Condor Gold Plc (LON:CNR) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Condor Gold Plc, together with its subsidiaries, explores and develops gold and silver properties in Nicaragua. With the latest financial year loss of UK£2.3m and a trailing-twelve-month loss of UK£2.7m, the UK£47m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Condor Gold's 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.
Expectations from some of the British Metals and Mining analysts is that Condor Gold is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of UK£53m in 2024. The company is therefore projected to breakeven around 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 91% is expected, 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.
We're not going to go through company-specific developments for Condor Gold given that this is a high-level summary, but, bear in mind that by and large a metal and mining business has lumpy cash flows which are contingent on the natural resource mined and stage at which the company is operating. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
Before we wrap up, there’s one aspect worth mentioning. Condor Gold currently has no debt on its balance sheet, which is quite unusual for a cash-burning metals and mining company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
There are too many aspects of Condor Gold to cover in one brief article, but the key fundamentals for the company can all be found in one place – Condor Gold's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further examine:
Valuation: What is Condor Gold 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 Condor Gold is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Condor Gold’s board and the CEO’s background.
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.
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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.
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