Persistent LossesOngoing negative net profit, EBIT and EBITDA margins and a negative ROE indicate the company is not yet delivering shareholder returns. Persistent losses erode equity value, necessitate external funding, and make long-term viability dependent on successful discovery or partner-funded development.
Negative Operating Cash FlowNegative operating cash flow forces reliance on financing or asset sales to fund exploration. This structural cash shortfall increases dilution risk, can constrain drilling programs, and limits the firm's ability to progress resource definition without external capital or farm-out agreements.
No Producing Assets / No Recurring RevenueAs an exploration-stage company with no producing assets, future cash generation is binary and dependent on discovery or partner deals. The lack of recurring revenue creates sustained execution and financing risk over months, making outcomes highly contingent on exploration success.