![]() So, the company is predicted to breakeven approximately 2 years from today. They anticipate the company to incur a final loss in 2023, before generating positive profits of CA$3.0m in 2024. Many investors are wondering about the rate at which Fission Uranium will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.Ĭheck out our latest analysis for Fission UraniumĬonsensus from 2 of the Canadian Oil and Gas analysts is that Fission Uranium is on the verge of breakeven. The company’s loss has recently broadened since it announced a CA$6.8m loss in the full financial year, compared to the latest trailing-twelve-month loss of CA$8.9m, moving it further away from breakeven. engages in the acquisition, exploration, and development of uranium resource properties in Canada. Thank you for reading.With the business potentially at an important milestone, we thought we'd take a closer look at Fission Uranium Corp.'s ( TSE:FCU) future prospects. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. We aim to bring you long-term focused research analysis driven by fundamental data. Simply Wall St has no position in the stocks mentioned. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. If you spot an error that warrants correction, please contact the editor at This article by Simply Wall St is general in nature. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks that insiders are buying. ![]() Of course Fission Uranium may not be the best stock to buy. Taking a deeper dive, we've spotted 4 warning signs for Fission Uranium you should be aware of, and 1 of them makes us a bit uncomfortable. After considering the data discussed in this article, we don't have a lot of confidence that its cash burn rate is prudent, as it seems like it might need more cash soon. On this analysis of Fission Uranium's cash burn, we think its cash burn reduction was reassuring, while its cash runway has us a bit worried. So, Should We Worry About Fission Uranium's Cash Burn? That's not insignificant, and if the company had to sell enough shares to fund another year's growth at the current share price, you'd likely witness fairly costly dilution. We can compare a company's cash burn to its market capitalisation to get a sense for how many new shares a company would have to issue to fund one year's operations.įission Uranium's cash burn of CA$16m is about 21% of its CA$78m market capitalisation. One of the main advantages held by publicly listed companies is that they can sell shares to investors to raise cash to fund growth. Issuing new shares, or taking on debt, are the most common ways for a listed company to raise more money for its business. Story continues How Hard Would It Be For Fission Uranium To Raise More Cash For Growth?Įven though it has reduced its cash burn recently, shareholders should still consider how easy it would be for Fission Uranium to raise more cash in the future. You can see how its cash balance has changed over time in the image below. 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 4 months from December 2019. Importantly, its cash burn was CA$16m over the trailing twelve months. In December 2019, Fission Uranium had CA$4.8m in cash, and was debt-free. ![]() You can calculate a company's cash runway by dividing the amount of cash it has by the rate at which it is spending that cash. Let's start with an examination of the business's cash, relative to its cash burn.Ĭheck out our latest analysis for Fission Uranium When Might Fission Uranium Run Out Of Money? ![]() 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. So, the natural question for Fission Uranium ( TSE:FCU) shareholders is whether they should be concerned by its rate of cash burn. But the harsh reality is that very many loss making companies burn through all their cash and go bankrupt. For example, although made losses for many years after listing, if you had bought and held the shares since 1999, you would have made a fortune. We can readily understand why investors are attracted to unprofitable companies. ![]()
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