Adriatic Metals (ADT) Q3 2024 earnings summary

Executive summary

• Achieved significant operational progress at the Vares Silver Operation, with ore mined and milled increasing sharply quarter-over-quarter; commercial production remains on track for Q4 2024.

• First stope at Rupice Mine brought into production, and underground development exceeded forecasted rates in August.

• CEO transition completed, with Laura Tyler appointed as Managing Director and CEO in October 2024.

• Fatal accident involving a subcontractor occurred in August; significant upgrades to contractor management and safety controls implemented.

Financial highlights

• Cash balance at 30 September 2024 was $23.8m, with an undrawn $25m debt facility available.

• $120m of senior secured debt drawn to date; first $18m repayment due 31 December 2024.

• Net cash outflow for the quarter was $36.4m, driven by property, plant, and equipment acquisitions and staff costs.

• Receipts from customers totaled $863,000 for the quarter.

• Estimated 1.3 quarters of funding available at current expenditure rates, with expectations of increased revenue and reduced expenditures in Q4.

Outlook and guidance

• Commercial production at Vares Silver Operation expected in Q4 2024.

• 2024 production guidance is approximately 180,000t mined; 2025 guidance set at 750,000-800,000t.

• No additional financing expected to be required due to anticipated revenue growth as production ramps up.