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G Mining Ventures Corp. (CVE:GMIN) Is Expected To Breakeven In The Near Future

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G Mining Ventures Corp. (CVE:GMIN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. G Mining Ventures Corp. engages in the acquisition, exploration, evaluation, and development of mineral properties. The CA$191m market-cap company announced a latest loss of CA$2.8m on 31 December 2021 for its most recent financial year result. The most pressing concern for investors is G Mining Ventures' 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.

See our latest analysis for G Mining Ventures

G Mining Ventures is bordering on breakeven, according to the 3 Canadian Metals and Mining analysts. They expect the company to post a final loss in 2023, before turning a profit of CA$29m in 2024. The company is therefore projected to breakeven around 2 years from today. 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 54% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

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

Given this is a high-level overview, we won’t go into details of G Mining Ventures' upcoming projects, but, 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.

Before we wrap up, there’s one aspect worth mentioning. G Mining Ventures currently has no debt on its balance sheet, which is rare for a loss-making metals and mining company, which typically has high 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 G Mining Ventures, so if you are interested in understanding the company at a deeper level, take a look at G Mining Ventures' company page on Simply Wall St. We've also put together a list of essential factors you should further research:

  1. Valuation: What is G Mining Ventures 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 G Mining Ventures 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 G Mining Ventures’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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