When Will Maritime Resources Corp. (CVE:MAE) Turn A Profit?

With the business potentially at an important milestone, we thought we'd take a closer look at Maritime Resources Corp.'s (CVE:MAE) future prospects. Maritime Resources Corp., an exploration stage company, engages in the exploration and development of mineral properties. The CA$27m market-cap company posted a loss in its most recent financial year of CA$1.8m and a latest trailing-twelve-month loss of CA$2.2m leading to an even wider 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.

Check out our latest analysis for Maritime Resources

Maritime Resources is bordering on breakeven, according to some Canadian Metals and Mining analysts. They expect the company to post a final loss in 2024, before turning a profit of CA$10m in 2025. The company is therefore projected to breakeven around 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 113%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Maritime Resources' 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. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

One thing we’d like to point out is that Maritime Resources 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. 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:

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 compiled a list of pertinent aspects you should further examine:

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.