The Eurasia Mining plc (LON: EUA) share price surged 10% after releasing updated resource estimates for its Monchetundra Project, which included the West Nittis and Loipishnune deposits, the NKT area, and the projects that are part of its Rosgeo partnership.
Investors cheered the updates, as evidenced by the rally in Eurasia Mining’s share price pushing the shares away from a crucial support level that has been in place since September 2021.
Some of the report’s highlights include over 1.8 million tonnes of copper and nickel resources. However, the total reserves were much lower, at 292,714 tonnes of copper and 388,485 nickel.
The latest update cements Eurasia Mining’s leading position as a global producer of copper, nickel, cobalt, palladium, platinum, silver and gold. In addition, the company is well known as a major producer of platinum group metals.
The company’s West Kytlim mine is the world’s largest alluvial platinum group metals (PGM) mine. It has three washing plants in operation combined with several open-pit areas currently being stripped.
Based on today’s data, it is evident that Eurasia Mining’s prospects are quite promising, yet the company’s share price has fallen 9% this year. There are a few reasons if you wonder why the company’s shares do not reflect its prospects.
Firstly, Eurasia Mining was actively looking for a buyer for most of last year. Yet, the miner did not get any firm offers from the most likely suitors, other global mining companies.
While there is no apparent reason, maybe it is because its most lucrative mines are located in Russia, while its potential suitors are US mining companies.
However, there are some global mining companies in China. Yet, even these did not submit a firm offer to acquire the company, which makes me wonder why these global companies are afraid to touch Eurasia Mining?
The looming question about the lack of suitors was why Eurasia Mining shares were under significant pressure last year. However, in its last update regarding the sale process, Eurasia Mining said it was in talks with some interested parties.
Christian Schaffalitzky, Eurasia Mining’s Executive Chairman, said: “The Directors are pleased to update shareholders on our reserves and resources, as we continue to make good progress further to the RNS of 28 October 2021 in relation to the potential sale for which a separate update will be provided”.
Eurasia Mining shares look attractive at current prices and could be a buy for me if I was looking for investment targets in the mining sector. The rising global demand for all types of metals bodes well for the firm’s diverse portfolio of metals in production.
*This is not investment advice. Always do your due diligence before making investment decisions.
Eurasia Mining share price.
Eurasia Mining shares surged 10% to trade at 22.55p, rising from Monday’s closing price of 20.50p.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 68 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .
Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading