Weak Cash GenerationOperating cash flow declined sharply and free cash flow turned negative in 2024, with OCF covering only around half of net income. Persistent weak cash conversion increases execution and funding risk when advancing projects, potentially necessitating dilutive equity or costly external financing for development.
Short Earnings Track RecordThe firm's profitable performance is recent; prior years showed no revenue and losses. Short operating history in exploration makes future earnings durability uncertain, heightens volatility around discoveries, and complicates long-term planning and investor confidence across commodity cycles.
Negative Growth TrendsReported multi-year metrics show negative revenue and EPS growth, signaling underlying top-line or margin pressures beyond single-year effects. Persistent declines reduce internal cash accumulation, increase reliance on external capital for advancement, and narrow the margin for error on project setbacks.