Eurasia Mining

pgm miners- eurasia mining

Eurasia Mining

Eurasia Mining PLC is an international mineral exploration company, listed on the Alternative Investment Market (AIM), focussed on Russia.

Eurasia’s stated objective is to explore for platinum group metals (PGMs) and gold through self-funded own exploration targets and joint venture partnerships with strategic operators and local partners. Operations are funded from the company’s own equity funds and funded joint venture agreements. Projects are subject to an initial evaluation for viability and once this is established further exploration work is carried out to feasibility study level. It is then the company’s intention to either proceed to develop the project to production or partner the project with a suitable operator.

Value range – 20/5/2021

Intrinsic Price (GBp) 71.26
Value Range Low 67.70
Value Range High 74.83
Implied MCAP (m) £2,084.88
Implied EV (m) £2,084.61
Financial YE 31-Dec
Currency GBP

Business Activity

PGM Mining (Palladium, Platinum, Gold)

Key metrics

Close Price 26.50
MCAP (m) £731.1
Net Debt (cash) (m) -£10.7
EV (m) £720.3
52 Wk Hi 42.50
52 Wk Lo 7.20

Key ratios

(Net Cash) /Shareholder Equity % -1.47%
FX Rate USD/GBP 0.71

Extractives Sector Research
AiM Market Index
Analyst Team
+44 20 7419 7928

Eurasia Mining Plc Multiples table

Change at PGM stock Eurasia

Eurasia Mining (EUA.L) is an AiM-quoted Russian Pd dominated PGM miner. In this first post-FSP update valuation we are yet to include the March Rosgeo JV and Rhodium (Rh) production from all but West Kytlim or Iridium (Ir) in EUA projects. Our PGM prices are extremely conservative in this update. We assume Pt 93.5%, Pd 5% and Rh 1.5% production at WK. We assess the Pd auto-catalysis market can support $500 per car vs. $250 per car pre-covid. The largest Pd consumer, China, returned to economic growth in 2Q20. EUA has de-risked its flagship world class Monchetundra asset, the sale of which alone, could be a £2.0bn + exit for investors, an ~3x rerating on the fully diluted close price. We have cut our Monchetundra flanks risk adjusted WACC to 22% vs. 30%. Risk adj. WACCs for Monchetundra Lo + WN 12%, WK 8% vs. 10% prior.


Monchetundra mine 2025E pre-tax cash flow $89m


West Kytlim mine 2025E pre-tax cash flow $28.2m. EUA now operates the mine on a 100% revenue basis compared to previous arrangement before 2020 of 30-35% revenue.

EUA operations plan delayed 12 to 24 months due to 7m suspension and Formal Sale Process



Revenue 2023E £1,962m up 17,736% vs. £11m 2022E


EBITDA 2023E £1,392m up 17,300% vs. £8m 2022E


Net Income (unadjusted) 2023E £956.5m up 17,613% vs. £5.4m 2022E


Net Cash from Operations 2023E £1,314m up 18,000% vs. £7.3m 2022E

Rh production excluded from valuation for all but West Kytlim;

License granted 15 Moz Flanks by Sevzapnedra, reducing flanks risk;

Pd supply constrained;

PGM prices significantly exceed our valuation assumptions.

PGM Market Outlook Remains Strong

The Platinum Group Metals refers to six metals – ruthenium, rhodium, palladium, osmium, iridium, and platinum. Of these, the two most important are palladium and platinum. EUA focuses on the mining of these two metals.

Despite the Covid-19 driven correction (and V-shaped recovery) in Pd prices the underlying upward price drivers remain very largely unabated in a supply deficit market. We believe the Pd supply constraint, and rising demand in what is an inelastic largely non-substitutable good, is further sheltered by its tiny % contribution to overall auto costs. These characteristics of the Pd market leave head room for far higher prices than seen prior to the recent and ongoing pandemic.

EUA sum of the parts valuation £2.1bn operations contributions – it is still all about Monchetundra

(Yet to include Rosgeo JV, Iridium resource from projects or Monchetundra Lo+Wn+Flanks Rhodium resource, PGM price assumptions highly conservative vs. 2021 average and current spot prices)


Monchetundra Lo + WN


Monchetundra Flanks


NPV West Kytlim

1) Potential resources within the existing company licence and the flanks application of ~15 million oz.

2) Potential resources occurring within 5km of the Monchetundra mining license and areas neighbouring the company’s deposits of ~4 million oz.

3) Potential resources within the wider Monchegorsk district in which the Monchetundra license is located of ~21 million oz.

Eurasia Mining valuation catalysts

  • Sale of Monchetundra mine;
  • Development of Monchetundra flanks licence;
  • Successful installation of additional wash plants at West Kytlim to raise production volumes;
  • Increase in petrol cars vs. diesel;
  • Covid-19 accelerated policy drivers for the adoption of hydrogen and related clean fuel technologies (Pd if bound to Ag can replace Pt as a catalyst – this is competitive due to the relatively low price of Ag);
  • Increase in uses of palladium through technological innovation.

Asset One

NPV Monchetundra Flanks £1.476m

Asset Two

NPV Monchetundra Lo + WN 192m

Asset Three

NPV West Kytlim 33m

Does Monchetundra make EUA a £1bn+ play?

To see the latest Eurasia Mining press releases visit their website.

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Managing Director

I am a financial analyst, entrepreneur, professionally qualified equestrian and amateur eventer. Amongst others, I trained as a financial analyst at Global US based fund manager Legg Mason Investors and have been head of Technology and Media Equity Research at Bryan Garnier, a pan-European investment bank and brokerage.

I founded ORACA Independent Equity Research a ground breaking highly independent thinking large-cap secondary comm business and ACF Equity Research, a very high-quality independent issuer-pays small and mid-cap research business. I opened our first corporate finance business (Destrier Partners) and am approaching the launch of our first non-financial services business. In my view, I am only able to do these things because of the quality of the team I work with at ACF. For 11 years I broadcasted as an expert guest and wrote regularly in the leading pan-European and international media including Bloomberg Television, BBC Radio 4 and the Financial Times.

I studied Biochemistry at Kings followed by Economics at LSE and can conduct business in English and French, I speak German and have basic knowledge of Spanish and Italian. My free time, which I make sure I carve out, is in part each day spent on my passion – riding, competing with and caring for my horse(s).

Mike Wort

Non-Executive Chairman

Mike Wort is a life science communications expert and former life sciences CEO (large to start-up). He graduated in microbiology and lectured to science undergraduates in both the UK and Nigeria. He joined the pharmaceutical industry, working in a number of senior sales, marketing and clinical roles for Glaxo, SmithKline and Wellcome in the UK and overseas.

Appointed IR Manager for Wellcome, he helped organise its global roadshow for a £2.4bn secondary offering. He has managed over 20 IPOs and secondary raisings bringing in well in excess of £600m, He has consulted on and conducted M&A and DD in the life science sector and developed disaster recovery programmes for SME companies.

Mike worked with Deutsche Bank to privatise the Bulgarian pharmaceutical industry. As the CEO of Balkanpharma, he led the consolidation of the three key assets into one cohesive unit. Balkanpharma has, through a series of M&A activities, become a significant part of NYSE listed Allergan.

Formerly MD at De Facto Communications, Bell Pottinger’s healthcare offering, he recently retired from Walbrook, the UK’s most successful SME PR/IR agency. In addition, Mike has co-founded a number of life science start-up companies in Europe and the USA.

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Head of Operations

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Sales & Strategy

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Sales & Strategy

I have strong analytical, planning and execution skills, I love working as part of a team both inside ACF and externally with our clients and prospective clients.

I am used to working with and within senior leadership teams and understand the needs of small and medium sized companies through my current and previous professional experience, I graduated in life sciences with a specialisation in Ecology and Environmental Protection in Romania in 2007 and for my first job I worked in a laboratory carrying out chemical analysis of industrial waste-water.

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Technical Analyst

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Away from the markets, I am a song writer and musician and have a long and patient interest in politics – areas that continue to be potential additional professional careers.
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Before ACF I worked at Harrisons Business Recovery & Insolvency, and briefly at Capital Partners in London and interned at Royal London Asset Management. I recently completed my MSc in Finance and Investment Management at Middlesex.

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Director, Distribution & Service

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Specialties: Strategic Planning, CXM, Digital and Business Transformation, Programmatic Marketing, Proposition Development, Content Planning, User Experience Development and Design, Mobile, Consumer Insight Development, Brand Planning and Development, Information Architecture and Design, Business Development, Digital Channel Strategy Development, Brand Development, CRM Strategy and Delivery, Business Development

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Director, Research Distribution

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