We feel now is a pretty good time to analyse Excelsior Mining Corp.'s (TSE:MIN) business as it appears the company may be on the cusp of a considerable accomplishment. Excelsior Mining Corp., together with its subsidiaries, engages in the acquisition, exploration, and development of copper mineral properties in the United States and Canada. The company’s loss has recently broadened since it announced a US$20m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$29m, moving it further away from breakeven. Many investors are wondering about the rate at which Excelsior Mining 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.

See our latest analysis for Excelsior Mining

Consensus from 2 of the Canadian Metals and Mining analysts is that Excelsior Mining is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$2.0m in 2023. The company is therefore projected to breakeven just over a year 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 66% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Excelsior Mining's growth isn’t the focus of this broad overview, however, keep 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.

One thing we would like to bring into light with Excelsior Mining is its debt-to-equity ratio of 103%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Excelsior Mining to cover in one brief article, but the key fundamentals for the company can all be found in one place – Excelsior Mining's company page on Simply Wall St. We've also compiled a list of essential aspects you should further examine:

1. Historical Track Record: What has Excelsior Mining'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.

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