i-80 Gold Corp.'s (TSE:IAU) Shift From Loss To Profit

With the business potentially at an important milestone, we thought we'd take a closer look at i-80 Gold Corp.'s (TSE:IAU) future prospects. i-80 Gold Corp., a mining company, explores for, develops, and produces gold, silver, and polymetallic deposits in the United States. With the latest financial year loss of US$122m and a trailing-twelve-month loss of US$132m, the CA$1.1b market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is i-80 Gold's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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Consensus from 3 of the Canadian Metals and Mining analysts is that i-80 Gold is on the verge of breakeven. They expect the company to post a final loss in 2026, before turning a profit of US$16m in 2027. Therefore, the company is expected to breakeven roughly 2 years 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 88% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving i-80 Gold's growth isn’t the focus of this broad overview, 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 that a high growth rate is not unusual, especially if the company is currently in an investment period.

View our latest analysis for i-80 Gold

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 38% 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 too many aspects of i-80 Gold to cover in one brief article, but the key fundamentals for the company can all be found in one place – i-80 Gold's company page on Simply Wall St. We've also compiled a list of key factors you should further examine:

1. Historical Track Record: What has i-80 Gold's 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 i-80 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.