Sign In
30 Jan 2024 07:00
30 January 2024
Adriatic Metals PLC
("Adriatic Metals" or the "Company")
QUARTERLY ACTIVITIES REPORT
For the three months ended 31 December 2023 ("Q4" or "Quarter")
Q4 HIGHLIGHTS
Vares Silver Project, Bosnia & Herzegovina:
? Focus on operational readiness across all operations.
? Development increased 62% compared to H1 2023, cycle times reduced 8% quarter-on-quarter demonstrating improvements of the Accelerated Development Action Plan.
? Commissioning of the Vares Processing Plant is progressing well. First concentrate production on track for in Q1 2024.
? Road construction, refurbishment of the railhead and railway line and all other project-related infrastructure has been completed.
? Staff headcount increased to 296, contractor headcount totalled 329 at the end of Q4.
Exploration
? The updated ore reserve estimate for Rupice and Rupice Northwest (RNW) was announced on 20 December 2023: 13.8Mt at 187g/t Ag, 5.2% Zn, 3.3% Pb, 1.4g/t Au, 0.5% Cu and 0.2% Sb.
- Contained ore reserve tonnes have increased by 89% since the previous Ore Reserve estimate stated as at July 2021.
- The significant increase in ore reserves underpins an 18-year mine life which now extends until 2041 based on nominal throughput capacity of 800,000tpa.
? Exploration drilling continued to progress well in Q4, with a further drilling and an updated MRE scheduled for H1 2024.
? Assay results on regional targets such as Droskovac brownfield development project, expected in H1 2024.
Finance Update
? Final Project cost estimate is $188.9m.
? Cash balance at 31 December 2023 of $44.8m.
? Fourth and final $30m tranche of senior secured debt ("Senior Secured Debt") from Orion Mine Finance ("Orion") was drawn down on 23 January 2024. The total debt of $120m now received by the Company.
? The first debt repayment is scheduled for 30 December 2024.
? 97% of capital awarded or pending award.
? Adriatic remains fully funded for plant completion and ramp up.
? All $ amounts are US dollars.
Paul Cronin, Adriatic's Managing Director and CEO, commented:
"We are pleased to report on the progress made over a hugely productive and busy quarter. The team have made substantial advancements across all areas of the Vares Silver Project, from mine development to the processing plant, and we are gearing up for the initiation of all operations in the first quarter of 2024. Concurrently all infrastructure projects are now completed, and we are very proud that the first train has travelled down the newly refurbished railway line from Podlugovi to Vares.
Additionally, we have been very successful in our exploration efforts, and the updated Ore Reserves at Rupice and Rupice Northwest have increased the life of mine from 10 to 18 years. We are aiming to increase this further with a continuation of our successful exploration programmes to date. We have also announced our production guidance for the coming years, and we remain firmly committed to increasing future production."
Click on, or paste, the following link into your web browser to view the announcement in full:
http://www.rns-pdf.londonstockexchange.com/rns/2898B_1-2024-1-29.pdf
Follow the stocks
