Loss-Making Hycroft Mining Holding Corporation (NASDAQ:HYMC) Expected To Breakeven In The Medium-Term

We feel now is a pretty good time to analyse Hycroft Mining Holding Corporation's (NASDAQ:HYMC) business as it appears the company may be on the cusp of a considerable accomplishment. Hycroft Mining Holding Corporation operates as a gold and silver producer in the United States. The company’s loss has recently broadened since it announced a US$99m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$135m, moving it further away from breakeven. Many investors are wondering about the rate at which Hycroft Mining Holding 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.

Check out our latest analysis for Hycroft Mining Holding

Hycroft Mining Holding is bordering on breakeven, according to the 2 American Metals and Mining analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$188m in 2022. So, the company is predicted to breakeven approximately 2 years from now. 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 46% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Hycroft Mining Holding's upcoming projects, however, keep in mind that generally metals and mining companies, depending on the stage of operation and metals mined, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

One thing we would like to bring into light with Hycroft Mining Holding is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are too many aspects of Hycroft Mining Holding to cover in one brief article, but the key fundamentals for the company can all be found in one place – Hycroft Mining Holding's company page on Simply Wall St. We've also put together a list of pertinent aspects you should further examine:

1. Valuation: What is Hycroft Mining Holding 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 Hycroft Mining Holding 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 Hycroft Mining Holding’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.

When trading Hycroft Mining Holding or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.