Panmure Liberum has revised its price target for Amaroq Minerals from 104 pence to 89 pence, citing factors like updated financial models and recent share dilution from convertible note conversions.
Despite the lowered target, Panmure reaffirmed its "buy" rating, pointing to substantial progress at the company’s Nalunaq gold mine in Greenland.
The firm noted that Nalunaq is on track for its first gold pour by the end of 2024, with trial mining and underground conditions showing strong early signs of support for sustainable operations.
Panmure’s report highlighted that the Nalunaq project, which sits on Greenland's largely untapped Nanortalik Gold Belt, could serve as a foundation for further mining development.
The analysts were encouraged by the stability and quality of Nalunaq’s existing mine infrastructure, including a network of access roads and a deepwater fjord that could support low-cost ore transportation.
Amaroq's plans for phased, gravity-based processing at Nalunaq have also been noted as an economically favourable approach, particularly in light of Nalunaq’s high gold grades.
Beyond Nalunaq, Amaroq holds an extensive portfolio of mineral licenses across Greenland, spanning gold and other valuable minerals such as copper and rare earth elements.
Panmure views this broader asset base as a strategic advantage, with Greenland's sparse population and deepwater ports potentially supporting efficient mining and transport operations.
In afternoon trading, the shares were off 1% at 79p.