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. The CA$271m market-cap company posted a loss in its most recent financial year of CA$4.2m and a latest trailing-twelve-month loss of CA$4.5m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Silver Tiger Metals will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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According to the 2 industry analysts covering Silver Tiger Metals, the consensus is that breakeven is near. They expect the company to post a final loss in 2026, before turning a profit of CA$26m in 2027. So, the company is predicted to breakeven approximately 2 years from today. 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 106% is expected, 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 Silver Tiger Metals given that this is a high-level summary, 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. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

View our latest analysis for Silver Tiger Metals

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 usually has a high level of 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:

This article is not intended to be a comprehensive analysis on Silver Tiger Metals, so if you are interested in understanding the company at a deeper level, take a look at Silver Tiger Metals' company page on Simply Wall St. We've also compiled a list of relevant factors you should look at:

1. Valuation: What is Silver Tiger Metals worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Silver Tiger Metals is currently mispriced by the market.
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’s 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.