Horizon Minerals Limited (ASX:HRZ) About To Shift From Loss To Profit

With the business potentially at an important milestone, we thought we'd take a closer look at Horizon Minerals Limited's (ASX:HRZ) future prospects. Horizon Minerals Limited engages in the exploration, development, and production of gold and other mineral resources in Australia. The AU$219m market-cap company announced a latest loss of AU$24m on 30 June 2025 for its most recent financial year result. Many investors are wondering about the rate at which Horizon Minerals will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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According to some industry analysts covering Horizon Minerals, breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of AU$38m in 2026. 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 86%, which is rather optimistic! 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 Horizon Minerals' upcoming projects, though, keep 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.

View our latest analysis for Horizon Minerals

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 9.3% 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 key fundamentals of Horizon Minerals 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 Horizon Minerals, take a look at Horizon Minerals' company page on Simply Wall St. We've also compiled a list of key aspects you should further examine:

1. Historical Track Record: What has Horizon Minerals' 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 Horizon Minerals' 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.

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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.