Maritime Resources Corp. (CVE:MAE): Are Analysts Optimistic?
With the business potentially at an important milestone, we thought we'd take a closer look at Maritime Resources Corp.'s (CVE:MAE) future prospects. Maritime Resources Corp., an exploration stage company, engages in the exploration and development of mineral properties. The CA$21m market-cap company posted a loss in its most recent financial year of CA$1.6m and a latest trailing-twelve-month loss of CA$1.6m shrinking the gap between loss and breakeven. The most pressing concern for investors is Maritime Resources' 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 Maritime Resources
Consensus from 2 of the Canadian Metals and Mining analysts is that Maritime Resources is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of CA$4.5m in 2024. The company is therefore projected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 78% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Maritime Resources' growth isn’t the focus of this broad overview, though, bear in mind that generally a metal and mining business has lumpy cash flows which are contingent on the natural resource mined and stage at which the company is operating. 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 aspect worth mentioning. Maritime Resources currently 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.
Next Steps:
There are too many aspects of Maritime Resources to cover in one brief article, but the key fundamentals for the company can all be found in one place – Maritime Resources' company page on Simply Wall St. We've also put together a list of key aspects you should further examine:
Valuation: What is Maritime Resources 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 Maritime Resources is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Maritime Resources’s board and the CEO’s background.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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