A company’s cash burn rate can be measured by taking a look at its free cash flow, and comparing that amount to the company’s current cash levels. If the company is losing a lot of money per every quarter of operations, its cash balance might not be enough to sustain its operations for the next 4, 2 or even 1 quarter, and it will need to turn to external funding. The companies on our list have high burn rates, in comparison to its cash balances, and low levels of revenue.
Largo Resources Ltd. (TSXV: LGO) – $0.75
Diversified Mining
Largo Resources Ltd. (Largo) is a Canada-based natural resource development and exploration company with vanadium and tungsten projects in Brazil and Canada. In Brazil, Largo holds a 99.84% interest in the Maracas Menchen Mine, which is located in the eastern Bahia State of Brazil; a 100% interest in the Currais Novos tungsten tailings project, which is located approximately 179 kilometers from Natal in the State of Rio Grande do Norte, Brazil and a 100% interest in the Campo Alegre de Lourdes iron-vanadium project, which is located approximately 875 kilometers north-northeast of Brasilia and approximately 650 kilometers northwest of Salvador and covers an area of approximately 9,275 hectares. In Canada, Largo holds a 100% interest in the Northern Dancer tungsten-molybdenum property located in the Yukon Territory.
- Market Cap: $152,447,028
- Total Revenue (LTM): $0
- Cash and Short Term Investments (LFQ): $3,607,000
- Free Cash Flow (LFQ): -$21,915,000
Ressources Pershimco Inc. (TSXV: PRO) – $0.20
Diversified Mining
Ressources Pershimco Inc. is a Canada-based junior mineral exploration company engaged in acquiring, exploring and developing resource properties in Canada and Latin America. The Company has its operations in Panama, Pershimco regions, which host projects including the Panama Canal and the Minera Panama copper-gold project located 150 kilometers (km) north of Cerro Quema.
- Market Cap: $50,090,147
- Total Revenue (LTM): $100,670
- Cash and Short Term Investments (LFQ): $1,129,210
- Free Cash Flow (LFQ): -$4,322,400
Dejour Energy Inc. (TSX: DEJ) – $0.16
Oil & Gas Exploration and Production
Dejour Energy Inc. (Dejour) is engaged in the business of acquiring, exploring and developing energy projects with a focus on oil and gas exploration in Canada and the United States. The Company holds approximately 113,000 net acres of oil and gas leases in the Peace River Arch of northwestern British Columbia and northeastern Alberta, Canada and the Piceance, Paradox and Uinta Basins in the United States Rocky Mountains.
- Market Cap: $29,074,065
- Total Revenue (LTM): $6,564,000
- Cash and Short Term Investments (LFQ): $362,000
- Free Cash Flow (LFQ): -$1,488,000
AZ Mining Inc. (TSX: AZ) – $0.40
Non-Gold Precious Metals & Minerals
AZ Mining Inc., formerly Wildcat Silver Corporation, is a Canada-based mineral exploration company focused on the development of its 80% owned Hermosa property located near Patagonia in southern Arizona. The Company’s drill program on Hermosa North West included five holes that showed high grade zinc, lead and silver intercepts.
- Market Cap: $60,079,263
- Total Revenue (LTM): $0
- Cash and Short Term Investments (LFQ): $92,227
- Free Cash Flow (LFQ): -$780,770
Clearford Water Systems Inc. (TSXV: CLI) – $0.49
Environmental Services & Equipment
Clearford Water Systems Inc., formerly Clearford Industries Inc., is a Canada-based provider of unified water management and sanitation systems. The Company’s proprietary technology, Clearford One sanitation system, is the basis of the full Clearford Water Systems offering. Clearford One enables installation and integration of all other water systems including stormwater management, fire suppression, and water distribution and redistribution. This technology makes it possible to provide a set of services including system design, installation, financing and operation.
- Market Cap: $38,177,631
- Total Revenue (LTM): $1,012,900
- Cash and Short Term Investments (LFQ): $468,920
- Free Cash Flow (LFQ): -$1,054,830
