Eurasia Mining swings to profit of £7.2 million amid West Kytlim upgrade and strategic asset sale progress

Eurasia Mining’s 2025 annual results show a company in a more stable position on paper, but still heavily dependent on events outside its control. The headline number is eye-catching: a swing from an £8.6 million loss in 2024 to a £7.2 million profit in 2025. That is real progress, but investors should not treat it as a clean earnings breakthrough.

The bigger picture is that Eurasia is still trying to monetise Russian assets in a sanctions-heavy, approval-heavy environment. West Kytlim improved operationally, the balance sheet got support from a US$4 million fundraising, and the proposed sale of the Company’s 68% stake in ZAO Kosvinsky Kamen moved forward. But completion is still not done, the timeline is uncertain, and the value of any deal has not been disclosed.

Eurasia Mining 2025 annual results – the key numbers investors need

Metric	2025	2024
Revenue	£5,420,759	£6,636,001
Gross profit/(loss)	£1,236,940	(£65,130)
Operating profit/(loss)	£7,372,060	(£8,506,035)
Profit/(loss) after tax	£7,167,814	(£8,647,845)
Cash and cash equivalents	£2,540,859	£3,682,292
Inventories	£3,603,272	£322,597
Borrowings	£745,450	£262,706
Basic earnings/(loss) per share	0.15p	(0.23p)

Why Eurasia Mining’s £7.2 million profit is good news, but not the whole story

The positive bit first: Eurasia is no longer reporting a loss, and gross profit improved to £1.2 million from a small gross loss a year earlier. Cost of sales fell to £4.2 million from £6.7 million, which helped. That suggests the operating side of West Kytlim was more efficient than in 2024.

Now the catch. The main driver of the profit swing was not booming sales. Revenue actually fell to £5.4 million from £6.6 million, and the biggest boost came from net foreign exchange gains of £8.5 million. In simple terms, changes in currency values flattered the accounts.

That matters because foreign exchange gains can reverse. If you strip that out mentally, this is a better year, but not yet a business generating chunky, dependable profits from mining alone.

West Kytlim upgrade and the ZAO Kosvinsky Kamen sale are the big near-term catalysts

Operationally, West Kytlim had a decent year. Production exceeded 10Koz of PGM concentrate, and the mine upgrade increased capacity from two to six mining sites, according to the Chairman’s statement. Elsewhere in the report, the Company also refers to six enrichment plants operating successfully, so the message is clear even if the wording shifts slightly – West Kytlim is now a larger and better-equipped operation.

That matters because West Kytlim is the asset Eurasia is trying to sell through its 68% interest in ZAO Kosvinsky Kamen. Shareholders already approved the proposed disposal at an Extraordinary General Meeting in early 2026. The deal still needs state approvals, and the Company says the timeline is uncertain.

Here is the crucial point for investors: this is progress, but not completion. There is still no disclosed sale value, no disclosed buyer identity in this announcement, and no guarantee the transaction lands.

The Company also says West Kytlim represents only around 0.3% of total Group reserves and resources. So while the sale matters for funding and strategy, it is not the main geological prize.

Kola Peninsula assets remain the real long-term value driver for Eurasia Mining

The Arctic assets in the Kola Peninsula account for approximately 99.7% of the Group’s total reserves and resources. That is where management clearly believes the long-term upside sits. If you are investing here for scale, it is Kola you are really backing.

At Monchetundra, a detailed engineering study was submitted during the year. The planned starter pits at West Nittis and Loipishnune target initial production of approximately 130Koz of platinum equivalent per annum. Platinum equivalent is just a way of combining the value of several metals into one comparable production figure.

The adjacent NKT project is also moving forward, with a Feasibility Study targeted for 2026 and the licence extended to August 2027. NKT’s JORC-compliant resource is sizeable at 305Kt of nickel, 143Kt of copper and 57 tonnes of PGM and gold, equal to around 11.2 million ounces of platinum equivalent.

That is the bullish case in one sentence: sell or finance sensibly now, then unlock the much larger Kola portfolio later.

Cash, fundraising and dilution – Eurasia has runway, but it is not risk-free

In March 2025, Eurasia raised approximately US$4 million net of expenses. Management says that funding should support activities for at least 24 months, and the directors conclude the Group remains a going concern. That is reassuring in the short term.

Cash at year-end was £2.5 million, down from £3.7 million, but inventories jumped to £3.6 million from just £0.3 million. Most of that was platinum concentrate worth £3.3 million. The Company’s argument is that this stock is highly liquid and can be turned into cash if needed.

Still, cash flow was not pretty. Net cash used in operating activities was £3.6 million, and net cash used in investing activities was £1.8 million. So while the profit figure looks strong, the cash movement tells a more cautious story.

There is also dilution to keep an eye on. The Company issued 72,033,188 new ordinary shares in March 2025 at 4.03p each. It also has 126,381,014 warrants outstanding at the year end, plus the Sanderson borrowing that is due to convert into shares.

One awkward detail in the RNS is that the Sanderson conversion price is stated as 2.5p in one section and 2.4p in another. The shares had not been issued by 31 December 2025. Investors should note that the exact conversion detail is not fully consistent within the announcement.

Sanctions, geopolitics and execution risk still dominate the Eurasia Mining investment case

The Board is very open that geopolitics has been the main driver of Eurasia’s market value over the past five years. That is honest, and it is also a warning. The share price is not just trading on operations or metal prices – it is trading on Russia, sanctions, approvals and the chance of some form of settlement in Ukraine.

Management even says it may reconsider the timing of the KK sale if geopolitics improves and tax conditions change. That is strategically sensible, but it also shows how fluid the plan is. Optionality is useful, yet it can frustrate investors who want a clean timetable.

There is also an accounting clue worth noticing. The Company did not classify KK as held for sale at 31 December 2025 because the disposal was not considered “highly probable” under IFRS 5. That is technical language, but the takeaway is simple – auditors and directors do not yet see this as close enough to completion to treat it as effectively sold.

My verdict on Eurasia Mining’s 2025 results

This was a better year. West Kytlim improved, the Company raised fresh money, gross profit turned positive, and the balance sheet looks less fragile than it did a year ago. Those are meaningful positives.

But the market should not get carried away by the £7.2 million profit alone. It was largely driven by foreign exchange gains, revenue fell year-on-year, cash declined, and the main strategic sale is still waiting on approvals. For me, this reads as a company that has bought itself time and preserved upside, not one that has fully de-risked the story.

If the KK sale completes and Kola keeps advancing, there is a route to unlocking real value. Until then, Eurasia remains a special situation share – interesting, potentially rewarding, but still very dependent on politics and execution rather than just operational delivery.