Shares of Eurasia Mining plc (LON: EUA) plunged 8.8% despite the lack of major announcements from the Russia-focused Palladium miner.
The company’s shares have been falling since early December after hitting an all-time high of 45p on December 3.
The downtrend was expected given that the company’s shares gained over 7,800% over the past year and the number of investors shorting the company has increased significantly due to the rally.
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Eurasia Mining has significant exposure to high-production palladium and platinum mines in Russia and given the rising demand for these battery metals driven by the rising production of electric cars, the company’s future looks promising.
The miner’s shares just bounced off a medium-term support level and I will be interested to see if the price holds above this level confirming a renewed bullish trend.
Rising demand for palladium and platinum and their limited global availability and supply makes the company a potential acquisition target for some of the larger mining companies, which could occur at a significant premium to its current valuation.
Eurasia Mining’s prospects are promising and I wouldn’t be surprised if the price kept rising this year, especially if the company’s earnings reports show better earnings, or higher production at its Palladium and platinum mines.
Eurasia Mining share price
Eurasia Mining shares dropped 8.8% to trade at 31p having fallen from Thursday’s closing price of 34p.