Persistent Negative Cash FlowsConsistent negative operating and free cash flow means the business requires ongoing external funding to continue exploration and development. Over the medium term this raises dilution risk, constrains ability to fund capital-intensive work, and forces prioritization of projects over time.
Ongoing LossesSustained operating losses and negative net margins limit retained capital accumulation and indicate the company has not yet achieved profitable operations. This weakens long-term earnings sustainability, makes partnership or offtake negotiations harder, and increases reliance on external capital.
Negative Returns On EquityConsistently negative ROE shows capital deployed has not generated shareholder returns, reducing capital efficiency. Over months this hampers the firm's ability to attract cheaper funding, increases the likelihood of dilutive raises, and constrains capacity to pursue or finance larger development stages.