Sustained Net LossesMaterial and persistent net losses erode equity and signal the business is not yet generating operating profits. Over months this forces repeated external financings or dilution, constrains strategic choices, and reduces ability to self-fund exploration or move projects toward development.
Minimal, Volatile Revenue BaseRevenue remains tiny and inconsistent, providing no reliable operating leverage or internal funding source. For an exploration company, lack of steady revenue means long lead times to monetize assets and heightened reliance on capital markets to sustain programs and progress projects.
Weak Cash Generation Requiring FundingConsistently negative OCF and free cash flow demonstrate the company cannot self-finance exploration. This structural cash burn increases financing frequency risk, potential dilution, and vulnerability to tighter market conditions, affecting long-term shareholder value.