Osisko Development Corp. (CVE:ODV) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Osisko Development Corp. acquires, explores, and develops mineral properties in Canada, Mexico, and the United States. With the latest financial year loss of CA$182m and a trailing-twelve-month loss of CA$209m, the CA$265m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Osisko Development's investors mind, we've decided to gauge market sentiment. 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 Osisko Development

According to the 5 industry analysts covering Osisko Development, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of CA$18m in 2026. So, the company is predicted 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 96% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Osisko Development's growth isn’t the focus of this broad overview, though, keep in mind that typically 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. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 15% 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 Osisko Development, so if you are interested in understanding the company at a deeper level, take a look at Osisko Development's company page on Simply Wall St. We've also put together a list of relevant aspects you should further research:

1. Historical Track Record: What has Osisko Development's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Osisko Development'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.