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Adriatic's PFS lives up to the hype

Adriatic Metals is living up to its billing as one of the most hyped junior mining stocks in recent memory, having delivered a PFS for its Vares project in Bosnia & Herzegovina that shows a post-tax NPV of over US$1 billion against an initial capex of US$173 million, with payback in just 1.2 years.
Adriatic's PFS lives up to the hype Adriatic's PFS lives up to the hype Adriatic's PFS lives up to the hype Adriatic's PFS lives up to the hype Adriatic's PFS lives up to the hype

Adriatic Metals' Vares project in Bosnia & Herzegovina

Staff reporter

The ASX and LSE miner announced an IRR of 113% and an annual EBITDA of US$251 million over the first five years of the project's 14-year mine life.

Revenue from the polymetallic project, which consists of two main deposits - Rupice and Veovaca - will come mainly from silver and zinc. The company said revenue would be split 31% silver, 25% zinc 14% gold, 14% lead and the rest from copper and barium sulphate.

Adriatic's price assumptions are on the high side, including silver at US$24/oz and gold at US$1,900/oz.

"Despite COVID-19 hampering efforts of mining companies around the globe, I am pleased that we are able to deliver a hugely positive PFS, with improved economics in comparison to our 2019 scoping study, thus showing that Vares is indeed a world class project," said Adriatic managing director Paul Cronin.