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With the business potentially at an important milestone, we thought we'd take a closer look at Bushveld Minerals Limited's (LON:BMN) future prospects. Bushveld Minerals Limited operates as an integrated primary vanadium and energy storage solutions provider for the steel, energy, and chemical industries in South Africa, Europe, Asia, the United States, and internationally. The company’s loss has recently broadened since it announced a US$104m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$117m, moving it further away from breakeven. The most pressing concern for investors is Bushveld Minerals' path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for Bushveld Minerals
Bushveld Minerals is bordering on breakeven, according to some British Metals and Mining analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$5.3m in 2026. So, the company is predicted to breakeven approximately 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 82% is expected, 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 Bushveld Minerals' growth isn’t the focus of this broad overview, however, keep in mind that generally 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.
One thing we would like to bring into light with Bushveld Minerals is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.
Next Steps:
There are too many aspects of Bushveld Minerals to cover in one brief article, but the key fundamentals for the company can all be found in one place – Bushveld Minerals' company page on Simply Wall St. We've also compiled a list of relevant aspects you should further examine:
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Valuation: What is Bushveld Minerals worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Bushveld Minerals is currently mispriced by the market.
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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 Bushveld Minerals’s 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.