Negative Profitability And MarginsPersistent negative gross profit and net losses mean core operations fail to cover direct costs and overheads. Without margin improvement or higher-grade discoveries, continued losses will erode capital, force dilutive financing, and constrain investment in resource development over the medium term.
High LeverageA debt-to-equity ratio around 10.8 signals heavy reliance on borrowings, increasing refinancing and covenant risk. High leverage reduces financial flexibility to pursue exploration or development, raises interest/service burdens, and magnifies exposure to commodity price and funding-cycle shocks.
Very Small Team / Limited Internal CapacityA very small workforce suggests dependence on contractors and limited internal capability to execute complex development programs. This raises execution risk for advancing projects, can delay milestones, and increases the likelihood of additional equity issuance or partnerships to fill capability and capital gaps.