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Eurasia Mining has doubled in February. Will it crash like Sirius Minerals?

Tuesday, February 11th, 2020

Do you remember when Sirius Minerals shares doubled in value in just a few weeks back in 2016? I do, and I felt very pleased with myself when I bought some a few months later after they’d crashed back down again.Something similar has just happened to the Eurasia Mining share price. Well, the doubling part, at least. At market close on Monday, the shares had doubled since their end of January price.

The Eurasia boom seems to be all about rising demand for palladium and platinum. Palladium prices have soared by almost 70% over the past 12 months, with a big spike since the start of 2020. And just like gold, investing in precious and rare metals miners can provide better rewards than buying the metals themselves.

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.

https://www.fool.co.uk/investing/2020/02/11/eurasia-mining-has-doubled-in-february-will-it-crash-like-sirius-minerals/
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