Eurasia (EUA) & Alien Metals (UFO): 2 mining stocks to buy at a discount

Highlights

  • Eurasia Mining announced the successful completion of US$15 million financing for the Rosgeo JV.
  • Recently, the company conducted scoping studies for its iron ore deposits at the Hancock Iron Ore Project in Western Australia. The optimisations were completed with a per tonne iron ore price of US$100.

Mining activities and companies suffered significantly during the pandemic due to the imposition of lockdowns and the movement of workers back to their homelands. The cyclical nature of the mining industry makes it extremely dependent on the performance of the economy.

Increasing vaccination rates and reopening of the economy is expected to drive mining operations back on track in the coming few months. Several large and small miner companies have resumed operations to pre-pandemic levels. Below is a detailed review of the investment prospect in two mining stocks – Eurasia Mining and Alien Metals.

Eurasia (EUA) & Alien Metals (UFO): Market cap details

(Data source: Refinitiv)

Eurasia Mining Plc (LON: EUA)

Eurasia Mining is an AIM-listed mineral exploration and mining company. The company’s activities are primarily focused on the exploration and development of platinum group metals and other minerals in Russia. 

The shares of Eurasia Mining are trading at GBX 22.00, down by 3.51% at 12:52 PM BST on Monday, 25 October 2021. The market cap of Eurasia Mining currently stands at £650.61 million.

On 24 September 2021, Eurasia Mining announced the successful completion of US$15 million financing for the Rosgeo JV. The company recorded a loss before taxation of £1.46 million in H1 2021 (ended 30 June 2021) compared to £1.3 million in H1 2020.

Alien Metals Ltd (LON: UFO)

Alien Metals is a company engaged in the mining and development of copper ores. Recently, the company conducted scoping studies for its iron ore deposits at the Hancock Iron Ore Project in Western Australia. The optimisations were completed with a per tonne iron ore price of US$100.

The shares of Alien Metals are trading at GBX 1.00, down by 8.11% at 1:06 PM BST on Monday, 25 October 2021. The market cap of Alien Metals currently stands at £31.73 million.

Alien Metals’ update on its inaugural drilling programme at the Elizabeth Hill Silver Project, Pilbara in Western Australia, states the presence of visible sulphides and silver in core and RC chips.

As of 30 June 2021, Alien Metals’ total assets was US$8.5 million compared to US$1.6 million in 2020. For the half-year ended 30 June 2021, its operating loss was US$0.8 million compared to US$0.4 million in the same period in 2020.

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