Persistent Cash BurnConsistent negative operating and free cash flow means the company cannot self-fund its programs and must rely on external capital. Over months this elevates dilution risk, diverts management to financing activity, and constrains the scale and timing of exploration programs essential for value creation.
Recurring Operating LossesSustained operating and net losses indicate the business has not converted exploration work into profitable operations. Over time this undercuts shareholder returns, limits reinvestment capacity, and increases dependency on capital markets, making long-term project delivery more uncertain.
Eroding Equity And Negative ROEDeclining equity coupled with negative ROE reflects accumulated losses and possible dilution, weakening the company’s capital base. Structurally this reduces financial flexibility for multi-stage exploration campaigns and increases the likelihood of future equity raises that dilute existing holders.