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Adriatic Metals to reach commercial production this month

Published 12/12/2024, 08:04
Updated 12/12/2024, 08:40
© Reuters.  Adriatic Metals to reach commercial production this month
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Adriatic Metals (LON:ADT1) PLC (LSE:ADT1, ASX:ADT, OTCQX:ADMLF) said it is now mining from two stopes at Rupice silver mine in Bosnia & Herzegovina with the processing plant at Vares also running 24 hours a day.

As a result, commercial production is expected to be achieved this month and continue into January 2025, added the statement.

Total (EPA:TTEF) ore mined in 2024 to the end of November reached 129,194 tonnes( t) with approximately 40,000t expected in December.

Guidance for 2025 remains unchanged at 750,000 - 800,000t of ore mined, said the statement.

Laura Tyler, chief executive, added: “ Fourth quarter 2024 will be a record quarter of production at the Vares Silver Operation and we are confident commercial production levels will be reached in the coming weeks.

“We are also pleased to have bolstered our cash position through a concentrate prepayment arrangement with Trafigura.

“Additionally, we would like to express our gratitude to our long-term partner, Orion Mine Finance, who have agreed to reschedule our first quarterly debt repayment to the end of March 2025."

Financier Orion has agreed to reschedule the first quarterly debt repayment of approximately US$19 million from 31 December 2024 to 31 March 2025, while trading giant Trafigura has signed a US$25 million concentrate prepayment deal.

As of 30 November 2024, Adriatic said it held a cash balance of US$23 million and approximately US$8 million in receivables and concentrate inventory.

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