With the business potentially at an important milestone, we thought we'd take a closer look at Silver Tiger Metals Inc.'s (CVE:SLVR) future prospects. Silver Tiger Metals Inc. engages in the exploration and evaluation of mineral properties in Mexico. The CA$68m market-cap company posted a loss in its most recent financial year of CA$3.7m and a latest trailing-twelve-month loss of CA$3.4m shrinking the gap between loss and breakeven. The most pressing concern for investors is Silver Tiger Metals' path to profitability – when will it 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 Silver Tiger Metals

According to the 2 industry analysts covering Silver Tiger Metals, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of CA$10.0m in 2025. So, the company is predicted to breakeven approximately 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 154% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Silver Tiger Metals' growth isn’t the focus of this broad overview, however, take into account 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. Silver Tiger 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. 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 too many aspects of Silver Tiger Metals to cover in one brief article, but the key fundamentals for the company can all be found in one place – Silver Tiger Metals' company page on Simply Wall St. We've also compiled a list of pertinent factors you should look at:

1. Historical Track Record: What has Silver Tiger Metals' 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.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Silver Tiger Metals' 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.