ADMLF - Adriatic Metals: Huge Growth Potential But Limited Margin Of Safety
2024-05-06 16:04:45 ET
Summary
- Adriatic Metals is a precious and industrial metals miner with a world-class deposit at its Vares project.
- The share price has increased 50%, as the company achieved first concentrate production in February and is now ramping up towards nameplate capacity.
- I estimate that Adriatic is trading at a roughly 15% free cash flow yield.
- This number does not take into consideration its significant growth potential.
- Nonetheless, given the recent strong share price performance and the uncertainties related to the ramp-up phase, I don't currently see enough margin of safety to initiate a position.