G Mining Ventures Corp. (TSE:GMIN) About To Shift From Loss To Profit

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., a mining company, engages in the acquisition, exploration, and development of precious metal projects. The company’s loss has recently broadened since it announced a US$7.2m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$12m, moving it further away from breakeven. As path to profitability is the topic on G Mining Ventures' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for G Mining Ventures

Consensus from 4 of the Canadian Metals and Mining analysts is that G Mining Ventures is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of US$17m in 2024. So, the company is predicted to breakeven approximately 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 92% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving G Mining Ventures' growth isn’t the focus of this broad overview, though, bear in mind 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 that a high growth rate is not unusual, especially if the company is currently in an investment period.

Before we wrap up, there’s one issue worth mentioning. G Mining Ventures currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in G Mining Ventures' case is 57%. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of G Mining Ventures to cover in one brief article, but the key fundamentals for the company can all be found in one place – G Mining Ventures' company page on Simply Wall St. We've also put together a list of important aspects 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.