Persistent Cash BurnConsistent negative operating and free cash flow erode cash reserves and force recurrent equity or debt raises. For a junior explorer, ongoing cash burn raises dilution risk, constrains continuous drilling/permitting programs, and increases dependence on external capital over the medium term.
No Meaningful Revenue; Ongoing LossesThe absence of recurring revenue and sustained net losses mean the business is not yet self-sustaining. This structural profitability gap increases funding needs, limits reinvestment capacity, and elevates execution and financing risk while projects are advanced toward development.
Historical Balance Sheet VolatilityPrior swings to high leverage (debt-to-equity ~2.9x in 2024) reveal capital-structure instability. Such historical volatility can impair access to financing during stress, increase refinancing risk and cost, and signals potential governance or funding pressure issues for long-term project execution.