Yahoo Finance Metalla Royalty & Streaming Ltd. (CVE:MTA): When Will It Breakeven?
With the business potentially at an important milestone, we thought we'd take a closer look at Metalla Royalty & Streaming Ltd.'s (CVE:MTA) future prospects. Metalla Royalty & Streaming Ltd., a precious metals royalty and streaming company, engages in the acquisition and management of precious metal royalties, streams, and related production-based interests in Canada and Australia. The CA$420m market-cap company announced a latest loss of US$8.1m on 31 December 2020 for its most recent financial year result. The most pressing concern for investors is Metalla Royalty & Streaming's 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 Metalla Royalty & Streaming
According to the 2 industry analysts covering Metalla Royalty & Streaming, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$3.5m in 2022. Therefore, the company is expected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 53% year-on-year, on average, 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 Metalla Royalty & Streaming's growth isn’t the focus of this broad overview, 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. 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. The company has managed its capital prudently, with debt making up 4.1% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of Metalla Royalty & Streaming to cover in one brief article, but the key fundamentals for the company can all be found in one place – Metalla Royalty & Streaming's company page on Simply Wall St. We've also put together a list of important factors you should look at:
Valuation: What is Metalla Royalty & Streaming 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 Metalla Royalty & Streaming 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 Metalla Royalty & Streaming’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.
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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