Eurasia Mining (LON:EUA) 6.03p. Mkt Cap £172m. Annual report highlights strong performance of West Kyltim PGM Mine in Russia

Christian Schaffalitzky, Executive Chairman commented: “We are pleased to provide our annual report and accounts for 2021, an important year in the Company’s development.

We welcome new additions to our team at Board level and the opportunities provided by our geographic and commodity diversifications as discussed in more detail in our annual report. We also recently welcomed KPMG on board as agent within Russia to progress our asset sale strategy.”

James Nieuwenhuys, Chief Executive Officer commented: “Operationally the West Kytlim asset is performing well following a successful winter stripping programme and a subsequent increase in stripping capacity. As discussed in our Operational Reports the mine is expected to make the switch to hydro-generated grid power later this season and the use of electric draglines, both important developments for sustainable platinum group minerals and gold production through life of mine. I look forward to providing shareholders with further updates regarding progress during the second half of 2022.”

  • Eurasia Mining has published today their 2021 annual results statement. The AGM will take place at Etc Venues 8 Eastcheap London on 28 July
  • Management is busy working to diversify its geographical and commodity base.
  • Strategy As part of their future strategy following the possible sale of their Russian PGM assets, the team has added more battery metals to the Eurasia portfolio.
  • West Kytlim doubled the mine production from 1,525 to 3,643oz last year and laid plans to connect grid-supplied hydropower to ensure 100% renewable energy at the site in H2 this year.
  • James Nieuwenhuys is the CEO. He comments, “Operationally, the West Kytlim asset performs well following a successful winter stripping programme and a subsequent increase in stripping capacities.”
  • Last August, a third wash plant was built to treat the ores the Bolshaya Sosnovka and Kluchiki, and five additional ore haulage trucks were delivered, six Caterpillar excavators, two Komatsu D275 bulldozers, and six Caterpillar bulldozers.
  • The mine gathers PGM nuggets which are then gravity separated and processed in an on-site laboratory to create a ‘black sand’ concentrate, which is refined at Ekaterinburg’s precious metals refinery.
  • Dragline 1 components are now on-site for assembly and commissioning, with new substation and powerline construction due shortly.
  • Hydropower The mine will make the switch from coal to hydropower in the next season. It will use electric draglines to produce PGMs and gold sustainably. This is part of its goal to be the lowest carbon open cast PGM mine.
  • Exploration of West Kytlim:  Typil and West Kytlim Flanks have been used to explore 12 samples that show platinum and gold in the Typilez Creek region.
  • In March, drilling in the area surrounding the Typil River’s inflow and the adjacent part of the Kosva River Valley valley revealed alluvial sediments from the Typil and Kosva terraces measuring 6-7m and Pre-Quaternary sediments measuring up to 5m. The sediments are being analyzed and washed in the field laboratory.
  • Monchetundra The team has added additional resources to the Monchetundra PGM Project in Kola, which is tied in with the NKT mine relaunch plan.
  • Monchetundra: A definitive feasibility study on a submission date in 2022.
  • Wardell Armstrong International is engaged to conduct a variety of studies on Eurasia, including Rosgeo jv property properties. This will be done in order to create JORC standard mineral resources estimation and NPV valuation.
  • In order to reflect the substantial rise in nickel and PGM prices since 2016, the group is recalculating the Monchetundra mineral resource and its Flanks.
  • NKT has been reclassified as a Nickel dominant mine. It may be used as a standalone project, or as part of Monchetundra.
  • This project contains significant nickel sulphide ore and is being integrated with Eurasia’s nearby nickel, and PGM resources. Wardell Armstrong and Eurasia technical teams are currently completing a detailed assessment of this project.
  • NKT currently has a JORC resource containing 305Kt Nickel and 143Kt Copper and 57 tons of PGM and gold (11.2Moz eq). Nickel makes up half of the metal basket’s value on a Net Smelter royalty basis.
  • Rosgeo JV: We expect concentrates from these plants to supply the refinery city Monchegorsk along with potential production from Eurasia’s joint venture Rosgeo, which has additional interests in this region.
  • Monchegorskis home to the largest nickel and PGM processing plant in the world at Norilsk’s Severonickel.
  • M&A “Active discussions continue with interested parties” and management “remain optimistic of a positive result from these discussions.”
  • Funding: Eurasia raised US$35m in funding last year, strengthening its balance sheet and providing greater opportunities for diversification into minerals other than Russia.
  • Management: Eurasia appointed Kotaro Kosaka and Tamerlan Abdikeev as directors to the board as part of its hydrogen strategy. This team was also strengthened by the recent appointment Artem Matyushok, who has extensive experience in M&A in hydrogen industry M&A.
  • Metallurgy Alexander Sushchev is retiring as a metallurgist, advisor and member of the Board. However, he will still provide occasional advice.
  • Results:
    • Sales rose to $2.3m by 2021, compared with $0.9m in 2020.
    • Prices rise to $2.6m, compared with $1.1m
    • Administration costs rose to $2.7m from $1.9m
    • Other losses were limited to $0.06m, compared with $1.5m for 2020.
    • The year ended with a loss of $3.1 million, compared to $3.7m the previous year
    • At the end of the year, cash and cash equivalents amounted to $22m

Conclusion: Eurasia continues its feasibility study and drill assays to assess and develop the NKT, Monchetundra, and West Kytlim project. We are looking forward to receiving updates about the diversification into hydrogen and other projects in the region.


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