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Think about investing £20,000 firstly off January and it now being value over £56,000! That’s the progress some buyers in Eurasia Mining (LSE: EUA) have seen in underneath three months, due to the share worth hovering 181% because the flip of the yr.
Over 5 years, although, the share worth has tumbled 64%.
Wanting 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 yr, a brand new geopolitical surroundings
The tide has turned in a technique.
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 could be uncertain.
The previous a number of months have seen a shift within the worldwide geopolitical surroundings, 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 option to utilise them itself.
Zero substantial firm information, but a 181% share worth rise
Nonetheless, is that by itself sufficient to elucidate the 181% enhance within the share worth seen to this point this yr?
The reply seems to be sure, which suprises me.
Eurasia has not issued any substantive information updates this yr. Up to now, there isn’t any change within the recognized progress of the corporate’s makes an attempt to dump its property than there was on the finish of final yr.
So far as I can inform, the hovering share worth 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 worth remains to be in pennies and this yr’s efficiency has definitely grabbed my consideration.
However I’ve no plans to take a position. The value enhance feels speculative to me within the absence of any concrete information about progress in direction of an asset sale.
Eurasia’s mining rights may probably be helpful in the appropriate fingers. Mixed with the speculative environment, that would probably push the share worth 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 at the least – no confirmed exit plan for promoting its property.
I might not contact Eurasia shares with a bargepole proper now.
