Published on 27 May 2023 on Simply Wall St. via Yahoo Finance
Kodal Minerals PLC (LON:KOD): When Will It Breakeven?
Kodal Minerals PLC (LON:KOD) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Kodal Minerals PLC, together with its subsidiaries, engages in the exploration and evaluation of mineral resources in the United Kingdom and West Africa. The UK£109m market-cap company posted a loss in its most recent financial year of UK£903k and a latest trailing-twelve-month loss of UK£1.0m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Kodal Minerals' 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 Kodal Minerals
Kodal Minerals is bordering on breakeven, according to some British Metals and Mining analysts. They expect the company to post a final loss in 2024, before turning a profit of UK£12m in 2025. Therefore, the company is expected to breakeven roughly 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 65%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.