Persistent Operating LossesSustained negative EBIT/EBITDA indicates the core business is not generating operating returns, eroding shareholder value over time. Without a credible path to profitable operations, the firm will struggle to self-fund growth, impairing reinvestment capacity and increasing reliance on external financing.
Chronic Negative Cash FlowRecurring negative operating and free cash flows are a structural concern: they force reliance on equity raises or asset disposals to sustain activity. Over 2–6 months this limits strategic options, increases dilution risk, and constrains investment in exploration or projects that could restore profitability.
Minimal, Volatile Revenue (dropped To Zero)An almost nonexistent and inconsistent revenue base undermines operating leverage and forecasting. With revenues volatile or absent, achieving scale or positive margins is unlikely without material business change, making near-term recovery of profitability and sustainable cash generation uncertain.