On Wednesday, Eurasia Mining (LSe:EUA) released its annual report and accounts revealing revenues jumped to £2.57m in its first year of production from the West Kytlim mine. The majority of sales came from mined platinum with smaller credits of gold, palladium, rhodium, and iridium.
The firm, which is now debt free, generated a gross profit of £293k during the period compared with a loss of £34k in 2017.
The company’s primary focusses are the West Kytlim platinum and gold mine in the Ural Mountains and the 2 million ounces of palladium & platinum equivalent Monchetundra asset on the Kola Peninsula. Last year, output from the West Kytlim mine exceeded expectations with platinum production of 165kg. Last month Eurasia’s chairman, Christian Schaffalitzky told MiningMaven the company is targeting similar production levels in 2019.
Mining at West Kytlim has moved on to the Kluchiki area where forest clearance was undertaken in February. Seasonal preparations, including the mobilisation of machinery, have been in progress ahead of gravel washing, which is due to commence in the middle of May 2019.
Improvements have been made to improve washing efficiency and metal recovery including the addition of a jig to the overflow of the sluice to attempt to capture more of the finer platinum bearing nuggets. Eurasia has renewed its contract for mine development with the directors and operational staff at Techstroy, who underwent a name change to Uralmetmash.
Meanwhile, The company has been developing its larger Monchetundra asset towards production since it was issued a mining permit in November last year. An engineering, procurement, construction (EPC) and financing agreement is in place with Chinese group Sinosteel for the development of the mine.
In the chairman’s statement published with the accounts, Mr Schaffalitzky said:
“At the time of writing production is ramping up for the year to full scale at West Kytlim and the Directors now regard Eurasia as an established mining Company.
The Company's strategy, as outlined since 2015/16 was to develop the West Kytlim Mine to production, and to generate sufficient revenues to allow the Company to pursue development of its further interests, while minimising possible dilution of the shareholder base.
The Company's plans for the project's development with Eurasia's working partners at Sinosteel (one of the largest corporations in China) and the Central Kola Expedition, the key contractor in the region for both Russian and international companies, can now be progressed. The project is a more considerable undertaking than West Kytlim and could be transformational for the Company.”
Author: Stuart Langelaan
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