We Might See A Profit From Silver X Mining Corp. (CVE:AGX) Soon
With the business potentially at an important milestone, we thought we'd take a closer look at Silver X Mining Corp.'s (CVE:AGX) future prospects. Silver X Mining Corp. engages in the exploration, acquisition, and development of mineral properties in the Americas. With the latest financial year loss of US$9.2m and a trailing-twelve-month loss of US$11m, the CA$40m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Silver X Mining 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 Silver X Mining
Silver X Mining is bordering on breakeven, according to some Canadian Metals and Mining analysts. They expect the company to post a final loss in 2023, before turning a profit of US$1.7m in 2024. Therefore, the company is expected to breakeven roughly a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 107% is expected, 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 Silver X Mining's growth isn’t the focus of this broad overview, though, keep 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. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 4.8% 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 key fundamentals of Silver X Mining 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 Silver X Mining, take a look at Silver X Mining's company page on Simply Wall St. We've also compiled a list of key aspects you should further examine:
Historical Track Record: What has Silver X Mining'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.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Silver X Mining'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.
