RE: Zaks numéro uno2 Jan 2022 16:40
1. Eurasia (EUA): 24.5p Target 50p
It has to be admitted that Eurasia was not necessarily going to be top of the 2022 list. The main reason for this is that the company already made its point as far as the bulls were concerned in 2020 when it came back from (unnecessary) suspension. However, it would appear that the court of Twitter, and private investors in general, regard this is a top play for 2022. While this is not necessarily a good indication of whether a company is capable of greatness, I would suggest that there are nevertheless plenty of positive factors to look at. The simplest one is that this is now a £700m company, having been up to £1bn at best so far. Despite all the mudslinging, distortion, character assassination and omission of the bears, EUA has become a mid-tier mining company, and given progress made in 2021, arguably the top tier in its space within the mining sector. I would venture to suggest that if it were not for the waiting game as far as M&A here and the slurs, its market cap would be well north of £1bn currently. Indeed, in many ways the heavy lifting here has already been done, with or without M&A. EUA has not only de-risked via this process, while we have been waiting, the latest Hydrogen and Ammonia projects JV have arguably made it a win-win whatever happens on the corporate action front.
Interestingly enough, it should be noted over 2021 the shares remained at the same starting price despite the flow of significant fundamental water having flowed under the bridge. For instance, the JV with Rogeo consisted of 104.6Moz of Platinum equivalent, and there have been a significant increases and upgrades in mining areas and assets across the enlarged portfolio. EUA will also be a significant Nickel player, and is clearly arm in arm with the Russian State’s mining strategy to propel this further. But above all, Eurasia has shown itself to be a proactive and aggressive player in its space. It could have just sat back waiting for a buyer. Instead, we have seen one of the most active examples of company building in the mining space in recent years, and is fully funded to execute the multi-pronged strategy in 2022 and beyond with minimal dilution. As things stand a sale would merely be the icing on the cake.
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