Persistent Unprofitable MarginsNegative gross and operating margins indicate the business currently cannot convert sales into sustainable profits, implying structural cost, grade or pricing pressure. Without margin improvement, revenue growth alone will not produce durable earnings or internal financing capacity.
Negative Operating And Free Cash FlowConsistently negative operating and free cash flows undermine liquidity and force reliance on external funding. This constrains reinvestment in the mine or processing plant, increases refinancing risk, and weakens the company's ability to fund downturns or ramp production without new capital.
Rising Leverage And Negative ROEIncreasing debt levels and negative ROE signal elevated financial risk and equity erosion. Higher leverage raises interest burdens and reduces strategic flexibility, making the company more vulnerable to commodity or operational shocks while impairing its ability to finance growth internally.