Europa Metals Ltd (AIM:EUZ, JSE:EUZ) has expressed a degree of frustration over the slide in the share price. Since resuming trading on AIM last week, the stock has fallen close to 19%. The company insists there’s no reason for the drop and argues that its shares, worth 1.3p each, are trading well below their implied value.
Europa holds seven million shares in Denarius Metals, which, based on recent pricing, suggests an underlying value of between 2.5p and 3p per Europa share—far above its current market price.
Unlike many small caps, Europa hasn’t tapped investors for cash in over two years. Instead of diluting shareholders, directors have accrued their own salaries to keep the company on track while securing a transaction that puts it on firmer footing.
With six months to complete a deal that meets AIM’s reverse takeover rules, management says it is exploring all options and will update investors in due course.
Earlier this week, Europa recently opted not to extend exclusivity over the Tynagh project. The decision means the company is no longer pursuing the potential acquisition of the historic Irish zinc and lead mine, choosing instead to focus on other strategic opportunities.