Analysts are getting more bullish too, about both palladium and about Eurasia Mining itself. And there are rumours going round that Eurasia insiders have been buying stock too — but, pinch of salt and all that.
Sirius bust
Back to Sirius Minerals and the question of whether Eurasia Mining could go the same way. Well, there is speculative risk with Eurasia, just as there was with Sirius. Eurasia has been burning cash and recording losses, which is one thing EUA and SXX have in common.
But the big risk for Sirius, which turned out bigger than I’d expected, was that it simply did not have the capital in place to get close to being productive. It was sat on a very desirable asset in its potash reserves, and had a long list of customers lined up.
But there was never going to be any potash production for a number of years, and it needed huge further investment.