REG - Adriatic Metals - Operations Update

Adriatic MetalsAnnouncement

31/03/2025 07:15

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RNS Number : 8665C  Adriatic Metals PLC  31 March 2025

31 March 2025

Adriatic Metals PLC

Operations Update

 

Adriatic Metals PLC (ASX:ADT, LSE:ADT1, OTCQX:ADMLF) ("Adriatic" or the
"Company") is pleased to provide an update on production activities at the
Vares Silver Operation in Bosnia and Herzegovina.

 

Highlights

 

Processing

•   Record quarter of processing throughput of 68kt ore milled in Q1 2025
vs 47kt ore milled in Q4 2024, an increase of 43% as production continues to
ramp up.

•   Production of approximately 1.3Moz AgEq(1) vs 0.9Moz AgEq in Q4 2024.

•   Milled tonnage lower than expected due to tailings filtration cycle
time issues (being resolved with debottlenecking modifications and additional
filter plates from Metso) and tailings management as operations transfer from
the temporary Tailings Storage Facility ('TSF') to the Veovaca TSF.

•   Commercial production is expected in Q2, as road construction to the
Veovaca TSF was delayed due to finalising forestry access agreements. This has
now been resolved.

 

Mining

•   Mining operations proceeding well with 67kt ore mined in Q1 2025,
aligned with processing rates and stockpile management.

•   Underground development metres increased over 7% from Q4 2024.

•   Current ore stockpile of approximately 53kt at 316g/t Ag, 2.2g/t Au,
4.7% Zn, 3.8% Pb.

•   Construction commenced at the paste backfill plant, with completion
expected in Q4 2025.

•   In March the build-up of the paste backfill plant commissioning
stockpile at Rupice commenced. This is the first time tailings have been
backhauled from the Vares Processing Plant to Rupice Mine.

 

Tailings Storage

•   Construction of the Veovaca TSF was completed in March, with necessary
regulatory permits issued, and initial tails deposition will occur in the
first week of April.

•   The direct access road from the Vares Processing Plant to the Veovaca
TSF is now under construction following minor delays for use in Q2, with an
alternative route currently in use.

 

Corporate

•   Record quarterly sales of $33m, an increase of 23% from Q4 2024.

•   First debt repayment of $20m made to Orion Mine Finance ('Orion') on
28 March 2025.

•   Current cash balance of $75m, with current debt balance to Orion of
$135m.

•   Total net debt of $85m (including Trafigura prepayment), compared to a
net debt of $129m at the end of Q4 2024.

Laura Tyler, Managing Director & CEO of Adriatic, commented:

"We have achieved key operational and corporate milestones over the past few
months. Despite not achieving all the criteria for commercial production, the
Vares Silver Operation is now ramping up steadily and generating positive cash
flow.

 

I am also delighted that we have commenced our debt repayment to our
supportive finance partner, Orion. We remain in a solid financial position at
the end of Q1 with a cash position of $75m after making our first debt
repayment of $20m.

 

Our focus over the next few months is to actively debottleneck and optimise
our operations and continue to improve our performance. The process of ramping
up production to nameplate capacity of 0.8Mtpa remains on track for the second
half of 2025."

 

-ends-

Authorised by Laura Tyler, CEO and Managing Director of Adriatic Metals.

For further information please visit: www.adriaticmetals.com
(http://www.adriaticmetals.com/) ; email: info@adriaticmetals.com
(mailto:info@adriaticmetals.com) ,; or contact:

 Adriatic Metals PLC
 Klara Kaczmarek                                   Tel: +44 (0) 7859 048228

 GM - Corporate Development                        Klara.kaczmarek@adriaticmetals.com (mailto:Klara.kaczmarek@adriaticmetals.com)

 Burson Buchanan                                   Tel: +44 (0) 20 7466 5000
 Bobby Morse / Oonagh Reidy                        adriatic@buchanan.uk.com (mailto:adriatic@buchanan.uk.com)
 RBC Europe Limited
 Farid Dadashev / James Agnew / Jamil Miah         Tel: +44 (0) 20 7653 4000

 Stifel Nicolaus Europe Limited
 Ashton Clanfield / Callum Stewart / Varun Talwar  Tel: +44 (0) 20 7710 7600

 Sodali & Co
 Cameron Gilenko                                   Tel: +61 466 984 953

 

MARKET ABUSE REGULATION DISCLOSURE

The information contained within this announcement is deemed by the Company
(LEI: 549300OHAH2GL1DP0L61) to constitute inside ‎information for the
purpose of Article 7 of EU Market Abuse Regulation (EU) No. 596/2014 as it
forms part of UK domestic law by virtue of the European Union (Withdrawal) Act
2018, as amended. The person ‎responsible for arranging and authorising the
release of this announcement on behalf of the Company is Laura Tyler, CEO and
Managing Director.

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