Published on 5 May 2023 on Simply Wall St. via Yahoo Finance

Amaroq Minerals Ltd.'s (CVE:AMRQ) Shift From Loss To Profit

With the business potentially at an important milestone, we thought we'd take a closer look at Amaroq Minerals Ltd.'s (CVE:AMRQ) future prospects. Amaroq Minerals Ltd. engages in the acquisition, exploration, and development of mineral properties in Greenland. On 31 December 2022, the CA$184m market-cap company posted a loss of CA$22m for its most recent financial year. Many investors are wondering about the rate at which Amaroq Minerals will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for Amaroq Minerals

Consensus from 2 of the Canadian Metals and Mining analysts is that Amaroq Minerals is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of CA$24m in 2025. The company is therefore projected to breakeven around 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 71% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.