Negative Profitability MarginsSustained negative gross and net margins, plus a negative EBIT margin, show operations currently lose money after production and overhead. This undermines self-sufficiency, pressures reinvestment capacity, and requires either cost improvement or higher realized commodity prices to reach durable profitability.
Deteriorating Free Cash FlowA clear downward trend in free cash flow and weaker operating cash conversion reduces ability to fund exploration, development, or debt repayment internally. Over several months this heightens reliance on external financing and may force project delays or dilutive capital raises.
Negative Return On EquityNegative ROE indicates the company is destroying shareholder capital rather than earning returns. Persisting negative ROE signals ineffective capital allocation or underperforming assets, impairing investor confidence and making it harder to attract non-dilutive funding over the medium term.