No Revenue BaseAbsence of operating revenue over multiple years is a fundamental weakness: the company cannot self-fund exploration from operations, must rely on external capital to sustain activity, and lacks a recurring cash generation mechanism to absorb shocks or fund development phases.
Persistent Cash BurnConsistent negative operating and free cash flow indicates structural cash consumption. This creates ongoing funding needs, increases dilution risk from equity raises, and limits the company's ability to scale or advance multiple projects without securing partner funding or asset sales.
Eroded Equity CushionA sharply reduced equity base materially weakens the balance sheet cushion. It elevates solvency and continuity risk, makes future financings more dilutive or difficult, and reduces flexibility to absorb adverse exploration results or to underwrite larger drilling campaigns without partner commitments.