Shares of Eurasia Mining plc (LON: EUA) are up 59.6% over the past two days as the platinum group metals miner’s fortunes improve drastically, placing it in an enviable position.
Today, the company issued an operation update noting that its West Kytlim mine had transformed after launching three washing plants in total production and stripped several open-pit areas.
Eurasia told investors that it has successfully eliminated the risks associated with a single operating asset at the West Kytlim mine, the world's largest alluvial PGM mine.
The PGM mining company is in the process of connecting its new assets to the electricity grid, which will reduce the company’s overall carbon footprint, improve its ESG scores and further reduce its production costs, which are already relatively low.
Eurasia Mining also revealed that its joint venture partner Rosgeo was making good progress in acquiring the license for Nyud and Moroshkovoe open pit deposits as the process is at advanced stages.
Today’s announcements are a big shot in the arm for Eurasia Mining, whose share price has been falling since December 2020, despite having profitable operations.
Eurasia produces PGM metals such as palladium, platinum, rhodium, iridium and gold, with its operations being quite profitable.
However, it was disappointing to watch as the company struggled to find a buyer since last year. Still, I expect this to change going forward if the recent two-day rally translates into a sustained rally over the coming weeks.
Eurasia had also made significant progress on its Central Kola Expedition (CKE) and is almost ready to start production on the mine that has been in the works since 2005, when it was a joint venture with Anglo American.
Christian Schaffalitzky, Eurasia Mining’s Executive Chairman, commented: “The Directors are delighted that our hard work on Kola that started as a joint venture with Anglo American Platinum in 2005 and is finishing as a joint venture with Rosgeo, a much stronger partner for doing business in Russia, is coming to a successful conclusion with DFS, JORC reserves as well as the EPCF (engineering, procurement, construction and finance) contract already signed. The Board is committed to executing on the strategy as announced on 12 May 2021”.
Eurasia Mining share price.
Since yesterday, Eurasia Mining shares are up 59.62% to trade at 24.55p, rising from Monday’s closing price of 15.38p.
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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