Eurasia Mining PLC (AIM:EUA)’s 2022 financial year was marked by challenges in navigating sanctions and geopolitical uncertainty surrounding its Russian-based mining assets.
Due to the absence of revenue generation, the group made a loss before tax of £7.2mln for the year ended 31 December 2022, compared to losses of £3.1mln in the year prior.
Eurasia’s cash position as of 29 June was £1.7mln, down from £22mln in 2021, with the group’s unsold PGM concentrate valued at £4.1mln. Cash reserves are held in US dollars and pounds, thus not subject to rouble volatility.
Chair Christian Schaffalitzky called 2022 a “uniquely challenging year” for Eurasia and the mining sector as a whole due to the ongoing conflict in Ukraine as well as supply chain interruptions.
This has, however, resulted in positive price changes for the group’s metals.
Eurasia made the decision to stockpile ore from the West Kytlim region in Russia so as not to realise any revenue upside from the country. The board remains engaged in the sale process of its Russian assets.
Looking forward, Eurasia is focused on expanding its business in various ways, including the development of hydrogen projects outside of Russia and exploring new mining opportunities in investment-friendly jurisdictions.
The company remains dedicated to selling its assets in Russia, which include the West Kytlim operating mine, the Monchetundra Project mining license, the NKT brownfield project, and the entitlement to the Nyud brownfield project.
“We look forward to providing our shareholders with further updates regarding our key objectives, including the possible sale of our Russian assets,” said Schaffalitzky.