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We feel now is a pretty good time to analyse Pantoro Gold Limited's (ASX:PNR) business as it appears the company may be on the cusp of a considerable accomplishment. Pantoro Gold Limited, together with its subsidiaries, engages in the gold mining, processing, and exploration activities in Western Australia. With the latest financial year loss of AU$49m and a trailing-twelve-month loss of AU$27m, the AU$1.1b market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Pantoro Gold's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
According to the 4 industry analysts covering Pantoro Gold, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of AU$91m in 2025. Therefore, the company is expected to breakeven roughly 12 months 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 57% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Pantoro Gold's growth isn’t the focus of this broad overview, but, bear in mind that by and large 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.
View our latest analysis for Pantoro Gold
One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 3.4% 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.
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There are too many aspects of Pantoro Gold to cover in one brief article, but the key fundamentals for the company can all be found in one place – Pantoro Gold's company page on Simply Wall St. We've also put together a list of important factors you should look at: