EUA Motley fool.17 Jan 2022 18:18
Hi all
Below is the verdict of eua from the Motley fool, September 2021, when eua was also around 28p
Do current investors agree/disagree with this verdict. Has the company transformed in value and prospects since September. Genuinely interested in any views .
Thanks in advance if you take the time to reply.
Have a great evening all
Mark
https://fool.co.uk/
My verdict
PGM metals are key to Eurasia’s success. The rising demand, especially industrially, could benefit it hugely. For example, catalytic converters are now being made out of palladium rather than platinum. The electric vehicle (EV) market is booming. This has resulted in the demand for battery metals rising as well. Based on current palladium production throughout the world, there is an opportunity for new production streams to be extremely profitable for the firms that mine it.
Despite Eurasia’s potential as a penny stock there are some serious risks for me. It only recorded revenue of less than £1m in 2020. As I write, Eurasia’s market cap is over £900m! That tells me investors are pricing in growth over the next few years. I feel it is extremely overvalued. It only has one project producing PGMs and none of those in Monchetundra is operational yet. If they do not go ahead, that will hurt Eurasia and its share price.
Generally speaking too, commodities are a volatile market. If I were to invest my hard-earned cash into a mining firm it wouldn’t be Eurasia at this time. I feel it is overvalued and too risky as a penny stock right now.