When Will Metalla Royalty & Streaming Ltd. (CVE:MTA) Turn A Profit?
Metalla Royalty & Streaming Ltd. (CVE:MTA) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Metalla Royalty & Streaming Ltd., a precious metals royalty and streaming company, engages in the acquisition and management of precious metal royalties, streams, and related production-based interests in Canada, Australia, Argentina, Mexico, and the United States. The CA$245m market-cap company’s loss lessened since it announced a US$11m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$9.2m, as it approaches breakeven. Many investors are wondering about the rate at which Metalla Royalty & Streaming will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Metalla Royalty & Streaming
Consensus from 4 of the Canadian Metals and Mining analysts is that Metalla Royalty & Streaming is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$7.1m in 2025. The company is therefore projected to breakeven around 2 years from now. 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 117% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Metalla Royalty & Streaming's upcoming projects, but, bear in mind that by and large metals and mining companies, depending on the stage of operation and metals mined, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 6.2% 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:
There are too many aspects of Metalla Royalty & Streaming to cover in one brief article, but the key fundamentals for the company can all be found in one place – Metalla Royalty & Streaming's company page on Simply Wall St. We've also put together a list of essential aspects you should look at:
Valuation: What is Metalla Royalty & Streaming 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 Metalla Royalty & Streaming 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 Metalla Royalty & Streaming’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.
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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.
