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Imagine investing £ 20,000 in early January and now it is worth it £ 56,000! That is the growth in which some investors Eurasia mining (LSE: USA) have seen in less than three months, thanks to the price of the action that rises 181% since the change of the year.
However, for five years, the price of the action has fallen by 64%.
Looking back even more (after all, I am a long -term investor), the action has negotiated in cents since before the change of the century, but in the years before that, he had been operating north of a couple of pounds per action.
So, although Eurasia has increased in 2025, in the long term, it has destroyed a significant value for shareholders.
What is happening and turned the tide?
A new year, a new geopolitical environment
The tide has become in a way.
Eurasia has spent the last years looking for a buyer for its key assets, which are mining sites in Russia.
That process had gone at a slow pace. Eurasia had raised some cash along the way, without which his ability to continue as a company in progress would be doubtful.
In recent months, they have seen a change in the international geopolitical environment, with the potential that Russia is better integrated once again in the global financial system of what has been since he launched his great scale war in Ukraine.
That could facilitate Eurasia to find a buyer for their assets, or potentially a way of using them in itself.
Zero substantial news of the company, but an increase in the price of the shares of 181%
Even so, is that enough to explain the 181% increase in the price of the shares seen so far this year?
The answer seems to be yes, it surprises me.
Eurasia has not issued any substantive news update this year. To date, there are no changes in the known progress of the company's attempts to download its assets that at the end of last year.
From what I can say, the high price of the shares reflects the investor hopes That a changing geopolitical reality and its implications for international investment in Russia will help the company unlock the value of its mining assets, but there is no specific sale agreed. plan until now.
I will not go anywhere near this part
The price of Eurasia mining shares is still in cents and this year's performance has certainly caught my attention.
But I have no plans to invest. The price increase seems speculative to me in the absence of concrete news about progress towards a sale of assets.
The mining rights of Eurasia could be potentially valuable in the right hands. Combined with the speculative atmosphere, which could boost the price of even higher shares from here.
But as an investor, I see a company that makes losses with a weak balance, there are no commercial income to speak, a large geographical concentration of risk and, at least, at least, there is no confirmed exit plan to sell its assets.
I would not touch Eurasia's actions with a bargepole at this time.
(Tagstotranslate) category. Growth-Shares