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Foran Mining Corporation (TSE:FOM) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Foran Mining Corporation engages in the acquisition, exploration, and development of mineral properties. The CA$1.6b market-cap company posted a loss in its most recent financial year of CA$14m and a latest trailing-twelve-month loss of CA$6.3m shrinking the gap between loss and breakeven. As path to profitability is the topic on Foran Mining's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for Foran Mining
Consensus from 3 of the Canadian Metals and Mining analysts is that Foran Mining is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of CA$35m in 2026. So, the company is predicted to breakeven just over a year 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 49% 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 Foran Mining's 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.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 7.4% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Foran Mining, so if you are interested in understanding the company at a deeper level, take a look at Foran Mining's company page on Simply Wall St. We've also put together a list of pertinent aspects you should further research:
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Valuation: What is Foran Mining 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 Foran Mining 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 Foran Mining’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.