Persistent Heavy LossesDeep and persistent net losses indicate the business is not yet economically viable and will continue to erode capital unless a material shift occurs. Over the medium term this dynamic increases financing needs, constrains reinvestment in exploration, and raises the probability of equity dilution or asset sales.
Consistent Negative Operating Cash FlowOngoing negative operating cash flow shows operations do not generate internal funding, forcing reliance on external capital. This structural cash deficit increases funding risk, can delay project milestones, and makes the company vulnerable to capital-market conditions when raises are required across the next several quarters.
Eroding Shareholder EquityA materially reduced equity base signals capital erosion from losses and lowers the buffer against adverse shocks. This weaker capitalization limits borrowing capacity, reduces strategic flexibility, and raises the likelihood that future financing will be more dilutive or costly, affecting long-term project funding options.