When Can We Expect A Profit From Electra Battery Materials Corporation (CVE:ELBM)?

Simply Wall St
·3 min read

We feel now is a pretty good time to analyse Electra Battery Materials Corporation's (CVE:ELBM) business as it appears the company may be on the cusp of a considerable accomplishment. Electra Battery Materials Corporation acquires and explores for resource properties in the United States and Canada. The CA$156m market-cap company posted a loss in its most recent financial year of CA$35m and a latest trailing-twelve-month loss of CA$16m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Electra Battery Materials 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.

View our latest analysis for Electra Battery Materials

According to some industry analysts covering Electra Battery Materials, breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of CA$17m in 2023. So, the company is predicted 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 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 163% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

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

Given this is a high-level overview, we won’t go into details of Electra Battery Materials' upcoming projects, however, 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, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 22% 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:

There are key fundamentals of Electra Battery Materials which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Electra Battery Materials, take a look at Electra Battery Materials' company page on Simply Wall St. We've also compiled a list of pertinent factors you should look at:

  1. Valuation: What is Electra Battery Materials 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 Electra Battery Materials 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 Electra Battery Materials’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

  • Contreras has 3 hits as Brewers take advantage of sloppy inning by Pirates in 3-2 victory

    William Contreras had three hits and the Milwaukee Brewers used one big inning to edge the Pittsburgh Pirates 3-2 on Wednesday night. The Brewers took advantage of a sloppy second inning by the Pirates to turn an error, two walks and two hit batters and an RBI single by Contreras into three runs. Sal Frelick had two hits for Milwaukee, which snapped a two-game skid.

  • Toronto FC puts semi-pro Simcoe County to the sword in Canadian Championship play

    Toronto FC put semi-pro Simcoe County Rovers FC to the sword Wednesday, thumping the League1 Ontario champions 5-0 in Canadian Championship preliminary-round play. Prince Owusu, Cassius Mailula, Kevin Long, Jonathan Osorio and Tyrese Spicer scored for Toronto, which led 4-0 at the break with three of the goals coming in nine minutes. Owusu could have had a hat trick or more in the first half. Toronto coach John Herdman emptied his bench in the second half. Simcoe County showed flashes of its ski

  • Matheus Nicolau done with Manel Kape bookings, focused on title shot after UFC on ESPN 55 headliner

    After back-to-back bookings against Manel Kape fell through, Matheus Nicolau is focusing on "the top of the mountain" after UFC on ESPN 55.

  • Thousands mark Anzac Day in Australia and New Zealand

    Thousands gathered across Australia and New Zealand on Thursday at Anzac Day services to commemorate those who fought and died in major conflicts in the nations' history. Anzac Day originally commemorated a battle on the Gallipoli peninsula in Turkey during World War One. At dawn on April 25, 1915, thousands of troops from the Australian and New Zealand Army Corps (ANZAC) were among a larger Allied force that landed on the narrow beaches of the Gallipoli peninsula, an ill-fated campaign that would claim more than 130,000 lives.

  • Bruce Willis Fondly Recalled By Jerry Bruckheimer For His ‘Armageddon’ Kindness

    Producer Jerry Bruckheimer remembers Bruce Willis for his kindnesses towards the little guys. In their 1998 hit Armageddon, Bruckheimer noted how Willis acted toward the crew when the cameras weren’t rolling. “Bruce is such a good guy,” says Bruckheimer. “He was so generous to the crew.” Bruckheimer says that at the end of each week, …

  • NC’s Mark Meadows, Trump’s chief of staff, indicted in Arizona election interference case

    This is the second time Meadows has been indicted for allegations that he tried to overturn the 2020 election.

  • First look: inside Arizona’s first Randy’s Donuts, plans for more locations in the Valley

    The first Arizona Randy’s Donuts will open its doors to the public on Thursday, April 25! Here’s a sneak peek of the location and what the future expansion for this company will be in the Valley. The Phoenix storefront is located near 7th Street and Bethany Home Road. “So, I love the Central Corridor. I think this is a perfect location for Randy's. I think that the product is so amazing. And I'm just very, very excited to share it with the community,” said Padilla.

  • Heat set franchise playoff record with 21 3-pointers in Game 2 against Celtics

    BOSTON (AP) — The Miami Heat have broken their franchise record for 3-pointers in a playoff game. Jaime Jaquez Jr. connected on Miami’s 21st 3 of the game with 5:37 left in the fourth quarter of its Game 2 playoff matchup at Boston on Wednesday night. It breaks Miami’s previous mark of 20, set May 22, 2021, at Milwaukee. ___ AP NBA: https://apnews.com/NBA The Associated Press

  • Dow Jones Futures Fall As Meta Dives On Guidance; Chipotle Eyes Buy Point

    The rally attempt paused Wednesday as Nvidia reversed lower. Meta, Chipotle and ServiceNow led key earnings late.

  • Instagram fraudster 'Jay Mazini' has been sentenced for his crypto scheme that preyed on Muslims

    NEW YORK (AP) — The former Instagram influencer known as “ Jay Mazini ” who swindled millions of dollars from online followers and a network of Muslims during the pandemic was sentenced to seven years in prison on Wednesday, prosecutors said. Jebara Igbara, 28, of New Jersey, had pleaded guilty to fraud charges, admitting that he created a Ponzi scheme that involved cryptocurrency frauds netting around $8 million. Prosecutors say the money funded a decadent lifestyle that included luxury cars an

  • 13-year-old boy dies after being hit by car in Glendale

    Glendale police have announced a 13-year-old boy hit by a car while on his bicycle has died. The crash happened near 47th and Northern avenues on the evening of April 11. The boy, identified as Elias "Eli" Bizzle, was taken to a hospital and later died on April 23, police announced.

  • Preventing wildfires following rainy seasons

    Firefighters in Alpine were working overtime to clear overgrown trees and brush to prevent wildfires following the rainy season.

  • Korea Box Office: Don Lee’s ‘The Roundup: Punishment’ Takes Punchy $5 Million on Opening Day

    Korean comedy action film “The Roundup: Punishment” destroyed all competition in local theaters on its Wednesday opening day. The film earned $4.92 million from 821,000 ticket sales, according to data from Kobis, the tracking service operated by the Korean Film Council (Kofic). That represented a crushing 97% share of the day’s theatrical market. Including a …

  • Royals' Alec Marsh hit on throwing arm by line drive, leaves in 5th against Blue Jays

    KANSAS CITY, Mo. (AP) — Kansas City Royals right-hander Alec Marsh was hit on his throwing arm by a line drive, forcing him to leave in the fifth inning against Toronto on Wednesday night. After Marsh (3-0) pitched four scoreless innings, Addison Barger hit a 91-mph fastball back up the middle leading off the fifth. After being struck, Marsh picked up the ball and threw to first to retire Barger. The Royals said Marsh had a forearm contusion. Angel Zerpa took over for Marsh on the mound. ___ AP

  • While institutions own 42% of The Lottery Corporation Limited (ASX:TLC), retail investors are its largest shareholders with 56% ownership

    Key Insights The considerable ownership by retail investors in Lottery indicates that they collectively have a greater...

  • Newspaper headlines: Labour's 'vow to nationalise rail' and school stabbing

    Labour's election promise on the train network and a "horrific" Wales stabbing feature in the papers.

  • Brendan Paul, Diddy's alleged 'mule,' pleads not guilty to cocaine charge in airport arrest

    Brendan Paul, an ex Syracuse basketball player who was called Sean "Diddy" Combs' "mule" in a producer's civil lawsuit, faces a felony drug charge.

  • Phoenix area near 19th Ave and Camelback Rd to be designated "International District"

    Down the corridor of 19th Avenue and Camelback Road, many will find quite a few small businesses owned by people from different backgrounds and cultures. Soon, that area will be designated as the International District. Through collaboration between the Arizona Asian Chamber of Commerce, the City of Phoenix and members of the community, the brand came up to help give an identity to the area.

  • Broadway Spring 2024: ‘Uncle Vanya’ & All Of Deadline’s Reviews

    April on Broadway, to mangle a phrase from a showtune classic, is bustin’ out all over with no fewer than 14 new plays and musicals set to open before the April 25 Tony Award eligibility cutoff date. So crowded are the final weeks of the 2023-24 theater season that three days each will see the …

  • Sexual assault suspect appears in court

    The man who sexually assaulted a 5-year-old girl in her home in Linda Vista appeared in court on Wednesday.