News of Adriatic Metals PLC (LSE:ADT1, ASX:ADT, OTCQX:ADMLF)'s first concentrate production at Vares might have been anticipated by frequent updates, but it remains an important and encouraging milestone nonetheless, said broker Stifel.
“The successful delivery of Vares, combined with the establishment of a solid organisational framework and detailed operational protocols, should facilitate Adriatic's transition into a producer, enable the potential of the district to be fully realised, and support the company's future growth aspirations,” Stifel added.
Adriatic shares trade on a 25-50% discount to comparable producers and Stifel retained a buy rating and 250p target price in expectation of the group demonstrating operational performance and moving into into full-scale production over the remainder of the year.
Vares is a silver project in Bosnia and Herzegovina.
Shares were up 4.4% at 172.2p.