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Loss-Making Panthera Resources PLC (LON:PAT) Set To Breakeven

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We feel now is a pretty good time to analyse Panthera Resources PLC's (LON:PAT) business as it appears the company may be on the cusp of a considerable accomplishment. Panthera Resources PLC primarily engages in the exploration and development of gold projects in India and West Africa. The UK£17m market-cap company posted a loss in its most recent financial year of US$1.1m and a latest trailing-twelve-month loss of US$987k shrinking the gap between loss and breakeven. The most pressing concern for investors is Panthera Resources' path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for Panthera Resources

Panthera Resources is bordering on breakeven, according to some British Metals and Mining analysts. They expect the company to post a final loss in 2020, before turning a profit of US$2.2m in 2021. The company is therefore projected to breakeven around a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow -49% year-on-year, on average,

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

Underlying developments driving Panthera Resources' growth isn’t the focus of this broad overview, 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 low or volatile growth rate in the near future is not unusual, especially if the company is currently in an investment period.

Before we wrap up, there’s one aspect worth mentioning. Panthera Resources 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. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Panthera Resources, so if you are interested in understanding the company at a deeper level, take a look at Panthera Resources' company page on Simply Wall St. We've also compiled a list of relevant factors you should further examine:

  1. Historical Track Record: What has Panthera Resources' 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.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Panthera Resources' 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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