Troilus Gold Corp.'s (TSE:TLG) Shift From Loss To Profit

With the business potentially at an important milestone, we thought we'd take a closer look at Troilus Gold Corp.'s (TSE:TLG) future prospects. Troilus Gold Corp. acquires, explores for, evaluates, and develops mineral properties in Canada. With the latest financial year loss of CA$34m and a trailing-twelve-month loss of CA$31m, the CA$329m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Troilus Gold's investors mind, we've decided to gauge market sentiment. 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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Consensus from 2 of the Canadian Metals and Mining analysts is that Troilus Gold is on the verge of breakeven. They expect the company to post a final loss in 2026, before turning a profit of CA$24m in 2027. The company is therefore projected to breakeven around 2 years from today. 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 87% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Troilus Gold's growth isn’t the focus of this broad overview, but, keep in mind that typically 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.

Check out our latest analysis for Troilus Gold

One thing we’d like to point out is that Troilus Gold has no debt on its balance sheet, which is quite unusual for a cash-burning 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:

This article is not intended to be a comprehensive analysis on Troilus Gold, so if you are interested in understanding the company at a deeper level, take a look at Troilus Gold's company page on Simply Wall St. We've also put together a list of pertinent aspects you should look at:

1. Valuation: What is Troilus 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 Troilus 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 Troilus 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.