Persistent Operating LossesConsistent operating losses mean the business is not yet generating internally sustainable profits. Continued negative earnings will erode equity if financed by dilution or drawdown, hinder reinvestment capacity, and increase reliance on external capital to progress the Salamanca project over many months.
Negative Free Cash FlowOngoing negative free cash flow indicates operations do not self-fund development activities. Persistent FCF deficits raise the probability of future capital raises, dilution, or restricted investment into permitting and construction, complicating long-term project execution and strategic optionality.
Small, Volatile Revenue BaseLow and inconsistent revenues reflect a pre-production profile without diversified cash-generating operations. This limited top-line scale makes margins vulnerable to fixed costs, extends time to profitability, and increases the project's execution risk because commercial revenue streams are not yet established.