Minimal RevenueWith virtually no revenue, the business lacks an operating income engine to fund exploration or cover fixed costs. Over the medium term this forces persistent reliance on financing, which can dilute shareholders or be constrained in tighter markets, undermining long-term viability without a clear revenue pathway.
Persistent Cash BurnConsistent negative operating and free cash flow means the company is not self-funding and must access external capital repeatedly. This structural cash burn raises execution risk, can limit ability to advance projects if funding is delayed, and increases dependence on capital markets' appetite.
Eroding Equity & Negative ROEDeclining shareholders' equity and sustained negative ROE show value erosion from persistent losses. Over time this weakens the balance sheet cushion, can limit strategic options (M&A, funding terms), and signals that past investments have yet to produce returns, heightening long-term investor risk.