We can readily understand why investors are attracted to unprofitable companies. For the purposes of this article, cash burn is the annual rate at which a company spends cash to fund its growth; its negative free cash flow. In June 2023, Kairos Minerals had AU$4.1m in cash, and was debt-free. This kind of short runway puts us on edge, as it indicates the company must reduce its cash burn significantly, or else raise cash imminently.