When Will Pantoro Gold Limited (ASX:PNR) Become Profitable?

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We feel now is a pretty good time to analyse Pantoro Gold Limited's (ASX:PNR) business as it appears the company may be on the cusp of a considerable accomplishment. Pantoro Gold Limited, together with its subsidiaries, engages in the gold mining, processing, and exploration activities in Western Australia. With the latest financial year loss of AU$49m and a trailing-twelve-month loss of AU$27m, the AU$1.7b market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Pantoro Gold will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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According to the 5 industry analysts covering Pantoro Gold, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of AU$166m in 2026. So, the company is predicted to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 59% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Pantoro Gold's upcoming projects, however, 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, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

View our latest analysis for Pantoro Gold

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 3.4% 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 Pantoro Gold 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 Pantoro Gold, take a look at Pantoro Gold's company page on Simply Wall St. We've also compiled a list of important aspects you should further examine:

1. Valuation: What is Pantoro Gold 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 Pantoro Gold is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Pantoro Gold’s 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.