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Eurasia Mining says West Kytlim is truly delivering

At Monchetundra, Eurasia is expecting the completion of the application process for a mining permit on the 2mln ounce platinum group metals deposit defined by the company

Platinum
PGMs are key metals for future technologies

Full production is ongoing at Eurasia Mining plc’s (LON:EUA) West Kytlim mine in the Urals.

In it full-year results statement, the miner said the new contractor at West Kytlim mine is working very well.

READ: Eurasia Mining says West Kytlim is now fully operational​

Between May 3 and June 22, 69.5kg (2,235 ounces) has been produced and the run-rate is scaling up with the current record single-day production standing at 6.9kg (221 oz).

Grades for the period averaged 0.81 grams per cubic metre.

At the company’s much larger Monchetundra development project on the Kola Peninsula, the mining licence application is progressing “somewhat ahead of schedule”, after a provisional Rosnedra approval in early February 2018, the company said.

The profit & loss numbers announced by Eurasia are very much of the “rear-view mirror” kind, with sales clocking in at a modest £183,998, up from £139,862.

Increased administrative and financing costs meant the company posted a loss before tax of £2.14mln for 2017, versus a profit of £994,240 in 2016.

“2017 was a hugely important year for the company, as we stepped up to production at the West Kytlim mine. Production remained inconsistent throughout 2017, as our contractor struggled financially, and was ultimately replaced by a more experienced contractor with a stronger balance sheet; however, during 2017, a foundation of knowledge was established, while also progressing important infrastructural elements at the mine site, and this created a solid base from which to launch the 2018 mining season,” said Christian Schaffalitzky, the executive chairman of Eurasia.

“We, the directors, feel that with the West Kytlim mine truly delivering, and our Monchetundra project advancing through permitting, this year and the forthcoming years will be transformational for the company,” he added.

Quick facts: Eurasia Mining PLC

Price: 7.2 GBX

AIM:EUA
Market: AIM
Market Cap: £196.18 m
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