We can further evaluate New Talisman Gold Mines’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years New Talisman Gold Mines’s revenue growth has been relatively unexciting, with an annual growth rate of -0.38%, on average. The company’s inability to breakeven has been aided by the relatively flat top-line in the past. Looking at growth from a sector-level, the NZ metals and mining industry has been growing its average earnings by double-digit 47.85% in the prior year, and a more muted 2.68% over the previous five years. This suggests that, while New Talisman Gold Mines is currently loss-making, it may have gained from industry tailwinds, moving earnings towards to right direction.

What does this mean?

While past data is useful, it doesn’t tell the whole story. With companies that are currently loss-making, it is always hard to predict what will occur going forward, and when. The most useful step is to examine company-specific issues New Talisman Gold Mines may be facing and whether management guidance has consistently been met in the past. You should continue to research New Talisman Gold Mines to get a better picture of the stock by looking at:

• 1. Financial Health: Is NTL’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
• 2. 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.

NB: Figures in this article are calculated using data from the trailing twelve months from 30 September 2017. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.