Persistent Losses And Weak MarginsLongstanding negative margins and net losses erode equity and undermine internal capital generation. Over 2–6 months this limits reinvestment into exploration or development, increases dependency on external financing, and elevates dilution risk—structural constraints that can hinder progress toward economically viable projects.
Negative Operating Cash FlowSustained negative operating and free cash flow reduce runway for capital-intensive activities like drilling and feasibility studies. This structural cash deficit forces repeated external funding, creates execution risk for multi‑stage projects, and can delay resource definition or development milestones critical over the next several months.
Negative Return On EquityA negative ROE signals poor capital efficiency and difficulty turning invested capital into returns. This persistent structural weakness impairs the company’s ability to attract patient capital, increases the cost of new financing, and constrains long‑term value creation, hampering development progress without operational turnaround.