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. Indeed, GoviEx Uranium ( CVE:GXU ) stock is up 317% in the last year, providing strong gains for shareholders. 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.
In light of its strong share price run, we think now is a good time to investigate how risky GoviEx Uranium’s cash burn is. For the purpose of this article, we’ll define cash burn as the amount of cash the company is spending each year to fund its growth (also called its negative free cash flow). First, we’ll determine its cash runway by comparing its cash burn with its cash reserves. When Might GoviEx Uranium Run Out Of Money?
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