RTG Mining (TSE:RTG) Is In A Good Position To Deliver On Growth Plans

Just because a business does not make any money, does not mean that the stock will go down. For example, although Amazon.com made losses for many years after listing, if you had bought and held the shares since 1999, you would have made a fortune. Having said that, unprofitable companies are risky because they could potentially burn through all their cash and become distressed.

So should RTG Mining (TSE:RTG) 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’. The first step is to compare its cash burn with its cash reserves, to give us its ‘cash runway’.

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Does RTG Mining Have A Long Cash Runway?

A company’s cash runway is calculated by dividing its cash hoard by its cash burn. In June 2025, RTG Mining had US$11m in cash, and was debt-free. Looking at the last year, the company burnt through US$3.7m. That means it had a cash runway of about 3.0 years as of June 2025. Arguably, that’s a prudent and sensible length of runway to have. The image below shows how its cash balance has been changing over the last few years.

See our latest analysis for RTG Mining

How Is RTG Mining’s Cash Burn Changing Over Time?

Because RTG Mining isn’t currently generating revenue, we consider it an early-stage business. So while we can’t look to sales to understand growth, we can look at how the cash burn is changing to understand how expenditure is trending over time. Even though it doesn’t get us excited, the 25% reduction in cash burn year on year does suggest the company can continue operating for quite some time. Admittedly, we’re a bit cautious of RTG Mining due to its lack of significant operating revenues. We prefer most of the stocks on this list of stocks that analysts expect to grow.

How Hard Would It Be For RTG Mining To Raise More Cash For Growth?

While RTG Mining is showing a solid reduction in its cash burn, it’s still worth considering how easily it could raise more cash, even just to fuel faster growth. Issuing new shares, or taking on debt, are the most common ways for a listed company to raise more money for its business. One of the main advantages held by publicly listed companies is that they can sell shares to investors to raise cash and fund growth. 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.

Since it has a market capitalisation of US$49m, RTG Mining’s US$3.7m in cash burn equates to about 7.5% of its 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.

So, Should We Worry About RTG Mining’s Cash Burn?

It may already be apparent to you that we’re relatively comfortable with the way RTG Mining is burning through its cash. For example, we think its cash runway suggests that the company is on a good path. Its cash burn reduction wasn’t quite as good, but was still rather encouraging! Looking at all the measures in this article, together, we’re not worried about its rate of cash burn; the company seems well on top of its medium-term spending needs. Taking a deeper dive, we’ve spotted 4 warning signs for RTG Mining you should be aware of, and 3 of them shouldn’t be ignored.

Of course RTG Mining 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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.