Persistent Negative Operating And Free Cash FlowConsistent negative operating and free cash flow signals ongoing cash burn that cannot be covered by operations. Over time this forces reliance on external capital, increases dilution risk, and constrains the ability to execute multi-stage exploration programs without securing new financing or partners.
Structural UnprofitabilityA persistent net loss profile (-16% in 2025) shows costs well ahead of revenue scale. Without a clear path to sustained profitability or monetization of assets, continued losses will erode equity cushions and make long-term project advancement contingent on successful funding or asset disposals.
Reliance On External Funding And Asset DealsAs an exploration-stage company, Desert Metals depends structurally on equity raises, farm-ins, or divestments to fund operations. This exposes the business to capital-market cycles and partner appetite; failure to secure deals can delay programs, increase dilution, or force asset write-downs.