Persistent Negative Cash FlowConsistent negative operating and free cash flow represents structural cash burn requiring ongoing external funding or asset sales. For a small explorer, this increases dilution risk, can delay project milestones, and constrains long‑term execution unless cash generation turns sustainably positive.
Large Net Loss / Negative ProfitabilityA very large net loss and deeply negative margins indicate the business is far from self-sustaining. Persistent unprofitability erodes equity, pressures management to raise capital, and limits reinvestment capacity into value‑creating exploration or development over the coming months.
Very Small, Volatile Revenue BaseA tiny, volatile revenue base (with past zero‑revenue periods) undermines forecasting and makes project economics unproven. This structural uncertainty hampers long‑term planning, investor confidence and the company’s ability to secure stable non‑dilutive financing or partnerships.