Analysts Expect Panthera Resources PLC (LON:PAT) To Breakeven Soon

With the business potentially at an important milestone, we thought we'd take a closer look at Panthera Resources PLC's (LON:PAT) future prospects. Panthera Resources PLC primarily engages in the exploration and development of gold projects in India and West Africa. The UK£17m market-cap company’s loss lessened since it announced a US$1.1m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$987k, as it approaches breakeven. As path to profitability is the topic on Panthera Resources' investors mind, we've decided to gauge market sentiment. 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 Panthera Resources

Panthera Resources is bordering on breakeven, according to some British Metals and Mining analysts. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$2.2m in 2021. So, the company is predicted to breakeven approximately 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of -49%,

Given this is a high-level overview, we won’t go into details of Panthera Resources' upcoming projects, but, bear in mind that generally metals and mining companies, depending on the stage of operation and metals mined, have irregular periods of cash flow. So, periods of lower growth in the upcoming years 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 Panthera Resources 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. 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 too many aspects of Panthera Resources to cover in one brief article, but the key fundamentals for the company can all be found in one place – Panthera Resources' company page on Simply Wall St. We've also compiled a list of relevant aspects you should further research:

1. Historical Track Record: What has Panthera 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 Panthera 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. 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.
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