Evolution Energy Minerals Limited (ASX:EV1) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Evolution Energy Minerals Limited engages in the acquisition, exploration, evaluation, and development of mineral properties in Australia. On 30 June 2023, the AU$31m market-cap company posted a loss of AU$14m for its most recent financial year. Many investors are wondering about the rate at which Evolution Energy Minerals will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for Evolution Energy Minerals

Expectations from some of the Australian Metals and Mining analysts is that Evolution Energy Minerals is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of AU$1.9m in 2026. So, the company is predicted to breakeven approximately 3 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 54% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Evolution Energy Minerals' 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. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

One thing we’d like to point out is that Evolution Energy Minerals has no debt on its balance sheet, which is rare for a loss-making metals and mining company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

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There are key fundamentals of Evolution Energy Minerals 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 Evolution Energy Minerals, take a look at Evolution Energy Minerals' company page on Simply Wall St. We've also put together a list of relevant aspects you should look at: