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Think about investing £20,000 in the beginning off January and it now being value over £56,000! That’s the development some buyers in Eurasia Mining (LSE: EUA) have seen in below three months, due to the share value hovering 181% for the reason that flip of the 12 months.
Over 5 years, although, the share value has tumbled 64%.
Trying again even additional (I’m a long-term investor, in spite of everything), the share has traded in pennies since earlier than the flip of the century, however within the years main as much as that, had been buying and selling north of a few kilos per share.
So, whereas Eurasia has boomed in 2025, over the long run, it has destroyed vital worth for shareholders.
What’s going on – and has the tide turned?
A brand new 12 months, a brand new geopolitical setting
The tide has turned in a method.
Eurasia has spent the previous a number of years in search of a purchaser for its key property, that are mining websites in Russia.
That course of had been going at a sluggish tempo. Eurasia had raised some money alongside the way in which, with out which its skill to proceed as a going concern can be uncertain.
The previous a number of months have seen a shift within the worldwide geopolitical setting, with the potential of Russia being higher built-in as soon as extra into the worldwide monetary system than it has been because it launched its full-scale warfare on Ukraine.
That might make it simpler for Eurasia to discover a purchaser for its property, or probably a strategy to utilise them itself.
Zero substantial firm information, but a 181% share value rise
Nonetheless, is that by itself sufficient to clarify the 181% improve within the share value seen to date this 12 months?
The reply seems to be sure, which suprises me.
Eurasia has not issued any substantive information updates this 12 months. So far, there is no such thing as a change within the identified progress of the corporate’s makes an attempt to dump its property than there was on the finish of final 12 months.
So far as I can inform, the hovering share value displays investor hopes {that a} altering geopolitical actuality and its implications for worldwide funding in Russia will assist the corporate unlock worth from its mining property – however no concrete agreed sale plan as of but.
I’m going nowhere close to this share
The Eurasia Mining share value remains to be in pennies and this 12 months’s efficiency has actually grabbed my consideration.
However I’ve no plans to take a position. The worth improve feels speculative to me within the absence of any concrete information about progress in direction of an asset sale.
Eurasia’s mining rights might probably be useful in the precise fingers. Mixed with the speculative ambiance, that would probably push the share value even greater from right here.
However as an investor, I see a loss-making firm with a weak stability sheet, no business revenues to talk of, a big geographic focus of danger, and – as of now no less than – no confirmed exit plan for promoting its property.
I might not contact Eurasia shares with a bargepole proper now.
