Persistent Negative Operating And Free Cash FlowConsistent annual cash burn means KNB must rely on external funding to sustain exploration. This structural cashflow weakness limits the pace of project advancement, increases financing risk, and can dilute shareholders or constrain strategic options until cash generation reverses.
Sustained Net Losses And Negative MarginsOngoing operating losses and negative margins indicate the business has not yet reached a sustainable earnings base. Over the medium term this pressures retained earnings, limits reinvestment from operations and increases reliance on equity or partner funding to progress assets.
Negative ROE Despite Equity GrowthEven though equity has increased, a negative ROE shows deployed capital isn't creating shareholder value. This structural shortfall highlights capital allocation risk and suggests future equity raises could be dilutive if operational performance doesn't improve.