RE: Let's play guess the special dividend .....23 Aug 2021 13:20
Eurasia Mining: One Year On
July 9th 2020 may not immediately strike one as being an important day on the stock market. But as we approach the anniversary of this date, shareholders of PGM and battery metals group Eurasia Mining (EUA) may be able to look back at a year of progress since the stock came back from suspension. This is especially the case given that they have seen off the bears / shorters who assured us that Eurasia would not return to the market.
A Fundamental Play
Despite all their best efforts of the naysayers at distorting the fundamentals of the company and defaming the board and the management, we are now looking at a company with a market cap of nearly £600m backed up by strong fundamentals (Rosgeo JV adding over 100Moz PGM to Monchetundra, West Kytlim scaled up from 1 to 3 plants and strong ESG focus). There has also been large institutional buying at the market price including Blackrock, Fidelity and Goldman Sachs to name a few. But of course, the problem is that having invoked every possible negative regarding Eurasia, and attempted to scare ordinary private investors from the stock, it would be plain embarrassing to admit defeat.
Short Supply
That said, enough of the negatives which are increasingly becoming a characteristic of the stock market. Eurasia has been a winner since the pandemic struck, off the back of an appreciation of supply deficits in PGMs, its position in the battery metals space, as well as being an environmentally sustainable miner of green metals. Clearly, anything related to the EV revolution, as well hard assets in general, have been well supported in the past year, and this state of affairs looks set to continue.
A Structured Portfolio
Nevertheless, where Eurasia has been outstanding is not so much in riding the tide of macro factors in its favour, but structuring its portfolio in an optimal way. Indeed, it would appear like any sensible company would do, always ready to prepare itself for whatever eventuality it may face – pandemic or no pandemic, company takeover or asset sale.
M&A
While Eurasia fielded offers during its FSP and, will no doubt have further interest going forward, it has moved to consolidate its position as a major mining player. This has been achieved both through the weight provided by its market cap, which at one point exceeded the £1bn, but also by some savvy deal making.
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