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Bushveld Minerals Limited (LON:BMN) Is About To Turn The Corner

Bushveld Minerals Limited (LON:BMN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Bushveld Minerals Limited operates as an integrated primary vanadium producer for the steel, energy, chemicals and aerospace industries in South Africa, Europe, Asia, the United States, and internationally. The company’s loss has recently broadened since it announced a US$39m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$50m, moving it further away from breakeven. Many investors are wondering about the rate at which Bushveld Minerals will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Bushveld Minerals

Bushveld Minerals is bordering on breakeven, according to the 2 British Metals and Mining analysts. They expect the company to post a final loss in 2023, before turning a profit of US$11m in 2024. The company is therefore projected to breakeven around a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 63% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

We're not going to go through company-specific developments for Bushveld Minerals given that this is a high-level summary, however, keep in mind that generally metals and mining companies, depending on the stage of operation and metals mined, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

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One thing we would like to bring into light with Bushveld Minerals is its debt-to-equity ratio of 113%. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are too many aspects of Bushveld Minerals to cover in one brief article, but the key fundamentals for the company can all be found in one place – Bushveld Minerals' company page on Simply Wall St. We've also put together a list of pertinent factors you should further research:

  1. Valuation: What is Bushveld Minerals worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Bushveld Minerals is currently mispriced by the market.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Bushveld Minerals’s board and the CEO’s background.

  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an 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 account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.