Pre‑Revenue StatusBeing pre-revenue is a structural constraint: no operating income means the firm cannot self-fund development, relies on external capital, and faces milestone risk. Until production or a commercial transaction, profitability and cash flow remain speculative and financing risk persists.
Persistent Negative Cash GenerationConsistent negative operating and free cash flow implies continued dependence on capital markets. This structural cash burn elevates dilution and execution risk, potentially delaying studies or permitting if new funding is constrained or expensive over the medium term.
Material Equity ErosionSignificant decline in shareholder equity signals capital consumption from losses and write-downs. This weaker equity base reduces financial buffers, limits leverage capacity, and increases vulnerability to funding shocks, making it harder to underwrite the prolonged development cycle of a mining project.