Analysts are bullish we will see profit from AfriTin Mining Limited (LON: ATM)
AfriTin Mining Limited (LON: ATM) Perhaps a major achievement in his business is approaching, so we would like to shed some light on the business. AfriTin Mining Limited, together with its subsidiaries, is engaged in the exploration and development of projects in Namibia and South Africa. The Â£ 60million market-cap loss has declined since it reported a full-year loss of Â£ 5.7million, compared to the last year-over-year loss Â£ 5.4million as it nears breakeven. As the path to profitability is the topic in the minds of AfriTin Mining investors, we decided to assess market sentiment. Below, we’ll provide a high-level summary of industry analyst expectations for the company.
Check out our latest analysis for AfriTin Mining
AfriTin Mining is close to equilibrium, according to the 2 British analysts from Metals and Mining. They expect the company to make a terminal loss in 2021, before making a profit of UK Â£ 800,000 in 2022. So the company should break even in a year or less! How fast will the business need to grow to achieve the consensus estimates of equilibrium in less than 12 months? Using a line of best fit, we calculated an average annual growth rate of 81%, indicating a high level of analyst confidence. If this rate turns out to be too aggressive, the company could become profitable much later than analysts predict.
We are not going to go over company specific developments for AfriTin Mining as this is a high level summary, however, keep in mind that in general, a metallurgical company and mining has lumpy cash flows that depend on the natural resources extracted and stage at which the business operates. This means that a high growth rate is not unusual, especially if the business is currently in an investment period.
One thing we would like to point out is that the company has managed its capital prudently, with debt accounting for 1.9% of equity. This means that it has mainly financed its operations from equity and its low debt reduces the risk of investing in the loss-making company.
There are too many aspects of AfriTin Mining to cover in a short article, but the fundamentals of the business can all be found in one place – the AfriTin Mining company page on Simply Wall St. We. We have also compiled a list of essential aspects that you should consider in more detail:
- Evaluation: What is AfriTin Mining worth today? Has the potential for future growth already been factored into the price? The intrinsic value infographic of our free research report helps to visualize whether AfriTin Mining is currently being poorly valued by the market.
- Management team: An experienced management team at the helm increases our confidence in the company – look at who sits on the AfriTin Mining board and the CEO’s background.
- Other high performing stocks: Are there other stocks that offer better prospects with a proven track record? Check out our free list of these great stocks here.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.