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Eurasia Mining posts maiden gross profit during “key” 2018

Eurasia said 2018 was a “key” year for its development, having recorded a maiden gross profit and obtained a mining licence on its flagship Monchetundra project
west kytlim russia
Eurasia is now debt-free

Eurasia Mining plc (LON:EUA) has posted a maiden annual gross profit following the first full season of mining at its West Kytlim platinum and gold alluvial mine in Russia.

Total sales soared to £2.57mln in 2018, compared with just £0.18mln a year earlier.

Almost all of that came from the 165kg of platinum mined at West Kytlim, although there were also sales of smaller amounts of gold, rhodium, iridium and palladium.

READ: Eurasia beginning to build scale in platinum metals portfolio

That translated into a gross profit of £293,000, versus a loss of £34,000 in 2017.

Including other costs associated with the writing off of the Kamushanovsky project, the total loss for the year climbed to £3.24mln (2017: £2.14mln).

Eurasia is now debt-free as well, having settled all of its outstanding loans during 2018.

Away from the finances, Eurasia achieved some key operational targets in the year, principally surrounding its flagship Monchetundra mine.

Monchetundra is bigger than West Kytlim, comprising 1.9mln ounces of palladium-led reserves and resources with platinum, gold, copper and nickel credits to boot.

Monchetundra mining permit awarded

Final approvals for the mining permit were received in November, and a mining contractor is already in place.

Looking ahead, with the mining licence at Monchetundra now under its belt, Eurasia said its plans for the project’s development can now be progressed with its partners.

There is also the potential to add further to the reserve and resource base directly adjacent to Monchetundra.

As for West Kytlim, production there is ramping up to full scale with gravel washing at the Kluchiki work site due to commence shortly.

Bosses believe West Kytlim’s cash flows are now sufficient to make “significant contributions” to the running of the company.

Eurasia shares rose 2.8% to 0.58p in early deals on Wednesday.

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