Breakeven Is Near for Green Minerals AS (OB:GEM)

With the business potentially at an important milestone, we thought we'd take a closer look at Green Minerals AS' (OB:GEM) future prospects. Green Minerals AS provides offshore mining and marine minerals on the Norwegian continental shelf. The kr59m market-cap company posted a loss in its most recent financial year of kr11m and a latest trailing-twelve-month loss of kr8.0m shrinking the gap between loss and breakeven. As path to profitability is the topic on Green Minerals' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Green Minerals

According to some industry analysts covering Green Minerals, breakeven is near. They expect the company to post a final loss in 2022, before turning a profit of kr59m in 2023. So, the company is predicted to breakeven approximately a year 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 -61%,

We're not going to go through company-specific developments for Green Minerals given that this is a high-level summary, though, bear in mind that typically 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 Green Minerals 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. 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 Green Minerals to cover in one brief article, but the key fundamentals for the company can all be found in one place – Green Minerals' company page on Simply Wall St. We've also compiled a list of important factors you should further examine:

1. Historical Track Record: What has Green Minerals' 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 Green Minerals' 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.