High Leverage And Negative EquitySignificant leverage and persistent negative equity create structural solvency and refinancing risks. High interest and principal obligations reduce financial flexibility, constrain capital allocation, and amplify downside in prolonged commodity downturns, limiting strategic options.
Declining And Inconsistent RevenueMaterial year‑over‑year revenue decline signals weaker sales volumes or realizations. Sustained or recurrent revenue volatility undermines scale economics, impairs fixed‑cost absorption in mining, and makes multi‑period planning for capex, staffing, and debt servicing harder.
Negative Operating And Net MarginsPersistently negative EBIT and net margins show the company struggles to convert gross profit to operating profitability after royalties, overhead and financing. Structural cost issues and inefficiencies erode retained earnings and limit ability to deleverage or invest for growth.