Companies Like Elevate Uranium (ASX:EL8) Are In A Position To Invest In Growth

Source: Shutterstock There’s no doubt that money can be made by owning shares of unprofitable businesses. For example, biotech and mining exploration companies often lose money for years before finding success with a new treatment or mineral discovery. But while history lauds those rare successes, those that fail are often forgotten; who remembers Pets.com?

So, the natural question for Elevate Uranium ( ASX:EL8 ) shareholders is whether they should be concerned by its rate of cash burn. For the purposes of this article, cash burn is the annual rate at which an unprofitable company spends cash to fund its growth; its negative free cash flow. We’ll start by comparing its cash burn with its cash reserves in order to calculate its cash runway.

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

A company’s cash runway is calculated by dividing its cash hoard […]

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