Sustained Operating LossesRecurring operating and net losses of around A$2.6M constrain the company’s ability to self-fund growth and erode returns. Persistent losses increase reliance on external capital, raise dilution risk for shareholders, and limit reinvestment into exploration or development absent a clear path to profitability.
Negative Operating And Free Cash FlowNegative operating and free cash flow indicate the business is consuming cash to run exploration programs. Continued negative cash generation forces ongoing fundraising, increases financing risk, and can divert management attention to liquidity management rather than project execution and value creation.
Rising LeverageDebt rising to about A$3.3M and a debt-to-equity ratio near 0.68 raises financial risk for a loss-making explorer. Higher leverage constrains flexibility to fund exploration, increases interest or covenant exposure, and heightens refinancing risk if cash generation does not turn positive within months.