Persistent Negative Cash FlowSustained negative operating and free cash flow indicate the business burns cash to fund operations and exploration. Over 2-6 months this reduces financial flexibility, increases reliance on external funding, raises dilution risk from equity raises, and can slow or halt project development if capital access tightens.
Very Small, Volatile Revenue BaseTiny, inconsistent revenue undermines ability to cover fixed costs and prevents reliable forecasting of cash needs. The recent sharp collapse shows prior revenue gains were not durable, making project financing, partnerships, and long-term operating planning more difficult for management and reducing predictability of returns.
Recurring Large Losses And Negative ROEPersistent net losses erode shareholder equity and produce negative ROE, shrinking internal funding capacity and forcing dependence on external capital. Over time this dilutes existing holders, constrains strategic options, and can limit the company's ability to retain talent or fund higher-cost exploration necessary to reach resource milestones.