Imagine investing £20,000 at the start off January and it now being worth over £56,000! That is the growth some investors in Eurasia Mining (LSE: EUA) have seen in under three months, thanks to the share price soaring 181% since the turn of the year.
Over five years, though, the share price has tumbled 64%.
Looking back even further (I am a long-term investor, after all), the share has traded in pennies since before the turn of the century, but in the years leading up to that, had been trading north of a couple of pounds per share.
So, while Eurasia has boomed in 2025, over the long term, it has destroyed significant value for shareholders.
What is going on – and has the tide turned?
A new year, a new geopolitical environment
The tide has turned in one way.
Eurasia has spent the past several years looking for a buyer for its key assets, which are mining sites in Russia.
That process had been going at a slow pace. Eurasia had raised some cash along the way, without which its ability to continue as a going concern would be doubtful.
The past several months have seen a shift in the international geopolitical environment, with the potential of Russia being better integrated once more into the global financial system than it has been since it launched its full-scale war on Ukraine.
That could make it easier for Eurasia to find a buyer for its assets, or potentially a way to utilise them itself.
Zero substantial company news, yet a 181% share price rise
Still, is that on its own enough to explain the 181% increase in the share price seen so far this year?
The answer appears to be yes, which suprises me.
Eurasia has not issued any substantive news updates this year. To date, there is no change in the known progress of the company’s attempts to offload its assets than there was at the end of last year.
As far as I can tell, the soaring share price reflects investor hopes that a changing geopolitical reality and its implications for international investment in Russia will help the company unlock value from its mining assets – but no concrete agreed sale plan as of yet.
I’m going nowhere near this share
The Eurasia Mining share price is still in pennies and this year’s performance has certainly grabbed my attention.
But I have no plans to invest. The price increase feels speculative to me in the absence of any concrete news about progress towards an asset sale.
Eurasia’s mining rights could potentially be valuable in the right hands. Combined with the speculative atmosphere, that could potentially push the share price even higher from here.
But as an investor, I see a loss-making company with a weak balance sheet, no commercial revenues to speak of, a large geographic concentration of risk, and – as of now at least – no confirmed exit plan for selling its assets.
I would not touch Eurasia shares with a bargepole right now.
This post was originally published on Motley Fool
