Thursday, September 28th 2023

Eurasia Mining

keep up to date with the latest news

Date

pdimage.jpg

Metals Markets Continue Performing Strongly

Shares in Eurasia Mining Plc. have rallied hard over recent weeks as the news broke of strong interest surfacing from the east. The company announced a brace of investment banks, VTB Capital one of Russia’s largest banks and the reputable CITIC of China had shown keen interest. The banks are working on a success fee basis, incentivising all parties to close a deal, Shares erupted from its 52wk low at 0.40p to 52wk high at 4p. Whilst there has been a mixed reaction from those commenting on recent events one has to question the motivation for investment banks to sell a company’s assets with ease as the companies valuation increases tenfold.

The typical status quo for resource companies motoring in the market would be to consider issuing new equity, the board of directors at Eurasia has reiterated that there would be no need for a placing. RNS’s roll in showing warrant holders are only too happy realising value, invariably supporting the company’s balance sheet and presenting an antidote to short-sellers who maybe be circling like vultures waiting to pick the eyes at the hint of a failed deal.

One may be full of contempt at such a rise in the company’s market cap had they not built a strong argument by reducing the firm’s debt yet moving towards improved production at West Kytlim as reported in late September, strengthing the companies constitution with a number of key hires, prior to the monumental rise.

What we now know is that should a deal conclude or fail with the Russian & Chinese banks the company is well and truly pegged on the map, displaying a better financial position coupled to improved technical capability as Eurasia systematically moves forward.

We suggest investors manage their expectations over the short term however encourage them to monitor the news flow to further validate or void future positions, ” Fortunes favour the brave ” but only a fool rushes in. We at TMS, we intend to review the company again in the not too distant future.

You can see more from Eurasia Mining by clicking below

[wpvideo gEoMmkGs]

The author was not remunerated nor holds shares in the company

[wpvideo a1D0f82Q]

You can join Clear Capital Markets and open an account by clicking here

 

 

More
articles