Second Interim Financial Results to 31 July 2026

Amigo Resources posts heavy losses despite pilot gold output and capital raise; commercial ramp-up pending.

What the company is saying

Amigo Resources frames its narrative around a completed transformation into an African-focused gold and rare earth mining business, emphasizing the extinguishment of all borrowings via conversion of 125,000,000 shares at 0.3p per share and a capital raise of £3.07 million (US$4.1 million) at a 633% premium to prior notes. The company highlights operational milestones: mineral and processing licenses granted for Kabete and Mojimoto in Tanzania, pilot gold production reaching 5kg in July 2026, and the arrival of commercial-scale processing equipment for imminent installation. The announcement details a 51% interest in Kabete and 50.49% in Mojimoto, as well as a new 51% stake in the Musensi Hill rare earth project. CEO Nathan Boom’s recent appointment is presented as part of a leadership refresh. The tone is confident, focusing on near-term commissioning and medium-term ambitions for resource definition and regional expansion, while downplaying the current lack of declared resources and ongoing losses.

What the data suggests

The company reported a loss of US$4.5 million for the ten months ended 31 July 2026 (US$4.0 million attributable to Amigo), and a loss of US$2.4 million (US$2.2 million attributable) for the most recent four months, with revenue of only US$70,000 from Kabete's initial gold sales. Cash and cash equivalents stood at US$1.1 million, with trade and other receivables at US$1.9 million (including US$1.0 million in share subscription proceeds received after period end). Gross proceeds from the June subscription totaled £3,073,634.87 (US$4.1 million), with £753,000 received after period end. The company invested US$563,000 in plant and US$157,000 in equipment advances, and recognized a US$487,000 provision for mine rehabilitation. Operationally, pilot gold production reached 1kg in June and 5kg in July 2026, but no JORC-compliant resource or reserve has been declared for any project. Kabete and Mojimoto have received all necessary Tanzanian licenses, and commercial-scale plant installation is scheduled for Q4 2026. Early-stage exploration continues at Musensi Hill, with notable geochemical anomalies but no resource estimate. The data shows high capital intensity, persistent losses, and minimal revenue, with future value dependent on successful commissioning and resource definition.

Analysis

The announcement is upbeat, highlighting capital raises, debt extinguishment, and operational milestones such as pilot gold production and license grants. However, the majority of the company's claims about future value—commercial-scale expansion, resource definition, and regional integration—are forward-looking and contingent on successful commissioning, further exploration, and regulatory approvals. Realised progress is limited to small-scale pilot gold production (5kg in July 2026, US$70,000 revenue) and the completion of capital raises, while losses remain substantial (US$4.5 million for ten months). The company is investing heavily in plant and equipment, but immediate earnings impact is minimal, and no JORC-compliant resource or reserve has been declared. The narrative inflates the significance of early-stage technical results and future plans, while the actual financial and operational base remains modest and loss-making.

Risk flags

• ●The company is loss-making, with a US$4.5 million loss over ten months and only US$70,000 in revenue, indicating a high cash burn and dependence on continued external funding until commercial production is achieved.
• ●No JORC-compliant resource or reserve has been declared at Kabete, Mojimoto, or Musensi Hill, so the scale and economic viability of the projects remain unproven despite pilot production and exploration results.
• ●Operational execution risk is elevated, as the transition from pilot to commercial-scale gold production depends on timely installation, commissioning, and ramp-up of new processing equipment in Q4 2026.
• ●The company’s capital raise, while significant, leaves only US$1.1 million in cash at period end, with substantial future investment required for plant, equipment, and ongoing exploration, raising the risk of future dilution or funding shortfalls.
• ●Forward-looking statements about regional expansion, resource definition, and rare earths production are highly contingent on successful near-term milestones and regulatory approvals, with no guarantee of realization.

Bottom line

Amigo Resources has eliminated debt and raised US$4.1 million at a premium, but remains deeply loss-making with only modest pilot gold output and minimal revenue to date. All Tanzanian licenses are in place and commercial-scale plant installation is scheduled for Q4 2026, but no mineral resource or reserve has been declared, making future value highly speculative. The company’s cash position is modest relative to its capital needs, and further funding may be required if commercial ramp-up is delayed or underperforms. Early-stage exploration at Musensi Hill shows promising geochemical signatures but is far from economic assessment. The most important takeaway is that near-term value hinges on successful commissioning and ramp-up of gold production at Kabete and Mojimoto; until then, the investment case is high risk and highly leveraged to execution.

Announcement summary

(LSE:AMGO) Amigo Resources PLC announced its second interim financial results for the ten months ended 31 July 2026, following its transformation into an African-focused gold and rare earth mining company with principal activities in Tanzania and Mauritania. The company completed the conversion of convertible loan note tranche 2 into 125,000,000 shares at a conversion price of 0.3p per share, extinguishing all borrowings. Amigo raised £3,073,634.87 (US$4.1 million) gross proceeds through a subscription at 2.2p per share, with £753,000 received after period end, representing a 633% premium to the mandatory convertible loan notes issued in November/December 2025. The company’s enlarged issued share capital now comprises 1,329,798,836 ordinary shares. Amigo holds a 51% interest in the Kabete Gold Project in Tanzania, with approximately 159km² of confirmed licence area, and a 50.49% interest in the Mojimoto Gold Project in Tanzania's Mara Region. Mineral licences and Processing Centre Licenses for both Kabete and Mojimoto were granted by the Government of Tanzania, enabling operational and exploration activities and supporting the establishment of scalable mineral processing infrastructure. At Kabete, 167 drill holes totaling approximately 21,400 metres have been completed historically, and 1,500 soil samples were received in June 2026 with peak gold of 1.03 ppm (1,030 ppb). At Mojimoto, 624 samples reported gold in the range of 20-580 ppb. Gold production from gravity-separation pilot plants at Kabete and Mojimoto reached 1kg in June 2026 and ramped up to 5kg in July 2026. After period end, commercial-scale expansion at both projects was accelerated, with major processing equipment arriving on-site for installation, assembly, and commissioning during Quarter 4, 2026. Amigo and AK Corporation established a UK-Singapore-Tanzania structure with 51% and 49% interests, respectively, over a 17.73 km² rare-earth element licence package in south-west Tanzania, including Prospecting Licences PL 12668/2024, PL 12667/2024, and PL 12674/2024. Initial XRF screening at Musensi Hill reported potassium oxide of 9-11.7%, calcium oxide up to 15.1%, phosphorus pentoxide up to 7.29%, strontium up to 7,000 ppm, rubidium above 500 ppm, zirconium 400-900 ppm, iron oxide up to 19%, and vanadium commonly 300-600 ppm (one result at 2,600 ppm). As of 31 July 2026, the Group held cash and cash equivalents of approximately US$1.1 million and trade and other receivables of approximately US$1.9 million, including US$1.0 million for share subscription proceeds received after period end. Cash received from share issues was US$3,094,000, with a further £753,000 of the June subscription receivable at period end. The Group invested US$563,000 in plant and paid US$157,000 in advances for capital equipment. A provision of US$487,000 was recognized for mine site rehabilitation. The Group reported a loss of US$2.4 million for the four months ended 31 July 2026 (attributable to Amigo: US$2.2 million) and a loss of US$4.5 million for the ten months ended 31 July 2026 (attributable to Amigo: US$4.0 million). Revenue for the four months was US$70,000, all from Kabete's first gold sales. Administrative expenses were US$2,031,000, including a non-cash share-based payment expense of US$269,000 for shares awarded to a nominee of the CEO. Exploration and evaluation expenditure was US$261,000. Nathan Boom was appointed Chief Executive Officer from 17 July 2026. The company is executing a phased, milestone-driven rollout, with short-term priorities including the installation and commissioning of commercial-scale processing plants at Kabete and Mojimoto, ramping up gold operations, entering long-form agreements with STAMICO, and completing the acquisition of the Kamiesberg Project, subject to conditions precedent. Medium-term priorities include defining a JORC-compliant mineral resource estimate for Kabete and Mojimoto, evaluating strategic partnerships, and assessing further acquisition opportunities. Long-term goals focus on regional replication and integration across East Africa.

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