(Alliance News) - Eurasia Mining PLC said Thursday it swung to an interim profit on a sharp currency gain, as it looks to fully benefit from its now wholly owned producing mine.
For the six months ended June, the platinum and gold miner swung to a GBP69,854 pretax profit from a GBP972,243 loss a year prior. This was despite revenue sinking to an insignificant GBP13,316 from GBP447,545 a year before.
Profit performance was helped by a GBP643,872 gains related to currency changes, compared to a GBP903,427 currency loss taken a year before.
"The first six months of 2019 saw the company embark on its second season of production at material levels at our West Kytlim alluvial platinum and gold mine," Eurasia Executive Chair Christian Schaffalitzky said.
"Production has been ongoing at site since May of this year concurrent with the project's most aggressive drilling programme in recent years," Schaffalitzky added. "Earlier in September the company moved forward in its plan to operate its own mines and purchased the necessary processing plant and other equipment."
Eurasia now receives 100% of metal revenue from the West Kytlim mine in Russia, up from 30% to 35% prior to the deal earlier in September.
"Our plans for sustainable phased production increases at the project incorporate resource and reserve upgrade programmes with further capitalisation of the asset from the mine's cashflow - this at a time of more buoyant metal prices and a generally bullish outlook in the platinum group metal sector, especially for palladium, platinum, iridium and rhodium as well as gold that are all in the basket of metals of our sellable product," Schaffalitzky said.
"Meanwhile, the Monchetundra project was progressed considerably with important technical statutory reporting finalised and submitted to the relevant authorities by mid-September 2019," Schaffalitzky continued.
"Progress has therefore been steady at both of our main projects through 2019," Schaffalitzky said.
In a separate announcement, Eurasia said it submitted an exploration application for flanking Loipishnune and West Nittis tenements of the Monchetundra project, also in Russia.
"On receipt of the flanks area exploration license these areas will become high priority brown field exploration targets which the directors believe may increase the resources for the project severalfold," Schaffalitzky said.
Shares in Eurasia were 3.2% lower at 0.46 pence in London on Thursday at midday.
By Ahren Lester; ahrenlester@alliancenews.com
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Eurasia Mining (EUA)