We feel now is a pretty good time to analyse Vault Minerals Limited's (ASX:VAU) business as it appears the company may be on the cusp of a considerable accomplishment. Vault Minerals Limited engages in the exploration, production, and mining of gold and gold/copper concentrates in Canada and Australia. The AU$2.5b market-cap company announced a latest loss of AU$5.4m on 30 June 2024 for its most recent financial year result. Many investors are wondering about the rate at which Vault Minerals will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for Vault Minerals

Vault Minerals is bordering on breakeven, according to the 6 Australian Metals and Mining analysts. They expect the company to post a final loss in 2024, before turning a profit of AU$223m in 2025. So, the company is predicted to breakeven approximately a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 26% 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.

Underlying developments driving Vault Minerals' growth isn’t the focus of this broad overview, but, bear in mind that generally metals and mining companies, depending on the stage of operation and metals mined, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 5.7% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Vault Minerals, so if you are interested in understanding the company at a deeper level, take a look at Vault Minerals' company page on Simply Wall St. We've also compiled a list of relevant aspects you should further research:

1. Valuation: What is Vault 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 Vault 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 Vault 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.

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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.