Eurasia Mining is a London-listed Russian-focused company that mines palladium, platinum, rhodium, iridium and gold. Although the company has said they have not been impacted by the different sanctions imposed since the start of 2022, Eurasia shares have cratered 68% to 7.7p.
The company has a number of projects in Russia including the Kola Battery Metals asset, the West Kytlim Platinum Group Minerals and the Nittis-Kumuzhya-Travyanaya nickel deposit.
After the West issued sanctions on Russia, London-listed shares with exposure to Russia, including Eurasia, suffered dramatic volatility in their shares. However, Eurasia Mining’s board said that the company’s operations and strategy remain untouched by sanctions.
Increasing commodity prices provided a brief reprieve for the Eurasia share price as sanctions applied pressure on metal prices, but the concerns around potential sanctions has dragged on Eurasia shares.
Gold, PGMs and Battery Metals
Eurasia has diversified exposure to palladium, platinum, rhodium, iridium and gold through a range of producing assets, and those currently undergoing evaluation.
Eurasia’s portfolio has a distinct focus on battery metals and hydrogen and is well placed to benefit from the EV and clean energy revolution.
Looking at the trend in the price of metals mined by Eurasia, the company may have the potential for higher revenue in the coming year compared to the previous year, if it manages to mine, and sell, the same amount of metal.
In addition, potential M&A activity could unlock value in the underlying portfolio.
Eurasia Mining Shares
Eurasia Mining shares have dropped 68% in 2022 as investors fled from the Russia-focused miners’ stock in the wake of the Russia-Ukraine war. However, this may provide a buying opportunity for brave investors who can look through the geopolitical tensions to the underlying value in Eurasia’s assets.
Current the shares have a negative ROCE of 44.9 due to generating losses in its interim results, and a price to NAV of 18.
Despite the Board explaining to investors that sanctions have no impact on Eurasia’s Mining operations and strategy, investors should remain cautious of potential threats imposed by sanctions in the future, and closely examine the upcoming full-year results for any hint of disruption since February 24th.
