Persistent Operating Cash BurnSustained negative operating cash flow signals the company cannot self-fund activities and will need external capital repeatedly. For explorers, this creates structural dependence on markets, risks program disruption if funding tightens, and increases long-term dilution risk for shareholders.
Minimal Revenue And Sustained LossesThe company remains effectively pre-revenue with large recurring losses, meaning no operating margin or cash generation to sustain growth. Over the medium term this weakens the firm's ability to self-finance exploration and heightens reliance on capital raises or corporate transactions to continue operations.
Shrinking Equity / Asset BaseA marked decline in equity over several years reflects accumulated losses and erodes the balance sheet buffer. This diminishes financial flexibility, limits borrowing capacity despite low debt, and makes future equity raises more dilutive, representing a persistent headwind to restoring shareholder value.