Persistent Cash BurnSustained negative operating and free cash flow means the business cannot self-fund exploration and studies. Over a multi-month horizon this forces reliance on external capital or asset sales, risks delaying project timelines, and increases the chances of dilutive financings that impact long-term shareholder returns.
Consistent Operating LossesRepeated operating losses and minimal/erratic revenue indicate an unproven, non-scalable earnings model. Without a clear path to stable revenue or profitable operations, the company’s ability to progress from exploration to development is structurally weakened, making returns contingent on uncertain resource events.
Dependence On External FundingA funding model built on periodic equity raises exposes the company to dilution and market-timing risk. Over the medium term this can limit investor alignment, reduce available capital if markets tighten, and constrain the pace of technical work or permitting unless offset by a JV or non-dilutive financing.