07-05-2025
When Will Boab Metals Limited (ASX:BML) Become Profitable?
Boab Metals Limited (ASX:BML) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Boab Metals Limited engages in the exploration and development of mineral tenements in Australia. The AU$39m market-cap company's loss lessened since it announced a AU$3.3m loss in the full financial year, compared to the latest trailing-twelve-month loss of AU$3.1m, as it approaches breakeven. Many investors are wondering about the rate at which Boab Metals will turn a profit, with the big question being 'when will the company breakeven?' Below we will provide a high-level summary of the industry analysts' expectations for the company.
Boab Metals is bordering on breakeven, according to some Australian Metals and Mining analysts. They anticipate the company to incur a final loss in 2026, before generating positive profits of AU$129m in 2027. So, the company is predicted to breakeven approximately 2 years from today. 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 57%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
ASX:BML Earnings Per Share Growth May 7th 2025
We're not going to go through company-specific developments for Boab Metals given that this is a high-level summary, however, keep in mind that generally 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.
See our latest analysis for Boab Metals
Before we wrap up, there's one aspect worth mentioning. Boab Metals currently has no debt on its balance sheet, which is quite unusual for a cash-burning 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:
This article is not intended to be a comprehensive analysis on Boab Metals, so if you are interested in understanding the company at a deeper level, take a look at Boab Metals' company page on Simply Wall St. We've also put together a list of important aspects you should further research:
Valuation: What is Boab Metals 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 Boab Metals is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Boab Metals's board and the CEO's background.
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.
