Western Uranium & Vanadium (CSE:WUC) Is In A Strong Position To Grow Its Business

Western Uranium & Vanadium (CSE:WUC) Is In A Strong Position To Grow Its Business

There’s no doubt that money can be made by owning shares of unprofitable businesses. Indeed, Western Uranium & Vanadium ( CSE:WUC ) stock is up 317% in the last year, providing strong gains for shareholders. But the harsh reality is that very many loss making companies burn through all their cash and go bankrupt.

So notwithstanding the buoyant share price, we think it’s well worth asking whether Western Uranium & Vanadium’s cash burn is too risky. 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. First, we’ll determine its cash runway by comparing its cash burn with its cash reserves. Does Western Uranium & Vanadium Have A Long Cash Runway?

A company’s cash runway is the amount of time it would take to burn through its cash reserves at its […]

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