Persistent UnprofitabilitySustained negative margins indicate the company is not currently converting production or sales into profitable operations. Persistent losses erode equity, limit reinvestment, and make it harder to attract non-dilutive capital, challenging long-term operational sustainability.
Revenue Collapse And InstabilityA dramatic drop in revenue underscores an unstable sales base and weak commercial execution. Low and volatile top-line makes fixed-cost absorption difficult, delays scale economies for mining/processing assets, and lengthens the path to consistent cash generation.
Material Cash BurnLarge negative operating and free cash flows require recurring external funding or asset sales to sustain operations. Ongoing cash burn constrains capital allocation for development, increases financing risk, and can force dilutive equity raises or distressed asset disposals.