Yahoo Finance Analysts Are Optimistic We'll See A Profit From Bear Creek Mining Corporation (CVE:BCM)
Bear Creek Mining Corporation (CVE:BCM) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Bear Creek Mining Corporation engages in the acquisition, exploration, and development of precious and base metal properties in Peru. With the latest financial year loss of US$22m and a trailing-twelve-month loss of US$18m, the CA$128m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Bear Creek Mining's investors mind, we've decided to gauge market sentiment. 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 Bear Creek Mining
Bear Creek Mining is bordering on breakeven, according to the 4 Canadian Metals and Mining analysts. They expect the company to post a final loss in 2022, before turning a profit of US$38m in 2023. Therefore, the company is expected to breakeven roughly 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 54% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for Bear Creek Mining given that this is a high-level summary, though, take into account that typically 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 judiciously, with debt making up 32% 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 Bear Creek Mining to cover in one brief article, but the key fundamentals for the company can all be found in one place – Bear Creek Mining's company page on Simply Wall St. We've also put together a list of relevant factors you should further research:
Historical Track Record: What has Bear Creek 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 Bear Creek 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.
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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