If I had put £1,000 into penny share Eurasia Mining (LSE: EUA) five years ago, I would have an investment worth over £2,000 now. That is thanks to the EUA share price rising 102% in that period.

That might sound good. Or even great. But in fact, the shares rose as much as 3,690% between five years ago and the following year, 2020. So at one point my potential £1,000 investment would have been valued at almost £38,000.

EUA has clearly captured the imagination of some investors over the past few years. Even now, though it is well below its former highs, the five-year chart shows a very positive return.

Could the good times return – and ought I to invest in anticipation?

On the block

Let me start with my conclusion. I have no plans to act on the EUA share price even though it stands at just a couple of pence.

The firm describes itself as a “palladium, platinum, rhodium, iridium and gold mining company”. But in the first half it recorded zero sales. That is because, while it owns mining concessions, it is not currently extracting those precious metals commercially and selling them. Instead, Eurasia has been trying to sell its assets for some time.

As the company explained in its interim results statement last month, “our strategy continues to focus primarily on the potential sale of the company’s assets in Russia”.

The longer that process drags on, the higher the liquidity risk that arises from the ongoing maintenance and administrative costs faced by Eurasia. Just last month it entered into a trade finance facility to provide additional liquidity.

Thinking as an investor

That wild ride in the EUA share price over the past few years – and arguably its current £62m market capitalisation – points to something. There is, potentially, significant value in the company’s assets.

But having potential value and unlocking that value are two different things. Sometimes they can be very close together. On other occasions they may be very far apart.

Eurasia has been looking for potential buyers for its assets for some time. It may yet find one, but the lack of apparent progress so far is not especially encouraging. It is hoping to sell the Russian assets in what is effectively a buyer’s market. That could affect the chance of getting a deal and certainly could affect the chance of getting a deal at a highly attractive price.

Eurasia could yet sell its Russian assets and, even at a knockdown price, it may realise more than its current market capitalisation. That could send the EUA share price upwards. Conceivably, if the price was good enough, the penny share could surge. Whether it might double again would depend on just how good that price was.

But the risks involved (such as no sale at all) are substantial. For now, this feels more like speculation than investment to me, so I have no plans to invest.