Persistent UnprofitabilityOngoing negative earnings and margins indicate structural cost or grade challenges that impair cash retention and reinvestment. Without durable margin recovery, profitability deficits will continue to erode reserves and limit the company’s ability to self-fund projects or withstand lower commodity prices.
Negative Free Cash FlowSustained negative free cash flow constrains the company's capacity to fund sustaining and development capex internally. Over time this can force additional debt, asset sales, or equity raises, increasing financing cost, diluting shareholders or elevating leverage during downturns.
Eroding Equity And Asset BaseA trend of shrinking equity and asset base weakens balance-sheet resilience, reducing borrowing headroom and increasing financial vulnerability. This erosion makes it harder to absorb commodity shocks, finance growth internally, or secure favorable lending terms over the medium term.