage property with an exploitation license including the previously operating Nalunaq gold mine. The Corporation has a portfolio of gold and strategic metal assets covering 7,866.85km2, the largest mineral portfolio in Southern Greenland covering the two known gold belts in the region. Amaroq Minerals is incorporated under the Canada Business Corporations Act and wholly owns Nalunaq A/S, incorporated under the Greenland Public Companies Act.

Inside Information

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No. 596/2014 on Market Abuse ("UK MAR"), as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018, and Regulation (EU) No. 596/2014 on Market Abuse ("EU MAR").





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Amaroq Minerals Ltd., Thursday, March 30, 2023, Press release picture
Amaroq Minerals Ltd., Thursday, March 30, 2023, Press release picture

Amaroq Minerals Ltd.


For the years ended December 31, 2022 and 2021

Independent Auditor's Report

To the Shareholders of Amaroq Minerals Ltd.


We have audited the consolidated financial statements of Amaroq Minerals Ltd. and its subsidiaries (the Group), which comprise the consolidated statements of financial position as at December 31, 2022 and 2021, and the consolidated statements of comprehensive loss, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2022 and 2021, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with International Financial Reporting Standards (IFRSs).

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled our other ethicalresponsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit mattersare those mattersthat, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Impairment of Capital Assetsand Construction in Progress (CIP)

Description of the key audit matter

Capital assets and CIP are the most significant non-cash item on the Company's consolidated financial statements. The net book value of these items is $13.9M for the year ended December 31, 2022. The amountis material and the assessment of whether there areindicators of impairment is subject to professional judgment. CIP is subject to an annual impairment test since the assets are not yet availablefor use. Determination as to whetheror not there is an impairment relating to an asset involves significant judgement about the estimated replacement cost and future plans for these assets.

BDO Canada s.r.l./S.E.N.C.R.L., une société canadienne à responsabilité limitée/société en nom collectif à responsabilité limitée, est membre de BDO International Limited, société de droit anglais, et fait partie du réseau international de sociétés membres indépendantes BDO.

BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms.

The Group's accounting policy on impairment of non-financial assets is disclosed in Note 2.7 to the consolidated financial statements.

How the key audit matter was addressed in the audit

Our approach in addressing this matter included the following procedures, among others:

  • Assessing management's determination of whether indicators of impairment exist.

  • Evaluating evidence regarding management's conclusion over the impairment indicators.

  • Testing the impairment calculations including the replacement cost of CIP. We assessed the reasonableness of the replacement cost estimates used in the impairment models. We also performed sensitivity analysis around the key drivers of the replacement cost.

  • Reviewing the adequacy of the disclosures in the financial statements, including disclosures related to significant judgments and estimates.

Other Information

Management is responsible for the other information. The other information comprises:

  • The information, other than the consolidated financial statements and our auditor's report thereon, included in the Annual Report, and

  • The information included in the Management's Discussion and Analysis.

Our opinion on the consolidated financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

We obtained the Management's Discussion and Analysis prior to the date of this auditor's report. If, based on the work we have performed on this other information, we conclude that there is a material misstatement of this other information, we are required to report that fact in this auditor's report. We have nothing to report in this regard.

The Annual Report is expected to be made available to us after the date of the auditor's report. If, based on the work we will perform on this other information, we conclude that there is a material misstatement of this other information, we are required to report that fact to those charged with governance.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRSs, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group's financial reporting process.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

  • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

  • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.

  • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

  • Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.

  • Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

  • Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters,the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor's report is Anne-Marie Henson.

Amaroq Minerals Ltd., Thursday, March 30, 2023, Press release picture

Montréal, Québec
March 30, 2023

(1) CPA auditor,public accountancy permit No. A129869

PLEASE SEE THIS LINK FOR THE REST OF THE RELEASE: https://storage.googleapis.com/accesswire/media/746907/AMRQ-FS-2022-12-31-FINAL.pdf

SOURCE: Amaroq Minerals Ltd.

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