Revenue Decline & Negative MarginsA sustained revenue drop and negative gross and net margins indicate the core exploration activities are not generating positive operating returns. Persisting negative margins limit reinvestment, heighten reliance on external capital, and challenge long-term viability if discoveries do not materialize.
Weak Operating Cash GenerationNegative operating cash conversion shows operations do not produce cash to cover losses. For an exploration company this raises structural funding risk: ongoing drilling and permitting require cash, so inability to self-fund increases dilution risk and constrains multi-stage project advancement.
Negative Returns On EquityNegative ROE signals that capital invested into the business is not producing shareholder value. Over months, continued negative ROE can erode investor confidence, impair ability to attract non-dilutive partners, and make it harder to secure favorable financing for turning exploration results into producing assets.