Published on 10 Dec 2021 on Simply Wall St. via Yahoo Finance

Market Sentiment Around Loss-Making AfriTin Mining Limited (LON:ATM)

We feel now is a pretty good time to analyse AfriTin Mining Limited's (LON:ATM) business as it appears the company may be on the cusp of a considerable accomplishment. AfriTin Mining Limited, together with its subsidiaries, engages in the exploration and development of projects in Namibia and South Africa. The UK£56m market-cap company’s loss lessened since it announced a UK£5.7m loss in the full financial year, compared to the latest trailing-twelve-month loss of UK£5.4m, as it approaches breakeven. The most pressing concern for investors is AfriTin Mining's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for AfriTin Mining

Consensus from 2 of the British Metals and Mining analysts is that AfriTin Mining is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of UK£3.7m in 2023. 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 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 82% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.