Sustained LossesPersistent, sizable losses and deeply negative margins erode equity over time and constrain the firm’s ability to self‑finance exploration or development. Enduring unprofitability increases reliance on external capital, risks dilution, and limits management’s strategic options over the medium term.
Weak Cash GenerationConsistent negative operating and free cash flows indicate structural cash burn, forcing dependence on external financing or asset sales to sustain operations. This weak cash generation raises execution risk for multi‑year exploration programs and increases likelihood of future dilution.
Small, Volatile RevenueA very small, highly volatile revenue base undermines scale economics and margin sustainability, making results contingent on intermittent exploration outcomes. Over the medium term this limits ability to build predictable operating cash flow and increases funding and execution risk.