Adriatic Metals PLC (LSE:ADT1, ASX:ADT, OTCQX:ADMLF) told investors it has continued to progress the Vares project to schedule, despite challenges posed by global macroeconomic conditions.
The company, in its quarterly activities report, chief executive Paul Cronin said: “Elevated diesel prices have caused some project cost variances, but these have been largely offset by design and construction changes where cost saving opportunities were identified by our team here in BiH.
“Consequently, we see no reason that the project construction cannot be delivered on time, and a relatively small increase in construction costs can be funded out of existing treasury.
“In parallel to our construction efforts, our exploration team is making great progress, identifying a new Rupice style zone of mineralisation, which should add significant mine life to the project".
The company ended June with US$83.4mln in cash.
Adriatic noted that inflationary pressure are ‘under control’ and the project remains on time for concentrate production in Q2 2023.