An Adriatic Sea of Metals
We were lucky to see Adriatic release it’s long awaited Scoping Study just days before the London 121 Event. With a IRR above 100% (107% to be exact) and a SP jump of 21% on the news, there were plenty of big smiles at booth A12.
And the team is not slowing down. The next batch of assays are already waiting at the door and we could expect them to hit the market next week. It will be a batch of around 15-20 holes, where most are aimed at expanding the current Rupice deposit.
As a next big step a PFS with an updated resource estimation is planned for May 2020. If you look back they only IPO’ed in April 2018… Talk about setting an aggressive plan and sticking to your guns… What a pace!
Now is no time to rest Paul most have thought. While all juniors (and others) can be very very very jealous about Rupice, within their land package they have identified some other interesting prospects: Orti & West Veovaca. Both will be drill tested in the next months. I can only assume they are feeling the M&A heat turning up and they want to show some blue sky potential (Rupice clones?) to the world. It would be a shame to sell one Rupice only to find its brothers, sisters, cousins and stepbrothers in a few years?
Fully updated presentation online incorporating the Scoping Study results
When asked what the main value driver is in this sea of metals, Paul was categorical: “Silver by far”. For the barite their research shows the con would most likely be shipped to Norway or the Netherlands. Assumed costs are included in the conservative barite price used in the Scoping Study (roughly 25% below spot price). Other cons are most likely to be shipped to China.
The Underground scenario has some conservative mechanisms build-in as to deal with any potential issues with the ‘lower material quality’. This warrants a lengthy separate and technical discussion and frankly is not my cup of tea. I can only hope more knowledgeable (mining engineers) have a critical look at the Scoping Study and share their view publicly. Good or bad. For now, I’ll go with the study and Paul’s confidence until proven otherwise.
Some additional quick bulletpoints:
- Not aware who was driving the volume ( +9million shares traded hands) after the scoping study was released
- 13 NDA’s signed and Paul was not at liberty to expand on any names or details. This isn’t so surprising in itself, the absent of any NDAs would have been
- CSR Program running smoothly
That’s all for now. Stay tuned for the assays shortly.
To share another angle on this story, here is a recent article by Emanuel Ajay Datt at Datt Capital on the recent developments: https://www.datt.com.au/blog/adriatic-metals-a-mineral-growth-story
Cheers from London!
