Australia markets closed
  • ALL ORDS

    6,678.70
    -81.90 (-1.21%)
     
  • ASX 200

    6,474.20
    -80.80 (-1.23%)
     
  • AUD/USD

    0.6406
    -0.0098 (-1.51%)
     
  • OIL

    79.74
    -1.49 (-1.83%)
     
  • GOLD

    1,668.30
    -0.30 (-0.02%)
     
  • BTC-AUD

    30,281.58
    -308.96 (-1.01%)
     
  • CMC Crypto 200

    443.49
    +0.06 (+0.01%)
     
  • AUD/EUR

    0.6532
    -0.0084 (-1.27%)
     
  • AUD/NZD

    1.1439
    +0.0099 (+0.88%)
     
  • NZX 50

    11,065.71
    -134.33 (-1.20%)
     
  • NASDAQ

    10,971.22
    -193.56 (-1.73%)
     
  • FTSE

    6,893.81
    +12.22 (+0.18%)
     
  • Dow Jones

    28,725.51
    -500.10 (-1.71%)
     
  • DAX

    12,114.36
    +138.81 (+1.16%)
     
  • Hang Seng

    17,222.83
    +56.96 (+0.33%)
     
  • NIKKEI 225

    25,937.21
    -484.84 (-1.83%)
     

Analysts Are Optimistic We'll See A Profit From Equus Mining Limited (ASX:EQE)

·3-min read

We feel now is a pretty good time to analyse Equus Mining Limited's (ASX:EQE) business as it appears the company may be on the cusp of a considerable accomplishment. Equus Mining Limited operates as an exploration and development company in Chile. The AU$33m market-cap company announced a latest loss of AU$1.7m on 30 June 2021 for its most recent financial year result. Many investors are wondering about the rate at which Equus Mining will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for Equus Mining

According to some industry analysts covering Equus Mining, breakeven is near. They expect the company to post a final loss in 2021, before turning a profit of AU$462k in 2022. Therefore, the company is expected to breakeven roughly a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 134% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

Given this is a high-level overview, we won’t go into details of Equus Mining's upcoming projects, though, take into account that generally metals and mining companies, depending on the stage of operation and metals mined, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

Before we wrap up, there’s one aspect worth mentioning. Equus Mining currently has no debt on its balance sheet, which is quite unusual for a cash-burning metals and mining company, which usually has a high level of 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 key fundamentals of Equus Mining 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 Equus Mining, take a look at Equus Mining's company page on Simply Wall St. We've also put together a list of important aspects you should look at:

  1. Historical Track Record: What has Equus Mining'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 Equus Mining'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.

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

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.