Forecast: in 12 months, the EUA share price could be…

Businessman using pen drawing line for increasing arrow from 2024 to 2025

When exploring the world of young London-listed mining stocks, the Eurasia Mining (LSE:EUA) share price has been grabbing quite a bit of attention in 2025. Year to date, the stock’s surged by almost 90%. And zooming out to the last 12 months, the performance becomes even more impressive with a near-210% gain.

While the stock’s still nowhere near trading at its peak 2020 levels, enjoying a triple-digit gain in such a short space of time is understandably exciting. So should investors be considering this small-cap growth stock for their portfolios today? And where might the share price be in the next 12 months?

Investigating gains

With the stock more than tripling over the last 12 months, surely management’s been able to deliver some impressive operational progress, right? Well, no. Despite what the EUA share price would suggest, the company hasn’t really made any tangible progress.

Its revenue stream remains almost negligible, earnings are still in the red, and the company’s still struggling to sell off its Russian mining assets, including its West Kytlim gold mine, its Monchetundra mining licenses, the NKT project, and its entitlements to the Nyud projects.

However, it’s the asset sales that seem to have gotten investor attention. With the potential for a massive buyout, investors have been speculating that a deal could soon emerge. And subsequently, one institutional analyst currently has a 70p price target for the share price by this time next year.

Part of this speculation’s driven by the expectation of peace negotiations in Ukraine that would allow Russia’s economy to recover. But it’s also linked to the strengthening of the Russian ruble in recent months. After all, this increase in spending power makes acquisitions cheaper for Russian companies.

So is Eurasia Mining about to find a buyer, giving shareholders a large payday? There’s no concrete evidence of this happening. All of the impressive gains seen to date aren’t driven by the firm’s underlying fundamentals, but rather speculation. As such, investors can likely expect extreme volatility moving forward. In fact, anyone who hopped on the bandwagon in March is already down over 40%.

Is there hope for Eurasia’s business?

With the core of its mining assets held in Russia, Eurasia isn’t in an ideal operating position. Nevertheless, management’s seemingly taking steps to pivot the business. The divestment strategy, if successful, will provide ample funding to build out a new mining portfolio and get things back on track.

In the meantime, Eurasia’s recently raised £3.15m through a private placement, supporting the firm’s upcoming dual listing on Astana International Exchange as well as the London Stock Exchange. This opens up a new pool of investment capital for management to leverage.

If the company can raise sufficient capital and find a buyer for its Russian assets, the EUA share price could have plenty of room for growth from today’s prices. However, even in this scenario, it will be a long road before the company will have robust fundamentals to support a stable valuation. In other words, this is an exceptionally high-risk investment right now, even with the seemingly explosive return potential over the next 12 months.

As such, it’s a stock I’m steering clear of.

The post Forecast: in 12 months, the EUA share price could be… appeared first on The Motley Fool UK.

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Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.