• Record quarterly processing throughput of 68kt ore milled
• Production of approximately 1.3Moz silver equivalent
• Commercial production expected in Q2 2025 as road construction to Veovaca TSF completed

Adriatic Metals PLC (ASX:ADT, LSE:ADT1, OTCQX:ADMLF) has provided an update on production activities at the Vares Silver Operation in Bosnia and Herzegovina. The company achieved a record quarter of processing throughput, with 68kt of ore milled in Q1 2025, up 43% from 47kt in Q4 2024. Production of approximately 1.3Moz of silver equivalent was also higher than the previous quarter's 0.9Moz. However, milled tonnage was lower than expected due to tailings filtration cycle time issues and the transition from the temporary Tailings Storage Facility (TSF) to the Veovaca TSF. Commercial production is now expected in Q2 2025, as road construction to the Veovaca TSF was delayed but has now been resolved. Mining operations are proceeding well, with 67kt of ore mined in Q1 2025 and underground development metres increasing over 7% from Q4 2024. The company has a current ore stockpile of 53kt at attractive grades. Construction of the Veovaca TSF was completed in March, with initial tailing deposition to occur in the first week of April. Financially, Adriatic reported record quarterly sales of $33 million, a 23% increase from Q4 2024, and made its first debt repayment of $20 million to Orion Mine Finance. The company ended Q1 with a cash balance of $75 million and total net debt of $85 million.

Commercial production is expected in Q2 2025 as road construction to the Veovaca Tailings Storage Facility is completed.

The company's focus over the next few months is to actively debottleneck and optimise operations, and continue to improve performance. The process of ramping up production to nameplate capacity of 0.8Mtpa remains on track for the second half of 2025.