Persistent Negative Operating Cash FlowConsistently negative operating cash flow erodes cash reserves and forces repeated external financing to sustain operations. Over 2-6 months this undermines runway, increases funding risk, and can delay development milestones or force dilutive capital raises that hurt long-term shareholder value.
Firmly Loss-making With Weak ProfitabilitySustained net losses and lack of operating leverage mean the capital base is not generating returns. Even with revenue appearing in 2025, scale is insufficient to cover fixed costs, implying prolonged unprofitability unless revenues scale or costs structurally decline.
Funding Dependence And Capital Erosion RiskOngoing reliance on external capital increases dilution and execution risk. If exploration results or market conditions delay monetization, the equity cushion may be eroded by operating outflows, raising the cost of capital and jeopardizing timely project advancement.