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When Will American West Metals Limited (ASX:AW1) Turn A Profit?

Simply Wall St · 5d ago

With the business potentially at an important milestone, we thought we'd take a closer look at American West Metals Limited's (ASX:AW1) future prospects. American West Metals Limited, together with its subsidiaries, engages in the acquisition, exploration, and development of mineral projects in the United States and Canada. The AU$53m market-cap company announced a latest loss of AU$20m on 30 June 2025 for its most recent financial year result. Many investors are wondering about the rate at which American West Metals 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.

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According to some industry analysts covering American West Metals, breakeven is near. They anticipate the company to incur a final loss in 2027, before generating positive profits of AU$2.0m in 2028. So, the company is predicted to breakeven approximately 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2028? Working backwards from analyst estimates, it turns out that they expect the company to grow 75% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
ASX:AW1 Earnings Per Share Growth January 6th 2026

Underlying developments driving American West Metals' growth isn’t the focus of this broad overview, though, 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 that a high growth rate is not unusual, especially if the company is currently in an investment period.

View our latest analysis for American West Metals

Before we wrap up, there’s one issue worth mentioning. American West Metals currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

This article is not intended to be a comprehensive analysis on American West Metals, so if you are interested in understanding the company at a deeper level, take a look at American West Metals' company page on Simply Wall St. We've also compiled a list of relevant aspects you should further research:

  1. Valuation: What is American West Metals 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 American West Metals 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 American West Metals’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.