Adriatic Metals (ADT) H2 2024 earnings summary

Executive summary

• Transitioned from developer to producer at the Vareš Silver Project, achieving Q4 2024 production of 934,000 oz AgEq and 1,335,000 oz AgEq for 2024, with commercial production ramp-up on track for Q1 2025 despite severe weather disruptions.

• Rupice Mine and Vares Processing Plant now operate 24/7, with a year-end ore stockpile of approximately 61kt.

• Safety performance improved, with a Lost Time Injury Frequency Rate of 0.45 and Total Recordable Injury Rate of 1.05 in Q4.

Financial highlights

• Q4 2024 sales receipts totaled $27 million, with year-end cash at $21 million, rising to $46 million after a $25 million prepay from Trafigura in January 2025.

• Generated approximately $30 million in Q4 revenue, maintaining cash flow neutrality for four months and positioning for positive free cash flow in 2025.

• First debt repayment of ~$19 million to Orion Mine Finance due in Q1 2025; total financing facilities at quarter end were $142.5 million, fully drawn.

Outlook and guidance

• FY 2025 production guidance: 625,000–675,000 tons ore milled, 12,000–13,000koz AgEq, with production weighted to H2 2025.

• Commercial production (75% plant throughput for 21 days) expected in Q1 2025; nameplate capacity targeted for Q4 2025.

• 2026 forecast: 800,000–850,000 tons ore milled, 13,000–14,000koz AgEq at full nameplate capacity.

• All-in sustaining cost projected at $9–$10/oz AgEq, with 70% EBITDA margins at full run rate.

• Plant expansion to 1.3Mtpa throughput would require $25 million capex; technical study completed.