Yahoo Finance Silver X Mining Corp. (CVE:AGX) On The Verge Of Breaking Even
We feel now is a pretty good time to analyse Silver X Mining Corp.'s (CVE:AGX) business as it appears the company may be on the cusp of a considerable accomplishment. 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. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
View 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$4.7m in 2022. 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 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 87% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Silver X Mining's upcoming projects, however, bear in mind that by and large 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 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:
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 compiled a list of essential 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.
