With the business potentially at an important milestone, we thought we’d take a closer look at Arizona Lithium Limited’s (ASX:AZL) future prospects. Arizona Lithium Limited operates as a mineral exploration company in the United States. The AU$51m market-cap company’s loss lessened since it announced a AU$11m loss in the full financial year, compared to the latest trailing-twelve-month loss of AU$8.1m, as it approaches breakeven. The most pressing concern for investors is Arizona Lithium’s path to profitability – when will it breakeven? We’ve put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate. See our latest analysis for Arizona Lithium Arizona Lithium is bordering on breakeven, according to some Australian Metals and Mining analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of AU$14m in 2026. The company is therefore projected to breakeven around 3 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 65%, 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-growthWe’re not going to go through company-specific developments for Arizona Lithium given that this is a high-level summary, but, take into account that typically 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. Arizona Lithium currently has no debt on its balance sheet, which is rare for a loss-making metals and mining company, which usually has a high level of debt relative to its equity. This m …
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