MIDAS SHARE TIPS UPDATE: Amaroq Minerals proves its mettle as it taps Greenland’s resources

Greenland is one of the largest countries in the world – twice the size of Britain, France and Germany combined.

The island is sparsely populated and covered in snow most of the year, but can be an inhospitable place for locals and visitors alike.

But Greenland is also home to vast, untapped reserves of valuable minerals. Eldur Olafsson, a geologist turned entrepreneur, is on a mission to convert some of these resources into commercial mines that will benefit investors and local communities.

The first signals indicate that the 38-year-old Icelander is making good progress. Have founded Amaroq Minerals in 2017 he acquired assets spanning almost 4,000 square kilometers of the country, making this AIM-listed company the largest mineral license holder in Greenland.

Exploration is well underway and the company expects to commence production at its flagship gold mine, Nalunaq, later this year.

Midas recommended Amaroq in June 2022 at 44 hours. Olafsson and his team have worked hard since then and the shares have risen more than 60 percent to 72p.

There have been extensive drilling campaigns for copper, nickel, gold and other valuable metals, and money has been raised so the company can continue its exploration and move towards commercial production.

A processing unit should be up and running in Nalunaq later this year, followed by the first gold production. Olafsson will start slowly, but plans to create a facility that can supply 50,000 ounces of gold per year.

The results of last year’s drilling campaign are imminent and Amaroq’s supporters are very optimistic. Millions of years ago, Greenland was part of a landmass that stretched from North America to the Scandinavian countries, once bordering Canada to the west and Sweden to the east.

Today, Canada is home to Voisey’s Bay, one of the world’s largest copper mines, while northern Sweden boasts the world’s largest underground iron ore mine, Kiruna, also a happy hunting ground for rare earth minerals.

That bodes well for Amaroq and its shareholders. The company has money in the bank to cover exploration costs and has built an enthusiastic following among Scandinavian investors. The company is listed on the Icelandic stock market after joining Aim.

Brokers expect the business to generate almost £9m in revenue by 2024, rising to £56m in 2025 with profits of £11m. In a show of confidence, Olafsson recently spent nearly £45,000 of his own money on Amaroq shares, taking his stake to 3.45 percent.

Midas judgment: Too often, mining seems to embody the triumph of hope over experience. But Amaroq seems to be delivering results. The company has already proven its worth and updates this year should give the shares a further boost. At 72 cents, investors may want to save some profits, but they shouldn’t be completely sold out. Olafsson is committed to making this company successful and the long-term prospects are good.

Traded on: GOAL ticker: AMRQ Contact: amaroqminerals.com or Camarco on 020 3 989 5712