Breakeven Is Near for G Mining Ventures Corp. (TSE:GMIN)

G Mining Ventures Corp. (TSE:GMIN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. G Mining Ventures Corp. engages in the acquisition, exploration, evaluation, and development of mineral properties. The CA$932m market-cap company posted a loss in its most recent financial year of US$7.2m and a latest trailing-twelve-month loss of US$8.5m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which G Mining Ventures 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.

Check out our latest analysis for G Mining Ventures

G Mining Ventures is bordering on breakeven, according to the 4 Canadian Metals and Mining analysts. They expect the company to post a final loss in 2023, before turning a profit of US$48m in 2024. So, the company is predicted to breakeven approximately a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 63% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for G Mining Ventures given that this is a high-level summary, but, keep in mind that generally metals and mining companies, depending on the stage of operation and metals mined, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 31% 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 G Mining Ventures 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 G Mining Ventures, take a look at G Mining Ventures' company page on Simply Wall St. We've also compiled a list of relevant factors you should look at:

1. Historical Track Record: What has G Mining Ventures' 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 G Mining Ventures' 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.