We’re Not Very Worried About Elevate Uranium’s (ASX:EL8) Cash Burn Rate

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. Nonetheless, only a fool would ignore the risk that a loss making company burns through its cash too quickly.

So should Elevate Uranium ( ASX:EL8 ) shareholders be worried about its cash burn? 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). Let’s start with an examination of the business’ cash, relative to its cash burn.

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

You can calculate a company’s cash runway by dividing the amount of cash it has by the rate at which […]

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