Are there any regulatory or permitting challenges that could delay development of the newly identified pegmatites?

Regulatory & permitting outlook

The expansion of the Ivisaartoq lithium pegmatite field sits on Brunswick’s existing Nuuk licence – a permit that was already granted for the original 2024 discovery. In Greenland, the mining code requires a three‑stage permitting process (environmental impact assessment, mining licence and a final “operating” licence) and, for large lithium projects, a comprehensive water‑use and climate‑impact review. Because the new pegmatites simply extend the known trend along the same strike, the company can largely rely on the baseline studies already filed for the Nuuk licence. However, the increase in resource size (now a 2 km strike) will likely trigger a re‑submission of the environmental impact assessment and a public consultation period with the Greenlandic government and local Inuit communities. Historically, Greenland’s government has been supportive of lithium development, but it maintains a strict “no‑go” on projects that could jeopardise sensitive habitats or fisheries. This means that any significant expansion of the mine footprint, road building or water‑diversion works could add a 3‑6 month lag while the Ministry of Mineral Resources reviews the amended plans.

Trading implications

• Short‑term risk: The market will price in the near‑term permitting uncertainty. If the company announces a re‑filing of the EIA or a new consultation window, expect a modest‑to‑moderate sell‑off (5‑8 % on‑side) as investors add a timing premium to the stock.
  
• Long‑term upside: Assuming the permitting process proceeds without major objections, the expanded resource dramatically upgrades the spodumene‑grade reserve base, which should lift the enterprise value (EV) multiple on the next cash‑flow model. The upside is already baked into the recent rally (sentiment 80), so the stock may be over‑priced until the permitting milestone is hit.
  
• Actionable play: Keep the position tight‑‑‑stop around the current 2‑week low (≈ 3 % below the recent high) until the company releases an update on the revised environmental filing or government decision (expected in Q4 2025). A confirmed green‑light would clear the timing risk and set the stage for a breakout to the $1.30‑$1.45 range on the back of the upgraded resource model. Conversely, a setback would justify a partial exit or defensive hedging.