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Adriatic Metals PLC on Friday said that nearly half of its Vares project is now complete as it navigated supply chain difficulties.
Adriatic Metals is a mining company. Its key assets include the Vares silver project in Bosnia & Herzegovina and the Raska zinc-silver project in Serbia.
The Vares project as a whole is 45% complete with the Rupice surface infrastructure works, a part of the Vares project, having advanced ‘significantly’ over the summer. The lower decline at Rupice is 210 metres long while the upper decline is 100 metres.
The company noted that the ‘majority’ of long lead items and equipment orders are expected on schedule, although supply chain disruption has pushed first concentrate production to the third quarter of 2023 from the second quarter. Adriatic Metals says it retains ‘sufficient working capital reserves’ to offset this ‘slight delay.’
The company said its final project cost estimate has increased marginally to $173 million from $170 million due to increases in engineering costs, plant and electrical equipment. It said 72% of its capital was now committed and that it retained a cash balance of $66 million.
Managing Director and Chief Executive Officer Paul Cronin said: ‘I am delighted to report excellent construction progress at our Vares project. The summer has seen underground development accelerate as well as the commencement of construction of both the process plant buildings and haul road.
‘Given the myriad of supply chain, inflationary and currency challenges globally, I am enormously proud of our team and their absolute determination to deliver the Vares project successfully in 2023.’
Shares in Adriatic Metals were trading 1.9% higher at 124.00 pence each on Friday afternoon.
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