Adriatic boosts output but trims forecast ahead of Dundee deal

Adriatic Metals (ASX, LON: ADT) reported strong gains in silver and gold production in the second quarter of 2025, even as it lowered full-year guidance ahead of its planned acquisition by Dundee Precious Metals (TSX: DPM).

The company, which operates the Vareš silver-zinc-lead project in Bosnia and Herzegovina, said silver equivalent output rose 23% to 1.7 million ounces in the three months to June 30, up from 1.4 million ounces in the first quarter. The total included 720,449 ounces of silver and 4,840 ounces of gold, both up from 595,993 and 3,998 ounces, respectively.

Adriatic also reported increased zinc and lead production, and confirmed that commercial production at Vareš officially began on July 1, just after the quarter ended.

The company completed construction of the Veovača tailings storage facility in March, , with first tailings deposited in April. A dedicated road linking the plant to the facility became operational in June.

Despite the second-quarter output increases, Adriatic cut its full-year silver equivalent production forecast to between 9.5 million and 10.5 million ounces, down from a previous range of 12 million to 13 million ounces, though still higher year-on-year.

The company’s cash balance stood at $59 million on June 30, down from $76 million at the end of March.

Adriatic Metals accepted last month a $1.25 billion takeover offer from Dundee Precious Metals, a Canadian gold miner with operations in Bulgaria, Serbia and Ecuador.

“Following the board’s recommendation to accept the proposed acquisition of Adriatic by Dundee Precious Metals, we remain committed to maintaining positive operational momentum throughout this transactional period,” Adriatic Metals chief executive officer Laura Tyler said in the statement.

The merged company will keep its global headquarters in Toronto, while Adriatic’s UK office will shut down.