Persistent UnprofitabilityNegative net profit and EBIT margins and a negative ROE indicate the company is not generating operating returns on equity. Over months this necessitates continued external funding or dilution, limits reinvestment capacity, and increases investor dependency on asset-sale or production milestones to create durable value.
Weak Operating Cash ConversionA negative operating cash flow to net income ratio shows earnings are not converting to cash, signaling cash quality issues. This structural weakness raises liquidity risk for funding drills and studies, increases likelihood of financings, and can constrain progress toward development outcomes over the medium term.
Exploration/development Stage RiskAs an explorer/developer the business faces long lead times, resource definition and permitting risk, and capital intensity before production. These structural execution and funding risks mean value realization depends on successful technical outcomes or transactions, a durable constraint on returns until resolved.