Persistent Operating Cash BurnSustained negative operating cash flow over multiple years is a structural weakness for an exploration company. It forces repeated external funding, dilutes shareholders, and limits the ability to fund larger drilling campaigns or development without financing. This long‑running burn constrains strategic optionality.
Erosion Of Equity And AssetsMaterial decline in equity and assets over several years signals persistent value destruction. This weakens borrowing capacity, reduces collateral for project financing, and makes the company more vulnerable to dilution or asset sales. It's a lasting structural concern for financing future exploration or development.
Minimal Revenue And Deep LossesVery small revenue and large recurring losses indicate the business model has not yet produced sustainable commercial returns. For resource explorers, this means long lead times to validate projects and chronic reliance on capital markets; profitability and revenue diversification remain distant, structural risks.