For the year ended 31 December 2019
Eurasia Mining plc, the palladium, platinum, rhodium, iridium and gold producing company, operating the established West Kytlim Mine in the Urals, and also the operator of the Monchetundra Project comprising two predominately palladium open pit deposits located 3km away from Severonickel, one of Norilsk Nickel’s largest base metals and PGM processing facilities, near the town of Monchegorsk on the Kola Peninsula, is pleased to announce its audited financial results for the year ended 31 December 2019.
A further statement regarding notice of AGM, AGM resolutions and voting procedures will follow in due course. The annual report and accounts for the year ended 31 December 2019 will also be available on the Company’s website and posted to those shareholders requiring a printed copy shortly.
In writing to you at this time, I am conscious that some of you and your families have been affected in different ways by the COVID-19 pandemic. We have endeavoured in this challenging time to look after our employees and maintain our momentum, and we now stand out as a PGM company in production with a palladium dominated resource, which is 100% open pit, i.e. low cost and better protected from COVID-19.
On the ground, we also gained full control of our mining operations at West Kytlim, while in parallel, we established Monchetundra as a world class palladium open pit project to rank with its peers globally. It was a year of important progress in building our foundations.
Palladium market fundamentals remain strong, and in a structural deficit worsened by the supply crunch caused by PGM underground mine closures. With palladium demand picking up, especially in China (the largest consumer) primarily driven by the initiative to reduce emissions, palladium supply is tight. The platinum price remains steady with improvement from its long-term low in 2019. Due to the low operating cost environment at our West Kytlim mine, platinum production continued during this period.
Our team responded immediately to the challenges presented by COVID-19 with measures including: longer rosters to reduce travel, social distancing at meal times and in accommodation, increased personal protective equipment, and awareness interviews and medical screening to protect our workers. We are confident these measures are sufficient to safely ensure production going forward.
This year we are operating our own equipment, employing a team of machine operators directly and with 100% of revenue attributable to the Company. This is the first step in building production in the coming years. In order to facilitate this growth, we have worked hard to accelerate the permitting of the mine areas with the responsible bodies and this is well in hand. Additional licences are expected to follow and we look forward to building out production further.
2019 proved to be the year when Monchetundra came to the fore as the Company’s flagship project, driven by a significant increase in the resource at the project and palladium sector consolidations. We continue to advance development work for the construction of a mine for the two open pit palladium deposits. In parallel, we have applied for a large licence surrounding the deposits under the exclusive right granted to mining licence holders. This application, referred to as the ‘Flanks’ is well advanced having cleared all ministry approvals, and is now awaiting sign off by SevZapNedra.
While the Chairman’s letter is often one of reflecting on the previous year’s business, our focus has been on the future and this has included building relationships with advisers and investors. We have been working hard to establish the value of our projects to ensure that we will achieve value for all our stakeholders.
On 27 May 2020, we have also appointed SP Angel as our new Nomad and Joint Broker and we look forward to working with them in this next period of exciting developments for the Company. On the Board, the promised strengthening of your leadership is well underway including appointments of two new Directors: James Nieuwenhuys (CEO of South African Lesego Platinum and former COO of Polyus, one of largest miners in Russia and head of Polyus in China) in November 2019 and in May 2020, Iain Rawlinson, an experienced M&A professional. Both gentlemen bring excellent experience and I am delighted to welcome them and look forward to implementing our strategy.
Finally, I want to pay tribute to our employees who have worked tirelessly through the year, and thank you the shareholders once again, for your support and patience. Without your support, none of our work would have been successful.
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