Pre-revenue Business ModelEV1 remains pre‑revenue, so the Chilalo project's commercial economics are unproven and value depends on future development and successful commercialization. Until stable revenue or binding offtake is secured, the company faces durable execution, permitting and commodity‑price risks that can delay value realization.
Persistent Negative Cash FlowOperating and free cash flow remain structurally negative, implying ongoing reliance on external capital to fund operations and development. This persistent cash deficit increases financing and dilution risk, and could force project timeline changes if market access to capital tightens.
Erosion Of Shareholder EquityShareholder equity has declined substantially over several years due to cumulative losses and cash burn. Lower equity reduces the balance-sheet buffer against setbacks, heightens vulnerability to adverse funding conditions, and signals a history of capital strain that may recur if cash generation remains weak.