Pre-revenue With Widening LossesBeing pre‑commercial with rapidly widening losses signals limited internal cash generation and persistent execution risk. Over several quarters this drives greater dependence on external financing, increases dilution risk for shareholders and raises the hurdle for sustainable progression to production.
Negative Equity And New LeverageNegative equity reduces the balance sheet buffer against shocks while new debt materially increases refinancing and covenant risk. This structural weakening constrains strategic flexibility, may raise funding costs and limits the company’s ability to self‑finance project advancement over the medium term.
Large, Persistent Cash BurnSteady, large negative operating cash flow creates an enduring funding gap that must be closed via equity or debt. Persistent cash burn increases dilution or leverage over time, shortens runway absent new capital and elevates execution risk for multi‑year exploration and development programs.