Yahoo Finance Analysts Expect Breakeven For Critical Elements Lithium Corporation (CVE:CRE) Before Long
With the business potentially at an important milestone, we thought we'd take a closer look at Critical Elements Lithium Corporation's (CVE:CRE) future prospects. Critical Elements Lithium Corporation engages in the acquisition, exploration, and development of mining properties in Canada. With the latest financial year loss of CA$6.4m and a trailing-twelve-month loss of CA$3.9m, the CA$166m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Critical Elements Lithium's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for Critical Elements Lithium
Consensus from 2 of the Canadian Metals and Mining analysts is that Critical Elements Lithium is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of CA$4.3m in 2026. So, the company is predicted to breakeven approximately 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 95% year-on-year, on average, 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 Critical Elements Lithium's growth isn’t the focus of this broad overview, but, bear in mind that typically metals and mining companies, depending on the stage of operation and metals mined, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we’d like to point out is that Critical Elements Lithium has no debt on its balance sheet, which is rare for a loss-making 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 Critical Elements Lithium 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 Critical Elements Lithium, take a look at Critical Elements Lithium's company page on Simply Wall St. We've also put together a list of essential aspects you should look at:
Valuation: What is Critical Elements Lithium 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 Critical Elements Lithium is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Critical Elements Lithium’s board and the CEO’s background.
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.
