Breakeven Is Near for Titan Mining Corporation (TSE:TI)

With the business potentially at an important milestone, we thought we'd take a closer look at Titan Mining Corporation's (TSE:TI) future prospects. Titan Mining Corporation, a natural resources company, acquires, explores, and develops mineral properties. The company’s loss has recently broadened since it announced a US$11m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$16m, moving it further away from breakeven. The most pressing concern for investors is Titan Mining's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Titan Mining

According to some industry analysts covering Titan Mining, breakeven is near. They expect the company to post a final loss in 2020, before turning a profit of US$4.4m in 2021. The company is therefore projected to breakeven around 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 51%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth

We're not going to go through company-specific developments for Titan Mining given that this is a high-level summary, however, 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. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with Titan Mining is its debt-to-equity ratio of 193%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Titan 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 Titan Mining, take a look at Titan Mining's company page on Simply Wall St. We've also put together a list of relevant aspects you should further examine:

1. Valuation: What is Titan Mining 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 Titan Mining 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 Titan Mining’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.

This article by Simply Wall St is general in nature. 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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