Adriatic Metals (LON:ADT1) (ASX:ADT, OTCQX:ADMLF) booked a loss of US$8.8mln in the six months to June 2022.
The company had more than US$84mln cash in the bank as it continued to deploy funds towards the construction and development of the Vares project in Bosnia & Herzegovina.
Adriatic secured a US$142.5mln debt funding package for Vares in October of last year and is fully funded into production.
During the period, the appreciation of the US dollar against the euro reduced euro-denominated construction costs in dollar terms, and had a mitigating impact on inflationary pressures faced.
First production is scheduled for the second quarter of next year, with overall construction costs expected to ring in at US$168mln. The NPV is set at over a billion dollars, with the internal rate of return ringing in at a robust 134%.
Off-take agreements are in place to sell zinc concentrate to Boliden, Trafigura and Transamine, and silver-lead concentrate to Glencore (LON:GLEN) and Transamine.