Persistent Negative Cash FlowSustained negative operating and free cash flow depletes cash reserves and increases dependence on external capital. Over a multi-month horizon this constrains discretionary exploration activity, limits ability to fast-track promising targets, and raises dilution or financing risk if project milestones do not generate partner funding or asset-sale proceeds.
Minimal/Absent Revenue BaseAbsence of recurring revenue means the business relies on capital markets, royalties, or asset transactions rather than operating cash flow. This reduces visibility into sustainable earnings and makes long-term planning contingent on exploration success or future monetization events, increasing structural execution risk.
Low Returns On Equity / ProfitabilityNegative ROE indicates the company is not generating positive returns from its equity base, eroding capital efficiency. If poor returns persist, investor willingness to provide incremental funding may decline or become more expensive, limiting scale-up potential and making it harder to self-fund project development over the medium term.