When Can We Expect A Profit From Almonty Industries Inc. (TSE:AII)?

Simply Wall St
·3 min read

Almonty Industries Inc. (TSE:AII) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Almonty Industries Inc. engages in mining, processing, and shipping tungsten concentrate. The CA$173m market-cap company posted a loss in its most recent financial year of CA$7.8m and a latest trailing-twelve-month loss of CA$9.9m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Almonty Industries' 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.

See our latest analysis for Almonty Industries

According to the 2 industry analysts covering Almonty Industries, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of CA$7.9m in 2024. Therefore, the company is expected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 75% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

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

We're not going to go through company-specific developments for Almonty Industries given that this is a high-level summary, though, bear in mind that typically 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 would like to bring into light with Almonty Industries is its debt-to-equity ratio of over 2x. Typically, 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 around investing in the loss-making company.

Next Steps:

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

  1. Valuation: What is Almonty Industries 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 Almonty Industries 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 Almonty Industries’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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

  • Up next
  • Up next
  • Up next
  • Up next

Latest Stories

  • Joe Biden signs the bill that could ban TikTok in the United States

    The bill that will force a sale or ban of TikTok in the United States is now law.

  • UPDATE 1-Short-term market moves must not spook Brazil central bank, director says

    Brazil's central bank director Gabriel Galipolo said on Wednesday that the monetary authority should not get spooked with "short-term" market fluctuations and will need time to understand how recent moves affect its mandates. Emerging market currencies, including Brazil's real, have slumped in recent days as the dollar soared on rising geopolitical tensions and fading hopes of an interest rate cut by the U.S. Federal Reserve. Galipolo acknowledged that countries that started lowering rates early as inflation receded, such as Brazil, were among the most hit by the recent repricing of the U.S. yield curve and the strengthening of the greenback.

  • Dalvin Cook, ex-girlfriend settle lawsuit for unspecified amount

    Cook spent the 2023 NFL season with the Jets and Ravens.

  • Family of man killed when Chicago police fired 96 times during traffic stop file wrongful death suit

    The family of a Chicago man killed when plainclothes police officers fired their guns nearly 100 times during a traffic stop filed a wrongful death lawsuit Wednesday, accusing the department of “brutally violent” policing tactics. The 76-page federal complaint alleges the officers violated multiple laws and police department policies during the “predatory, violent, unlawful traffic stop” on March 21 that left 26-year-old Dexter Reed dead. A police oversight agency released videos and documents this month.

  • Moment members of public step in to calm horse charging through London

    Footage taken by a Brazilian tourist shows several pedestrians stepping to soothe the black horse which caused damage after running through the London streets on Wednesday.

  • The best Amazon deals to shop this week: Save up to 90% on appliances, gardening essentials and more

    A few of our faves? An air purifier marked down by $720 and a vertical garden on sale for $34, plus sweet gift ideas for Mom.

  • HealthStream, Inc. (NASDAQ:HSTM) Q1 2024 Earnings Call Transcript

    HealthStream, Inc. (NASDAQ:HSTM) Q1 2024 Earnings Call Transcript April 23, 2024 HealthStream, Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here). Operator: Good morning, and welcome to HealthStream’s First Quarter 2024 Earnings Conference Call. At this time, I would like to […]

  • One spending 'tailwind' that maybe overlooked: Economist

    Uncertainty has engulfed the Federal Reserve's monetary policy path, with markets recalibrating their expectations in response to persistent high inflation data. RBC Capital Markets US Economist Michael Reid joined Yahoo Finance to discuss the his rate cut outlook. With new inflation prints scheduled for release this week, Reid's attention is focused on services spending, stating that it could drive overall GDP growth. Additionally, he emphasizes the importance of monitoring the housing sector and how the pressures in that market impacts PCE inflation. Reid expresses his expectation that "the labor market will remain tight." With more individuals retiring, he sees the unemployment rate staying lower and more upward pressure on wages. However, he also foresees a tailwind emerging from consumer spending driven by retirees, potentially fueling economic growth. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance. This post was written by Angel Smith

  • Globe Life Inc. (NYSE:GL) Q1 2024 Earnings Call Transcript

    Globe Life Inc. (NYSE:GL) Q1 2024 Earnings Call Transcript April 23, 2024 Globe Life Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here). Operator: Hello, and welcome to the Globe Life Incorporated First Quarter Earnings Release Call. My name is George. […]

  • More than 1,000 higher rate taxpayers flee Scotland after hikes

    More than 1,000 higher rate taxpayers fled Scotland to the rest of the UK after Nicola Sturgeon’s government introduced two more income tax bands, a Treasury analysis has estimated.

  • Blood-soaked Household Cavalry horses loose in central London injuring people and hitting cars

    The horses are said to have become spooked during a training exercise with a soldier injured

  • Schwarzenegger Confirms He 'Started' Rivalry With Sylvester Stallone In Joint Interview

    The former action titans of Hollywood famously competed throughout the '80s and '90s — to insidious, baffling and often quite hilarious results.

  • French Open legend Nadal admits desire to say goodbye on court firing final tour

    Former world number one Rafael Nadal conceded on Wednesday his farewell tour was not proceeding to plan but his wish to compete one last time at cherished tournaments such as the French Open where he has claimed 14 titles was pushing him through the pain barrier. The Spaniard will continue his comeback from injury at the Madrid Masters on Thursday where he is scheduled to play the American 16-year-old Darwin Blanch who has been given an invitation to play in the main draw at one of the most pres

  • Council workers back vote on strike action if pay offer not ‘credible’

    GMB Scotland balloted members at local authorities across the country.

  • Fragments of bird flu virus found in pasteurized milk, although FDA says supply is safe

    The FDA said Tuesday that fragments of the virus that causes bird flu had been found in samples of pasteurized milk, but said milk is still safe to drink.

  • Music Review: Pet Shop Boys have done it yet again with catchy and bittersweet 'Nonetheless'

    Once upon a time, on Pet Shop Boys ' first single, “West End Girls,” vocalist Neil Tennant sang the lines, “We’ve got no future / We’ve got no past / Here today, built to last." Fifteen studio records later, there possibly isn't a better verse that captures the timelessness of the stone-faced British pop duo that appears to, indeed, be built to last. Known for their synthesizer-backed dance tracks with emotionally resonant lyrics, Tennant and keyboardist Chris Lowe created their own style of electric pop — influenced by glam rock and disco — that has stood the test of time with consistent releases over the years.

  • Game Of Thrones actor Liam Cunningham criticises people ‘ignoring’ Gaza

    Cunningham has been a pro-Palestinian campaigner for decades.

  • S&P/TSX composite down nearly 150 points, U.S. stock markets mixed

    TORONTO — Canada's main stock index was down nearly 150 points in late-morning trading, weighed down by losses in the industrial and telecommunication stocks. The S&P/TSX composite index was down 146.74 points at 21,864.98. In New York, the Dow Jones industrial average was down 153.96 points at 38,349.73. The S&P 500 index was down 12.16 points at 5,058.39, while the Nasdaq composite was up 5.86 points at 15,702.50. The Canadian dollar traded for 72.86 cents US compared with 73.14 cents US on Tu

  • 'Hate spending' is the new way Americans are dealing with inflation — how to turn that spending into saving

    Money can’t buy you love, but it can buy you something you love to hate.

  • Should You Retain Your Conviction in Rocket Pharmaceuticals (RCKT)?

    Baron Funds, an investment management company, released its “Baron Health Care Fund” first quarter 2024 investor letter. A copy of the same can be downloaded here. The fund advanced 8.92% (Institutional Shares) in the quarter compared to an 8.52% gain for the Russell 3000 Health Care Index (benchmark) and a 10.56% increase for the S&P […]