 climbed as high as 20% in one day before retreating.){kind=link}
Eurasia Mining Share Price
Last Thursday the Eurasia Mining share price (LON:EUA) climbed as high as 20% in one day before retreating. Despite trading sideways from February onwards, year-to-date the stock is down by over 20%. Going further back to July, the Eurasia Mining share price is up by over 100%. Investors will be curious about the recent surge and what it could mean for the company’s longer-term outlook.
Potential Sale
The cause of the surge of the Eurasia Mining share price last Thursday was an announcement by the company that it could be selling all of its assets. The platinum group metals and gold producer also said that it had finalised its strategic review and formal sale process.
In a trading statement Eurasia Mining said it “has more recently focused its attention, including providing due diligence access, on a limited number of potential bidders who had shown consistent interest in Eurasia and its high-quality asset base”.
While the board will now focus on the potential sale, it said it could mean a significant dividend payment for investors. “A proposal from a credible party that could allow us to pay a significant dividend to all shareholders,” said Eurasia’s executive chairman Christian Schaffalitzky.
While the statements coming from Eurasia Mining looks promising for shareholders, the deal has not yet been confirmed, and there is no guarantee it will go through.
Performance
Aside from a potential sale, the AIM-listed company gave an update on its West Kytlim operations in the Urals.
Russian authorities have officially approved a new Technical Project. This means three plants will be in operation in 2021, compared to one the year before. All three points will have begun production this quarter, the company confirmed.
This means the outlook for the Eurasia Mining share price is strong, as its mining operations now appear secure. This will be the case even if the sale of the company does not go ahead.
Precious Metals
Another thing to consider for investors is the price of precious metals. The Eurasia Mining share price is closely tied to the price of platinum group metals (PGMs) and gold. If the price of Eurasia Mining’s produce goes down in the future then it will count for less that there mining operations are solid. This is worth consideration for those looking to invest in Eurasia Mining.