Salt Lake Potash Limited’s (ASX:SO4): Salt Lake Potash Limited engages in the exploration and development of resource projects in Australia. The AU$99.78m market-cap posted a loss in its most recent financial year of -AU$9.20m and a latest trailing-twelve-month loss of -AU$9.59m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is SO4’s path to profitability – when will it breakeven? Below I will provide a high-level summary of the industry analysts’ expectations for SO4.

View out our latest analysis for Salt Lake Potash

According to the industry analysts covering SO4, breakeven is near. They anticipate the company to incur a final loss in -1, before generating positive profits of AU$0 in . So, SO4 is predicted to breakeven approximately a few months from now. What rate will SO4 have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of -4.05%,

Given this is a high-level overview, I won’t go into details of SO4’s upcoming projects, though, bear in mind that typically periods of lower growth in the upcoming years is not out of the ordinary, particularly when a company is in a period of investment.

Before I wrap up, there’s one aspect worth mentioning. SO4 has managed its capital judiciously, with debt making up 0.46% of equity. This means that SO4 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:

There are key fundamentals of SO4 which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at SO4, take a look at SO4’s company page on Simply Wall St. I’ve also compiled a list of relevant aspects you should further research:

1. Historical Track Record: What has SO4’s 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.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Salt Lake Potash’s board and the CEO’s back ground.

3. 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.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.