Ann: Adriatic Metals adds Significant Footprint to Vares Project, page-8

SprottsMaintain BUY rating, maintain US$3.05/sh PTWe model Adriatic on a DCF basis, maintaining our previous, scoping study linked, grade and tonnage inputs. This sees our 1xNAV10%-1850-24 remain at US$863m (US$1,080m at spot) and so we maintain our BUY rating and A$3.05/sh price target. We also note that at the current A$2.15/sh, Adriatic trades at just 0.28xNAV10%-SPOT.Why we like Adriatic1. World-class polymetallic deposit, highlights 72m @ 21g/t AuEq / 44.6% ZnEq (100% basis)2. Rupice resource of 4.6Moz @ 9.4g/t AuEq, or 1,057kt @ 6.9% ZnEq3. Starting with UG operation generates quick payback and high IRR4. Existing infrastructure, low opex, royalties and taxes5. Strong permitting history in Bosnia, low permitting hurdle from this and existing mines6. Pipeline projects in SerbiaCatalysts 2H20: Plant/Veovaca Urbanisation and Exploitation permits 2H20: Rupice PFS 4Q20: Maiden JORC resource – Kizevak and Sastavci 1H21: Rupice Urbanisation and Exploitation permit  2021: Construction start 2022: First