Q: is generation mining heading towards 0
5i Research Answer:
GENM is a $46M market cap company, down 66% this year. It has no revenue, losses and negative cash flow. Cash flow was negative $12.5M in the nine months to Sept 30 (negative $22M in 2022). It is certainly going to need more capital, but it had $6M cash as of September 30, and raised $15M at the end of October. It likely can survive, but may continually dilute shareholders. Unfortunately, the amount of money needed does not change with the share price, so its low share price results in more dilution in order to raise a set amount of money. We would consider it very risky and not attractive.