5/29/2023 0 Comments Fission uranium minesOn another note, Fission Uranium has 5 warning signs (and 2 which can't be ignored) we think you should know about. Based on the factors mentioned in this article, we think its cash burn situation warrants some attention from shareholders, but we don't think they should be worried. On this analysis its cash burn reduction was its weakest feature, but we are not concerned about it. In particular, we think its cash burn relative to its market cap stands out as evidence that the company is well on top of its spending. So, Should We Worry About Fission Uranium's Cash Burn?Īs you can probably tell by now, we're not too worried about Fission Uranium's cash burn. That's a low proportion, so we figure the company would be able to raise more cash to fund growth, with a little dilution, or even to simply borrow some money. By looking at a company's cash burn relative to its market capitalisation, we gain insight on how much shareholders would be diluted if the company needed to raise enough cash to cover another year's cash burn.įission Uranium's cash burn of CA$18m is about 3.3% of its CA$535m market capitalisation. Many companies end up issuing new shares to fund future growth. Generally speaking, a listed business can raise new cash through issuing shares or taking on debt. How Easily Can Fission Uranium Raise Cash?Įven though it has reduced its cash burn recently, shareholders should still consider how easy it would be for Fission Uranium to raise more cash in the future. So you might want to take a peek at how much the company is expected to grow in the next few years. Clearly, however, the crucial factor is whether the company will grow its business going forward. While it hardly paints a picture of imminent growth, the fact that it has reduced its cash burn by 20% over the last year suggests some degree of prudence. Nonetheless, we can still examine its cash burn trajectory as part of our assessment of its cash burn situation. TSX:FCU Debt to Equity History March 9th 2023 How Is Fission Uranium's Cash Burn Changing Over Time?īecause Fission Uranium isn't currently generating revenue, we consider it an early-stage business. Depicted below, you can see how its cash holdings have changed over time. That's not too bad, but it's fair to say the end of the cash runway is in sight, unless cash burn reduces drastically. So it had a cash runway of approximately 22 months from September 2022. In the last year, its cash burn was CA$18m. When Fission Uranium last reported its balance sheet in September 2022, it had zero debt and cash worth CA$33m. You can calculate a company's cash runway by dividing the amount of cash it has by the rate at which it is spending that cash. View our latest analysis for Fission Uranium When Might Fission Uranium Run Out Of Money? We'll start by comparing its cash burn with its cash reserves in order to calculate its cash runway. In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth. Given this risk, we thought we'd take a look at whether Fission Uranium ( TSE:FCU) shareholders should be worried about its cash burn. But the harsh reality is that very many loss making companies burn through all their cash and go bankrupt. For example, although made losses for many years after listing, if you had bought and held the shares since 1999, you would have made a fortune. NAI500 covered the leading mining opportunities at this year’s PDAC, the world’s largest annual mining conference, to find the most exciting opportunities for investors.There's no doubt that money can be made by owning shares of unprofitable businesses. The Company is ideally positioned to continue developing PLS through the environmental assessment and licensing phase. With an experienced team run by CEO and uranium expert, Ross McElroy, Fission has completed a Feasibility Study that shows the potential for the Triple R to be among the lowest operating cost uranium mines in the world. Located in the renowned Athabasca Basin uranium district, PLS hosts the longest mineralized trend in the district and the Triple R is the only existing major, high-grade, deposit in the region found at shallow depth. What are the highlights of the feasibility study results announced recently? How would Fission advance its flagship PLS project in Athabasca Basin? Any updated timelines after the Environmental Assessment Process? Don’t miss out on this episode!įission Uranium is developing the high-grade, near-surface Triple R uranium deposit – part of the multiple award-winning PLS project. This year at PDAC, we are glad to have Ross McElroy, CEO, President & Director of Fission Uranium (TSX: FCU, OTCQX: FCUUF) here to us on the company’s progress.
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