![]() ![]() We think it's very important to consider the cash burn for loss making companies, but other considerations such as the amount the CEO is paid can also enhance your understanding of the business. After looking at that range of measures, we think shareholders should be extremely attentive to how the company is using its cash, as the cash burn makes us uncomfortable. On this analysis of Fission Uranium's cash burn, we think its cash burn relative to its market cap was reassuring, while its cash runway has us a bit worried. So, Should We Worry About Fission Uranium's Cash Burn? As a result, we'd venture that the company could raise more cash for growth without much trouble, albeit at the cost of some dilution. By comparing a company's annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate).įission Uranium has a market capitalisation of CA$160m and burnt through CA$20m last year, which is 13% of the company's market value. Many companies end up issuing new shares to fund future growth. Companies can raise capital through either debt or equity. While its cash burn is only increasing slightly, Fission Uranium shareholders should still consider the potential need for further cash, down the track. Story continues How Hard Would It Be For Fission Uranium To Raise More Cash For Growth? Depicted below, you can see how its cash holdings have changed over time. Importantly, if we extrapolate recent cash burn trends, the cash runway would be a lot longer. That's a very short cash runway which indicates an imminent need to douse the cash burn or find more funding. So it had a cash runway of approximately 5 months from June 2019. Looking at the last year, the company burnt through CA$20m. When Fission Uranium last reported its balance sheet in June 2019, it had zero debt and cash worth CA$8.7m. See our latest analysis for Fission Uranium When Might Fission Uranium Run Out Of Money?Ī cash runway is defined as the length of time it would take a company to run out of money if it kept spending at its current rate of cash burn. First, we'll determine its cash runway by comparing its cash burn with its cash reserves. Canada is not the only country that’s recently announced its investment towards nuclear energy, we’re seeing a growing trend in large nations pushing their renewable energy agenda up.ĭisclaimer: This is not financial advice, always do your due diligence.So should Fission Uranium ( TSE:FCU) shareholders be worried about its cash burn? In this report, we will consider the company's annual negative free cash flow, henceforth referring to it as the 'cash burn'. Nuclear energy is our best option for combating climate change and meeting our energy needs. I am confident in nuclear energy's ability to provide safe, reliable, and emissions-free electricity, and I am optimistic about a long-term bet with uranium. ![]() They are still on schedule to complete the feasibility study in Q4, 2022.Īs we continue to face the challenges of climate change and energy insecurity, it is clear that nuclear energy must play a larger role in our energy mix. The company is also advancing the Millennium uranium project, which has the potential to become one of the largest high-grade uranium mines in the world.įission Uranium Corp’s President and CEO, Ross McElroy had recently presented at the TD Securities Virtual Uranium Roundtable.įission updates us on their increased drilling which indicated resources by 21% tonnes & 12.3% pounds U3O8. The company's flagship asset is the Patterson Lake South (PLS) project, which is one of the highest-grade uranium deposits in the world. This financing in nuclear energy drew my attention to markets that would be affected, I looked for uranium-developing companies that have already gone through some level of grading and feasibility studies for longer-term plays betting on nuclear being here to stay and grow.įission Uranium is a Canadian uranium mining company with a portfolio of world-class uranium assets. It has even pushed forward the renewable energy agenda for some. With the energy crisis in Europe and the current oil reserve situation in the United States, I do believe that this has been a wake-up call for several nations to look toward investing in domestic energy production. The project will be developed by Ontario Power Generation (OPG) in Darlington, Ontario. With the recent news from the Canadian government providing $970 million in financing to develop and expand nuclear technology.
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