While the stock’s still nowhere near trading at its peak 2020 levels, enjoying a triple-digit gain in such a short space of time is understandably exciting. So should investors be considering this small-cap growth stock for their portfolios today? And where might the share price be in the next 12 months?

Investigating gains

With the stock more than tripling over the last 12 months, surely management’s been able to deliver some impressive operational progress, right? Well, no. Despite what the EUA share price would suggest, the company hasn’t really made any tangible progress.

Its revenue stream remains almost negligible, earnings are still in the red, and the company’s still struggling to sell off its Russian mining assets, including its West Kytlim gold mine, its Monchetundra mining licenses, the NKT project, and its entitlements to the Nyud projects.

However, it’s the asset sales that seem to have gotten investor attention. With the potential for a massive buyout, investors have been speculating that a deal could soon emerge. And subsequently, one institutional analyst currently has a 70p price target for the share price by this time next year.

Part of this speculation’s driven by the expectation of peace negotiations in Ukraine that would allow Russia’s economy to recover. But it’s also linked to the strengthening of the Russian ruble in recent months. After all, this increase in spending power makes acquisitions cheaper for Russian companies.

So is Eurasia Mining about to find a buyer, giving shareholders a large payday? There’s no concrete evidence of this happening. All of the impressive gains seen to date aren’t driven by the firm’s underlying fundamentals, but rather speculation. As such, investors can likely expect extreme volatility moving forward. In fact, anyone who hopped on the bandwagon in March is already down over 40%.

Is there hope for Eurasia’s business?

With the core of its mining assets held in Russia, Eurasia isn’t in an ideal operating position. Nevertheless, management’s seemingly taking steps to pivot the business. The divestment strategy, if successful, will provide ample funding to build out a new mining portfolio and get things back on track.

In the meantime, Eurasia’s recently raised £3.15m through a private placement, supporting the firm’s upcoming dual listing on Astana International Exchange as well as the London Stock Exchange. This opens up a new pool of investment capital for management to leverage.

If the company can raise sufficient capital and find a buyer for its Russian assets, the EUA share price could have plenty of room for growth from today’s prices. However, even in this scenario, it will be a long road before the company will have robust fundamentals to support a stable valuation. In other words, this is an exceptionally high-risk investment right now, even with the seemingly explosive return potential over the next 12 months.

As such, it’s a stock I’m steering clear of.

The post Forecast: in 12 months, the EUA share price could be… appeared first on The Motley Fool UK.

What is going on – and could the latest tumble be an opportunity to add the share to my portfolio?

Lots of hope but limited news

In fact, nothing has been going on. Rather, it is the main focus of recent years that is the issue, namely trying to offload its Russian mining assets.

The strong movement in the share price might seem to suggest there has been some action on that front. In reality however, the company has not made any substantive announcements this year when it comes to progress in its attempts to sell the assets.

That does not mean it has all been quiet in other areas though. Eurasia did announce last week that it plans a new share placing in an effort to boost its working capital, allowing it to fund the costs of maintaining its listing on the London stock market as well as acquiring a listing on the Kazakhstan stock market.

While that news is interesting – without any income from its mines, Eurasia needs cash to keep running – it does not cast light one way or the other on the big question of whether Eurasia will be able to find a buyer for its Russian assets and if so at what price.

High degree of uncertainty

So why has the price crashed? Partly, it reflects the ongoing wait for substantive news. After all, if Eurasia cannot sell its assets then it will likely keep struggling to monetise them effectively. That reflects the various sanctions currently in place let alone the fact that the mining assets it owns are not currently productive on a commercial scale.

The proposed Kazakh listing may also have scared some investors as they ponder what it could ultimately mean for the London listing.

For now Eurasia has not suggested any plan to delist in London, but the Kazakh listing adds a new layer of complexity for a business that is already dealing with a challenging geopolitical landscape for its business.

I see this as uninvestable for me

Still, the fact that Eurasia has managed to sell millions of pounds worth of new shares underlines that some investors continue to see potential value here. The same holds true of the fact that the EUA share price has almost doubled in just three months.

I can see what buyers are excited about: if Eurasia is able to sell its Russian assets at an attractive price, its current valuation could soar. That would likely boost the share price.

But we have no idea what will happen. Eurasia has been trying to sell the assets for a while already, in a buyer’s market. To date it has not been successful in that effort — and there is a risk that it will not be in future, either.

I continue to see this as speculation more than investment, so will not be buying any Eurasia shares for my portfolio.

The post Up 95% this year, why has the Eurasia Mining (EUA) share price now crashed? appeared first on The Motley Fool UK.

Over five years, though, the share price has tumbled 64%.

Looking back even further (I am a long-term investor, after all), the share has traded in pennies since before the turn of the century, but in the years leading up to that, had been trading north of a couple of pounds per share.

So, while Eurasia has boomed in 2025, over the long term, it has destroyed significant value for shareholders.

What is going on – and has the tide turned?

A new year, a new geopolitical environment

The tide has turned in one way.

Eurasia has spent the past several years looking for a buyer for its key assets, which are mining sites in Russia.

That process had been going at a slow pace. Eurasia had raised some cash along the way, without which its ability to continue as a going concern would be doubtful.

The past several months have seen a shift in the international geopolitical environment, with the potential of Russia being better integrated once more into the global financial system than it has been since it launched its full-scale war on Ukraine.

That could make it easier for Eurasia to find a buyer for its assets, or potentially a way to utilise them itself.

Zero substantial company news, yet a 181% share price rise

Still, is that on its own enough to explain the 181% increase in the share price seen so far this year?

The answer appears to be yes, which suprises me.

Eurasia has not issued any substantive news updates this year. To date, there is no change in the known progress of the company’s attempts to offload its assets than there was at the end of last year.

As far as I can tell, the soaring share price reflects investor hopes that a changing geopolitical reality and its implications for international investment in Russia will help the company unlock value from its mining assets – but no concrete agreed sale plan as of yet.

I’m going nowhere near this share

The Eurasia Mining share price is still in pennies and this year’s performance has certainly grabbed my attention.

But I have no plans to invest. The price increase feels speculative to me in the absence of any concrete news about progress towards an asset sale.

Eurasia’s mining rights could potentially be valuable in the right hands. Combined with the speculative atmosphere, that could potentially push the share price even higher from here.

But as an investor, I see a loss-making company with a weak balance sheet, no commercial revenues to speak of, a large geographic concentration of risk, and – as of now at least – no confirmed exit plan for selling its assets.

I would not touch Eurasia shares with a bargepole right now.

The post The Eurasia Mining (EUA) share price is up 181% this year! What’s going on? appeared first on The Motley Fool UK.

Let’s take a look.

What does it do?

The company sells precious metals — predominantly palladium — from its mines in Russia. More precisely, the group wants to sell the output from its mines. But due to sanctions imposed against the country, it’s currently unable to generate any revenue.

As well as owning some sites that are fully commercialised, it also plans to develop others. However, due to the uncertainty surrounding its operations, for the past couple of years its main focus has been trying to sell these assets. As yet, it hasn’t been able to find a buyer.

And until things change, the company looks likely to continue doing very little.

The company seeks to preserve its cash by keeping costs to a minimum. But in the absence of sales, it continues to draw down on its trade finance facility. The amounts lent are secured on the chairman’s shares.

Yet despite the lack of activity, it still has a stock market valuation of close to £200m.

Are things about to change?

The recent share price movement appears to suggest that investors are hopeful things will soon improve. And some of this could be explained by the re-election of President Trump and his moves linked to ending the war in Ukraine.

I think it’s fair to say that Trump is more open to doing business with Putin than his European counterparts. If a permanent ceasefire can be negotiated, I suspect Trump will be inclined to quickly remove Russian sanctions.

Euraisa Mining will then be in a position to sell its metals in America, even if other countries are more reluctant to take its products.

However, this is pure speculation. And this doesn’t feel to me like a sound basis on which to make a sensible investment decision. But the way in which its share price has moved in recent months, suggests there’s plenty of speculators out there.

What’s the company worth?

And that’s another problem. With such a volatile stock price, it’s hard to tell whether its assets are worth more than its current market-cap. At one point, the company was valued at over £1bn, so perhaps they are. However, to be honest, I’ve no idea.

I’m also puzzled as to why the company can’t find any Russian buyers for its metals. According to its accounts, at 27 August 2024, it had stockpiled 239kg of PGM (platinum group metals) concentrate with a value of “not less than” £5m. Apparently, this is being stored in a “secure facility” and discussions have been held with possible buyers. But I’m surprised nobody in the country has a use for them, even at a knock-down price.

Although I’m sure someone will do well if the company’s able to start selling again — or is able to dispose of its assets — at the moment, there are too many ‘unknowns’ for my liking. For this reason, I’m not going to invest.

The post Up 85% in a month! Is the Eurasia Mining (EUA) share price on the way back? appeared first on The Motley Fool UK.

What on earth is going on – and could I still aim to make some money if I buy the shares today?

The difference between investing and speculating

Let me answer the second question first. I have no plans to put money into Eurasia Mining shares.

That is because I like to invest in what I see as great businesses that are trading at an attractive share price. By contrast, buying Eurasia Mining shares seems to me more like speculation than investment in the current geopolitical environment.

It is what is sometimes known in the City as a “special situation”. Special situations can be very lucrative (as the soaring EUA share price has lately shown), but also risky.

Right assets, wrong place, wrong time

So, what is Eurasia’s situation?

It owns some potentially valuable mining assets. They are not currently generating meaningful revenue.

That puts me off to a large extent, but it is not uncommon. A lot of small mining companies with a share price in pennies (as EUA has) own mines that are not in full production, or simply the rights to mine an area.

The challenge with Eurasia’s mining assets is that they are in Russia. For some time it was trying to find a buyer for them, in what looked more like a buyer’s than a seller’s market.

The share price has jumped on hope more than facts

So, does the 189% jump in the EUA share price reflect a deal being struck? That would be an obvious conclusion to draw as to why a company that last year was facing liquidity challenges now has a market capitalisation of £180m.

In fact though, Eurasia’a situation has not changed. It has not issued any news to the stock exchange this year about any possible sale of its assets.

But then what is going on with the share price leap?

I think the most likely answer is that investors (or speculators) think the recent shift in US policy towards Russia could presage a more constructive business environment there again for western companies.

Maybe they will. Maybe Eurasia will find a buyer more easily. Or maybe it will end up being able to work its own mines in Russia.

To me though, that all seems highly speculative for now – and certainly does not adequately justify 189% share price growth in two short months.

I would rather invest on the basis of a proven business model and what look like healthy commercial prospects, at an attractive share price. Eurasia’s long-term stock market history does not speak to a proven business model.

As for its commercial prospects, for now little is certain and the geopolitical risks remain very high even before getting into the specifics of the company’s business. I have no plans to buy.

The post Up 189% so far in 2025! What’s going on with the EUA share price? appeared first on The Motley Fool UK.

Past price action is not necessarily an indication of what may come in future.

Still, it has me wondering: should I add the share to my portfolio?

Taking the long-term view

As a long-term investor, my reaction on seeing that impressive one-year performance is to wonder how typical it is of the longer trend – and what if anything may change that trend.

Over five years, the share price has sunk 27%.

Even that number does not capture the full story, as during that period the price actually touched 40p. So some investors today could be sitting on a much higher paper (or actual) loss than 27%.

The catalyst for the rising price over the past 12 months — including an 82% increase since the end of May — has been the ongoing question of whether lossmaking Eurasia will be able to offload its Russian assets and if so whether it could get a good price for them.

Along the way last year, it issued new shares as part of a trade finance agreement. Given the company’s financial position (net cash outflows in the first half were £1.2m), I see a risk of further shareholder dilution in future if Eurasia needs to bolster liquidity further.

So, what is the latest news of a possible sale?

It remains a wait and see, with the company repeatedly emphasising last year that there is no guarantee of any sale in future.

Investing, not speculating

Here, I think, is where being an investor not a speculator helps me make a clear decision, quickly.

Warren Buffett asks (in general, not specific to Eurasia) why someone might want to buy a share if they are not attracted by the idea of owning the whole company.

Eurasia has a market capitalisation of £72m. But the company had no turnover in the first half of last year, is consistently lossmaking and its key assets (in Russia) are basically stranded in a geopolitical quagmire over which it has limited, if any, control.

Would I want to buy that company in general, let alone for £72m? No. Absolutely not.

So, do I want to buy a share in EUA at today’s price, or almost any price? Again, no.

That does not mean that this could not be a very lucrative opportunity. If Eurasia can offload its assets at a good price, I reckon the share price could shoot up even from where it currently stands. Bear in mind that 40p price – just a few years ago, enough buyers and shareholders felt that was justifiable to make it happen.

But buying today in the uncertain prospect of an asset sale is far too speculative for me.

Trade financiers and speculators with a radically different risk appetite to me might do very well here (or very badly) at some point. As an investor, though, I will not be joining them.  

The post The Eurasia Mining (EUA) share price has jumped 43%. Time to buy this penny share? appeared first on The Motley Fool UK.

That might sound good. Or even great. But in fact, the shares rose as much as 3,690% between five years ago and the following year, 2020. So at one point my potential £1,000 investment would have been valued at almost £38,000.

EUA has clearly captured the imagination of some investors over the past few years. Even now, though it is well below its former highs, the five-year chart shows a very positive return.

Could the good times return – and ought I to invest in anticipation?

On the block

Let me start with my conclusion. I have no plans to act on the EUA share price even though it stands at just a couple of pence.

The firm describes itself as a “palladium, platinum, rhodium, iridium and gold mining company”. But in the first half it recorded zero sales. That is because, while it owns mining concessions, it is not currently extracting those precious metals commercially and selling them. Instead, Eurasia has been trying to sell its assets for some time.

As the company explained in its interim results statement last month, “our strategy continues to focus primarily on the potential sale of the company’s assets in Russia”.

The longer that process drags on, the higher the liquidity risk that arises from the ongoing maintenance and administrative costs faced by Eurasia. Just last month it entered into a trade finance facility to provide additional liquidity.

Thinking as an investor

That wild ride in the EUA share price over the past few years – and arguably its current £62m market capitalisation – points to something. There is, potentially, significant value in the company’s assets.

But having potential value and unlocking that value are two different things. Sometimes they can be very close together. On other occasions they may be very far apart.

Eurasia has been looking for potential buyers for its assets for some time. It may yet find one, but the lack of apparent progress so far is not especially encouraging. It is hoping to sell the Russian assets in what is effectively a buyer’s market. That could affect the chance of getting a deal and certainly could affect the chance of getting a deal at a highly attractive price.

Eurasia could yet sell its Russian assets and, even at a knockdown price, it may realise more than its current market capitalisation. That could send the EUA share price upwards. Conceivably, if the price was good enough, the penny share could surge. Whether it might double again would depend on just how good that price was.

But the risks involved (such as no sale at all) are substantial. For now, this feels more like speculation than investment to me, so I have no plans to invest.

The post The EUA share price has doubled in five years. Can it double again? appeared first on The Motley Fool UK.

The company announced in the summer that it had “a limited cash runway in the United Kingdom”, with working capital sufficient only for the next few months. The shares were suspended from trading.

However, they are now trading normally once more. Could this offer an opportunity for me as an investor?

More clarity about the medium term

The shares were restored to trading status this month following the belated publication of Eurasia’s results for last year.

Revenues grew tenfold to £2m, while the company’s total comprehensive loss fell but still came in at £4.8m. The company continued to explore possible sales of its Russian assets, but so far to no avail. The potential sale of those assets is the primary strategic focus of the company for now.

This month, EUA announced it has agreed a convertible trade finance loan to meet its working capital requirements. The initial drawdown on that loan, approximately 40% of what might ultimately be available, is expected to see the company through another year. On top of the loan, a tax refund could help Eurasia’s cash position.

Between a rock and a hard place

So in the short to medium term at least, Eurasia’s financial position seems to have been strengthened. That was not a painless process. All its directors have agreed to defer payment of accrued fees and expenses from the past 12 months as well as any future compensation due, until the loan is repaid in full.

But while the loan buys much needed time, what about the underlying health of the business?

Eurasia is trying to sell Russian assets, as it has been for some time already, in what is effectively a buyer’s market. That may not bode well for the price it can achieve. But the longer it waits to sell, the more working capital it may end up needing. That could lead to further loans, if they are available, or potentially share dilution.

Set against that is the £62m market capitalisation of the company. I think that presupposes significant value in the Russian assets. That seems reasonable to me and, if those assets are successfully sold at a good price, I reckon the current EUA share price could come to be seen as a bargain in retrospect.

The problem as I see it is that there is no guarantee that a sale will happen. Even if it does, it could be that the price is not a good one given the limited pool of potential buyers.

On that basis, this is too speculative an investment story for me right now. From here, I think the EUA share price could yet soar if it strikes a great deal to sell its Russian assets – but equally it might sink if it does not. I have no plans to invest.

The post Up 385%! Where might the EUA share price go now? appeared first on The Motley Fool UK.

What is going on – and could this sudden price collapse offer a buying opportunity for my portfolio?

Ongoing focus on exiting Russia

The company issued an announcement today (10 June) regarding a recent leap in the Eurasia Mining share price. Indeed, even after the fall today, the shares are well above where they stood at the end of May (and almost quadruple where they were five years ago!)

The statement said the company notes the recent sharp share price increase, along with online speculation regarding a key feasibility study for its Monchetundra project in Russia. But, as Eurasia points out, that study was completed last summer. Since then, the site has been maintained but there have been no “material developments” concerning the study.

The statement concludes: “The primary focus of the Company remains the possible sale of its Russian assets although, as ever, there can be no guarantee that Eurasia will enter into binding agreements regarding the sale”.

Unusual price action a potential sign of frothiness

The sort of apparently unfounded surge followed by sudden crash we have seen in the Eurasia Mining share price over the past 10 days is a red flag to me as an investor.

At some point, many share prices become somewhat decoupled from their business fundamentals. But when a price swings by this much, essentially due to rumour, it can be a sign that speculators not investors have charged in – sometimes only to then charge out pretty fast.

That risk is usually elevated in smaller companies with fewer available shares available in the market. Eurasia Mining is a penny share and its current market capitalisation is just a little over £50m.

Focus on the business prospects

On its own though, that does not necessarily bother me. As a long-term investor, I focus on the investment case for a given business. Sudden swings like that seen in the Eurasia Mining share price could even give me a buying opportunity for a share I like.

In the case oF Eurasia though, I had no plans to buy in May or during the price surge earlier this month – and I have not changed my view.

The consistently lossmaking company has seen its formerly modest revenue tumble, to just £0.1m last year. Against those financials, the market capitalisation looks high to me.

As with many small mining companies, the valuation reflects how investors perceive the business’s potential, not its current performance.

Its Russian assets could yet turn out to generate a lot of cash when sold. But, for now, when it comes to western companies offloading assets, Russia looks like a buyer’s not a seller’s market. As the company reiterated today, there is no guarantee a deal will be struck to sell its assets there.

The post As the Eurasia Mining share price crashes, is it now a bargain? appeared first on The Motley Fool UK.

But do the company’s prospects now mean there’s an attractive buying opportunity?

After all, it has been handsomely rewarding over the past few years. Could the recent tumble be a blip, or a sign of more woes ahead?

Five-year performance

In fact, ‘handsomely rewarding’ may be an understatement!

Over the past five years, Eurasia Mining shares have risen by 528%. It does not pay a dividend, but that share price performance alone means that if I had invested £1,000 five years ago, my stake would now be worth almost £6,300.

That is even after the past year’s fall in the price of this penny stock. In fact, if I had bought five years ago today and sold my Eurasia Mining shares in December 2020, I could have turned £1,000 into £89,000. Wow!

A return like that is not just the stuff of penny stock investor dreams. It is the type of performance most investors would love!

Difficult times

The immediate cause of the steep fall in Eurasia Mining shares over the past year has been its focus on operations in Russia.

The business environment for overseas companies doing business in Russia has changed dramatically since the start of last year.

In its interim results last autumn, the miner said sanctions had not significantly affected its operations. Its cash balance meant it could stockpile what it mined, with an eye on a future change in the political environment.

Eurasia has also looked at selling its Russian assets.

But I see the current environment as a buyers’ market, which might not be good for sellers. The company said yesterday that it continues to evaluate sale options and said it “acknowledges shareholder frustration regarding the duration of the sale process”. It added there is no guarantee that any sale will materialise.

Eurasia ended March with a cash position of around £3m and stockpiles of mining output it is holding for future refinement.

Risk and reward

I think Eurasia will continue to struggle to find a suitable buyer for its Russian assets at an attractive price. Meanwhile, its ability to generate revenue is hurt by limits on its ability to refine and export products.

Eurasia Mining shares have been hugely rewarding for shareholders over the past five years. But its short- to medium-term business trajectory will be shaped by geopolitical events totally outside its control.

In the long term, if sanctions persist, that could make its previous business model unworkable. Conversely, if sanctions ease, Eurasia’s mining output could help the shares soar once more.

But I doubt sanctions will ease any time soon. The political risks that are affecting the price of Eurasia Mining shares are far too high for my tolerance. I will therefore not be investing.

The post If I’d invested £1,000 in Eurasia Mining (EUA) shares 5 years ago, I’d be up thousands of pounds! appeared first on The Motley Fool UK.