Adriatic Metals PLC (LSE:ADT1, ASX:ADT, OTCQX:ADMLF) flagged a slightly slower timeline for the Vares mine construction alongside guidance for the production ramp-up, but brokers at Stifel and RBC still see the miner starting to generate plenty of cash this year.
Delays in equipment getting through the Suez Canal caused the slippage, which has also pushed up costs slightly, but steady state production should still be achieved in the fourth quarter of this year, says RBC.
"Net asset value falls 9% on the back of today’s release, but 2024 should provide the material commissioning catalysts to help drive a re-rating," it said.
'Outperform' with a target price of 325p, from 355p, is RBC’s view.
Stifel added: “While slightly higher costs, a longer development timeframe, and lower commodity prices would be expected to negatively impact economics; we believe that optimisation initiatives and mine life extensions have largely maintained Vares' value.
“Funding through ramp-up appears to be in place.
“Our estimate for net debt at the end of 2025 has increased by less than 1% and, similarly, our valuation is largely unchanged.
“We maintain our buy rating and 250p target price.”
Shares eased 6% to 168p.