Negative Equity & SolvencyNegative shareholders' equity signals solvency stress and a negative equity ratio constrains balance sheet flexibility. Over the medium term this limits borrowing capacity, raises default or restructuring risk, and increases the likelihood of dilutive equity raises or asset disposals.
Weak Cash GenerationPersistently negative operating and free cash flows force dependence on external funding to sustain exploration and development. This elevates dilution risk, slows project timelines, and pressures management to secure partners or reduce activity, impairing long-term value creation.
Persistent Profitability LossesOngoing negative net and EBIT margins show revenues are not converting to sustainable profits, suggesting structural cost or scale issues. Without material margin improvement or higher‑grade outputs, the company will struggle to self‑fund projects and reach production viability.