The Eurasia Mining share price leaps 20%! New golden goose4 Nov 2019 15:39
4 November 2019
The Eurasia Mining (LSE:EUA) share price has seen massive investor interest over the past two weeks with prices rising far beyond previous ranges.
The stock has soared four-fold since the gold and platinum miner reported the potential to double production at West Kytlim in Russia.
The share price has bumbled along in the 0.5p to 1.5p range for the past 10 years so this marks quite the departure for the UK miner.
Mining bonanza
Chairman Christian Schaffalitzky is quoted as revealing on 25 October that “bonanza grade ore pockets” were discovered at the Kluchiki open pit mine. This technical mining term relates to a rare pocket of high-grade deposit being found.
Discovering bonanza grade ore effectively means that mining operations will be cheaper, because it takes less effort to pull more precious metal out of the ground. And what comes up will contain a higher proportion of the shiny stuff, which means big profits ahead.
If true, it means the FTSE AIM-listed miner has literally struck gold.
What to buy
The Eurasia share price is trading for mere pennies at the moment. And there are other good signs when we dig a little deeper.
In interim results out in September 2018, Schaffalitzky said that the company had cleared all of the debt off its balance sheet. Non-existent levels of debt are extremely rare for mining operations, which require many years and tens of millions of pounds of investment before any discoveries can be made. Compare this to the likes of FTSE 100 stalwart Rio Tinto and you will see what I mean.
It’s not the only mine Eurasia has in operation. The company won an exploration permit from the Russian Federal Securities Board in June 2018 to dig for platinum in Monche-Tundra, on the very tip of the northwest Russian coast, bordering Finland.
Eurasia signed a construction deal with Chinese firm Sinosteel earlier this year, saying at the time that the tie-up was worth $176m.
But I would be wary of claims of nine-figure valuations, especially for a company with a market cap short of £65m.
If you know this business, if you can do your own research, there’s no reason EUA shouldn’t be a part of any confident investor’s portfolio
https://uk.finance.yahoo.com/news/eurasia-mining-share-price-leaps-133209876.html