Adriatic Metals (ASX:ADT), a company focused on high-grade precious and base metals, recently shared its Q3 2024 update, detailing advancements at its flagship Vares Silver Operation in Bosnia and Herzegovina. The company reported a 123% increase in ore milling compared to the previous quarter, alongside ramping up underground development by 13%. Production remains on track to reach commercial levels by the end of 2024.
This is despite several challenges. A subcontractor’s vehicle accident in August resulted in a fatality, leading to immediate safety reviews and enhanced contractor management protocols. Additionally, severe storms in early October caused damage to the railway connecting Sarajevo to Ploce Port, prompting a temporary shift to trucking concentrates by road until the railway is repaired.
Adriatic's CEO, Laura Tyler, noted, “Our operational momentum continues, and the successful completion of key milestones puts us in a strong position as we approach commercial production. We are committed to addressing any challenges swiftly to maintain our schedule.”
The company’s financial position remains solid, with a cash balance of $23.8m as of 30 September 2024. An additional undrawn debt facility of $25m from Orion Mine Finance provides further financial flexibility. Recent updates also include receiving permits for Phase I of the Veovaca Tailings Storage Facility, enabling long-term production continuity.
Looking ahead, Adriatic is set to achieve full-year production guidance of approximately 180,000 tonnes, with plans to scale up to 750,000-800,000 tonnes in 2025.
