When Will IperionX Limited (ASX:IPX) Turn A Profit?

With the business potentially at an important milestone, we thought we'd take a closer look at IperionX Limited's (ASX:IPX) future prospects. IperionX Limited engages in exploration and development of its mineral properties in the United States. On 30 June 2024, the AU$1.0b market-cap company posted a loss of US$22m for its most recent financial year. Many investors are wondering about the rate at which IperionX 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 IperionX

According to the 4 industry analysts covering IperionX, the consensus is that breakeven is near. They expect the company to post a final loss in 2026, before turning a profit of US$53m in 2027. The company is therefore projected to breakeven around 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 67% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of IperionX's upcoming projects, but, keep in mind that generally 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. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 0.05% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

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

1. Valuation: What is IperionX 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 IperionX 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 IperionX’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.

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

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.