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