We can further evaluate Marlin Gold Mining’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Marlin Gold Mining’s top-line has grown by 77.51% on average, implying that the company is in a high-growth phase with expenses racing ahead revenues, leading to annual losses. Looking at growth from a sector-level, the Canadian metals and mining industry has been growing its average earnings by double-digit 24.81% over the prior year, and 16.37% over the past five years. This shows that, even though Marlin Gold Mining is currently loss-making, it may have gained from industry tailwinds, moving earnings towards to right direction.

What does this mean?

Marlin Gold Mining’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that incur net loss is always hard to forecast what will occur going forward, and when. The most valuable step is to examine company-specific issues Marlin Gold Mining may be facing and whether management guidance has consistently been met in the past. I suggest you continue to research Marlin Gold Mining to get a more holistic view of the stock by looking at:

• 1. Future Outlook: What are well-informed industry analysts predicting for MLN’s future growth? Take a look at our free research report of analyst consensus for MLN’s outlook.
• 2. Financial Health: Is MLN’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.
• 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.

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.