Silver X Mining Corp.'s (CVE:AGX) Shift From Loss To Profit

We feel now is a pretty good time to analyse Silver X Mining Corp.'s (CVE:AGX) business as it appears the company may be on the cusp of a considerable accomplishment. Silver X Mining Corp. explores, acquires, and develops mineral properties in the Americas. With the latest financial year loss of US$4.5m and a trailing-twelve-month loss of US$3.5m, the CA$157m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Silver X Mining's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Silver X Mining is bordering on breakeven, according to some Canadian Metals and Mining analysts. They expect the company to post a final loss in 2025, before turning a profit of US$469k in 2026. Therefore, the company is expected to breakeven just over a year 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 174% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Silver X Mining's growth isn’t the focus of this broad overview, though, bear in mind that by and large 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. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Check out our latest analysis for Silver X Mining

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 13% 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 Silver X Mining to cover in one brief article, but the key fundamentals for the company can all be found in one place – Silver X Mining's company page on Simply Wall St. We've also put together a list of relevant factors you should look at:

1. Historical Track Record: What has Silver X Mining'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 Silver X Mining'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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.