When Can We Expect A Profit From Viridis Mining and Minerals Limited (ASX:VMM)?

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Viridis Mining and Minerals Limited (ASX:VMM) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Viridis Mining and Minerals Limited engages in the acquisition, development, exploration, and evaluation of mineral properties in Canada and Australia. The AU$132m market-cap company’s loss lessened since it announced a AU$8.3m loss in the full financial year, compared to the latest trailing-twelve-month loss of AU$6.5m, as it approaches breakeven. Many investors are wondering about the rate at which Viridis Mining and Minerals will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

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Viridis Mining and Minerals is bordering on breakeven, according to the 2 Australian Metals and Mining analysts. They anticipate the company to incur a final loss in 2027, before generating positive profits of AU$31m in 2028. Therefore, the company is expected to breakeven roughly 3 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2028? Working backwards from analyst estimates, it turns out that they expect the company to grow 52% 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 Viridis Mining and Minerals' upcoming projects, though, take into account that typically 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.

See our latest analysis for Viridis Mining and Minerals

One thing we’d like to point out is that Viridis Mining and Minerals 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 too many aspects of Viridis Mining and Minerals to cover in one brief article, but the key fundamentals for the company can all be found in one place – Viridis Mining and Minerals' company page on Simply Wall St. We've also compiled a list of essential aspects you should further research:

1. Historical Track Record: What has Viridis Mining and 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 Viridis Mining and 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.