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$858m market-cap company announced a latest loss of AU$12m on 30 June 2021 for its most recent financial year result. As path to profitability is the topic on Bellevue Gold's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Bellevue Gold

According to the 2 industry analysts covering Bellevue Gold, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of AU$6.9m in 2023. The company is therefore projected to breakeven around 2 years from now. 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 92% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict. earnings-per-share-growth

Given this is a high-level overview, we won’t go into details of Bellevue Gold's upcoming projects, 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, 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. Bellevue Gold currently 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. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.



Next Steps:

There are key fundamentals of Bellevue Gold 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 Bellevue Gold, take a look at Bellevue Gold's company page on Simply Wall St. We've also put together a list of essential aspects you should further research:

Historical Track Record: What has Bellevue Gold's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity. 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. 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.

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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