Source - LSE Regulatory
RNS Number : 1033J
Adriatic Metals PLC
19 August 2021

Adriatic Metals PLC 

('Adriatic Metals' or the 'Company')






•   Improved 2021 DFS economics from 2020 PFS

2021 DFS

2020 PFS

Post-tax NPV8

US$1,062 million

US$1,040 million

Post-tax IRR



Initial Capital Cost*

US$168 million

US$173 million

Payback period

0.7 years

1.2 years


US$7.3 / AgEq oz

US$9.7 / AgEq oz

           *includes contingency

•    Simplified process design de-risks project execution:

•     Veovaca open pit removed from scope of study

•     Reduction of concentrate products from four to two; recovery of barite and sulphide (pyrite) concentrates deferred.

•     Veovaca open pit, barite recovery and sulphide (pyrite) recovery to be considered in a future development phase

•    48% of revenues from payable silver and gold

•    Completion of 2021 DFS paves the way for Adriatic to be the first publicly listed mining company in Bosnia & Herzegovina

•    Metallurgical and geo-metallurgical test work ongoing post-DFS, targeting continuing improvement in recoveries

•    ESIA, concentrate offtake and project finance work streams well advanced and progressing in line with the Company's expectations

•    The Company will host a 2021 DFS Webinar on Monday 23rd August, 2021. To register your attendance -





Adriatic Metals Plc (ASX:ADT, LSE:ADT1, OTCQX:ADMLF) is pleased to announce the outcome of the Definitive Feasibility Study ("2021 DFS") for the Vares Silver Project in Bosnia & Herzegovina, which has been completed by a number of international consultants and coordinated by Ausenco Pty Ltd ("Ausenco").


This announcement has focused on the technical matters of the Vares Silver Project. In addition, a summary has been provided of the concurrent ESIA workstreams, which are nearing completion. A separate, detailed announcement will be made on the ESIA in due course.


Paul Cronin, Adriatic's Managing Director and CEO commented 


"The completion of the 2021 DFS is a major milestone for the Company, and clearly demonstrates the exceptional potential of the Vares Silver Project. During the formulation of this study, we have significantly expanded our relationships with key suppliers in BiH and the region, as well as completing an Organisational Blueprint for human resource development and training, both of which are key requirements for our economic sustainability objectives.


Project delivery and execution risks have been substantially reduced through the simplification of the process flowsheet and Initial Capital Costs lowered against the backdrop of inflationary construction costs, whilst improving the overall Project economics.


In the design of this Project, environmental and economic sustainability have been at the core of our thinking, shaping the Project to ensure that its economic and environmental benefits extend well beyond the current mine life, and provide a perpetual benefit to our local community in Vares and indeed, to the BiH economy. 


Our focus from this point is to finalise the Project financing, which is well advanced, and concurrently commence construction whilst continuing to look for marginal improvements in metallurgical recovery, capital and operating costs. Additionally, we have commenced a study to expand the renewable energy production we have at the Vares Processing Plant, and augment that capacity, to ensure that the Vares Silver Project reduces its carbon emissions significantly, soon after the commencement of commercial production.


As demonstrated in our recent exploration results, we are confident that we can expand the Resources and Reserves at the Vares Project and look forward to working with the Vares community for decades to come, jointly demonstrating the benefits of mining operations in a European context."



The full 2021 Definitive Feasibility Study announcement is available on the Company's website:




** ENDS **


The information contained within this announcement is deemed by the Company (LEI: 549300OHAH2GL1DP0L61) to constitute inside ‎information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. The person ‎responsible for arranging and authorising the release of this announcement on behalf of the Company is Paul Cronin, Managing Director and CEO.

For further information please visit or @adriaticmetals visit on Twitter; or contact:

Adriatic Metals PLC

Paul Cronin / Thomas Horton

Tel: +44 (0) 7866 913207

Canaccord Genuity Limited (Joint Corporate Broker)

Jeremy Dunlop (Australia)

Tel: +61 2 9263 2700

James Asensio  (UK)

Tel: +44 (0) 207 523 8000

RBC Capital Markets (Joint Corporate Broker)

Marcus Jackson / Jamil Miah

Tel: +44 (0) 20 7653 4000

Stifel Nicolaus Europe Limited (Joint Corporate Broker)

Ashton Clanfield / Callum Stewart

Tel: +44 (0) 20 7710 7600

Tavistock Communications Limited

Charles Vivian

Tel: +44 (0) 7977 297 903

The Capital Network

Julia Maguire / Lelde Smits

Tel: +61 2 8999 3699


Some statements in this document may be forward-looking statements. Such statements include, but are not limited to, statements with regard to capacity, future production and grades, projections for sales growth, estimated revenues and reserves, targets for cost savings, the construction cost of new projects, projected capital expenditures, the timing of new projects, future cash flow and debt levels, the outlook for minerals and metals prices, the outlook for economic recovery and trends in the trading environment and may be (but are not necessarily) identified by the use of phrases such as "will", "expect", "anticipate", "believe" and "envisage".

By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and may be outside Adriatic Metals' control. Actual results and developments may differ materially from those expressed or implied in such statements because of a number of factors, including levels of demand and market prices, the ability to produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating costs, operational problems, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or regulation.


The material assumptions used in the estimation of the Production Target and associated forecast financial information are set out in this announcement, as well as the Vares Silver Project Mineral Resource Estimate for Rupice as of 1 September 2020 and the Veovaca Mineral Resource Estimate as of 18 July 2019.

The Ore Reserve and Mineral Resource Estimates underpinning the Production Target were prepared by a Competent Person in accordance with the JORC Code 2012.

The Production Target is underpinned solely on Probable Ore Reserves (100%).


The Mineral Resource estimate for the Rupice underground deposit comprising part of the Vares Silver Project was announced in accordance with ASX Listing Rule 5.8 on 1 September 2020. The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous announcement and that all material assumptions and technical parameters underpinning the estimate in the previous announcement continue to apply and have not materially changed.

The information in this report that relates to Ore Reserves is based on information compiled by Mr John Battista and Mr Simon Grimbeek, both of whom are Competent Persons and Members of the Australasian Institute of Mining and Metallurgy. Both Mr Battista and Mr Grimbeek are currently employed by Mining Plus. Mr Battista and Mr Grimbeek both have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources, and Ore Reserves (JORC Code). Mr Battista and Mr Grimbeek consent to the disclosure of information in this report in the form and context in which it appears.


Adriatic Metals PLC (ASX:ADT, LSE:ADT1, OTCQX:ADMLF) is a precious and base metals developer that is advancing the world-class Vares Silver Project in Bosnia & Herzegovina, as well as the Raska Zinc-Silver Project in Serbia.

The Vares Project 2021 Definitive Feasibility Study boasts robust economics of US$1,062 million post-tax NPV8, 134% post-tax IRR and a capex of US$168 million. Adriatic is the only publicly listed mining company exploring in Bosnia and Herzegovina and is leveraging its first-mover advantage. The Company is well-funded and concurrent with advancing the construction of the Vares Silver Project, continues to explore across its large, highly prospective 41km2 concession package.

Adriatic Metals completed the acquisition TSX-listed Tethyan Resource Corp.  in Q4 2020, which contained the Raska Zinc-Silver Project in southern Serbia. The Company is exploring across its 99km2 highly prospective concession area, which includes around the formerly operating Kizevak and Sastavci polymetallic mines.


Forward-looking statements are statements that are not historical facts. Words such as "expect(s)", "feel(s)", "believe(s)", "will", "may", "anticipate(s)", "potential(s)"and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to statements regarding future production, resources or reserves and exploration results. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to: (i) those relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations, (ii) risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined, (iii) the potential for delays in exploration or development activities or the completion of feasibility studies, (iv) risks related to commodity price and foreign exchange rate fluctuations, (v) risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities, and (vi) other risks and uncertainties related to the Company's prospects, properties and business strategy. Our audience is cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.

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