Adriatic Metals’ Q2 Silver Equivalent Production Rises 23% with 50% More Ore Milled

Operational Momentum Despite Challenges

Adriatic Metals PLC has delivered a notable operational performance in the second quarter of 2025, with silver equivalent production climbing 23% to 1.7 million ounces compared to the previous quarter. This improvement was underpinned by a 50% increase in ore milled, reaching 99,000 tonnes, reflecting a significant ramp-up at the Vareš Silver Operation in Bosnia and Herzegovina.

Mine development also advanced, with underground development metres increasing by 24% to 904 metres. Infrastructure milestones were achieved, including the completion of the Veovača Tailings Storage Facility (TSF) and a dedicated access road, which have helped alleviate previous bottlenecks in tailings management.

Revised Production Guidance and Operational Constraints

Despite these gains, Adriatic Metals revised its full-year 2025 production guidance downward to 475,000–525,000 tonnes of ore milled and 9.5–10.5 million ounces of silver equivalent, from earlier forecasts of 625,000–675,000 tonnes and 12–13 million ounces respectively. The revision reflects operational challenges encountered in the first half of the year, notably tailings management issues and mechanical problems with the crusher, which constrained processing rates.

These issues have been addressed with the new tailings access road operational since June and crusher repairs completed. Additionally, the installation of new filter plates scheduled for August is expected to restore the filter press to full design capacity, supporting future throughput improvements.

Financial Position and Debt Management

On the financial front, Adriatic Metals made significant debt repayments during the quarter, including a $19 million payment to Orion Mine Finance and $6 million to Trafigura, with ongoing monthly payments planned. The company ended Q2 with a cash balance of $59 million, down from $76 million at the end of Q1, reflecting these repayments and ongoing capital expenditures.

Operating cash flow remained positive at $15.4 million, while investing activities consumed $7.7 million, primarily for infrastructure and mine development. Financing activities saw a net outflow of nearly $25 million due to debt servicing.

Strategic Acquisition by Dundee Precious Metals

In a significant corporate development, Adriatic Metals and Dundee Precious Metals announced a recommended acquisition agreement in June 2025. The transaction, structured as a court-sanctioned scheme of arrangement, is expected to bring new strategic direction and resources to Adriatic’s operations. The company has committed to maintaining operational momentum throughout the acquisition process.

Commercial production was declared on 1 July 2025, marking a key milestone that underscores the transition from ramp-up to steady-state operations. This declaration follows sustained plant throughput levels exceeding 75% capacity over two weeks and reaching 90% capacity in late June.

Looking Ahead

Adriatic Metals continues to advance expansion studies aimed at increasing processing capacity to 1 million tonnes per annum, with mine design and scheduling on track for completion in Q4 2025. The company’s portfolio of mining tenements in Bosnia and Herzegovina and Serbia remains intact, supporting its medium-term growth ambitions.