Here’s Why We’re Not Too Worried About Elevate Uranium’s (ASX:EL8) Cash Burn Situation

Source: Shutterstock Even when a business is losing money, it’s possible for shareholders to make money if they buy a good business at the right price. For example, biotech and mining exploration companies often lose money for years before finding success with a new treatment or mineral discovery. But while the successes are well known, investors should not ignore the very many unprofitable companies that simply burn through all their cash and collapse.

So, the natural question for Elevate Uranium ( ASX:EL8 ) shareholders is whether they should be concerned by its rate of cash burn. In this report, we will consider the company’s annual negative free cash flow, henceforth referring to it as the ‘cash burn’. First, we’ll determine its cash runway by comparing its cash burn with its cash reserves.

See our latest analysis for Elevate Uranium Does Elevate Uranium Have A Long Cash Runway?

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