Shares of Eurasia Mining plc (LON: EUA) edged 5.9% higher despite not making any important announcements as investors sentiment towards the company turned slightly positive.
Investors see the significant potential posed by the company’s partnership with the Russian state agency Rosgeo, which could generate revenues worth billions.
Some estimates put the value of the battery metal resources in the Nyud-Moroshkovoye region at $14.4 billion with up to 464,000 tonnes of copper, 163,400 tonnes of PGMs, 525,000 tonnes of nickel.
In my last article on the Russia-focused mining company, I noted that it had appointed a new CEO for its Russian entities, a widely appreciated move as it signalled that the joint venture with Rosgeo was going forward.
However, Eurasia Mining shares are still trading near multi-month lows as investors remain hesitant to buy the company’s shares.
It is not clear why Eurasia’s shares have been in a downtrend since December 2020, but one of the main reasons could be its unsuccessful search for a buyer, indicating that the firm has some fundamental problems.
Regardless of its current woes, Eurasia remains a successful global mining company with actual revenues and profits making it more attractive than many of the pre-production mining exploration companies, in my opinion.
Bullish investors may find the current prices quite attractive, but there is a risk of further decline if the company makes a negative announcement.
*This is not investment advice.
Eurasia Mining share price.
Eurasia Mining edged 5.94% higher to trade at 20.34p, rising from Thursday’s closing price of 19.20p.
Eurasia Mining shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Eurasia shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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