With the business potentially at an important milestone, we thought we'd take a closer look at Coeur Mining, Inc.'s (NYSE:CDE) future prospects. Coeur Mining, Inc. explores for precious metals in the United States, Canada, and Mexico. The company's loss has recently broadened since it announced a US$104m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$108m, moving it further away from breakeven. As path to profitability is the topic on Coeur Mining's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts' expectations for the company.

According to the 5 industry analysts covering Coeur Mining, the consensus is that breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of US$28m in 2024. Therefore, the company is expected to breakeven roughly 12 months 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 104%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Coeur Mining's growth isn't the focus of this broad overview, though, 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.

Before we wrap up, there's one issue worth mentioning. Coeur Mining currently has a relatively high level of debt. Typically, debt shouldn't exceed 40% of your equity, which in Coeur Mining's case is 51%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

Next Steps:

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

1. Valuation: What is Coeur Mining 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 Coeur Mining is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Coeur 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com