Proactive Investors - Run By Investors For Investors
Why invest in EUA?
Eurasia Mining plc: DEEP DIVE
OVERVIEW

Eurasia Mining beginning to build scale in platinum group metals portfolio, helped by track record of competence in Russia

Eurasia has huge upside at the US$2bn Monchetundra project and is supported by cash flow from West Kytlim
Eurasia Mining beginning to build scale in platinum group metals portfolio, helped by track record of competence in Russia
OVERVIEW: EUA The Big Picture
Around 165kg of platinum was produced from West Kytlim in 2018
  • Long track record in the mining and exploration business
  • Significant experience of operation in Russia
  • Now in production 
  • Major upside still on the table

 

What Eurasia Mining does

Eurasia Mining plc (LON:EAU) is one of the AIM market’s longest-standing mining constituents. In recent years the company has made a speciality of moving precious metals assets in Russia up the value chain, from the exploration stage, through a process of economic assessment and into production.

What Eurasia Mining owns

Eurasia is currently in production at its West Kytlim platinum and gold mine in the Ural mountains. This operation is being run on Eurasia’s behalf by a contractor, with a 65/35% revenue split in favour of the contractor.

Eurasia also owns the Monchetundra platinum and palladium deposit on the Kola peninsula in north European Russia, which boasts a resource of two million ounces, and which is currently the subject of economic studies. The in-situ value of the metal is estimated at over US$2bn.

The third significant asset owned by the company is the Semenovsky gold tailings project, which contains three million tonnes of sand grading 1.2 grams per tonne gold.

Inflection points

The West Kytlim project is currently gearing up for the 2019 production programme, once the winter thaw gets underway. In 2018 the Russian operators produced 165 kilogrammes of raw platinum from the project, exceeding expectations by 65%, so there is now a good track record of competence being established at the project.

At Mochetundra, the mining license is now in place, as is an engineering, procurement and construction contract with a major Chinese contractor. The next logical step is to commence production.

Chief executive Christian Schaffalitzsky strikes a positive note

"We are pleased to be working again with the team that proved so effective during 2018,” Schaffalitzsky said after the programme of works for West Kytlim was announced in January 2019.

“They were a very efficient operator last year, with a zero accident record, and financially motivated to develop the asset in a sensible manner. Furthermore, we are looking at ways to improve metal recoveries, based on the measured efficiency of the existing process flowsheet.”

And at Montechundra he’s equally upbeat: “Again we wish to thank the officials involved in moving the license documentation along so soon after the final decree from Prime Minister Medvedev. We look forward to advancing the project through construction now that the final permits are entirely in place.”

 

 

View full EUA profile View Profile

Eurasia Mining plc Timeline

Related Articles

1543505683_Jubilee---workers-at-Hernic.jpg
November 30 2018
Jubilee Metals will be adding significant extra production capacity in the short to medium term
1538664421_diamond-drill-350.jpg
October 04 2018
Last month, Jaxon said it had identified Backbone as a gold-bearing tourmaline breccia zone with a 1,000-metre long strike
1549357069_shutterstock_550648666.jpg
February 05 2019
Eurasia has huge upside at the US$2bn Monchetundra project and is supported by cash flow from West Kytlim

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use