When Will Silver Tiger Metals Inc. (CVE:SLVR) Breakeven?

Silver Tiger Metals Inc. (CVE:SLVR) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Silver Tiger Metals Inc. engages in the exploration and evaluation of mineral properties in Mexico. With the latest financial year loss of CA$3.7m and a trailing-twelve-month loss of CA$3.3m, the CA$58m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Silver Tiger Metals' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Silver Tiger Metals

According to the 2 industry analysts covering Silver Tiger Metals, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of CA$10.0m in 2025. Therefore, the company is expected to breakeven just over a year 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 189%, 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 Tiger Metals' growth isn’t the focus of this broad overview, however, take into account 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. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

Before we wrap up, there’s one aspect worth mentioning. Silver Tiger Metals currently has no debt on its balance sheet, which is rare for a loss-making metals and mining company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Silver Tiger Metals to cover in one brief article, but the key fundamentals for the company can all be found in one place – Silver Tiger Metals' company page on Simply Wall St. We've also put together a list of important factors you should look at:

1. Historical Track Record: What has Silver Tiger Metals' 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 Tiger Metals' 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.