RE: Rns10 May 2023 15:10
b1ll i think this might have had some impact on panicky pis.
eurasia mining: cash now almost exhausted, no bidder – time for a full fess up statement, £82m market value a total joke
by tom winnifrith, the sheriff of aim | tuesday 9 may 2023
disclosure: i have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. i wrote this article myself, and it expresses my own opinions. i am not receiving compensation for it (other than from *************). i have no business relationship with any company whose stock is mentioned in this article.
during the past three years, eurasia mining (eua) has pretended that it is in receipt of srrtious bid interest for its cash guzzling insignificant pgm assets in russia, assets where the cost of mining is, per oz, greater than the price metals are sold for. using this ruse to push up the share price it has managed to get away three placings at share prices which are a multiple of where the shares trade today. but now the money has almost run out.
at june 30 last year cash stood at £13.6 million. but the operational cashflow in the prior six months was minus £4.1 million and capital expenditure was a £7.1 million spaff, a total burn of £11.2 million. sales in that six month period were a paltry £102,000. now things may have been tweaked in the eleven and a third months since the last interim period. but the cashburn in that period was £1.87 million a month.
the company says that at the end of march cash was down to £3 million. so things were tweaked. i do not expect there was much of a budge at the revenue line. there may have been some inventory sell down or invoices actually paid, capex may have been reduced, but even at that reduced cashburn then by mid june all the money will have gone.
strangely, for a company facing a duet with the fat lady in just five weeks’ time, the amount of unsold pgms held in russia continues to grow – it was £5.6 million at the end of march. surely folks smell a rat? if you yourself were facing bankruptcy in five weeks but sat on assets that were readily sellable to create hard cash, you would be selling those assets fast. eurasia is building up those assets. that is an almighty red flag.
so, ceteris paribus, eurasia is running on vapours already. and that begs two questions:
1. will aim regulation allow eurasia and its disgraced nomad and broker sp angel to get away a fourth placing while pretending that a takeover is just around the corner. the company is not in a formal sales process any more will it pretend that it is any process at all. surely it must clarify matters?
2. will eurasia be able to secure any funding if it fesses that, after all this time, there is not going to be a bid? we know that much of the dodgy russian money that came into eurasia has left as the russians dumped shares onto the morons, will the russian’s spin the wheel again? and if not will anyone want to back this compa
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