Maritime Resources Corp.'s (CVE:MAE) Path To Profitability

We feel now is a pretty good time to analyse Maritime Resources Corp.'s (CVE:MAE) business as it appears the company may be on the cusp of a considerable accomplishment. Maritime Resources Corp., an exploration stage company, engages in the exploration and development of mineral properties. The CA$66m market-cap company posted a loss in its most recent financial year of CA$2.5m and a latest trailing-twelve-month loss of CA$5.6m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Maritime Resources will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for Maritime Resources

Expectations from some of the Canadian Metals and Mining analysts is that Maritime Resources is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of CA$26m in 2026. The company is therefore projected 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 120% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Maritime Resources' upcoming projects, but, keep in mind that by and large metals and mining companies, depending on the stage of operation and metals mined, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that 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 key fundamentals of Maritime Resources which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Maritime Resources, take a look at Maritime Resources' company page on Simply Wall St. We've also put together a list of key factors 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.