In Fall 2015, Fission Uranium became embroiled in a dispute with a small group of dissident shareholders over an attempted merger with Denison Mines Corp. In January, 2015, Fission Uranium announced a major resource estimate in the indicated and inferred categories which, at that time, was the largest undeveloped resource in the Athabasca Basin region. was spun out of Fission Energy b after a deal was made with Denison Mines Corp to acquire all assets except PLS. Ross McElroy joined Fission Energy and led the company's technical team to its first major discovery: the J Zone at Waterbury Lake in Saskatchewan's Athabasca Basin.Ī second discovery, at PLS in the Athabasca Basin, was made in November 2012. Under his leadership, Strathmore Minerals spun out Fission Energy Corp in 2008, and time Randhawa left Strathmore to run Fission Energy. History įission's history can be traced directly to Strathmore Minerals Corp., a firm founded in 1996 by Dev Randhawa. Its sole project is the Patterson Lake South (PLS) Project located in Canada's Athabasca Basin District. It is engaged in the exploration and development of uranium assets. Thank you for reading.Fission Uranium Corp. 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. 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. 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. You can click here to see what Fission Uranium's CEO gets paid each year. 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. 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'.
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