Severe Revenue Collapse And Large Net LossA dramatic decline in scale and a deep net loss indicate structural disruption to operations or feed volumes. Loss of scale undermines fixed-cost coverage, reduces bargaining power with suppliers/customers, and increases the difficulty of returning to prior profitability without material operational or commercial changes.
Persistent Negative And Volatile Free Cash FlowRepeated negative free cash flow constrains self-funding for maintenance and growth capex, forcing reliance on external finance. Over months this limits strategic optionality, increases refinancing risk and can delay necessary capital investments that preserve recoveries and margins.
Eroding Equity Reducing Financial FlexibilityShrinking equity from consecutive losses lowers the company’s capital buffer and narrows borrowing headroom. Structurally this raises the cost and difficulty of raising debt or equity, increasing vulnerability to prolonged low commodity prices or operational setbacks over the coming months.