Adriatic Metals site trip underlines progress being made, says RBC
Published: 14:05 30 Sep 2024 BST
A site trip to Adriatic Metals PLC (LSE:ADT1, ASX:ADT, OTCQX:ADMLF) Vares mine has reassured about the potential of potential of this tier 1 asset, said broker RBC, though it has reduced its price target to 300p from 310p.
FTSE 250 member Adriatic has had a difficult year marked with delays, legal issues and management changes, notes RBC, but the trip to Vares highlighted the progress made to date by the miner.
“The underground mine is now operating in areas with more stable ground conditions which should allow for continued improvement in development and mining rates.
Processing plant issues are also now largely resolved, though permits for the alternative tailings facility are outstanding and due in October.
Although the search for a permanent chief executive continues, RBC says interim CEO Laura Tyler has more than 30 years of mining experience and a strong profile.
Cost and capex changes account for the lower price target but the broker expects Vares to become more cost-efficient over time as the local workforce becomes more productive.
“We see current share price levels as a unique entry point and expect a re-rating to occur as the company moves from a development into a production company,” the broker added with its ‘outperform’ recommendation intact.
