Adriatic Metals PLC (LSE:ADT1, ASX:ADT, OTCQX:ADMLF) increased production by nearly a quarter in the three months to the end of June but lowered its guidance for the full year, citing changes to its operational plans.
The London-listed miner produced 1.7 million ounces of silver equivalent (AgEq) in the second quarter, a 23% rise on the previous three months.
Ore milled rose by 50% to 99,000 tonnes, while mine development advanced by 904 metres, up from 730 metres in the first quarter.
The company, which operates the Vareš silver-zinc-lead project in Bosnia and Herzegovina, also confirmed that commercial production officially began on 1 July, just after the reporting period.
Construction of the Veovača tailings storage facility was completed in March, with the first tailings deposited in April. A dedicated access road linking the plant to the facility became operational in June.
Despite the operational gains, Adriatic has revised down its guidance for the 2025 financial year.
It now expects to process between 475,000 and 525,000 tonnes of ore, down from an earlier estimate of 625,000 to 675,000 tonnes.
Silver-equivalent production is forecast to reach between 9.5 million and 10.5 million ounces, compared with a previous target of up to 13mn ounces.
The group made debt repayments of $25 million during the quarter, including a $19 million payment to Orion Mine Finance and $6 million to commodities trader Trafigura.
It ended June with a cash balance of $59 million, down from $76 million at the end of March.
On 13 June, Adriatic agreed to be taken over by Canada’s Dundee Precious Metals.