Negative Free Cash FlowPersistent negative free cash flow limits the company’s ability to self-fund development and exploration projects. Over the medium term this can force reliance on equity issuance or higher-cost debt, diluting returns or increasing leverage, and constrains strategic flexibility during downturns.
Material Gross Margin CompressionA sharp drop in gross margin signals lasting cost pressures or lower realizations on ore. If persistent, margin compression erodes project returns, increases breakeven metrics for new developments, and requires sustained operational improvements or higher commodity prices to restore previous profitability levels.
Exploration-Heavy, Cyclical Business ModelConcentration on exploration and development exposes the company to commodity cycles, long lead times and high capital intensity. Project conversion and permitting risks are structural; sustained success depends on discovery economics, partnering, and access to capital across multi-year cycles.