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$ADT.AX Op. Costs was $57/t in scoping study. In the PFS, it will "start with a 4" and settle down sub $40/t. A lot of that is because they are able to localize costs (employment, contractor, fabrication etc.) in PFS rather than use int'l benchmarks. 1/14
Dominic Roberts joined ADT a few months ago and has operated 5 mines in the region. Just a great hire for Adriatic. What else will be better in the PFS? Silver and gold make up over half of the revenues and were $17/oz and $1440/oz in scoping study. That will help. 2/
There were favourable movements in TCs and RCs since the scoping study as well. ADT spent $1m on met work to better understand the polymetallic ore as it is complicated so better recoveries will help. 32% increase in tonnage on Rupice ore body. 3/
Adriatic significantly increased their land position recently. They will fly an airborne survey in October which gives them the winter to interpret the data and develop new targets and "look for the next Rupice." New land in blue below. Existing land in red. 4/
Adriatic is multi asset now given the pending closure of the Tethyan acquisition. Kizevak (idea is it's open pit) is open to the north, to the south, to the west and "it is most certainly open down dip." 12k metres coming this year. 1 rig there now, 1 more in Sept, 3rd in Oct. 5/
Exploitation permit will come for Veovoca in "this quarter" - that sounds like Q3 but maybe he meant Q4 as the timeline made it look like Q4 - they still need Urban Planning Permit. Environmental permit on deck at Rupice with exploitation permit expected in Q1/21. 6/
Serbia Kizevak is almost exactly 2 years behind Rupice. i.e. Vares is in full production by 2023 and Kizevak could be in production by 2025 if all goes to plan. I'm with everyone else who would love to be sitting on shares a few years from now if that comes together. 7/
Question: How confident are you of an operating asset by 2023? Dom says he understands this as well as anyone given 15 years in the sector in Balkans. He's done it before, they'll do it again. Once permitted, they can start "simplified mining project" in Q2/21. 8/
That lets Adriatic start work on the decline in Q2/21. He notes there are many moving parts and it is aggressive but he sounds confident about achieving the timelines. Easy to say of course but this is a guy who has vast experience in the Balkans. 9/
Q about the expanded Vares concession. It's 32km^2 of extra land. Head geo has spent a lot of time thinking about how the geology works in new land. Helicopter will handle survey next month to assist in that regard. 10/
They'll drill the 12k metres at Kizevak this year. Dominic's expectation is 10-12Mt at 7.5% ZnEq at Kizevak at that stage but has a feeling they'll just keep drilling given it is open all over the place before coming out with resource estimate. I personally don't think so.... 11/
Paul Cronin has said drilling in winter quarter in that area could be difficult and semi dangerous. My expectation is still that Kizevak MRE comes out in Q1 then more drilling to expand it in Q2+. I could be wrong but that is my opinion. 12/
Current thoughts on financing Rupice is leaning towards a combination of debt and royalty streaming. Dominic doesn't think they are looking at equity for that but that is an open conversation. They will need that money for Q2 next year. 13/
Laughs (in good way) when asked if this is the best career move he has made. Prior job was with a private company. He wanted to go work in the public company. Paul has taken Dominic under his wing and is pushing Dominic for the right reasons. 14/14
