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Sky Metals Limited (ASX:SKY) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Sky Metals Limited engages in the exploration and development of mineral resources in Australia. On 30 June 2025, the AU$60m market-cap company posted a loss of AU$3.2m for its most recent financial year. As path to profitability is the topic on Sky Metals’ investors mind, we’ve decided to gauge market sentiment. We’ve put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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Sky Metals is bordering on breakeven, according to some Australian Metals and Mining analysts. They anticipate the company to incur a final loss in 2027, before generating positive profits of AU$4.0m in 2028. So, the company is predicted to breakeven approximately 3 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 88% year-on-year, on average, which signals high confidence from analysts. 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 Sky Metals’ upcoming projects, though, take into account that by and large 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.

Check out our latest analysis for Sky Metals

One thing we’d like to point out is that Sky Metals 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 means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

There are key fundamentals of Sky Metals which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Sky Metals, take a look at Sky Metals’ company page on Simply Wall St. We’ve also compiled a list of pertinent aspects you should further examine: