Pre-revenue StatusNo commercial revenue means value depends entirely on exploration success and project development execution. This structural reality creates high execution and market-risk exposure, limits self-funding ability, and makes progress contingent on achieving resource milestones and successful commercialisation.
Persistent Negative Operating And Free Cash FlowOngoing cash burn requires repeated external financing to sustain operations and development. Over the medium term this raises dilution risk, can constrain project timing, and leaves the company vulnerable if capital markets tighten or investor appetite for exploration assets wanes.
Eroding Equity And Negative Returns On EquityNegative ROE and falling equity reflect losses absorbing shareholder capital, weakening the balance sheet buffer over time. This structural erosion limits borrowing capacity, reduces financial flexibility for larger development stages, and heightens the need for accretive capital raises.