Yahoo Finance Breakeven On The Horizon For Aya Gold & Silver Inc. (TSE:AYA)
We feel now is a pretty good time to analyse Aya Gold & Silver Inc.'s (TSE:AYA) business as it appears the company may be on the cusp of a considerable accomplishment. Aya Gold & Silver Inc., together with its subsidiaries, engages in the acquisition, exploration, evaluation, and development of precious metal properties in Morocco. The CA$629m market-cap company posted a loss in its most recent financial year of US$307k and a latest trailing-twelve-month loss of US$2.8m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Aya Gold & Silver's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for Aya Gold & Silver
Consensus from 3 of the Canadian Metals and Mining analysts is that Aya Gold & Silver is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of US$49m in 2024. So, the company is predicted to breakeven approximately 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 71% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Aya Gold & Silver's growth isn’t the focus of this broad overview, though, bear in mind that typically 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. 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 Aya Gold & Silver has no debt on its balance sheet, which is rare for a loss-making metals and mining company, which usually has a high level of 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:
This article is not intended to be a comprehensive analysis on Aya Gold & Silver, so if you are interested in understanding the company at a deeper level, take a look at Aya Gold & Silver's company page on Simply Wall St. We've also put together a list of relevant factors you should further examine:
Valuation: What is Aya Gold & Silver 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 Aya Gold & Silver 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 Aya Gold & Silver’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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