Yahoo Finance Loss-Making Silver X Mining Corp. (CVE:AGX) Set To Breakeven
Silver X Mining Corp. (CVE:AGX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Silver X Mining Corp., an exploration stage company, engages in the exploration, acquisition, and development of mineral properties in the Americas. The company’s loss has recently broadened since it announced a CA$5.0m loss in the full financial year, compared to the latest trailing-twelve-month loss of CA$5.9m, moving it further away from breakeven. As path to profitability is the topic on Silver X 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.
Check out our latest analysis for Silver X Mining
Silver X Mining is bordering on breakeven, according to some Canadian Metals and Mining analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of CA$5.7m in 2022. So, the company is predicted to breakeven approximately 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 55%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Silver X Mining given that this is a high-level summary, however, keep in mind that generally 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 Silver X Mining 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:
There are key fundamentals of Silver X 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 Silver X Mining, take a look at Silver X Mining's company page on Simply Wall St. We've also put together a list of relevant aspects you should look at:
Historical Track Record: What has Silver X 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 Silver X 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.
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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.
