Eurasia Mining is a Russian-focused company dedicated to mining gold and platinum metal groups, including palladium, rhodium and iridium and platinum.
The firm is focused on environmentally-friendly metals for green energy applications, including battery metals such as nickel, copper and cobalt for electric vehicles (EVs) and PGMs for utilisation in catalysts and green hydrogen production.
The company operates in Russia and is focused on several projects including its Kola Battery Metals and PGM site, its West Kytlim Platinum Group Minerals (PGM) and gold mine, and its Nittis-Kumuzhya-Travyanaya nickel deposit.
Eurasia’s Kola Peninsula site covers nine projects in a legally binding agreement with Rosgeo and the Mochetundra mine complex, making the project one of the major global sites for combined resources.
The group confirmed that it had trebled its production capacity at its West Kytlim mine in its 2021 interim report.
The interim report also noted a nine-fold rise in revenue from the mine compared to the same period in 2020.
Where are the prices of gold and PGMs going?
The price of gold has risen 13.8% to £1,466.39 per ounce and the price of platinum has risen 5.4% to £755.87 per Troy ounce in the last six months, increasing the company’s potential for revenue.
The price of palladium rose 18.4% to £259 per ounce, and has been a steady contributor to Eurasia’s revenue stream, with the company’s revenue continuing to rise on the precious metals’ prices alongside the rising cost of rhodium and iridium.
How Has Eurasia Mining Been Impacted By Anti-Russian Sanctions?
Eurasia Mining is focused on Russia, however the company has issued several statements assuring investors that it holds no ties to Russian banks and the sanctions have not prevented the group from executing its strategy.
The mining group also said that the weakening of the rouble will only serve to benefit its bottom line.
There is no guarantee that Eurasia Mining will remain secure from sanctions indefinitely, so its current lack of interruptions should not be taken as absolute certainty for the company’s production going forward in 2022.
What were its latest financial results?
Sale of platinum and other metals accounted for £425,965 in six months to June 2021 for its revenue, against the sale of platinum and other metals hitting £937,962 in the 12 months to December 2020.
The mining group reported a profit for the six months to June 2020 of £1,465,922 compared to a profit of £3,693,308 in the 12 months to December 2020.
The company did not report a dividend in its half-year results for 2021.
Eurasia mining has seen its share price fall 43.2% year-to-date, however the stock has made a comeback in the last month with a spike of 89% to 13.5p.
Is Eurasia Mining a buy?
Eurasia Mining has a historically strong revenue and its focus on metals with applications for EVs and green energy projects will see the value of its product climb as the international markets seek out its PGMs for renewable energy production.
The price of gold has also remained a reliable safe haven for investments, and looks set to continue its upward trajectory into 2022.
However, purchasers should exercise caution in light of Russia’s war in Ukraine. Eurasia Mining might continue to remain unaffected by sanctions against the Russia, but it is not necessarily a guarantee that the shares will stay safe over the long run if the war continues over the coming months.