Market Sentiment Around Loss-Making Maritime Resources Corp. (CVE:MAE)

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. With the latest financial year loss of CA$1.8m and a trailing-twelve-month loss of CA$2.2m, the CA$27m market-cap company amplified its loss by moving further away from its breakeven target. 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?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for Maritime Resources

According to some industry analysts covering Maritime Resources, breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of CA$10m in 2025. 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 113% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

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

Before we wrap up, there’s one aspect worth mentioning. Maritime Resources currently has no debt on its balance sheet, which is quite unusual for a cash-burning metals and mining company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

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 pertinent 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.