De Grey Mining Limited (ASX:DEG) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. De Grey Mining Limited engages in the exploration of mineral properties in Australia. With the latest financial year loss of AU$19m and a trailing-twelve-month loss of AU$19m, the AU$2.9b market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which De Grey Mining will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for De Grey Mining

De Grey Mining is bordering on breakeven, according to the 7 Australian Metals and Mining analysts. They anticipate the company to incur a final loss in 2026, before generating positive profits of AU$268m in 2027. So, the company is predicted to breakeven approximately 3 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 45%, which signals high confidence from analysts. 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 De Grey Mining's upcoming projects, however, take into account that by and large 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.

One thing we’d like to point out is that De Grey Mining 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 De Grey Mining to cover in one brief article, but the key fundamentals for the company can all be found in one place – De Grey Mining's company page on Simply Wall St. We've also compiled a list of relevant factors you should further examine:

1. Valuation: What is De Grey Mining 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 De Grey Mining 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 De Grey Mining’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.