Published on 22 Nov 2023 on Simply Wall St. via Yahoo Finance

Kodal Minerals PLC's (LON:KOD) Profit Outlook

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. On 31 March 2023, the UK£103m market-cap company posted a loss of UK£1.5m for its most recent financial year. Many investors are wondering about the rate at which Kodal 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.

Check out our latest analysis for Kodal Minerals

According to some industry analysts covering Kodal Minerals, breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of UK£6.0m in 2025. The company is therefore projected to breakeven around 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 46% 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.