We feel now is a pretty good time to analyse Bellevue Gold Limited’s (ASX:BGL) business as it appears the company may be on the cusp of a considerable accomplishment. Bellevue Gold Limited, together with its subsidiaries, engages in the exploration and evaluation of gold properties in Australia. The AU$1.5b market-cap company announced a latest loss of AU$25m on 30 June 2023 for its most recent financial year result. Many investors are wondering about the rate at which Bellevue Gold 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.
Check out our latest analysis for Bellevue Gold
According to the 5 industry analysts covering Bellevue Gold, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of AU$90m in 2024. The company is therefore projected to breakeven around a year from now or less! At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 46%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We’re not going to go through company-specific developments for Bellevue Gold given that this is a high-level summary, but, keep 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 that a high growth rate is not unusual, especially if the company is currently in an investment period.
One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 30% 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 too many aspects of Bellevue Gold to cover in one brief article, but the key fundamentals for the company can all be found in one place – Bellevue Gold’s company page on Simply Wall St. We’ve also compiled a list of pertinent aspects you should further examine:
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Valuation: What is Bellevue Gold 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 Bellevue Gold is currently mispriced by the market.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Bellevue Gold’s board and the CEO’s background.
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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.
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