Pre-revenue Business ModelBeing pre-revenue means the firm has no operating cash inflows from product sales, so project economics remain unproven at scale. This structural stage requires continued capital support to reach production and increases execution risk tied to permitting, construction and eventual commercial uptake.
Persistent Negative Operating And Free Cash FlowRepeated negative OCF and FCF imply ongoing reliance on external funding to cover operations and development. Over months this erodes equity, forces recurring capital raises, and can delay project milestones if markets tighten, creating a durable funding and execution risk for a development-stage miner.
Eroding Equity And Historical Capital StressDeclining equity over multiple years and prior episodes of negative equity highlight a structural erosion of the balance-sheet buffer. Continued losses reduce financial resilience, increasing the probability of future dilutive raises and constraining the company's capacity to absorb cost overruns or slower project timelines.