Yahoo Finance Critical Elements Lithium Corporation (CVE:CRE): Are Analysts Optimistic?
We feel now is a pretty good time to analyse Critical Elements Lithium Corporation's (CVE:CRE) business as it appears the company may be on the cusp of a considerable accomplishment. Critical Elements Lithium Corporation engages in the acquisition, exploration, and development of mining properties in Canada. The CA$512m market-cap company’s loss lessened since it announced a CA$6.4m loss in the full financial year, compared to the latest trailing-twelve-month loss of CA$5.9m, as it approaches breakeven. The most pressing concern for investors is Critical Elements Lithium's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Check out our latest analysis for Critical Elements Lithium
According to the 4 industry analysts covering Critical Elements Lithium, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of CA$3.4m in 2024. The company is therefore projected to breakeven just over a year 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 128% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Critical Elements Lithium's upcoming projects, but, take into account that typically 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.
Before we wrap up, there’s one aspect worth mentioning. Critical Elements Lithium currently has no debt on its balance sheet, which is rare for a loss-making metals and mining company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are too many aspects of Critical Elements Lithium to cover in one brief article, but the key fundamentals for the company can all be found in one place – Critical Elements Lithium's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should further examine:
Valuation: What is Critical Elements Lithium 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 Critical Elements Lithium 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 Critical Elements Lithium’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.
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.
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