Adriatic Metals PLC (LSE:ADT1, ASX:ADT, OTCQX:ADMLF)'s ramp-up of production at the Vares silver mine in Bosnia & Herzegovenia is on track, with nameplate production expected in 2024.
Underground development improved by 31% while 257 dry metric tonnes (dmt) of silver-lead concentrate and 128 dmt of zinc concentrate were produced in the second quarter, the group said on Tuesday.
Concentrates have been sold and shipped to offtakers Trafigura and Transamine, respectively, while Adriatic has completed the transition to owner-operator of Rupice Mine.
Cash balances on 30 June 2024 were US$59.9 million, according to the update.
Paul Cronin, chief executive, added: "In Q2 Adriatic recorded its first revenues from our Vares Silver Operation, a highly significant milestone for the company and for Bosnia & Herzegovina (BiH).
"Additionally, the Vares Processing Plant is delivering saleable concentrates with recoveries continually improving as we continue to increase throughput of higher grade feed.
"All infrastructure logistics and concentrate handling are also operating well.
"We are scheduled to commence mining the first stopes in August, just a few weeks later than planned.
“The recent ruling of the Constitutional Court has the real prospect of negatively impacting every major development project in BiH - hindering future economic development for the country.
“However, we continue to operate as planned and alternative tailings storage facilities are being progressed."