Minimal Revenue BaseWith virtually no recurring revenue, the company lacks a proven commercial business or diversified cash inflows. Long-term sustainability depends on successful resource development or discovery; absent that, the firm remains exposed to project risk and must rely on financing events rather than operating cash flow.
Persistent Negative Cash FlowConsistent negative operating and free cash flow denotes structural cash burn and inability to self-fund activities. This forces recurring reliance on external capital, increasing dilution risk, constraining investment pacing, and making long-term project funding contingent on capital markets rather than internal cash generation.
Declining Equity And Negative ROEMeaningful declines in shareholders' equity and persistently negative ROE reflect cumulative losses and value erosion. A shrinking equity base weakens the balance-sheet buffer, reduces creditworthiness, and complicates future fundraising without significant dilution, undermining long-term capital structure resilience.