Pre-revenue With Persistent Operating LossesNexGen remains pre-revenue and records recurring operating losses, reflecting that project economics are unproven at scale. Until production commences, profitability is unattainable and the company cannot self-fund operations, a structural constraint on long-term sustainability.
Heavy Negative Free Cash Flow And Ongoing Cash BurnDeep, persistent negative free cash flow reflects substantial project capex and exploration spend. This structural cash burn necessitates project financing or further capital raises, creating dilution risk and dependency on external capital until sustained positive cash generation is achieved.
Rising Leverage And Negative Returns On EquityMaterial increase in leverage alongside a return to negative ROE signals growing financial risk as development progresses. Higher debt raises fixed obligations and may constrain flexibility for additional financing or increase cost of capital during critical construction and commissioning stages.