When Will Gruvaktiebolaget Viscaria (STO:VISC) Breakeven?

We feel now is a pretty good time to analyse Gruvaktiebolaget Viscaria's (STO:VISC) business as it appears the company may be on the cusp of a considerable accomplishment. Gruvaktiebolaget Viscaria engages in the exploration and evaluation of mineral resources in Sweden. The company’s loss has recently broadened since it announced a kr48m loss in the full financial year, compared to the latest trailing-twelve-month loss of kr64m, moving it further away from breakeven. Many investors are wondering about the rate at which Gruvaktiebolaget Viscaria 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 some industry analysts covering Gruvaktiebolaget Viscaria, breakeven is near. They expect the company to post a final loss in 2026, before turning a profit of kr158m in 2027. Therefore, the company is expected to breakeven roughly 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 66% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Gruvaktiebolaget Viscaria's growth isn’t the focus of this broad overview, however, keep in mind that typically 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. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

View our latest analysis for Gruvaktiebolaget Viscaria

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 1.0% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Gruvaktiebolaget Viscaria which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Gruvaktiebolaget Viscaria, take a look at Gruvaktiebolaget Viscaria's 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 Gruvaktiebolaget Viscaria's 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 Gruvaktiebolaget Viscaria'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.