Greatland (GGP) & Eurasia (EUA): Should you buy these 2 mining stocks?

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Greatland (GGP) & Eurasia (EUA): Should you buy these 2 mining stocks?

 Greatland (GGP) & Eurasia (EUA): Should you buy these 2 mining stocks?
Image source: SvedOliver, Shutterstock.com

Highlights

  • Greatland Gold announced that its Juri Joint Venture with Newcrest Mining Limited advanced to Stage 2, marking an extension of the Juri JV exploration programme in Paterson province, Western Australia.
  • Eurasia Mining announced approximately $15 million financing for Rosgeo JV.

The mining industry is cyclical, and the broader trends in the sector are dependent on the performance of the economy. The sector consists of companies engaged in the exploration, extraction and processing of important minerals and ores, industrial and construction metals, precious metals, energy materials and fertilizers. 

Different metals are key to the smooth running of the economy. During the COVID-19 outbreak, several mining companies had to shut down their operations for the period. The mining stocks showed a peculiar characteristic that their prices moved in direct correlation with the severity of the pandemic. Relaxation of COVID-19 pandemic related restrictions and rising vaccination rates have been pivotal in the recent resumption of mining operations. Here is a detailed review of the investment prospect in two AIM-listed mining stocks - Greatland Gold and Eurasia Mining.

Greatland & Eurasia: Share price and market cap

(Data source: Refinitiv)

Greatland Gold Plc (LON: GGP)

Greatland Gold is a mining company engaged in the exploration and development of precious and base metals. Recently, the company announced that its Juri Joint Venture with Newcrest Mining Limited advanced to Stage 2, marking an extension of the Juri JV exploration programme in Paterson province, Western Australia.

At the beginning of November, Greatland Gold identified two targets with magnetic and gravity characteristics analogous to the Havieron gold-copper deposit. The two targets are located within 100%-owned areas in the Canning application and Paterson South tenement.

Greatland Gold reported an operating loss of £2,674,445 for the half-year ended 31 December 2020 compared to a loss of £2,623,975 in the same period in the previous year.

The shares of Greatland Gold are trading at GBX 16.50 at 8:06 AM BST on Tuesday, 9 November 2021. The market cap of the company currently stands at £654.15 million.

Eurasia Mining Plc (LON: EUA)

Eurasia Mining is a producer of platinum, palladium, rhodium, gold and iridium. The company is into operations at West Kytlim Mine in the Urals as well as nickel and palladium open pit deposits in the Monchetundra Project.

In September, Eurasia Mining announced approximately $15 million financing for Rosgeo JV.

Eurasia Mining recorded a loss before tax of £1,465,922 for the six months ended 30 June 2021 compared to £1,295,082 million in the previous year.

The shares of Eurasia Mining are trading at GBX 24.00, down by 2.04% at 8:19 AM BST on Tuesday, 9 November 2021. The market cap of the company currently stands at £699.12 million.

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