Our opinion on the current state of EUZEuropa (EUZ) is a European metals developer primarily operating in Spain, where it focuses on mining lead, zinc, and silver. The company owns 100% of the Toral project located in Leon Province, holding a 3-year investigation permit. Following the completion of a comprehensive scoping study in December 2018, Europa has been advancing towards a full feasibility study through infill drilling in high-grade areas.
Despite being included in the JSE's fledgling index, Europa recently applied to delist from the Australian Stock Exchange (ASE) and move its listing from the JSE's main board to the Alt-X.
In its financial results for the six months ending December 31, 2023, the company reported an after-tax loss of A$248,761, an improvement from the loss of A$1.2 million in the previous period. Europa highlighted its ongoing drilling campaign focused on confirmatory and infill drilling within the project's known indicated resource area, which comprises approximately 7 million tonnes at 8.1% Zinc Equivalent, including lead credits, 5% zinc, 3.7% lead, and 29g/t silver.
Europa's stock is considered a penny stock, typically oscillating between 47c and 80c on thin volumes. As the company does not yet have a productive mine, it is considered highly risky for investors. The stock has shown significant volatility, including a strong on-balance volume (OBV) buy signal at 52c on July 17, 2020, which propelled the share price to 191c before retreating. Currently trading at 25c, the share remains volatile, unpredictable, and challenging to evaluate. Investors should exercise caution and conduct thorough research before considering an investment in Europa.
