Breakeven On The Horizon 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 kr55m market-cap company’s loss lessened since it announced a kr11m loss in the full financial year, compared to the latest trailing-twelve-month loss of kr11m, as it approaches breakeven. The most pressing concern for investors is Green Minerals' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Green Minerals

Green Minerals is bordering on breakeven, according to some Norwegian Metals and Mining analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of kr72m in 2024. Therefore, the company is expected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow -0.4% year-on-year, on average,

Underlying developments driving Green Minerals' growth isn’t the focus of this broad overview, however, take into account that typically metals and mining companies, depending on the stage of operation and metals mined, have irregular periods of cash flow. This means that a low or volatile growth rate in the near future is not unusual, especially if the company is currently in an investment period.

One thing we’d like to point out is that Green Minerals 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:

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

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.