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Analysts Expect Breakeven For Bluestone Resources Inc. (CVE:BSR) Before Long

Bluestone Resources Inc. (CVE:BSR) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Bluestone Resources Inc. engages in the exploration and development of precious metals. On 31 December 2022, the CA$80m market-cap company posted a loss of US$23m for its most recent financial year. Many investors are wondering about the rate at which Bluestone Resources will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for Bluestone Resources

According to the 2 industry analysts covering Bluestone Resources, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of US$391m in 2025. So, the company is predicted to breakeven approximately 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 66%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

We're not going to go through company-specific developments for Bluestone Resources given that this is a high-level summary, though, take into account that generally 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.

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One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 17% 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 Bluestone Resources to cover in one brief article, but the key fundamentals for the company can all be found in one place – Bluestone Resources' company page on Simply Wall St. We've also compiled a list of important aspects you should further examine:

  1. Valuation: What is Bluestone 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 Bluestone Resources is currently mispriced by the market.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Bluestone Resources’s board and the CEO’s background.

  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.

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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