Consistent Negative Free Cash FlowPersistently negative free cash flow erodes reserves and forces reliance on external financing. For an exploration-stage firm, ongoing cash consumption increases dilution risk from frequent capital raisings, constrains ability to self-fund larger drilling campaigns, and weakens multi-year funding predictability.
Widening Net LossesMaterially wider net losses and deeply negative margins reduce shareholder returns and hinder reinvestment capacity. Continuing operating deficits lower return-on-equity prospects and increase dependency on capital markets or partners, making long-term project advancement contingent on external funding.
Small, Volatile Revenue BaseA tiny, inconsistent revenue stream undermines predictability of cash generation and makes fixed exploration overheads harder to cover. This structural volatility forces management to prioritize financing or asset sales over organic growth, increasing execution risk for multi-stage resource development.