WEBULL

We Think Stillwater Critical Minerals (CVE:PGE) Needs To Drive Business Growth Carefully

Simply Wall St · 1d ago

Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the right price. Indeed, Stillwater Critical Minerals (CVE:PGE) stock is up 278% in the last year, providing strong gains for shareholders. Nonetheless, only a fool would ignore the risk that a loss making company burns through its cash too quickly.

In light of its strong share price run, we think now is a good time to investigate how risky Stillwater Critical Minerals' cash burn is. In this report, we will consider the company's annual negative free cash flow, henceforth referring to it as the 'cash burn'. Let's start with an examination of the business' cash, relative to its cash burn.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Does Stillwater Critical Minerals 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 current cash burn rate. In September 2025, Stillwater Critical Minerals had CA$3.9m in cash, and was debt-free. In the last year, its cash burn was CA$6.2m. So it had a cash runway of approximately 8 months from September 2025. That's quite a short cash runway, indicating the company must either reduce its annual cash burn or replenish its cash. Depicted below, you can see how its cash holdings have changed over time.

debt-equity-history-analysis
TSXV:PGE Debt to Equity History December 13th 2025

Check out our latest analysis for Stillwater Critical Minerals

How Is Stillwater Critical Minerals' Cash Burn Changing Over Time?

Because Stillwater Critical Minerals isn't currently generating revenue, we consider it an early-stage business. Nonetheless, we can still examine its cash burn trajectory as part of our assessment of its cash burn situation. With the cash burn rate up 27% in the last year, it seems that the company is ratcheting up investment in the business over time. That's not necessarily a bad thing, but investors should be mindful of the fact that will shorten the cash runway. Stillwater Critical Minerals makes us a little nervous due to its lack of substantial operating revenue. So we'd generally prefer stocks from this list of stocks that have analysts forecasting growth.

How Hard Would It Be For Stillwater Critical Minerals To Raise More Cash For Growth?

Given its cash burn trajectory, Stillwater Critical Minerals shareholders should already be thinking about how easy it might be for it to raise further cash in the future. Issuing new shares, or taking on debt, are the most common ways for a listed company to raise more money for its business. Many companies end up issuing new shares to fund future growth. 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).

Stillwater Critical Minerals has a market capitalisation of CA$130m and burnt through CA$6.2m last year, which is 4.8% of the company's market value. That's a low proportion, so we figure the company would be able to raise more cash to fund growth, with a little dilution, or even to simply borrow some money.

How Risky Is Stillwater Critical Minerals' Cash Burn Situation?

On this analysis of Stillwater Critical Minerals' cash burn, we think its cash burn relative to its market cap was reassuring, while its cash runway has us a bit worried. We don't think its cash burn is particularly problematic, but after considering the range of factors in this article, we do think shareholders should be monitoring how it changes over time. Separately, we looked at different risks affecting the company and spotted 5 warning signs for Stillwater Critical Minerals (of which 2 are a bit concerning!) you should know about.

Of course Stillwater Critical Minerals may not be the best stock to buy. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.