Magna Mining Inc. (CVE:NICU) is about to turn from a loss to a profit

Magna Mining Company (CVE: neonatal intensive care unit) It may be approaching a major milestone in its business, so we’d like to shed some light on the company. Magna Mining Inc. operates In the field of acquisition, exploration and development of mineral properties in Canada. The company’s losses have widened recently since it reported a loss of C$9.9 million in the full fiscal year, compared to the last twelve-month loss of C$14 million, keeping it away from breakeven. The most pressing concern for investors is Magna Mining’s path to profitability – when will it break even? In this article, we will discuss the company’s growth expectations and when analysts expect it to become profitable.

Check out our latest analysis for Magna Mining

Some Canadian metals and mining analysts forecast that Magna Mining is close to breaking even. They expect the company to post a final loss in 2024, before turning a profit of C$3.3 million in 2025. Therefore, the company is expected to break even about 12 months from now or less. How fast must the company grow to reach consensus forecasts of breakeven by 2025? Looking back from analyst estimates, they expect the company to grow 114% year-on-year, on average, which is very buoyant. If the business grows at a slower rate, it will become profitable later than expected.

The fundamental developments driving Magna Mining’s growth are not the focus of this broad overview, but keep in mind that metals and mining businesses in general have lumpy cash flows that depend on the natural resources extracted and the stage at which the company operates. . So, a high growth rate is not out of the ordinary, especially when the company is in an investment period.

Before we conclude, there is one aspect worth mentioning. Magna Mining currently 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. The company currently operates through shareholder financing and has no debt obligation, which reduces concerns about repayment and makes it a less risky investment.

There are many aspects of Magna Mining that cannot be covered in one brief article, but the basic fundamentals of the company can be found in one place – Magna Mining company page on Simply Wall St. We have also compiled a list of relevant factors you should consider:

1. Historical record: How has Magna Mining performed over the past? Go into more detail in the previous track record analysis and take a look at it Free visual representations of our analysis For more clarity.

2. Management team: Having an experienced management team at the helm increases our confidence in the business – take a look at it Who sits on Magna Mining’s Board of Directors and CEO Background.

3. Other high performing stocks:Are there other stocks that offer better prospects with proven track records? Discover our site Free list of these great stocks here.

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This article written by Simply Wall St is general in nature. We provide comments based on historical data and analyst forecasts only using 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 into account your objectives or financial situation. We aim to offer you focused, long-term analysis driven by fundamental data. Note that our analysis may not take into account a company’s most recent price-sensitive announcements or qualitative materials. Simply put, Wall St has no position in any of the stocks mentioned.