Very Small, Declining RevenueA steep, recent ~50% revenue drop and generally tiny top-line constrain the company’s ability to self-fund exploration or sustain operating overheads. Over the medium term this lack of operating scale raises dependency on external capital and limits resilience to negative project outcomes.
Repeated Operating Cash BurnConsistent negative operating cash flows (≈-A$3.1m in FY2025) mean losses translate into real cash outflows. That persistent cash burn creates structural funding needs, increasing dilution or financing risk and reducing runway absent material partner funding or asset disposal.
Erosion Of Equity And Thin Capital BaseEquity erosion from ~A$4.6m to ~A$1.4m weakens the firm’s capital buffer against losses and reduces credibility with counterparties. A shrunken capital base limits the ability to absorb setbacks or fund step‑out exploration without material dilution or urgent financing.