PROFIT30 Sep 2022 13:23
Eurasia Mining PLC (AIM:EUA) generated sales of just over £100,000 in the six months to 30 June 2022, but because of foreign exchange gains was able to book a profit before tax of £3.9mln.
Its cash balance remains robust, with more than £3mln and US$6.6mln currently in its sterling and US$ denominated bank accounts respectively, the company said in its interim results statement.
During the period, the company continued to work on its assets in Russia, in particular West Kytlim and Monchetundra.
At West Kytlim, Eurasia's plan to install grid power to site to reduce the carbon output associated with overburden stripping, while also reducing operational expenditure and improving efficiency, is advancing well and the electric dragline, which is currently being assembled, is aimed to significantly improve the stripping programme this coming winter.
At Monchetundra, the ongoing DFS study for the Loipishnune and West Nittis open pits represents an important reporting milestone for the project's development and is on schedule for submission before the end of 2022.
The effect of the war in Ukraine on the company’s operations has so far been minimal. Eurasia took the decision to stockpile ore from West Kytlim at the beginning of the mining season due to its strong cash position, volatility in the market and in anticipation of higher realisable sales revenue in the future.
As such, despite producing 167 kg of platinum group metals concentrate the company has made no commercial sales of platinum in the period, instead opting to retain this PGM concentrate, which has a net realisable value of around £3mln, for refining at a later date.
The value ascribed to this concentrate is for the platinum content only and does not include any other PGMs or gold.
The company said it remains satisfied that neither of its current activities at the West Kytlim Mine or on the Kola Peninsula are prohibited under UK or EU sanctions rules.
Furthermore, Eurasia does not engage and has not engaged with any sanctioned persons, entities or agencies.