Persistent Negative Operating And Free Cash FlowChronic negative operating and free cash flow forces ongoing external funding, raising dilution and refinancing risk. Over months this constrains discretionary exploration spending, forces prioritization of projects, and can delay value-creating drilling or development activities until funding is secured.
Deep And Persistent LossesSustained negative EBIT and net losses erode shareholder value and limit internal capital generation. Even with narrowed losses, persistent unprofitability reduces strategic flexibility, makes raising non-dilutive capital harder, and keeps the company reliant on external backers for multi-month project plans.
Small, Volatile Revenue BaseA small, volatile revenue base undermines margin leveraging and predictability of cash flow. For a resource explorer this limits ability to scale operations, increases sensitivity to single-project outcomes, and makes multi-month planning and investment decisions more uncertain for management and potential partners.