Persistent Net Losses And Negative MarginsSustained net losses and negative gross/EBIT margins indicate the core mining operations are not covering costs at current scales or grades. Without lasting margin improvement, the company cannot internally fund growth or capital needs, impairing long-term operational viability.
Negative Operating And Free Cash FlowNegative operating and free cash flow point to structural cash-generation shortfalls from core operations. This creates reliance on external financing to sustain activity, raising dilution and refinancing risk, and constraining the company's ability to invest in mine optimization or exploration.
Elevated Leverage And Declining EquityHigh debt-to-equity and falling shareholders' equity increase financial risk: interest burdens, covenant pressure and reduced capacity to fund capex. In a capital-intensive mining business, elevated leverage limits strategic flexibility and heightens refinancing risk in weaker cycles.