Analysts Are Optimistic We'll See A Profit From Maritime Resources Corp. (CVE:MAE)

Maritime Resources Corp. (CVE:MAE) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Maritime Resources Corp., a junior gold and base metals exploration company, engages in the acquisition, exploration, and development of mineral properties in Canada. The CA$134m market-cap company posted a loss in its most recent financial year of CA$6.9m and a latest trailing-twelve-month loss of CA$6.4m shrinking the gap between loss and breakeven. The most pressing concern for investors is Maritime Resources' 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.

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According to some industry analysts covering Maritime Resources, breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of CA$1.7m in 2025. Therefore, the company is expected to breakeven roughly a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 59% year-on-year, on average, 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.

We're not going to go through company-specific developments for Maritime Resources given that this is a high-level summary, though, keep in mind that generally 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.

See our latest analysis for Maritime Resources

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 16% 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:

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

1. Historical Track Record: What has Maritime Resources' 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 Maritime Resources' 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.