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Europa Metals cools giddiness, says “knows no reason” for significant jump in share price

Metal price trends favour the Toral project and a share consolidation leaves the AIM stock less volatile, and more easily comparable to peers, though Europa said no material event has triggered the recent surge

Europa Metals Ltd - Europa Metals cools giddiness, says “knows no reason” for significant jump in share price

Europa Metals Ltd (LON:EUZ) told investors that it knows no reason or material event to explain the significant rise in the company’s market value, following its general meeting which enabled a capital restructuring.

Nonetheless, the company noted a number of details about the company, its assets and stock amidst the recently soaring share price – it rose from 5p on July 21 to reach 20p yesterday.

On AIM, the update put a dampener on trading. Europa Metal shares were down 2.25p or 11.25% changing hands at 17.25p in Thursday morning’s deals.

READ: Europa announces share consolidation

In its statement, the company noted that pre-consolidation its stock was “highly volatile” and more recently this has returned to "roughly that of 12 months ago".

“The new, post share consolidation, pricing normalises Europa Metals next to the company's peers and allows easier comparison of the equity valuation in the context of the company's core asset, the Toral lead, zinc and silver project in Spain, which has been significantly advanced by the company,” Europa said.

It noted that current metal pricing trends are favourable to the Toral project (which is host to lead, zinc and silver), and, work on recoveries and grade remain in progress.

The company said it has recently concluded a series of cost-cutting measures.

Additionally, it said that the recent rise in share price is positive for the potential exercise of outstanding warrants which would raise funds for the company. Meanwhile, it also continues to monitor the trading disparity between Altx and AIM.

Europa added that it intends to give a new strategic outlook on operational and group activity, once a series of current workstreams have been completed.

Quick facts: Europa Metals Ltd

Price: 10.2501 GBX

AIM:EUZ
Market: AIM
Market Cap: £5.04 m
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