Amaroq Minerals (LON:AMRQ, TSX.V:AEX), is the topic of conversation with Co-fund manager, Gervais Williams of Miton UK Microcap Trust plc as part of a wide-ranging interview on smaller companies in the portfolio of his UK investment trust.
DirectorsTalk asked:
MINI has increased its holding in Gold mining stocks and you mentioned Amaroq Minerals in our last interview. Can you tell us more about this investment?
Gervais Williams of Premier Miton commented:
Amaroq is a relatively new holding in the MINI portfolio. It’s in Greenland and what we like about Greenland is that it’s not in some of the more contentious areas. It’s not part of the Russian area, it’s not part of the uncertainty about some of the African countries, not that they’re bad countries, but sometimes it’s difficult to get cash in and out, and so you can’t get the full cash payback.
The great advantage of Greenland is that it’s close to the European area and the location is a former gold mine so they can actually build on the current foundations. There’s quite a lot of gold there, which they can bring it into production. You’ve got other quite substantial assets to bring into production as well.
This Nalunaq mine could be a really quite high, very profitable mine in due course. Clearly, they’re not at that level yet. The share price has already appreciated. In December, it was only about £150 million market cap and it’s already £195 million now so it’s been moving on.
These kinds of companies, as I say, are just very uncorrelated with the economic cycle and we like that for our clients.
Amaroq Minerals Ltd (AIM, TSXV, NASDAQ Iceland: AMRQ) is focused on the identification, acquisition, exploration and development of gold properties in Greenland. The company has a portfolio of gold and strategic metal assets covering 7,615.85km2, the largest mineral portfolio in Southern Greenland covering the two known gold belts in the region.
