Eurasia Mining shares sank on Thursday as investors reacted to the news the company had made little progress in the disposal of its Russian assets or sales of stockpiles worth £3.5m.
The Company said it has prioritised the sale of its Russian assets, but no binding agreements have yet been reached. Shareholders were seemingly unimpressed with assertions that active discussions continue with counterparties in Hong Kong and Russia.
Eurasia Mining shares were down 28% at the time of writing.
In addition to an update on their asset sale, Eurasia provided an overview of their ongoing operations. The company has enough cash to see them through the first quarter, but there are uncertainties around the funding situation past this.
As of 30th November, the Company had approximately £517,000 in cash reserves, held outside Russia and not exposed to ruble fluctuations.
The Company has sufficient working capital through the first quarter of 2024, without the proposed sale of £3.5 million in unsold concentrate inventory. Discussions around the sale of concentrate stockpile from the West Kytlim mine are ongoing, but have been for some time now.
The West Kytlim mine and infrastructure are being maintained for sale. No production is expected in 2024, as in 2023. The 2022 concentrate stockpile is securely stored off-site, with sales discussions ongoing.
A new license was recently acquired for the promising Travyanaya area, which will be added to assets available for potential sale. No work is planned there in 2024.
The Monchetundra and Nyud projects have no planned reserve updates or expenditures. The Nyud expenditure was written off in 2022 results after the expiration of the Rosgeo Agreement.