You can almost count the number of junior mining companies that have been able to make a success of mining in Russia on one hand.
Theres Amur Minerals, which has admittedly taken a very long road. Theres Azarga Metals (CVE:AZR), which is working up a silver project in Russias Far East. And theres Eurasia Mining PLC (LON:EUA), which has established a successful alluvial platinum mining operation at West Kytlim in the Urals.
At one time or another all of these companies have grabbed headlines as they negotiate the sometimes complex Russian licensing system and do their level best to assuage the nerves of investors chary about political risk.
Its arguable, though, that Eurasia has been the most successful, given that its track record of platinum group metals production at West Kytlim can now be measured in years rather than months and, more to the point, that its actually making money.
True, its still a relatively small company, with a market capitalisation just shy of £46mln. But, as the jump in its share price over the past two days shows, investors are now beginning to wake up to its potential.
First off was Fridays surge, which took the shares back over the 1p mark to a three year high of 1.065p. It was prompted in part by the decisions of holders of £85,000 worth of warrants to pony up and take the shares the warrants offered.
In turn, the company was also prompted into making additional statements about its cash situation.
Put simply, its got enough.
That may not sound like a big deal to investors not well versed in the mining scene.
But anyone whos been through the hardships of the prolonged bear market that weve been in for years now knows well enough that for a junior company, especially one thats still only beginning to edge away from its “explorer” tag, such a statement is like gold.
But, because the announcement on Friday came quite late in the day, the market didnt have time fully to digest the news.
So, come Monday, the shares soared by another 68% to 1.79p, putting Eurasias shares well above their previous five-year best, up by more than four times in the space of two days.
The Eurasia statement talked about ongoing cashflow and a recent boost to margins at West Kytlim being enough to fund tRead More – Source
