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With the business potentially at an important milestone, we thought we'd take a closer look at G Mining Ventures Corp.'s (TSE:GMIN) future prospects. G Mining Ventures Corp., a mining company, engages in the acquisition, exploration, and development of precious metal projects. The company’s loss has recently broadened since it announced a US$7.2m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$12m, moving it further away from breakeven. Many investors are wondering about the rate at which G Mining Ventures will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for G Mining Ventures
According to the 4 industry analysts covering G Mining Ventures, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$18m in 2024. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 92% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving G Mining Ventures' growth isn’t the focus of this broad overview, however, bear in mind that typically metals and mining companies, depending on the stage of operation and metals mined, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one issue worth mentioning. G Mining Ventures currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in G Mining Ventures' case is 57%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.
Next Steps:
There are key fundamentals of G Mining Ventures which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at G Mining Ventures, take a look at G Mining Ventures' company page on Simply Wall St. We've also put together a list of relevant factors you should further research:
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Historical Track Record: What has G Mining Ventures' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on G Mining Ventures' board and the CEO’s background.
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Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.